Airbus Annual Report2022

Airbus SE is a European public company(Societas Europaea), with its seat in Amsterdam,
the Netherlands, which is listed in France, Germany
and Spain.
As a result of the relabelling to a single Airbus brand,
Airbus SE together with its subsidiaries is referred to as“the Company” and no longer the Group. The segment
formerly known as “Airbus Commercial Aircraft” is referred toas “Airbus”. See “– Management’s Discussion and Analysisof Financial Condition and Results of Operations– 2.1.1.2 Reportable Business Segments”.

statements, except as may be otherwise requiredby law. The forward-looking statements in this Universal
Registration Document involve known and unknown risks,
uncertainties and other factors that could cause theCompany’s actual future results, performance andachievements to differ materially from those forecasted orsuggested herein.
These include changes in general economic and businessconditions, as well as the factors described under “Risk
Factors” below.

This Universal Registration Document was prepared inaccordance with Annex 1 and 2 of Commission DelegatedIn addition to historical information, this Universal Registration
Regulation (EU) 2019/980 and has been filed in English with
Document includes forward-looking statements. The forwardthe Autoriteit Financiële Markten (the “AFM”) on 4 April 2023
looking statements are generally identified by the use of
in its capacity as competent authority under Regulation (EU)forward-looking words, such as “anticipate”, “believe”,
2017/1129 (the “Prospectus Regulation”) without prior“estimate”, “expect”, “intend”, “plan”, “project”, “predict”, “will”,
approval pursuant to Article 9 of the Prospectus Regulation.
“should”, “may” or other variations of such terms, or by
discussion of strategy. These statements relate to theThis Universal Registration Document may be used for
Company’s future prospects, developments and businessthe purposes of an offer to the public of securities or
strategies and are based on analyses or forecasts of futureadmission of securities to trading on a regulated market if
results and estimates of amounts not yet determinable.
approved by the AFM together with any amendments,
These forward-looking statements represent the view ofif applicable, and a securities note and summary approved
the Company only as of the dates they are made, and thein accordance with the Prospectus Regulation.
Company disclaims any obligation to update forward-looking

2

Airbus / Universal Registration Document 2022

Risk Factors

01
Information on the Company’s Activities

02
Management’s Discussion and Analysis of Financial
Condition and Results of Operations

03
General Description of the Company and its Share Capital

04
Corporate Governance05
General Information

Airbus / Universal Registration Document 2022

3

Contents

Universal
Registration
Document

Risk Factors
1.
2.
3.
4.

7

Financial Market Risks
8
Business-Related Risks12
Legal Risks
20
Environment, Human Rights, Health & Safety Risks 23

01

4

Airbus / Universal Registration Document 2022

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
35
44
50
57
58
58

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

61
61
68
86
88
90
92
93
95
97
102
107
109
111
115
118
126
128
137
138
144
148

1.3

Other Corporate Activities

149

1.4

Recent Developments

157

02
Management’s Discussion and Analysis ofFinancial Condition and Results of Operations
2.1
2.1.1
2.1.2

159

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

195
195
195
197

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

199
199
199
199
199

2.1.6

Operating and Financial Review
160
Overview
161
Significant Accounting Considerations,
Policies and Estimates164
Performance Measures
165
Results of Operations
169
Changes in Total Equity(Including Non-Controlling Interests)
173
Liquidity and Capital Resources
174

2.2

Financial Statements

178

04

2.3

Statutory Auditor Fees

178

Corporate Governance

203

2.4

Information Regarding the Statutory Auditors

178

4.1
4.1.1
4.1.2

204
204

2.1.3
2.1.4
2.1.5

03

4.1.3
4.1.4

General Description of the Company
and its Share Capital181
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
182
Commercial and Corporate Names,
Seat and Registered Office182
Legal Form
182
Governing Laws and Disclosures
182
Date of Incorporation and Duration of the Company
183
Objects of the Company
184
Commercial and Companies Registry
184
Inspection of Corporate Documents
184
Financial Year
184
Allocation and Distribution of Income
184
General Meetings
185
Disclosure of Holdings
186
Mandatory Disposal
187
Mandatory Offers
188

3.2.5

General Description of the Share Capital
189
Issued Share Capital
189
Authorised Share Capital
189
Modification of Share Capital or Rights Attachedto the Shares189
Securities Granting Access to the Company’s
Share Capital
190
Changes in the Issued Share Capital
190

3.3
3.3.1
3.3.2
3.3.3

Shareholdings and Voting Rights
Shareholding Structure at the End of 2022
Relationships with Principal Shareholders
Form of Shares

3.2.4

191
191
192
195

4.2

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

228
229
231

4.2.3

Interests of Directors and Principal
Executive Officers232
Remuneration Policy
232Long-Term Incentives Granted to the Chief
Executive Officer
247
Related Party Transactions
247

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

248
248
248
249

05
General Information

255

5.1

Entity Responsible for
the Universal Registration Document256

5.2

Statement of the Entity Responsible for
the Universal Registration Document

256

5.3

Information Policy

256

5.4

Undertakings of the Company
Regarding Information

257

5.5

Significant Changes

257

5.6

Statement on Approval

257

Airbus / Universal Registration Document 2022

5

6

Airbus / Universal Registration Document 2022

Risk
Factors
1.
2.
3.
4.

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

Airbus / Universal Registration Document 2022

8
12
20
23

7

Risk Factors /1 Financial Market Risks

The Company is subject to the risks and uncertainties described below that may materially affectits business, results of operations and financial condition. These are not the only risks the Company
faces. Additional risks and uncertainties not presently known to the Company, or that it currently
considers immaterial may also impair its business and operations.
Although a certain degree of risk is inherent in the Company’s business (as described in therisk factors mentioned in this section), the Company endeavours to minimise risk to the extent
reasonably possible. To achieve its strategy, the Company is prepared to take modest or low event
risks to provide sufficient predictability on profitability and cash flow given the necessity to staycompetitive, invest in research and development and manage the diversified business portfolio
in a world of uncertain market and economic conditions. Due to the importance of programmes
and operations for the Company, a particular focus is put 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 ethical businessprinciples, while developing a culture of integrity. Regarding financial risks, our risk approach can bequalified as prudent and the Company aims to minimise the downside risk through an appropriate
liquidity buffer, moderate financial leverage and the use of hedging derivatives and other insurance
products.

1.

Financial Market Risks

Global Economic Conditions
The Company’s business, resultsof operations and financial condition
are materially affected by global
economic conditions.
Market disruptions and significant economic downturns may
develop quickly due to, among other things, crises affecting
credit or liquidity markets, regional or global recessions, sharp
fluctuations in 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, or adverse
geopolitical events (including armed conflicts such as Russia’s
invasion of Ukraine, rising tensions around the world, global
pandemic diseases such as COVID-19 or the impact of potentiallyconflicting policies from the United States (“US”), European
Union, Russia and China with ramifications beyond theirborders). Recent US administrations have introduced greater
uncertainty with respect to US tax and trade policies, tariffs andgovernment regulations affecting trade between the US andother countries. Such measures, and the countermeasures they
provoked, affected and may continue to affect countries where
our customers and suppliers are located or where the Company
has an operational presence or to which its financing activities
are linked. See “– Business-Related Risks – Ukraine Crisis”,

8

Airbus / Universal Registration Document 2022“– Business-Related Risks – COVID-19 Risks” and “– BusinessRelated Risks – Availability of Government and other Sourcesof 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, and spare parts
centres in Hamburg, Frankfurt, Washington, Beijing, Dubai andSingapore. At the end of 2022, the Company had engineering andtraining centres in Toulouse, Miami, Mexico, Wichita, Hamburg,
Bangalore, Beijing and Singapore. There are also hubs and field
service stations around the world. The Company also relies on
industrial co-operation and partnerships with major companies
and a wide network of suppliers. This global presence entails therisk of being affected by weak market and economic conditions
in particular in Europe, the US and Asia where it manufactures
and to which it sells the majority of its products.
It is a priority to ensure that the Company can identify, attract,develop and retain a world-class competent, motivated andflexible workforce, which fits current business requirements andfuture business needs in each of the countries in which theCompany has a presence. A change in economic conditionsin any of the geographies where the Company has significant
numbers of employees or key employees may therefore impact
its ability to compete effectively for employees in such countries.

Risk Factors /1 Financial Market Risks

At the end of 2022, approximately 18,000 suppliers from morethan 90 countries supply parts, components, systems andservices to the Company. In 2022, the Company’s overall externalsourcing volume was estimated around € 44 billion. The Company
requires its suppliers’ and subcontractors’ services in order todeliver our products and generate revenue and profit. Therefore
financial, economic and geopolitical instability in any part of
the world that would affect our suppliers or subcontractors,
including conditions resulting in sharply rising inflation, increasingenergy prices, their inability to obtain credit or even in theirinsolvency, could impact the Company’s ability to meet its
customer obligations in a satisfactory and timely manner. In
addition, financial, economic and geopolitical instability affecting
suppliers or subcontractors could impact such parties’ ability tomeet their obligations under risk sharing partnership agreements
entered into with the Company. The health and economic crisis
resulting from the COVID-19 pandemic and the consequencesof Russia’s invasion of Ukraine have increased the Company’s
exposure to supply chain risk. See “– Business-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 has been
and may continue to be materially affected by global economic
conditions. Historically, the Company has experienced that orderintake for commercial aircraft has shown cyclical trends, due
in part to changes in passenger demand for air travel and the
air cargo share of freight activity, which are in turn driven by arange of economic variables including gross domestic product(“GDP”) growth and private consumption levels.
A deterioration in economic factors driven by geopolitical events
such as Russia’s invasion of Ukraine or by new variants of the
COVID-19 pandemic and the related drop in air travel in many
parts of the world driving our commercial airline business, could
lead to protracted weak demand for our commercial aircraft.
The relative size of the Company’s commercial aircraft business
relative to its defence, space and government activities has
diluted the latter’s ability to serve as an effective tool to counter
commercial cycles.
Demand for military and parapublic products may be affected bygovernmental budget constraints caused by economic pressure.
Therefore protracted weak global economic conditions could
directly result in:–– financial distress of airlines and lessors, and potential
bankruptcies around the world;–– requests by customers to postpone or cancel existing orders
for aircraft (including helicopters) or decisions by customers toreview their order intake strategy due to, among other things,
lack of adequate credit supply from the market to financeaircraft purchases or increases in operating costs or weaklevels of passenger demand for air travel and cargo activity
more generally, which could negatively impact the Company’s
results of operations;–– variations in public spending for defence, homeland security
and space activities, which may lead to termination or reductionof future funding or cancellations or delays impacting existing
contracts which could negatively impact the Company’s
results of operations; and–– an increase in the amount of sales financing that the Company
is requested to provide to its customers to support mainly
aircraft deliveries typically secured over the underlying
aircraft and bearing exposure to the customer credit risk. See“– Financial Market Risks – Sales Financing Arrangements”.
In addition, in the commercial aircraft industry it is the industry
standard to include revision clauses in sales and suppliercontracts due to the lengthy terms of such contracts. Suchrevision clauses can be based on one or multiple indices andtherefore, can evolve due to changes in economic measureson which such indices are based, thereby potentially negatively
impacting the Company’s results.
The Company generally finances its manufacturing activities
and product development programmes, and in particular thedevelopment of new commercial aircraft, through a combinationof cash flows generated by operating activities, customer
advances, European governments’ refundable advances andrisk-sharing partnerships with subcontractors. In addition,
the Company’s military activities benefit from governmentfinanced research and development contracts. If necessary, theCompany may raise funds in the capital markets. Weak economic
circumstances, uncertainty or adverse trends leading to liquidity
constraints or reduced availability of finance for the Company’s
customers, suppliers, European and other governments, andother risk sharing partners may affect the Company’s ability tofinance its product development programmes and raise funds
in the capital markets.
The Company’s financial results could also be negatively affected
depending on gains or losses realised on the sale or exchangeof financial instruments; impairment charges resulting fromrevaluations of debt and equity securities and other investments;
interest rates; cash balances; and changes in fair value ofderivative instruments. Increased volatility in the financial markets
and overall economic uncertainty would increase the risk of theactual amounts realised in the future on the Company’s financial
instruments differing significantly from the fair values currently
assigned to them.
Although the potential negative impact of global economic
conditions has been thoroughly assessed, the consequences
thereof could have unforeseen material effects on the Company’sbusiness, results of operations and financial condition, and inparticular if these were to impact the Company’s commercial
aviation activities or otherwise impact its access to financing.

Airbus / Universal Registration Document 2022

9

Risk Factors /1 Financial Market Risks

Foreign Currency Exposure
In 2022, more than 70% of the Company’s revenues aredenominated in US dollars, with approximately 60% of suchcurrency exposure “naturally hedged” by US dollar-denominatedcosts. The remainder of costs are incurred primarily in euros andto a lesser extent, 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.
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 the foreign exchange risk, the Company may also havedifficulty in fully implementing its hedging strategy if its hedging
counterparties are unwilling to increase derivatives risk limits with
the Company, and is exposed to the risk of non-performanceor 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 the case in thepast and as higher capital requirements for banks result in higher
credit charges for uncollateralised derivatives. Accordingly, theCompany’s foreign currency hedging strategy may not protect itfrom significant changes in the exchange rate of the US dollar to
the euro and the pound sterling, in particular over the long-term,
which could have a negative effect on its financial condition andresults of operations.
Moreover, to further mitigate the impact of exchange rate
fluctuations on its profits, the Company might enter into aeuro conversion agreement with its customers to convert fullyor partially the payment from US dollar into euro based on anagreed conversion rate. This agreement is implemented on an
exceptional basis and at the specific request of the customer, andis 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 impact ofhedge rates of the US dollar hedge portfolio and euro conversion.
As of 31 December 2022, the blended portfolio which amounts
to US$ 93.9 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 to certain other pricerisks such as interest rate risks, changes in commodity prices
and in the price of its own stocks. Adverse movements of theseprices may jeopardise the Company’s profitability if not hedged.
Currency exchange rate fluctuations in currencies other than the
US dollar in which the Company incurs its principal manufacturing
expenses (mainly the euro) may affect the ability of the Company
to compete with competitors whose costs are incurred in othercurrencies. This is particularly true with respect to fluctuations
relative to the US dollar, as many of the Company’s products
and those of its competitors (e.g. in the defence export market)
are priced in US dollars. The Company’s ability to competewith competitors may be eroded to the extent that any of theCompany’s principal currencies appreciates in value against the
principal currencies of such competitors.
The Company’s consolidated revenues, costs, assets andliabilities denominated in currencies other than the euro aretranslated into the euro for the purposes of compiling its financial
statements. Changes in the value of these currencies relative
to the euro will, therefore, have an effect on the euro value of
the Company’s reported revenues, costs, EBIT(1), other financial
results, assets, liabilities and equity.

Sales Financing Arrangements
In support of sales, the Company may agree, case by case, toparticipate in the financing of selected customers. Over 2020
to 2022, the average number of aircraft delivered in respect ofwhich financing support has been provided by Airbus amounted
to approximately 1% of the number of deliveries over the same
period.
The risks arising from the Company’s sales financing activities
may be classified into two categories: (i) credit risk, which
relates to the customer’s ability to perform its obligations undera financing arrangement, and (ii) aircraft value risk, whichprimarily relates to unexpected decreases in the future value ofaircraft. Defaults by its customers or significant decreases in thevalue of the financed aircraft in the resale market may materiallyadversely affect the Company’s business, results of operations
and financial condition.

The Company’s sales financing arrangements expose it toresidual aircraft value risk, because it generally retains security
interests in aircraft for the purpose of securing customers’
performance of their financial obligations to the Company, and/or because it may guarantee a portion of the value of certain
aircraft at certain anniversaries from the date of their delivery
to customers. Under adverse market conditions, the market
for used aircraft could become illiquid and the market valueof used aircraft could significantly decrease below projectedamounts. In the event of a financing customer default at a time
when the market value for a used aircraft has unexpectedly
decreased, the Company would be exposed to the difference
between the outstanding loan amount and the market valueof the aircraft, net of ancillary costs (such as maintenance andremarketing costs, etc.). Similarly, if an unexpected decrease in
the market value of a given aircraft coincided with the exercise(1) Airbus continues to use the term EBIT. EBIT is identical to profit before financial result and income taxes.

10

Airbus / Universal Registration Document 2022

Risk Factors /1 Financial Market Risks

window date of an asset value guarantee with respect to thataircraft, the Company would be exposed to losing as much as
the difference between the market value of such aircraft and theguaranteed amount, though such amounts are usually capped.
Through the Airbus Asset Management department or as aresult of past financing transactions, the Company is the ownerof used aircraft, exposing it directly to fluctuations in the market
value of these used aircraft.

In addition, the Company has backstop commitments to provide
financing related to orders on the Company’s and ATR’s backlog.
The Company’s sales financing exposure could rise in line with
future sales growth depending on the agreement reached withcustomers. The Company remains exposed to the risk of defaults
by its customers or significant decreases in the value of thefinanced aircraft in the resale market, which may have a negative
effect on its future financial condition and results of operations.

Liquidity
The Company is exposed to liquidity risk in case of funding needs
during a market disruption situation. If the liquidity risk would
materialise, the Company could be at risk of not being able topay its creditors and shareholders in due time or could have todelay the closing of some transactions. The liquidity risk canarise when money markets and debt capital markets are closed
for new issuances for a period of time. In order to mitigate thisrisk, the Company maintains:–– significant amounts of highly liquid cash on-balance sheet;–– undrawn committed credit facilities;–– diversified euro funding programmes (such as a € 12 billion
euro medium-term note (“EMTN”) programme eligible to the
Corporate Sector Purchase Programme of the European
Central Bank (“ECB”), a € 11 billion Negotiable European
Commercial Paper programme eligible to the Pandemic
Emergency Purchase Programme of the ECB, and a € 4 billion
euro Commercial Paper programme); and–– access to US dollar funding (through a US$ 3 billion US
Commercial Paper programme, and a 144A US dollar bondmarket).
On 5 July 2022, the Company signed a new sustainabilitylinked Revolving Syndicated Credit Facility (the “2022 facility”)
committed by 38 banks for € 8 billion with a maturity of five
years and two extension options of one year (subject to banks’approval). This facility incorporates an adjustment mechanismthat links the applicable margin of the facility (which can go either
up or down) to the achievement of annual targets for two selectedsustainability key performance indicators related to environmental
rating and health & safety. The 2022 facility cancels and replacesthe € 6 billion Revolving Syndicated Credit Facility signed in 2020.
Going forward, the Company will continue to adopt a prudent
approach when it comes to managing its liquidity with theobjective of maintaining its robust credit rating.

Counterparty Credit
In addition to the credit risk relating to sales financing as
discussed above, the Company is exposed to credit risk to theextent of non-performance by its counterparties for financial
instruments, such as hedging instruments (US$ 76.2 billion
nominal value at 31 December 2022) and cash investments(€ 22.06 billion nominal value at 31 December 2022). However,
the Company has policies in place to avoid concentrations ofcredit risk and to ensure that credit risk exposure is limited.
Counterparties for transactions in cash, cash equivalents andsecurities as well as for derivative transactions are limited tohighly-rated financial institutions, corporates or sovereigns.

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

As of 31 December 2022 the credit exposure had been estimated as follows (in € million)(1):
Source of risk

Exposure

Unexpected Loss Contribution

Banks

4,991

34

Corporates

4,816

104

Sovereign issuers

1,583

15

Money market funds

12,21017

Total

23,600170(1) Not audited.

The Company also seeks to maintain a certain level ofdiversification in its portfolio between individual counterparties aswell as between financial institutions, corporates and sovereignsin order to avoid an increased concentration of credit risk on only
a few counterparties.

Airbus / Universal Registration Document 2022

11

Risk Factors /2 Business-Related Risks

However, there can be no assurance that the Company will not
lose the benefit of certain derivatives or cash investments incase of a systemic market disruption. In such circumstances, thevalue and liquidity of these financial instruments could decline
and result in a significant impairment, which may in turn have anegative effect on the Company’s financial condition and resultsof operations.
Moreover, the progressive implementation of new financial
regulations and adjustments to existing regulations will havean impact on the business model of banks (for example, thesplit 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, andtherefore on the funding consequences of 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 of 31 December 2022, the provision for
retirement plans and similar obligations amounted to € 3.5 billion(compared to € 7.1 billion as of 31 December 2021). In addition
as a consequence of the increased discount rates a non-current
asset of € 0.6 billion has been accounted for to reflect the surplus
in two pension funds in the UK. For information related to theseplans, please refer to the “Notes to the IFRS Consolidated
Financial Statements – Note 32: 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.

2.

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,and (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
and to better match the characteristics of the pension liabilities
with those of the pension assets as a long-term objective.
Nevertheless, any required additional provisions would have anegative effect on the Company’s total equity (net of deferredtax), which could in turn have a negative effect on its futurefinancial condition.

Business-Related Risks

Commercial Aircraft and Helicopter Market Factors
Historically, the Company has experienced that order intake
for commercial aircraft has shown cyclical trends, due inpart to changes in passenger demand for air travel and the
air cargo share of freight activity, which are in turn driven by
a range of economic variables, such as GDP growth, private
consumption levels or working age population size. Other factors,
however, play an important role in determining the market forcommercial aircraft, such as (i) the average age and technicalobsolescence of the fleet relative to new aircraft; (ii) the number
and characteristics of aircraft taken out of service and parked
pending potential return into service; (iii) passenger and freightload factors; (iv) airline pricing policies and resultant yields;(v) airline financial health; (vi) the availability of third party financing
for aircraft purchases; (vii) evolution of fuel price; (viii) 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 or thegrowth of low-cost passenger airline business models or the

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Airbus / Universal Registration Document 2022

impact of e-commerce on air cargo volumes or consolidationof airlines. The health and economic crisis resulting from the
COVID-19 pandemic, armed conflicts such as Russia’s invasionof Ukraine, and rising tensions around the world can amplify the
impact of these factors.
The factors described above may have a material impact on thecommercial aircraft industry and, therefore, on the Company’s
financial condition and results of operations. In 2022, thecommercial aircraft business segment of Airbus recorded total
revenues of € 41.4 billion – representing 69% of the Company’s
revenues. See “– Information on the Company’s Activities– 1.1.1 Overview”. During the COVID-19 pandemic, the Company
observed that the downturn in its commercial aircraft business
was partially mitigated by its defence, space and government
activities. Such a cyclical pattern had already been observed in
the past but historically diminished, due to the significant growthof the Company’s commercial aircraft business relative to its
other activities, until the global pandemic arrived.

Risk Factors /2 Business-Related Risks

The commercial helicopter market in which the Company
operates has shown cyclical trends and could also be influenced
by factors listed above. The civil & parapublic market has shown
signs of recovery in 2022, notably in the intermediate single
engine and medium twin helicopter segment and the private& business aviation and aerial work market. The offshore oil& gas market shows signs of recovery with increased flight
hours however the level of investment in the acquisition of new
platforms has not significantly increased. Flight hours have
now exceeded pre-pandemic levels and Airbus Helicopters
has increased revenues thanks to the wide-ranging portfolioof service solutions.

COVID-19 Risks
Over the last three years, new variants of the COVID-19 pandemic,
the resulting health and economic crisis and actions taken in
response to the spread of the pandemic, including government
measures, lockdowns, travel limitations and restrictions, haveresulted in significant disruption to the Company’s business,
operations and supply chain.
The aerospace industry, the financial health of operators, airlines,
lessors and suppliers, commercial aircraft market, demand for air
travel and commercial air traffic have been severely impacted by
the COVID-19 pandemic and the resulting health and economiccrisis. As a result, airlines reduced capacity, grounded portionsof their fleets and sought to implement measures to reduce
cash spending and secure liquidity. Some airlines also sought
arrangements with creditors, restructuring or applying forbankruptcy or insolvency protection, which may have further
consequences for the Company and its order book as well asother consequences resulting from the related proceedings. The
Company will continue to face additional risks and uncertainties
resulting from future consequences of the health and economiccrisis on operators, airlines, lessors, suppliers and other actors
in the air transport industry. See also “– Business-related risks– Commercial Aircraft and Helicopter Market Factors” below.
Notably in 2020 and 2021, a number of measures were takenby the Company to implement stringent health and safety
procedures while taking account of stock levels and production
lead-times. The COVID-19 crisis may lead to further disruptions
to the Company’s internal operations and to its ability to deliverproducts and services. See also “– Business-related risks –Dependence on Key Suppliers and Subcontractors” below.
In addition to its impact on the financial viability of operators,
airlines and lessors and the reduction of commercial air traffic,
lockdowns, travel limitations and restrictions around the world
have posed logistical challenges and may continue to cause
disruptions to the Company’s business, its operations and supply
chain. These measures have and may continue to adversely

affect the Company’s ability to deliver products and services aswell as customers’ ability to take delivery of aircraft.
The Company has been adversely affected by weak market andeconomic conditions in markets around the world. Protracted
weaker market and economic conditions and their knock-on
effects have resulted in and could continue to result in (i) additionalrequests by customers to postpone delivery or cancel existingorders for aircraft (including helicopters) or other products
including services, (ii) decisions by customers to review theirfleet strategy, (iii) weak levels of passenger demand for air travel
and cargo activity more generally, (iv) a sustained reduction in
the volume of air travel for business purposes, and (v) prolonged
or additional travel limitations and restrictions, which could
negatively impact the Company’s results of operations.
In 2022, the Company delivered 661 commercial aircraft, an
increase of 8% compared to 2021 (compared to 611 commercial
aircraft in 2021). This excludes two deliveries recorded in
December 2021 (two A350-900 Aeroflot) for which a transfer
was not possible due to international sanctions. In 2022, theCompany recorded 258 commercial aircraft cancellations(compared to 264 cancellations in 2021).
The Company continues to monitor the evolution of the COVID-19
pandemic and will evaluate further impacts and additional
measures going forward while taking into account the latest
industry outlook.
The Company’s business, results of operations and financial
condition have been materially affected in prior years by the
COVID-19 pandemic, and the Company may continue to facesignificant risks and uncertainties related to certain regions
including China. There can be no assurance that the Company’sbusiness, results of operations and financial condition will not bematerially affected by other pandemics in the future.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 3: Macroeconomic Environment”.

Ukraine Crisis
Russia’s invasion of Ukraine on 24 February 2022 and the resulting
export control restrictions and international sanctions against
Russia, Belarus and certain Russian entities and individuals haveresulted in disruption to the Company’s business, its operations,data management and supply chain.
Following the imposition of export control restrictions andsanctions by the EU, the UK, the US and other countries that are
relevant to the Company’s business, the Company announced

in March 2022 it has suspended the delivery of aircraft andsupport services to Russian customers, as well as the supply of
spare parts, equipment and software to Russia. The Company
is complying with all applicable regulations and sanctions to its
facilities and operations in Russia (including the Airbus Russia
affiliate, Airbus Engineering Centre (ECAR), representation officein Moscow and the Space Division’s two joint ventures in Russia,
Energia Satellite Technologies and Synertech). See “– Legalrisks – Export Control Laws and Regulations” below.

Airbus / Universal Registration Document 2022

13

Risk Factors /2 Business-Related Risks

The crisis has increased the Company’s exposure to supply
chain disruption risk. Part of the titanium used by the Company
is sourced from Russia, both directly and indirectly through theCompany’s suppliers. While geopolitical risks are integrated
into the Company’s titanium sourcing policies, the impact ofRussia’s invasion of Ukraine on the Company’s ability to source
materials and components and any future expansion of sanctions
is being reviewed.
The Company is also indirectly exposed through its partnership
into the joint venture ArianeGroup. Arianespace paid andreceived payments for the Soyuz programme for which
Roscosmos decided to suspend the rocket launches operated
by Arianespace. Agreements have been reached on prepayments received with two of these clients. Negotiations arewell advanced with the remaining customers.

Due to the above mentioned export control restrictions andsanctions, the Company has been unable to deliver two aircraft
previously recorded as sold at 31 December 2021. As a result,the associated revenues and margin have been derecognised
as of 31 March 2022. These aircraft have been remarketed in
the second quarter 2022.
As of 31 December 2022, the resulting recorded EBIT charge
amounts to approximately € 0.1 billion, mainly relating to Airbus.
Although the full impact cannot reasonably be assessed at
the time of this report, the Company’s business, results ofoperations and financial condition may be materially affectedby the direct and indirect impacts of Russia’s invasion of Ukraine
and the resulting export control restrictions and internationalsanctions. See also “– Business-related risks – Dependence
on Key Suppliers and Subcontractors” and “– Business-relatedrisks – Industrial System Adaptation” below.

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

and digitalisation. Moreover, a main challenge is to maintain an
appropriate level of security of complex and legacy industrial
systems to face attacks from hackers, who are improving theirtechniques and skills rapidly.
Finally, the Company is exposed to reputational damage anddestabilisation from the growing volume of false and malicious
information injected into media and social networks.
The Company continues to make significant efforts to prevent
such risks from materialising. Targeted investments will reduce
but not eradicate likelihood and impact through strengthening
the business cyber 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, Terrorism, Pandemics and Other Catastrophic Events
Terrorist attacks, public health crises and the spread of disease(such as the global COVID-19 pandemic), armed conflict andrising military tensions have demonstrated that such events may
negatively affect public perception of air travel, which may in turn
reduce demand for travel and commercial aircraft. The outbreakof wars, riots or political unrest or uncertainties including thoseresulting in an acute increase of cost of living may also affectthe willingness of the public to travel by air. Furthermore, major
aircraft accidents may have a negative effect on the public’s orregulators’ perception of the safety of a given class of aircraft,a given airline, form of design or 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

14

Airbus / Universal Registration Document 2022

again with additional sudden or prolonged reduced demand for
air transport and be compelled to take additional costly security
and safety measures. The Company may, therefore, suffer froma decline in demand for all or certain types of its aircraft or otherproducts, and the Company’s customers may postpone delivery
or cancel orders.
In addition to affecting demand for its products, catastrophic
events could disrupt the Company’s internal operations, supply
chain or its ability to deliver products and services. Disruptions
may be related to threats to infrastructure, personnel security
and physical security and may arise from terrorism, conflict andcivil unrests, malicious acts, natural disasters, fire, damaging
weather, and other types of incidents such as drone air trafficRisk Factors /2 Business-Related Risks

disruption. Effects of such events may be amplified if they
happen on single points of failure (SPOFs) for which dedicatedidentification and mitigations are monitored. Any resulting impact
on the Company’s production, services or information systems

could have a significant adverse effect on the Company’s
operations, financial condition and results of operations as wellas on its reputation and on its products and services.

Dependence on Key Suppliers and Subcontractors
The Company is dependent on numerous key suppliers andsubcontractors to provide it with the raw materials, parts,
assemblies, systems, equipment and services that it needs tomanufacture and deliver its products.
The Company relies upon the good performance and financial
health of its suppliers and subcontractors to meet the obligations
defined under their contracts. A supplier’s performance andhealth may be negatively impacted by a variety of topics
including: the COVID-19 pandemic and its resulting economic
impact; local quarantines; loss of skilled resources as a resultof workforce reduction and difficulties to re-staff due to market
employment tensions; need for working capital increase whilestate/bank loans obtained to weather the COVID-19 crisis havereached maturity in a context of inflation, high energy costs
and interest rate increases; difficulty gaining access to theneeded material and components, including semiconductors
and electronic components in the needed quantity and timeframe and at competitive conditions as well as transport andlogistic means availability; energy supply shortages including asa consequence of Russia’s invasion of Ukraine; cyber security
threats; geopolitical unrest; export controls evolving regulations,sanctions and embargoes; and environmental issues.

In the context described above, changes to the Company’s
production or development schedules may impact suppliersand customers so that they initiate claims under their respective
contracts for financial compensation or do not fulfil their on timeand on quality delivery commitments. This may have a negative
effect on the financial condition and results of operations of theCompany.
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 faces a challenging risk profile due to the adverse
geopolitical and economic environment, which increases
the risks concerning its ability to adapt its industrial system
and increase its production rates on the commercial aircraft
programmes as planned.
In May 2022, the Company confirmed that commercial aircraft
production for the A320 Family was progressing towards
a monthly rate of 65 aircraft by early 2024, in a complex
environment. Taking into account the fact that this complex
environment will persist longer than previously expected, theCompany announced in December 2022 that it will adjust the
speed of the A320 Family ramp-up to rate 65 for 2023 and 2024,
maintaining its objective to reach a monthly rate of 75 aircraftby the middle of the decade. In February 2023, the Company
announced it was progressing towards a monthly production
rate of 65 aircraft by the end of 2024 and 75 in 2026.
In February 2023, the Company announced that, in order tomeet growing demand for widebody aircraft as international air
travel recovers, and following a feasibility study with the supply
chain, it is now targeting a monthly production rate of 9 A350s
at the end of 2025.

While the Company is engaged in the process of adapting its
industrial set-up in order to reach its targeted production rates,
it will continue to monitor the ramp-up across the complete
value chain for all commercial aircraft programmes and seek
to adapt to the new complex environment. This encompasses
the full industrial process, including the supply chain (rawmaterial, subcontracted work packages, equipment, etc.) andthe Company’s resource adaptation (headcount, skills andcompetencies). In this process, the Company focuses attention
on quality industrial adherence Production Organisation Approval(POA). Acquiring the specific skills and competencies that theCompany needs to support the ramp-up remains a challenging
task for the human resource and management teams in thecurrent aviation hiring environment.
Taking into account the complex environment, the Company
cannot fully protect itself from production disruptions and delays,
which may have a negative effect on the financial condition andresults of operations of the Company.
For more details on specific programme risks, see “– Businessrelated risks – Programme-Specific Risks” below.

Airbus / Universal Registration Document 2022

15

Risk Factors /2 Business-Related Risks

Technologically Advanced Products and Services
The Company offers its customers products and services thatare technologically advanced, so the design, manufacturing,components and materials utilised can be complex and require
substantial integration and coordination along the supply chain.
In addition, most of the Company’s products must function underdemanding operating conditions. Throughout the lifecycle ofits products, the Company performs checks and inspections,which may result in modifications, retrofits or other corrective
actions, each of which may have an adverse effect on production,
operations, in-service performance or financial condition. Therecan be no assurance that the Company’s products or services
will be successfully developed, manufactured or operated orthat they will perform as intended.
Certain of the Company’s contracts require it (i) to forfeit part of its
expected profit, (ii) to receive reduced payments, (iii) to provide a
replacement launch or other products or services, (iv) to provide
cancellation rights, or (v) to reduce the price of subsequent sales
to the same customer if its products fail to be delivered on timeor to perform adequately. No assurances can be 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, in particular withrespect to programmes and developments such as the A220,
ACJ TwentyTwo, A321XLR, A330 LMXT, A350-1000 ULR, A350
Freighter, A400M, H160 or Ariane 6. See “– Business-relatedrisks – Programme-Specific Risks” below.
In addition to the risk of contract cancellations, the Company
may also incur significant costs or loss of revenues in connection
with remedial action required to correct any performance issues
detected in its products or services. Moreover, to the extent thata performance issue is considered to have a possible impact
on safety, regulators could suspend the authorisation for theaffected 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 geopoliticalconsiderations and budgetary priorities, and may therefore be
subject to significant fluctuations from year to year and country
to country. Any termination or reduction of future funding orcancellations or delays impacting existing contracts may have anegative effect on the Company’s financial condition and resultsof operations. In instances where several countries undertaketo enter together into defence or other procurement contracts,
economic, political or budgetary constraints in any one ofthese countries may have a negative effect on the ability of theCompany to enter into or perform such contracts.
The Company has a geographically diverse backlog. Adverse
economic and political conditions, as well as downturns in
broad economic trends in certain countries or regions, may
have a negative effect on the Company’s financial condition andresults of operations generated not only in those regions but
may also affect the rest of the world due to complex economic
interdependencies.

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

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

Competition and Market Access
The markets in which the Company operates are highly
competitive. With regard to the Company’s commercial aircraftbusiness for aircraft with more than 150 seats, the Company
today operates in a competitive duopoly. In China, however, an
indigenous large aircraft (single aisle) received its type certificate
in September 2022 from the Chinese authorities. The Company

16

Airbus / Universal Registration Document 2022

therefore also faces competition from a third player, in China
only, as this certification has not yet been recognised by anyother regulator. The design, development and production ofcommercial aircraft involves high barriers to entry (including
certification requirements, large investment needs, skilled
competencies and access to technology and long development

Risk Factors /2 Business-Related Risks

cycles). Although the two main market participants for aircraftwith more than 150 seats have secured significant orderbacklogs, the competition could grow its market presence orlaunch new products or services that could have a negative
impact on the Company’s revenues, future financial condition
and results of operations.
New players are operating or seeking to operate in the
Company’s existing markets, which may impact the structure
and profitability of these markets. In addition, enterprises withdifferent business models and alternative technologies could
substitute the Company’s services and some of its products orcomponent parts thereof. In some areas, competitors may havemore extensive or more specialised engineering, manufacturing,support and marketing capabilities. There can be no assurance
that the Company will be able to continue to operate in the longterm as the market leader or compete successfully against thesefuture competitors or that the competitive pressures it faces in all
business areas will not result in reduced revenues, market shareor profit. See “– Environment, Human Rights, Health & Safety
Risks – Climate-Related Risks” below. In addition, competitors
may develop the capability to manufacture products or provide

services similar to those of the Company. This would result inthese companies marketing their own products or services andcompeting directly with the Company for sales of these products
or services, all of which could significantly reduce the Company’s
revenues.
In addition, the contracts for many aerospace and defence
products are awarded, implicitly or explicitly, on the basis of homecountry preference or geopolitical considerations. Although theCompany is a multinational company which helps to broaden its
domestic market, it may remain at a competitive disadvantage
in certain countries, especially outside of Europe, relative to
local contractors for certain products. The strategic importanceand political sensitivity attached to the aerospace and defence
industries means that political considerations will play a role in the
choice of many products and services for the foreseeable future.
The contracts for many aerospace and defence products andservices are from time to time associated with offset obligations.
The Company may face difficulties to meet those obligations,to leverage the assets of the country and at the same time to
optimise its industrial base and supply chain.

Major Research and Development Programmes
The business environment in many of the Company’s principal
operating business segments is characterised by extensive
research and development costs requiring significant up-front
investments with a high level of complexity. For the year 2022,
research and development expenses were € 3.1 billion. For theyear 2021, research and development expenses were € 2.7 billion(compared to € 2.9 billion for 2020).
Due to the technologically advanced complex nature of the
products that the Company produces and the long period,
including ramp up time, it takes to produce them, the businessplans underlying such investments often contemplate a long
payback period before these investments are recouped, andassume a certain level of return over the course of this period inorder to justify the initial investment. There can be no assurance
that the commercial, technical and market assumptions
underlying such business plans will be met, and consequently,
the payback period or returns contemplated therein achieved.
Significant technological, skills and industrial challenges exist
to achieve the Company’s sustainability ambitions for the future
generations of aerospace. These ambitions require cross industry
and cross government collaboration to address the technologicalrisks that need to be overcome. See “– Environment, Human
Rights, Health & Safety Risks – Climate-Related Risks” below.
Successful development of new programmes also depends on
the Company’s ability to attract and retain engineers and otherprofessionals with the technical skills and experience required
to meet its specific needs. Demand for such engineers may
often exceed supply depending on the market, resulting in
intense competition for qualified professionals. The Company’s
attrition rate in 2022 was 5.0% overall (including subsidiaries)(compared to 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 technicalskills and experience required for its research and development
programmes. Failure to attract and retain such personnel oran increase in the Company’s employee turnover rate could
negatively affect the Company’s financial condition and resultsof operations more generally and particularly its ability tosuccessfully execute its research and development programmes.
There is a risk of additional repercussions from COVID-19’s
impact on skills and expertise. Significant effort has been
made to maintain key resources and cope with the increased
departure of skilled staff with improved knowledge management
and knowledge transfer schemes across the Company.
The COVID-19 crisis has impacted key company technologicaldevelopments and competencies, but despite this, the Company
continues seeking to further its development in sustainable
technologies. This commitment directs a significant proportionof the longer term technology research efforts for future products
and services and is based on solving complex problems
backed by exploring multiple technology pathways. Retaining
this ambitious programme is achieved with national researchfunding through frameworks such as CORAC, LUFO, ATI, CDTI
and Horizon Europe where the frameworks enable the Company
and the wider aviation ecosystem to mature and develop therequired key competencies and technologies.
No assurances can be given that the Company will achieve
the anticipated level of returns from these programmes andother development projects, which may negatively affect theCompany’s financial condition and results of operations andcompetitiveness.

Airbus / Universal Registration Document 2022

17

Risk Factors /2 Business-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 people, operations, technologies and products.
There can be no assurance that any of the businesses that
the Company intends to acquire or divest can be integrated or
carved out successfully, as timely as originally planned or thatthey will perform well and deliver the expected synergies or costsavings once integrated or separated. In addition, regulatory,administrative, opposition by stakeholders or social partners
or other contractual conditions can prevent transactions frombeing finalised. Each acquisition, divestment, joint venture andstrategic alliance is very specific in its nature, purpose, risk andopportunities. The Company identifies risks through a detailed
and systematic due diligence process and addresses the risks
identified through price mitigation and/or appropriate contractual
coverage, such as indemnification mechanisms, both being the
tailored-made results of complex negotiations with the sellers/
buyers and/or partners. The Company’s business, results ofoperations and financial condition may be materially affected if
these transactions will not be successfully completed or do not
produce the expected benefits.

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

The Company is party to PPP and private finance initiatives(“PFI”) contracts, for example the 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 life-time of the project.
There can be no assurance of the extent to which the Company
will efficiently and effectively (i) compete for future PFI or PPP
programmes, (ii) administer the services contemplated under
the contracts, (iii) finance the acquisition of the equipment andthe ongoing provision of services related thereto, or (iv) accessthe markets for the commercialisation of excess capacity. The
Company may also encounter unexpected political, budgetary,
regulatory or competitive risks over the long duration of PPP
and PFI programmes.

Programme-Specific Risks
In addition to the risk factors mentioned above, the Company
also faces the following programme-specific risks that could
have a material impact on the Company’s business, results ofoperations and financial condition.
The Company faces the following main challenges on its
commercial programmes:–– adapt to rate and stabilise operational performance postCOVID-19 while maintaining high safety and quality standards;–– monitor and support the supply chain with a specific focus onengine manufacturers, especially in terms of availability andmaturity of both production and in-service engines;–– accompany customers and facilitate deliveries to customers
including by remote delivery process;–– ensure a strong customer focus to support return to operations;and–– protect priority projects and deliver developments as per
revised plan in an environment of increased certification
scrutiny and greater complexity, including A321XLR, A220,
ACJ TwentyTwo, A350 Freighter, A350-1000 ULR, A330 LMXT
(KC-Y) and Digital (DDMS and Skywise).

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Airbus / Universal Registration Document 2022

A320 Family programme. In response to the COVID-19 market
environment, the commercial aircraft production rate for theA320 Family was reduced to 40 per month in June 2020. In 2021
and 2022, the Company announced demand for the A320 Familyleading to a gradual increase in production for the upcoming
years. The Company proactively and constantly monitors the
backlog, the internal and external supply chain, including
engines, so as to ensure readiness for further rate adaptationsin accordance with traffic evolution, to minimise inventory levels,and secure aircraft storage capacity. In connection with the A320
Family programme, the Company faces the following challenges:
ensure the A321XLR on-track development including A321XLR
certification topics with primary airworthiness authorities, adapt
and upgrade our industrial system and capability to meet thegrowing market demands and corresponding product mix within
the family. Market demand for A320 Family aircraft, production
and supply chain capabilities will evolve in the next few years
and the Company will closely monitor these evolutions including
a projected significant increase in A321 production. Attention
will remain high on the overall supply chain including engines’
ramp up availability and engine maturity in-service.

Risk Factors /2 Business-Related Risks

A400M programme. After the Company signed a contract
amendment to restructure the contract, risks remain on
development of technical capabilities (development effort aswell as possible commercial agreement associated costs inorder to reach Type Acceptance) and the associated costs, onaircraft operational reliability, on cost reductions and on securing
sufficient export orders in time as per the revised baseline.
For further information, please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 13: Revenue and
Gross Margin”.
A350 programme. In connection with the A350 programme,
the Company faces the following main challenges: securerevised delivery targets and further rate adaptation dependingon traffic evolution, monitor and support the supply chain
including lead-time items from corresponding suppliers, reduce
recurring costs to improve competitiveness within a widebody
market that starts to recover, and deliver on major programme
developments (A350 Freighter development, A350-1000 Ultra
Long Range certification baseline, A350 new paint scheme).
Attention will remain high towards the engine manufacturer’s
capacity to deliver on engines’ maturity and competitivenesstopics.
A330 programme. In response to the new COVID-19 market
environment, the commercial aircraft production rate for theA330 programme was adapted to two per month in June 2020.
Then, following new orders, the decision was taken in Q3 2021
to increase the production rate to almost three, which was doneat the end of 2022. In February 2023, the Company announced
it now targets to reach rate 4 in 2024. Decisions on further rate
adaptation will depend on traffic evolution. In connection with
the A330 programme, the main challenges the Company faces
are to secure product competitiveness in the widebody market
segment, and to monitor and support the supply chain. The
developments were delivered on track in recent years. Attention
will remain high towards the engine manufacturer’s capacity todeliver on engines’ maturity and competitiveness topics.
A220 programme. In connection with the A220 programme,
the main challenges the Company faces are to secure the A220
cost reduction trajectory with a strong focus on its Design to
Cost roadmap and recurring cost reduction, and to ensure an
A220 book to bill ratio above one to fill current open slots. As
a consequence of the COVID-19 pandemic, the commercial
aircraft production rates were adapted to rate five per month(in Mirabel and in Mobile) in 2020-2021 and have been aroundrate six since early 2022 with a monthly production target of rate
14 targeted for the middle of the decade. Attention will remainhigh on the overall supply chain including engine maturity andavailability in service.
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.
H175 programme. Positive market trend leading to a production
ramp up challenge.
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 discussions with a view to resolve thematter.
For further information, please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 13: Revenue and
Gross Margin”.
H160 programme. The main challenge for the H160 programmeis the industrial ramp-up phase.
Border security. In connection with border security projects,
the Company faces the following main challenges: meeting theschedule and cost objectives taking into account the complexityof the local infrastructures to be delivered and the integration ofcommercial-off-the-shelf products (radars, cameras and othersensors) interfaced into complex system networks; assuring
efficient project and staffing; managing the rollout including
subcontractors and customers. Negotiations on change
requests in this respect along with schedule re-alignments
remain ongoing. The Company continues to engage with its
customer to agree a way forward on this contract. The outcomeof these negotiations is presently unclear but could result insignificant further financial impacts.
Launchers. Following the failed first commercial flight of theVega C launcher on 20 December 2022 and in light of the few
years delay in the launch of Ariane 5’s successor, Ariane 6,
with its maiden flight scheduled at the time of publication of thisreport to take place by the end of 2023, the Company facesa challenge related to Europe’s lack of independent access tospace in the short term.

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19

Risk Factors /3 Legal Risks

3.

Legal Risks

Legal and Regulatory Proceedings
The Company is currently engaged in a number of active legal
and regulatory proceedings. For further information, pleaserefer to “Notes to the IFRS Consolidated Financial Statements –Note 39: Litigation and Claims”.
For the investigation by the UK Serious Fraud Office (“SFO”),
France’s Parquet National Financier (“PNF”), and the US
Departments of State (“DoS”) and Justice (“DoJ”), which is
described in “Anti-Corruption Laws and Regulations”, theCompany has reached an agreement with the authorities, which
was approved by the French and UK courts and US court andregulator on 31 January 2020. The agreement resulted in afine totalling € 3.6 billion plus costs to the French, UK, and US
authorities. The three-year deferral period expired on 30 January2023, after which time the charges would be dismissed, absent
extension by the authorities or agreement among the parties.
The Company awaits the formal determination by the authorities
that it has complied with the agreements’ terms throughout theperiod and to close the prosecutions in line with the procedural
requirements of each country. 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 receiptof the Constat de l’extinction de l’action publique. For further
information about the investigation and related securities
litigation, see immediately below and “– 1.1.7 Legal and Arbitration
Proceedings”.

The Company expects to continue to spend time and incur
expenses associated with its defence of legal and regulatory
proceedings, regardless of the outcome, and this may divert
the efforts and attention of management from normal business
operations. Although the Company is unable to predict theoutcome of these proceedings, it is possible that they will result in
the imposition of damages, fines or other remedies, which could
have a material effect on the Company’s business, results ofoperations and financial condition. An unfavourable ruling could
also negatively impact the Company’s stock price and reputation.
In addition, the Company is from time to time subject 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 othermatters, anti-bribery laws and regulations, export control laws
and regulations, securities law, trade law and competition law. An
adverse decision in any such matter could have a material effecton the Company’s business, results of operations 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 reputation and its ability to attract and retain
customers and investors, which could have a negative effecton its business, results of operations and financial condition.
See “– Information on the Company’s Activities – Non-Financial
Information – 1.2.14 Exemplify business integrity”.

Anti-Corruption Laws and Regulations
The Company is required to comply with applicable anti-bribery
laws and regulations in jurisdictions around the world where it
does business. To that end, an anti-corruption programme has
been put in place that seeks to ensure adequate identification,assessment, monitoring and mitigation of corruption risks.
Despite these efforts, ethical misconduct or non-compliance withapplicable laws and regulations by the Company, its employees
or any third party acting on its behalf could expose it to liabilityor have a negative impact on its business.
The Company may be subject to administrative, civil or criminal
liabilities including significant fines and penalties, as well as
suspension or debarment from government or non-government
contracts for some period of time. The Company may also
be required to modify its business practices and complianceprogramme and/or have a compliance monitor imposed on it.
Any one or more of the foregoing could have a significant adverse
effect on the Company’s reputation and its business, results ofoperations and financial condition.
In 2016, for example, the Company announced that it had
discovered misstatements and omissions in certain applications
for export credit financing for the Company’s customers, andhad engaged legal, investigative and forensic accounting
experts to conduct a review. Separately, the UK SFO announced
that it had opened a criminal investigation into allegations offraud, bribery and corruption in the civil aviation business of20

Airbus / Universal Registration Document 2022

the Company, relating to irregularities concerning third party
consultants. The Company was subsequently informed that
the French authorities, the PNF, had also opened a preliminary
investigation into the same subject and that the two authorities
would act in coordination going forward. The Company engaged
with the government of the US (DoS and DoJ) relating to conduct
forming part of the SFO/PNF investigation that could fall within
US jurisdiction. The Company also engaged with the governmentof the US concerning breaches of the International Traffic in
Arms Regulations (“ITAR”). On 31 January 2020, the French andUK courts and US court and regulator approved an agreement
reached by the Company with the authorities. Any breach of
the terms of the agreements by the Company could lead torescission by the authorities of the terms of the agreements
and reopening of the prosecutions. Prosecution could result in
the imposition of further monetary penalties or other sanctions
including additional tax liability and could have a material impact
on the Financial Statements, business and operations of theCompany. The agreements reached with authorities may leadto additional commercial litigation and arbitration against theCompany and tax liability in the future, which could have amaterial impact on the Financial Statements, business andoperations of the Company. For futher information, see “– 1.1.7
Legal and Arbitration Proceedings (Investigation by the UK SFO,
France’s PNF, US Departments of State and Justice and Related
Commercial Litigation)”.

Risk Factors /3 Legal Risks

Export Controls Laws and Regulations
The export market is a significant market for the Company.
In addition, many of the products the Company designs andmanufactures for military use are considered to be of national
strategic interest. Consequently, the export of such products
outside of the jurisdictions in which they are produced may be
restricted or subject to licensing and export control requirements,
notably by the UK, France, Germany and Spain, where theCompany carries out its principal activities relating to military
products and services as well as by other countries where
suppliers are based, including but not exclusively the US. Therecan be no assurance (i) that the export controls to which theCompany is subject will not become more restrictive, (ii) that new
generations of the Company’s products will not also be subject tosimilar or more stringent controls or (iii) that geopolitical factors orchanging 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 military export markets may have a significant
adverse effect on the Company’s business, results of operations
and financial condition.
Operating worldwide, the Company must comply with several,
sometimes competing sets of sanctions laws and regulations
implemented by transnational / national / regional authorities.

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

Dependence on Joint Ventures and Minority Holdings
The Company generates a proportion of its results through various
consortia, joint ventures and equity holdings. The Company
recognises its share in the results of its equity holdings in the
proportion of the stake held. In 2022, the Company’s total shareof result from these arrangements amounted to € 134 million(compared to € 40 million in 2021 and € 39 million in 2020). 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 10: Investments Accounted for under the
Equity Method” and “– Note 16: Share of Profit from Investments
Accounted for under the Equity Method and Other Income from
Investments”.
The formation of partnerships and alliances with other market
players is an integral strategy of the Company, and the proportionof sales generated from consortia, joint ventures and equity
holdings may rise in future years. This strategy may fromtime to time lead to changes in the organisational structure,or realignment in the control, of the Company’s existing joint
ventures.
The Company exercises varying and evolving degrees of control
in the consortia, joint ventures and equity holdings in which
it participates. While the Company seeks to participate onlyin ventures in which its interests are aligned with those of its
partners, the risk of disagreement or deadlock is inherent in ajointly controlled entity, particularly in those entities that require
the unanimous consent of all members with regard to majordecisions and specify limited exit rights. The other parties inthese entities may also be competitors of the Company, andthus may have interests that differ from those of the Company.

Product Liability and Warranty Claims
The Company designs, develops and produces a number 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
are adequate to protect it from such liabilities, no assurances
can be given that claims will not arise in the future or that suchinsurance coverage will be adequate. Some types of claimed
damages, such as punitive, exemplary or 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 to change
scope of coverage, premiums and deductible amounts. No
assurances can be given that the Company will be able tomaintain its current levels of coverage nor that the insurance
coverages in place are adequate to cover all significant risk
exposure of the Company.

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21

Risk Factors /3 Legal Risks

Any problems in this respect may also have a significant adverse
effect on the reputation of the Company and lead to a decline
in demand for its products and services. Any reputational
damage faced by the Company may be exacerbated due tothe Company’s visibility.

The Company cannot predict at this time the impact on it asa result of any product liability or warranty claims as such will
depend on the nature and size of any such claim.

Intellectual Property
The Company continuously seeks to develop and deliver
new products to meet customers’ evolving needs, while also
improving its existing product lines. Technological innovation
has been at 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 and services and in its
operations. In a typical year, the Company files around 800 newpriority-establishing patent applications and files globally around
1,600 national patent applications in global markets where it
seeks to protect its technology assets. The Company has granted
patents for around 10,500 individual technologies with nearly
4,000 patents pending. This level of protection is benchmarked
against peer and competitor companies and is consideredsufficient to protect core, proprietary differentiating technology
which is developed by the Company. Despite these efforts toprotect its IP rights, any of the Company’s direct or indirect IP
rights could be challenged, invalidated or circumvented. Further,
the laws of certain countries do not protect the Company’s
proprietary rights to the same extent as the laws in Europe andthe US. Therefore, in certain jurisdictions the Company may be

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Airbus / Universal Registration Document 2022

unable to protect its proprietary technology adequately against
unauthorised third-party copying or use, which could adversely
affect its competitive position. The Company may also face lackof certainty with respect to IP rights for existing or new researchand development programmes and established or potential
partnerships with private or public organisations, academic
institutions and research councils, charities and government
departments, where the relevant IP frameworks or user-rights/
ownership governing those relationships is dependent on the
UK’s former status as a member state of the European Union.
In the event the Company is unable to adequately procure andprotect critical IP it could potentially not implement its businessstrategy.
The Company has been accused of infringement on occasion
and could have additional claims asserted against it in the future.
These claims could harm its reputation, result in financial penalties
or prevent it from offering certain products or services which may
be subject to such third-party IP rights. Any claims or litigation inthis area, whether the Company ultimately wins or loses, could
be time-consuming and costly, harm the Company’s reputation
or require it to enter into licensing arrangements. The Company
might not be able to enter into these licensing arrangements
on acceptable terms. If a claim of infringement were successful
against it, an injunction might be ordered against the Company,
causing further losses. There are currently no significant claims of
IP infringement pending against the Company. Minor claims andpre-dispute matters commonly settle either without the issuanceof formal legal proceedings or during initial proceedings.

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

4.

Environment, Human Rights,
Health & Safety Risks

Climate-Related Risks
In accordance with the Task Force on Climate-related Financial
Disclosures (“TCFD”) recommendations, the Company isstrengthening its enterprise risk management (“ERM”) risk
identification process for climate-related risks and opportunities,
incorporating climate scenario analysis. The Company
categorises its climate-related risks and opportunities according
to the TCFD classification (e.g. physical, transitional and thecorresponding subcategories). The scope of analysis is theCompany – including its Divisions – and includes the upstream
and downstream value chain. The ERM system aims for early
identification of short-term (“ST”, around 2025), medium-term(“MT”, around 2035) and long-term (“LT”, around 2050) climaterelated risks and opportunities.

To identify the climate-related risks and opportunities, theCompany used three temperature climate scenarios (1.5°C,
2°C and 3°C), five driving forces (e.g. environment, technology,social, political and economic) and three time horizons. Basedon a qualitative analysis, the Company estimated the probabilityof risk or opportunity materialisation; the results are displayedin tables next to the corresponding risk. The assessment ofrisks and opportunities identified by the Company is subject
to revision, as the methodology and process further mature.

1.5°C

Aggressive mitigation - Limiting warming to 1.5°C
This is an ambitious scenario that limits global warming to 1.5°C by the end of the century (50% chance) through stringent climate
policies, laws and high levels of innovation reaching net-zero CO2 emissions around 2050 with some countries (e.g., EU) reachingnet-zero GHG by this point. In this scenario it is assumed that policies to decarbonise are introduced immediately (2020s). Suchpolicies and laws could diverge across sectors, regions and pace or could be introduced smoothly and harmoniously. Progress
towards sustainable development goals is fast.
Mitigation strategies implemented worldwide and across sectors include: (i) transitioning from fossil-based energy to very low or
zero-carbon energy sources (renewable energy). Carbon Capture and Storage (“CCS”) is used in targeted remaining fossil-based
facilities; (ii) improving energy efficiency; (iii) deploying both nature and technology based Carbon Dioxide Removals (“CDR”) to
neutralise residual GHG emissions; and (iv) implementation of measures that could restrict demand.
CDR is used to accelerate decarbonisation but kept to the minimum possible (residual emissions) and broadly in line withsustainable levels of renewable energy production. Technologies could reduce the emissions of the transport sector in developed
countries and limit emissions growth in developing countries. Demand-focused policies could reduce demand for transport
services and support the shift to more energy efficient and low carbon intensive products and transport modes. While efficiency
improvements can provide some mitigation potential, additional mitigation technologies for aviation are required. Renewable andlow-carbon fuels, such as hydrogen, high density biofuels and synthetic fuels can provide a viable substitute for aviation whenelectrification is not possible, and contribute to renewable energy storage.
Generally, physical risks are relatively low but transition risks are high.

2°C

Strong mitigation – Warming limited to 2°C
This scenario assumes a more gradual approach in the introduction of climate mitigation actions limiting global warming to 2°C
by the end of the century (~65% chance). Net-zero emissions are achieved after 2070. In this scenario, countries‘ ambitions ofemissions reductions are different around the world and consequently, climate policies and laws are divergently introduced.
Progress towards achieving sustainable development goals is slow. Development and growth proceed unevenly depending on
the country and region. The environment experiences degradation despite measures that are less resource- and energy-intensive.
Mitigation strategies implemented worldwide and across sectors include: (i) transitioning from fossil fuels to low carbon andrenewable energy sources, CCS is used for fossil-based facilities; (ii) the deployment of CDR is slow and mostly focused in nature
based solutions; (iii) improving energy efficiency and; (iv) implementation of demand measures.
Complementary investment will be needed in new grid management and storage solutions to ensure continued reliability. Carbonneutral fuels like (renewable) hydrogen, biofuels and synthetic fuels can provide a viable substitute when electrification is notpossible.
Generally, physical risks are higher than in 1.5°C and transition risks are lower compared to a 1.5°C scenario.

3°C

Disorderly mitigation – Warming exceeding 3°C
The world’s nations have failed to control climate change. Global agreements to limit GHG emissions have not been successful
and global warming is over 3°C. This scenario results from “business as usual” behaviour.
Unilateral decisions from some countries to protect their own population or resources have resulted in conflicts, creating
humanitarian crises and mass movement of populations. In this scenario, GHG emissions have resulted in a complete change ofthe global climate, to an extent that is near impossible to predict today. Tipping points have been passed and triggered irreversible
changes to the global ecosystem. Degraded environmental conditions have rendered the dryer areas of the world inhabitable,
inducing further climate related migrations. In these conditions, the population has regrouped in giant urban areas and the global
growth has stopped. Access to food, water and medicine is difficult for the majority, leading to significantly degraded living
conditions and life expectancy.
Generally, transition risks are lower than physical risks.

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

Climate-related risks:Technology. Transition – Technology
The Company has identified the risk of a reduction in the
Company’s business, results of operations and financial condition
if a competitor brings a lower emission product to the market
before it does. Delivering on commitments and potential future
requirements to mitigate climate impacts will require significant
technological developments for the commercial aircraft sector
as well as appropriate infrastructure developments and otherecosystem adaptations. In the event that a competitor or newmarket participant has access to technological developments
unavailable to the Company and is able to place on the market alarge passenger aircraft with significantly lower emissions before
the Company, climate mitigation requirements may push themarket towards competing products until the Company andits partners can develop a competing alternative, which could
lead to a temporary loss of market share and competitivenessas well as reduced revenue. This risk may trigger the need for
the Company to develop new technologies faster in order tobe able to market competitive products, leading to substantial
research & technology (“R&T”) and research & development(“R&D”) expenses.
Energy Ecosystem Readiness. Transition – Market
The Company has identified the risk of low volumes of renewableelectricity and of available sustainable biomass and the risk ofthem not being directed for the use of industries and/or aviation.
This could result in insufficient quantities of sustainable aviation
fuels (“SAF”), hydrogen, and energy for manufacturing activities,
thereby limiting the Company’s decarbonisation levers to alignwith the Paris Agreement temperature targets and increasing
costs and operational restrictions. This could result in reduced
attractiveness of current and new products leading to lower or
longer returns on invested R&D. This market risk may trigger
the need for the Company to deploy a dedicated ecosystemengagement plan (see “– Information on the Company’s Activities– Non-Financial Information – 1.2.2 Climate change”), leading tomaterial operating expenses and/or related investments.

Company’s climate-related risks mapping
RISKS (see “– Risk Factors” for full description)
Transition – Technology
Transition – Market
Physical – Chronic
Physical – Acute: ST –

24: MT –: LT

Airbus / Universal Registration Document 2022

Change in climate, weather, environmental conditions, water
availability and sea level rise. Physical – Chronic
The foreseen consequences of climate change include harsher
average weather conditions, increased temperatures and arise in sea level. The change in environmental conditions
and available resources for manufacturing activities could
produce an accelerated degradation of the Company’s
industrial infrastructure and assets (buildings, tools, hardware),and disruption of its supply chain therefore impacting theCompany’s manufacturing activities. In addition, the change
in environmental conditions could also negatively impact theperformance of products in operation and negatively impact thehealth and safety of the Company’s employees. Longer-term
shifts in climate patterns may result in temporary production
disruption leading to loss in revenues and subsequently profit
margins. Additionally, shifts in climate patterns could trigger theneed 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 the Company’s
insurance policy.
Change in climate, weather, environmental conditions andwater availability. Physical – AcuteThe foreseen consequences of climate change include more
frequent extreme weather events, such as hurricanes, hailstorms, heat waves, droughts or extreme cold spells. These
could negatively impact the Company’s products and operations,
including but not limited to changes to aircraft operation safety
standards, destruction and/or damage of exposed industrial
infrastructure and increased risk to people’s safety. The above
may result in temporary production disruptions leading to loss
in revenues and subsequently profit margins. Additionally, it
could trigger the need for additional modifications to the aircraftin order to meet more stringent safety standards, as well as
to industrial operations and procurement strategy, leading toincreased costs and the adaptation of the Company’s insurance
policy.

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

2°C

3°C

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

The outcome of the Company’s qualitative analysis is synthesised in the following table: Mitigation actions the Company has
engaged, including to address these risks are presented in the section “1.2.2 – Climate change / IV. Transition plan”.

Company’s climate-related risks and opportunities mapping
RISKS (see “– Risk Factors” for full description)

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

2°C

3°C

Transition – Technology
Transition – Market
Physical – Chronic
Physical – AcuteOPPORTUNITIESEnergy source
MarketProducts and services: ST –: MT –: LT

The Company identified the following complementary climate-related risks presented below as per TCFD categories:
Market: Changes in societal expectations and growing
concerns about climate change may impact market demand
for air transport. In particular, a change in certain passengers’
behaviour or their transition to other transport modes could
decrease the demand for the Company’s current and future
generation of products, causing a loss of revenues.
The development of future products based on the ZEROeconcepts will require significant investments in both products
and supporting infrastructure, which could directly impact theoperating costs of such a product.
The competitiveness of this next generation product will alsostrongly depend, among other factors, on the evolution of
the price of carbon dioxide emissions. It is, therefore, crucial
for the Company to account at each step of development formarket expectations, while staying affordable for its customers
and competitive with regards to competitors’ portfolios. The
failure to do so could result in the Company losing market
share to competitors, as well as affecting the Company’s
return on investment with regards to future commercial aircraft
products.

Policy and Legal: Aviation and aerospace are complex industries,
with long product development cycles and where change takes
a long time to be implemented. A rapid evolution of climaterelated policies (such as the EU zero-pollution communications)and regulatory frameworks (CO2 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 this is a global industry, policies andregulations implemented at regional rather than international
level, or these evolving at a different speed depending on theregion, could result in a negative impact on the competitive
conditions for manufacturers and aircraft operators. This could
result in a loss of competitiveness for the Company.
Reputation: Reputational risks could be divided into several
categories. Firstly, there is a risk that negative perceptions about
the Company’s environmental performance are used as key
decision-making criteria for consumers, investors, or even new
talents. Secondly, there is a risk that the Company’s reputation isdamaged 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.

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

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

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

Regulatory Risks
The Company’s expenditure associated with environmental,
human rights, health and safety challenges may increase due
to both increased costs of compliance with regulations in thoseareas as well as reputational and litigation risks.
Given the scope of its activities and the industries in which it
operates, the Company is subject to stringent environmental,
human rights, health and safety laws and regulations innumerous jurisdictions around the world. The Company
therefore incurs, and expects to continue to incur, significant
capital expenditure and other operating costs to comply
with increasingly complex laws and regulations covering theprotection of the natural environment, as well as occupational
health and safety and human rights. Moreover, new laws andregulations, the imposition of tougher licence requirements,
increasingly strict enforcement or new interpretations of existinglaws and regulations, may cause the Company to also incur
increased capital expenditure and operating costs 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 ofphysical and psychological risks to people arising from work,
including chemical, mechanical and physical agents in lightof applicable regulations. Risks that could arise from work
activities include the possibility of injury, physical and mental
ill-health, damage to equipment, business interruption andregulatory action. Any reputational risk and claims against theCompany that may result will also need to be managed andmay lead to additional health and safety expenditure being
required. The Company maintained its COVID-19 surveillance
and appropriate risk management measures in the workplace.
Environmental protection expenditures include costs to prevent,control, eliminate or reduce emissions to the environment,
waste management, the content of the Company’s products,
and reporting and warning obligations. Current trends indicatethat regulatory pressure on the international scene to reduce theenvironmental footprint of industry is steadily growing (circular
economy and resources efficiency, energy transition and climatechange engagement, air and water quality improvement).

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Airbus / Universal Registration Document 2022

If the Company fails to comply with environmental, humanrights, health and safety laws and regulations, even if caused byfactors beyond its control, that failure may result in the levyingof civil or criminal penalties and fines against it. Regulatory
authorities may require the Company to conduct investigations
and undertake remedial activities, curtail operations or close
installations or facilities temporarily to prevent imminent risks.
In the event of an industrial accident or other serious incident,
employees, customers and other third parties may file claims
for ill-health, personal injury, or damage to property or theenvironment (including natural resources). Further, liability undersome environmental, human rights, health and safety laws canbe imposed retrospectively, on a joint and several basis, andin relation to contaminated sites, without any finding of noncompliance or fault. These potential liabilities may not always
be covered by insurance, or may be only partially covered.
The obligation to compensate for such damages could havea 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, and those
covering substances and preparations, in the jurisdictions inwhich they operate. Although the Company seeks to ensure thatits products meet the highest quality standards, increasingly
stringent and complex laws and regulations, new scientificdiscoveries, delivery of defective products or the obligation to
notify or provide regulatory authorities or others with required
information (such as under the European Union Regulation
known as “REACH”, which addresses the production and useof chemical substances) may force the Company to adapt,
redesign, redevelop, recertify and/or eliminate its products
from the market thereby incurring significant additional costs.
Seizures of defective products may be pronounced, and theCompany may incur administrative, civil or criminal liability. Any
problems in this respect may also have a significant adverse
effect on the reputation of the Company and lead to a decline
in demand for its products and services.

Risk Factors /Irrespective of compliance with applicable laws and regulations,the Company’s reputation and the demand for its products
may also be affected by the public perception of environmental
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 industrial
operations on local communities, on the environment and on
air and water quality.

The Company cannot predict at this time the impact on it asa result of environmental, human rights, health and safety
matters, and may be adversely affected by them in the manner
described above. For further information on sustainabilityrelated risks, see “– Information on the Company’s Activities– 1.2 Non-Financial Information”.

Airbus / Universal Registration Document 2022

27

Chapter

28

Airbus / Universal Registration Document 2022

01
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
35
44
50
57
58
58

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

61
61
68
86
88
90
92
93
95
97
102
107
109
111
115
118
126
128
137
138
144
148

1.3

Other Corporate Activities

149

1.4

Recent Developments

157

Airbus / Universal Registration Document 202229

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

1.1 Presentation of the Company
1.1.1

Overview

Due to the nature of the markets in which the Company operates and the confidential natureof its businesses, any statements with respect to the Company’s competitive position set out
in paragraphs 1.1.1 through 1.1.5 below have been based on the Company’s internal information
sources, unless another source has been specified below.
Airbus pioneers sustainable aerospace for a safe and united
world. The Company constantly innovates to provide efficientand technologically-advanced solutions in aerospace, defence,and connected services. In commercial aircraft, Airbus offers
modern and fuel-efficient airliners and associated services. The
Company is also a European leader in defence, security andspace businesses. In helicopters, the Company provides 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
focuses on geopolitics, sovereignty, resilience and sustainability,
and remains well placed to enable the Company to create value
and remain profitable:

With the same logic, the helicopter portfolio is expanding throughmilitary versions of commercially successful products.

2. leverage European roots to pursue global reach;

In order to keep the current portfolio competitive and to extend
the longevity of its products beyond 2030, Airbus will continue
evolving platform capabilities, such as A330 MRTT automatic
air-to-air refuelling and new standard operating capabilities for
the A400M. For services, new digital business will be addressedbeyond our regular profitable MRO business.

3. increase capacity to invest for the future; and1.2 Pioneering for the Next Generation

1. grow Airbus as an aerospace and defence leader;

4. lead the transformation of the aerospace industry.

1. Grow Airbus as an Aerospaceand Defence Leader
Leadership today is not a guarantee for 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 to capitalisingon its current commercial aircraft portfolio through incremental
improvements. Airbus estimates that its current products havesubstantial upside leading to exceptional longevity. This has
been demonstrated by the New Engine Option (NEO) versions ofA320 and A330 and stretch versions, such as the A321XLR, butalso in smaller, incremental improvements on every product. The
A330neo and the A350 both deliver high levels of fuel efficiency(25% fuel consumption saving compared to previous generation
aircraft), accelerated pilot on boarding (all wide-body aircraft
benefit from a common type rating making pilot training shorter,
smoother and lower cost), and comfort through the exclusive

30

airspace cabin, setting a modern benchmark in passenger
comfort and wellbeing. The Company plans to continue
incremental improvements further in the coming years on all
Airbus aircraft, with a focus on fuel efficiency, environmental
impact, operational improvements, recurring costs, digitalconnectivity and increased automation / autonomy functions.
Airbus aircraft are also well suited to serve freighter and VIPmarkets. The decision to launch the A350 Freighter version(“A350F”) in 2021 is a typical example, setting a new standard
for air freight efficiency, responding to Boeing’s positioning inthis segment with a successful market entry (35 firm orders asof the end of 2022).

Airbus / Universal Registration Document 2022

In preparing the next generation of aircraft, the requirement for
improved sustainability will be the catalyst that allows aviation
to continue to meet its larger purpose of uniting the world. The
quest for lower carbon air travel will fundamentally change
aerospace. Not since the introduction of the jet engine has
the industry faced such a challenge, in particular around newenergy sources. New certification challenges, new materials,
new designs, new industrial processes and new businessmodels will also be assessed, which will provide sources ofopportunity. In short, the Company aims to set the standards andmature the technologies of sustainable aviation for the benefit of
the environment and society at large, delivering products andservices that make a step change from our customers whileremaining viable and feasible for Airbus.
Airbus has already started preparing the enablers for thisevolution and has invested in key R&T bricks. In 2022, theCompany launched, together with CFM International, a flight test
demonstrator for advanced open fan architecture. In addition, theZEROe demonstrator development platform has been launched
to test hydrogen technologies on the ground and in the air.
Airbus’ UpNext demonstrators study potential new products
and services that encompass radical flying technologicalbreakthroughs. Meanwhile Airbus has demonstrated formationflight missions, through its Fello’fly project, to realise fuel efficiency
improvements on aircraft already operating in service.

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

Airbus is also leading a European consortium to increase theair mobility capabilities of the armed forces of European Union
Member States with the new Future Mid-size Tactical Cargo(FMTC) transport aircraft to complement the missions 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 be in
the future. Most aerospace companies nurture a substantial
defence and space element in their portfolio to gain synergies
and increase stability. This is also true for Airbus, with commercial
aircraft, helicopters, defence, space, and security activities allpart of the portfolio. Governmental, military and commercial
business, products and services, fixed wing and rotary platforms,
satellites and launchers, both self- and customer-funded, are all
elements which balance market variations, provide synergies,
and help to smooth investment cycles. Additionally, as digital
design, manufacturing & services require similar capabilities
across aerospace segments, owning a broad portfolio delivers
flexibility in resource allocation and the reuse of investments
in core capabilities. The COVID-19 crisis demonstrated theimportance of having strong and complementary helicopter,defence, space and security businesses alongside commercial
aviation within the portfolio, enhancing the resilience of the overall
group.

1.4 Expand as a Leader Towards New Territories
In commercial aviation, the demand for more fuel-efficientsolutions will play out globally and will 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 for complementary urban transport solutions using thethird dimension. Capturing growth in these new vertical take-off
and landing (“VTOL”) and UAM markets, for both platforms andservices, is a major driver for the Company’s strategy. Airbus
launched its CityAirbus NextGen eVTOL in 2021 for this purpose.
In defence, shaping air and space power integrating aircraft,
unmanned systems and space assets with a cloud structure
for command and control, will revolutionise the performanceof Airbus’ defence customers in future and aims to secure theCompany’s long-term presence in defence markets.

2. Leverage European Roots to Pursue
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.

2.1 Global Reach Through Local Actions
Over the past 50 years, Airbus has grown from being acooperation of national aerospace companies, in four European
countries, to a global leader in commercial aerospace with astrong foothold in helicopters, defence, space and security. No
aerospace and defence company is more 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 theCompany in addressing global markets. Airbus has built on its
strong European heritage to become truly international, operating

01
01

across more than 180 locations. The Company has invested inand grown aircraft and helicopter final assembly lines acrossAsia, Europe and the Americas.
In preparation for the single aisle production ramp-up to 75
aircraft per month (rate 75), the Company’s commercial aircraftbusiness launched the transformation of its industrial system
across the world. The final assembly lines in Tianjin, China andToulouse have been upgraded to make them A321 capable.
Furthermore, a second assembly line in Mobile, USA is being
established to further increase local capacity. To enable thissurge of single aisle rates, major aircraft components assemblylines have been either upgraded (Broughton) or opened (SaintNazaire). In parallel, Airbus expanded its presence in Portugal,
to create a new central and specialised Global Business Service
Center, and in India, through the development of its engineering
and Information Management competence centres.

2.2 Aerospace and Defence is a Sovereign Industry
As the war in Ukraine has demonstrated, strong defence
capabilities provide nations with physical security and the means
to protect their citizens, values and vital infrastructure. Thissecurity is in turn a prerequisite of peace, the rule of law, politicalstability, democracy, environmental sustainability, human rights,
economic development and prosperity and scientific progress.
All nations need a certain level of strategic autonomy and Airbus
products and services help nations protect freedom, peace andsecurity. Strongly rooted in all key national markets in Europe, theCompany 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 with these nations
have been nurtured over several decades of manufacturing,
supplying and maintaining critical defence systems for theirarmed forces. Our manufacturing system is a model of European
integration and our growth as a Company owes much to ourability to operate freely across borders within Europe.
Our products and services range contribute to safety andsecurity in many different ways. They range from the aircraftthat allow 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 of these help tomake the world a safer place.

3. Increase Capacity to Invest for the FutureMarket recovery after the COVID-19 pandemic has 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“zero-COVID” policies created ongoing volatility throughout
2022. Market recovery unleashed waves of pent-up demand
for air travel which almost all actors in the industry had majordifficulties in accommodating, limited by their human resources
and supply chains. The pressure on supply was compoundedby Russia's 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.

Airbus / Universal Registration Document 202231

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

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 forwhich Airbus is a leader. 2022 provided another significant
milestone: the certification and first delivery of the Comac C919,
the Chinese competitor to the A320 and Boeing 737. Hencethe right combination of growth, profitability and resilience isvital to the Company’s 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 role in ensuring that its sectors
consistently deliver on their vital role in the global economy
by building resilience through having sufficient funds available
to withstand the shocks; through close cooperation withstakeholders to ensure the overall travel value chain survives;
through seamless coordination along the supply chain to detectissues rapidly; and through reinforcement of the balance sheet
to continue investing in future competitiveness. To compete
successfully, the Company continues to invest in the evolutionof its product portfolio and its decarbonisation roadmap, thedevelopment 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 restructuring of 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 toinvestors, 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. As the Company delivers on its strategy as aleader with European roots and global reach, the Company is
uniquely positioned to pioneer the industry, deepen relations
with its customers, expand its role in defence, space andhelicopters, while delivering shareholder value in line withmarket expectations.

32

industry, and air travel routes are the arteries of this system.
Sufficient prosperity will be required to deliver the climate neutraltransformation of 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. Social
sustainability and good governance are integral elements inmanaging the Company’s vision for a sustainable future. Airbus’
business is deeply connected with environmental, social andgovernance (“ESG”) objectives through various international
standards, frameworks and initiatives.
Defence is a crucial component of security and security is theprecondition for a responsible and sustainable world. In thisendeavour, Airbus is committed to sustainable and responsible
business practices, and maintaining the strictest legal andhighest ethical standards in full compliance with internationallaws and European and national export control regulations.
Our defence capabilities provide countries with the means toprotect their citizens, democratic values and vital infrastructure,
which is of incalculable societal value.
The capabilities and technologies that the Company develops
in this sector will help its customers in the future air domain(teaming, autonomy, digital services, etc.) and protect key
space assets. All in a future system-of-systems environment
which will bring real operational superiority and will provide
synergies to the civil activities.
The successful launch of FCAS’s Phase 1B paves the way inthis direction. The project will see major European defence
partners cooperating to prove the viability of new high-end
technologies – Next Generation Fighter, Remote Carriers(drones) and a Multi Domain Combat Cloud.
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 andantennas, Very High Resolution earth observation solutions)are also spearheading future applications for defence orsustainability purposes and information superiority.

4.1 Lead the Journey Towards Clean Aerospace

4. Lead the Transformation of the Aerospace
Industry

Airbus, and the wider aerospace industry, must ultimately
determine ways to eliminate the impact of its activities on the
climate. This must be achieved by the current generation. Thisis a clear expectation of the flying public and society at large,
demonstrated by the announcements and commitments ofinternational bodies such as IATA and ICAO during 2022. In
response, Airbus is striving to lead the industry on a strong pathto the lowest climate impact solutions as part of the industry’s
commitment to the Paris Agreement.

Aviation’s licence to grow and operate in the future is inherently
linked to sustainability. Improving the environmental impact ofour day-to-day lives is at the top of agendas throughout theworld. While some argue for limiting mobility, the Company
believes the solution should not hinder people’s ability toconnect and unite across the world. 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 and a guiding star for the Company.
Air travel brings prosperity through the connections it makes.
One in ten jobs around the world is in the travel and tourism

A major focus of the Company’s sustainability strategy
is reducing the CO 2 emissions of its aircraft, as well as its
industrial environmental footprint at its sites worldwide
and throughout the supply chain. In 2022, we submitted to
the Science-Based Targets initiative (“SBTi”) our planned
decarbonisation targets for both our industrial footprint aswell as that of our sold products, whilst also developing
scenarios to enable a transparent approach to Task Force on
Climate-Related Financial Disclosures recommendations. The
Company is investing in and developing viable products andservices that are attractive and efficient for its customers by

Airbus / Universal Registration Document 2022

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

maturing the technologies related to sustainable aviation fuels(“SAF”), hydrogen, hybridisation, industrial systems, aircraftarchitectures based on next generation engines, future wing
and fuselage design and automation.
Airbus believes SAF will play a key role in the decarbonisationof in-service and future aircraft. Research programmes towards
100% SAF capability have been continued in 2022, alongside
incentivisation and support to assure a rapid growth in theoverall SAF ecosystem. Meanwhile Airbus remains focusedon maturing hydrogen ecosystem, transport and refuelling
infrastructure to deliver on its ambition to bring the world’s firsthydrogen-powered commercial aircraft to market by 2035,
known as ZEROe.
Airbus is also involved in the Single European Sky Air Traffic
Management Research (“SESAR”) initiative to optimise aircraft
operations in Europe. In 2022, Airbus committed to carbon
removals, both through investment in the worlds largest direct
air carbon capture facility, as well as by purchasing open market
carbon credits.
CO 2 is not the only aviation emission known to have an
impact on climate. Airbus is engaged at both international
and European level with research institutes at the forefront ofscientific knowledge on the non-CO2 effects of aviation to better
understand and respond to these challenges.
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.

As declared in Airbus’ Human Rights Policy Statement,
Airbus commits to embed and advance respect for humanrights, covering the activities under its full, direct control in its
Divisions, affiliates and supply chain. Airbus has also committed
to undertaking ongoing risk-based human rights due diligenceon such activities to identify, address and remedy adverse
impacts, to prioritise its most salient human rights issues andto be transparent in this regard.

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

Organisation of the Company’s
Businesses

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.

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.

4.2 Build our Business on the Foundationof Safety and Quality

Airbus (Commercial Aircraft)

Safety cannot be compromised. That is why the number one
priority for the Company is to protect and safeguard people,
suppliers, communities, customers and assets from health andsafety risks arising from the Company’s activities. Fostering asafety culture which goes beyond regulatory compliance inproduct safety and quality, and championing a “zero-harm”
mind-set in which the Company takes responsibility for itself andothers, is a core commitment of the Company’s sustainability
strategy. The Company focuses on developing rigorous safety
management guidelines to ensure its long-term competitiveness.

4.3 Respect Human Rights and Foster Inclusion
The Company’s respect for human rights is an essential partof responsible business conduct in its business activities andthroughout the value chain.
Airbus believes that everyone who works either for or with theCompany, both within its business operations and the supply
chain, contributes to its continued innovation, creativity, andbusiness success. Therefore, it is imperative that the Company
fosters empowerment, collaborative working, inclusiveness01
01

and diversity to enable a workplace to which people can bring
their best selves. The Company ensures that its employees
have access to a wealth of education and employee mobility
opportunities to grow their skills because the Company strongly
believes a more educated workforce is a more empowered
workforce.

Airbus is one of the world’s leading aircraft manufacturers ofpassenger and freighter aircraft and related services.
In 2022, Airbus delivered 661 aircraft (compared to 611 deliveriesin 2021) and received 1,078 gross orders (compared to 771 grossorders in 2021). After accounting for cancellations, net orderintake for 2022 was 820 aircraft (compared to 507 aircraft in2021). As of 31 December 2022, Airbus’s backlog of commercial
orders was 7,239 aircraft (compared to 7,082 aircraft in 2021).
In 2022, Airbus (Commercial Aircraft) recorded total revenuesof € 41.4 billion – representing 69% of the Company’s revenues.
See “– 1.1.2 Airbus”.

Helicopters
Airbus Helicopters is a global leader in the civil and militaryrotorcraft market, offering one of the most complete and modern
ranges of helicopters and related services. This product range
currently includes 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 / Universal Registration Document 2022

33

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

Airbus Helicopters delivered 344 helicopters in 2022 (comparedto 338 in 2021) and received 362 net orders in 2022 (compared
to 414 net orders in 2021). Order intake amounted to € 9.34 billion(2021: € 8.55 billion). Military contracts accounted for 63% of thisorder volume, with civil sales representing the remaining 37%.
At the end of 2022, Airbus Helicopters order book stood at 757
helicopters (compared to 739 helicopters in 2021).
In 2022, Airbus Helicopters recorded total revenues of€ 7.05 billion, representing 11% of the Company’s revenues.
See “– 1.1.3 Helicopters”.

Defence and Space
Airbus Defence and Space is a European leader in defence,
security and space businesses.
Airbus Defence and Space is organised in three main segments:
Military Air Systems, Space Systems and Connected Intelligence.
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 2022, Airbus Defence and Space
recorded total revenues of € 11.26 billion, representing 19% of
the Company’s revenues. See “– 1.1.4 Defence and Space”.

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

2022

2021

2020

Airbus41,42836,16434,250Airbus Helicopters

7,048

6,509

6,251

Airbus Defence and Space

11,25910,186

10,446

Subtotal segmental revenue

59,73552,85950,947

(972)

(710)

(1,035)58,76352,14949,912Eliminations

Total

ORDER INTAKE BY BUSINESS SEGMENT
2022

2021

(In € billion) (In percentage)(1)2020(In € billion) (In percentage)(1)(In € billion) (In percentage)(1)

Airbus

59.7

72.2%

40.0

64.3%

16.1

48.1%

Airbus Helicopters

9.3

11.2%

8.6

13.7%

5.5

16.4%

Airbus Defence and Space

13.7

16.6%

13.7

22.0%

11.9

35.5%

Subtotal segmental order intake

82.7

100%

62.2

100%

33.5

100%

Eliminations

(0.2)

(0.2)

(0.2)

Total

82.5

62.0

33.3

(1) Before “Eliminations”.

ORDER BACKLOG BY BUSINESS SEGMENT
31 December
2022

2021

(In € billion) (In percentage)(1)

Airbus(In € billion) (In percentage)

86.9%

345.1

86.4%

(In € billion) (In percentage)(1)

324.7

86.8%

Airbus Helicopters

20.8

4.6%

18.0

4.5%

15.8

4.2%

Airbus Defence and Space

38.4

8.5%

36.1

9.1%

33.5

9.0%

Subtotal segmental order backlog

449.7

100%

399.2

100%

374.0

100%

Eliminations

Total(1) Before “Eliminations”.

34

390.5

2020
(1)

Airbus / Universal Registration Document 2022

(0.4)

(0.8)

(0.9)

449.2

398.4

373.1

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

01
01

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

1.1.2

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, each Division,
Business Unit and subsidiary is vested with full entrepreneurial
responsibility.

Airbus (Commercial Aircraft)

Airbus is one of the world’s leading aircraft manufacturers ofpassenger and freighter aircraft and related services. In orderto help shape the future of air transportation, Airbus seeksinnovative technological solutions and the most efficient sourcing
and manufacturing possible, so airlines can grow sustainably
and people can connect. Airbus’ comprehensive product line
comprises successful families of jetliners ranging in capacityfrom 100 to more than 400 seats: the A220 Family; the A320
Family including the latest advanced technology A320neo,
which is civil aviation’s best-selling product line; the A330
Family, including the advanced A330neo, the latest generation
widebody A350 and its freighter derivative the A350F. Acrossits aircraft families Airbus’ solutions ensure that aircraft sharehigh commonality in airframes, on-board systems, cockpits andhandling characteristics. This significantly reduces operating
costs for airlines. See “– 1.1.1 Overview” for an introduction to
Airbus.
Airbus’ global presence includes activity in Europe (France,
Germany, Spain and the UK), as well as in Canada, 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 through incremental improvements,
while at the same time pioneering disruptive technologies.
Airbus strives to find solutions that limit negative impact on theenvironment, and has set itself robust near-term science-basedtargets to reduce its greenhouse gas (“GHG”) emissions whichwere 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. Airbus believes
that SAF will play a key role in reducing the environmental
footprint of the aviation industry, as it can be used both forin-service fleets and in the flying fleets of tomorrow. Airbus
has actively tested 100% SAF capabilities on aircraft including
the A380, A350 and A321neo. The Company’s ambition is
to have all its aircraft platforms capable of being operated

with 100% SAF before the end of the decade. Airbus is also
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, including energy players. As
a result, Airbus strives to foster collaborative engagement andis in constant dialogue with key stakeholders including airlines,
operators, energy producers, financiers, regulators, industry
organisations, non-governmental organisations and others, andengages with these stakeholders at events such as the Airbus
Capital Market Day, the Airbus Summit or the Airbus Supplier
Sustainability Council (established in 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 and resilience.
Airbus intends to further strengthen the industrial set-up andindustrial flow. The further transformation of the industrial value
chain will ultimately improve quality, competitiveness, agility andsustainability of the entire ecosystem. The COVID-19 crisis andRussia's invasion of Ukraine both illustrate the imperative for
Airbus to have strong and complementary businesses alongsidecommercial aviation within its portfolio to provide resilience inthe face of uncertainty.

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

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

fleets, the availability of aircraft financing sources and market
evolutionary factors. The performance, competitive posture andstrategy of aircraft manufacturers, airlines, cargo operators andleasing companies as well as wars, political unrest, pandemics
and extraordinary events may also precipitate changes indemand and lead to short-term market imbalances. For further
information, see “– Risk Factors – Business-Related Risks –Commercial Aircraft and Helicopter Market Factors”.
Air transport market recovery continued throughout 2022, with
IATA reporting traffic (Revenue Passenger Kilometres) globallyup from 41.7% of 2019 volumes in 2021 to 68.5%. Load factors
increased 12 points to nearly 79%. As restrictions were removed,
pent-up demand for air travel caused pressure to increase service
which outstripped the ability of airlines, airports and infrastructure
to provide it, with the notable exception of markets directly
impacted by the continuation of China’s “zero-COVID” policies.
Elsewhere, Domestic markets recovered to 2019 capacity levelsby the end of the year, intra-regional market recovery continued
outside Asia and intercontinental market recovery accelerated,
led by a particularly strong transatlantic market. Airline yields
remained strong and load factors recovered notably.
Conversely, Russia's invasion of Ukraine impacted air transport
in many ways, including the application of sanctions to Russian
operations, the sequestration of hundreds of civil aircraft owned
by Western lessors and the closure of Russian airspace to theairlines of all countries choosing to apply sanctions. Russian airtransport operations continued without the support of Western
manufacturers and suppliers in a market essentially isolated fromthe rest of the world. The war created pressure on some criticalraw materials and exacerbated supply chain tensions as wellas driving significant volatility in fuel prices for air transport andheightened inflationary trends, increasing the risk of recession
in some, mainly European countries. However the anticipatedcooling of demand due to inflationary pressures has yet tomaterialise and the relaxation of China’s “zero-COVID” policy may
mitigate impacts and allow the industry to return to a trajectory
more influenced by macroeconomics and demographics.
Around 1% of world freight tonne-kilometres is carried by air,although this represents ~30% of the total value of freight. Aftera period of exceptional demand and high yields during the
pandemic recovery, the air cargo market cooled during 2022
and is now driven more by the habitual, cyclical, macroeconomic
factors. Short-term headwinds include inflation, the strengthof the US dollar and trade disruption. Equally, belly cargocapacity will return to the market as stored widebody aircraft
re-enter service. Significant numbers of converted freighter
aircraft ordered during the pandemic will enter service, mainly
replacing older aircraft. Yet e-commerce growth will continue tobe a strong driving force and will take an increasing share of the
air cargo market. The freighter fleet contains a higher proportionof older aircraft and consequently future deliveries will be more
for replacement than growth.
Having adapted its production rates in 2020 in response to theseverity and speed of the industry downturn, Airbus was able in
2021 to stabilise widebody production and start to increase A320
Family production, placing unallocated aircraft and delivering
part of the accumulated inventory. The process continued
throughout 2022 although supply chain challenges impacted
the company’s ability to ramp-up production at the originallyintended pace, transforming a demand crisis into one of supply.
Over the full year Airbus net deliveries totalled 661 new aircraft to36

Airbus / Universal Registration Document 2022

84 customers and net order intake was 820 aircraft. At the endof 2022 Airbus’ firm order backlog was 7,239 aircraft, over 80%
of which are for the A320 family.
Competitive market-based financing for new aircraft deliveries
has remained available.
The recovery is following a similar pattern to previous recoveries:
many stored aircraft will return to service, complementing newlydelivered aircraft to allow recovery of flight frequencies; loadfactors and aircraft utilisation will improve, followed by yields. Thebalance between these is dependent on individual operators’
actions in a competitive marketplace for air transport services.
As the world demonstrates greater collective resistance tosuccessive COVID variants, the Company continues to expect
the commercial aircraft market to return to pre-COVID levels
between 2023 and 2025 and that the pandemic has not
structurally changed the long-term market for commercial
aircraft.
Overall growth. 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, air travel increased in every year from1967 to 2000, except for 1991 due to the Gulf War, resulting inan average annual growth rate of 7.9% for the period. Demand
for air transportation also proved resilient in the years following
2001, when successive shocks, including 9/11 and SARS in
Asia, dampened demand.
At the end of 2008 and in 2009, the financial crisis and global
economic difficulties witnessed resulted in only the third period ofnegative traffic growth during the jet age, and a cyclical downturn
for airlines in terms of traffic (both passenger and cargo), yields
and profitability. Despite these perturbations, the market
recovered, driven by the underlying demand for air transport.
After 2009 until the current crisis, the industry benefited from a
prolonged period of stability which enabled airlines to collectively
deliver profitability at historically high levels.
The fundamental drivers behind the need for air transport remainunchanged, as a means for enabling highly-efficient physicallinks between people and distribution of goods at a global
scale. However it is an activity which must be conducted ina sustainable manner, and Airbus is committed to pioneering
sustainable aviation. As more governments adapt public policy
to drive towards net-zero GHG emissions, aviation will continue
to play its part. Decarbonisation is likely to be encouraged byregulatory measures including incentives and taxation to varied
extents in different regions. This may increase the differentiation
between the costs of operation of more or less fuel-efficient
aircraft. There is speculation as to whether increased ticket
prices might dampen future growth of passenger demand.
There is no historical precedent for this as aviation growth has
been characterised by consistently strong improvements inefficiency and past increases in fuel prices have been largely
passed through to consumers, although regional differences may
be observed. Airbus is focused on providing more fuel efficient
aircraft for fleet replacement and growth.
Through its analysis Airbus continues to believe in the long-term
growth potential of the industry, with a continuing drive to thesustainable operation of commercial aircraft aimed at meetingthe needs of both the environment and air passengers in the
coming years.

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

Growth and Replacement. Air transport is a global industry anddemand for aircraft is subject to differences in the performanceof national and regional economies as well as the evolution ofenergy costs. However aircraft are liquid assets that can be
moved from one region to another and this provides a degreeof mitigation to fluctuation of demand.
At the end of 2022, Airbus’ backlog was 7,239 aircraft, an increaseof 157 over the previous year. Close proximity and attentivenessto customer needs has enabled careful management of thisbacklog to mitigate the effect on production rates from thepandemic, and third-party financiers have continued to support
the delivery of new, more environmentally-efficient aircraft.
Airline network development: “hub” and “point-to-point”
networks. Following deregulation, major airlines have sought
to tailor their route networks and fleets to continuing changes
in customer demand. Accordingly, where origin and destination
demand prove sufficiently strong, airlines often employ direct,
or “point-to-point” route services. However, where demand
between two destinations proves insufficient, airlines havedeveloped highly efficient “hub and spoke” systems, which
provide passengers with access to a far greater number of air
travel destinations through one or more flight connections.
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.
Once the air transport industry rebuilds after the COVID-19
crisis, airlines will review their positioning and business models
in the frame of restructuring their operations. Airbus expects
that existing networks will in the most part be continued, but
airlines will also have the opportunity to develop their networks
differently having undergone a forced, temporary downsizing.
The availability from 2024 onwards of new-generation longerrange single aisle aircraft such as the A321XLR will provide
greater optionality to airlines.
Alliances. The development of world airline alliances has
reinforced the pattern of airline network development describedabove. According to data from Cirium, a UK-based 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.

01
01

Market Structure and Competition
Market segments. Airbus competes in each of the four principal
market segments for aircraft with more than 100 seats.
“Small” aircraft, such as the A220 and A320 Families, having 100
to more than 200 seats, and which are used principally for shortrange and medium-range routes of up to 3,000 nautical miles.
“Medium” aircraft typically offer up to 300 seats on routes of up
to 5,000 nautical miles. This includes long range versions of theA321, such as A321XLR, as well as the A330 Family.
“Large” aircraft, such as the A350, are widebody twin-aisle
which seat more than 350 passengers on routes of up to
10,000 nautical miles.
“Freight” aircraft, such as the A350 Freighter, which form a fourth,related segment, are a combination of new build and converted
ex-passenger aircraft. Converted aircraft are prevalent in the
expanding e-commerce market which typically sees relatively
low aircraft utilisation. This can provide an economical “secondlife” 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 contributetowards greater resilience of the A350 Programme to future
market fluctuations.
Airbus also competes in the corporate, VIP business jetmarket with the ACJ. The ACJ portfolio is composed of the
ACJ319neo, the ACJ320neo, the ACJ330neo and the ACJ350.
To complete the ACJ family, Airbus launched, in October 2020,
the ACJ TwoTwenty. The first aircraft has been handed over to
a competition centre and entry into service is targeted for 2023.
Geographic differences. The high proportion of single aisle
aircraft in use in both North America and Europe reflects the
predominance of domestic short-range and medium-range
flights, both from the expansion of the low-cost carrier andparticularly in North America due to the development of hubs
following deregulation. In comparison with North America andEurope, the Asia-Pacific region uses a greater proportion oftwin-aisle aircraft, as populations tend to be more concentrated
in fewer large urban centres. The tendency towards the useof twin-aisle aircraft is also reinforced by the fact that many of
the region’s major airports limit the number of flights, due toenvironmental concerns or the infrastructure constraints that
limit the ability to increase flight frequency. These constraints
necessitate higher average aircraft seating capacity per flight.
However, Airbus believes that demand for single aisle aircraft in
Asia will grow over the next 20 years, particularly as domestic
markets in China and India and low-cost carriers continue todevelop 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, whose primary focus has
been on the regional market, has no announced intentions
for higher-capacity aircraft but is studying a new 70/90-seat

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

regional turboprop. Mitsubishi Heavy Industries announced theliquidation of their regional aircraft programme prior to Entry-IntoService. New Russian programmes in the 100-seat and 180-seatcategories are supported with renewed vigour but delayed byseveral years whilst components are substituted by those of
Russian manufacture, and have a limited addressable market.
In December 2022 the Chinese manufacturer COMAC delivered
the first C919 airliner, a direct competitor to the A320neo. Thissignificant milestone heralds the possible end of a period of
duopoly in this market segment, although we consider the likely
market penetration of this competitor to be more significant riskin the 2030s decade than the current decade.
In February 2020, Airbus SE, the Government of Québec
and Bombardier Inc. agreed upon a new ownership structure
for the A220 programme, whereby Bombardier transferred
its remaining shares in Airbus Canada Limited Partnership(Airbus Canada) to Airbus and the Government of Québec.
This agreement brings the shareholdings in Airbus Canada,
responsible for the A220, to 75% for Airbus and 25% for theGovernment of Québec respectively. The Government’s stake isredeemable by Airbus in 2026 – three years later than before. Aspart of this transaction, Airbus, via its wholly owned subsidiary
Stelia Aerospace, acquired the A220 and A330 work package
production capabilities from Bombardier in Saint-Laurent,
Québec.
The partnership brings together two complementary 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.

Customers
As of 31 December 2022, Airbus had 444 customers and a totalof 21,701 aircraft had been ordered, of which 14,462 aircraft had
been delivered to operators worldwide. The net backlog stood
at 7,239 aircraft.
The table below shows Airbus’ largest commitments in terms of
total gross firm orders by customer for the year 2022 (minimum
50 units).
Customers
CHINA EASTERN AIRLINES

100

CHINA SOUTHERN AIRLINES96

BOC AVIATION

80

INTERNATIONAL AIRLINESGROUP – IAG

73

AIR CHINA64

EASYJET56

QANTAS AIRWAYS

52(1) Options are not included.

38

Firm orders(1)Airbus / Universal Registration Document 2022

Products
The Family Concept – Commonality acrossthe Fleet
Airbus’ aircraf t families promote fleet commonality.
This philosophy takes a central aircraft and tailors it to create
derivatives to meet the needs of specific market segments.
For example, both variants of the A220 have a significant levelof common parts and can be operated by a single pilot pool.
Alternatively, the A320, A330, A350 and A380 all share thesame cockpit philosophy, fly-by-wire controls and handlingcharacteristics, enabling pilots to transfer among theseaircraft within the Airbus family with minimal additional training.
Cross‑crew qualification across families of aircraft 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 coreof Airbus’ strategy since its creation. Each product in the
Airbus family is intended to set new standards in areas crucial
to airlines’ success, such as cabin comfort, cargo capacity
performance, economic performance, environmental impact
and operational commonality. Airbus innovations often provide
distinct competitive advantages, with many becoming standard
in the aircraft industry.
A220 Family. Complementing the A320 Family, the A220-100
and A220-300 models cover the segment between 100 and 150
seats and offer a highly comfortable five-abreast cabin. With themost advanced aerodynamics, carbon fiber reinforced polymer(CFRP) materials, high-bypass Pratt & Whitney PW1500G
engines and fly-by-wire controls, the A220 delivers 25% lower
fuel burn per seat compared with previous generation aircraft. In
addition to the airliner versions, 2020 saw the launch of the ACJ
TwoTwenty business jet, based on the A220-100, combining anintercontinental capability of over 12 hours flight duration withunmatched personal space and comfort. Airbus manufactures,
markets and supports A220 aircraft under the Airbus Canada
Limited Partnership agreement (q.v.) finalised in 2018. In 2020,
Airbus delivered the first US-assembled A220-300 aircraft from
Mobile, Alabama.
Primary competitors to the A220 Family are the Embraer
EMB190-E2 and EMB195-E2 and the Boeing 737 Max 7.
During 2022, Airbus received 127 gross orders for the A220
Family of aircraft and 105 net orders, with 53 aircraft having
been delivered.

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

01
01

A220 FAMILY TECHNICAL FEATURES
Model

Entry-into-service

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

Wingspan (metres)

A220-1002016

100 to 120

6,390

35.0

35.1

A220-300

2016

120 to 150

6,297

38.7

35.1

(1) Two-class layout.

A320 Family. With more than 16,700 aircraft sold, and over
10,600 delivered by the end of 2022, 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 the widest fuselage
cross-section of any competing single aisle aircraft. This provides
a roomy six-abreast passenger cabin, a high comfort level
and a spacious under floor cargo volume. 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 variantsof the A319neo & A320neo. The A320neo Family incorporate
many innovations including latest generation engines andcabin improvements which together deliver up to 20% in fuelsavings compared with earlier A320 family aircraft. The A320neo
with Pratt & Whitney engines was the first variant to receive
Type Certification, from EASA and FAA, in November 2015,
followed by the A320neo with CFM engines in May 2016.
The A321neo with Pratt & Whitney engines received Joint
Type Certification in December 2016 and with CFM engines inMarch 2017. Type Certification for the A319neo with CFM engines
was achieved in December 2018 with the Pratt & Whitney engine
variant the following year.

The A320neo Family versions have over 95% airframe
commonality with the A320ceo (current engine option) versions,enabling them to fit seamlessly into existing A320 Family fleets– a key factor for Airbus customers and operators. All orders
for the A318ceo have been met and a full transition to the Neovariants of the other models is nearing completion. Continuing
support for the large in-service A320ceo fleet is undiminishedas new opportunities arise, including those in the developing
passenger-to-freighter conversion market.
Recognising a market requirement for increasing range
capability, the A321neo has been developed to incorporate
additional flexibility in cabin configuration with optional design
weight and fuel capacity enhancements to produce the 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.
Since its launch in December 2010, the A320neo Family hasreceived 8,665 firm orders from more than 100 customers, witha total of 2,592 aircraft delivered to the end of 2022. 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 2022, Airbus received 888 gross orders for the A320
Family of aircraft and 770 net orders, with 516 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 1,774 aircraft sold (of which 288 A330neo) and
1,559 delivered, the A330 Family covers all market segments with
one twin-engine aircraft type 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.
The competitors of the A330 Family are the Boeing 767,
777 and 787 aircraft series.
The latest evolution of the A330 Family is the A330neo(new engine option), comprising the A330-800 and A330-900
versions. These aircraft incorporate latest generation Rolls-Royce
Trent 7000 engines and enhanced aerodynamics for improved

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39

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 during 2020. In October 2020

Airbus certified an improved MTOW (Maximum Take-Off Weight)of 251t on the A330-900 bringing a range increase of 1180 km(650 nm). 251t MTOW was also certified for the A330-800 in
mid-2022.

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 and systems 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 the A350-900 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.
At the end of 2022, the total orders for the A350 Family stood at
925 aircraft, including 35 for the A350F. With 521 aircraft having
been delivered, including 60 during the year, the backlog stoodat 404 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

15,00066.8

64.8

A350-1000

2018

350 to 410

16,10073.8

64.8

109 tonnes

8,700

70.8

64.8

A350F
(1) Three-class layout.

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

The final five deliveries of the A380 took place during 2021 but
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.

40

Airbus / Universal Registration Document 2022

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

Customer Services
Through its Customer Services activities, Airbus aims to ensure
safe, efficient and sustainable aircraft operations thanks to a wide
range of customer centric and value-added services.
In 2022, the worldwide economy and air travel industry showed
regional recovery disparities with North and Latin America,
Europe, Africa and the Middle East leading the number of flightcycles and Asia and China still at lower levels than 2019. 2022
closed with an average of 86% flight cycles compared to 2019.
Together with the growing aircraft operators’ appetite forsolutions to further optimise, digitalise and decarbonise theiroperations, Airbus aftermarket saw an improvement in the
demand for existing and new products and services.
Here are some examples:–– recovering number of Airbus Flight Hour Services (FHS) andcabin upgrades deals;–– Skywise Digital Alliance materialising the first products via
Skywise Predictive Maintenance;–– Airbus Beluga Transport new company was created and thefirst successful missions for non Airbus commercial internal
needs performed;–– Satair’s acquisition of VAS for the extension of the multi-fleet
Used Serviceable Material (USM) product portfolio;–– Airbus Lifecycle Center development in China with the groundbreaking ceremony in July and the start of the site construction
with a planned entry into service in 2023.
In 2023, the priority of Customer Services will be to keepaccompanying and supporting its customers in the safe andefficient return back to service and ramp-up of their activities.
To do so, a range of solutions are available to help reduce
customers´ operating costs, increase aircraft availability,and enhance the quality of their operations and passenger
experience.
With a worldwide network of 6,500 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; 250 field service representatives
positioned in over 100 cities worldwide for on-site assistanceto our operators and system of empowered local teams in Asia,
Africa, China the Middle East and the US; Airbus targets toremain at the forefront of the industry.
To succeed in this context, Customer Services will continue
working on the transformation plan started before the crisis
based on three pillars (customer value, customer experienceand sustainability) through optimisation and simplification of our
products and further industrialisation of activities to decrease
costs and increase efficiency; becoming 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 tocorporate oversight and monitoring, and follows strict standardsof discipline and caution. Airbus’ dedicated customer finance01
01

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 to the “Notes to the IFRS
Consolidated Financial Statements – Note 28: Sales Financing
Transactions”). Airbus’ customer financing transactions aredesigned to facilitate subsequent sell-down of the exposure to
the financial markets, third-party lenders or lessors.
In 2022, 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 themarket. 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 toprovide direct aircraft financing support as it deems necessary.
Management believes, based on its experience, that the level ofprovisioning protecting Airbus from default costs is adequate andconsistent with standards and practice in the aircraft financing
industry. See “– Risk Factors – Financial Market Risks – Sales
Financing Arrangements”.
Trading activity has not changed substantively and it continues
to consist mainly in (i) supporting new aircraft sales campaigns
through the trading (cradle to grave) and the placement of all
types of used aircraft (for cash or lease), (ii) assisting Airbus
entities/internal departments in finding/placing aircraft assets
on the market (iii) managing and assisting in the remarketingof inventory aircraft and (iv) acting as remarketing agent foran airline/financier to remarket its aircraft. Trading activity also
involves the sell down of leases, loans (secured and unsecured)and design of structured lease solutions with customers’ credits.

Operations
Industrial Organisation
Airbus’ industrial organisation reflects the end-to-end industrial
flow in single aisle and wide-body value streams respectively.
Production flows from the supply chain, the newly set up
Aerostructures companies in 2022, through constituent andmajor component (wing, forward and aft fuselage, and noseand centre fuselage) assembly through to final assembly inToulouse, Hamburg, Tianjin and Mobile. Aircraft are then handed
over to programme management for delivery to customers.
The industrial flow is secured by Quality and enabled by
Procurement as well as four transverse functions responsible
to provide the skills, standards and services necessary for (1)smooth industrial planning, logistics and transport, (2) integrated
manufacturing engineering, (3) eradication and prevention of
non-quality, and (4) highest operational excellence and soundperformance 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 andservices are delivered at the most competitive conditions, ontime, cost and quality. A dedicated Procurement Operations
team manages the delivery stream from the supply chain in
accordance with the agreed conditions to enable the production
flow.

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

The Quality First initiative launched in the second half of 2019
in Hamburg, with a strong focus on standards and quality gate
adherence, was further deployed in 2020 leading to improved
quality gate performance along both value streams. The Quality
function ensured the granting in 2022 of all necessary EASA
certification, POA, DOA, MOA and EN9100 accreditations
through compliance to our internal standards and processes
and associated audits.
This way of working along end-to-end value streams promotes
a strong sense of collaboration in the service of customers, aswell as reactivity and agility with the highest safety and quality
standards.
In 2022 Airbus served 84 customers with 661 deliveries, anincrease of eight percent compared to 2021. The delivery result
was less than targeted, due to the complexity of the challenging
operating environment including a complex supply chain situationand geopolitical challenges. Airbus continues to ramp-up to
deliver its backlog.
As part of that ramp up, Airbus is now enabling a bigger shareof A321 delivery capabilities with all of its assembly sites now
being A321 capable.
2022 delivery performance and rate evolution:–– A220 family: 53 A220 delivered. We continue to ramp-up andare still on track for rate 14 that we envisage by the middleof the decade;–– A320 family: 516 deliveries achieved. Airbus is progressing
towards a monthly production rate of 65 aircraft by the endof 2024 and 75 in 2026;–– A330: 32 deliveries achieved. The A330 monthly production
rate increased to around three aircraft as planned and Airbus
now targets to reach rate 4 in 2024;–– A350: 60 deliveries achieved. Following a feasibility study withthe supply chain, Airbus is now targeting a monthly production
rate of 9 A350s at the end of 2025.

Technology & Engineering
Headed by the Chief Technical Officer, Airbus Technology &Engineering is a global organisation leading and managing Airbus
product certification and continued airworthiness, as well as
supporting in-series production and in-service modifications,non-conformities and continuous improvements.
The Technology & Engineering organisation has the two-foldmission to:–– develop and deliver new aircraft architecture and design
regarding safety, manufacturability, operability, maintainability,
eco-efficiency and environmental compliance;–– ensure 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, andgenerate solutions on topics related to airframe, aircraft systems,

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flight physics, propulsion, cabin and cargo. The architect andintegration centre ensures, together with a team of senior
aircraft architects and the programme chief engineers, that a
consistent and multi-disciplinary approach is applied during
aircraft development. The strategy and transversal integration
centre ensures consistency between engineering and corporate
strategy, acts as the referent for configuration management,
process, methods and tools for engineering, and drives theforward looking transformation of the function.
The R&T Programme department applies a lean projectbased approach, tracked and managed using earned value
management, technology readiness levels and figures ofmerit. Technological collaboration with external researchcommunities and partners is encouraged and coordinatedthrough the department with technical and scientific experts.
The Company-wide integration of R&T technology and alignment
with institutional research partners is achieved through crossportfolio technology planning and roadmapping, giving an
exhaustive view of technology targets and investments. In
addition, Company-wide engagement for joint funding withpublic agencies is achieved through a common R&T Funding
contract management.

Airbus Canada, Regional Aircraft,
Aerostructures, Seats, Aircraft
Conversion
Airbus Canada Limited Partnership
Airbus Canada Limited Partnership (“Airbus Canada”) has been
established on 1 July 2018 following the transaction between
Airbus, Bombardier and Investment Quebec. In February 2020,
Bombardier exited the partnership. At the end of 2022, 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 withunmatched personal space and comfort.
In 2022, Airbus Canada has delivered 53 aircraft (compared
to 50 aircraft in 2021) and has a backlog of 527 aircraft as ofDecember 2022. Through the end of December 2022, 246 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).

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

ATR

Airbus Atlantic

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 1,210 people. Since the startof the programme in 1981, ATR has registered net orders for
1,784 aircraft (516 ATR 42s and 1,268 ATR 72s).

As of 1 January 2022, Airbus Atlantic is a wholly-owned
subsidiary of Airbus, gathering resources and means of Airbus
Nantes and Montoir-de-Bretagne plants, and STELIA Aerospacesites worldwide.

In 2022, following the impact of the coronavirus crisis on ATR
customers’ markets, ATR delivered 25 new aircraft (comparedto 31 in 2021) and recorded net firm orders for 13 new aircraft(compared to 22 in 2021). As of 31 December 2022, ATR had
a backlog of 138 aircraft (compared to 167 in 2021).
By the end of 2022, ATR has delivered 1,646 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 11 ATR 72-600F to FedEx Express (onein 2020, five in 2021 and five in 2022).
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
worldwide presence also includes representative offices in
Beijing and Tokyo.
ATR Asset Management addresses the market for second-handaircraft by assisting in the placement and financing of used andend-of-lease aircraft.

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

01
01

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 new world n°2 player in aerostructures
market, n°1 in pilot seats and ranks in the top 3 for premium
passenger seat marketed under the STELIA Aerospace brand.
Positioned at the heart of Airbus industrial system, Airbus
Atlantic aims at delivering state-of-the-art quality and operational
excellence to Airbus and to aircraft manufacturers such as
Dassault Aviation, Bombardier and ATR, as well as to worldwide
airlines with its premium passenger seat range.
Airbus Atlantic is an essential part of Airbus’s value chain andplays a key-role in the whole aerostructures’ supply-chain withmore than 500 suppliers on flying products and more than 2,000
on general procurement products.
Relying on its aerostructure, cabin interior and pilot seat divisions:–– Airbus Atlantic has a wide range of metallic and composite
aerostructure capabilities, from Build-to-Print to Design &Build solutions;–– Airbus Atlantic is one of the few companies in the world able
to deliver complete and fully equipped and tested aircraft
sections (“Plug & Fly”), integrating hydraulic and electric
systems;–– Airbus Atlantic 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;–– Airbus Atlantic provides pilot seats, and offers support fromdesign to production, including after-sales service;–– Airbus Atlantic’s mission is to drive competitiveness withthe flexibility, speed, simplicity and agility of an aerostructure
Tier-1.
The creation of Airbus Atlantic is a strategic project for Airbus,
contributing to its purpose to pioneer sustainable aerospace fora safe and united world.

Airbus Aerostructures and Premium
Aerotec Industry
The two Aerostructures Assembly companies Airbus
Aerostructures and Airbus Atlantic are created inside the Airbus
industrial system. The Airbus Aerostructures organisation isleveraging the Company’s competencies globally, keeping
strategic flexibility for resource allocation, building aninternational company culture. The organisation of Airbus
Aerostructures 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 Premium Aerotec GmbH
which became the body for the new holding structure in
Germany with two companies, Airbus Operations GmbH and
Airbus Aerostructures GmbH. Premium AEROTEC GmbHis planned to be renamed Airbus GmbH in the first half of2023. There will be a review with regards to the possible

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

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 the commercial aircraft parts management.
Airbus Aerostructures stands for highly efficient and sustainableaircraft production. With around 10,000 employees, Airbus
Aerostructures combines technology and innovation leadershipto pioneering efficient and sustainable aircraft production andto make zero-emission flight a reality. Airbus Aerostructures
includes four production sites in Germany: the headquarters
in Hamburg with three other plants in Nordenham, Bremen
and Stade where work goes on today on the aerostructuresof tomorrow’s aircraft.
Premium AEROTEC Industr y delivers commercial andmilitary aircraft structures and detail parts and is a partnerin 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
the Eurofighter “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 titanium or aluminium.

Elbe Flugzeugwerke GmbH – EFW
EFW combines various aviation and technology activities
under a single roof: development and manufacturing of flat
fibre-reinforced composite components for structures andinteriors, the conversion of passenger aircraft into freighter
configuration, maintenance and repair of Airbus commercial
aircraft as well as engineering services in the context ofcertification and approval.

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 center 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 2022, in total 22 A330P2F have been re-delivered,after a modest start of this programme, the customer demandfor conversions of this wide body aircraft increased remarkably
during 2021 and over the past year, and has been supersedingby end of 2022 the conversion requests concerning the latest
single aisle programme of A321P2F & A320P2F which wasentering 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
has been delivered in September 2020 to launch customer
Vallair entering into service in October of that year and is sincethan operated by Qantas for Australia Post.
In 2022, nine further A321P2F and the first A320P2F have been
re-delivered.
By the end of 2022 EFW had secured well above 90 A321P2F
and above 100 A330P2F orders.
EFW is increasing the conversion capacity such that it ispossible to induct over 60 aircraft (approximately 30 A330s andA321s) for conversions per year for the Airbus P2F programmes
by 2024 meaning to treble capacity compared to 2021.

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

1.1.3

Helicopters

Airbus Helicopters is a global leader in the civil and militaryrotorcraft market, offering one of the most complete and modern
range of helicopters and related services. This product range
currently includes 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.

Ambition & Strategy
Airbus Helicopters continues to execute its ambition to leadhelicopters and pioneer new VTOLs for a sustainable future.
The strategic priorities of Airbus Helicopters are:–– Customer Loyalty: Airbus Helicopters continues to deliver the
best-in-class products and services to grow in the value chainof its customers, continuously improve customer satisfaction

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and speed up digital and technological transformation ofservice offering;–– Innovation & Sustainability: Airbus Helicopters continues
to build a sustainable innovative eco-system, mature technobricks for multiple platforms, develop collaborative innovations
for eVTOL and deploy demonstrators and disruptive concepts;–– Defence & Security: Airbus Helicopters continues to act asa global defence & security leader through a robust military
strategy product policy, as a preferred partner to homecountries, reinforcing military programmes’ attractivenessto address new markets and seizing sales campaigns
opportunities to continuously grow its military market share.

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

Transformation
The Company remains focused on aviation safety, quality andalso on performance with lead time reduction to continuously
improve customer satisfaction.
Airbus Helicopters continues to refine and execute its
transformation plan in order to be sustainably performant
and agile to maintain its competitiveness in the face of market
evolutions, inflation and retain its ability to invest in 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.

Commitment to Innovation
In 2022, Airbus continued to invest in product development for
both the civil and military markets. The H160 entered into service
in Japan, Brazil, and in France and with orders from all major
mission segments, including the French version of the H160M,
the helicopter’s complete portfolio of mission capabilities are
currently in development. On the military side, the Company has
focused on the development of the H175M and expanding themission capabilities of the H145M, notably in the field of mannedunmanned teaming (MUM-T). This technology allows unmanned
platforms to be operated from a piloted helicopter. Airbus hasdeveloped a solution for this task and has demonstrated its
capabilities with unmanned rotor and fixed wing vehicles ofdifferent shapes, sizes, and from different manufacturers.
Important goals in the last two years were to reduce the crew’s
workload (focus on keeping the “original” crew-concept withtwo members) and assure that the communication with different
kinds of datalinks between the helicopter and the UAV can berealised. The technology has reached a level of maturity where
it can be offered to military and parapublic customers.
Another major development launch for Airbus Helicopters camewith the Tiger MkIII contract signed by France and Spain. The
new standard for the attack helicopter will allow the helicopter tobe upgraded in order to be connected to the digital battlefield,
enabling it to perform manned-unmanned teaming as well asshare tactical information in real time. It will also provide an
unrivalled range of weapons (turret gun, laser-guided rockets
and missiles) and renewed detection and targeting capabilities.
The integration of state-of-the art avionics, which will also equip
the H160M, will reduce the crew’s workload and enable them tobe fully focused on mission execution.
In June 2022, Airbus Helicopters was named coordinator of the“EU Next Generation Rotorcraft Technologies Project” (ENGRT)
funded by the European Defense Fund (European Defence Fund
2021 Calls for Proposals). ENGRT will pave the way for the next
generation of military rotorcraft in Europe. ENGRT is a Research
and Technology project, the first phase will focus on the conceptof operations with battlefield simulations. Concept studies
and pre-design of alternative rotorcraft platforms will also be
performed. The contract was officially signed in December 2022
and work kicked off right away. Seven nations are directly involvedin the project: France, Germany, Spain, Italy, Greece, Finland andthe Netherlands. Other nations are indirectly involved through aparticipation of their industry: Sweden, Romania and Norway.
Airbus also furthered the development of its own unmanned aerial
system (UAS), the VSR700, which began trialling autonomous
take-off and landing capabilities at sea. Trials were conducted

01
01

using an optionally piloted vehicle (OPV) based on a modified
Guimbal Cabri G2 equipped with the autonomous take-off andlanding (ATOL) system developed for the VSR700. At the endof the year, the UAS began flight testing over sea, a key step in
preparing its upcoming demonstration onboard a French Navyfrigate.
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 using SAF
for its own training and flight tests in France and Germany. It
performed the first flight of a helicopter, an H225, powered solely
by SAF on both engines in the first half of the year.
At the Airbus Summit, Airbus presented a new demonstrator, theDisruptiveLab, aimed at testing technologies that could reduce
CO2 emissions by as much as 50%. Joining the FlightLab andRacer which performed its power on at the end of the year, thetrifecta of demonstrators illustrate Airbus’ R&T strategy to taketechnologies to a higher technology readiness level in order to
optimise subsequent development cycles.
The DisruptiveLab will evaluate a new aerodynamic architecture
intended to reduce fuel consumption, as well as pursuing theimplementation of hybridisation with a fully parallel hybrid
propulsion system that enables the battery to be recharged
in-flight. The new architecture of the DisruptiveLab features anaerodynamic aluminium and composite fuselage, specificallydesigned to reduce drag and thus reduce fuel consumption. The
blades are integrated into the rotor in a way that allows for a morecompact rotor head which reduces drag and therefore improvesenergy efficiency while lowering the perceived noise level. Its
lighter rear fuselage incorporates a streamlined Fenestron tailrotor that also contributes to improved performance.
The DisruptiveLab demonstrator is part of the French Council
for Civil Aviation Research Conseil (CORAC)’s roadmap andhas been partly financed by the French Civil Aviation Authority(“DGAC”) in the frame of the French Stimulus plan, which ispart of the European Plan, Next Generation EU, and the France
2030 plan.
In 2022, the Company also made significant progress on thedevelopment of its fully electric vertical take-off and landing
prototype, CityAirbus NextGen. Airbus selected all of its partners
for the structural features of the aircraft, joining forces with Spirit
Aerosystems to produce CityAirbus NextGen’s wings, MagicAll
to provide its electrical power distribution units, as well as KLK
Motorsport and Gerg GmbH, who will supply the prototype’s rearstructure. This secures all necessary partners for the prototype.
The Company is now preparing the next phase of CityAirbus
NextGen’s, which will make full use of its brand new advanced
air mobility (AAM) dedicated test centre, currently in construction
at the site in Donauwoerth.
Beyond the vehicle, Airbus set up the first ever working
ecosystem of its kind in Germany, with the Air Mobility Initiative,that gathers more than 30 industrial and institutional partners
to look at advanced air mobility through the aircraft, airspace
management and infrastructure lenses. By ramping up efforts
to create comprehensive ecosystems to support air mobility
services, Airbus is making sure that the first feeder cases thatare foreseen with CityAirbus NextGen are tailored to meet
communities’ needs, from essential missions in the medical

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

services sector, to passenger transport shuttles to ecotourism
activities. Last year, this expertise was extended to a global
level, by partnering with major aircraft and helicopter operatorssuch as Ecocopter, ITA Airways and Hiratagakuen, across Latin
America, Asia Pacific and Europe.

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
addition of ZF Luftfahrttechnik to Airbus Helicopters’ portfolio
at the end of 2022 is a prime example of how the Company isbroadening its range of MRO capabilities, securing additional
competences in the area of dynamic systems notably for the
H135, H145, and Tiger programmes, and strengthening its
service offering for customers including key partners like theGerman Bundeswehr.
2022 saw the Division continue its work on customer centric
solutions that cater to individual customers’ needs by launchinga new HCare offer designed to provide customers with thebest combination of services according to their profile and fleet
make-up.
Simplified to just three flexible solutions, HCare is now composedof HCare Initial, HCare In-service, or a combination of the two,
HCare Lifetime. For each, customers can opt for one out of
three levels of material management performance. Still available
for specific fleets will be the HCare First package for Airbus
Corporate Helicopters (ACH) aircraft and HCare Classics forthe out-of-production legacy fleet (H120, Dauphin, Puma andGazelle).
HCare Initial is tailored for customers starting operations with a
new Airbus helicopter or taking delivery of a new aircraft type in
their fleet. It provides the best set of services for a successful entry
into service. HCare In-service is for customers already operating
an Airbus helicopter type. Matching services to operators’ needs,
it optimises the aircraft’s maintenance, health and usage, andlongevity. HCare Lifetime is for operators opting for an endto-end package and long-term collaboration with Airbus, fromentry into service up to the aircraft’s end of life. This global
support contract aims to maximise the aircraft’s performanceand sustained value over time, while enhancing safety andproviding successive, sustained support. Customers receive
daily care and accompaniment at all steps of their operations.
For the material management portion of each contract,customers select the commitment level. Guaranteed repair
secures R&O Turn-Around-Times by contract to improve
maintenance planning with flexible payment conditions. Bythe-hour offers a smooth distribution of expenses and budget
anticipation. By-event requires payment at the time of the repair
or the overhaul. Part availability commits Airbus Helicopters on
parts delivery lead times while giving the operator a precise viewof the necessary maintenance budget; for current customers,
it resembles the by-the-hour contracts many are familiar withcovering scheduled and unscheduled maintenance events. The
part availability solution is built upon fixed hourly rate payments
to make maintenance expenses predictable. Fleet availability,
the third level of commitment, augments part availability withmaintenance delegated to Airbus for optimal aircraft availability,
based on fixed hourly and monthly rates.

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Global support contracts met with continued success in 2022
both on the civil and military markets. On the military side, Airbus
signed a Contractor Logistics Support (CLS) contract, the largest
helicopter performance-based support contract ever managed
by Airbus, with the US Army to provide spare parts, material, andengineering support for the Army’s entire UH-72A and UH-72B
Lakota fleet of 482 utility and training helicopters. The Company,as part of NHIndustries, also signed an innovative NH90
Operational Support (NOS) contract, which will be performancebased, and will see both France and Germany delegating a majorpart of their logistics and maintenance activity to NHIndustries,
enabling them to focus on their operations.
On the civil side, highlights include The Helicopter Company
signing for an HCare In-Service contract to cover their fleet of 20
five-bladed H145 helicopters as well as an additional In-Service
contract for their six ACH160s.

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

Market Drivers
According to market forecasts produced by Airbus Helicopters,
around 20,000 civil helicopters and 14,000 military helicopters
are expected to be built globally over the next 20 years.
The helicopter market started to recover in 2021 but 2022
brought a year of multiple disruptions, including high inflationand the appreciation of the US dollar, and the war in Ukraine
impacted the availability of goods, materials and energy supplies.
Due to its existing mission segment diversity, the helicopter
market (both platforms and services activities) is expected tobe resilient through the coming decade, but is expected toremain challenging due to persistent economic uncertainties
lengthening the sales cycle in particular in parapublic and military(budget allocation postponement or reduction) and delayed
growth of emerging markets (especially in Asia).
Helicopters sold in the civil and parapublic sector, where Airbus
Helicopters is a leader, provide transport for private owners
and corporate executives, offshore oil operations, diverse
commercial applications and state agencies, including coast
guard, police, medical and fire-fighting services. The civil andparapublic market has seen a good recovery from the COVID-19
pandemic reaching almost at pre-pandemic levels, even though
it has not yet completely recovered (584 units and € 2.6 billion in1. Information on the Company’s Activities /1.1 Presentation of the Company

bookings). The market is driven by a private and business aviation(“PBA”) increase and a stable Aerial work mission segment.
The Energy segment is also showing the first signs of rebound.
Airbus Helicopters expects the civil and parapublic market toremain challenging in the short-term but believes that the demand
over the next 20 years will be driven by large replacement needsfrom advanced economies and by growth from emerging
countries (especially in Asia still largely under equipped).
Airbus Helicopters’ preliminary market data indicates that in 2022,
worldwide deliveries of civil and parapublic turbine helicopters offive seats and above stood at 482 units (486 in 2021).
Demand for military helicopters and related services is mainly
driven by budgetary and strategic considerations, and theneed to replace ageing fleets. Airbus Helicopters believes thatthe advanced age of current fleets, the emergence of a newgeneration of helicopters equipped with integrated systems andthe ongoing introduction of combat helicopters into many nationalarmed forces will contribute to increased military helicopter
procurement in the medium term. Nevertheless, demand fromthe military sector has historically been subject to large yearto-year variations due to evolving strategic considerations,and may be limited, due to budgetary constraints on public
spending in some regions like Western Europe and Middle
East, while other regions like Asia Pacific or Eastern Europe
are expected to continue to grow. The military market has
shown a rebound in units in 2022, but the increased economic
difficulties, the saturation of the Western countries markets, aswell as priorities given to operational needs (e.g., spare parts,
availability improvement), have resulted again in a low military
market in 2022. With 498 units booked (€ 7.9 billion), the military
market continues to experience lower bookings than before the
COVID-19 pandemic. According to Airbus Helicopters’ market
data, worldwide deliveries of military turbine helicopters hasreached 492 units in 2022.

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01

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 55% in units booked in 2022, followedby Bell and Leonardo with respectively 16% and 12%.
Airbus Helicopters’ main competitors in the military sector
remain Sikorsky, Boeing and (now to a lesser extent) Russian
Helicopters, due to large captive markets and strong politicalsupport for export, and also Leonardo, especially in terms ofvalue.
The military sector is highly competitive and is characterisedby major restrictions on foreign manufacturers’ access to thedomestic defence bidding process (i.e. US, China and Russia).
Airbus Helicopters’ performance on the Military market wasboosted by the Tiger MkIII upgrade bookings in France andSpain reaching a 18% booking share in units. The Division willcontinue to focus on large military campaigns in 2023.

Customers
More than 3,100 operators currently fly Airbus Helicopters’rotorcraft in over 150 countries. Airbus Helicopters’ principal
military clients are Ministries of Defence (“MoDs”) in Europe,Asia, the US and Latin America. In the civil and parapublic sector,
Airbus Helicopters has a leading market share in Europe, theAmericas and Asia-Pacific.
With 52% of the worldwide market share-based on deliveries in
2022, the versatility and reliability of Airbus Helicopters products
have made them the preferred choice of the most prominent
civil and parapublic customers (turbine helicopters of five seats
and above).

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

H125 “Écureuil” / H125M “Fennec”
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
Civil Utility(2), Military Transport / SAR, Oil & Gas

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

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 singleengine, light twin-engine, medium and medium-heav yhelicopters, which are adaptable to all mission types based on
customer needs. To maintain and strengthen its competitiveedge 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 performancecer tified in 2021 by EASA and FA A) in the field of
performances and safety in order to meet customer’s
requirements;–– preparing the future H generation with major upgrades
and new 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 andH225M respectively derived from the H145 and H225) as wellas purely military platforms developed for armed forces (theNH90 and the Tiger).

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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 the Netherlands, has been jointly developed by Airbus
Helicopters, Leonardo of Italy and Fokker Services of theNetherlands 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%. There were 28 NH90 deliveries in 2022, for a
cumulative total of 496 deliveries as of the end of 2022. The
NH90 fleet has accumulated ~370,000 flight hours.
On the Combat segment the Mark3 upgrade of the Tiger
helicopter will introduce state of the art mission systems,
including manned-unmanned teaming, new avionics and next
generation of weapons (anti tank / air to ground missile,laser guided rockets) in order to address future requirementsof the French and Spanish armies. A cumulative total of
185 Tigers have been delivered by year-end. The Tiger fleet
has accumulated more than ~170,000 flight hours.
Airbus is also a major contractor to the US Army, having beenchosen to supply the service’s UH-72A & UH-72B Lakota
helicopter. 13 UH-72B were delivered in 2022, for a cumulative1. Information on the Company’s Activities /1.1 Presentation of the Company

total of 497 (479 UH-72A & 18 UH-72B) deliveries to the US
Department of Defense for operation by US Army and Army
National Guard units, the Navy and foreign military sales
buyers.

Customer Services
With more than 3,100 operators in over 150 countries,
Airbus Helicopters has a large fleet of more than 12,000 inservice rotorcraft to support. As a result, customer service
activities to support this large fleet generated 45% of Airbus
Helicopters’ revenues for 2022.
Airbus Helicopters’ customer service activities consist
primarily of maintenance, repairs, spare parts supply, training
and technical 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
based on site specialisation, the introduction of an improved
industrial architecture and the progressive deployment offlexible lines is almost complete.
The last internal transfer of activity in the context of the site
specialisation is ongoing. By concentrating the production
sites in specific helicopter sections or technologies, thecompetitiveness of our operations will be boosted and theoverall performance significantly increased, while improving
the factories’ resilience to market fluctuations through thecontribution of each site to the entire product range.
Alongside the site specialisation, the introduction of an
improved industrial architecture is deployed, with major subassemblies produced, assembled and tested in parallel, thus
shortening the industrial cycle. The reduction of the lead-time,in particular in the final assembly lines, will decrease theinventories and shorten the delivery time to our customers.
Also, the ability to adapt quickly to market evolutions is key.
The flexibility of the production lines to assemble different
products is being developed to adjust the industrial system
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 newindustrial model. 2023 will be marked by the entry into
service of the “one log” hub in Albacete, Spain. The hub will
enable the rationalisation of the logistic flows, moving from01
01

a “point to point” concept with spread flows, to a global
logistics approach that will contribute to the competitivenessof operations.
In parallel to the new improved industrial set-up, theOperations organisation is increasing the focus on thequality and the operational performance in key helicopter
components through the Centres of Excellence, for example
Rotors and Transmissions. The Centres of Excellence willfederate all departments in the Helicopters organisation– from Engineering, through Procurement & Supply chain,
Quality and Production – to deliver best in class safety, quality
and performance.
The global industrial footprint of Airbus Helicopters continues
to be developed to improve our product cost in the “make”
perimeter and provide opportunities for the rationalisationof our supply base. While keeping more complex activities
in the main sites in France, Germany and Spain, simpler
work packages are allocated to the Divisions’ sites in “bestcost countries”. In 2023, the facility in Querétaro, Mexico,
specialised in aluminum machined parts, will increase theirworkload. Additionally, the Division’s new facility in Gyula,
Hungary, inaugurated in 2022 and specialised in hard metals
machining, will deliver its first parts in 2023.
S i m u l t a n e o u s l y to o u r i n te r n a l i n d u s t r i a l s y s te mcompetitiveness, the Operations strategy keeps a strong
focus on the extended enterprise. Since the pandemic, thesupply chain monitoring and risk management has beenstrengthened, increasing the capacity to anticipate andmitigate potential disruptions and secure business continuity.
The sourcing strategy is being implemented, reshaping
our supply base to secure its current and future industrial
performance, competitiveness and maturity, as an essential
part of the overall Helicopters industrial ecosystem.
Reducing the environmental footprint of the industrial
activities is a paramount axis of the Operations strategy.
Numerous projects supported by important investments arebeing developed in all the sites, focusing on the reduction of
our CO 2 and VOC emissions, energy and water consumption
and also in the generation of waste.
Finally, the Operations strategy is paying a 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 productionof our helicopters, enabling a major reduction of ourindustrialisation cycles, raising our efficiency, setting a new
standard of quality while safeguarding our Cybersecurity.

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1.1.4

Defence and Space

Airbus Defence and Space is a reliable partner to commercial
and governmental customers worldwide, whose products andservices ensure mission success across Air, Land, Sea, Space
and Cyber domains:–– Military Air Systems (1) designs, develops, delivers andsupports manned and unmanned military air systems andservices. It is the leading fixed-wing military aircraft supplierin Europe, and one of the market leaders for combat, mission,transport and tanker aircraft worldwide. Key products include
the Eurofighter Typhoon, the A400M, the A330 Multi Role
Tanker Transport (“MRTT”), the C295 and the Eurodrone.
Additionally, focusing on the future of air power, Military Air
Systems is 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 and commercial
customers. It also manufactures orbital and space exploration
systems. Space transportation capabilities (comprisinglaunchers and services) are offered via ArianeGroup, a 50/50
Airbus-Safran joint venture;–– Connected Intelligence elaborates specific solutions for
defence, governmental, civil and commercial customers
under four main business clusters: Intelligence, Secure
Communications, Cyber Security and Secure Land
Communications.

Strategy
The strategic purpose of Airbus Defence and Space is tosupport our customers to defend our democracies, prevent
crises, protect life and restore damaged communities andecosystems, providing safety and security and respecting thehighest standards of human rights.
To achieve this, the company is applying its strategy acrossthree main segments:–– Military Air Systems: 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 shape and addressa future secure, upgradeable, and dynamic network alongwith Command and Control architecture requirements, while
continuing to evolve existing platforms and capabilities for longterm competitiveness (e.g. Eurofighter Typhoon, A330 MRTT,
A400M, C-295, aircraft in 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 and a growing local footprint. In
parallel, Airbus Defence and Space is developing end-to-end
solutions and accelerating new products and services tostrengthen its position across the space value chain. It is also
actively working on sustainability solutions, such as climatechange monitoring and the removal of debris from the spaceenvironment. 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: Airbus Defence and Space provides
its defence and security stakeholders with the trusted andsecured information they need to be “always on” and takethe right decision, at the right time and the right place.
Digitalisation is at the heart of platforms and systems ofsystems, and therefore a key enabler to unlocking greater
value from the company’s portfolio while providing new datadriven services and business models. The Division continues
to provide satellite imagery, intelligence capabilities, as wellas end-to-end secure and cyber resilient connectivity acrossspace, terrestrial and maritime domains.
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 deliveryof defence products in accordance with governmental 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 withExport Control laws and regulations including the US, EU andany applicable national regulations, as well as compliance withsanctions and embargoes legislation. Furthermore, suppliers
shall 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 four commitments of the Airbus sustainability strategy
and plays a key role in how Airbus Defence and Space conducts
its operations. The company developed a human rights policy
and the attention is focused in the first instance on the defence
portfolio, where a multi-functional and cross-divisional team isin charge of reviewing the integration of risk-based human rights
due diligence through existing processes and tools.
Airbus Defence and Space is not involved in the development,
production or support of banned weapons and it has in placedetailed policies and procedures to undertake due diligence on
the sale of defence products. For further information, see “– 1.2
Non-Financial Information”.

(1) On 1 April 2022, the Company’s Defence and Space Division began the integration of the programme lines Unmanned Aerial Systems and Military Aircraft into asingle business line. The name of the new programme line is Military Air Systems. This change will be reflected in the Company’s financial reporting from 2023.

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

MarketAirbus Defence and Space is active in governmental, institutionaland commercial markets. As a general trend, defence budgets
are forecasted 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 a fourth round of collaborative
Permanent Structured Cooperation (“PESCO”) projects, thecalls for proposal by the European Defence Fund (“EDF”),
the Eurodrone contract signature with OCCAR (Organisation
Conjointe de Coopération en Matière d'Armement), and thesignature of the FCAS Demonstrator Phase 1B. In addition,
European Union Member States have defined a number ofprojects in the frame of the EU Recovery and Resilience Facility(“RRF”) that aim at building and strengthening space capabilities.
Together, these initiatives provide sales opportunities in Europe
and beyond.
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 to benefit
from global growth in defence expenditure.

Military Air Systems
Customers
The Military Air Systems programme line with its combat aircraft,military transport mission aircraft and unmanned aerial systems(“UAS”), along with related services, mainly supplies the public
sector, specifically armed forces.
Customer relationships in this segment are characterised by theirlong-term, strategic nature and long decision-making cycles.
Once a contract is signed, its life span, including the services
business, often lasts for decades. Beyond a strong footholdin home countries, the customer base is increasingly global,
in particular due to the success of the A330 MRTT and C295
programmes.
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
Spain joining later that year. Over the past three years, FCAS
has been progressing with the execution and achievement of
the Joint Concept Study and the Demonstrator Phase 1A whichlead to the signature of the Common Operational Requirements
Document (“CORD”) by the three Air Forces in September 2021.
Most recently, the FCAS Demonstrator Phase 1B was awarded
to Airbus and its industrial partners (i.e. Dassault Aviation, Indra,
Eumet, others), leading to the contract signature on 16 December
2022, and covering the work on the demonstrator and its
components for about three and a half years.
Airbus military aircraft such as A400M, MRTT, Eurofighter andother manned and unmanned platforms will play key roles in
the FCAS ecosystem.
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),

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01

and OCCAR on behalf of the nations (Germany, France, Spainand Italy) on 24 February 2022. This will lead to the delivery of
20 Eurodrone systems, along with an initial five-year packageof in-service support.
Beyond the Eurodrone, Airbus’ unmanned aerial systems help
solve challenges for commercial, government and militarycustomers alike. Institutional and government customers arerecognising the benefits of UAS for public services. An increasing
number of applications require UAS solutions in areas such as
law enforcement, fire-fighting, humanitarian assistance anddisaster relief, border protection or emergency services. Civil
and enterprise customer interest for UAS continues to grow, withthe main focus being on smaller and tactical UAS.
Some customers may find a service and leasing model more
adapted to their specific needs. UAS services offer further
growth potential with different levels of flexibility and customer
involvement. 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.

Competitors
The market for military aircraft is dominated by large- andmedium- sized American and European companies capableof complex system integration. Among the competitive factors
are affordability, technical and management capability, 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 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.
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 and Turkish
Aerospace Industries. The market witnesses the emergence ofnew, smaller, companies worldwide, addressing specific and/or national requirements. There is room and need for synergies
and partnerships between smaller and larger UAS companies.

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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 Military Air
Systems and are continuously growing in line with the deliveriesof 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 asystem of systems combining a manned New Generation Fighter
teaming with unmanned Remote Carriers, collaborating with
upgraded existing 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.
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 has signed a letterof intent in 2021 with an option for four additional units.

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Type Certificate and Initial Operating Clearance were achievedin 2013. Since then, 115 units have been delivered to eightnations as of 31 December 2022. The A400M has already been
deployed in operations since 2014, accumulating more than
140,000 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) andunder-wing refuelling pods and has demonstrated wet contacts
with the Automatic Air-To-Air refuelling (A3R) capability, for which
certification by the Spanish National Institute for Aerospace
Technology (INTA) was achieved in 2022. At the end of 2022, 67
A330 MRTT have been ordered by 14 national operators (morethan 94% market share over the past ten years, excluding the US),with 56 platforms already delivered and operating worldwide,
accumulating more than 250,000 flight hours in operation.
In 2021, the Company answered a formal Request for Information
for the KC-Y programme of the United States Air Force inpartnership with Lockheed Martin, aiming at the replacementof the US Air Force tankers.
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 2022, 680 Eurofighter Typhoon aircraft had beenordered by nine customers (UK, Germany, Italy, Spain, Austria,
Saudi Arabia, Oman, Kuwait and Qatar). This includes the order1. Information on the Company’s Activities /1.1 Presentation of the Companyof 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 2022
a total of 584 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. 280 orders havebeen recorded for the C295 by 39 operators at the end of 2022,
including the historical order by the Indian Air Force in 2021 for
56 C295 to replace their legacy fleet.
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. 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.
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 military

01
01

and 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.
Military Air Systems Services. Airbus Defence and Space
offers and provides 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, maintenance and upgrades, along with training andflight hour services. For example, the A330 MRTT contract with
the UK Ministry of Defence through the Air Tanker consortium
includes the provision for all necessary infrastructure, training,
maintenance, flight management, fleet management and groundservices to enable the Royal Air Force to fly air-to-air refuelling
and transport missions worldwide.
Services support legacy aircraft beyond those types currently in
production at Airbus Defence and Space, conducting upgrade
programmes 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 German Air Force
operations in Mali and FRONTEX for surveillance operations in
the Mediterranean Sea. With more than 10 years experience,over 60,000 flight hours and 98% system availability, these
services have demonstrated a proven and unmatched success.

Airbus / Universal Registration Document 2022

53

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

Space Systems
Commercial Sector: Telecommunications
Satellites, 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
for telecommunications 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.

Governmental Sector: Satellites, Space
Infrastructure, Launchers, Deterrence

The commercial geostationary (“GEO”) telecommunications
satellite market continues to show signs of recovery. On thecommercial Low Earth Orbit (“LEO”) telecommunications
constellations, the demand for small satellites has been lower in
2022 compared to prior years. However, an increasing interest
is currently being noted. The business model is challenging
due to the high upfront capital expenditure. Airbus is activein this market including its direct involvement in the Airbus
OneWeb Satellites joint venture, and has the ambition to playa key role in the new EU Secure Satellite Constellation, known
as Infrastructure for Resilience, Interconnection & Security bySatellites (“IRIS2”).

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 2022
for the development of the Earth Explorer FORUM satellite (Farinfrared Outgoing Radiation Understanding and Monitoring).

In 2015, Airbus OneWeb Satellites was created, an equally
owned joint-venture between Airbus and OneWeb, which
is building a global high-speed internet constellation ofsatellites for its sole customer, OneWeb. This participation isentrepreneurial in nature and led to a full re-think of satellite
design and manufacturing to produce at competitive costs
and on relatively short timelines. After a change in ownershipin 2020, the company’s lead investors are now the Indian
Bharti Group, the UK government and Eutelsat. The Ukraine
crisis in 2022 had a considerable impact on the constellation
deployment as Soyuz launchers ceased to be available for use
and one batch of satellites still remains at the Baikonur launchsite. Nevertheless, three launches took place in 2022, bringing
the constellation coverage to almost 80%, with full global service
entry due in 2023. Moreover, OneWeb has clear ambitions tocreate a second generation constellation.
With the new Bartolomeo Service, Airbus also offers onestop-shop access to flying payloads in Low-Earth Orbit on theoutside of the International Space Station (“ISS”), which means
easy access to Space for both commercial and institutionalcustomers. The first launch is expected in 2023.
The market for commercial launch services continues to evolvewith ongoing competitive pressure. Arianespace (a subsidiaryof ArianeGroup) provides a complete range of launch services
with the Ariane and Vega launchers. Competitors for launchservices include SpaceX, United Launch Alliance, Rocket Lab(for smaller payloads) and national space agencies.
Due to the phasing out of Ariane 5, the ongoing investigation into
Vega-C following the launch failure in December 2022 and thedelay of the first flight of Ariane 6, 2023 will be a transition year
due to limited launch capacity. However, the accessible market
to Arianespace for commercial launch services for geostationary
satellites is expected to be at around 15-20 payloads per year,
decreasing both in mass and in number of launchers comparedto the equivalent market five-six years ago. The commercial
market also sees the rise of large constellations for global
connectivity, with the completion of OneWeb first generation,
the launch of prototypes for the Kuiper constellation which is

54

expected to commence service delivery in the second partof this decade, and other new projects both in the US and inEurope.

Airbus / Universal Registration Document 2022

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.

In November 2022, the ESA Ministerial Council concluded withthe announcement of an investment of almost € 17 billion, an
increase of 17% from the last Council at Ministerial level, a clear
recognition of the importance of space, especially in the current
economic and geopolitical context. Airbus Defence and Space
welcomes this decision and stands ready to support ESA, who
remains one of its main customers and partners.
There is also significant export demand for EO systems. At
the end of 2022, Airbus signed a contract with Poland for theprovision of two very high resolution S950 Optical satellites andaccess to Pléiades Neo imagery from 2023. The export market
is expected to continue growing over the medium-term driven
by the demand from new governmental operators on top of thereplacement of existing assets.
Airbus Defence and Space is building on its re-establishedposition on the navigation side, as it continues to work in the
manufacturing of six Galileo second generation satellites for
Europe’s navigation system. It also achieved in 2022 a key
milestone on the EGNOS V3 navigation overlay system, critical
for the aircraft industry.
The space exploration segment comprises scientific missions,with both crewed and uncrewed space systems, mainly used
for solar system exploration. Demand for space exploration
systems originates solely from publicly funded space agencies,
in particular from ESA, NASA, and JAXA (Japan). Such systems
are typically built in cooperation with international partners.
The predominant field of activity on this segment is the continuing
support to the operations of the ISS, together with vehicle andequipment development programmes and services. Airbus
Defence and Space is the prime contractor for the Orion
European Service Module (“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. 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.
Given the increasing focus on defence in Space since the outsetof the Ukraine war, there is growing attention to the militarisationof Space. Airbus Defence and Space will support nations byproviding connectivity, information superiority and in-space
operations for defence.

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

On the military customer side, observation satellite demand has
increased in recent years. There is an increasing demand in thegovernmental satcom market in France, Germany, Spain andUK, as well as internationally. In addition to the players in thecommercial sector, competition includes OHB in Germany, IAI
in Israel, Melco in Japan and ISSR and Energia in Russia. Within
the European Union, the development of the IRIS2 constellationin 2023 and beyond will present significant opportunities. Airbus
took the lead in a related study in 2021 and 2022.
The equipment segment has benefited from a stable European
market, with potential growth to come from developing spacecountries as well as the US.
ArianeGroup is the lead contractor for Europe’s Ariane 5
and Ariane 6 launcher families, responsible for designing,
manufacturing and marketing of launch services through its
subsidiary, Arianespace. It is also responsible for the research,
design, development and production of missiles for the French
nuclear deterrent force (French Strategic Oceanic Force).

Products and Services
Human space flight. Airbus has played an important rolein human spaceflight, starting with the Spacelab reusable
laboratory flown on the US Space Shuttle, followed by thedevelopment of the Columbus module and the AutomatedTransfer Vehicle (ATV) spacecraft for the ISS, and most recently
the addition of the Bartolomeo payload hosting platform, whichis 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 first of which flew on NASA’s Artemis I missionin 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 is leading the transformation of thetelecommunications market with its revolutionising OneSat
reconfigurable satellite that marks a step change, from both amanufacturing and operational point of view. OneSat enables
Airbus to offer customers a market-enabling solution at reduced
market risk, cost and time to orbit. The company has seven
OneSats under contract, three for Inmarsat for the first of theirnext generation of geostationary Ka-band satellites, one for
Optus, an Australian operator, two for Intelsat and one for
SkyPerfect JSAT.
Airbus Defence and Space successfully launched in 2022 twosatellites based on its new all-electric and customer oriented
Eurostar Neo platform for Eutelsat, allowing the operators
significant savings by replacing three satellites with two. Airbus
is currently building seven satellites based on this platform for
major operators and governments such as Thuraya and Arabsat
or Eutelsat.
Observation and scientific / exploration satellites. Airbus
Defence and Space supplies EO satellite systems carrying
optical and radar instruments and ground infrastructures forboth civil and military applications. Customers can derivesignificant 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 and01
01

water resource management, as well as military reconnaissanceand surveillance. Satellite imagery also provides targeted
information for disaster relief efforts, either through the Disasters
Charter or Copernicus Emergency services, to support rescue
operations.
Airbus Defence and Space also produces scientific satellites
and space infrastructure, which are tailor-made products
adapted to the specific requirements of the mostly high-end
missions assigned to them. Applications include astronomical
observation of radiation sources within the universe andplanetary exploration. The company was awarded a contract
in 2020 for the Earth Return Orbiter, the spacecraft that will
return the first ever samples from Mars under the NASA-ESA
Mars Sample Return programme. Airbus Defence and Spaceis also involved as a prime contractor in the manufacturing of
the JUICE spacecraft, ESA’s next life-tracker inside the Solar
System. JUICE will study Jupiter and its icy moons and is due
for launch in 2023.
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 theaviation community with advanced Safety of Life services andnew services to maritime and land users. Airbus has also been
awarded the manufacturing of six satellites for the second
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, manned 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. Airbus Defence and Space has been the sole prime
contractor for the Ariane 5 system since 2004. In December 2014,
the Ariane 6 programme was decided by the ESA ministerial
conference with an approval of the joint Airbus Defence
and Space and Safran concept. In addition, a new industrial
set-up was announced with the creation of ArianeGroup between
the two main Ariane manufacturers. This vertical integration
reduces costs and increases competitiveness. Ariane 6 is now
targeted to be launched in the last quarter of 2023. In 2022,
ArianeGroup announced the creation of its MaiaSpace affiliate
to develop the Maia mini launcher – accelerating the maturationand the in-flight validation of reusable technologies needed todevelop the future European family of launchers.
French deterrence systems. ArianeGroup as prime contractor
holds the contracts with the French State for the submarinelaunched deterrence system family.

Connected Intelligence
Connected Intelligence activities cover secure space andterrestrial connectivity, data management and intelligence, as
well as cyber security may it be for defence, security institutions
or commercial customers.

Airbus / Universal Registration Document 2022

55

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

The programme line is divided into five programme units:Intelligence, Secure Communications, Cyber Security, Special
Security programmes and Secure Land Communications.
Intelligence: provides data-driven systems, services andsolutions for trusted information and insights, and is a lead
supplier of ISR, air defence and land command and control
solutions to France, Germany and NATO. Imagery is derived
from Airbus’ state-of-the-art satellite constellation. Intelligence
provides systems enabling command and control, real-timedata fusion and predictive analyses, as well as comprehensive
systems based on sovereign cloud infrastructures for the
defence segment. It also offers data-driven solutions for various
commercial segments, including environmental protection,
agriculture and maritime, as well as the delivery of site security
services in Germany.
Secure Communications: supplies governmental satellite
communications, offering multi-domain secure connectivity,
satellite connectivity systems and services for armed forces,
notably for UK, France, Germany and NATO, providing securecommunications at sea, on land and in the air.
Cyber: designs, develops, integrates and deploys tailored cybersecurity products and solutions for defence, governmental andinstitutional customers, and provides operational support all along
the system lifecycle. As the aerospace and defence industries
continue to grow in scale, digitalisation and interconnectivity,
the platforms and systems become increasingly susceptible tocyber-attacks. With security breaches increasing continuously involume and sophistication, considerable resources are devoted
today to keep these systems safe.
Special Security Programmes: supports border security.
Secure Land Communications: supplies secure andresilient communication and collaboration solutions to provide
information, intelligence and situational awareness to users. It
helps public and private organisations around the world, such aspolice and special forces, fire brigades, medical and emergency
services, oil and gas, energy and utilities, transports, among
others, to carry out their public and critical missions.

Products and Services
Intelligence is a recognised actor in geospatial data provisionand defence intelligence as well as a lead supplier of ISR, Air
Defence and Land Command and Control solutions.
Intelligence manages one of the world’s largest satellite fleets,comprising a total of 14 satellites, with 3 radar (TerraSAR-X,
TanDEM-X and PAZ) and 11 optical (2 Pléiades, 2 Pléiades
Neo, SPOT 6, SPOT 7, Vision 1 and 4 DMC). Following the
Vega C launch failure in December 2022, the Pléiades Neoconstellation only includes 2 instead of 4 satellites. Despite
the launch setback, the constellation is already delivering atfull scale and the company remains committed to continue
delivering high quality earth observation services. All satellite
images are available on the OneAtlas digital portal for botharchive and tasking. Through Intelligence, Airbus is also part of
the transatlantic team developing technical concepts for NATO’s
Future Surveillance and Control capabilities.
In 2022, Intelligence successfully deployed three Pléiades Neo
Direct Receiving Stations in Japan, Czech Republic and in Saudi
Arabia and launched WorldDEM Neo, the updated solution
providing global digital elevation models at very high resolution.

56

Airbus / Universal Registration Document 2022

Secure Communications is the European leading provider of
secure communications services, bringing together the mostcomprehensive satellite communications services and systems,
and best-in-class secure network services and solutions. It
provides governments, military forces and international agencies
with mission-critical voice and high-speed data communications
on land, at sea and in the air. One example is the UK’s Skynet 5
programme, where Airbus Defence and Space delivers tailored
end-to-end in-theatre and back-to-base communication
solutions for voice, data and video services, ranging from asingle voice channel to a complete turnkey system incorporating
terminals and network management. This contract, pursuant
to which Airbus Defence and Space owns and operates the
UK military satellite communication infrastructure, allows the
UK MoD to place orders and to pay for services as required.
In 2022, Secure Communication acquired new business bysigning contracts with some European Ministries of Defence
to provide satellite communications for a 15 year period. The
Armed Forces will utilise the channels of the Airbus Ultra HighFrequency (“UHF”) military communications hosted payload
on-board the EUTELSAT 36D telecommunications satellite
scheduled for launch in 2024. With this new payload, Secure
Communications will be able to offer a new UHF communications
service to the armed forces, particularly those of European
countries and NATO allies.
In 2022, Airbus Defence and Space successfully concluded
the 19 year delivery of the Skynet 5 Private Finance Initiative in
the UK and secured the 18-months Skynet Service Continuity
contract. In Germany, Secure Communications continued tosecure business in the domain of SATCOM-Bw Stage 2 andstarted positioning itself for future opportunities in this domain.
It also secured new business in France with the ASTEL S5
frame contract.
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
to develop 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 benefits
from the best possible protection. In line with this ambition,
Airbus Protect was launched in 2022, bringing together morethan 1,200 experts from Airbus CyberSecurity (Airbus Defence
and Space subsidiary) and APSYS (Airbus subsidiary), under
Airbus commercial control. Cybersecurity activities for defence
and space programmes and major customers such as operatorsof vital importance remain within Airbus Defence and Space.
They will continue to provide solutions and lead major integration
projects around high-level technologies such as cryptography
and cyber defence, in line with the growth ambitions of theyears to come.
Secure Land Communications (“SLC”) offers advanced
mobile communication and collaboration solutions with thehighest standards of security and reliability to Public Safety
organisations and enterprises. The Agnet solution is based on
the latest 4G/5G broadband technologies and includes voicecommunication, messaging and multimedia sharing as well

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

as interoperability with Tetra and Tetrapol technologies. SLC
provides its customers with networks, terminals, accessories,
applications and services, and its portfolio is tailored to theneeds of public safety professionals, as well as users in thefields of transport, utility and industry, healthcare, and mobile
network operators. It includes infrastructure, networks, devices,
applications, software, and services, based on the latest
technologies, which enhance situational awareness, improveuser experience and safety, and optimise operational efficiency.
In 2022, Secure Land Communications recorded some awards
for the renewal and upgrade of its installed base all over theworld. In France, Airbus SLC was awarded the Réseau Radiodu Futur contract by the French Ministry of the Interior, which
pioneers the roll-out of broadband technologies for public
safety. In Germany, key milestones were achieved in the mid-life
upgrade of the largest Tetra network in the world (Bosnet VTS).
In addition to that, several partnerships with mobile network
operators have been established with major players in France,
Middle East, Latin America and India for the distribution of theAgnet solution. Finally, SLC successfully supported the WinterOlympic and Paralympic Games in Beijing and the FIFA World
Cup in Qatar.

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.

MBDA
Airbus Defence and Space holds a 37.5% stake in MBDA (a joint
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.

1.1.5

01
01

The broad product portfolio covers all five principal missile system
categories: air-to-air, air-to-surface, surface-to-air, anti-ship
and surface-to-surface. MBDA’s product range also includes aportfolio of airborne countermeasures such as missile warningand decoy systems and other customer support activities.
The most significant programmes currently under development
are the next generation of the successful MICA air-to-air missile(Missile d'interception, de combat et d'autodéfense), 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 thetwo nations, as well as the battlefield engagement MHT missile(Missile Haute Trame).
Recent product upgrades also include the Aster Block 1 NT (NewTechnology), the air and missile defence systems for France and
Italy, the Sea Venom / ANL (Anti-Navire Léger) missile for thehelicopters of the UK and French navies, as well as the Enforcer/
MMP (Missile Moyenne Portée) missile for the battlefield.
Further activities include the preparation of hypersonic and directenergy applications/systems for future programmes such as
FCAS and Tempest, the production of various aircraft packages
for the Eurofighter Typhoon and Rafale existing programmes(including ASRAAM, MICA NT, and Meteor BVRAAM), as wellas the production of various packages for frigates and corvettes
systems/missiles (including Aster B1, CAMM, VL MICA, MarteER and Otomat).

ArianeGroup
Airbus Defence and Space is active in the field of launchers andlaunch services through its ArianeGroup joint venture, whichprior to July 2017 was named Airbus Safran Launchers (ASL).
ArianeGroup is responsible for the coordination and programmemanagement of civil activities of the launcher business andrelevant participations that have been transferred. ArianeGroupowns a total 74% stake in Arianespace, 46% of Starsem and
51% of Eurockot, providing a complete range of launch services
with the Ariane, Vega and Rockot launchers.

Investments

Dassault Aviation
In 2013, the Company entered into an agreement with the French
State pursuant to which the Company:–– grants the French State a right of first offer in case of the saleof all or part of its shareholding in Dassault Aviation; and–– commits to consult with the French State prior to making any
decision at any shareholders’ meeting of Dassault Aviation.
The Company holds 9.90% of Dassault Aviation’s share capital.

Airbus / Universal Registration Document 2022

57

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

1.1.6

Insurance

The Company’s Insurance Risk Management function (“IRM”)
is established to proactively and efficiently respond to risks thatcan be treated by insurance techniques. IRM is responsible
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 inhousebroker entity. IRM’s continuous objective in 2022 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

1.1.7

Airbus is, with other European companies, one of the founding
members of the cyber insurance mutual Miris dedicated to cyberrisks. Miris will participate in the cyber group insurance policy
in 2023.
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.

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 25: 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.

58

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 difficult global corporate
insurance environment remained in 2022 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.

Airbus / Universal Registration Document 2022

Investigation by the UK SFO,
France’s PNF, US Departments of Stateand Justice and Related Commercial
Litigation
The Company reached final agreements (“the agreements”)
with the French Parquet National Financier (“PNF”), the UK
Serious Fraud Office (“SFO”), and the US Department of Justice(“DoJ”) resolving the authorities’ investigations into allegationsof bribery and corruption, as well as with the US Departmentof State (“DoS”) and the DoJ to resolve their investigations into
inaccurate and misleading filings made with the DoS pursuant
to the US International Traffic in Arms Regulations (“ITAR”). The
agreements were approved and made public on 31 January
2020.
Under the terms of the agreements, the Company agreed to
pay penalties of € 3,597,766,766 plus interest and costs to the
French, UK and US authorities. This was recognised in the
Company’s 2019 accounts. The settlements with each authority
were as follows: PNF € 2,083,137,455, the SFO € 983,974,311,
the DoJ € 526,150,496 and the DoS € 9,009,008 of which€ 4,504,504 May be used for approved remedial compliancemeasures. All penalties have been paid.
Under the terms of the Convention judiciaire d'intérêt public(“CJIP”) with the PNF, the Company has an obligation to submit
its compliance programme to targeted audits carried out by
the Agence Française Anticorruption (“AFA”) over a period of
three years.

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

Under the terms of the Deferred Prosecution Agreement(“DPA”) with the SFO, no independent compliance monitor
will be imposed on the Company in light of the continuingmonitorship to be conducted by the AFA.
Under the terms of the DPA with the DoJ, no independent
compliance monitor will be imposed on Airbus under theagreement with the DoJ, but the Company will periodicallyreport on its continuing compliance enhancement progress
during the three year term of the DPA and carry out further
reviews as required by the DoJ.
The agreements resulted in the suspension of prosecution
for a duration of three years. This deferral period ended on
31 January 2023. The Company awaits the formal determinationby the authorities that it has complied with the agreements’terms throughout the period whereupon it expects the closureof the prosecutions in line with the procedural requirements ofeach country. On 13 February 2023, the SFO gave notice to theCompany discontinuing the prosecution. On 17 March 2023,
the PNF gave notice of the same with receipt of the Constat
de l'extinction de l'action publique.
Under the terms of the Consent Agreement with the DoS,
the DoS has agreed to settle all civil violations of the ITAR
outlined in the Company’s voluntary disclosures identified in theConsent Agreement, and the Company has agreed to retain an
independent export control compliance officer, who will monitor
the effectiveness of the Company’s export control systems
and its compliance with the ITAR for a duration of three years.
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 by
nine months. The DoS has granted the extension. The Company
does not expect the Consent Agreement extension to havean impact on the DPAs with the SFO and DoJ, nor on the
CJIP with the PNF, nor on the AFA’s monitorship, as those are
independent of the DoS’s civil compliance programme review.
Any breach of the terms of the agreements by the Company
could lead to rescission by the authorities of the terms of theagreements and reopening of the prosecutions. Prosecution
could result in the imposition of further monetary penalties orother sanctions including additional tax liability and could havea material impact on the Financial Statements, business andoperations of the Company.
In addition to any pending investigation in other jurisdictions,the factual disclosures made in the course of reaching theagreements may result in the commencement of additional
investigations in other jurisdictions. Such investigations could
also result in (i) civil claims or claims by shareholders against
the Company, (ii) adverse consequences on the Company’s
ability to obtain or continue financing for current or future
projects, (iii) limitations on the eligibility of group companies
for certain public sector contracts, and/or (iv) damage to
the Company’s business or reputation via negative publicity
adversely affecting the Company’s prospects in the commercial
market place.
Airbus will continue to cooperate with the authorities in the
future, pursuant to the agreements and to enhance its strong
Ethics & Compliance culture within the Company.

01
01

Several consultants and other third parties have initiatedcommercial litigation and arbitration against the Company
seeking relief. The agreements reached with authorities maylead to additional commercial litigation and arbitration against
the Company and tax liability in the future, which could havea material impact on the Financial Statements, business andoperations of the Company.

Securities Litigation
In August 2020, a putative class action lawsuit was filed in US
federal court in the state of New Jersey against Airbus SE andmembers of its current and former management. The Company
was served with the complaint in the fourth quarter of 2021.
The lawsuit was brought on behalf of alleged shareholders thatpurchased or otherwise acquired Airbus SE securities in the
US between 24 February 2016 and 30 July 2020, and asserted
violations of US securities laws. The complaint alleged that
defendants made false and misleading statements or omissions
concerning, among other things, the Company’s agreements
approved on 31 January 2020 with the French PNF, the UK SFO,
the US DoJ and the US DoS as well as the Company’s historic
practices regarding the use of third party business partners
and anti-corruption compliance. The matter was fully and finallysettled on 30 September 2022 in exchange for a payment in
the amount of $5,000,000 USD without any acknowledgementof liability.
In addition, the Company received notification in August 2021 of
two separate claims and in March 2022 a third claim, all alleging
similar facts as the US class action. Three claims have been filed
in the Netherlands purportedly on behalf of Airbus investors.
The first Dutch claim was filed in August 2021 by a special purpose
vehicle incorporated under the laws of Guernsey, an assignee
purportedly representing numerous private shareholders andinstitutional investors, seeking a declaratory judgment withdamages to be assessed in follow on proceedings. This claim
is now pending before the Amsterdam District Court.
The second Dutch claim was filed in December 2021 following
a demand letter sent by a foundation incorporated under thelaws of the Netherlands, a purported representative of unnamed
institutional and retail investors worldwide, starting a class action
against the Company before the Dutch courts. This second
Dutch claim targets the Company, certain of the Company’s
current and former directors and officers, and the Company’s
current and former auditors.
The third Dutch claim was a class action filed in April 2022
against the Company by a foundation incorporated under thelaws of the Netherlands. In accordance with Dutch procedurallaw, the two Dutch class action claims are treated jointly as
one case.
The Dutch claims allege that the Company violated its reporting
obligations by failing to adequately inform investors and providing
false or misleading information about its use of intermediaries
and alleged corrupt practices, its related financial exposure,internal investigations and subsequent measures taken by theCompany, and related criminal investigations, which allegedly
impacted the Company’s share price.
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.

Airbus / Universal Registration Document 2022

59

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

The Company believes it has solid grounds to defend itself
against the allegations. The consequences of such litigationand the outcome of the proceedings cannot be fully assessedat this stage, but any judgment or decision unfavourable to theCompany could have a material adverse impact on the Financial
Statements, business and operations of the Company.

Air France Flight 447 Trial
On 1 June 2009, an A330 operated by Air France flight AF447
from Rio de Janeiro to Paris disappeared over the Atlantic
Ocean with 228 persons onboard. The wreckage was locatedin April 2011 after several search campaigns organised by the
Bureau d'Enquêtes et d'Analyses (“BEA”), which publishedits final investigation report in July 2012. In the wake of theaccident, the prosecutor in Paris opened an investigation for
involuntary manslaughter and Airbus SAS was charged in
March 2011. In September 2019, the investigating magistrates
closed the investigation and dismissed all criminal charges
after a thorough analysis of the technical and legal elementsof the case. However, the Paris Court of Appeal overturned
the magistrates’ decision and ordered trial for involuntarymanslaughter. The Company’s appeal to the French Supreme
Court has been dismissed. The trial took place in the fourth
quarter of 2022. The prosecutor recommended a dismissalof all criminal charges against Air France and Airbus. The
judgment of the Paris Criminal Court expected on 17 April
2023, if unfavourable to the Company, could result in damage
to its business or reputation.

Qatar Airways Commercial Litigation
Citing surface degradation on some of its A350 fleet andalleging an underlying “design defect”, Qatar Airways filed a
legal claim against the Company in the London Commercial
Court on 17 December 2021. On 1 February 2023, the parties
announced they had reached an amicable and mutuallyagreeable settlement in relation to their legal dispute over A350
surface degradation and the grounding of A350 aircraft. The
parties have proceeded to discontinue their legal claims. The
settlement agreement is not an admission of liability for either
party. The parties have also agreed terms for the delivery of 50
A321 and 23 A350 aircraft.

60

Airbus / Universal Registration Document 2022

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 and two
severely injured persons. Following the accident, product liability
claims were filed in Nevada state court in the US, including claimsby the estate and parents of a deceased passenger and by the
injured pilot of the helicopter. The Company intends to vigorously
defend itself against the claims, but such claims may generate
negative publicity and reputational harm. The trial is scheduled totake place in the first quarter of 2024. Any judgment or decision
unfavourable to the Company could have a material adverse
impact on the Financial Statements, business and operationsof the Company as well as on its reputation.

Other Investigations
The Company cooperated fully with the authorities in relation
to three investigations initiated by independent magistrates inFrance concerning the activities of commercial intermediaries
in Libya, Kazakhstan, Kuwait and several Eastern European
countries. In recognition of the fulsome nature of the cooperation
and upon payment of a penalty of € 15.8 million, all three
investigations were closed by means of a Convention judiciaired’intérêt public (“CJIP”) with the PNF on 30 November 2022. This
ends all remaining prosecutions in France for similar historicalactivities.
In 2019, the Company self-reported to German authorities
potentially improper advance receipt and communicationof confidential customer information by employees of Airbus
Defence and Space GmbH. The information concerned relates
to future German government procurement projects. The selfdisclosure by the Company followed an internal review withthe support of an external law firm. Both the German Ministryof Defence and the Munich public prosecutor opened aninvestigation into the matter. The investigation could have an
impact on Airbus Defence and Space GmbH’s and Airbus Secure
Land Communications GmbH’s ability to participate in future
public procurement projects in Germany. In 2021 the Munich
prosecution issued a penalty notice against Airbus Defence andSpace GmbH for € 10 million for negligent violation of supervisory
duties in connection with this matter. The Company continues
to fully cooperate with relevant authorities.

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

01
01

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 deeply aware of its responsibility
to society and future generations, and contributes to a numberof UN Sustainable Development Goals (“SDGs”) through its corebusiness and how it operates.
The Company strives to respect the planet. It aspires to leadthe journey towards clean aerospace. The Company pioneersadvanced and disruptive technologies while delivering andcontinuously improving its fuel-efficient products. From exploring
new aircraft and propulsion technologies and alternatives tofossil fuels (SAF) to testing new prototype aircraft poweredby hydrogen, the Company is committed to reducing theenvironmental impact of its products. It is also committed totaking environmental responsibility and, for example, to actively
reducing emissions through its value chain, cutting on-site waste
and increasing the recycling of aircraft at the end of their service
life. The Company’s products and services, such as its Earthobservation technologies, allow it to play an active role in tacklingclimate change, providing insights that help make the planet
more resilient.

GENERAL

Highest governance body(ies) involved

The Company is committed to valuing people. Its business isbuilt on a foundation of safety, quality, integrity and compliance,with the highest standards ensured from design to operation.
The Company supports the balance of powers and is uniquelypositioned to strengthen global resilience through its products
and services. The Company’s technology allows its customers
to protect lives during a conflict and prevent crises before they
escalate. 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 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 collaboratively to maximise its positive
impact, playing an active advocacy role, educating the aerospaceindustry and partnering with other businesses and public sector
organisations to develop technology and solutions that will allow
the industry to transition towards a sustainable economy. It iscommitted to being an economically resilient business that has
the financial strength to invest in a more sustainable future.
The Company believes that a sustainable tomorrow needs thestrongest foundations today.

GRI

SDGs

Others102 General Disclosures

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

Vigilance Plan

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

Commitments to external frameworks

UN Global Compact, The Ten Principles, Sustainable Development Goals

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

Innovation contributing to a more sustainable world on Airbus.com , Earth monitoring andunderstanding (e.g. Climate change monitoring ), Example partnership for innovation: ANITI
project , Toulouse University (ANITI) , ATAG Benefits Beyond Borders fact sheet , ASD Fact
Sheet 2022 , UN Global Compact

Sustainability on Airbus.com , Airbus Tax Strategy ,In line with its purpose, the progress in its sustainability journey,
and the evolution of reporting frameworks, the Company has
further evolved its non-financial reporting in 2022, providing

additional transparency and striving to better demonstrate its
level of commitment and performance, as presented in thefollowing pages.

Airbus / Universal Registration Document 2022

61

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

II. Indirect Contributions
The Company’s contribution to a more prosperous andsustainable society goes beyond what it offers directly throughits products and services.

Economic
benefits

For example, as one of the most important players in the aviationindustry, the Company contributes significantly to SDG 8 –“Decent Work and Economic Growth” – as highlighted throughthe 2020 Benefits Beyond Borders – global fact sheet, available
on the Air Transport Action Group website (figures reflect preCOVID 19 situation, a “normal” year for air transport):

87.7 million$3.5 trillion

Jobs supported by aviation worldwide

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

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

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

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

As a major European defence manufacturer, the Company also
has significant economic impact across Europe. According to
the AeroSpace and Defence Industries Association of Europe,
the industry supports over 879,000 jobs across the continent, allcontributing to Europe’s economic prosperity with € 238 billion
in annual revenue in 2021, € 138 billion of which comes fromexports.
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 the62

Airbus / Universal Registration Document 2022

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

Company’s sites such as those in Toulouse or Hamburg.
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, operate and prosper.

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

01
01

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 apply across its entire value chain. These
commitments are in close connection with the UN SDGs andcontribute more specifically to 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

1.2.7
1.2.8
1.2.9

Cyber security
Health and safety
Human rights

1.2.101.2.11
1.2.12
1.2.13

Inclusion and diversity
Social dialogue
PeopleBusiness integrity

Across each commitment the Company has set key performanceindicators (“KPIs”) and targets enabling the Company tomonitor progress towards these ambitions. These can befound in “– 1.2.17 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”. Complementing theclimate change section, EU Taxonomy regulatory information isdisclosed in section 1.2.19.
Several sources were essential in deciding on the fourcommitments, including the 2019 materiality assessment, abenchmark exercise, an analysis of market and regulatory trends,
an evaluation of ESG risks in the Company’s risk report, a humanrights gap analysis and the consideration of the Company’svalues.

1.2.14

IV. Materiality Matrix
The Company updated its materiality assessment in 2022 andused stakeholders´ inputs to support the ranking, of which
ESG issues are most material (and subsequently shall be
addressed in the sustainability strategy). The range of ESG topics
assessed was defined based on relevant industry and regulatoryreferences, as well as on internal expertise. This materiality matrix
is to be fully updated periodically – indicatively every three years –and possibly adjusted in the meantime based on feedback
captured from stakeholders in day-to-day business and further
methodological improvements. The results of this 2022 update
were captured in a materiality matrix (refer to materiality matrix
chart below), which is fundamental in confirming the relevanceof 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 criticalstakeholders – 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;

Airbus / Universal Registration Document 2022

63

1. Information on the Company’s Activities /1.2 Non-Financial Information–– 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 associated withidentified ESG-topics topics. Scoring was derived from theCompany’s enterprise risk management (“ERM”) system andcomplemented by interviews with representatives from theCompany’s top management.

–– potential impact on rightsholders or ecosystems (horizontalaxis): the Company evaluated the potential impact of its
activities on people and environment in connection with theCompany’s activities – e.g. employees, end users, and local
communities. Scoring was established taking into account thescale, scope, remediability and likelihood of risks associatedwith the topic. This assessment was based on interviews withinternal experts in each domain;

IMPORTANCE FOR THE COMPANY’S STAKEHOLDERS - High to Very High

Materiality Matrix

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

SocialGovernanceV. Stakeholder Engagement
The Company’s approach to sustainability is built on constantengagement with its stakeholders. Key stakeholder groups,
in line with International Aerospace Environmental Group
recommendation for the sector, include employees, customers,
suppliers, industrial partners (including energy providers), social
partners, investors, NGOs, authorities / governments / policy
makers, industry associations, MRO (maintenance, repair andoperations) providers, airports, and the community at large.
Dialogue with numerous stakeholders helps the Company
progress its sustainability ambition. In addition, it has formalised
a number of opportunities to exchange more widely with its
stakeholders. For instance, beyond materiality assessment, the64Airbus / Universal Registration Document 2022

Company meets at least twice a year with social partners to review
sustainability topics (see “– 1.2.12 Social Dialogue”). Besides, theCompany established the Airbus Supplier Sustainability Council
in 2022 (see “– 1.2.15 Responsible Supply Chain”). It organised
other events where sustainability topics were addressed during
the year, such as the Capital Market Day and the Airbus Summit.
Additionally, it participated in numerous events such as air showsor conferences, which fostered dialogue on sustainability matterswith a large number of external stakeholders including investors,
customers, media, NGOs, institutions, policy makers, and otherindustry or value chain partners.

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

01
01

VI. GovernanceConscious 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 “– Corporate
Governance – 4.1 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 and Compliance programme, organisation andframework for the effective governance of ethics andcompliance, including all associated internal policies,
procedures and controls; and–– Sustainability strategy and effective governance to ensurethat sustainability-related topics are taken into account in the
Company’s strategy and objectives.
Under the Board Rules, the Board of Directors delegates the
day-to-day management of the Company to the CEO, who,
supported by the Executive Committee, makes decisions
with respect to the management of the Company, including
sustainability. The Executive Committee has the responsibility
to provide 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.

Board of Directors

Ethics, Compliance & Sustainability Committee

Executive Committee

Environment
Executive
Steering
Committee

Inclusion & Diversity
Advisory
Board

Product Safety
Board

The Executive Committee is supported by several committees orboards linked to the Company’s four sustainability commitments:–– the Environment Executive Steering Committee, the Inclusion& Diversity Advisory Board, the Product Safety Board as wellas 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 of this report.

Occupational Healthand Safety
Governance Board

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

Organisation and policy framework: The sustainability &environment team put in place in January 2020 at corporate
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;-- Enabling the business to deliver this ambition across thefull value chain;-- Engaging employees on sustainability;-- Providing clarity on ambition and progress to internal andexternal 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.),
related functions, departments or “roadmaps” (multi-functional
teams addressing cross-functional sustainability topics) driving

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65

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

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 of the Company’s employees
and directors, regardless of their job title, responsibilities,
seniority, or location, within every subsidiary or joint venture
where the Company has control.

Incentivisation and remuneration: The Company also
believes the integration 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, accounting for 20%, see “– Corporate Governance– 4.2.1 Remuneration Policy”. This principle also applies to theother members of the Executive Committee who do not serve on
the Board of Directors, and to a large extent to executives 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 4,500 employees)

Health and Safety FR1

c. 5%

Around 115,000 employees

Ethics & Compliance
Functional sustainability
objectives

Over 10%
Individualised

All employees entitled to an individual
bonus (around 50,000 employees)-- Individual performanceVII. 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 prevent serious impacts related to sustainability
resulting from the Company’s own operations and from its
suppliers and other contractors (including subcontractors). As
far as its own operations are concerned, the Company has
adopted internal policies and management tools to performthe monitoring, assessment, mitigation and reporting of risk andcompliance allegations, which are embedded into the Company’s
culture and processes. For the Company’s vigilance plan for its
supply chain, see “– 1.2.15 Responsible Supply Chain”, whichshall be deemed to be incorporated by reference and form partof 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 “– Corporate Governance – 4.1.3
Enterprise Risk Management System”. For further informationon the Company’s risks, see “– Risk Factors”. Internal audits
are also performed regularly across the Company, including onsustainability topics. External audits are performed in line withcertification 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 900 online and inperson training opportunities in 2022, ranging from ethics andcompliance to export control, health and safety, product safety,
cyber security, internal controls, inclusion and diversity, quality
and customer centricity, sustainability awareness and more.
Training courses linked to sustainability topics were integrated
into the 2022 mandatory training list for Company employees.
Specific information on training is covered in the related material
topic sections.

66

Airbus / Universal Registration Document 2022

Affiliates: All Company controlled affiliates are expected to deploy
similar internal policies by applying the Company’s directives.
A company-wide single directive defines rules, processes andprocedures applicable to the Company’s affiliates and theirrespective boards, directors and officers. Its enforcement is
supported by the Directors’ training programme which wasdelivered to 117 people in 2022 over eight full-day digitalsessions, as well as on-boarding sessions performed for newly
appointed managing directors of controlled affiliates. The single
directive assists the Company’s affiliates in effectively fulfilling
their responsibilities, while assuring the Company’s ongoingcommitment to high standards of corporate governance. It was
built on the basis of 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 andrelated directives. An online Internal Controls Self Assessment(“ICSA”) is completed on an annual basis by the controlled
affiliates to self-assess their internal controls, including how they
relate to the environment, health and safety, human resources,
governance, finance, procurement and compliance requirements
in order to identify any gaps and define remedial action plans as
required. Controlled affiliates can update the self-assessment on
a quarterly basis based on their progression. Following ICSA,
internal verifications are carried out by the respective corporate
functions to validate answers and, when gaps are identified,develop improvement measures jointly with controlled affiliates
to enhance their conformity level. In 2022, 81 controlled affiliates
were selected to perform such verifications. Verifications are
run every three years at least, and more frequently when ICSAs
evidence material gaps. 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.

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

01
01

Priority risk in the scope of
RISK MAPPINGThe Company

Suppliers and Contractors✔

✔

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✔

resources. This includes desktop research, interviews with
key internal stakeholders and verification with internal andexternal stakeholders. The human rights risks identified werecomplemented and cross-analysed with product life cycle
assessments – including sectoral inputs – and the Company’s
top health and safety risks.

Complementing the materiality assessment described further
above, the Company reviewed in 2022 the list of its priority
sustainability risks as shown above to help prioritise its actions.
This process complements, and is fully integrated into, theCompany’s ERM process. It is based on contributions andinputs consolidated from a wide range of stakeholders andProcedures for regularly assessing the situation of relevant subsidiaries, contractors and suppliers: The table below
summarises effective procedures for regularly assessing the situation of relevant subsidiaries, contractors and suppliers. Specificrelevant complementary information can be found in the respective material topic sections.
The Company

Suppliers and Contractors

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) 88% workforce currently covered.
(2) 25% workforce currently covered.

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

Suppliers and Contractors
Policies /
directives

Contractual
terms andconditions

Whistleblowing
systemSupplier
Code of
Conduct

✔

✔

✔

✔

✔

✔

✔

✔

✔

✔

✔

✔

✔

✔

✔

Training

Whistleblowing
system(see below)

Code of
Conduct

Environment✔

✔

Health and Safety✔

✔

Human Rights✔

✔

Alert / grievance and whistleblowing mechanism: The
Company is committed to maintaining a “speak up” culture, bypromoting an open and trusting dialogue with employees at alllevels. All employees are encouraged to express their views,
defend their opinions, and point out unacceptable behaviour– especially behaviour that violates the Company’s Code of
Conduct. Employees can raise concerns with their line manager,
their human resources business partner, a legal and compliance

representative, or through the Company’s “OpenLine” hotline(www.airbusopenline.com). OpenLine is anonymous wherelegally permissible. It covers all sustainability topics and isalso available to external stakeholders including, affiliates
and suppliers. The Company endeavours to ensure that theprocedures to assess, investigate and manage allegations are
well-aligned throughout the Company. For further information,
see “– 1.2.14 Business Integrity”.

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

Monitoring system: The table below shows an overview of the monitoring system in place. More detailed descriptions, as well as
performance measures and analysis, can be found in the respective material topic sections.
KPIs
Environment Operations

Responsible
management body

CO2 Scope 1, 2, Water, Waste

Use of Products

S&E Department /Delivered aircraft CO2 efficiency metric Environmental Roadmap

Health and Safety

Lost time injury frequency rate

Health and Safety Department

Nb of social assessments

S&E Department /Human Rights Roadmap

Human Rights

Supply Chain

Supervisorycommittees% of findings closed within 18 months% suppliers at risk
% action plan launched

Controls
ERM, internal audit

Seegovernancechart ingovernancesection above

Procurement / Sustainable
Supply Chain Roadmap

ERM, internal audit
ERM, site social
assessments
and supply chain
assessments
ERM, audits
Self questionnaires

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 its net-zero carbon
emissions aspirational goal, the Company’s foremost ambition
as an aircraft manufacturer is to bring the first hydrogenpowered commercial aircraft to the market by the middle of thenext decade, and to play a leading role in the decarbonisationof the aviation sector. In parallel, the Company is investing

68

Airbus / Universal Registration Document 2022

large resources into examining and reducing the impact of its
products in operation together with all actors within the aviation
sector. Consideration of greenhouse gas (“GHG”) emissions
throughout the value chain, which are predominantly carbon
dioxide (CO 2) emissions, is a key focus for the Company’s
analysis of its contribution to climate change. The non-CO 2
effects of aircraft operations are also being studied in orderto determine their potential contribution to the climate (seeTransition plan – Product stewardship).

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

CLIMATE CHANGE

01
01

GRI

SASB

SDGs

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

9-12-13-17

TCFD
Vigilance
plan

in Use-Phase

Highest governance body(ies) involved

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

Related corporate policies

Environmental Policy, Code of Conduct

Management system
certifications / labels

EMS – Environmental Management System, ISO 14001 – 88% of workforce covered
SBTi-validated emission targets

2015
baseline

2021

2022

2022
vs. 2021

2022 vs.
baseline

2030: -63% in linewith 1.5°C pathway,
and neutralisingresidual emissions

1,126

809

762

-5.8%

-32%

2030: -20%

3,108

2,717

2,594

-4.5%

-16.5%

2035: -46%

88.8

66.3

64.4

-2.9%

-27%

68%

78%

+10p.p.

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

2021

2022

2022
vs. 2021

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

400,611425,454+6.2%

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

458,738

494,893+7.9%

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

9,343

10,703+14.5%

Scope 3 – Cat. 1 – Purchased goods and services (CO2e ktons)

8,439

N/A

N/A

KPIs
CO2e (1) Scope 1 & 2 (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 scoring A or B

A-A-

Stable53%

66%+13p.p.

Remuneration

CO2 performance included in CEO, Executives and “Level IV” managers variable remuneration.
Targets (on TCO scope): -5% in 2022, 687ktons CO2e or -0.9% in 2023. 2022 performance: -8.5%.

KPI assumptions

Metrics: see “– 1.2.17 ESG data board”; targets: see “- IV. Transition plan”.
(1)
CO2 equivalent (“CO2e”).
(2)Energy consumption from stationary sources and electricity.

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 , IEAG – GHG Reporting Guidance , IEA – Aviation report , IPCC AR6 report ,Clean Sky initiative , 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 afinancially material topic and is one of the top Company risks(see “– Risk Factors - Environment, Human Rights, Health &Safety Risks”). Impact materiality was also confirmed throughthe comprehensive Scope 1, 2 and 3 screening completed in
2022 in the framework of the Company submitting targets forvalidation of the Science-Based Target initiative (“SBTi”), using
the recommended Greenhouse Gas Protocol methodology.

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

While Scope 1 & 2 represent less than 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 havebeen 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 2021. 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
to decarbonisation is intrinsically linked to the entire sector’s.
While the Company has a direct and critical role in developing
and providing technical solutions, the concomitant developmentof 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 (formerly Carbon Disclosure Project), SBTi and
TCFD initiatives. In 2022, the Company’s approach to climatechange was rated A- by the CDP for the third consecutive year.
In addition, the Company has recently set its first near-termscience-based targets to reduce emissions on all scopes, in linewith a 1.5°C temperature pathway for its Scope 1 & 2 emissions,which were submitted to SBTi in June 2022 and validated in
January 2023. The following sections gather information related
to the four pillars of the TCFD framework, of which the Company
has been a supporter since December 2020.

II. Governance
Environmental Policy
The Airbus Environmental Policy is the top level definition of theguiding principles, vision, mission and associated initiatives forthe environment. The policy applies company-wide, including toaffiliates where the Company owns more than half of the voting
rights or the right to appoint the majority of the board directors(to the extent that the shareholders agreement and/or the levelof control in force in each relevant affiliate allows it). The policy
also covers the Company’s employees and contractors while at
the Company’s sites or at work under the responsibility of theCompany. It takes a holistic approach to measuring and acting
upon the Company’s environmental performance by assessing
the environmental impact of internal operations, as well as
providing capabilities to the Company’s customers to reduce the70

Airbus / Universal Registration Document 2022

impact of the products in operation. This also means introducing
a lifecycle perspective and mitigating the risks and impacts at allstages 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, the Board of Directors is supported by
the ECSC. In practical terms, the ECSC, as a committee of theBoard of Directors, oversees strategic decision-making andthe execution of the approved sustainability strategy, including
areas such as innovation and environmental and climate action.
In 2022, the ECSC reviewed and provided guidance on a wide
variety of climate-related topics, including the SBTi targets, SAF,
and decarbonisation of the supply chain.
To support the Executive Committee in environmental matters,
especially climate-related, an Environment Executive Steering
Committee (“EnC”) was established in 2019. The EnC is
composed of members of the Executive Committee and senior
executives company-wide responsible for environmental topics.
It meets once a month to review progress and take decisions on
all matters related to environmental strategy. The EnC reviews
climate change related topics, including the progress on meeting
objectives to reduce GHG emissions, the decarbonisation
strategy and climate-related risks.
Environmental operations are led by the Sustainability &Environment department (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, having previously confirmed
by certification surveillance audits in 2020 and 2021. The
Company’s environmental strategy is implemented operationallyby dedicated multi-functional teams at corporate and/or divisional
level. These cover topics such as industrial and site impact,
product operation, supply chain or chemical substances.

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

Disclosure of Environmental Indicators

Climate-Related Risks and Opportunities

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.

In accordance with TCFD recommendations, the Company isstrengthening its ERM risk identification process for climaterelated risks and opportunities, incorporating climate scenario
analysis. Climate-related risks (adaptation and mitigation) shallbe deemed to be incorporated by reference and form part of thenon-financial information. The Company used three temperatureclimate scenarios: 1.5°C, 2°C and 3°C; and three time horizons:
short-term (“ST”, around 2025), medium-term (“MT”, around2035) and long-term (“LT”, around 2050) in identifying climaterelated risks and opportunities. The assessment of risks andopportunities identified by the Company is subject to revision
as the methodology and process further mature.

Capturing Emerging Regulatory Requirements,
Stakeholder’s Expectations and Trends
In order to be aware of fast-evolving sustainability regulations,requirements and expectations that could impact its business, a“Sustainability Regulatory Intelligence” team monitors regulatory
developments with a view to understanding, evaluating,anticipating and preparing for legal and regulatory requirementsthat apply to the Company’s activities and products. This
Sustainability Regulatory Intelligence team covers sustainabilityrelated topics, including: environment, human rights andsustainable finance.

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 ISO 14001:2015 certified EMS, and provides
a set of rules applicable company-wide, to ensure a consistent
management of environmental risks and opportunities.
Relevant criteria for the evaluation of environmental risks andopportunities include: financial impact, impact on environmental
performance, 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, including
climate-related risks. Top risks are consolidated at Company
level to be brought to the attention of the Board of Directors andreviewed semi-annually.

01
01

Climate risks and methodology (including description of usedscenarios) are described in “– Risk Factors – Environment,
Human Rights, Health & Safety Risks”. They are complemented
by the following opportunities identified:–– energy diversification – energy source: Exploring and identifying
new business opportunities in the field of renewable and lowcarbon energy (incl. through partnerships and collaboration
with stakeholders) in order to position the Company in theenergy value chain and contribute to the Paris Agreement
temperature goals;–– demand for energy-efficient products – market: Demand formore energy-efficient products (driven by increased energy
costs, carbon pricing and voluntary climate commitments)
or products allowing the use of other energies could lead toan accelerated airline fleet replacement and to new businesslines;–– growing market for Earth observation, atmospheric andweather data monitoring services – Products and services:
Increased need for Earth observation, atmospheric andweather data services (including but not limited to the following
sectors: aviation, agriculture, finance and insurance) could
increase market demand for certain products and servicesof the Company, and lead to the creation of new business
opportunities.

The outcome of the Company’s qualitative analysis is synthesised in the following table:

Company’s climate-related risks and opportunities mapping
RISKS (see “– Risk Factors” for full description)

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

2°C

3°C

Transition – Technology
Transition – Market
Physical – Chronic
Physical – AcuteOPPORTUNITIESEnergy source
MarketProducts and services: ST –: MT –: LT

Mitigation actions the Company has engaged, including to address these risks and opportunities are presented in the following“IV. Transition plan” section.

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

IV. Transition Plan
Based on identified risks and opportunities, the Company
has established a transition plan covering its industrial
operations, products and services, supply chain, employees
and communities, including relevant targets, against which
performance is monitored and reported. Regarding GHG
emissions, this plan was based on a scientific approach andis consistent with the aviation sector’s decarbonisation longterm aspirational goal of reaching net-zero carbon emissions
by 2050. Its success will depend on coordinated collaboration
with numerous players in the sector.
The Company strives to have the aviation sector engaged towork towards and contribute to a just transition to a low-carbon
economy, whereby air transport’s decarbonisation journey isfair and inclusive. According to the International Energy Agency,
based on the remaining global carbon budget and the shareallocated to air transport, air transport can grow at a certain
level and meet the Paris Agreement objectives. This relies in parton technological developments to improve the efficiency of airtransport, in which the Company has a critical role to play. Thisapproach also echoes “net zero carbon 2050” ambitions frominternational sectoral bodies such as the Air Transport Action
Group (ATAG), as well as the UN specialised civil aviation body,the International Civil Aviation Organization. This is consistent
with the Company’s mid-term target setting, covering all three
scopes, and with its core product policy that focuses ondeveloping and delivering aircraft with lower carbon emissions

1.

while engaging with the energy ecosystem (see section 2.
Product stewardship).
The cost of such a transformation of the sector is expected tobe substantial. In particular, the carbon price (through taxation,
emissions trading and crediting schemes) and the extra costfor SAF and/or higher investments are likely to materially impact
business models of operators. However, even if reportedly
difficult to predict, according to a study published in 2022 by
ATAG named “What will it cost to get to net-zero carbon for
global aviation?”, these extra costs could be offset to a large
extent by more efficient operations, especially where markets
are developing. This could mean limited consequences on air
fares, with differences across regions. Ultimately, the overall
affordability of air travel could remain relatively similar, and so;access to air travel should be preserved for the greatest numberof people, according to the report.
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
and an important success factor. Conversely, if uncontrolled,
the development of these technologies and energies could
have undesirable side effects, such as inappropriate land use
impacting local communities and human rights. The Company
will strive to influence the ecosystem to consider and avoid
these impacts, and to engage accordingly with any relevant
stakeholders in constant dialogue.

Industrial Operations
Commitments

CO2 emissions
Scope 1&2
Absolute figures

Energy consumption
Absolute figures

2030

51%-to-target

2022
2023

Target (TCO scope): -5% vs. 2021
Target: 687 ktonsCO2e (-0.9% vs. 2022)

2022: -8.5% reported(3.5p.p. overachievement)

2030

Target -20% vs. 2015
from stationary sources

The Company has defined targets and ambitions for its own
operations.
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
has committed to compensating all residual emissions for
scopes 1 & 2 from 2023 and gradually switching to using only
carbon removals from 2030 and onwards;–– 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 targets are set in line with the Company’s 2030
roadmap. They refer to a material sub-scope of its operations

72

Airbus / Universal Registration Document 2022

2022 Progress

Target -63% (SBTi-validated) vs. 2015
neutralisation of residual emissionsaligned with 1.5°C pathway-32%-16.5%
83%-to-target

-63%

-20%

representing 89% of total reported emissions in 2022, on which
the Company can have a more direct control and influence(see below). This target was set in absolute value at 687kt
CO2e for 2023 (or -0.9% vs. 2022) on a scope extended toanother four sites.
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 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. This refining of methodology is
expected to trigger restatements in the coming years, includingthat of the 2015 baseline.

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

01
01

Energy:In order to deliver its ambitions, the Company has developed
a comprehensive action plan for both stationary (groundfixed assets) and mobile sources (vehicles such as cars,
trucks or aircraft). This takes into account both efficiency anddecarbonisation measures, complemented by an offset strategy
for residual emissions.

–– reduce final energy consumption from stationary sources andelectricity by 20% by 2030 compared to 2015 across the whole
Company reporting scope.

This roadmap was further strengthened in 2022, and, together with proof points, can be synthesised as follows:
Mobile sources~30% of energy consumption(e.g. ground vehicles, “Beluga” airtransport operations, flight test)

Stationary sources~70% of energy consumption(e.g. heating, cooling, manufacturing processes)
Energyefficiency
measures

Substituting energy-intensive assets by energy-efficient ones andoptimising energy consumptions. In order to meet the -20% target
by 2030, a portfolio of projects was identified and phased, including
low-energy lighting, improved insulation, voltage management, energyefficient heating and cooling or optimised ventilation system, as well as
enabling projects such as extending metering network, and enhancing
energy monitoring solutions.
In 2022, 17,500 fixed phones were removed across European sites. In
France, it represented electricity savings of 920MWh.
The installation of a compressed air management system in Donauwörth
has saved approximately 150MWh.
In Broughton, automatic standby in Paint Shops during weekends andshutdowns has already led to energy saving of 340MWh.
In the context of the energy crisis in Europe, the Company undertooka number of actions to contribute to the collective effort as a corporate
citizen. This included reducing heating systems temperature by 1°C in
its European sites, reducing heating device energy consumption by
about 7%, and diverting from the use of gas to other sources of energy
where possible in German sites.

-----

Transition to
low carbon
energysources

Ambition to secure at least 90% renewable or low-carbon electricity
direct supply to all sites in Europe before 2030.
This will be achieved with the implementation from 2023 of powerpurchase agreement (PPA) contracts and a combination of local projects(wind, solar), complemented by electricity generated from nuclear power.
The amount of electricity purchased through the PPA contracts will
increase progressively.
The renewable power purchase agreement (PPA) project launched in2020 reached a major milestone in 2022 with the validation of renewable
and low-carbon power purchase requirements as well as finalising theselection of suppliers. The Company is making progress on contracting
for 2023 and 2024.

--

All remaining purchased electricity in Europe will be covered byguarantees of origin (GoOs) from 2024. In 2030, this will represent a
maximum of 10% of consumed electricity.
Since 2019, the share of electricity consumption from industrial
operations in Europe which is covered by GoOs has increased annuallyby 10%, exceeding 40% in 2022.
In addition, the Company is investigating similar opportunities in otherregions (e.g. USA, China).

--

Switching to lower emission vehicles where
possible and avoiding emissions throughbetter planning of flights and logistics.
Since 2022, new Beluga jigs and tools haveenabled each logistic flight to transport two
A350 wings instead of one previously.
Deployment of Airseas Seawing (seehereafter “other initiatives”) for vessels:
the experiment on the “Ville de Bordeaux”
transatlantic logistic vessel started in
December 2021 continued in 2022.

---

Using lower carbon fuels (e.g. SAF). The
share of SAF used in the Company’s own
operations will progressively increase to atleast 30% by 2030.
The Company set an interim target of 10%
in 2023 for its commercial aircraft activities
and its Helicopters Division. This will concern
flight tests, delivery flights and logistic flights(Belugas). In addition, the Company also
started using sustainable fuels for its maritime
logistics.
Since 2019, SAF has been used in theoperation of the Company’s Belugatransport aircraft for the purpose of internal
logistics.
In 2022, flight test activities in both Divisions
started using SAF. In total, an estimated
4,823 tons CO2 were saved during the year
when compared to conventional kerosene.

---

More efficient heating systems energy sources.

-- The installation of a combined heat and power plant (CHP) in
Donauwörth led to a further saving of 1,800t of CO .
-- An Enthalpy Recovery project in Illescas and energy consumption by
2

1,089MWh resulting in about 380t CO2e saving.

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73

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

Carbonoffsetstrategy

The Company has committed to remove 100% of its residual emissions by 2030, which will represent around400kt CO2e in 2030. It will start with compensating all remaining emissions from 2023, with a gradual phase-in ofcarbon removal solutions to cover 100% of residual emissions by 2030. Both nature-based and technology-based
solutions are considered, in alignment with the Intergovernmental Panel on Climate Change reports.
Since 2019, the Company has introduced a mechanism to compensate for its business travel emissions based on theconcepts of additionality, real (permanent) reduction, prevention of double counting, prevention of overestimation andno 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 toshow proof of how each one of the mentioned criteria was met. In addition, understanding that these carbon offsetting
programmes may have gaps 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 the communities surrounding the projects.
The volume of offsets required in 2022 was around 45ktCO2e procured through offset producer South Pole in theform of a cluster of compensation and removal projects: aforestation (VCS), landfill gas and waste gas (GS-VER), forest
conservation (VCS-CCBS). This contract with the South Pole has been reviewed to cover the full volume of 2023 residual
emissions, estimated to be over 700kt CO2e.
In addition, the Company plans to secure 2024-2030 volumes well in advance. Terms will meet underlying principles
of progressive transition towards 100% removals, as well as a relevant mix of nature-based 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 – as partof an initial offtake. A portion of these volumes will be allocated to the Company’s scope 1 & 2 offset strategy.

--

As an enabler for consistent decision making, the Company
uses an internal carbon price to support investment withpositive energy and CO2 reduction impacts on operations. In
2021, this price was updated from 30 €/tCO2 to 150 €/tCO2,

giving a clear signal to project leaders on the importance ofCO2 footprint reduction and enabling an acceleration of project
portfolio implementation.

Tracking Progress and Performance
In 2022, scope 1 & 2 GHG emissions have decreased by around 5.8% (-8.5% on TCO scope), exceeding the target, primarily due tofour factors: the acceleration of energy saving investments and of SAF usage (that reached over 3% of the Company’s total aircraft
fuel consumption (see above)), the lower-than-planned industrial ramp-up, the deployment of additional energy saving measuresin the context of the energy crisis, as well as clement weather conditions especially over the last months of the year.
2 000

1 000
900
800

1 500

600
1 000

500

762

400
300
500

-63% vs 2015

200
100
0

0
2015

2022

Actuals

74

Airbus / Universal Registration Document 2022

TargetRevised ambition

2030

Deliveries

Deliveries

ktons CO₂e - Scope 1&2

700
611

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

TCO
CO2e (in ktons)

Target2021

2022

YoY Change

-5%

741

678

-8.5%

01
01

Verified by EY®, based on limited assurance.
The TCO scope is reviewed annually. It covered 89% of total emissions in 2022. Data were updated to reflect change in TCO scope accordingly. Geographical scope: In 2022,
48 sites. Scope of metrics: Scope 1 & 2 and notably excluding refrigerant leakage, electricity on site from CHP, emissions due to processes, as well as excluding DFO for 12 sites
and heating for one site representing less than 4 ktons CO2e in total. Scope 2 is location based with purchased guarantees of origin deduced.

Additional performance metrics are disclosed in “– 1.2.17 ESG Data Board – Environmental performance”.

2. Product Stewardship
Commitments
CO2e Scope 3 intensity
Delivered aircraft efficiency(gCO2 /km.pax)

2022 Progress / performance

2035

Target -46% vs. 2015
SBTi-validated

2050

Support sector’s “net zero CO2 ambition”

In 2022, the Company defined a target for its Scope 3 category
11 (use of sold products) for commercial aircraft products,
covering over 90% of its total emissions:–– CO2: 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, showing theCompany’s GHG reduction targets are aligned with the goalsof the Paris Agreement adopted at COP21 in December 2015.
It was set based on the carbon budget allocated to aviation by
the International 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

-27%

-46%
60%
achieved-to-target

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 lifetime 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 multifaceted climate-impact programme for commercial aircraft. This
includes a focus on new aircraft technology development, SAF,
hydrogen, air traffic management (ATM) solutions, and carbon
removal solutions.

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
frozen 2019 technology
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

Airbus / Universal Registration Document 202275

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

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). In 2009, theaviation sector was the first to 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 and commitment with the 2021 editionof the “ATAG Waypoint 2050” report to reflect the industry’s
increased ambition to achieve “net-zero carbon emissions” by
2050 and contribute to the Paris Agreement goals. Along with therevised ambition, ATAG provided several scenarios with ranges ofimprovement for each mitigation option (technology and design
improvements, operational and ATM enhancements, SAF (dropin) and hydrogen (non drop-in) solutions, and market-based
measures including ICAO’s Carbon Offsetting and Reduction

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Scheme). In the most ambitious scenario, a reduction of up to
40% of CO2 emissions can be achieved through technologicaldevelopments, as illustrated by the graph.
In Europe, the EU Green Deal creates conditions andopportunities for the Company and the European aviationindustry to accelerate the transition. The Company supports theambition to reach a net-zero carbon aviation ecosystem in Europe
by 2050, and will contribute to the EU’s “2030 Climate Target
Plan”. At the international level, in October 2022, ICAO member
states adopted a long-term aspirational goal (LTAG) that sets theobjective of net zero carbon emissions in 2050 for international
civil aviation operations. This paves the way for the transformationof the aviation sector on a level playing field and will accelerate
the development of mitigation measures such as fleet renewal,
aircraft and engine technologies, alternative energy sources
such as SAF or green hydrogen, and the optimisation of theoperational practices and air traffic management enhancements.
The Company fully supports this international achievement.

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

01
01

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 inorder to market lower carbon aircraft such as hydrogen-powered aircraft. Fostering the ecosystem readiness including associatedinfrastructure and the dynamic deployment of SAF will be another priority, in order to achieve the ambition while minimising therecourse to offsetting, as presented below.
Strategic pathway 1

Renew current fleets with best-in-class aircraft

Around 75% of the global commercial aircraft fleet is still made up of older generation aircraft,while latest generation aircraft are up to 25% more efficient than the previous generation.
Renewing the fleet therefore offers immediate huge potential for aviation decarbonisation.
The Company’s commercial aircraft portfolio includes the most efficient aircraft:
A350 and A330neo offer 25% reduction in fuel burn and significantly reduced noise footprint
versus the previous generation of aircraft;
the A320neo family brings a 20% reduction in fuel burn, and nearly half the noise footprintcompared to previous generation of aircraft;
A220 offers 25% reduction in CO2 emissions per seat versus previous generation of small
single aisle aircraft, 50% reduction in noise footprint and 50% fewer NOx emissions than thestandards.

----›› In 2022, 99% of the delivered

commercial aircraft corresponded tolatest generation aircraft (2021: 95%).

›› Continuous improvement commitment

is also reflected by the Company’scontribution to Europe’s CleanSky2
programme: a military aircraft C295
from the Company has been used as
an in-flight technology demonstrator,
Flight Test Bed.

The Company is continuously improving its products through new aerostructures designs andtechnologies, 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, with all aircraft types 100% SAF compatible before 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.

Deliver technical capability
Although they currently represent a small share of aviation’s fuel use,
SAF are key for the air transport sector decarbonisation strategy. All
the Company’s commercial aircraft are already certified to fly with afuel blend of up to 50% SAF. SAF produced by using most advanced
pathways can provide CO2 emission reductions of up to 80% throughout
their life cycle. This means that already today, the emissions from aircraft
currently offered by the Company could be reduced by ~40% if their full
blending capability was used.

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

Looking ahead, the Company’s ambition is to have all its aircraft
platforms, including helicopters, capable of being operated with 100%
SAF before the end of the decade.

started with the A380, with the A320 powered by P&W, andwith the H225 helicopter (with both engines).

The 50% limit is set today to ensure the blended SAF fits within the JetA
specification, and thus can be used on aircraft with no modification.
Going beyond this limit implies either modifying the aircraft, andsurrounding infrastructure, to adapt to what would be a new fuel, “nondrop in”, or working on a purely synthetic fuel that would fit within the
JetA specification, “drop in” solution.
The Company is involved in two main research projects: VOLCAN(A319 with CFM engines) and ECLIF3 (A350 with Rolls Royce engines),
conducted in partnership with important actors of the industry. Bothprojects aim at assessing the impact of 100% SAF (non-drop in) on
engine and fuel systems while measuring the positive impact on aircraft’s
emissions and fuel efficiency. Both projects will pave 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 of gaining 100%
SAF certification for commercial flights.

catalyst in the certification process, demonstration flights,
partnerships and policy advocacy of sustainable jet fuel.

›› Since 2011, over 460,000 commercial flights have used SAF
and more than 1 million flights with SAF are expected by2025 (source: IATA, flynetzero, 2021).

›› Besides ECLIF and VOLCAN projects, flight test campaigns›› Flight tests using blended SAF were also performed on

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

›› In addition, the Company and other industry partners havecarried out in 2022 the world’s first 100% SAF flight using an
in-service military aircraft.

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77

1. Information on the Company’s Activities /1.2 Non-Financial Information“Prime the pump”
In addition, as an aircraft operator through its flight tests and internal
logistics, the Company strives to “prime the pump” by demonstrating
market demand (see industrial operations).
In the context of the developing regulatory frameworks fostering SAF
market growth, the Company supports policies that would incentivise
SAF production and usage at affordable costs. In particular, the Company
is supporting and sharing industry best practices, looking at productionlevels assessment, life cycle analysis methodology and sustainability
criteria and standards harmonisation.

›› While the aviation sector contemplates an objective of

10% SAF globally by 2030, today’s pipeline of demandhardly exceeds 20 Mtons, suggesting necessity for further
acceleration.

›› The USA Sustainable Skies Act targets 3 billion gallons
annually by 2030.

›› The EU’s current “ReFuelEU” legislative proposal targets a

5% SAF mandate for 2030 growing to 63% by 2050 (including>28% synthetic e-fuels).

Foster SAF ecosystem readiness and partnerships
The Company believes a coordinated action of all actors could foster a
10% SAF penetration at the global level by 2030.
Today, SAF production is very limited. The price and global production
capacity remain the main constraints for operators, preventing largescale incorporation of these types of fuels. A rapid ramp-up is necessary
to enable the aviation sector’s ambitions and to decrease the emissionsof the Company’s product in use. Matching SAF production and demandis essential to achieve the establishment of the SAF market.
The Company supports decarbonisation scenarios which include an
ambitious rollout of SAF using all possible pathways (HEFA, alcohol-tojet, Fischer Tropsch, power-to-liquid, etc.).

›› The Company estimates that products delivered in 2022 will

see their life-time emissions reduced by around 14% thanks
to the gradual introduction of SAF during their operational
life (compared to a “no SAF” scenario). This considers a SAF
penetration scenario aligned with the IEA SDS (ETP2020),
and with the Company’s scope 3 disclosure and SBTIvalidated 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 forTomorrow” coalition, and in the Coalition for the Energies of
the Future.

Actions need to be global and associated with regulatory frameworks
and incentivisation schemes. It is necessary to create market emergenceconditions:give visibility and confidence to producers, be capable to attract
investors;
give access for end users (airlines) to enough volumes at a fair price,and maintain a level playing field for aviation.
Positive momentum is seen in the European Union 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 collaborative platforms suchas Commercial Aviation Alternative Fuels Initiative (CAAFI) in the US.

›› As a member of ICCAIA (through ASD), the Company has

As of 2022, 38 countries have implemented SAF policies to support theindustry’s ambition, according to IATA.

›› In the UK, the Company is a member of the Jet Zero Council---

This also includes partnerships with producers such as theagreement signed in 2022 with Neste, aiming to accelerate theaviation sector’s transition to SAF.
actively supported the activities of ICAO defining the 2050
net zero carbon long-term aspirational goal for civil aviationand continuously contributes to the Committee on Aviation
Environmental Protection (CAEP) on SAF.

›› The Company contributed to the 2019 study from which the
French SAF roadmap was developed.

under which a SAF delivery group has been put in place.

Regarding SAF production, the Company supports CORSIA’s standard emphasising the necessity to respect land rights andland use rights including indigenous and/or customary rights. The Company is committed to complying with local regulations
and CORSIA’s standard for its own usage.

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

Strategic pathway 3

01
01

Investing in technologies to reduce product emissions

Disruptive engines and airframe to further reduce emissions
On the engine side, the Company is closely following innovations comingfrom the engine manufacturers, and supporting them to adapt their latest
innovation to aircraft needs.
The wings are often referred to as the second main lever to reduce
aircraft emissions. Several technologies are being studied such as:
the Company’s transnational research & technology programme,“wing of tomorrow”, has successfully delivered a first full-size wing
prototype or “demonstrator” that will help mature next-generation wingtechnologies;
the completion of the first of three fully composite wing demonstrators
marks the integration of more than 100 different component andmanufacturing technologies that include an all-new industrial assembly
system, and which have helped validate key automation targets;
wing of tomorrow is particularly efficient thanks to the incorporation oflighter composite components and of a folding wing tip.

----›› In July 2022, the Company partnered with CFM to test flightthe “open fan” technology. The open fan architecture is a key
component of the engine maker’s “revolutionary innovation
for sustainable engines” (RISE) technology development
programme – aims to demonstrate and mature a range of
new technologies for future engines that could enter service
by the mid-2030s.

The open fan engine will be tested on an A380 in the second
half of this decade.

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

September 2021, improves wing aerodynamics andperformance that is intended to be compatible with any
future aircraft configuration and propulsion system to reduce
CO2 emissions.

In April 2022, The Company completed wind-tunnel testing of
its eXtra performance wing demonstrator.

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 a significant 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 anefficient hybrid electric propulsion chain powered entirely by hydrogen;hydrogen can be used to create eFuels (power-to-liquid or powerbiomass-to-liquid synthetic fuels in combination with carbon frombiomass or enhanced carbon sink sources).

---

From hydrogen propulsion to hydrogen-based synthetic SAF, frompod configuration to blended-wing aircraft, the Company is evaluating,maturing and validating radical technological breakthroughs.

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

›› Progress was made in key areas in 2022:-- the launch of the hydrogen combustion engine A380based demonstrator, in partnership with CFM;-- the iron pod of a first fuel cell powered engine is readyto be tested in the EAS test house, and the launch of its
associated demonstrator, also based on a modified A380;›› the launch of the Blue Condor demonstrator to study andassess the impact of non-CO2 emissions induced byhydrogen combustion;›› the launch of “Zero-Emission Development Centres” around
Europe (France, Germany, Spain in 2021; UK in 2022), andthe first prototype of cryogenic tanks -and coldbox- tested
with nitrogen and then hydrogen.

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

Foster hydrogen ecosystem readiness
The Company goes beyond technology maturation by collaborating with the wider ecosystem, and focusing primarily on the evolution ofmarket needs and how they can be answered with low-carbon hydrogen. It has engaged in many partnerships, as well as collaborations
and alliances with airports, airlines, and energy providers. Hydrogen can only become a substantial decarbonisation lever with thesupport 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 otherindustries, 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 ecosystem challenge (Multi-Parties Strategic Partnerships)›› The Company promotes the “H2 Hub at airport” concept in which partners will join forces to adapt the infrastructure to the use ofhydrogen by 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, Vinci, Engie, AREC, group ADP, Bristol Airport, Hynamics, Hydrogen South West, SAVE SNAM and Milan Airport.

Electric flight
The Company’s work in electric flight has laid thefoundations for the future concept of lower carbon
commercial aircraft. Since 2014, the Company has been
exploring how recent technology advancements – frombattery capacity and autonomy to electric propulsion –can help drive the development of new kinds of aerial
vehicles with the potential for significantly reduced
impact.

›› In 2022, the Company partnered with Renault Group to advance research on

EcoPulse. The Company has partnered with Daher andSafran to develop a distributed hybrid-propulsion aircraft
demonstrator with the support of France’s CORAC and
DGAC and for which it is providing battery technology
and overseeing aerodynamic modelling.

›› The Company is also investing in the required facilities to test these new

Urban air mobility ambition. The idea for a compact“flying taxi” first came from the Company’s desire to takecity commuting into the air in a sustainable way. The
Company has learned a lot from the test campaigns withtwo demonstrators, CityAirbus and Vahana. Beyond thevehicle, the Company is working with partners, cities;
and city inhabitants in order to create the ecosystemthat is essential for this new operating environment todeliver a sustainable service to society.

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Airbus / Universal Registration Document 2022

electrification and mature technologies associated with next-generation battery
systems. Engineering teams will focus on energy storage, which remains oneof the main roadblocks for the development of long-range electric vehicles.
This includes technology bricks related to energy management optimisation
and battery weight improvement, and looking for the best pathways to movefrom current cell chemistries (advanced lithium-ion) to all solid-state designs
which could double the energy density of batteries in the 2030 timeframe.
technologies. Inaugurated in 2019, the more than 3,000m2 E-Aircraft System
House (“EAS”) is the largest test house dedicated exclusively to alternative
propulsion systems and fuels in Europe. This means the Company can now
test the latest electric motors and hybrid-electric engines directly on its own
premises, and develop its own low-emission alternative propulsion units.

›› In May 2018, the Company created the Urban Mobility entity to take its

exploration into cutting-edge commercial urban air mobility solutions andservices to the next level.

›› The CityAirbus NextGen revealed in September 2021 strikes a balance
between hover and forward flight. This product vision is intended to target
the first markets/use cases and support the creation and maturation of thetechnology, business and industry.

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

Strategic pathway 4

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”), while working on disruptive practices
like formation flying. The Company also focuses on developing fuel saving
procedures for airports and ground operations to minimise the use of engine
power and auxiliary power units (“APU”) while the aircraft is on the ground.
The Company organises face-to-face forums and webinars every year withairlines to exchange knowledge on how to improve ground and in-flight
operational efficiency and using latest technological solutions. Namely, a “fuelefficiency network” has been developed with representatives of the ecosystem
including airlines, ATM, engine manufacturers, airports and suppliers.
In November 2019, the Company launched the fello’fly project which aims todemonstrate 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 thesmooth updraft of the air it creates. This provides lift to the follower aircraft,allowing it to decrease engine thrust and therefore reduce fuel consumption in
the range of 5-10% per trip.
Through its subsidiary Navblue, the Company provides services helping its
customers to minimise fuel consumption with best operational practices,innovative services and training.
Through its subsidiary Metron, the Company provides solutions to airports,
authorities and airlines to optimise air traffic management taking into accountlive congestion and weather condition data, hence reducing engines’ running
time and fuel burnt. In 2022, flights in the airspace of nine countries could
benefit from it.

Strategic pathway 5

01
01

Investing in smart air traffic management (ATM) solutions and optimised operations›› Coordinated by the Company in the Single European

Sky ATM Research programme (SESAR), ALBATROSS
launched in 2021, is an initiative of major European
aviation stakeholders to demonstrate how the technicaland operational innovations the Company delivered in
the past years can be combined and used all together
to further reduce the environmental footprint of aviationon the short term. It includes technologies suchas continuous climb and descent operations, flighttrajectory optimisation with real-time transmission of
four-dimensional trajectory data and hybrid “taxibot”
assistance on ground operations.

›› By end 2020, the Company’s fello’fly demonstrator

project had signed agreements with two airline
customers, Frenchbee and SAS Scandinavian Airlines,
as well as with three Air Navigation Service Providers(ANSP) – France’s DSNA (Direction des Services de laNavigation Aérienne), the UK’s NATS (National Air Traffic
Services) and European Eurocontrol – to demonstrate its
operational feasibility. In November 2021, two A350 test
aircraft conducted the first-ever transatlantic fello’fly flight
confirming the potential for fuel savings of more than 5%
during long-haul flights.

›› In 2022, Metron’s ATM optimisation solution deployment

was further extended to Qatar and expanded in
Singapore. It is estimated that some 2Mt CO2 were
avoided in 2022 by the global fleet thanks to thisinnovation.

Encouraging temporary CO2 emission compensation schemes

Finally, CO2 emission compensation will be instrumental to stabilising 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 market-based 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 to be meaningful in carbon
schemes applicable to aviation at some point. It involves capturing CO2
emissions directly from the air using high powered fans. Once removed fromthe air, the CO2 can be used to produce power-to-liquid SAF that is dropin compatible with today’s aircraft. As the aviation industry cannot capture
CO2 emissions released into the atmosphere at source, captured atmospheric
CO2 can also be safely and permanently stored in reservoirs within rockformations. This latter carbon removal solution would allow the sector to
extract the equivalent amount of emissions from its operations directly fromthe air, thereby removing residual emissions.

›› In 2021, the Company and a number of major airlines– Air Canada, Air France-KLM, easyJet, International
Airlines Group, LATAM Airlines Group, Lufthansa Groupand Virgin Atlantic – have signed Letters of Intent (LoI)
to explore opportunities for a future supply of carbon
removal credits from direct air carbon capture technology.

›› In 2022, the Company partnered with 1PointFive andpre-purchased 400,000 tons of carbon removals (seeOffset Strategy above). 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 theworld.

Non-CO2 Effect Impacts
Aircraft engines produce 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 CO2, nitrogen oxides (NOx), water vapour (H2O), nvPM
(non-volatile particulate matter of black-carbon or soot),sulphur oxides (SOx) and condensation trails. Depending upon
prevailing weather conditions, altitude and geographical location,
non-CO2 emissions can change the chemical composition of
the atmosphere and the cloudiness, which in turn affect theclimate. CO 2 emissions contribute to increased atmospheric
CO2 concentrations, which induce a low and positive radiative
forcing, but with cumulative effects due to the long lifetime ofthis 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 short-lived components thathave stronger, but time-limited effects. Uncertainties are stillhigh on the exact impact of non-CO2 emissions of aviation. Lee
et al. 2020, states that uncertainties around the contribution of
non-CO2 emissions on aviation’s net effective radiative forcing(ERF) are ~8 times higher than those of CO2.
Non-CO2 emissions can have both positive and negative radiative
impacts. In particular, contrail-cirrus can have large cooling or
warming effects depending on several factors such as theirlocation and time of generation, spatial coverage, lifetime, or
optical properties (ice crystals size, shape, density), though theeffect at night is exclusively warming.

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

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 ECLIF and VOLCAN projects included a DLR’s
Falcon aircraft, flying within 100m behind the Company test
aircraft fuelled with 100% SAF, to capture and analyse in-flightdata. The preliminary observations show a positive impact of
SAF on aircraft emissions, and the tests will continue in 2023;–– 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 announced in 2022
its participation in the Contrail Impact Task Force, a crosssector cooperation led by the RMI (Rocky Mountain Institute)
to explore opportunities to address the warming impact ofcertain contrails. It also submitted a project proposal in theframe of SESAR 3. If selected – expected early 2023, as
expected, the Company’s project (due to start in 2023) 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 ATC level. The project willbring 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 non-CO2 emissions.

Products and Services Supporting Climate Monitoringand Adaptation
Climate change-related disasters are set to become more
intense and frequent. This will require immediate action fromrescue teams for whom the Company’s products play animportant role. For instance, the Company’s helicopters areused by public authorities 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.
Military aircraft platforms can play a crucial role in the protectionof populations from natural disasters, such as for example
during the aftermath of hurricane “Irma” in 2017 when several
European nations used their A400M and C295 aircraft totransport first aid and humanitarian equipment to several
impacted Caribbean islands. In July 2022, a removablefirefighting demonstrator kit was successfully tested on the
A400M airlifter during a flight test campaign in Spain. Due to
its low-level flight capability and manoeuvrability at low speeds,
the A400M can accurately drop payloads of water at very low
heights, down to 150ft.

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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 in development. As climate adaptation entails preparing
for natural disasters, this critical geospatial data enables
the Company to deliver data that helps governments andhumanitarian agencies predict and manage disasters. Earthobservation satellites allow the monitoring of deforestation,rising sea levels and GHG emissions in the atmosphere. The
Company is involved in all major environment-monitoringsatellite programmes in Europe and plays a key role in all
12 of the Copernicus missions, the EU’s Earth Observation
Programme. For instance, the Sentinel-5 Precursor satellite is
fitted with an array of measuring equipment used for air quality,
ozone and ultra-violet radiation, and climate monitoring andforecasting. Sentinel-5P takes up to 40 million observations per
day and provides a much finer view of emissions than previous
satellites or detectors on the ground.
In 2022, the Company has progressed on the development andtesting of new technologies that will be featured on biomass,
the first ever satellite that will report how much CO 2 is capturedby the world’s forests. The spacecraft will deliver accurate
maps of tropical, temperate and boreal forest biomass andchanges in the biomass stock that are not obtainable by groundmeasurement techniques. In arid areas of the planet, it will see
through to the underlying bedrock, enabling mapping of therock structure and search for subterranean reservoirs of water.
Upcoming missions also include EarthCARE, monitoring theimpact of clouds and tiny atmospheric particles (aerosols)on atmospheric radiation; Merlin, studying GHG and global
warming; and Microcarb, measuring CO 2 levels.
The Company’s satellite-based services help support amore sustainable agriculture. They provide insights enabling
reduction in the use of nitrates, and play a significant rolein helping agro-industrial companies like Ferrero or Nestlémonitor adherence to their non-deforestation commitments.
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.

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

01
01

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), R&T, and R&D expenses is linked to its commercial aircraft activities and the realisation of these five decarbonisation
pathways. In 2022, the total R&D spend of the Company amounted to € 3.1 billion (2021: € 2.7 billion).

Progress and Performance
In 2022, the Company delivered 661 commercial aircraft. Of note, the emissions of five 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 “otherproducts” category. Based on an average life-time in service of around 22 years (average life-times specific to each aircraft type wereused in the calculation), and SAF uptake assumptions as per IEA-SDS scenario 2020, the total CO2 emissions for these products
over their anticipated life-time is estimated at around 425MtCO2e, which translates to an average efficiency of 64.4gCO2e perpassenger-kilometre. In 2021, the Company delivered 611 aircraft with resulting estimated life-time emissions of around 400MtCO2e
and average efficiency of 66.3gCO2e per passenger-kilometre.
100
90

88.8

80
70

64.4

60

Target

50
40
30
20
10
0
2015

2020

2025

Linear extrapolation to target

2030

2035

Actual deliveries' average lifetime efficiency

Intensity metric bridge (gCO2e/RPK - 2022 datapoint)

+13.4
61.5
Emissionslinkedto fuelproduction

Intensity as per
2021 disclosure

-10.5
64.4
SAF
benefit

SBTi-aligned
intensity metricAirbus / Universal Registration Document 2022

83

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

In 2022, in order to align with SBTi-validated target methodology,
the Company established a new efficiency metric that will be
used for performance measurement. Namely, the difference inthe two efficiency metrics can be explained by differences in
the following two key assumptions: the integration of emissions
related to the upstream fuel production and the considerationof the likely usage of SAF over the product lifetime, as per the
IEA-SDS assumptions, as illustrated on the chart for the year
2022. The Company estimates that products delivered in 2022
will see their life-time emissions reduced by around 14% 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, aircraft
efficiency measured through this metric has improved by 27%,
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 ofeach 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. The Company intends to develop means
to monitor the actual availability of SAF and the resulting impact
on aircraft emissions.

3. Supply Chain Engagement
CDP Engagement
Suppliers responding to CDP questionnaire

Target2022 Performance

Maintain at least 75%
of sourcing volume (based on year-1 turnover)78%+3p.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 into thetransition towards a low carbon economy also remains a priority.

Scope 3 Purchased Goods and Services
In 2021, the Company published a first evaluation of the GHG
emissions arising from the goods and services it purchases(Scope 3 – Purchased goods and service) based on its 2020
spend that amounted to 11.3 MtCO2e. In the course of 2022,
the calculation methodology has been refined which resulted
in a reduction of 12.5% of reported emissions to 9.9MtCO2e.
Following similar assumptions, emissions based on 2021 spentwere estimated at about 8.4MtCO2e. 2022 estimates will becomputed in early 2023 as spent data consolidation is completed.
These evaluations were performed using a dedicated tool
developed by the International Aerospace Environmental
Group (IAEG) and are expected to be further refined in the
coming years as mass-based information can be used. 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 numberof emissions factors used – it provides a relevant view of thesources of GHG emissions in the Company’s supply chain
and enables comparison of the Company’s various scopes
throughout its supply chain.
Notably, this evaluation helped prioritise the engagement with thehighest contributing suppliers, through the CDP (see hereafter) or
the Airbus Supplier Code of Conduct (see “– 1.2.15 Responsible
Supply Chain”).

CDP (formerly Carbon Disclosure Project)
In addition, the Company considers a CDP score as a relevant
indicator for assessing the maturity of its suppliers to address
climate change, and requests its main suppliers to respondto the CDP Supply Chain programme on an annual basis. In
2022, it continued engaging with suppliers representing 82%
of the Company’s total sourcing volume, following which
suppliers representing 78% of the Company’s sourcing volume
have completed the CDP questionnaire. In 2022, suppliers
representing 66% of the sourcing volume received an A or B
score.

84

Airbus / Universal Registration Document 2022

Sending feedback letters to all suppliers after the 2021 campaign
has allowed the Company to raise the awareness of suppliers andpropose areas of improvement. From the 2022 campaign results,
the Company is going to request multi-year action plans fromsuppliers that got a C or D score in order to foster improvementin the management of their carbon footprint. These action plans
will be followed up by the procurement organisation.

4. Employee engagement
Contribution of Company Culture and Employee
Engagement to Climate Objectives
Success can only be collective and the engagement of eachand every employee is necessary. Environmental targets andobjectives, including the ones related to climate, are internallypromoted under the label high5+. Periodic communication
campaigns are led using different communication channels, suchas posters and the intranet. In addition, climate-related objectives
are part of the Company Top Company Objectives (“TCO”). In theprocess of being cascaded to functions and teams, TCO’s trigger
discussions where teams reflect on how and to what extent they
can contribute and set meaningful objectives. Furthermore, adedicated section in the Company’s intranet provides information
about the Company’s commitment towards climate, andrelated action plans are available for employees to expand theirawareness. On the training platform, e-learnings in relation toclimate, such as “climate crisis”, “climate science”, or “climatechange economics”, are freely available to employees while one
environment-related e-learning has been included since 2022
in the Company mandatory yearly training plan, applicable toall employees. From October 2021 to September 2022, some
73,457 employees were trained in environmental awareness.
Since 2021, the Company has established a global sustainability
ambassadors network now comprising 448 ambassadors fromacross 18 functions and 18 countries. Ambassadors help to foster
sustainability culture and awareness, engage their local teams
in various initiatives, and support the adoption and integrationof sustainability objectives into the business, including climate
and communities. In addition, in 2022, through the Company’s“+impact” digital platform (launched across the Company inNovember), employees had the chance to participate in several
climate change-related challenges inspired by international days
such as World Water Day and UN Earth Day, recording over 1,700
individual actions (see “– 1.2.16 Community Impact”).

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

Incentivised Remuneration
In order to better embed this ambition into the Company’s
performance management, CO 2 performance targets havebeen included in variable remuneration schemes since 2021
(See “– 1.2.1 The Company’s Approach to Sustainability –Governance”). Such short-term incentivisation enables toaccelerate the transformation of the Company and culturalshift. The Executive Committee agreed in 2021 to include a
reduction target for 2022 (compared to 2021) of -5% for CO 2
Scopes 1 & 2 (TCO scope, see above), part of the Top Company
Objectives. The 2022 target was overachieved with an actual
performance of -8.5%. This target was set in absolute value
at 687kt CO2e for 2023 (or -0.9% vs. 2022). In addition, whenrelevant, the transposition of TCOs into individual or teamobjectives may impact the variable remuneration of concerned
employees, such as engineers working on decarbonisationrelated 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 beable to deliver 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% ofengineering profiles will have to be upskilled by 2030. “Clean
and Sustainable Aerospace” is identified as one critical skill
group in the Company’s competence strategy. Specifically,
identified skills requiring priority action are: hybrid propulsion,hydrogen, electrical high voltage, cryogenics – directly related
to decarbonisation innovation – as well as supply chain
environmental impact analysis or eco-design. Dedicatedlearning paths are being developed and deployed under theleadership of academies in the Company functions. In addition,
when needed, targeted external recruitments will enable theCompany to align its workforce skills with its business challenge.

5. Engaging the Ecosystem
Cooperating with the Scientific Communityand Universities
Climate change is a critical challenge for humanity, and theCompany believes innovation and technology can bring somepieces of the solution. Achieving this common goal will require
all forces from the scientific community to be joined. Hence theCompany 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 ONERAor the Montpellier Business School in France, the Denmark
Technical University in Denmark, the Massachusetts Instituteof Technology (MIT) in the USA, 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 ofthe design, innovative technologies. In 2019, the partnership
was renewed and adopted the main learnings of prior years
all while integrating a more comprehensive environmental
engineering approach. The CEDAR Chair is composed of01
01

international 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
air transport. It also provides a research component that
focuses on technological developments that will improve theimplementation of air transport solutions, making it possible
to reduce the global ecological footprint.

Engaging with Policy Makers
Leveraging on the Company’s unique understanding ofaerospace industry specificities, the Company is engaged in aconstant dialogue with policy makers, directly or through tradeassociations. Such engagements are performed in compliancewith the Ethical business conduct principles described in
section “– 1.2.14 Business Integrity”, the Company’s Code of
Conduct and the Company’s Responsible Lobbying Charter.
In 2022, as a member of the industry association ICCAIA
through the ASD, the Company actively participated in theInternational Civil Aviation Organization’s (ICAO) work to define
guidance, standards and recommended practices aimed atminimising 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 in October. At
European level, the Company has engaged with the European
Commission on climate change policies discussions such as the“ReFuel Aviation” initiative as part of the “Fit for 55” regulatory
package. At national level, the Company has engaged withFrance, Spain, UK and Germany in order to exchange onfederal policies on climate change. In particular in France, theCompany has cooperated with the CORAC (Conseil pour la
Recherche Aeronautique Civile) on research for technology andfuels. As well, in 2022 the Company has directly discussed with
the European Commission supporting the development of acarbon removal framework with high environmental integrityin Europe. The Company’s positions on climate-related topics
are consistent with the principles and axis of the transformation
described in its transition plan, where it considers that emerging
regulatory frameworks could be a decisive enabler.

Other Initiatives
The Company is also engaged in a number of initiatives
addressing its “less material” carbon footprints where relevant.
When 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 CO 2 savings.
Scope 3 commuting – In 2022, in partnership with Toulouse
Métropole, Tisséo (the local transport authority) and SopraSteria, a smartphone application called Ecomode wasdeveloped to incentivise the shift to collective commuting(e.g. public transport and car sharing) or low-carbon individual
mobility modes (e.g. bicycles). This has been deployedamongst employees in Toulouse and is of potential benefit to
the citizens of all 37 municipalities of the Toulouse Métropole.
Such an initiative benefits both the Company and the whole
local community. At site level, cycling to work is encouraged
by improved infrastructures, cycling paths made safer in

Airbus / Universal Registration Document 2022

85

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

collaboration with local authorities, and periodic “cycle to work”
events organised. Car parks are being equipped with charging
devices to encourage the use of electric cars, and Company
car policy has evolved in order to incentivise the selection of
low-carbon vehicles by collaborators.
Airseas – Through its Airseas joint-venture, the Company is
co-developing kite solutions for sea vessels as complementarycarbon-free propulsion, with a potential to ultimately equip asignificant part of the global maritime fleet and generate up to
20% emission savings.
Climate adaptation, supporting local communities – Throughits Community Impact Policy – including corporate activities andits 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 incollaboration with local knowledgeable associations, as wellas with partners that have a global reach. Support can take theform of fund-raising, the coordination of humanitarian flights
using Company products or logistic aircraft, and providing
satellite imagery for partners to properly assess a disaster’s
scope and adapt their response plans. For instance, in 2022 theAirbus Foundation organised humanitarian missions, including
providing free-of-cost chartering of air transport, in response to
Cyclone Batsirai in Madagascar, Cyclone Rai in the Philippines
and also following the flooding in Pakistan. A mission was alsoorganised to deliver medical supplies to populations in Somalia
impacted by severe famine. Over 43 satellite image requests
were made on the dedicated portal platform, with partners
conducting monitoring including flooding and weather impacts.
For more detailed information see “– 1.2.16 Community Impact”.

1.2.3 Pollution
I.

Introduction

Linked to the industrial nature of its operations, the Company’s
activities may cause adverse impacts on the natural environment.
The Company strives to reduce this impact in compliancewith applicable standards, laws and regulations. As coveredin this section, pollution includes air pollution (except GHG,
see “– 1.2.2 Climate Change”), soil pollution, water pollution(surface and groundwater) and noise pollution caused by theCompany’s activities and value chain. Pollution linked to theemission of volatile organic compounds (VOCs) is a primary
focus of the Company, as it arises from aircraft painting andcleaning activities. Light pollution has been deemed to be nonmaterial to the Company’s value chain. Pollution may impact
the Company primarily through the potential consequencesof business disruption arising from constraints on activities in
the Company’s value chain in case of local pollution peaks, forinstance. Eventually, unmanaged pollution risks could disrupt
the Company’s ability to operate, e.g. deliver its products tocustomers or imply depolluting costs.
Pollution is regulated around the world. Overall, the Company’s
compliance with applicable standards, laws and regulations
is part of the operating licences granted by local authorities.

86

Airbus / Universal Registration Document 2022

In this regard, the Company is reportedly 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 in France,
Germany and Spain. This Directive requests operators ofcertain 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 soil pollution
through application of the best available techniques, and takenecessary action upon definitive cessation to return the site to its
initial status. Beyond this directive, the law on soil management
is covered under several national texts which may differ fromone country to another, as well as in the permits issued for theCompany’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 and restriction of chemicals (REACH);
Restriction of Hazardous Substances (RoHS); Persistent Organic
Pollutants (POP); and Biocidal Products.

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

Pollution

GRI

SASB

SDGs

305 – Emissions

9-12-13-17

Highest governance body(ies)involved

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

Related corporate policies

Environmental Policy, Code of Conduct

Management system
Relevant certifications

EMS – Environmental Management System
ISO 14001 – 88% of workforce covered

KPIs
Air emissions:2030 Target

2015
Baseline

2021

2022

2022
vs. 2021

2022 vs.
Baseline

VOC (tons)

0% increase

1481

1,042

1,120

+7.5%

-24%

2021

2022

2022 vs. 2021

NOx (tons)

226

207

-8.5%

SOx (tons)

14

16

+14%

Other key metrics

KPI assumptions

2022 VOC emissions data is estimated. 2022 actuals will be consolidated in April 2023.

Additional resources

Environmental Policy Statement , Sustainability on Airbus.com

II. GovernanceChemical Substances

The Airbus Environmental Policy and overall governance, as
described in “– 1.2.2 Climate Change” applies to the pollution
topic.

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.

III. Risk Management
Environmental risk and opportunities are managed following
the Company’s ERM system, see “– 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 ISO 14001 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 kerozen
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
to surface treatment – are mostly impacted by the number ofdeliveries. Substance substitution may also lead to the use of
new chemicals with more VOC emissions which need to bemonitored. Overall, in 2022, emitted VOCs increased 7.5%
year-on-year, reflecting the increase in aircraft production ratecompared to 2021.

01
01

OthersThe Company remains committed to replacing such substancesin 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 substances, and qualified and deployed
substitutes for over 100 substances in 300 products.
The Company invests substantial time and resources in researchand development for technologies that use alternatives to regulated
substances. When it can be demonstrated that these technologies
meet the strict safety and reliability criteria required for aviation,
the Company seeks to implement them in its aircraft design andmanufacturing. For example, the Company is, in cooperation with
its suppliers, developing, qualifying and progressively deploying
on all its new aircraft, chromate-free corrosion protection andpaint systems for aluminium structures. Another example is thehalon replacement project that researches alternatives to halon,a highly regulated ozone depleting substances family, used in thefire extinguishing systems in engines and cargo areas. Several
fire extinguishing technical solutions are now being tested on
aircraft in flight conditions, with an objective to roll them out into
production from 2027.

Airbus / Universal Registration Document 2022

87

1. Information on the Company’s Activities /1.2 Non-Financial InformationNoiseseeking to reduce the noise at the source. In Toulouse, theCompany has launched the Median initiative, regrouping actors
in charge of flight activities around the airport to find the mosteffective solution to reduce noise levels.

Noise around the Company’s sites can also be an important
topic for neighbouring communities. The Company is actively
engaged with local authorities and the affected populations tominimise its impact, by adapting operating times and actively

1.2.4 Materials and Circularity
I.

Introductionof range and fuel consumption, and therefore has a benefit
for customers’ expectations and the Company’s order book.
Optimising the use of such high-value materials is directly linked
to the Company’s competitiveness, while securing their supply,as they become scarcer, is necessary to ensure business
continuity.

The Company recognises the challenges associated with
depleting natural sources. 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”).

Nevertheless, 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 apply to 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.

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 can figure
among the main users for some highly specialised materials
such as titanium or CFRP. The use of these materials, and theimpacts associated with their production or end-of-life, arejustified by their contribution to the efficiency of the end product,as they enable lighter structures and more efficient design. Asaround 97% 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 weight
optimisation is largely linked to product performance in terms

Finally, all considerations for optimising material use shall underno circumstance be detrimental to product safety and shall meet
all technical requirements from stringent certification standards.

MATERIALS AND CIRCULARITY

GRI

Highest governance body(ies) involved

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

Related corporate policies

Environmental Policy, Code of Conduct

Management system
Relevant certifications

EMS – Environmental Management System
ISO 14001 – 88% of workforce covered

SASB

301 – Materials

Hazardous Waste Management

Others9-12-13-17

2030
Target2015
Baseline

2021

2022

2022 vs. 2021

2022 vs.
Baseline-20%

107,986

71,15273,751+3.7%-31.7%

2021

2022

2022 vs. 2021

% Material recovery rate

55%

60%

+5p.p.

% Energy recovery rate

20%

16%

-4p.p.

KPIs
Waste produced
excluding exceptional waste (tons)

with no landfill or incineration
without energy recovery

Other key metrics(More metrics and assumptions, see “– 1.2.17 ESG data board”)

Additional resources

88

SDGs

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

Airbus / Universal Registration Document 2022

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. 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.

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

In 2022, non-exceptional waste increased by 3.7%, largely
explained by the commercial aircraft production ramp up context
and people returning to the workplace after the COVID-19 period,
impacting general waste. The proportion landfilled or incinerated
without energy recovery amounted to an estimate of 23%.

IV. Implementation/Activities

Hazardous Waste

The Company’s aircraft products make efficient use of thesematerials by being designed to operate for several decades withhigh utilisation rates, being highly serviceable and repairable,
and ultimately allowing for around 90% of their constituentsby mass to be recovered, including recycling. The Company
promotes the development of a circular economy model, and it isproactive 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.

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 chemical regulations,the evolution of which may impact the roadmap’s ambition for
reducing waste as well as its timing (see Chemical Substances
section in “– 1.2.3 Pollution”).

Metallic waste accounts for more than 30% of the Company’ssite-generated waste. Considering the risk of resource depletion
versus growing demand, the Company has kicked off in 2022
a dedicated transformation project related to the circularity ofcritical raw materials, especially non-ferrous metals, with a focus
on the most 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
The Company also focuses on the waste generated by its
operations throughout the manufacturing process and has set
an objective of reducing overall waste amounts by 20% by 2030
(from a 2015 baseline), with 0% landfilling and 0% incineration
without energy recovery.
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 roadmap. Over the past years, the01
01

Company has focused on metering and on data robustness
and accuracy for measuring waste, with a focus made on
standardising the practices towards waste collectors andin line with regulatory requirements for greater traceability.
The objective is to enhance data monitoring, reporting, andforecasting capabilities. This includes a harmonisation ofdefinitions, processes and assumptions. Priority has been given
to commercial aircraft activities due to the industrial ramp-up.

Increase the Lifespan of Components
The Company’s components are designed to last over the
average aircraft service lifetime, which can exceed 20 years.
Some components, called life-limited parts (“LLPs”), havea shorter lifetime, but still maximised considering physicalresistance, airworthiness and safety requirements.

Repairability – Reuse – Second Life
With regards to LLPs, easy replacement and availability ofparts over the whole programme lifetime are a priority. The
Company’s products are designed to be repaired whendamaged by a number of maintenance, repair and operations(MROs) companies worldwide and spare parts providers. The
Company’s after-sale activities include the sale of spare parts andthe provision of 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, suchas specific loop creation for titanium in order to 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 2022, 20% to 50% of aluminium products
delivered to the Company (highest volume of material in anaircraft) came from recycled raw materials.
Finally, more than 90% of an aircraft’s weight can be recoveredat end-of-life (including material and energy recovery) through aselective dismantling process. For example, TARMAC Aerosave
joint venture, provides such reverse manufacturing services,
including dismantling, sorting, packaging for reuse or sending
to relevant waste collectors while ensuring parts traceability,

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1. Information on the Company’s Activities /1.2 Non-Financial Informationin various locations in France and Spain. A memorandum of
understanding between the Company and the city of Chengdu
was signed in 2022 for the launch of an aircraft life cycle
management service in China. Overall, TARMAC has recycled
over 300 aircraft since 2007.

Life Cycle Thinking and Conscious Design
The Company invests in LCAs for environmental impact
accounting associated with a specific product, in accordancewith the requirements specified in the ISO 14040 standard.
Detailed LCA studies have been finalised for the A220-100,
A220-300, A320neo and A350-900, covering over 95% of theCompany’s deliveries of commercial aircraft products in 2022.
The Company is currently working together with the European
Union Aviation Safety Agency (EASA) in the frame of the ProductEnvironmental Footprint initiative on the framework, to enable
the publication of verified and standardised data in the future.
In addition, the Company is deploying frameworks enabling
environmentally-conscious design choices to reduce the footprintof projects and optimise aspects such as product end-of-life
management and critical raw materials usage. For instance,
in 2022 environmental assessments have complemented
research & technology decision-making processes related tocommercial aircraft activities. Besides, as an example and partof its Eco-design initiative, the Defence and Space Division used
LCA for the development of the Sentinel satellites that are built
for the ESA. The Company’s Defence and Space Division is
engaged in a strategic transformation process which will focus
on increasing the circularity of its products, and expanding its
product environmental impact assessment capabilities to include
topics such as hybrid propulsion. These assessments would
be performed in addition to the regular LCA assessments forsatellites.

Digitalisation, Traceability and Criticality Mapping
The Company leverages digitalisation as an enabler to optimise
and reduce its environmental footprint. For example, some
applications seek to improve design and material utilisation,or to optimise usage of critical resources. At the same time,
traceability of parts is essential to facilitate recycling. The
Company reports on marking parts to facilitate the ability toreuse, recycle, and repair, while complying with legal provisions
applicable to the sector. In addition, the Company has launched
a dedicated traceability project to increase data availability andtransparency from the aircraft “Bill of Materials” and leveraging
on digital capabilities in collaboration with its supply chain.
As recommended by the EU Critical Raw Material (“CRM”)
framework, the Company has created and is maintaining
a dedicated Company framework – CRM. It is an internal
methodology to assess that criticality of raw materials has beendeveloped 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
to influence design choices. The mapping of CRM in Company’s
products is currently ongoing, based on available bill of materials,
in the frame of an internal project. Additionally, the methodology
is currently being reviewed and improved by an external party,prior to being delivered in 2023.

Competence Management
Circularity is a part of the Company’s sustainability andenvironment competency strategy. Accordingly, related training
modules have been identified and are in the process of being
integrated in the Company’s training catalogue.

1.2.5 Water
I.

Introduction

The Company’s water usage is mostly linked to non-industrial
uses, including sanitary, heating, ventilation and air conditioning,canteens and fire extinguishing. Around 15% of the water
purchased/withdrawn is used for industrial uses such as surface
treatment, machining, non-destructive testing and painting. Thissection covers both withdrawal and discharge.
Water consideration is included in the Company’s LCA approach.
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.

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The Company analyses current and projected local water stresslevels to understand where the Company’s activities have thegreatest impact on water resources and prioritise actions inthese areas (e.g. south of Spain, northern China). This analysis
is based on the World Resources Institute’s Aqueduct Water
Risk Atlas tool. Of note, the Company has also identified water
as a relevant topic in its supply-chain roadmap and is currently
assessing water-related impacts and risks in the supply chain.
Due diligence aspects with regards to the potential environmental
impact 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 Executive Steering Committee

Related corporate policies

Environmental Policy, Code of Conduct

Management system
Relevant certifications

EMS – Environmental Management System
ISO 14001 – 88% of workforce covered

Target2030

Baseline
2015

2021

2022

2022
vs. 2021

2022 vs.
Baseline

Water purchased (m3)-50%

3,323,228

2,631,363

2,889,557

+9.8%

-13%

Water withdrawal (m )0% increase

3,766,153

3,345,261

3,672,217

+9.8%

-2.5%

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

2021

2022

2022 vs. 2021

Percentage of water withdrawal from all areas with high water stress(1)

34%

30%

-4p.p.

KPIs

01
01

OthersWater:

3

Metrics assumptions

Areas identified with high or extremely high water stress. Water stress level as defined per the
Aqueduct Water Risk Atlas in medium scenario for 2030.

Additional resources

Environmental Policy Statement , Sustainability on Airbus.com(1)

II. Governance
The Airbus Environmental Policy and overall governance, as
described in “– 1.2.2 Climate Change” are applicable to water.

III. Risk Management
Environmental risk and opportunities, including the ones related
to water, are managed following the Company’s ERM system, as
described in the section “– 1.2.2 Climate Change”. In addition,water has been identified as relevant to climate change physicalrisks: work is ongoing to update the above-mentioned risks inline with the TCFD.

The Company’s water usage is mostly linked to sanitation andgeneral uses (around 85%), while the rest is used in productionrelated processes. The underlying approach is to reduce theuse of potable water for uses where it is not necessary, while
ensuring that the overall withdrawal does not increase. While allconcerned sites are working towards these targets to ensureadvanced water management practices are implemented, akeen focus is put on areas with current or future high water
stress levels. For example, local water stress levels are used
as a criterion for prioritising the funding of projects (OpEx and
CapEx) and for selecting sites for the launch of pilot projects (e.g.
proof of concept launched in Illescas (Spain) on digitised andautomated water consumption real-time monitoring).

IV. Implementation/Activities
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;–– 0% increase in water withdrawal.

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

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

Description and rationale

Measure/Metre

Installation of smart water metres with automated and digital data transfer,
Measuring as a prerequisite to
identify water flows and manage high frequency and increased granularity (e.g. commercial aircraft sites andAirbus Defence and Space Division sites in Europe).
consumption.

Monitor

Track consumption, identify
biggest consumers to focus
priorities; detect deviations.

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

Avoid waste

Identify and fix leakages,
reconsider processes.

Leakage detection campaigns at Blagnac (France) and Mirabel (Canada) sites.

ReduceIncrease efficiency; equipment
retrofit.

Implementation of latest technical solutions for cooling at Illescas site (Spain),
air conditioning, boilers and sanitary equipment retrofit at Puerto Real site
(Spain), replacement of water chiller with air-cooled systems in Portsmouth(UK), reduction of irrigation at Miami (US) and Tianjin (China) sites.

Reuse

Create (closed) loops; use
the same volume several times.

Reuse for non-drinking purposes (e.g. toilets, gardening), industrial processwater loops for surface treatment and air conditioning.

ReplaceUse rainwater, surface water,
groundwater.

River/lake water treatment and reuse at Hamburg and Friedrichshafen sites(Germany), rainwater harvesting at Toulouse site (France), groundwater use atDonauwörth site (Germany).

Ensure high water efficiency
New Building Design standards from the designphase.
Communication

Inform and engage employees.

Examples of projects

Certified building standards, e.g. LEED (Silver certification, Mobile site, US).
Employee awareness campaigns (e.g. World Water Day communication oninternal portal).

In 2022, water withdrawal volumes increased by about 10%compared to 2021, mainly as a result of people returning to theworkplace after the COVID-19 period. When compared to 2015baseline, water withdrawal reduced by 2.5% while purchased

water dropped by 13%. In 2022, leaks were identified and fixedin Blagnac (France) and Mirabel (Canada), with an estimatedimpact of less than 2% on total water withdrawal.

1.2.6 Biodiversity
I.

Introduction

The Company recognises the considerable pressure planet Earthis facing as a result of loss of biodiversity. The latest 2019 reportof the Intergovernmental Science-Policy Platform on Biodiversity
and Ecosystem Services (“IPBES”) demonstrates that the healthof ecosystems is deteriorating more rapidly than ever 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 the updated andnew goals and objectives for biodiversity. These include the onesfor 2030 and 2050 agreed at the 15th Conference of the Partiesof the UN Convention on Biological Diversity in December 2022,
in Montreal, according to which all signatory countries should
update their National Biodiversity Strategies and Action Plans aswell as National Biodiversity Finance Strategies. Key goals arealso ones set by the European Union in the EU Green Deal andthe EU Biodiversity Strategy of 2020 that place the European
Union at the forefront of this transformation.

II. Governance
The Airbus Environmental Policy and overall governance, as
described in “– 1.2.2 Climate Change” applies to the biodiversity
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”.

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. In 2022, the Company launcheda project to compile an inventory of potential impacts across thefive drivers of biodiversity loss: changing use of sea and lands,
direct exploitation of organisms, climate change, pollution andinvasive non-native species. Meanwhile, the Company presumes
that the most material biodiversity loss impact is linked to theimpact of its commercial aircraft activities on climate change and,as such, efforts are prioritised alongside the existing climaterelated initiatives. See “– 1.2.2 Climate Change”. In addition, anumber of mitigation actions have been started in relation tothe other drivers.
Pollution: see “– 1.2.3 Pollution”.

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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
and related activities. As for the Company, its operations arelocated at a number of industrial sites. When building a new siteor extending an existing one, the Company engages with local
partners on conservation and remediation projects to preserve
flora and fauna that were impacted by the Company’s industrial
activities. This is done in line with applicable legal requirements.
In France, for instance, during and after construction works,
the Company strives to apply the Avoid, Reduce, Compensate
mitigation hierarchy, as well as establish a budget forcompensation measures that goes beyond the duration of the
project (for maintenance for example). This requires identifying
areas rich in biodiversity (in particular protected species),
identifying the potential impacts on biodiversity, and carrying

01
01

out, if required, the necessary biodiversity inventories and theapplicable deadlines in the timeline 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, the Company through its corporate community work
and its Airbus Foundation has supported a number of biodiversity
projects that aim to help preserve wildlife and natural ecosystems
at a community level, such as contributing to the International
Union for Conservation of Nature (IUCN) forest restoration
project. 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 airtransport system. Flying today is safer than ever before, andcollective efforts continue to ensure that it will be even safer byanticipating and responding to risks, threats and challenges.
While the foundations of the air transport system are built on
regulatory compliance, the safety culture at the Company goesbeyond compliance with certification and continued airworthiness

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

Aviation / Product Safety

GRI

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

SASB

416 – Customer Health and Safety

SDGs

Product Safety

Others12

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

KPIs

TargetHorizon

2021

2022

% SMS officers nominated100%

permanent

100%

100%

% SMS officers trained100%

permanent

100%

100%

2021

2022

0.03 (Gen4)

0.05 (Gen4)

Other key metrics
Fatal accident rate Industry wide(1)

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. Information on the Company’s Activities /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 zero accident”– the Company’s product safety strategy is to:–– implement programmes to continuously enhance thesafety culture to ensure each employee has a personaland collective engagement consistent with the Company’ssafety values;–– provide means so that any employee can report safetyconcerns;–– ensure product safety is a priority in decision making; and–– share lessons learned and best practices with internal andexternal stakeholders, and take action as appropriate also
based on identified top safety threats or opportunities.

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

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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 with its suppliers.
This includes specific SMS forums and initiatives with its
suppliers, which reinforce the collaborative approach for
optimising responses to in-service feedback and reports.
To ensure the safety and quality of parts used in aircraft andspacecraft manufacturing guarantees that the final product willmeet 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 26 flight safety conferenceswith the Company’s customers since the first was held in 1994.
Another means of sharing information is through “Safety first”, theCompany’s safety magazine contributing to the enhancementof safety for aircraft operations by increasing knowledge andcommunication on safety-related topics. It reaches over 1,500
aviation professionals daily via the website safetyfirst.airbus.com
and the Safety-first app. D10X (short for Air Transport Safety,
Destination 10X Together) is another collaborative initiative withairlines. 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 awareness sessions,and development of a safety promotion centre. SMS officers
are nominated and trained in all key business functions to1. Information on the Company’s Activities /1.2 Non-Financial Information

ensure implementation, and operation of the SMS within the
Company, including safety promotion. Since February 2021,
all SMS officers have been nominated and trained. The abovementioned commitment to a just and fair reporting culture isanother example of an initiative that promotes the Company’ssafety culture. These elements are integrated in the Company’s
SMS action plan.

01
01

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 Airbus'
fly‑by-wire family aircraft (including A320, A330/A340, A380,
A350, A220 fleets) are the latest fourth-generation aircraft.

10 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
0.14
0.05

0,0
2000

2005

Generation 2

2010

Generation 3

2015

2020

2022

Generation 4

Fig. 10 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-theart 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 function of the business, with therelevant capabilities and stakeholders, ensures an evolutionary
approach for continued protection against emerging threats
and to support the business in securely enabling its digitaltransformation.

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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
Security Requirements for Company Information & Data Classification and Protection
Security Requirements for Information Systems Management

Related corporate
policies and directives

Security Requirements for Affiliates
Security Requirements for Industrial Automation and Control Systems
Requirements for Product Security
Requirements on Information Security for SuppliersSpecific Requirements on Information Security for IT Service Providers
Manage Airbus Company Security – aligned to ISO 27001 standard

Management system

Monitor, Identify & Report Company Asset vulnerabilities
Assess & Treat Company Asset Security Risk

Key metrics

2021

Number of data breaches reported to data authorities

10

Percentage involving confidential information

100%

N/A

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

67,475

107,808290

437

Corporate and IM Cyber Security headcount

II. GovernanceIII. Risk Management

The Company has undertaken a cyber security transformation
since 2019 with the establishment of a federated modelof digital security encompassing accountable leaders in
respective organisational structures such as IT, engineeringand operations. A dedicated team for security governance wasestablished, reporting to the Company Chief Security Officer(CSO), responsible for the definition and audit of cyber security
directives and methods aligned to major industry standards suchas ISO 27001 or IEC62443. The Company Chief Information
Security Officer reports to the CSO with a direct reporting line to
the CEO. Such an approach ensures localised accountability andreactivity to cyber risks with centralised governance, reporting,technical standards, and processes. Cyber security governanceencompasses both Divisions and global operations plus affiliates.

Confidentiality, integrity and availability are known to define cybersecurity objectives when thinking about systems risks. Corporate
Security is accountable for security risk management and is incharge of defining cyber security risks taxonomy and managing
the lifecycle in ERM, including strategy, organisation, roadmap
and initiatives at company-wide level.

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

Security Governance Directives
Security directives are published and audited to ensure theCompany business follows the same standards for dataprotection and systems security. Key cyber security directives
include the ones listed in the table above (Related Corporate
Policies and Directives).

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In terms of cyber security, risk management is the aggregationof continual risk reporting, cyber security validation processes
embedded within security by design principles for projects,
applications and infrastructures – in addition to the implementationof digital security controls aligned to the Company’s enterprisesecurity architecture standards.
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 operating models. Technical security controls
are implemented and measured in accordance with ISO 27001
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 therollout of endpoint protection and data loss prevention tools, theimplementation of multi-factor authentication, and the adoptionof 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 team (“CERT”) analysing
cyber security threat intelligence and rapidly investigating andcontaining cyber security incidents.

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

Cyber security risk management is under regular internal andexternal audit, confirming processes and implementation to both
the Company’s and industry standards. Technical audits are also
conducted regularly on applications, systems and infrastructuresin the form of cyber security penetration testing.
Technical red-team (offensive) cyber exercises are conducted
minimally once per year for the evaluation of detection andresponse planning. These are in addition to annual cybersecurity crisis simulations for evaluation of business continuity
and reactivity. See “– Risk Factors – Business-Related Risks –Cyber Security Risks'.”

IV. Implementation/Activities
Building upon the enhancements of 2021, a number of key
initiative were undertaken in 2022 to improve the cyber security
position, reduce associated risks and decrease the likelihood of
successful cyber attacks, including:–– maintaining full coverage of core divisional company-issued
laptops deployed with Endpoint Detection & Response (EDR)
tools;–– further enhancing data encryption mechanisms, especiallyfor cloud based security;–– maintaining compliance with existing and evolving cybersecurity regulations, and anticipating future national,
international, and sector-specific cyber security laws;

01
01–– conducting an in-house full red-team cyber exercise forcontinual process improvement and controls maturity. In
addition to a crisis management anticipation exercise arounda ransomware scenario;–– certified Airbus cyber security diploma launched in France,in order to reinforce and future-proof existing cyber security
competency, in addition to building an appropriate pipeline
for future skills and needs. This diploma was validated by
the French administration in charge of delivering professional
certifications;–– such activities have continued to reduce the overall cybersecurity risk, specifically around the increasing threat fromransomware.

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

The Company continues to pursue its zero-harm aspiration. The
safety of its employees and others is its top priority. The Company
aims to improve the health and well-being of its employees
and everyone else who works within the Company perimeter.
Health and safety primarily addresses risk identification, andits elimination or prevention, to promote safer and healthierconditions in the workplace.
Aligned with its ERM process, the Company has identified thefollowing priority topics to manage: mental health and wellbeing,
hazardous substances and materials, working environment, andon-site contractors health and safety management. Associatedmitigation plans are defined jointly by the health and safety andoperational organisations.
The Company is applying the principles of the ISO 45001 forits management systems. The Company risk mitigation plans
follow the recognised health and safety hierarchy of control,
which is hazards elimination, substitution, engineering control,
administrative controls and, as a final measure, personal
protective equipment.

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

The Company shall comply with a wide range of local and international health and safety regulations. It measures its performanceusing company-wide indicators, such as the lost time injuries frequency rate, as summarised in the table below:
Health and safety

GRI

SASB

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

Board of Directors / Ethics, Compliance and Sustainability Committee
Occupational Health and Safety Governance Board (new)Related corporate policies

Occupational Health and Safety Policy A41, Airbus Code of Conduct

Management system
Relevant certifications

Formal Health and Safety Management Systems
ISO 45001 certified sites cover ~25% of employees

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

SDGs

Others8, 12Vigilance
Plan

2021
Published

2021
Adjusted

2022
New Perimeter

3.21

2.28

1.60

4.31

3.26

2.25

-

-

0.046

Near-miss – commercial aircraft business(1)19,305-

Total health and safety training hours delivered

128,795

286,815

28,14490,490Lost-Time Injury Frequency Rate(1)(2)(3)
Lost-Time Injury Frequency Rate – commercial aircraft business(2)(3)

Lost Time Injury Severity Rate – FISH perimeter(3)Number of employees who received health and safety training(4)Number of employees having attended “EH&S Certificate” modules 1 & 2(4)Core entities with ISO 45001 or similar certification% of the Company workforce covered

28,925

1,309

2,214

~one third~one third

25%

25%

Remuneration

A proportion of variable pay for executives and “Level IV” managers is tied to the achievement of the Company
Lost Time Injury Frequency rate target and Lost Time Injury Frequency rate performance also features incalculation of success share payment made to employees.

KPI assumptions

1. The “2021 Published” company frequency rate includes Airbus commercial aircraft business, Airbus Helicoptersand Airbus Defence & Space before the creation of Airbus Atlantic and Airbus Aerostructures as separate
entities.
2. The 2021 Airbus commercial aircraft “Adjusted” figure excludes sites transferred to the newly created Airbus
Atlantic and Airbus Aerostructures entities (formerly Stelia and Premium Aerotec and part of Airbus commercial
aircraft sites).
3. T he FISH KPI perimeter was adjusted in 2022, see section IV. Implementation/activities below for more detail.
4. R eporting period for training-related metrics is from 1 October to 30 September.

Additional resources

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

NB: in 2022, the company rolling FR1 (excluding Airbus Atlantic and Airbus Aerostructures) decreased from 2.28 to 1.60 however
if this perimeter included Aerostructures and Airbus Atlantic, the FR1 decreased from 3.29 to 2.23.

II. GovernanceIn 2022 the Company strengthened its governance of healthand safety by creating a Company Occupational Health and
Safety (OHS) Governance Board. The first meeting in July 2022
was attended by executive representatives of the Company, its
Divisions and regions, and was chaired by the Company’s Chief
Human Resources and Workplace Officer. The mission of theCompany OHS Governance Board is to stimulate continuous
improvement by reinforcing the compliance and performanceoversight required by ISO 45001, and driving the ambition to
improve strategic and operational safety, health and wellbeing,
while considering the needs of interested parties and thebusiness´s sustainability.
A public Airbus Occupational Health and Safety Policy Statement
was signed by the Company’s CEO in 2021. It enhances andreinforces the company-wide Occupational Health and Safety
Policy priorities, principles and key initiatives including:–– the continued identification and management of risks to people
and the business that could arise from work activities;

98

Airbus / Universal Registration Document 2022–– the application of the principles of the International Standard,
ISO 45001, for the Company management system; and–– the development of a culture in which employees takeresponsibility for their own health and safety and that of others.
Approximately one third of the Company’s core entities in homecountries are certified to the ISO 45001 Standard for health andsafety management systems. The Airbus Defence and Space
Division sites have renewed their ISO 45001 accreditation in
2022. Company-wide, this means that about 25% of employees
work on sites where the health and safety management system
is certified to ISO 45001. Other sites operate to the standards
required by the Company Policy and have formal management
systems, even though they may not yet be formally certified.

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

III. Risk management
Occupational health and safety risks are managed using theframework provided in the Company methods for “Health and
Safety Risk Management” and “Incident Management”. Thoserisks that are considered to have a high potential impact, includingin the Company’s affiliates, are reported in the Company’s ERM
system.
The method for risk assessment and control consists of asequence of logical steps to identify significant hazards,
evaluate the risks, and prevent, eliminate or mitigate them. Thisis done following the hierarchy of control principles: elimination,
substitution, engineering control, administrative controls and, asa final measure, personal protective equipment.
The health and safety priority topics identified within the Company
and forming part of the Company Vigilance Plan are:–– hazardous substances and materials;–– working environment;–– on-site contractors health and safety management;–– mental health and wellbeing.
The Company has deployed prevention measures and mitigationplans around these topics.
The mitigation of the risk of exposure to hazardous substancesand materials requires the Company to adhere to risk control
measures when suitable alternatives are not available and subject
to appropriate authorisations. The mitigation plan includes
the application of relevant Company methods of substancesand materials management, the development of surveillance
programmes, and the recording and analysis of all prevention
and protective activity. Late 2022 saw the closure of a five-year
project called REACH-IT, and similar initiatives in the Divisions,aiming at ensuring the compliance of the Company sites with thestringent environment, health and safety conditions describedin the European Union´s REACH Chromates Authorisations.
The project has given the means to local management for
maintaining a high level of protection of employees and theenvironment where chromates are concerned, covering thewhole Authorisation period.
Working environment risks include slip, trip and fall, site roads andinfrastructure, and work at height. These are key areas of focus
for the Company: in particular, working at height considering
the potential outcomes. As part of its risk mitigation activities,
the Company focuses on immediate containment actions
while defining permanent solutions and putting in place robust
monitoring, including at top management level.
On-site health and safety contractor management is anotherpriority topic. Due to its activities, the Company has various
contractors working on its sites for which the interaction andcoordination of activities may generate risks of worker injury or
damage to products or infrastructure. As part of the mitigation
activities, a company-wide method for supplier and contractor
health and safety management (M1243) has been issued. Thismethod sets a standardised health and safety framework forthe selection, approval and management of suppliers andcontractors who perform work for the Company on its worksites. This method is under deployment locally, considering
already existing procedures and in line with local regulatory
requirements.

01
01

Mental health and wellbeing are also topics of attention for
the Company, especially given the increasingly challenging
personal and environmental factors. A management strategy
and mitigation plan have been defined, which include a networkof “Wellbeing Focal Points” and relevant training. Further related
mitigating activities are detailed in section IV. Implementation/
activities below.
The Company’s affiliates report on their health and safety
management status through the ICSA exercise or similar systemin the Airbus Helicopters Division. Their annual report on key
health and safety management system requirements forms partof the ERM process.

IV. Implementation/Activities
The Company’s goal is to enable an environment that’s safeand healthy for all. Risk prevention and promotion of safer andhealthier conditions in the workplace are also key wellbeing
enablers.

SafetyKey risk mitigation activities were pursued in 2022 including thecontinued promotion of the health and safety culture:–– campaigns to support a safe return to work after a long breaksuch as summer holidays;–– “Safety Awards” at site level to motivate and engage employees;–– safety mobilisation days such as the “Winter Road” campaign,
the “Mental Health Day” and “Safety Weeks”, supported by“Level IV” managers;–– widespread “Safety Lab” sessions that prompted proactive
discussions;–– “Safety Box” training held in dedicated spaces raisingawareness about risk prevention. For some years this has
been a successful initiative, allowing employees to express
and engage on relevant safety topics;–– transparent sharing of safety related information, such as
frequency rates and “Flash Alerts”.
The Company also refreshed some existing activities anddeveloped new initiatives, such as:–– mandatory environment, health and safety training in particularat managers level;–– extending the “Safety Ambassadors” network;–– deploying multi-functional safety workshops;–– broadcasting videos to encourage employees to be actorsof their own safety and to declare safety situations using the
FISH tool;–– introducing new topics such as mental health and well-being
in the refreshed version of the “Safety Boxes” for the sites
where all employees have completed the original “Safety
Box”.
Projects such as “People Safety@Work” (PS@W) for theCompany’s commercial aircraft activities, the “We Care” initiativein the Airbus Defence and Space Division extended to nonoperational areas, and the “Safe Together” initiative in the Airbus
Helicopters Division, continue the pursuit of positive cultural andbehavioural change.

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

New harmonised training courses have been, and are being,developed to support culture change and risk prevention,
including:–– health and safety fundamentals – A digital course providing
a high-level overview of occupational health and safety, theregulatory framework and the management system approachin securing a safer and healthier work environment;–– induction training – to guide managers in how to deliver an
effective workplace health and safety induction for new teammembers, also demonstrating the Company’s commitment
to health, safety and wellbeing;
Over 286,815 hours of dedicated health and safety training weredelivered to 90,490 individual employees between October 2021
and September 2022.
Since their creation, around 4,000 employees have attended
modules 1 and 2 of the “Airbus Environment and Health &Safety (EHS) Leadership Certificate”. Between October 2021
and September 2022, 2,214 employees attended these modules.
Modules 3 and 4 have been made available from end 2022.
Successful completion of all four modules will result in an
externally validated certificate in health and safety competence.
Leadership involvement is key in stimulating continual
improvement. More than 180 executives and “Level IV” managers
completed the “Leadership Masterclass on Environment and
Health & Safety” between October 2021 to September 2022.
In addition, the majority of executives and “Level IV” managers
have now attended the practical “Back to the Floor” health andsafety training.

Occupational Health and Wellbeing
Psychological health and wellbeing are priorities for the Company.
Whilst the causes of psychological issues tend to be multifactorial,
this does not alleviate the ethical and commercial reasons forsupporting employees in pursuit of a state of wellbeing – which
is more than just the absence of ill-health.
Mental health consultations are offered to employees on site
and remotely, providing opportunities for them to anonymously
express concerns about personal or professional aspects in theirlife. In addition, health and wellbeing support material is madeavailable on the Company’s intranet pages.
Initiatives such as “Wellbeing seminars”, “Mental Health days” and“Therapy dogs” visiting sites have helped to raise awareness andopen discussion on these sensitive topics. The role of “Wellbeing
Ambassador” has been created and will be deployed in 2023.
In 2022, the mandatory training list for managers included:–– “Mental Health Awareness”, exploring ways to recognise andaddress mental health concerns and supporting managers inpromoting good mental health;100

Airbus / Universal Registration Document 2022–– “Health and Safety Conscience of a Leader”, reinforcing theaccident prevention role of leaders and the importance ofdeveloping a positive health and safety culture.
Finally, the occupational health teams have continued to robustly
support the fight against COVID-19 and its consequences, byproviding advice and support for individual employees and thebusiness as a whole.

Reporting and Indicators
The Company’s employees are required to report accidents,
near misses and hazards to their manager, who is consequently
required to investigate. The incident and investigation details
are recorded and this data is analysed to identify opportunities
for risk mitigation and overall performance reporting. Lost time
injuries are reviewed and assessed where appropriate by therelevant bodies, including safety committees. The Frequency
rate performance is also periodically shared with relevant work
councils, including the SE-WC.
Company-wide data collection and analysis is performed on
FISH (Federated Information for Environment, Safety and Health),a global environment, health and safety platform, including an
incident management module. Around 80% of the Company’s
employees including the active workforce, apprentices andtemporary employees, are estimated to be covered under the
FISH platform. The FISH perimeter continues to be progressively
extended. The deployment of the incident management module
is ongoing at sites in North America and the Asia Pacific region.
Complimentary data are monitored by the operational health andsafety teams. The harmonisation of data management and thus
more powerful analysis remains a goal.
One of the indicators used by the Company to measure its
performance is the lost time injury (LTI) frequency rate (the“FR1”). This indicator is a company-wide standard designed toenable geographical and organisational comparisons and it may
differ from the formulae used by other companies. This indicatorconsiders the work-related lost time injuries in relation to theworking hours, on a rolling year basis. In the company incident
management method, lost time injuries are defined as those that
require medical attention and which cause the employee to beabsent from their normal work activity for 24 hours or more, notcounting the day of the accident but including weekends andholidays. This produces a figure of the number of injuries per one
million (1,000,000) worked hours. The 2022 end-of-year figure of
the rolling frequency rate amounts to 1.60 Company-wide and2.25 for the Company’s commercial aircraft perimeter.

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

01
01

The Company rolling 12 months employee lost time injury frequency rate

4

3
2.18

2.06

2.01

2

1.92

1.85

1.78

1.73

1.72

1.64

1.62

1.58

1.60

M

J

J

A

S

O

N

D

1
0
J

F

M

A

2022
AIRBUS

The Company perimeter of the FR1 covers:–– all main sites in France, Germany and Spain for the Company’scommercial aircraft perimeter and the Company Divisions;–– all main sites in UK for the Company’s commercial aircraft
perimeter and the Airbus Defence and Space Division;–– the Company’s commercial aircraft plants in Mobile, US andin Tianjin, China;–– the Airbus Defence and Space Division site in Poland;–– in 2022 includes the consolidated data from the Airbus
Helicopter Division’s Asia Pacific and Latin America affiliates;–– not included are the newly created Airbus Atlantic and Airbus
Aerostructures entities (and the French and German sites
transferred to such entities in 2022).
In the case of the Airbus commercial aircraft business FR1
perimeter, all main sites in France, Germany, Spain and UK,
and the commercial aircraft plants in Mobile, USA and in Tianjin,
China are included (for the avoidance of doubt, the Airbus
Helicopters and Airbus Defence and Space Divisions, and theFrench and German sites transferred to the newly created Airbus
Atlantic and Airbus Aerostructures entities are not included).

V. Outlook
As part of the health, safety and operational environment “2030
Flightpath” vision, the Company aims to reduce the risk of workrelated injury and ill-health even further, by continually improving
management system elements, monitoring and data analysis.
To enhance this approach, a company-wide health and safetyincident review panel is being put in place to provide oversightof incident management and data quality. This oversight will
include the work of the current local level review panels,
which determine accident classification. For 2023 onwards
the ambition is to also audit FR1 at divisional / business level.
The Company will also continue to pursue its geographicaldeployment of the FISH platform and tools supporting theprevention and measurement of physical and ill-health risk.
Leadership competence will be further enhanced by the
deployment of the final modules of the “Airbus Environmentand Health & Safety (EHS) Leadership Certificate”, which will
provide managers with an externally validated certificate inhealth and safety management.

Company-wide, the Company experienced an improvement of
more than 29% in the adjusted perimeter in frequency rate in
2022. The frequency rate figures are reviewed monthly by the
CEO and the Executive Committee and the data shared with all
executives and senior leaders in a monthly webinar.
In addition for 2022, the Company is publishing an injury severity
rate indicator. This indicator measures severity of an injury by the
number of lost workdays caused by the injury, enabling anotherview of key risk areas. The severity rate perimeter is limited to
the FISH coverage and amounts to 0.046.
A total of 28,925 near misses have been declared on FISH
in the commercial aircraft perimeter. The Company pursues
investigation of near misses to identify cause agents andmitigation actions that support accident prevention measures.

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

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 principles and standards, including the International Billof Human Rights, the International Labour Organization’s (“ILO”)
Declaration on Fundamental Principles and Rights at Work andits Core Labour Standards. In doing so, the Company aims to
implement policies and processes that respect applicable law
in the countries in which the Company operates and take into
account the UN Guiding Principles for Business and Human
Rights, and the Organisation for Economic Co-operation andDevelopment’s (“OECD”) Guidelines for Multinational Enterprises.
“Respect for human rights” was prioritised by the Company
as one of the four sustainability commitments agreed by the
Executive Committee and the ECSC at Board level during 2020.
Human Rights

In addition, in reflection of the growing importance it places on
this topic, the Company endorsed including “respect humanrights” as part of its 2023 Top Company Objectives in the “inall we do, we” section which aims to anchor good governancepractices 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 related to activities under its full,
direct control” follow recommendations identified through ahuman rights impact and gap analysis conducted by a specialist
external human rights consultancy in 2019. This analysis
considered current and upcoming regulatory requirements andinternational best practice as well as international principles andstandards, including the UN Guiding Principles for Business andHuman Rights. Details of these actions follow.

GRI

SASB

SDGs

3-3 Management of material topics
408 Child Labour409 Forced or Compulsory Labour

OthersOthersVigilancePlan

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

Board of Directors / ECSC
Executive Committee

Related corporate policies andreference documents

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

Commitments to take into accountexternal standards and frameworks

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

KPIs

TargetTargetyear% of investigations completed or in progress(1)100%% of sites having undertaken a social assessment(2)100%% of findings closed within 18-months(3)100%Other key metrics
Number of participants to human rights trainings – cumulative, reporting period:
1 Oct.-30 Sep(4)Number of alerts of human rights concerns

(5)

2022
vs. 2021

2021

2022

Permanent

100%

100%

-

2026

10%(6)

29%+19pp

Permanent

100%(7)

100%(7)

-

2021

2022

2022
vs. 2021

5789

6955

+1166

4

28

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 (based on number of in scope sites at 2020).
(3)
Following social assessments including human and labour rights, carried out on the Company’s sites.
(4)
Cumulative number of participants who have completed e-learning modules on human rights and modern slavery since 2018.
(5)
Including forced labour and labour rights (received via OpenLine and other means) through the Company’s supply chain.
(6)
Cumulative since 2020. Due to a change in calculation methodology, this number has been reduced based on the 2021 report.
(7)
Number of site findings closed within 18 months 100%. Closure of identified findings related to corporate management systems
pending release of the Company’s Sustainability Due Diligence and Human Rights Directive.
Additional resources

102

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 / Universal Registration Document 2022

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

01
01

II. Governance
The Executive Vice-President Communication and Corporate Affairs has top level accountability for human rights at Executive
Committee level. During 2022, following formalisation of the Company’s governance arrangements for human rights in 2020, theCompany held a number of meetings and presentations to support and advance respect for human rights. These included:
Governance

Number of meetings in 2022

Key responsibilities

Human Rights Core Team, chairedby the Head of Human Rights
Roadmap

Target 6(achieved)

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

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

Target 3(achieved)

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

Presentation on human rights tothe Executive Committee

Target 2(achieved)

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

Presentation on human rights
at the ECSC

Target 1(achieved)

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

During 2022, the Company reviewed its governance on humanrights to reflect its transition from policy-setting into businessintegration. Part of this review included a review of the role ofthe Human Rights Multi-Functional Team (MFT) which has now
transitioned into a Human Rights Core Team. The Core Team is
made up of multi-divisional and multi-functional representatives
from within the Company with key actions aligned to delivery of
the Human Rights Roadmap. In addition, the mandate of key
internal networks, including the Sustainability Ambassadors’
network and the Ethics and Compliance network were extended
to cover the topic of human rights. Work will continue to embedhuman rights into these networks and ensure they have theright competencies to adequately support the Human Rights
Roadmap.

Human Rights Policy
Building on the human rights commitments and expectations thathave existed in various key documents for many years (including
within the Airbus International Framework Agreement signed in
2005, the Company’s Code of Conduct and Supplier Code of
Conduct), a key focus for 2022 included efforts to consolidate
commitments to human rights standards and principles as well
as expectations in this respect (aligned to international humanrights standards and principles including the United Nations
Guiding Principles for Business and Human Rights, the ILO Core
Conventions on Labour Standards and the OECD Guidelines forMultinational Enterprises), into a specific internal Human Rights
Policy which was formally approved in 2022 and endorsed bymembers of the Executive Committee.
A number of internal and external stakeholders supported
the creation of the policy including divisional and functional
representatives of the Human Rights Core Team and Steering
Committee and members of the Legal & Compliance team.
Externally the policy was reviewed by representatives from
specialist expert human rights organisations, academics andcivil society. The policy was also presented and discussed
at the Airbus Global Forum which brings together social
partner representatives from the Company’s sites around theworld and the Societas Europaea Works Council (“SE-WC”)
which represents the Company’s European social partners(see “– 1.2.12 Social Dialogue”). An external Human Rights
Policy Statement by the Company’s CEO, Guillaume Faury, waspublished on the Company’s website and provides a top levelsummary of the Company’s Human Rights Policy commitments.
The commitments contained within the Human Rights Policy
will be integrated into the Company through the deploymentof a dedicated internal Directive. This Directive brings together
external requirements such as legal requirements andinternational standards and principles, as well as existing internal
commitments relating to human rights including through theAirbus Code of Conduct, Airbus Supplier Code of Conduct,
the International Framework Agreement and the Airbus Human
Rights Policy. A key focus of 2022 included raising awareness of
the Directive and respective requirements with a view to prepare
the integration of the requirements into the Company’s internalmanagement system and processes. This work will continue tobe a focus during 2023.

III. Risk Management
The Company’s identified salient human rights issues areembedded into the Company’s risk portfolio in the frame of
the Company’s ERM system and associated response plansdeveloped to address identified impacts. Actions are reviewed
regularly by the Human Rights Core Team and any salient
human rights issues requiring particular focus are escalated to
the Human Rights Steering Committee as well as the Executive
Committee and ECSC as required. An update of actions related
to the Company’s salient human rights issues follows, with further
actions progressing throughout 2023. Taking into account thatsalient human rights issues may change over time due to internaland external influences, the Company is committed to reviewing
them regularly and at least once per year.

Salient Human Rights Issues
The Company’s initial salient human rights issues were identified
through a human rights impact and gap analysis carried out
in 2019. This identification was based on desktop research,a benchmark of industry peers and companies in similarindustries and an analysis of stakeholder expectations, including

Airbus / Universal Registration Document 2022

103

1. Information on the Company’s Activities /1.2 Non-Financial Informationconsideration from a rightsholder perspective. These issues
were reviewed, updated and validated during 2020 throughthe Human Rights MFT and engagement with a number of key
external stakeholders, including human rights NGOs, academics/
researchers and industry groups. The identified salient humanrights issues (with impacted rightsholders in parentheses) andactions undertaken during 2022 follows:–– impact of products and services (passengers andcitizens): Overseen by the Company’s Executive Committee,
the Company continued to review how to integrate humanrights due diligence through existing processes and tools witha view to mitigating the risk of misuse of its defence products.
For further details of actions related to this salient issue, please
see the Due Diligence section below;–– forced and child labour and other labour rights(contractors and supply chain): Key activities to mitigate
the risk of forced and child labour and other labour rights
in the Company’s supply chain included the continued rollout of the Company’s revised Supplier Code of Conduct,with strengthened expectations on forced and child labour
as well as other human and labour rights and a requirement
for suppliers to formally confirm adherence to the Supplier
Code of Conduct and to cascade the principles throughout
their supply chain. In addition, the Company took actions
to include human rights in the supplier onboarding process
and to strengthen its supply chain due diligence including
updated risk mapping (country and activity) and a review of its
risk identification and alert management process. For further
information, see the Due Diligence section below and “– 1.2.15
Responsible Supply Chain”;–– inclusion and diversity: During 2022, actions to progress
this salient 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 increased the numbersof cohorts by 100% versus 2021 and to support inclusive
leadership. Furthermore, a mandatory inclusion and diversity
training module was rolled out for all employees achieving
more than 95% by the end of 2022. For further information,
see “– 1.2.11 Inclusion and Diversity”;–– the transition to decarbonisation (supply chain): 2022
was dedicated to identifying the key areas of risk that theCompany’s transition to decarbonisation may create, affecting
in particular human rights. The identified areas include thepotential impact on communities due to the production of
SAF, carbon offset initiatives and specific minerals required in
the development and manufacturing of new technology. The
Company is already engaged in various coalitions (e.g. theRoundtable for Sustainable Biomaterials and the International
Sustainability and Carbon Certification) to ensure that humanrights dimensions are considered in these areas. For further
information see “– 1.2.2 Climate Change” and “– 1.2.15
Responsible Supply Chain”;–– data privacy: During 2022, the data privacy team continued
to implement and improve the data privacy programmethroughout the Company. For further information see Privacy
section in “– 1.2.14 Business Integrity”.

104

Airbus / Universal Registration Document 2022

Review of salient human rights issues
Salient Human Rights Issues-- Impacts related to products and services(passengers and citizens)-- Impacts related to diverse and inclusive workplaces(own workforce)-- Risk of forced labour (workers in supply chain)-- Impacts related to sourcing of raw materials(workers in supply chain)

During 2022, the Company undertook a full review of its salient
human rights issues. This review followed a similar process ofidentification as that undertaken in 2019 (via comprehensive
document review, interviews with key internal stakeholders andverification including with internal and external stakeholders)and prioritisation and weighting based on severity (assessedfrom scale, scope and remediability criteria) and likelihood.
During this review, stakeholder feedback was taken into
account which led to the identification and prioritisation of“underlying issues” to support more effective action plans.
The review also included an analysis of the Company’s ability touse its leverage to influence mitigation of the risk (e.g., whether
it is directly linked to the risk), or whether the Company hascaused or contributed to the risk. Actions to progress responseplans will continue through 2023.
In addition, in order to strengthen the management of the actionplans, a governance framework has been established suchthat the Company’s salient human rights issues (and identified
underlying issues) are sponsored by relevant members of theCompany’s Executive Committee who will provide oversight of
the action plans within the frame of the Company’s risk portfolio.
In addition, a process for the regular review of the Company’ssalient human rights issues is currently being developed which
will include ensuring a risk review is performed at least once
per year, with a more in-depth review every three years. For
full details of the Company’s priority risks, see “– 1.2.1 – VII.
Airbus’ way forward: vigilance plan”.

Due Diligence on Human Rights
During 2022, the Company continued to strengthen its riskbased human rights due diligence taking into account the OECD
Due Diligence Guidance for Responsible Business Conduct.
This focus, which will continue throughout 2023, included:–– due diligence within the Company’s own operations;–– supply chain due diligence;–– product and service due diligence (focused on the Company's
defence portfolio).
This due diligence is intended to support identification,
prevention or mitigation and remediation of human rights risks
across the Company’s value chain, including risks related toforced and child labour, working time and wages, freedomof association and discrimination and harassment in both
the Company’s supply chain and own operations as well as

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

risks in relation to the Company’s products and services. Key
activities conducted during 2022 under each due diligenceworkstream includes:

Supply Chain Due DiligenceThrough the Sustainable Supply Chain Roadmap, the Company
undertook a full review of the way it conducts due diligence,
including related to human rights, within its supply chain. For fulldetails, see “– 1.2.15 Responsible Supply Chain”.

Due Diligence Related to Own Operations
Through the HR team, the Company started to develop due
diligence in order to identify ways to manage risk related tohuman rights within its own operations. This included:–– development of a due diligence framework taking into accountthe OECD Due Diligence Guidance for Responsible BusinessConduct;–– formalisation of governance for progressing actions related
to this framework, including the nomination of a project leadto support and progress actions;–– prioritisation of actions linked to the Company’s salient humanrights issues, which includes plans to conduct a risk-based
impact and gap analysis to understand the potential risk offorced labour on the Company’s sites as well as review of
relevant policies and processes.
Further actions will continue during 2023.

Product and Service Due Diligence(Focused on the Company’s defence portfolio)
Overseen by the Company’s Executive Committee, the Company
continued to review how to integrate human rights due diligencethrough existing processes and tools with a view to mitigating
the risk of misuse of its defence products. Analysis to datehas focused on the Company’s products with plans to review
integration of the provision of services to follow. Actions during2022 follow:–– recognising that human rights considerations already exist
in the stringent export compliance process, an assessmentof the potential integration of actions, upstream of the export
control process, to assess the level of risk of potential misuse.
This assessment will support a decision to progress to theexport control stage;–– the current proposal includes a due diligence process thattakes into account the potential risk of Company products
being used in violation of human rights using criteria including
country risk and intended product use;–– this draft process received approval to move to a pilot phaseduring 2023 before further evaluation.
Further actions will continue during 2023.

Social Assessments (Focused on Human andLabour Rights) Conducted on the Company’s
Own Sites
During 2022, the Company continued to conduct on-site social
assessments focused on human and labour rights covering
its own sites. These assessments were carried out using an
independent third-party social assurance provider consistent
with the assessments carried out in the Company’s supply
chain.

01
01

Nineteen onsite social assessments (from a target of 18) wereconducted in 2022 in countries including: China, Finland,
France, Germany, Malaysia, Morocco, Romania, Saudi Arabia,
Singapore, the UAE and the UK. The sites were selected basedon an analysis of country risk using publicly available indices(including child labour, forced labour and labour rights), thetype of activity (prioritising production facilities) and the numberof employees. In addition, any alerts relating to human rights
coming from other sources, including the ICSA process. Relevant
legislation was also taken into account.
During these assessments, findings were identified across
11 sites, including through in situ subcontractors. The Company
aims to close all site findings without undue delay and within amaximum of 18 months.
In order to strengthen its due diligence process, the Company
has set a target to ensure that 100% of its sites with over
100 employees are assessed for human and labour rights risks
by the end of 2026. Since 2020, 29% of the Company’s sites
with 100+ employees have been assessed.

Grievance and Remediation
During 2022, the Company continued to promote its SpeakUp
and ListenUp culture related to human rights concerns, including
reinforcement of the use of its OpenLine confidential reporting
system, within its revised Supplier Code of Conduct (see “– 1.2.15
Responsible Supply Chain”).
In 2022, the Company undertook a gap analysis of its OpenLine
policies and processes against upcoming legal requirements andinternational standards and principles related to human rights,
in particular the UN Guiding Principles. Overall, the Company's
existing policies and procedures align with benchmark
recommendations. Recommended additional actions included
a review of the languages OpenLine is available in, and having
the link to OpenLine available on the Contact Us' page of theCompany’s website. These and other identified actions will be
reviewed and progressively rolled out during 2023.
If an allegation of human rights breach received from within the
Company or through its supply chain or other third-party business
relationships is found to be substantiated, remedy would besought through a variety of mechanisms. If an alert is received
via its OpenLine reporting system, the Company commits toacknowledge receipt of the report as soon as possible. The
Company has a global network of internal investigators, tasked
with investigating allegations, including those relating to humanrights such as forced or child labour, or labour rights and working
conditions.
During 2022, 28 alerts of concern were raised related to humanrights or labour rights from within the Company’s supply
chain. This increase (from four disclosed in 2021) reflects the
progressing maturity of the Company’s due diligence efforts
as well as increasing awareness on human rights topics.
The alerts were raised through either the supplier screening
process, external reports (media/NGO reports) or the Company’s
OpenLine. Following analysis, 24 of the alerts were closed withno required actions; four remain open pending completion ofrequired actions. The Company will continue to investigate any
new alerts during 2023.

Airbus / Universal Registration Document 2022

105

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

IV. Implementation/Activities
Awareness Raising and Training
During 2022, the Company continued to raise awareness ofhuman rights, including through the promotion of its dedicatedtraining on human rights and modern slavery, which is available
to all employees in four languages. This training was updated
during 2022 to take into account the publication of the Human
Rights Policy. During the period 1 October to 31 September
2022, 1,166 participants undertook this training (6,955 in total
since its launch), which included information on how to identify
the signs of human rights abuse and what to do if anybody hasconcerns. This training will be part of the compulsory training
for all employees of the Company during 2023.
Also during 2022, the Company created a dedicated eLearning
module on human rights targeting “Level IV” managers,
including the heads of its subsidiaries and controlled affiliates.
This eLearning formed part of the compulsory training for theCompany’s Executives during 2022 and will remain on the list
during 2023. Since its launch up to 31 September 2022, 489
participants have completed this training.
Furthermore, during 2022 the Company introduced a pilot
programme of in-depth training aimed at buyers and supply
chain quality managers focused on human rights and inparticular identifying forced labour. This programme aims toprovide interactive small group virtual training to ensure deeper
understanding and engagement. The aim is that this training
will be rolled out further during 2023.
Additional topic-based training relating to human rights is alsoavailable to all employees of the Company, a number of which
are mandatory, including inclusion and diversity topics such as
unconscious bias.
The Company also published a number of articles on humanrights internally via its Hub Portal and Airbus TV during 2022.
This communication was aimed at demystifying human rights
as well as focusing on topics such as forced labour andwellbeing, and included interviews as well as opportunities toprovide comments and feedback. Communication will continue
throughout 2023.

Stakeholder Engagement and Collaboration
During 2022, the Company continued its membership of the
Global Business Initiative on Business and Human Rights(GBI), a specialist peer learning group focused on advancing
respect for human rights throughout the world. As part of its
membership, the Company also took part in three dedicatedworkstreams: downstream due diligence, environment andhuman rights and tracking and measurement, the progress ofwhich were shared with other GBI members.

106

Airbus / Universal Registration Document 2022

The Company is also a member of a number of industry tradeassociations which during 2022 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,
researchers, civil society organisations, officials and peers. A
number of discussions with the Company’s investors on the
topic of human rights also took place during 2022, including on
the topic human rights due diligence related to defence sales.
In addition, an update of the Human Rights Roadmap was alsopresented to key internal stakeholder groups including the SE-WC
comprising social partners from across the Company’s European
sites.

Regulatory ComplianceDuring 2022, the Company undertook an analysis of current
and upcoming legislation related to human rights including
Germany's new Supply Chain Due Diligence Act. Actions to fill
any identified gaps will be undertaken throughout 2023.
During 2022, in accordance with the UK Modern Slavery Act
and the Australian Commonwealth Modern Slavery Act, theCompany published a Modern Slavery Statement outlining theactions it had undertaken to mitigate modern slavery risks in its
global business, operations or supply chain. This Statement was
published on the UK Government and Australian Government
websites as well as the Company’s website. In addition the
Company completed the UK Ministry of Defence (MoD) Modern
Slavery Assessment Tool.

V. Outlook
During 2023, 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;–– capacity building with key teams including development oftraining, communication and awareness raising;–– ensuring alignment of actions with current and upcoming
legislation.

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

01
01

1.2.11 Inclusion and Diversity
I.

Introduction“Respect human rights and foster inclusion” is oneof the four sustainability commitments. This priority reflects thefocus the Company puts on inclusion & diversity (“I&D”) andis illustrated by the 147 nations that its employees represent.
An I&D position statement outlines the Company’s commitments
to creating a safe and inclusive culture, including zero tolerance
to discrimination and harassment, while the Company’s
Code of Conduct and Supplier Code of Conduct express the
expectations towards both employees and suppliers in thisrespect.
In line with the Company’s values, a comprehensive I&D strategy
drives the Company’s approach to embedding I&D focusing on
intergenerational, ethnic, social and cultural diversity as well as
gender equality, LGBTQ+, neurodiversity and disability-friendly

policies and hiring practices. The I&D strategy aims to ensurethat the Company:–– creates a safe environment and inclusive culture wherecollaboration, empowerment, continuous learning andaccountability are promoted and valued. The Company has
zero tolerance for harassment or discrimination of any kind;–– attracts, recruits, develops and retains a large and diverse 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 SDGs.

Inclusion & Diversity

GRI
405 Diversity and Equal Opportunity,
406 Non-discrimination

Highest governance body(ies)involved

SDGs

Others4, 5, 8, 16 Vigilance Plan

Board of Directors / ECSC; Executive Committee
Inclusion & Diversity Board
Human Resources Airbus Company Policy
Airbus Code of Conduct
Airbus Supplier Code of Conduct

Related corporate policies
and documents

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

External standards orframeworks taken into
account

TargetTarget horizon

2021

2022

2022
vs. 2021

33%

Yearly22%

27%+5p.p.

% women in Board of
Directors

33%

2022

25%

33%

+8p.p.

% women in senior
management – Executives

18%

2022

14%

16%

+2p.p.

KPIs% of external hires to befemale (active workforce)

Number of men in senior
management – Executives

821

Number of women in senior
management – Executives

157

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

2021

2022

2022
vs. 2021% women in active workforce

19%

20%

+1p.p.

% women in Executive
Committee

25%

25%

+0p.p.

% women in “Level IV”
managers

16%

17%+1p.p.

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 2021, 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

Airbus / Universal Registration Document 2022

107

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

II. Governance
The I&D team is part of the “DEVELOP Centre of Expertise”
within the Human Resources function and represents Airbus
and its Divisions, with regional I&D focal points supporting theimplementation 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, championed by“Level IV” managers 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.
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 thelearning catalogue and are as well included in the compulsory
learning plan. With a special focus on leaders, the Company
launched a “Management Basics & Leadership Foundations
Programme” to ensure that inclusive leadership becomes thenorm at all levels in 2020. In 2022, the MyWay Women leadershipprogramme, dedicated to women leaders of tomorrow, registered
100 women, twice as many as the previous year. To date, thisprogramme has trained over 220 women, including the current
cohort. The Company’s leadership development programme
attendances are balanced in terms of gender representation.
Further dedicated role model sessions called Women@Airbus,
digital recruitment events to encourage more women to apply
for jobs, have been carried out online with over 400 womenparticipating. During 2022, the Company disclosed its gender
pay gap as required by both French and UK legislation, andcontinues to put measures in place to ensure gender pay parity
worldwide.

108

Airbus / Universal Registration Document 2022

Gender Diversity in Senior Management –Executives
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 2022, performancestood at 16% against a 18% target, which is a 2p.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 tochallenge stereotypes and build their careers. The network also
supports some outreach initiatives.
Other employee-led networks such as WIN Together, the Airbus
Africa Network, Spectrum (Racial diversity and inclusion), Pride@
Airbus (LGBTQ+), Generation-A (Millennials), Seniors Talent and(Dis)Ability ambassadors networks are key to raising awarenessof I&D, promoting inclusion, equal rights and increasing
visibility. Initiatives include mentoring, leadership developmentof under-represented groups as well as conferences anddiscussions open to all employees.
The annual Ability Weeks campaign aims to raise awarenesson disability across the Company and worldwide. This includes
a series of workshops and awareness sessions on topics suchas: digital accessibility, workplace adaptations, mental healthcare. During 2022’s campaign, more than 3000 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.
Highlighting that being unique is valued and that difference iswelcome, the Company ran an awareness campaign during 2022
to promote awareness of the importance of digital accessibility
for employees with disabilities as a means for inclusion.
During 2022, the Company also engaged in various social
diversity programmes in partnership with a number of different
associations to promote quality education and mentorship foryoung people from underprivileged areas. For example, theCompany participated in the French government’s initiative “LaFrance, une chance. Les entreprises s’engagent!” to encouragecompanies to help everyone find their place in society by taking
actions such as recruiting from underprivileged areas, promoting
education learning and committing to responsible purchasing(inclusive supply chain).

V. Outlook
In 2023, the Company will pursue its I&D ambition, aiming
at embedding I&D in everything it does. Priorities for 2023
include continuing the Company’s focus on gender parity,
while simultaneously strengthening focus on other aspects of

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

the I&D strategy such as disability, internationality and cognitive
diversity. Upcoming actions on I&D include:–– eliminating systemic barriers during talent recruitment,
development and management;–– agreeing on targets for external recruitment of women, external
recruitment from non-EU countries and external recruitmentof people with disabilities;–– extending leadership development programmes to include a
focus on I&D and in particular on gender diversity;

01
01–– increasing awareness and training on inclusive leadership andunconscious bias;–– leveraging and reinforcing business ownership andaccountability through the Company’s network of diversity
champions;–– continued support to encourage STEM studies for young
women in schools and universities through mentorship,tutorship, directly or through the associations sponsored by
the Company.

1.2.12 Social Dialogue
I.

Introduction

In 2022, 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.
Labour Relations

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

SDGs

402 L
 abor / Management Relations

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

Executive Committee

Related corporate refdocuments

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

Airbus commitments totake into account external
standards and frameworks

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

Key metrics

2021

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

12% workforce covered by collective bargaining agreements
Additional resources

2022
7
ca 80%

ca 80%

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

II. GovernanceIn the International Framework Agreement (“IFA”), theCompany 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 respectand ensuring the conditions for social dialogue.
The Company intends, via its agreements, to respect thedisposition of the following ILO conventions: numbers 111(discrimination – employee and occupation), 100 (equal
remuneration), 135 (workers’ representatives), 29 (forced
labour), 105 (abolition of forced labour), 182 (child labour), 138(minimum age), 87 (freedom of association and protection of
the right to organise) and 98 (right to organise and collective
bargaining).

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.
Labour relations and social dialogue are fully part of theCompany’s DNA and, therefore, their continuous evolution
and improvement are embedded in the Company’s Human
Resources strategy supporting the Company’s businesschallenges and the sustainability roadmap. It includes
discussions about the identification and mitigation of risks
inherent to Company’s activities and those of its suppliers

Airbus / Universal Registration Document 2022

109

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

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 and local
levels as per ILO requirements, local legislation and Company
agreements about social dialogue, for instance thanks to theCompany’s European SE-WC agreement which was updated in
2018. Sites outside Europe are also covered by the Company’s
IFA framing the social dialogue and social culture in line withlocal labour legislation, culture and practices of respective
countries.
In line with the Company´s global social dialogue strategy andsince 2019, the discussions with the social partners have not
only been assured at local or European level but have also
happened at global level with the creation of the Airbus Global
Forum (“AGF”). In line with the Company’s commitments interms of Sustainability, the AGF is a clear illustration of theCompany’s engagement for a responsible social dialogue. The
seat allocation for employee representatives is based upon
Company’s headcount distribution across the globe andconditional to existing legal employee representation as per
applicable regulations and practices in the relevant countries.
In addition, the Company is an active member of the Global Dealfor Decent Work and Inclusive Growth initiative (“Global Deal”)
that was developed in cooperation with the ILO and OECD.
The Global Deal is a multi-stakeholder partnership between
governments, business and employers’ organisations, tradeunions, civil society and other organisations that seeks tomake economic growth work for all against a backdrop of rapidchanges in the world of work. Furthermore, the Company has
regular discussions with some national and international tradeunion federations.

III. Risk management
The European labour relations’ management of the four homecountries of the Company (France, Germany, UK, Spain) is alsopart of the Company risk management processes and theserisks are reviewed internally on a quarterly basis. For example,
during 2022, employee relations continued to focus on ensuring
legal compliance regarding national labour laws and investingin training the Company’s HR professionals about labour law.
The Company’s approach to risk management is also reinforcedby the OpenLine reporting system, which allows employees toreport concerns anonymously (where legally permitted).

110

Airbus / Universal Registration Document 2022

IV. Implementation/Activities
During 2022, the Company continued activities aimed atstrengthening collaborative and partnership approacheswith unions in various countries. The main focus has beenon preserving global social dialogue, addressing Company
transformation projects as well as informing and consulting about
employment, working conditions and sustainability.

Preserving a Global Social Dialogue
In Europe, seven European committees have taken place at
Company level in 2022, including discussions about the Company’scommercial aircraft activities. The composition of the SE-WC
was renewed in accordance with the Company agreement andits rules of procedure. At the Company’s Airbus Helicopters
Division, four European committees have taken place. The main
topics have been the follow up of the Division’s performance andstrategy, the deployment of the site specialisation strategy andmore globally the Company transformation, focusing in particularon competitiveness, digitalisation and environmental roadmap.
At the Company’s Airbus Defence and Space Division, eight
European committees have taken place. The main topics havebeen the strategy and performance of the Division with a focus
on sustainable transformation, including the AD 4.1 and the AD
Digital reorganisations.
With a global reach, the third AGF took place early July 2022 in adigital format and has proven again to be an effective exchange
platform between the Company’s top leaders in the regions
and its employee representatives from the Company’s homecountries as well as Poland, Romania, Morocco, Tunisia, Brazil,
New Zealand, Australia, North America and China. The AGF
agenda triggered insightful discussions around business andhuman resources including actions about sustainability, humanrights, safety and wellbeing. It also served as an opportunity
to enhance the perspective of the Company’s social partners
on local and regional practices with regards to social matters,
especially out of the European home countries.

Supporting Company Transformation
Numerous discussions with the Company’s social partners havetaken place to support the creation of global business services
in Portugal, Airbus Protect in France, Germany and the UK as
well as the creation of Airbus Aerostructures GmbH in Germany,on top of the social impacts in relation to the ramp-up. In Spain,
the discussions started in 2021 about the consolidation of theindustrial activities and the maintenance of workload in theProvince of Cádiz in the CBC work centre were continued andconcluded successfully. Also, during 2022, the space activitiesin Getafe were successfully integrated.

Supporting Employees
In 2022, 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. After having listened
to the members of the SE-WC on 15 September 2022, andthen having discussed further with the employee representatives
who signed wage agreements, the Company decided to pay an
exceptional premium to its employees (see “– 1.2.13 People”),
independently of current or future salary negotiations.

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

Furthermore, the Company is committed to preparing for the
future of employment and working conditions together withsocial 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) and to put in place
relevant agreements, such us a new remote working policy or
in order to share with social partners the strategic direction set
out in the 2030 vision.
In France, thanks to a fruitful and established long-termsocial dialogue with employee representatives, the Company
continued the major transformation project called Reload
which started in 2021, aiming at simplifying, modernising andharmonising Company agreements related to compensation,
benefits, grading, working time duration, health, safety andworking conditions to make them more readable for its people
and adapted to the Company’s challenges. This project also
aims at integrating the evolution of the Metallurgic Branch
Agreement which was signed in 2022. In particular an agreement
about healthcare, death and disability was concluded with thesignature of all unions.
In Germany, social dialogue mainly focussed on supporting theramp-up activities, the works council elections and concluding
the collective bargaining round, which was conducted by the01
01

employers´ associations of the metal and electrical industry inwhich the Company is a member.
In the UK, the Company reached an agreement with Unite forcollective bargaining rights for employees in the “Advanced
Professional” and “Level V” grades for the Company’scommercial aircraft activities. This was supported in a ballot of
all employees in these grades.

Enabling for Sustainability Plans
In 2022, in line with its sustainability ambition, the Company
reached an agreement with its social partners about the inclusionof the accident frequency rate and CO2 in the remuneration of“Level IV” managers from the year 2022.

V. Outlook
In 2023, 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
2022. Other key areas will be the continued ramp-up of its
activities and the transformation projects which will be essential
to the Company’s future success. Furthermore, it aims tocontinue discussions and cooperation with some national andinternational trade union federations.

1.2.13 People
I.

Introduction

The Company’s people draw on each other’s expertise andexperience 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 Human Resources (“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.
As of 31 December 2022, the Company’s workforce amounted
to 134,267 employees (compared to 126,495 employees in 2021),
96% of which consisted of full-time employees. These statistics
take into account consolidation effects and perimeter changes
throughout 2022. Depending on country and hierarchy level,
the average contractual working time is between 35 and 40
hours per week.
2022 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 launched a new programme towelcome university graduates, the Airbus Global Graduate

Program. The faster-than-expected recovery of commercial
aircraft activity and strategic programmes development in the
two Divisions, resulted in the Company’s workforce increasing
by more than 6% (8% commercial perimeter, 5% in Airbus
Defense and Space Division and 3% in Airbus Helicopters
Division). Following the workforce adaptations carried out in
2020/2021, the number of leavers seen in 2022 is returning to
pre COVID-19 levels, with an attrition rate of 5.0%.
The Company’s workforce is 88.6% based in Europe, acrossmore than 100 sites. Concerning the nationality of its employees,
35.0% are from France, 30.7% from Germany, 7.4% from the UK
and 10.7% from Spain. The evolution of the Company’s global
presence is seen in the increase of the workforce located outside
Europe (11.4% in 2022 vs. 10.9% in 2021) and the increase ofnationals from outside the Company’s home country nationals
to 16.2% (vs. 15.1% in 2021), coming from 143 other countries.

Workforce by Business Segment,
Geographical Areas
The breakdown of the Company’s employees by businesssegment and geographical areas, including the percentage ofpart-time employees, is available in “– 1.2.17 ESG Data Board”.

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111

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

People

GRI

SASB

SDGs

401 Employment
404 Training and
Education

4, 5, 8, 12Highest governance body(ies)involved

Executive Committee

Related corporate policies

Human Resources Airbus Company Policy

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

2021

2022

Total number of employees(1)126,495

134,267

Number of Classroom Training(2)78,984

116,363

Number of Digital Training

967,495

1,645,816

1,164,243

1,786,274

10.8

15

Total training hours

(2)

(2)

Average training hours per
employee(2)OthersBreakdown applies to Total
Number of Employees he Company’s headcount reporting includes all consolidated companies worldwide. Figures are based on the active workforce,Ti.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)

Additional resources

Code of Conduct , Airbus Global Workforce Forecast Book , Working at Airbus
Airbus International Framework Agreement , European Commission – Pact for Skills ,Employer awards 2022 : Universum , Glassdoor , Top Employer Institute , Forbes

II. GovernanceIV. Implementation/Activities

The Company’s workforce is managed by the HR function,
guided by a set of HR policies and a strong labour structure.
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 core values,
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 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 theperception of its employees on where the Company stands interms of company culture and engagement through the “My
Working Environment” survey. The participation rate for the lasttwo surveys has been above 60%; the last survey was conductedin September 2021. 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.

112

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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 related risks
and opportunities in the context of the execution of the businessstrategy. There are two steps that enable strategic workforce
planning:–– a quantitative 2-5 year outlook based on workload scenarios;–– qualitative business discussions performed as part of theresource review.
The qualitative part of the strategic workforce planning generates
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 and opportunities, the strategic
workforce planning results support discussions with social
partners and external workforce suppliers.

People Development and Competence
Assessment
The development of all employees is essential to deliver businesssuccess. The Company strives to provide an environment thatoffers opportunities and the means for continuous growth anddevelopment in line with its strategy.
A yearly process derives a short, mid- and long-term competence
strategy out of the Company’s business strategy by:–– anticipating the supply and demand of competencies;–– identifying, securing and developing key competencies;–– creating added value through synergies, networking and bestpractices.

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

Investments in training and learning are prioritised in relation tothis competence strategy.
In addition, emerging long-term competence needs are analysed
in order to identify any measures to be taken. For example, some
non-existing competencies today might require the Company
to partner with universities to ensure the supply of these in the
future. In that respect, the Company currently collaborates
with more than 200 universities and 15 strategic partners. In
addition, the Company is actively participating in external forums
on competence evolution, such as the World Economic Forumand European Commission (Pact for Skills – see section “Training
and Mobility”).
In order to ensure quality time is dedicated to discuss employees’
development, the Company has, as part of its annual talentmanagement cycle, implemented the systematic development
talk for all employees (with their line managers). This talk is an
exchange between the manager and employee that can takeplace as often as needed and at least once a year, with theintention to discuss the individual development plan of theemployee and to align personal aspirations with the Company
needs and expectations.
The Company provides employees with a portfolio of selfawareness solutions and feedback tools that can be used toprepare for such a development talk and development plan.
All agreed development items are formalised in the annual
development plan by the employee which is then validated by
the manager. These actions may consist of:–– learning experiences – projects, missions or career mobility;–– social learning – peer-to-peer development, coaching andmentoring;–– formal training – courses, certifications and diplomas.
The competency 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 assessment can be performed
whenever necessary. It must be completed at least once every
two years, or within the first month after a career mobility or asignificant change to an existing job.

Training and Mobility
Accelerated during COVID-19 crisis, the digital learning strategy
has allowed employees to remain active in their development
during periods of remote working throughout 2022.
In addition, in 2022, 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, Product
Safety, Cyber Security, Internal Controls, Diversity and Inclusion,
Quality and Customer Centricity, Sustainability Awareness.
This approach allows the Company to ensure that employees
are well informed, trained and aware about those key topics
related to major Company priorities. In 2022, 103,482 employees
completed this compulsory learning plan.
From October 2021 to September 2022, the Company provided
more than 1.7 million training hours to employees. In addition
to the physical classroom and digital training, more than
53,600 employees benefited from other leadership development
and transformation solutions proposed by the Airbus Leadership
University. The Leadership University continues to strengthen

01
01

the Company’s approach to leadership, offering opportunities
for all managers to drive their development, while accelerating
the culture evolution and human transformation of the Company.
It offers a range of leadership programmes which focus ondeveloping self-awareness, leadership mindset, purposefulleadership and people leadership capabilities. One suchprogramme that is currently offered is “Management Basics &Leadership Foundations (MBLF)” which is a refresher training
available to all managers, allowing them to revisit and explore
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 a properly
managed performance cycle, the aim is to increase teamefficiency and effectiveness. Between 1 October 2021 and
30 September 2022, 1,819 managers completed the MBLF
training.
In addition to learning solutions and managerial opportunities
for development, the Company has established career anddevelopment paths enabling employees to develop specific skills,
competence and jobs, such as project & programme manager,
architects & integrator and expert career paths.
The Company is also involved in the “Pact for Skills” initiative
launched by the European Commission to address the up-skilling
and reskilling challenge in Europe. It is working together withaerospace and defence industrial companies, public authorities,
and education and training providers, to build common upskilling
and reskilling programmes and explore ways of working togetherin skills partnerships.
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 theCompany has the right skills in the right place to secure thefuture. In 2022, more than 11,400 employees have changed
jobs through internal mobility.

Remuneration
The Company’s overall remuneration policy is in line with local
practices and provides employees with a competitive overall
compensation package. It is also an enabler to attract new talents
and retain talented employees contributing to the Company’sbusiness success. The Company strives to compensate its own
employees with, at a minimum, a living wage covering their basic
needs calculated in-line with best practice. A dedicated action
was launched in 2022 to assess current alignment status.
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.
In order to help face the energy crisis and inflation, the Company
has decided to pay in 2022 an exceptional premium to its
employees, including apprentices and temporary workers.
Around 150,000 workers received this exceptional premium atthe end of 2022.

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113

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

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 115,000 employees in 2022) ordeveloping the Company share ownership culture (Employee
Share Ownership Plan – “ESOP”).

Employee Share Ownership PlanThe 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 2022 is part ofan entity which is at least 50% owned by the Company, and has
been an employee between 31 December 2021 and 17 March
2022. In 2022, more than 61,000 eligible employees seized theopportunity to subscribe. 2.12 million shares were distributed
to employees through the plan ESOP 2022.

Other Benefits
Employees in the vast majority of countries all over Airbus canbenefit from several measures allowing a better work-life balance,such as remote or hybrid (from home or else) working when thisis compatible with the job position.
The Company has also set up “family friendly” measures suchas childcare facilities accessible to employees in some sites oralternative subventioned kindergartens, in countries like France,
Spain, Germany, Canada, Brazil, Chile and India. Parental
leaves are granted at least in line with regulatory requirements.
More than 60% of Company employees located in more than
20 countries can benefit from maternity or paternity leaves thatexceed local applicable regulations, in terms of period of leave
and/or in terms of level of salary compensation during such leave.

114

Airbus / Universal Registration Document 2022

V. Outlook
The Company created the People Strategy in 2020 to ensure“Our People,” the Company’s most valuable asset, are preparedto carry out the business strategy.
The three pillars of the People Strategy – Engaging Leadership,
Agile Upskilling of our Workforce and an Inclusive Workplace –have guided the Company people-related activities over thecourse of 2022 and will remain paramount as the Company
continues to attract, recruit and retain the key competencies andskills needed to support business ramp up and key programme
launches.
Over the next two years the Company expects to pursue
significant external hiring. Several thousand positions shallbe filled in different functional and geographical areas of theCompany to support the ramp up in commercial aviationand to prepare for the development of future programmes. A
fifth of these recruitments will target the skills needed for thedevelopment of new programmes and new technologies.
In the meantime, the Company will continuously focus on people
development to close the gap on critical skills needed and will
invest into emerging skills development. The Company continues
its journey towards becoming an agile learning organisation.
Reskilling is a major part of the learning culture aimed at
supporting critical ramp-up projects in the short term, and in
the long term sustaining the acceleration of skills shift.
The employee experience is brought back to the centre of theCompany priorities. For the coming years, the Better Workplace
programme is empowering the Company's employees to address
and act upon the changes they aspire in every dimension of theirworkplace. In uncertain times and with tremendous challenges
ahead, the Company aims at remaining one of the best places towork. Through its Better Workplace programme, the Company
is working toward giving every employee the workplace theyneed, the tools they deserve and a culture they can celebrate.
In the challenging employment market, the Company will continue
to invest in global attraction campaigns and to strengthen
collaboration with the business to deliver on staffing needs.

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

01
01

Exemplify Business Integrity
1.2.14 Business Integrity
I.

Introduction

The Company’s Ethics & Compliance programme seeks to ensurethat the Company’s business practices conform to applicablelaws, regulations and ethical business principles, as well as
reinforcing a culture of integrity and speak-up. In 2022, Ethics& Compliance continued to be a top priority for the Company.
In its list of priorities for the year, the Company set the objective
to Speak Up, Listen Up and act with integrity and respect.
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
Business Integrity

Compliance, Export Compliance and Privacy. Each of theseareas is, in turn, supported by dedicated compliance 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.
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 CodeKey metrics
Number of employees per appointed Ethics & Compliance Representatives

2021

2022

372

360

90%

96%

Number of employees per appointed Export Control Point of Contact236% of employees who completed the E&C training objective (Reporting period: from 1 Jan. to 31 Dec.)
Number of E&C e-learning sessions taken by employees (Reporting period: from 1 Oct. to 30 Sep.)

284,774

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

Others

290,178
149,426

9,327

3,181

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

II. Governance
The Ethics & Compliance organisation is part of the Legal
Department under the ultimate responsibility of the Company’s
General Counsel. The aim is to provide strong governancethroughout the Company with the global presence of qualified
Compliance officers who ensure the Ethics & Complianceprogramme is implemented consistently in the different functionaland operational areas.
The Company’s Chief Ethics & Compliance Officer, who reports
to both the General Counsel and the ECSC of the Board of
Directors, leads a dedicated team of Compliance professionals
who are responsible for supporting and advising across theCompany on compliance related topics, supporting the day-today business, performing risk assessments, drafting policies,
conducting third party due diligence, investigating complianceallegations, implementing tools and controls and delivering
compliance training.
The ECSC also plays a key role in the oversight and continued
development of the Company’s Ethics & Compliance programme,organisation and framework for the effective governance of
Ethics & Compliance.
In addition to the dedicated Compliance professionals,
the Company is coordinating a network of part-time Ethics &Compliance Representatives (“ECRs”), spanning all Divisions,functions, and regions. The number of ECRs slightly increased in
2022, with a total of 373 ECRs at the end of 2022 (compared to
340 at the end of 2021). Although the ECR network members are
not compliance experts, they play an important role in promoting

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115

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 all Divisions,functions, and regions. Similar to ECRs, EPoCs are notexport control experts but serve as “first line of defence”
and the “go-to” individuals for export control matters. On
the occasion of the launch, the Chief Ethics & Compliance
Officer stated that “by raising awareness among employees
and acting as local focal points for queries on Export Controlrelated 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’s businesses.” By the end of 2022, the network
was established and active within the business, with a totalof 570 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
the Airbus privacy programme.

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
are embedded and monitored within the Company’s ERM
framework and 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 the use of sponsorships, donations, or
political contributions to improperly benefit decision-makers, orthe provision of excessive or overly frequent gifts and hospitality
by Company employees.
In order to ensure its compliance with Export Control regulations
and laws in the European Union, US and internationally,
the Company continues to strengthen its Export Control
compliance programme to ensure it is fit for purpose. Whererisks are identified, they are embedded and monitored in the
Company’s ERM. Identified risks include potential unauthorised
access to export-controlled data and hardware by third parties
and non-compliance with the ITAR.
Regarding privacy, the Company undertakes privacy impact
assessments depending on the nature of the personal dataprocessed or scale of the processing. In addition, risks relating to
the protection of personal data are also assessed in the context
of the ERM and kept updated.

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Airbus / Universal Registration Document 2022

Specific directives 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 ofInterest;–– Requirements for the Prevention of Corruption related toMergers & Acquisitions, Joint Ventures, Partnerships andsimilar Transactions;–– Method for the Prevention of Corruption in the Context ofInternational Cooperation & Offset Activities;–– Requirements for Anti-Money Laundering / Know your
Customer;–– Guidelines for Competitive Intelligence Gathering Activities–– Requirements for Export Control Sanctions, Embargoes andScreening;–– Requirements for Export Control Framework;–– Requirements for Export Control Escalation and Voluntary
Disclosure;–– Requirements for Export Control Brokering;–– Requirements for Export Control Classification;–– Requirements for Export Control Licences and Agreements;–– Requirements for ITAR Part 130 Reporting;–– Personal Data Protection Directive, Method and Binding
Corporate Rules.
The Ethics & Compliance organisation is charged with oversightand monitoring of these directives to ensure that they are being
implemented effectively. Periodic controls on key processes are
performed and reports provided to the Company’s Executive
Committee and the ECSC, including recommendations tostrengthen the Ethics & Compliance programme where
necessary.
In addition, the Corporate Audit & Forensic Department conducts
periodic, independent audits of the Company’s compliance
processes to assess the effectiveness of internal controls andprocedures and allow the Company to develop action plans forstrengthening such controls.

IV. Implementation/Activities
Awareness and Training
As part of their annual goals & objectives, all Company
employees are required to undergo a minimum amount ofcompliance training via e-learning. Additionally, depending on
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 2021 to 30 September 2022, the Company’s
employees followed 290,178 Ethics & Compliance e-learning
sessions, including on bribery, corruption and export control.
Furthermore, 4,699 employees attended live classroom training

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

on different Ethics & Compliance topics over the period, themajority of which were delivered in virtual classroom settings
due to the pandemic.
Likewise, the Company also delivered anti-bribery and corruption
training towards higher risk third parties, including sales
intermediaries, lobbyists and special advisors. In 2022, 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.
3,181 privacy training sessions were performed in 2022 (reporting
period from 1 October 2021 to 30 September 2022).

Speak-Up Channel: OpenLine
The Company recognises that the Code of Conduct cannot
address every challenging situations that may arise, andtherefore encourages its employees to speak-up through various
channels, including through OpenLine (available at https://www.
airbusopenline.com). The OpenLine enables users to submit
an alert securely and confidentially, and also to ask questions
related to Ethics & Compliance.
The Company protects those who speak up and raise concerns
appropriately and in good faith. The Company does not retaliate
against anyone who raises a concern, or against those who
assist in investigations of suspected violations.

01
01

In addition, the dataprotection@airbus.com mailbox issystematically published in the Company’s privacy policies
and information notices specific to the various applications, toensure that data subjects can exercise their rights and/or lodge
complaints.
To further increase awareness about Speak-Up, in 2022, theEthics & Compliance team conducted an analysis of the resultsfrom the Company’s internal survey “My Working Environment”
to identify opportunities to continuously foster a Speak Up
culture. This analysis led to the launch of additional initiatives
throughout the Company to promote Speak-Up culture, including
the development of a Speak-Up team talk in January 2022,
which was shared with all managers to help them raise theimportance of speaking-up with their teams. A simplified versionof this “team talk” was designed and deployed within the shop
floor community.
In 2022, the Company received a total of 847 investigative requestsof which 524 were HR related. Cases requiring investigation are
managed by dedicated members of the Ethics & Complianceteam in accordance with an internal method for the conductof Investigations. The Ethics & Compliance team provides
regular updates to the pool of internal investigators, on internal
policies, recent developments in the regulatory framework, andrecurring reminders on investigation best practices to ensure
the consistent deployment of compliance investigations acrossthe entire Company.

847 investigative requests received in 2022

323

HR-related
investigative
requests

Compliance-related
investigative requests

524

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

is delivered to employees who are particularly exposed to theunderlying risks as described above.

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 internal investigations on a regularbasis.

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 was completed
in Summer 2022.

Policies and Procedures

In 2021 and 2022, as required under the Consent Agreement,
two audits of the Company’s ITAR compliance programme were
undertaken by external counsels. Please refer to “Notes to the
IFRS Consolidated Financial Statements – Note 39: Litigation
and Claims” (Investigation by the SFO, PNF, DoJ, DoS, Related
Commercial Litigation).

In 2022, the Company continued to improve its policies andprocedures framework, by issuing a guidance on third parties
categorisation, for example, and translating the Code of Conduct
into seven additional languages to maximise the reach of thisfoundational document. All policies and guidelines are madeavailable to employees on the Intranet, and classroom training

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

Responsible Lobbying Charter

V. Outlook

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.

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 2022, approximately 18,000 suppliers from more than 90 countries supply parts, components, systems and services
to the Company.

14%

Commercial
Aircraft
€34bn

Est.
€44bn
total 2022
spent

Defence and Space
€6bn

9%

Helicopters
€4bn

77%

In 2022, the Company’s external sourcing volume was estimatedaround € 44 billion and shared between Divisions with 77% for
the Company’s commercial aircraft business, 14% for the Airbus
Defence and Space Division and 9% for the Airbus Helicopters
Division.

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Airbus / Universal Registration Document 2022

Of note, these figures may marginally change, as the data
consolidation process was not finalised at the date of publication.

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

01
01

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,
Vigilance plan13, 16, 17Highest governance body(ies)involved

Board of Directors / ECSC

Related corporate policies

Responsible Mineral Policy, Environmental Policy, Health and Safety Policy

Certifications

ISO 14001

Company’s commitments
to external standards andframeworks

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

Sustainable Supply Chain Roadmap Steering Committee

As Company’s commercial aircraft business and its two Divisions are certified,control and influence of the supply chain is concerned.

2022
Target2021

2022

2022 vs 2021

75%

68%(1)

78%(6)+9p.p.

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

100%(5)

95%

99.5%

+4.5p.p.

Percentage of sourcing volume covered by supplier commitment
to the Supplier Code of Conduct(4)85%79%(3)

86%(6)+7p.p.

Digitalisation of supplier substance data collection – supplier sites

290(7)

-

298

-

2021

2022

13%

16%

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

15%

31%

Percentage of responding suppliers to the CDP scoring A or B

53%(8)

66%(6)

12

44

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

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

Number of sustainability alerts(1) Based on 2019 turnover.

(2) Based on 2019 risky suppliers (see details further in § Risk Management/1. Supply base risk
mapping).19 suppliers have since 2019 been removed from the scope (see details below).
Assumptions(3)Based on 2020 turnover.
(4) Subsidiaries excluded from the scope.
(5) 2021 target.
(6) Based on 2021 turnover for the Divisions and the entity in Canada(7) Target defined for the Company’s commercial aircraft business. (8) Based on number of suppliers.

Additional resources

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

In 2022, the Company sourced 89% of its total purchased volume from countries in which it has significant operations, includingFrance 34%, USA 23%, Germany 16%, United Kingdom 9%, Spain 4%, Canada 2% and China 1%.

in Europein NorthAmericain Asia

69%

24%

6%
<1%

<1%
<1%

in SouthAmerica<1%inAfricain Middle
East

in
Oceania

Company’s 2022 total spent regional split
While the Company’s products and services are sold all over theworld, the majority of its supply chain is based in Europe andOECD countries. However, in the past few years, the supply chain
has become concentrated and more international. In addition,and due to increasing consolidation within the aerospace anddefence sector, larger work packages are being placed with asmaller number of lead suppliers.
The Company’s global sourcing footprint is represented asfollows based on Tier one suppliers only.
To promote further globalisation of its sourcing footprint, theCompany has established regional procurement offices in North
America (Herndon, VA), India (Bangalore), Asia Pacific (Singapore)
and China (Beijing). The regional procurement offices represent
the Procurement 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 process andpolicy and digital solutions. As the Company’s commercial
aircraft business and its two Divisions are certified ISO 14001,
the Procurement function acts in adherence with ISO 14001
requirements.

II. Governance
The Company’s sustainable supply chain ambition is built onfour pillars: “lead the journey towards clean aerospace, respecthuman rights and foster inclusion, build our business on thefoundation of safety and quality, exemplify business integrity”.
Derived from this ambition, the Company’s Sustainable Supply
Chain Roadmap is based on a three-step approach; supplier120

Airbus / Universal Registration Document 2022

commitment, supplier assessment, supplier engagement &development.
The Company strives to make environmental and social
responsibility a core element of its procurement strategy. This
includes managing the relationships with suppliers throughout
the sourcing strategy, supplier selection, contract management
and supplier monitoring and development. The Company’s
suppliers must comply with all applicable laws and regulations.
In addition, all business shall be conducted by suppliers incompliance with the principles of the Company’s Supplier
Code of Conduct, which is the document of reference for theCompany’s responsible supplier management. This Supplier
Code of Conduct integrates the group-wide values and principles
in line with internationally recognised standards and conventions(such as OECD and ILO).
In order to drive the Sustainable Supply Chain Roadmap(“SSCR”), a monthly Steering Committee chaired by the Headof Sustainability & Environment, and the Head of Procurement
Governance & Strategy and the representative of the Chief
Procurement Officer of the Company is implemented. The
Steering Committee includes Chief Procurement Officers of
Airbus Helicopters and of Airbus Defence and Space, as well as
the Head of Health & Safety, the Head of Product Safety and theHead of Ethics & Compliance, or their nominated representatives.
The EVP Communication and Corporate Affairs and the Chief
Procurement Officer of the Company act as sponsors of the
SSCR. In addition, the Head of Procurement Governance andStrategy is part of the Procurement Leadership Team and is
responsible for facilitating the communication on sustainability
activities between the SSCR and the Procurement Leadership
Team on a regular basis.

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

In 2022 the SSCR Steering Committee validated the annual
planning and quarterly reviewed the progress of its SSCR
implementation notably regarding the assessment of suppliers’
sustainability practices as well as the reinforcement of theengagement with suppliers. On top of those forums, the Chief
Procurement Officer of the Company also reports to the ECSC
on the progress of the Company’s responsible sourcing strategy
implementation.
Concrete sustainability targets have been included in the 2022
objectives of the Company’s Chief Procurement Officer (“CPO”)
and are directly linked to the CPO’s variable pay and cascaded
through the Company’s Procurement organisations:–– commitment by suppliers to Airbus Supplier Code of Conduct
for 85% of the 2021 sourcing volume;–– supplier sustainability assessments completed for 50% of the2021 sourcing volume;–– response of suppliers to CDP assessment for 75% of the 2021
sourcing volume.
All sustainability activities in the supply chain are based on thefollowing key elements and principles of due diligence following
the OECD Due Diligence Guidance for Responsible BusinessConduct:–– supply base risk mapping;–– supplier engagement and contractual requirements;–– supplier assessment/audits and development plans;–– policies, tools and reporting.
For any anti-corruption topics in the supply chain, theProcurement function cooperates closely with the Legal &Compliance department. The Company has also engaged intoa plan to further develop its due diligence mechanisms (see IV.
Due Diligence in the supply chain).
Those priorities are consistent with the most material topics
identified in the Company’s supply chain.

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 and detailed hereafter.

1.

Impact on the Company’s Reputation

Any industrial accident or other serious incident in the supply
chain, or any problems of the supplier to fulfil its operational or
product compliance may have a significant adverse effect on
the reputation of the Company and its products and services.
The Company’s reputation may also be affected by the public
perception of social and/or environmental impacts of its supply
chain’s industrial operations on local environments, communities,
biodiversity and the general public’s health.

2. Impact on the Local Environment
From the extraction of raw materials to the manufacturing ofparts delivered to the Company, a supplier’s industrial operations
may have significant adverse environmental impacts on the local
environment where the activity is performed, with possible
impacts on air, water, soil, biodiversity, workers’ occupational
health and safety, on the health of the general public, on the land
rights of the local or indigenous communities and on forced andchild labour (see salient risks in section “– 1.2.10 Human Rights”).

01
01

3. Business Disruption Risk
In the event of a supplier failing to comply with environmental,
human/labour rights, health and safety laws and regulations,even if caused by factors beyond its control, that failure may
result in the levying of civil or criminal penalties and fines
against the supplier. Regulatory authorities may require themto conduct investigations and undertake remedial activities,
curtail operations or close installations or facilities temporarily
to prevent imminent risks.

4. Risk of Product Non-Compliance
The various products manufactured and sold by suppliers mustcomply with applicable environmental, human/labour rights,
health and safety laws and regulations, for example those covering
substances and product composition. Even if a supplier seeks
to ensure that its products meet the highest quality standards,
increasingly stringent and complex laws and regulations, newscientific discoveries, delivery of defective products or the
obligation to notify or provide regulatory authorities or others withrequired information (such as under the REACH regulation) may
force it to adapt, redesign, redevelop, recertify and/or remove its
products from the market. Seizures of defective products may
be pronounced and could prevent delivery to the Company. In
response, a Procurement Task Force has been established toensure group-wide governance for supplier management andassessment of chemical regulations and obsolescence impact.
This task force also coordinates communication to suppliers
on substance issues and on substitution solutions qualified by
the Company.
In this frame, the Company provided to its supply chain
a dedicated Tool Kit on “REACH Substances – Certain
Requirements & Substitution programmes”. This tool kit reminds
the main principles of the REACH regulation as Authorisation,
Restrictions and Substitutions programmes in order to raise theattention of the supply chain on these challenges.
In response to the above 1. to 4., the Company deploys
responsible sourcing activities and specific supplier due diligence
actions in the frame of the SSCR.

IV. Supply Chain Vigilance Plan
1.

Due Diligence in the Supply Chain

In 2022 the Company launched a project aimed at reinforcing
due diligence in its supply chain. The outcomes of the projectwill be rolled out in 2023. Activities under this project coverprimarily the Company’s own suppliers; nonetheless, if an alert
raised is linked to an upstream supplier, the Company will act
on it as appropriate.

Alert and Grievance Mechanism
From 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 Business
Integrity”. Access to OpenLine has been reiterated in the revised
Supplier Code of Conduct.
In addition to OpenLine, the Company’s sustainable supply chain
team may receive alerts from other sources including through the
supplier onboarding process, media or directly from employees.
During 2022, the sustainable supply chain roadmap received
alerts on 44 potential allegations relating to environmental andhuman rights concerns in its supply chain. The number of alerts

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increased in 2022, following the inclusion in a more systematicmanner of sustainability criteria into the screening (including
human rights, environment, health and safety). Analysis and/or investigations of those alerts are either complete or still inprogress, according to best practice developed by the Legaland Compliance team 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, preparation of an investigation
report which summarises the findings and proposes remedialactions necessary to reasonably respond to and prevent therecurrence of the conduct, if any;–– closing the investigation and reporting;–– monitoring of the implementation of remedial actions.

Supplier Risk Mapping
The supplier risk mapping is based on the alerts and grievancemechanisms detailed above, as well as the inherent risk
mapping described below. It covers primarily tier-one suppliers;
nonetheless if an alert raised is linked to a sub-tier supplier,
the Company will include it in its risk mapping and act on it asappropriate.
Since 2018, the Procurement team has carried out annual
proactive sustainability inherent risk mapping in line withinternational guidance, internal commodity expertise andexternally available country indices. In 2021 and 2022, withthe support of external advisors, the Company upgraded its
inherent risk mapping methodology building on risk indexes
considering the location and the type of activity performed by the
suppliers. This allowed the delivery of an up-to-date suppliers’
sustainability risk assessment and to identify suppliers most at
risk regarding human rights, environment and health and safety(e.g. association freedom, decent wages, pollution).
In 2022, the Company updated its inherent risk mapping torank its active suppliers according to this methodology. The
riskiest suppliers will be invited to undertake an evidence-based
desktop sustainability assessment according to the programme
developed in 2022 with IAEG (see the section Engagement andawareness hereafter). Based on this assessment, a supplier
not satisfying the Company’s sustainability expectations, whichmeans not meeting a defined level of maturity for each category,
will be classified as “red flag”, and will be requested to develop
an improvement action plan.

Assessment – Evidence-based Desktop Assessments
The Company conducts two types of evidence-based desktop
assessments: sustainability and carbon maturity. Since 2019,
the Company has worked with external expert companies to
conduct evidence-based desktop sustainability assessments
and specific on-site assessments covering human rights, labour
practices, health and safety and environment. At the end of2022, 99.5% of the suppliers identified as high risk according
to the Company’s 2019 risk mapping methodology (in 2022,
19 suppliers were removed from the list for reasons such as
not doing business with the Company anymore, or being a
distributor) completed an evidence-based desktop assessment
compared to a target of 100%.

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Airbus / Universal Registration Document 2022

In addition to suppliers identified as high risk, the Company
extended the coverage of the assessment to additional suppliersin order to progressively cover a more representative portionof its supply chain. At the end of the year 2022, 73% of thesourcing volume was covered. Out of the suppliers completingan assessment, 16% (118) have at least one red flag (mainly
linked to the environmental criteria). Those red flags are mainly
linked to the environmental category for which the Company
is requesting details on processes in place at the suppliers
for capturing and satisfying regulatory changes, as well as fora certified environmental management systems addressing,notably, management of chemicals and GHG emissions.
Since 2020, the Company has engaged in the supply chain
programme of the CDP in order to promote transparency aboutclimate actions in the Company’s supply chain. See section 5.
“CO2 emissions”.

Assessment – On-site Assessments
A particular situation triggered by a result of an evidence based
desktop assessment, or by any sustainability alert, may lead
the Company to request an on-site assessment at a particularsupplier site. In 2022, the Company performed seven on-site
assessments. The Company engaged with suppliers on findings
in order to improve the situation, when relevant.

Engagement & Mitigation Measures
The Company engages directly with suppliers in a number ofdifferent circumstances:–– if sustainability alerts have been reported linked to those
suppliers;–– if a supplier has been identified as risky in the frame of therisk mapping methodology;–– if a supplier’s assessment results have raised concerns on
one or more sustainability aspects.
The results of the completed assessments (including asustainability or CDP assessment) are communicated during
events with suppliers and engagement takes place with all
suppliers presenting findings. In addition, the Company reviews
its relationship with suppliers who refuse to participate in its
assessment programme.
On top of the above-described engagement linked to due
diligence and findings, the Company is also engaging with
its supply chain as described in section 3. “Engagement andawareness” below.

2. Traceability
Substances
See section III. “Risk management”.
End of 2021, the Company launched a project to digitise the way
for the suppliers to provide substance in products information.
The main objective is to improve traceability and transparency on
substances in products from the supply chain related to regulatory
requirements. It also aims at replacing the current process andallowing an automated way of sharing this information. The
solution for supplier substance data collection project started
in 2022, with a target for the Company’s commercial aircraftbusiness of 290 suppliers’ sites to be deployed in the digitalsolution by year-end. At the end of 2022 this target was achieved.

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

Responsible Mineral Sourcing
The Company places great importance on the responsible
sourcing of materials used in manufacturing. Some minerals
including 3TG (tin, tungsten, tantalum and gold) are necessary
for the proper functioning of components within its products.
The Company largely does not directly import minerals, butthese minerals are found in certain products the Company
procures. In that context, the Company requires all suppliers
to comply with applicable laws and regulations on conflictminerals, including any 3TG conflict minerals. In 2019, theCompany released a Responsible Mineral Policy, which details
its engagement to improve safety and human rights conditions in
the mineral supply chains. As described in the section Work with
External Stakeholders hereafter, the Company benefits from the
Responsible Mineral Initiative (“RMI”) experience and available
audits, tools and standardised ways of working.
For the small portion of direct procurement of parts containing
minerals in the Company’s Defence and Space Division, a
dedicated Conflict Mineral Management System has been
established. For this small portion of direct import, the Defence
and Space Division is proactively asking suppliers to disclose
proof of responsible sourcing and is cross-checking thisdata with third parties’ audits available through the RMI tradeassociation. In 2022, the Company’s Defence and Space Division
imported articles made of tungsten of the relevant Taric code
above regulatory binding threshold; those articles are used ascounterweight for aircraft. The Company’s Defence and Space
Division forecasted this import and performed relevant due
diligence for the unique supplier supplying the material involved.
The supplier was informed that the Company’s Defence andSpace Division is expecting responsible sourcing for the tungsten
purchased under this contract. The supplier demonstrated
that this material was exclusively originating from responsible
sources.
This claim of responsible sourcing is based on third party auditsof the smelters involved to deliver the products. The Company
reviewed this claim and recognised that the audits were part of
the RMI scheme and that smelters involved in the supply chainof the tungsten concerned metals conformed to RMI standards.
The Company is also monitoring developments from theEuropean Commission on critical raw materials (CRM) andis investigating the possibilities to take a deeper look at its
related supply chain, through direct involvement and/or tradeassociations. The Supplier Code of Conduct formally requires
suppliers to establish a policy and a management system toensure that critical raw materials are sourced responsibly.

3. Engagement and AwarenessContractual Requirements
The Company’s standard procurement contract templates have
evolved over the last few years to reinforce clauses relating tosustainability and environment which require suppliers to:–– comply with all applicable laws and regulations dealing withlabour and employment, health and safety, environment, anticorruption and bribery and personal data protection in relation
to production, products and services;–– provide information on substances used in manufacturing
processes and contained in the product itself (covering both
hazardous substances and conflict minerals);–– provide information on environmental, health and safety
matters such as safe usage and management of products
across its lifecycle (including waste management);

01
01–– implement an Environmental Management System based on
ISO 14001 or equivalent;–– comply with the Company’s anti-corruption and bribery
requirements;–– commit to apply and cascade in its supply chain the principlesof the Company’s Supplier Code of Conduct, including withregard to environment, human rights, labour practices,
responsible sourcing of minerals and anti-corruption;–– comply with the Company’s sustainability requirements suchas maturity assessment by an external expert company andcompletion of a questionnaire during the call-for-tender phase.
The Company’s contractual requirements enable assessmentof levels of suppliers’ compliance.

Processes
In 2021, the SSCR Steering Committee agreed to anchor
sustainability requirements into procurement processes of theCompany. In 2022, the Company introduced sustainability inits supplier selection process. Sustainability is now one of theselection criteria in a call for tender. Suppliers are requested tofill in a sustainability questionnaire based on their governanceand on the specific performance of the product or service
the Company intends to source. The questionnaire notably
requests information on certifications (e.g. environment, healthand safety) and processes, as well as on resources used andon the impact of processes related to product manufacturing
or service delivery.
This also includes the agreement from suppliers to regularly fulfil
the evidence-based assessment on sustainability (see section
Assessment above) and for the most important suppliers – basedin part on annual spend with the Company – to be transparent on
their climate change strategies (see section 5. “CO2 emissions”
below). This will ultimately require suppliers to cooperate whena sustainability risk is identified, including with further analysis
into the supplier’s supply chain (see paragraph Contractual
requirements above).

Supplier Award and Dialogue
The Company is fostering suppliers’ engagement through direct
dialogue and values the commitment, contribution and efforts of
its supply chain to improve on sustainability topics.
In 2022, the Company launched the first Airbus Supplier
Sustainability Council establishing a framework to step-up
collaboration within its supply chain on sustainability and fosteringa new model of engagement with suppliers. The target is tolaunch concrete improvement initiatives co-led by representativesof the Company and of members of the council. The council
will focus on areas such as decarbonisation, transparency
and engagement acting as key enablers to accelerate specificinitiatives from industry bodies such as IAEG and to share bestpractices across the full supply base.
Sustainability is a standard agenda item in regular reviews
or conferences with suppliers, including the Annual SupplierConference for the Company’s commercial aircraft business,
the Defence and Space Division supplier conference or the
Suppliers’ councils. During these events, workshops take place
to enable exchange on best practices and future collaboration.
The Company continues to give awards to its suppliers
contributing positively to sustainability. In 2022, SABCA wasawarded by the Company’s commercial aircraft business for
its 5-year plan to cut CO 2 emissions at its site by installing
wind turbines, solar panels and optimising transportation of

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

its employees and logistic flows. For the second time, Hexcel
Composite was also presented with an award for its sustainability
efforts and its innovation in composite recycling during the
Defence and Space Division Supplier Awards.

–– different additional communication means are being usedsuch as: posters, kakemonos, a dedicated intranet website,
participation in internal events promoting sustainability
initiatives.

Training & AwarenessGemba 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.

Trainings & Competences
The Company’s Procurement Academy defines jobs,
competences, skills, and associated training to ensure
procurement employees in all Divisions are ready to face current
and future challenges. In 2022:–– the Sustainability Fundamentals competence was added
to all procurement jobs to ensure generic understanding ofsustainability principles;–– a new job “Procurement Sustainability Officer” was created forpeople in the organisation who are dedicated to sustainability
in the supply chain;–– a new competence “Sustainability Concern Management”
was defined to develop the ability to identify situations where
sustainability is at stake in all its dimensions (e.g. Human Rights,
Environment, Health & Safety), as well as to define measures
to comply with Company’s Supplier Code of Conduct. This
competence is part of the Procurement Sustainability Officer
job and will be added to buyer and Supply Chain Quality
Management (SCQM) jobs when relevant.
To support people upskilling, on top of existing Company
training courses on sustainability, the Company’s Procurement
organisation developed an awareness of the contractual
environmental clause with pilots in 2022, as well as a specifictraining on human rights with pilots in 2022. This awareness andhuman rights training will be deployed from 2023, giving priority
to buyers and quality and supply chain managers in charge ofrisky suppliers.
Additionally, sustainability modules are embedded in
Procurement’s newcomer induction path and Procurement
Manager Development Programme (development programme
for future leaders in the Procurement function).
Communication
During 2022, the Company has continued to implement its
communication plan to raise awareness on the different pillars
of its sustainability ambition amongst its employees, suppliers,
and customers. In particular:–– awareness sessions have been carried out in relation to
the initiatives of the supply chain roadmap: for instanceaccompanying the deployment of the new sustainability
questionnaire in calls for tender, or developing the ability ofprocurement operation teams to identify sustainability issues
when visiting suppliers on-site;–– communication activities in 2022 spread the key messages
about the importance of sustainability. Internally, for instance,
there was a presentation of the SSCR progress during the
procurement annual roadshow, and a SSCR “marketplace”
during the annual sustainability town hall. Externally, theCompany’s CPO participated in the IAEG sponsor meeting
about supplier assessment and development, as well as the
Bundesverband für Materialwirtschaft, Einkaufe & Logistik(“BME”) conference in Berlin;–– the toolkit presenting sustainability in the supply chain,
deployed in 2021, targeting internal and external population,is regularly updated;

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Work With External Stakeholders
The Company is a founding member of IAEG, which is working
on common aerospace industry standards and tools to manage
environmental obligations. More specifically, for the supply chain,
IAEG has developed:–– a supply chain environmental survey, which the Company
implemented in 2019 and which will be used as environmental
assessment module, as mentioned in the section “Assessment”
above;–– an EMS implementation guideline to encourage a wider uptakeof EMSs as appropriate for each supplier in a phased approachand cost effective, consistent and supportive manner;–– the definition of an Environmental Qualification Program toassess and develop the environmental maturity of suppliers.
Under 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 andthe selected service provider to build a sectoral approach forsupplier engagement and 2023 will be the year of deployment.
As a co-founder of the International Forum on Business EthicalConduct (“IFBEC”), the Company is supporting the applicationof global standards for business ethics and compliance. IFBEC
members have established a Model Supplier Code of Conduct
which expresses the minimum ethical standards to be appliedby suppliers throughout the aerospace and defence industries.
It also encourages suppliers to go beyond legal compliance,
drawing upon internationally recognised standards in order toadvance in social and environmental responsibility and businessethics.
All suppliers are now being asked to sign a confirmation ofcompliance with the principles of the latest version of the Supplier
Code of Conduct (or to confirm their own practices are alignedwith the principles set out in this Code), and to cascade theseprinciples throughout their own supply chains. The Company iscommitted to support suppliers, where necessary, to improvetheir own human rights due diligence.
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 2022, it decided to extend its membership to the whole
Responsible Business Alliance (“RBA”) initiative.

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

4. Other Initiatives
Promoting Disability-Friendly Companies
Since 2011, the Company has been promoting employment of
disabled people by its suppliers starting with a particular focus
on France. Disability-friendly companies often take part in thecall for tender process either through direct offer or partnership.
The procurement volume with disability-friendly companies has
been multiplied by five over the decade going along with thedevelopment of the disability-friendly companies’ ecosystem.
In 2020 and 2021, the Company’s global volume of business
was drastically reduced by the pandemic impacts. It has also
resulted in a significant reduction of the volume with disabilityfriendly companies. In 2022, the volume with disability-friendly
companies is back to pre-pandemic levels: more than € 50 millionof annual turnover which represents a 20% increase compared
to 2021. Around 60 disability-friendly companies are working
with the Company to date.
The Company’s ambition is now to reach € 100 million annual
turnover with disability-friendly companies in 2025. The
Company will continue to develop business with the disabilityfriendly companies through direct contracting or partnerships,
primarily in France and also in Spain and Germany. In addition,
the Company is actively developing inclusion awareness. For
instance, in October 2022, the Company organised a (Dis)
Ability forum in Toulouse with 45 disability friendly companies
and 250 participants. The Company also decided in 2021 tobe the sponsor of the Digital Consortium, created by the UNEA
(Union Nationale des Entreprises Adaptées) and composed of 80
French disability-friendly companies. The first contracts with thisconsortium were about to be signed at the time of publicationof this report.

Plastic-Free Supply Chain
Based on the UN SDGs, specifically SDG 12 (responsible
consumption and production), a plastic-free supply chain project
was launched in 2019 within the Company’s Defence and Space
Division with the aim of reducing, reusing and recycling singleuse plastic waste and packaging in the Division’s scope of
involvement by 2025. The Division achieved a single-use plastic
reduction of 24.5% in the logistics area at all sites in 2022 versus
a 2020 baseline. This achievement has been possible throughdifferent actions: implementation of plastic-free packaging
alternatives, improved plastic-reduced processes, introductionof the packaging clause in the Airbus Supplier Code of Conduct

01
01

and in the Division’s contractual Environmental Annex, and anincreased awareness on plastic consumption and waste among
employees. The target is to progressively move to a more circularapproach to the use of plastic.
5. CO2 emissions –see “– 1.2.2 Climate Change” / IV. Transition
plan / Supplier engagement, “– 1.2.17 ESG Data Board”.

V. Outlook
The SSCR is constantly evolving to actively endeavour to mitigate
sustainability risks in the supply chain, adapt to progressing
sustainability requirements and support the Company’s ambition
to be more sustainable.
The SSCR is building up on its installed initiatives to deploy them.
The SSCR is as well continuously enlarging its impact. In 2023,
notably this includes:–– reinforcing the risk identification and risk assessment of theCompany’s supply chain due diligence plan with enlarged
targets;–– continuing to ensure the adherence of the Company’s Supplier
Code of Conduct principles throughout the Company’s supply
base;–– extending the scope of supplier sustainability assessmentsby requesting new suppliers to perform such an assessment
and by extending to existing contracts in order to reach 80%of the spend volume in 2025;–– engaging with suppliers based on the assessment outcomes
and developing action plans when required;–– becoming a member of the RBA;–– for the calculation of the Scope 3 Purchased goods andservices category, the Company has engaged in some work
to launch a transition from a spend based methodology to a
hybrid (i.e. spend based mixed with mass based) methodology.
The target is to be able to start reporting on hybrid approachin 2024 on 2023 data; and–– developing the collaboration within the supply chain in
the frame of the Airbus Supplier Sustainability Council
through concrete activities notably on decarbonisation andtransparency ambitions and roadmaps.
To support people upskilling, on top of existing Company trainings
on sustainability, the Company’s Procurement is developing anawareness on the contractual Environmental Clause with pilots
in 2022 for a 2023 deployment, and a specific training on Human
Rights with pilots in 2022 for a 2023 deployment.

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1.2.16 Community Impact
I.

Introduction

The Company takes global collective action to support communities with a focus on the most vulnerable, the environment, andyoung people throughout the world where the Company operates. Products, services and employees are mobilised with focus onequitable and measurable solutions, in line with the Company Purpose.
Community Impact

GRI

SDGs

413 Local communities
Highest governance body(ies)involved

Related Corporate Reference
Documents

All 17 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

2021

2022

Number of Sustainability Ambassadors

207

448

0

4%

% of employees onboarded to the +impact platform
Additional resources

Community impact on Airbus.com , Airbus Foundation on Airbus.com, including its annual reports

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 markets where the Company operates has been
established, as welI as a committee of specific topic experts who
provide guidance, assessment and recommendations according
to the Community impact priority themes.
Community Impact has been integrated into the businessat policy, directive and operational levels with a formalised
assessment and decision process now in place for corporate
donation requests submitted by business lines. Awarenessand adoption of the policy is supported by the Sustainability
Networks, including the Sustainability Ambassador network
which grew by 116% in 2022. In addition, there are standard
reporting lines to the Sustainability & Environment organisation
with top level oversight provided by the ECSC at the Company’s
Board of Director level.
The Airbus Foundation and Airbus Foundation Endowment
Funds are registered as non-profit entities of general interest
under French law, with specific Articles of Association thatdefine their respective mission and remit. Their strategy andoperations are led by the managing director and each entity has
formal governance with its own board of directors comprisedof membership from across the founding companies, employee
representatives and external experts. The Airbus Foundation
and Airbus Foundation Endowment Fund annual reports andaccounts are submitted annually to the French authorities.

III. Implementation/Activities
2022 focused on strengthening the Company’s collective
approach to community impact, bringing together the various
business, non-profit, and employee engagement channels
under a collective mission with integrated processes and tools

126

Airbus / Universal Registration Document 2022

to support the deployment across the business. Having a
consolidated, focused strategy proved vital during a year which
saw a compound of societal challenges – communities continued
to cope with or recover from the COVID-19 pandemic; climate
related disasters; and conflict. All of which not only generated an
immediate emergency response need, but also the longer-term
impact on the global economy.
During 2022, as part of the development of the Airbus Community
Impact policy, the Community Impact network implemented
22 pilot projects across 15 countries to test the new strategy
and inform the future impact measurement methodology.
In November, the Company in cooperation with the Airbus
Foundation, also launched the +impact digital platform globally
across the Company, providing employees with a dedicatedonline space to learn about the new policy and partnerships,
create and coordinate volunteering opportunities, fundraise,
donate and take positive action on sustainability topics.

Supporting Vulnerable Communities
During 2022, 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.
In addition to the COVID-19 and Ukraine response, partnerships
were developed in several regions to support vulnerable
community needs. In Asia Pacific, the Company partnered with
the Manila Water Foundation to install a clean water station ina school located in a remote province in the Philippines that
previously lacked access to a safe water supply. In Latin America,
the Company partnered with TECHO, a non-profit organisationthat mobilises youth volunteers to fight extreme poverty, toconstruct transitional housing and implement social inclusion
programmes. This partnership resulted in the construction offour homes for four vulnerable families in Santiago de Chile,
Mexico City and Sao Paulo, with the participation of Company
employees. These homes were built following full consultation

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

with the families and wider communities as well as assessmentof the broader ecosystem to ensure that a network of support
exists for the longer term.
Company employees also worked together to show theirsupport for vulnerable communities. In the US, employees fromall divisions participated in the Make a Difference fundraising
initiative in aid of World Central Kitchen. In Spain, a group of
volunteers prepared humanitarian kits for the Spanish Red
Cross; and across our sites, employees rallied to fundraise andcollect goods for organisations supporting the immediate needsof Ukrainian refugees. For the second year running, the Airbus
Foundation also participated in the Action Against Hunger global
wellbeing challenge, Connected Against Hunger, with nearly
1,800 Company employees participants.
The Airbus Foundation continued to support its partners in
disaster response by coordinating relief and goodwill flights
carrying more than 138 tons of aid to Madagascar, Moldova,
Poland, Pakistan, and Ethiopia. Aid transported included
emergency shelter, medical and hygiene supplies, food andkitchen equipment. Additionally, 209 helicopter flight hours werechartered to Kenya, Madagascar, Philippines and the Democratic
Republic of Congo to respond to flooding, malnutrition anddisplacement of populations. The Foundation also responded
to 75 satellite imagery requests from partners representing
around 21,700km2 for disaster assessment and response plans,
to monitor displacement and flooding, and plan medical activities
in Yemen, Chad, Iraq and Sudan amongst others.
In Kenya, the ongoing project to install innovative water units inunder-served locations reached a new level of maturity with theupgrade of four existing units and installation of three new units.
To date, 8,350 students have been given access to safe waterand educated on good hygiene practices. The communities
around these seven schools in Mukuru are also benefiting fromthe safe drinking water.
In addition, bespoke satellite imagery training was provided
to several humanitarian partners to increase their capacity insatellite imagery analysis and interpretation, as well as leadershiptraining via the Airbus Leadership University. Via its partner, theFrench Foundation of the Academy of Medicine, the Foundation
helped deliver Helicopter Emergency Medical Services (HEMS).
A total of 300 medical personnel in Thailand and Mexico wereupskilled in emergency and disaster medicine techniques.

Supporting the Future Generation
It is crucial that the Company inspires and engages young people,
particularly by playing an active role in fostering inclusion, diversity
and community values at an early age. Across its Community
Impact channels, the Company collectively reached over 23,000
young people directly through mentorship, education initiatives
and workshops during 2022.
Corporate partnerships and STEM outreach programmes
focused on using the expertise and knowledge of Company
employees to inspire interest in science, technology, engineeringand mathematics (STEM) and engaged more than 8,700
young people from underserved communities to develop theirawareness and confidence to make decisions about their future
education and career choices.
In the Asia Pacific region, five youth projects were developed incollaboration with partners including local and national ministries,
non-profit organisations, and public sector structures. For

01
01

example, in Indonesia, the Company worked with the Ministryof Education to reach 120 students from rural schools to runworkshops with Company volunteers on STEM and STEM
careers. In the Philippines, the Company partnered with
MoveEd, an organisation which provides early childhood careand development programmes for children aged 3-6 years, toincrease access to formal and informal education opportunities,
also working with the families to raise awareness about thelong-term value of education. In China, the FUTURE by theCompany project partnered with the Civil Aviation Museum in
Beijing to boost quality education access. Following a series ofworkshops hosted by Company’s volunteers, the Company andthe museum established an education base in the museum for
future cooperation.
The Airbus Foundation enriched its Airbus Foundation Discovery
Space content with 19 new videos and booklets to practiceexperiments at home or in the classroom. The content explainssome of the science behind aerospace, including sustainability
and girls in science topics. The Foundation’s partnerships for
its youth programmes span 17 locations in Europe, Africa,
the Middle East, Asia, and the Americas. Working with local
partners, each programme was built on specific local needs.
During 2022, over 250 Company volunteers participated, and theprogrammes directly reached around 9,000 young students, witha specific attention given to gender balance and underserved
communities, also including a pilot project for children living in a
refugee camp. The fourth edition of the Moon Camp Challenge
built on the success of prior years with 2,597 projects submitted
from 53 countries by over 5,600 students supported by nearly
600 teachers.

Protecting the Future of Our Planet
During 2022, the community impact pilot projects focused
primarily on employee awareness and action to preserve andrestore local biodiversity. For example, in the UK and India,
the Company partnered with local non-profit organisations to
restore three water bodies which had fallen into disrepair andneglect. In India, educational sessions were also carried out
with surrounding communities to increase awareness about
the ecological importance of the water bodies, avoiding using
them to dispose of waste, and engaging the communities in thelonger-term maintenance and protection.
Through an innovation project driven by employee volunteers,
the Company cooperated with two universities (Toulouse andColombia) and a local non-profit organisation to bring renewableenergy to off-grid households in Peru and Colombia. Situatedin the highlands of Peru, one of the affected communities
includes 40 households, nine of which lack access to electricity.
The Company supported the placement of two students
who dedicated their first month to build two domestic windturbines and install them for two households plus complete theassociated knowledge transfer to enable the families to maintainthem. One of the families makes and sells bread to surrounding
communities – thanks to the wind turbine, they are able toincrease their production as well as reduce their expenditure on
expensive batteries and generator fuel. In Colombia, a third windturbine was installed for a rural school with around 30 children.
The school now has a stable and clean source of electricity andhas been connected to the internet which is enabling accessto quality education materials as well as refrigeration to store
food for the children.

Airbus / Universal Registration Document 2022

127

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

The Airbus Foundation continued to develop its environment
partnerships, focusing on climate change mitigation andmonitoring, climate change adaptation and disaster prevention
and protecting biodiversity. This included continuing thecollaboration with Connected Conservation Foundation to
support the preservation of wildlife and natural ecosystems inSouth Africa and Kenya through the use of satellite imagery. The
Airbus Foundation also completed the first phase of its three-year
project with IUCN, providing technical data, satellite images andproject management to contribute to the validation of IUCN’s
forest restoration barometer. Project objectives are to assess
tree canopy changes over a temporal range, characterisationof tree canopy changes and assessment of the sufficiency of
restoration activity.

IV. Outlook
In addition to enhancing the methods to capture and measure
impact, the Company intends to study and progress onopportunities for integrating community impact into business
operations. One example is social procurement where companies
can use their purchasing power to create sustainable social value
through procuring from social benefit suppliers.
The Airbus Foundation is currently reviewing its global portfolioof activities for improvement and development. Near-term plans
involve developing the product portfolio to be offered to partners,
initiating Youth programmes in 10 additional locations, including
Tunisia and Morocco, and formalising a new environmental
partnership.

1.2.17 ESG Data Board
Environmental Performance
GRI

KPI

Unit

2022

2021

2020

2019

2018

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

GWh

3,717

3,762

3,815

4,624

4,679

GWh/bEUR

62.4

71.2

75.8

64.3

-

Energy consumption from stationary sourcesand electricity

GWh

2,594

2,717

2,672

2,987

3,062

Energy consumption from stationary
sources

GWh

1,190

1,351

1,274

1,391

1,403
1,366

Energy intensity (per Total Revenues)

natural gas

GWh

1,108

1,307

1,235

1,347

of which bio-methane

GWh

23

11

0

0

0

heat generated from biomass

GWh

37

25

24

27

17

other fuels

GWh

44

19

16

17

20

GWh

1,404

1,366

1,397

1,595

1,659

purchased electricity (incl. renewable
or low carbon sources from grid)

GWh

1,280

1,232

1,274

1,460

1,472

EN3

of which purchased electricity
with REC/GoO*

GWh

534

416

251

163

0

EN4

purchased electricity from renewablesources PPA*

GWh

0.1

0.0

0.0

0.0

0.0

self-generated electricity from renewablesources

GWh

1.2

0.8

0.9

0.2

0.2

Energy consumption from electricity,heat and steam

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

41.8%

33.8%

19.8%

11.2%

0.0%

123

133

123

135

187

GWh

1,123

1,045

1,144

1,638

1,617
1,068

GWh

711

681

711

1,061

of which sustainable aviation fuel

GWh

22

4

1

0

0

of which used in Beluga Transport

GWh

330

298

290

421

413

of which used in flight test

GWh

381

382

421

640

654

GWh

365

335

405

540

509

Energy consumption from renewable
or low-carbon sources

GWh

619

456

277

191

18

Percentage energy from renewable
or low-carbon sources

%

16.6%

12.1%

7.3%

4.1%

0.4%

road & maritime fuel used in Oversize
Surface Transportation: 2022 data verified by EY®, based on limited assurance.

128

%
GWh

Airbus / Universal Registration Document 2022

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

GRI

KPI
Total Scope 1 + Scope 2 CO2 emissions(location based)Airemissions

Total Scope 1 + Scope 2 CO2 emissions“market-based” (location based net of REC)*
EN15

Scope 1&2 GHG intensity(per Total Revenues)

Unit

2022

2021

2020

2019

2018

ktons CO2e

857

889

935

1,139

1,163

ktons CO2e

762

809

880

-

585

744

739

108

165

169

319

350

395

424

207

240

295

360

424

ktons CO2e425,454400,611383,266

650,366

623,215

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

gCO2/pax.
km

64.4

66.3

67.7

72.2

75.9

EN17

Commercial aircraft –(“no SAF” scenario)*ktons CO2e494,893458,738

432,245

723,110

683,774

EN18

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

74.9

75.9

76.4

80.3

83.3

Other products*

EN18

14.4

16.8

18.6

Total Scope 1 GHG emissions

ktons CO2e

555

570

of which from flight test

ktons CO2e9899

Total Scope 2 GHG emissions – location
based

ktons CO2e

302

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

ktons CO2e

Commercial aircraft IEA-SDS SAF
uptake*

1,162

15.8

Scope 1 & 2 EN16

gCO2e/EUR

1,104

01
01

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

Scope 3VOC

EN20

ktons CO2e

10,703

9,343

NA

NA

NA

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

NA

8,439

9,940

NA

NA

Indirect GHG emissions – Category 6 –Business Travel*

ktons CO2e

47

17

22

109

112
1,518

Total VOC emissions*

tons

1,120

1,042

1,048

1,462

SOx

Total SOx emissions

tons

16

14

13

14

15

NOx

Total NOx emissions

tons

207

226

210

234

217

EUR/ton

150

150

30

30

-

Score

A-

A-

A-

B

-

m3 3,672,217 3,345,261 3,681,009 4,529,665

4,186,553

Internal Carbon Pricing

Other
Information

CDP Rating (based on previous year
disclosure)
Total water withdrawal (note: formerly reported
as “consumption”)
EN8

Water

EN22

EN23
Waste

EMS
certificationof which percentage purchased

%

79%

79%

78%

80%

79%

of which percentage from surface water
sources and collected rainwater

%

4%

5%

5%

4%

5%

of which percentage from ground water
sources

%

16%

16%

17%

15%

16%

of which percentage from all areas
with high water stress*

%

30%

34%

34%

35%

33%

3,097,733 3,728,505

3,335,213

Total water discharge

m3 2,956,333 2,887,442

Total waste production, excluding exceptional
waste

tons

73,751

71,15274,89899,042

100,38928%

of which percentage hazardous waste*

%

25%

26%

29%

27%

Material recovery rate*

%

60%

55%

51%

54%

57%

Energy recovery rate

%

16%

20%

21%

21%

20%

Landfill and incineration without energy
recovery rate

%

23%

25%

28%

25%

23%

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

%

88%

88%

88%

87%

%

92%

92%

92%

92%

Percentage of operations covered by reporting(in % workforce): 2022 data verified by EY®, based on limited assurance.

Airbus / Universal Registration Document 2022

129

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

Scope of reporting: Reported data covers 84 sites. Company’senvironmental reporting guidelines include sites worldwide witha workforce on-site higher or equal to 100 employees. Note that
only 100% consolidated entities are taken into account with the
exception of ATR and Tianjin operations. 2018-2021 figures wererefined to rectify actuals for some entities.
2021 restatements: some 2021 figures were restated to reflectchanges in reporting perimeter and to integrate information
received post-closing 2021.
Methodology and assumptions:
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.
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, especially related to its
commercial aircraft activities. In order to provide the level oftransparency, the Company reports in-use emissions of the
products it delivers (Scope 3 – Use of sold products). This started
in 2020 with the disclosure of emissions from commercial aircraft
products, and was extended to other products in 2021, namely
civil helicopters initially and further complemented by military
aircraft and helicopters in 2022. The Company will continue toprogressively extend the scope of reporting to other familiesof products, for which the calculation methodologies are still
under development. Nevertheless, current results and advanced
estimations have shown that the vast majority (over 90%) of
the Scope 3 – Use of Sold Product impact of the Company’s
products is due to the commercial aircraft family of products,
and that this situation is unlikely to change once all the productfamilies will have been assessed.

130

Airbus / Universal Registration Document 2022

Additional methodology information:–– the Company’s emission calculation methodology wasdeveloped by a team consisting of key personnel fromthe engineering and environment departments and is 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 (3.846kg CO2e per kg offuel for fossil Jet-A / Jet-A1). This factor represents a “wellto wake” life cycle analysis to assess the overall GHG
impacts of a fuel including each stage of its production
and use.
–– For commercial aircraft: assumptions include the aircraft
load factor, aircraft operational usage and average in-service
lifetime. Primary data collected within the Company was
also used, such as aircraft performance and configuration
parameters. Emissions related to commercial aircraft engine
start and taxing have been included, however, emissions
from the APU and ground handling equipment have been
excluded. For the purpose of this calculation, the Company
integrated into commercial aircraft Scope 3 the likely
usage of SAF over the product lifetime, as per the IEASDS assumptions. Other operating conditions of the aircraft
were considered to be static over the whole service life. In
addition, the Company reports for reference an indicative
figure based on a zero SAF usage. A330-200 deliveries
destined to A330-MRTT conversion were excluded from thecommercial aircraft perimeter and included in the military
aircraft perimeter as part of the “other products” 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.
Air Emissions – Scope 3 GHG efficiency for delivered
commercial aircraft (as per SBTi-validated target). In 2022,
the Company updated the definition and methodology of its
efficiency metrics in order to align with the SBTi methodology
and leading to a restatement of past years. Namely, the evolution
can be explained by changes in the following two assumptions:the integration in the emissions related to the upstream fuelproduction and the consideration of the likely usage of SAF overthe product lifetime, as per the IEA-SDS assumption.

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

Air Emissions – Scope 3 Purchased Goods and Services.
This evaluation was performed using a dedicated tool developedby the International Aerospace Environmental Group (IAEG)
offering a choice between two approaches: a “spend based”
approach, allocating emissions to each amount spent in specificcommodities and a “mass based” approach, allocating emissions
to quantities of materials purchased. For this first evaluation, theCompany has used the “spend based” approach. While thismethod embeds a certain degree of uncertainty, consideredhigh by the IAEG on a certain number of emissions factors usedin the methodology, it provides a relevant view of the sourcesof 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. In 2022, the Company
improved the accuracy of some spent-based assumptions
leading to a restatement of 2020 figures. In addition, the use
average emission factors decreased from 6% of spent in 2020
to 2.5% in 2021 thanks to refined data allocation. Adjustments
can be expected in future disclosures as the Company intends tofurther 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.

01
01

Air Emissions – VOC: 2022 VOC emissions data is estimated.
2022 actuals will be consolidated in April 2023.
Water – Areas with high water stress: areas identified withhigh or extremely high water stress. Water stress level as defined
per the Aqueduct Water
Risk Atlas (medium scenario for 2030).
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. 2022 material and energy recovery rates will
be refined when final waste treatment information of year-end
waste – representing about 9.5% of total – will be provided bywaste collector companies. Meanwhile, unavailable information
was estimated using 2022 actual breakdown ratios of the 90.5%
available data.

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131

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

Social Performance
WORKFORCE

Total number of employees

2022

2021

2020

2019

134,267

126,495

131,349

134,931

79,13473,56078,48780,985

By business segment
Commercial aircraft activities
Airbus Helicopters

20,803

20,12620,02620,024

Airbus Defence and Space

34,33032,80932,83633,922

3.99%

4.34

4.36

4.43

131,307

122,950

128,151

130,591

2,960

3,156

3,198

4,340

France48,23845,931

48,23149,143Germany

44,89842,97245,56845,638Spain

12,89911,881

11,828

12,637

UK

9,858

9,368

9,846

11,109

US

3,751

3,150

2,980

3,151

Canada

4,287

3,788

3,634

3,668

China

762

698

613

653

9,574

8,707

8,649

8,932

88.6%

89.1

12,135

13,862% 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 in %French

35.0%

35.4

German

30.7%

31.5

Spanish

10.7%

10.3

British7.4%

7.7

From other countries

16.2%

15.1

Total number of nationalities

147

138

< 30 years old

13,171

11,12030-50 years old

83,964

79,98581,70982,552> 50 years old

37,13235,39037,50538,517

13,946

5,655

5,463

11,270Core Divisions

8,231

2,817

2,413

6,643

Subsidiaries

5,715

2,838

3,050

4,627

6,428

9,394

7,796

5,842

Core Divisions

3,365

5,632

4,675

2,902

Subsidiaries

3,063

3,762

3,121

2,940

By ageNewcomers

Leavers (incl. partial retirement)

Attrition Rate
Core Divisions

3.8%

5.9%

4.6%

2.9%

Subsidiaries

7.8%

12.2%

9.4%

8.4%

5.0%

7.4%

5.8%

4.3%

Total
: 2022 data verified by EY®, based on limited assurance.

132

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

01
01

GENDER DIVERSITY
2022

2021

2020

20%

19%

18%

Board of Directors

33%

25%

25%

Executive Committee

25%

25%

16%

Senior mgmt – Executives

16%

14%

13%

% Women in total active workforce
Per category“Level IV” managers

17%

16%

14%

Newcomers

27%

22%

26%

21.2%

20.5%

By geographic area
France21.4%

Germany

16.2%

16.4%

15.3%

Spain

24.0%

22.7%

22.3%

UK

14.0%

12.9%

13.5%

US

22.5%

22.4%

22.4%

Other countries

22.4%

21.0%

20.9%

: 2022 data verified by EY®, based on limited assurance.

PEOPLE DEVELOPMENT
2022

2021

2020

Number of classroom training

116,363

78,98478,443

Number of digital training

1645816

967,495

752,702

1.7mn

1.2mn

1million

15

11

11

for women

14

9

8

for men

16

11

10

for production employees

19

15

14

Total training hours
Average training hours per employee

for non-production employees
Internal mobilities

14

10

8

11,460>10,400>7,000

2022

2021

2020

7

12

8

: 2022 data verified by EY®, based on limited assurance.

LABOUR RELATIONS

Number of meetings with SE-WC
Workforce covered by collective
bargaining agreements

~80%

~ 80%

Note: figures are based on the active workforce, i.e. the number of permanent and short-term employees, irrespective of their individual working times, and having worked in the last
30 days. The headcount is calculated according to the consolidation quota of the respective companies. The scope for HR structure reporting covers 100% of the Company’s
total active workforce from consolidated companies. Workforce and breakdowns metrics are figures at year-end. Other metrics cover civil year periods, except for training
related metrics with reporting periods going from 1 October to 30 September.
: 2022 data verified by EY®, based on limited assurance.

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

PRODUCT SAFETY
2022

2021

2020

2019

Fatal accident rate industry-wide Gen4

0.05

0.03

0.04

0.05

% SMS officers nominated

100%

100%

100%

-

% SMS officers trained

100%

100%

92%

-

2022

2021

: 2022 data verified by EY®, based on limited assurance.

CYBER SECURITY

Number of data breaches reported to data authorities
Percentage involving confidential information
Cyber security awareness training e-learning participation
Corporate & IM Cyber Security headcount

0

2020
1

2019
1

-

-

100%

100%

-

107,808

67,475

10,328

-

437

290

216.5

-

HEALTH & SAFETY
2022

2021

2020

2019

Lost Time Injury Frequency Rate – excl. Airbus Atlantic and Airbus
Aerostructures entities

1.60

3.21

3.81

5.58

Lost Time Injury Frequency Rate – incl. Airbus Atlantic and Airbus
Aerostructures entities

2.23

Lost Time Injury Frequency Rate – commercial aircraft business

2.25

4.31

5.12

-

Near-miss – commercial aircraft business

28,925

19,305--

Severity rate (FISH scope)

0.046

-

-

-

Health & Safety training hours delivered

286,815

128,795

103,070

148,000

Number of employees who received Health & Safety training

90,49028,14437,59920,900

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

3.29

2,214

1,309

418

-

~one third~one third

-

-

25%

25%

-

-

2022

2021

2020

2019

100%

100%

100%

-

10

6

-

100%

100%

-

5,789

4,943

-

4

5

-

For definitions, see “– 1.2.9 Health and safety”.
: 2022 data verified by EY®, based on limited assurance.

HUMAN RIGHTS% of investigations completed or in progress – following reports of concerns
linked to human rights, including forced and child labour and other labour rights.
% of sites having undertaken a social assessment – % of the Company’swith over 100 employees, cumulative since 2020, undergoing a social
assessment including human and labour rights.
% of findings closed within 18-months (following social assessments including
human and labour rights, carried out on the Company’s sites)

100%

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

6,955

Number of alerts of human rights concerns (including forced labour and labour
rights (received via OpenLine and other means) from internal sourcesor through the Company’s supply chain): 2022 data verified by EY , based on limited assurance.
®

134

29

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28

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

01
01

BUSINESS INTEGRITY

Number of employees per appointed Ethics & Compliance Representatives

2022

2021

2020

2019

360

372

390

-

Number of employees per appointed Export Control Point of Contact

236

-

-

-

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

96%

90%

80%

-

Number of E&C e-learning sessions delivered to employees

290,178

284,774

309,682-

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

3,181

9,327

35,073-

Investigative requests received during the year

847

-

-

-

of which Compliance-related investigative requests

323

-

-

-

of which HR-related investigative requests

524

-

-

-

2020

2019

: 2022 data verified by EY®, based on limited assurance.

SUPPLY CHAIN
2022

2021

Sourcing volume (in € million)~44,000

37,906

40,71253,400

Number of suppliers

18,00018,00021,00023,000Commercial aircraft activities

77%

77%

76%

84%

Airbus Helicopters

9%

8%

8%

6%

Airbus Defence and Space

14%

15%

15%

10%

Split by Division (in %)Split by region
European Union

69%

74%

74%

59%

North America

24%

19%

19%

27%

Asia pacific

6%

6%

6%

8%

Other regions

<1%

<1%

<1%

6%

Number of countries

90

90

88

>100

79%

NA

-

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

86%

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

78%

68%

56%

-

Percentage of responding suppliers to the CDP scoring A or B

66%

53%

56%

-

95%

63%

-

13%

12%

-

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

99.5%

Percentage of assessed suppliers not meeting Company’s sustainability
expectations

16%

Percentage of action plans defined for suppliers not meeting Company’ssustainability expectations

31%

15%

NA

-

Number of sustainability alerts

44

12

5

-

Number of suppliers registered into Digitalisation of Supplier Substance datacollection tool

298

-

-

-

Note: Metrics cover civil year periods, except for training related metrics with reporting periods going from 1 October to 30 September.
: 2022 data verified by EY®, based on limited assurance.

COMMUNITY IMPACT
2022

2021

2020

Number of Sustainability Ambassadors

448

207

-

% of employees onboarded to the +impact platform

4%

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

Governance
BOARD OF DIRECTORS
2022

2021

2020

2019

Number of independent directors

11

11

11

11

Number of Executive Directors

1

1

1

1

Number of women

4

3

3

3

Number of men

8

9

9

9

Average age

60

60

59

59

Number of nationalities

7

7

7

7

Average tenure

4.9

4.5

3.5

4

Number of Board meetings

13

7

13

11

96%

98%

97%

91%

Number of Audit Committee

5

5

5

7

Number of RNGC

5

5

4

7

Number of ECC/ECSC

4

6

4

6

% average attendance

EXECUTIVE COMMITTEE
2022

2021

2020

2019

Number of women

3

3

2

2

Number of men

9

-

-

-

Executive Committee meetings

4

4

4

4

SHAREHOLDING
2022

2021

2020

2019

Free Float

74.06%

74.01%

73.97%

73.94%GZBV (German State)

10.87%

10.90%

10.93%

10.94%SEPI (Spanish State)

4.10%

4.11%

4.12%

4.13%

10.89%

10.92%

10.95%

10.96%

2022

2021

2020

SOGEPA (French State)

SUSTAINABILITY-LINKED REMUNERATION

CEO and Executives variable remuneration – common collective component, paid following the end of financial year
R&S KPI 1

136

LTIFR1

LTIFR1

LTIFR1

Weight

10%

10%

20%

R&S KPI 2

CO2

CO2

-

Weight

10%

10%

-

Airbus / Universal Registration Document 2022

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

01
01

1.2.18 TCFD Correspondence Table
See Company’s
report sections

See CDP Climate Change
Questionnaire(1) items– 1.2.1 the Company’s
approach to sustainability– 1.2.2 Climate change

C1.1a, C1.1b

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

C1.2, C1.2a

Strategy
Describe the climate-related risks and opportunities
the organisation has identified over the short, medium,and long term
Describe the impact of climate-related risks and opportunities
on the organisation’s businesses, strategy, and financial
planning.
Describe the resilience of the organisation’s strategy,
takinginto 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 7: Climate
impacts)

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

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

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

Metrics & targets
Disclosure of the metrics used by the organisation to assessclimate-related risks and opportunities in line with its strategy
and risk management process.

Disclose Scope 1, Scope 2, and if appropriate, Scope 3 GHG
emissions, and the related risks.

Describe the targets used by the organisation to manage
climate-related risks and opportunities and performanceagainst targets.
(1) CDP Climate Change Questionnaire is available on Airbus website

C1.3, C1.3a, C4.2, C9.1
– 1.2.2 Climate change– 1.2.17 ESG data board,
section Environmental
performance / Emissions

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, C6.10, C7.1, C7.1a,
C7.2, C7.3, C7.3a, C7.5,
C7.6, C7.6a

C4.1, C4.1a, C4.1b, C4.2aand CDP website .

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

1.2.19 EU Taxonomy
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 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 for 2030 and reachthe objectives of the European Green Deal.
As the Company is obligated to report on non-financial information
pursuant to the Non-Financial Reporting Directive, the EU
Taxonomy Regulation is also applicable to the Company, andtherefore we must disclose information on the extent to which
our activities can be considered environmentally sustainableeconomic activities within the meaning of the EU Taxonomy.
Technical screening criteria for two of the six environmental
objectives have been laid down in the Climate DelegatedAct (2) which entered into force on 1 January 2022 and theComplementary Climate Delegated Act (3) which enteredinto force on 1 January 2023. Recommended criteria for thefour remaining environmental objectives were published in
March 2022 (Annex to the Platform on Sustainable Finance’s
report with recommendations on technical screening criteria for
the four remaining environmental objectives of the EU Taxonomy)
and complemented with additional criteria in November 2022
(Platform on Sustainable Finance’s report with supplementary
advice on methodology and technical screening criteria forthe climate and environmental objectives of the EU Taxonomy)(“Draft Recommendations”). Aviation related activities havenot been included in the Climate Delegated Act and theComplementary Climate Delegated Act, but, based on the Draft
Recommendations, aviation is proposed to be included as atransition activity in the EU Taxonomy, which acknowledges
its potential transition to a climate-neutral economy consistent
with a pathway to limit the temperature increase to 1.5°C above
pre-industrial level.
For the reporting period FY 2021, only qualitative informationand information on the proportion of Taxonomy-eligible activities
in relation to total activities set out in the Delegated Act had tobe disclosed. For the reporting over FY 2022, the Delegated
Act applies fully, meaning that the Company has to disclose itsalignment to the EU Taxonomy as well. In order to be alignedwith the EU Taxonomy, an eligible activity has to i) comply with
the Technical Screening criteria (TSC); ii) the Do No Significant
Harm (DNSH) criteria; and the company has to fulfil Minimum
Safeguards.

EU Taxonomy Assessment Over FY 2022
The Company performed an analysis of its exposure totaxonomy-eligible activities referenced in the Climate Delegated
Act and the Complementary Climate Delegated Act and has
conducted an assessment of compliance with the relevant TSC,
the DNSH-criteria and the Minimum Safeguards. The results ofthis assessment have been included in the following sections(EU Taxonomy KPIs and EU Taxonomy KPIs accompanying
information). The Company has performed these calculations
based on consolidated information while it is still working on
further improving financial data tagging to enable improved
reporting in upcoming disclosures. The Company’s assessment
will be refined as additional official guidance on EU taxonomy
implementation and interpretation becomes available. The main
activities carried out by the Company are not yet covered by the
EU Taxonomy delegated acts.

(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) 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.
(3) 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.

138

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

01
01

EU TAXONOMY KPIs PROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNEDECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2022

Substantial contribution
criteria(1)

Economic
activities

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

DNSH criteria(“Does Not Significantly
Harm”)
(11)

(12)

(13)

(14)

(15)

(16)

(17)

(18)

Code(s) In m€%

A. TAXONOMY-ELIGIBLE ACTIVITIES

(20)

(21)

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Percent

Percent

E

T

%

A.1.
Environmentally
sustainable
activities(Taxonomyaligned)
Turnover ofenvironmentally
sustainable
activities(Taxonomyaligned) (A.1)(19)%Aligned
Absolute Proportion SC5 SC6 SC7 SC8 SC9 SC10 DN11 DN12 DN13 DN14 DN15 DN16 MS17 %Aligned prev. year Cat20 Cat21
turnover of turnover
18
19

N/A

0

0%

0%

A.2 TaxonomyEligible but notenvironmentally
sustainable
activities (notTaxonomy-aligned
activities)

N/A

N/A

Turnover of
Taxonomyeligible but notenvironmentally
sustainable
activities (notTaxonomy-aligned
activities) (A.2)

00%Total (A.1 + A.2)

00%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of
Taxonomy-noneligible
activities (B)58,763

Total (A + B)

58,763

100%
100%

N/A

0%

N/A

MS17 – Minimum safeguards

SC5 – C limate change
mitigation

DN11 – Climate change
mitigation

SC6 – C limate change
adaptation

DN12 – C limate change
adaptation

SC7 – W ater and marine
resources

DN13 – W ater and marine
resources%Aligned prev. year 19 – Taxonomyaligned proportion of turnover,previous year

SC8 – Circular economy

DN14 – Circular economy

Cat20 – Category (enabling activity or)

SC9 – Pollution

DN15 – Pollution

SC10 – Biodiversity
and ecosystems

DN16 – B iodiversity andecosystems

Cat21 – Category“(transitional activity)”%Aligned18 – Taxonomy-aligned
proportion of turnover

Column 21 should be filled in for transitional activities contributing to the climate change mitigation.
For activities listed under A2, columns 5 to 17 May be filled in on a voluntary basis by non-financial
undertakings

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

EU TAXONOMY KPIs PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNEDECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2022

(1)

Economic
activities

(2)

(3)

(4)

Substantial contribution
criteria

DNSH criteria(“Does Not Significantly
Harm”)

(5)

(11)

(6)

(7)

(8)

(9)

(10)

(12)

(13)

(14)

(15) (16)

(17)

(18)

(19)

(20)

(21)

%Aligned
Absolute Proportion SC5 SC6 SC7 SC8 SC9 SC10 DN11 DN12 DN13 DN14 DN15 DN16 MS17 %Aligned prev. year Cat20 Cat21
CapEx of CapEx
18
19
Code(s)

In m€

%

%

%

%

%

%

%

Y/N Y/N Y/N Y/N Y/N Y/N Y/NPercent

Percent

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally
sustainable activities(Taxonomy-aligned)

N/A

CapEx ofenvironmentally
sustainable activities(Taxonomy-aligned)
(A.1)

0

0%

0%

A.2 TaxonomyEligible but notenvironmentally
sustainable activities(not Taxonomyaligned activities)
4.24 Productionof heat/cool frombioenergy

N/A

D35.30

14

0.6%

F42,
F43,
M71,
C16,
C17,
C22,
C23,
C25,
C27,
C28,
S95.21,
S95.22,
C33.1217

0.7%

J63.1121

0.8%

CapEx of Taxonomyeligible but notenvironmentally
sustainable activities(not Taxonomy-aligned
activities) (A.2)

52

2.1%

Total (A.1 + A.2)

52

2.1%

7.3 Installation,
maintenance and repairof energy efficiency
equipment

8.1 Data processing,hosting and related
activities

N/A

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

N/A0%
SC5 – C limate change
mitigation

DN11 – Climate change
mitigation

N/A

MS17 – Minimum safeguards%Aligned18 – Taxonomy-aligned
proportion of Capex

CapEx of Taxonomynon-eligible activities
(B)

2412

97.9%

SC6 – C limate change
adaptation

DN12 – C limate change
adaptation

Total (A + B)

2464

100%

SC7 – W ater and marine
resources

DN13 – W ater and marine
resources%Aligned prev. year 19 – Taxonomyaligned proportion of CapEx, previousyear

SC8 – Circular economy

DN14 – Circular economy

Cat20 – Category (enabling activity or)

SC9 – Pollution

DN15 – Pollution

SC10 – B iodiversity andecosystems

DN16 – B iodiversity andecosystems

Cat21 – Category“(transitional activity)”

For activities listed under A2, columns 5 to 17 May be filled in on a voluntary basis by non-financial
undertakings.

140

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

01
01

EU TAXONOMY KPIs PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNEDECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2022
Substantial contribution
criteria(1)

Economic
activities

(2)

Code
(s)

(3)

(4)

(5)

(6)

(7)

(8)

DNSH criteria (“Does Not
Significantly Harm”)(9) (10) (11)

(12)

(13)

(14)

(15)

(16)

(17)

(18)

(19)

(20)

(21)

%Aligned
Absolute Proportion SC5 SC6 SC7 SC8 SC9 SC10 DN11 DN12 DN13 DN14 DN15 DN16 MS17 %Aligned prev. year Cat20 Cat21
OpEx
of OpEx
18
19
In m€

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Percent

Percent

E

T

A. TAXONOMYELIGIBLE
ACTIVITIES
A.1.
Environmentally
sustainable
activities(Taxonomyaligned)
OpEx ofenvironmentally
sustainable
activities(Taxonomyaligned) (A.1)

N/A

0

0%

0%

A.2 TaxonomyEligible but notenvironmentally
sustainable
activities (notTaxonomy-aligned
activities)

N/A

N/A

OpEx of
Taxonomyeligible but notenvironmentally
sustainable
activities (notTaxonomy-aligned
activities) (A.2)

00%Total (A.1 + A.2)

00%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESOpEx of
Taxonomy-noneligible
activities (B)3,079

Total (A + B)

3,079

100%
100%

N/A

0%

N/A

MS17 – Minimum safeguards

SC5 – C limate change
mitigation

DN11 – Climate change
mitigation

SC6 – C limate change
adaptation

DN12 – C limate change
adaptation

SC7 – W ater and marine
resources

DN13 – W ater and marine
resources%Aligned prev. year 19 – Taxonomyaligned proportion of OpEx,
previous year

SC8 – Circular economy

DN14 – Circular economy

Cat20 – Category (enabling activity or)

SC9 – Pollution

DN15 – Pollution

SC10 – B iodiversity andecosystems

DN16 – B iodiversity andecosystems

Cat21 – Category“(transitional activity)”%Aligned18 – Taxonomy-aligned
proportion of Opex

(1) Activity 1 is Taxonomy-eligible in its entirety. However, only a proportion of it is Taxonomy-aligned. Therefore, Activity 1 May be reported under both A1 and A2. However, only
the proportion reported under A1 May be counted as Taxonomy-aligned in the OpEx KPI of the non-financial undertaking. For activities listed under A2, columns 5 to 17 May
be filled in on a voluntary basis by non-financial undertakings.

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

EU Taxonomy KPIs Accompanying
Information

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.

1. Accounting Policy

In 2022, Taxonomy eligible activities related to “4.24 Production ofheat/cool from bioenergy” and “7.3 Installation, maintenance andrepair of energy efficiency equipment”, were related to projects
aiming to improve energy efficiency and reduce CO2 emissions
that could make a substantial contribution to the climate change
mitigation objective while eligible activities related to “8.1 Data
processing, hosting and related activities” also met activity
description. They have been allocated to one taxonomy activity
and one environmental objective, avoiding the risk of double
counting.

The Company’s EU Taxonomy disclosure covers the following
scope: EU Taxonomy-compliant share of turnover, capital
expenditure (“CapEx”) aligned with the EU Taxonomy andoperational expenditure (“OpEx”) aligned with the EU Taxonomyof the Company consolidated that, for the purpose of EU
Taxonomy disclosure, are split per economic activity according
to the Climate Delegated Act and the Complementary Climate
Delegated Act of the EU Taxonomy. Please refer to the “Notes tothe IFRS Consolidated Financial Statements – Note 4: Significant
Accounting Policies”.
In the context of EU Taxonomy disclosure, the Company
assessed any economic activity that in aggregate exceeds 1%of the total turnover, CapEx or OpEx. The materiality thresholdhas been set at 1%, as the Company expects economic activities
that in aggregate do not exceed 1% of the total turnover, CapEx
or OpEx to have no material influence on the reporting. However,should there be availability of data, the Company may choose
to disclose such activities.
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.
As the EU Taxonomy KPIs are published for the first time in thereporting over FY 2022, prior-year figures are not provided. Nomaterial changes to the CapEx plan have occurred in FY 2022.
The capital expenditures disclosed under the CapEx KPI are notpart of a CapEx Plan meeting the conditions specified under the
EU taxonomy regulation.

2. Assessment of Compliance with EU
Taxonomy Regulation
Information on Assessment of Compliance with
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 adopted Climate Delegated Act
and Complementary Climate Delegated Act and allocationon the basis of the activity description, resulting in a list ofeligible activities.
–– Determination of EU Taxonomy alignment with technicalscreening criteria: for the eligible activities which exceed themateriality threshold of 1%, applicable substantial contribution
and do no significant harm criteria have been identified andanalysed, gathering the available and relevant informationand evidence.
–– Determination of EU Taxonomy alignment with the minimum
safeguards: following the guidance provided by the Platformon Sustainable Finance in its “Final Report on Minimum
Safeguards” published in October 2022 (1), and more specificallyby analysing the non-compliance criteria proposed in the
aforementioned report concerning human rights, taxation, faircompetition and corruption & bribery areas at Company level.

In 2022, 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.

Contribution to Multiple Objectives
Due to the nature of the projects linked to Taxonomy eligible
activities in 2022, substantial contribution has been assessedagainst the climate change mitigation objective only and its
relevant criteria.

Disaggregation of KPIs
In 2022, the preparation and disclosure of figures as per
Taxonomy requirements did not require any disaggregation.

3. Contextual Information
Contextual Information About Turnover KPI
Turnover KPI has been assessed as not material and therefore
reported as 0%.

Contextual Information About CapEx KPIAll CapEx identified as eligible were added to property, plantand equipment during the year 2022. In 2022, Taxonomy
eligible activities were related to projects aiming to improveenergy efficiency and reduce CO2 emissions that could makea substantial contribution to the climate change mitigation
objective, while data processing related CapEx (e.g. data centres)
met activity description.
In light of the complexity and granularity of the applicable
criteria, the investments could not be assessed as aligned by
the Company in 2022. The Company took a cautious approachto assessing Appendix C criteria and compliance could not be
confirmed in 2022.
In addition, some of the CapEx contributing to the Company’s
decarbonisation plan as presented in section “– 1.2.2 Climate
Change” could not be assessed as eligible.
The capital expenditures disclosed under the CapEx KPI are notpart of a CapEx Plan meeting the conditions specified under the
EU taxonomy Regulation.

(1) Platform on Sustainable Finance – Final report on Minimum Safeguards, October 2022.

142

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Contextual Information About the OpEx KPIThe Company’s OpEx definition differs from the EU Taxonomy
OpEx definition. For the purpose of the EU Taxonomy disclosure,
only research and development costs are considered.

Future Developments
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 our 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. If thedelegated act related to the manufacturing of aircraft is adopted
under the EU Taxonomy Regulation, the turnover generated bysales of commercial aircraft may then become eligible.
Estimated eligibility and alignment if aviation-related
technical screening criteria were to be adopted as per draft
recommendation: Pursuant to the Draft Recommendations,aviation-related activities are included in the EU Taxonomy by01
01

means of delegated act(s) to be adopted in 2023. The Company’scommercial aircraft activity corresponding to NACE code 30.3 isdescribed under section 7.2 Manufacturing of aircraft of the Draft
Recommendations (1). According to the Draft Recommendations,a majority of the Company’s 2022 turnover would be eligible,
mainly including the turnover generated by sales of commercial
aircraft. Based on the same information, the Company estimatesthat a significant portion of this eligible turnover could be
Taxonomy-aligned, subject to Do-No-Significant-Harm criteria
and minimum safeguards criteria assessment. As per the technicalscreening criteria of section 7.2 of the Draft Recommendations,the alignment would correspond to the proportion of new aircraft
sold that will replace less efficient older generation aircraft, andtherefore contributing to reducing the overall carbon footprint ofaviation – as described in section “– 1.2.2 Climate change” / IV.
Transition plan / 2. Product stewardship. Activities from theCompany’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 the Company to provide anestimate. Accordingly, “best-in-class” aircraft programme related
CapEx, and R&D (Operating Expenses) should be respectively
eligible and aligned at least in proportions similar to turnoverones.

(1) Platform on Sustainable Finance: Technical Working Group / Part B – Annex: Full list of Technical Screening Criteria March 2022.

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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

Orgaisational 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 2022

2-3

Reporting period, frequency and contact point

2-4

Reporting period

From 1st of January to 31 of December

Reporting cycle

AnnualContact point for questions regarding the report

See sustainability on airbus.com

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 24, 37.7

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

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)

Scale of the organisation– 2.1 Operating and Financial Review
Commercial orders & deliveries , Helicopters orders &deliveries

144

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 “Premium AEROTEC”, – 1.2.12 Social dialogue,– 1.2.15 Responsible supply chain, – 2.1.5 Changes in Total
Equity2-7

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

01
01

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 2022

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

See – 1.2.1 The Company’s approach to sustainability

See Enterprise Risk Management on airbus.com
Precautionary principle or approach

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 generation

306-2

Management of signification 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

Management of material topics

See – 1.2.1 The Company’s Approach to Sustainability,– 1.2.5 Water

Water
3-3
303-3

Water withdrawal

303-4

Water discharge

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

Management 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

Health & Safety
3-3
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

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

146

3-3

Management 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 turnover

See – 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

01
01

Related content

404-1

Average hours of training per year per employee

404-2

Programmes for upgrading employee skills andtransition 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 1. Financial Market Risks (Pension
Commitments), – 2.1.6.1 Cash Flows (Contribution to Plan
Assets of Pension Schemes) – 4.2.1.3 Implementation of theRemuneration Policy in 2021: 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

203-1
203-2

Infrastructure investments and services supported

201-1

Direct economic value generated and distributed

Significant indirect economic impacts

See – 1.2.1 The Company’s approach to sustainability,– 1.2.16 Community impact
See – 1.2.1 The Company’s approach to sustainability,– 1.2.16 Community impact
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
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-- Amount of hazardous waste generated, percentage of hazardous waste
recycled-- Number and aggregate quantity of reportable spills, quantity recovered

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

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”

RT-AE-250a.1-- Number of recalls issued, total units recalled
RT-AE-250a.2-- Number of counterfeit parts detected, percentage avoided
RT-AE-250a.3-- Number of Airworthiness Directives received, total units affected-- Total amount of monetary losses as a result of legal proceedings associated RT-AE-250a.4

See 1.2.7 “Aviation and productsafety”

Energy Management
Total energy consumed, percentage grid electricity, percentage renewable--

Hazardous Waste Mgmt

from reportable spills---

Product Safetywith product safety

Fuel Economy & Emissions in Use-Phase

RT-AE-410a.1
RT-AE-410a.2

See EU Taxonomy estimatesdisclosure in 1.2.19 EU Taxonomy
See 1.2.2 “Lead the journey towards
clean aerospace”-- Description of the management of risks associated with the use of critical

RT-AE-440a.1

See 1.2.15 “Responsible supply
chain”

Business Ethics
Total amount of monetary losses as a result of legal proceedings associatedwith incidents of corruption, bribery, and/or illicit international trade
Revenue from countries ranked in the “E” or “F” Band of Transparency
International’s Government Defence Anti-Corruption Index
Discussion of processes to manage business ethics risks throughout thevalue chain

RT-AE-510a.1
RT-AE-510a.2
RT-AE-510a.3

See 1.2.14 “Business integrity”

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-- 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

Materials Sourcing
materials----

Activity metrics-- Production by reportable segment: Production should be disclosed as the--148number of units produced by product category, where relevant productcategories include ground vehicles, aircraft, marine vehicles, vehicle andaircraft components, and space and weapons systems.
Number of employees

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1. Information on the Company’s Activities /1.3 Other Corporate Activities

0101

1.3 Other Corporate Activities
Digital and Information Management at Airbus: Overview
Digital and Information Management has been a core disciplinefor Airbus over a number of years. 2022 saw the continuation of
the previously initiated digital transformation, together with newdevelopments and further rationalisations.
Digital continued to answer company challenges and to enableAirbus to be a sustainable aerospace and defence leader. This
included:–– A more efficient and simplified digital ecosystem to increase
capacity to invest for the future. This was possible with thesingle aisle family production ramp up assistance via the
PLM upgrades, data quality improvements, reworking of
the resources planning for Operations and technical debt
eradication.
–– New digital design, manufacturing and services deployments.
These are now running for Eurodrone and the A350 Freighter,establishing a solid groundwork for future programmes toenable the kick start of aerospace industry decarbonationtransformation.
–– An initiation of seamless digital user experience to better
engage with our employees and customers with innovation
and acceleration over the digital journey.
–– People career development paths creation, including the
opening of the Airbus Digital School and its first cybersecurity
diploma class to make our Company attractive worldwide for
digital talents acquisition.
2022 showed once again the uncertainty and complexity of theworld we operate in. In response to this, Digital aims to makeAirbus both robust and flexible. This was implemented with highindustrial grade cybersecurity capabilities and technology shifts
like modern devices management. This resilience also went
beyond compliance 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, digital continuity and digital twins across the entire
programme lifecycle. It also relies on the use of model-based
system engineering and the application of a flexible and modular
architecture approach to the co-development of our products,
industrial and support / services systems.
The mandate is to be launch-ready for the next aircraft
programme, while securing early benefits by progressively
deploying the developed processes and capabilities on early
adopter programmes in all the Divisions.
The major achievements in 2022 were:–– People: transformation & competences
One more step was taken into the overall DDMS transformation
with a steep ramp-up of change management and upskilling
plans implementation. A special focus was put on Single Aisle
and Eurodrone with the deployment of the Lean product life
cycle management capabilities, Systems Engineering / Model
Based Systems Engineering (MBSE). More than 20,000 people
have started their upskilling journey either through digital orclassroom training sessions.

–– New co-development processes, digital continuity anddigital twin technologies progressive deployment on key
programmes across the Divisions and the aerostructureassembly companies:
Single Aisle: Major achievements include increased availabilityof 3D-configured Digital Mock Up (DMU), a sharp reductionin the lead-time of the heads of version design and improved
quality thanks to the implementation of a digital continuity on theassociated processes from offer to services. The new information
system upgrade for the single aisle programme (so called Lean
PLM) has been deployed as planned. The savings provided by
the DDMS capabilities materialised. Lastly, key contributions
have been made to secure the solution development of the A321
XLR programme.
A350 Freighter: Key contributions have been made with the
deployment of new ways of working and digital solutions forairframe sizing, system design, virtual testing, and industrial
assembly design and simulation. Further digital solutions
ensuring full digital continuity between design and shop floor
execution are being deployed for the new main deck cargo door
and the fuselage assembly at the major component and final
assembly line level.
Eurodrone and FCAS: The common working environment withintegrated digital solutions was deployed from the beginning for
the Eurodrone development. More than 2,000 users have been
upskilled and onboarded in this digital way of working.
The FCAS Phase 1B development will rely on the same platform
enhanced with additional capabilities under development.

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H175, H225 and LH (Light Helicopter) programmes: The
deployment of new digital continuity solutions between thedesign and the shop floor execution for the new gear box
assembly facility have resulted in higher quality and speed of
execution.
The developed and validated model based system engineering
capabilities have been deployed on Tiger Mk3, H160 & NH90
(50 system engineers trained).
In addition, the development of capabilities for end-to-end
maintenance engineering has been initiated.
–– New Digital Development Tools:
We improved and continued the implementation of system ofsystems (SOS) trade capabilities to support business model
convergence and multi scenarios for business context. The MBSE
based on mission operation function logical (MOFL) modelling
methodology was implemented, enabling for example a clearer
definition of dihydrogen (H2) storage system development.
Ecodesign capabilities enabled by digital have been developed
and LCA models have been created to support assessment of
our future products.
We also made good progress on the validation andimplementation of processes, methods and tools supporting the
new co-development logic for the early programme development
phase, reducing risks for late changes and development costs.
Our existing disconnected product functional and physicalarchitecture design tools started being connected through ourdeveloped model based system engineering framework. New
industrial system static and dynamic modelling capabilities weredeveloped and started showing improvements in our ability to
predict our future industrial system and supply chain ramp up
readiness.
–– Digital continuity with a network of platforms:
In 2022, we have started to define and experiment the newconcepts of “network of platforms”. The network of platforms is
set to enable our end-to-end value chain digital continuity andperformance, e.g. ensuring data flows across our processes andplatforms internally and with our partners in the supply chain
whilst ensuring better data quality, consistency and ease ofaccess. The concepts of data products and data service layer
have been successfully piloted on different end-to-end businessprocess flows with a deployment at scale starting in 2023.

Airline Sciences
The aim of the Airline Sciences team is to provide an operational
digital representation of an airline in all its complexities andbusiness models. Having a bottom-up approach enables theCompany to test out different aircraft technologies and concepts,
validate product strategy, assist in sales campaigns, develop
new services and, more importantly, understand the customers’
perspective across all layers of the Company.
Airbus has set sustainability at the heart of the Company’s
purpose and is willing to lead the decarbonisation of the aviationindustry. Accurate monitoring of aircraft operational data is acore element of its decarbonisation strategy. As such, the Airline
Digital Twin capability is being used heavily in order to assess
CO2 effects, including comprehensive emissions calculations
as well as operational sensitivities. We have delivered the first
CO 2 airline monitoring tool, AirScout, based on the Skywise
platform. Using actual flight trajectories of the entire Airbus

150

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fleet, and assessing extremely granular effects, we are able tohave accurate aggregate numbers on aircraft trajectory, city
pairs, Airline network, aircraft to aircraft, and airline to airline
views. Our intent is to include other effects in the near future,such as non-CO2 and climate impact effects, and beyond thisto develop a scenario of “what-if” capability to support Airbus’s
achievement of its science-based climate targets. Airscout has
been recognised in 2022 by a Digital Engineering award for “TopSustainability Initiative” in a cross-industry jury panel.
Finally, in the context of aircraft sales campaigns, the Airline
Digital Twin was used in supporting ultra-long-haul A350 studies
for various potential customers. A comprehensive market
assessment was carried out, including building an optimal airline
fleet and product strategy to maximise airline profitability.

Artificial Intelligence (“AI”)
After successfully applying specific AI solutions across thebusiness domains, the Company is now accelerating andmaturing its industrial setup to deliver AI at scale. This includes
a focus on delivering an AI services catalogue making available
reusable and accessible core AI technology capabilities andpatterns. These capabilities include:–– computer vision to enable visual quality inspection and improve
the safety and quality of our manufacturing environment;–– pattern recognition and time series analysis to detect anomalies
and avoid failure in our industrial machines and aircraft;–– natural language understanding and processing to classify
data (e.g. export control) and secure our compliance;–– 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.
One of the AI projects called “Prometheus A380”, aiming
at optimising spare parts management for the A380, wasrecognised in 2022 by a Digital Engineering award for “Value
Realisation” in a cross-Industry jury panel.
These are being complemented with a central governance andlife cycle management of a wide range of operationalised AI anddecision models (ModelOps) framework. First versions werereleased in 2022, demonstrating the great value of AI models
for key projects. These are paving the way to ensure compliancefor using AI in safety relevant systems in line with upcoming
regulations.

Internet of Things
A standard IoT platform is now fully operational, which will
support sustainability use cases. The objective is to have dataof different consumptions (water, electricity, raw materials, etc.)
to better optimise it in the future.

Robotics and Automation Transformation
In 2022, we have kickstarted our integrated robotics andautomation transformation programme to secure the deploymentof our ambitious robotics and automation roadmap. The Airbus
roadmap is organised around five major streams covering key
areas of our industrial system: Assembly, Paint, Composite,
Logistics and Inspection.

1. Information on the Company’s Activities /1.3 Other Corporate Activities

For these five streams we are running ambitious flagship projects
to develop and adapt complex robotics technologies to the very
specific requirements of the aerospace industry. We are doing
this by a mix of internal developments and strategic industrial
partnerships. In 2022 we have successfully established several
test benches and passed major milestones on the various coretechnologies.
We have decided to internalise the industrial integration
knowledge to secure our ability to turn complex aerospacefunctional requirements into industry generic understandable bya large community of integrators working for multiple industries.
Our goal is to reduce our dependence and extend our networkof partners.

Cyber Security
Our transformation journey continued with the extension of ourcore services across regions and affiliates, the reinforcing of ourconnectivity model with our extended enterprise and further
strengthening of core controls for the Airbus commercial aircraft
environment. In line with our ambition, we saw a further stepchange in the volume of active running services now in place
to protect our business.
As we continue to develop and reinforce our re-insourcing
strategy, we were pleased to welcome the advent of Airbus
Protect. The experience brought by the creation of this strategic
partner will be key to deliver on our commitments for the years
to come.
In 2023 we need to continue to develop and reinforce ourfederated cyber security model; strengthening security bydesign, collectively we will adopt a stronger and more resilient
approach to enable and protect our business. As we continue
to reinforce our teams in Europe, India and within the regions,
we must continue to ensure the development and maintenanceof our key skills through a robust competence strategy.
The recruitment and the development of key skills andcompetences remains a top challenge. With this regard, thecreation and implementation of the Airbus Cyber Security
Diploma is a great achievement for all those involved. We now
have a solid platform to develop “home-grown” Cyber Security
expertise to support our talent pipeline for the years to come. As
an Airbus-designed programme, we have been able to tailor thecontent and delivery to match the exact needs of the business.
This programme is a key addition to our existing portfolio of
early career programmes which over many years have beensuccessful in providing high potential individuals embedded in
our teams across Europe.

Digital Transformation at Defence
and Space2022 has been a year of consolidation and optimisation for Airbus
Defence and Space. In addition to enabling key programmes like
Eurodrone and FCAS with their common working environments
for development between all involved partners as alreadymentioned above, the ERP consolidation that is closely linked
to it has been progressing in the background. This goes handin hand with the newly launched initiative “Fixing the digitalfoundation” which has been kicked off in 2022 with the goal tostreamline and optimise the complex IT architecture. All this is toreinforce the Division’s digital security, improve user experienceand be able to adapt to technological changes quicker.

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Digitally Enabled Products and Services
SkywiseAt its origin in 2015, Skywise was launched to unlock the datafrom our discrete legacy systems to make it accessible andactionable by those needing it for their day-to-day operations.
Now fully industrialised, Skywise is in 2022 adopted by morethan 29,000 Airbus employees across all functions and divisions.
With data unlocked from previous silos, a virtuous circle has
been created: with in-service data flowing back into operations
and aircraft design, delivering incremental product, support andservices improvements and transforming the Company into a
more agile, empowered and data-driven organisation. This
success has been recognised in 2022 by a Digital Engineering
awards for “Digital Transformation of the Year” in a cross-industry
jury panel.
Skywise data architecture ensures that data becomes the
single source of truth powering the Company’s operations
and products. Building on the successful industrial use cases,
Airbus initiated the implementation of its data product strategy
that aims at supporting end-to-end business processes withan integrated data flow, enabling digital continuity for Airbus
legacy programmes. This effort is paving the way for 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 more than
10,300 (Airbus and other OEMs) commercial aircraft, we estimatethat it has saved the airline industry at least US$ 200 million a year
and has accelerated their overall aircraft operational availability
and post-crisis aircraft return-to-service. 2022 was also theyear of the launch of Skywise Core [X] packages built on a
subscription-based business model with four early adopters.
Skywise was designed from the start with the right security
framework, a strict data governance implementation andindustrial scalability. This made it possible to start small and thenscale up. The technology partner’s world-leading capabilities
in data integration played a key role in the adoption; yet thiscontinuous growth was driven by the focus on value creation,
engagement with the business and employees’ digital skills
upskilling, more than by the technology itself.

Digital Services for Helicopters
Launched in 2020, AirbusWorld, Customer Collaborative
platform, pursues its goal of becoming the Airbus Helicopters
digital front office. Available 24/7, worldwide, easy to use,
AirbusWorld’s primary mission is to enable our customers toquickly find relevant information and perform first level support
activities autonomously.
With a growing community of 42,000 users, AirbusWorld is
continuously proposing new functionalities on key support
activities such as logistics or technical support. Besides,
innovative services are proposed to enrich the overall experience
with Airbus Helicopters.
Many other improvements are on the way to be deployed in
2023 to enrich our digital front Office and propose best in class
support.

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Digitally Enabled People
Google Workspace Deployment
Google and Airbus continue to partner to further improve thefunctionalities of Google Workspace. 2022 has been key forthe enhancement of security with the deployment of Flowcryptand Meet CSE (Client Side Encryption, allowing end users to
encrypt their most sensitive meetings with Airbus encryptionkeys). Data tagging drastically increased and the new secure
email platform has been delivered for military mailboxes. 2023 willbring more autonomy to each employee with the Low code / No
code features being now available to all. 2023 will also see further
deployments in Airbus Helicopters, Airbus Defence and Spaceand Airbus Atlantic.

Modern Workplace
Airbus started to roll out a more efficient and resilient workplace
improving employee productivity from anywhere, anytime
from any device thanks to the modern devices management
programme.
Also, the modern workplace is now even further improved withsmartphone deployment initiated in 2022, to enable each andevery employee seamless communication and collaboration.
This deployment will continue in 2023.

IM eXperts Career Path
Starting in 2021, we have been actively developing the IM eXpert
career path together with the Airbus College of eXperts. Why?
–– because we strongly believe our digital technical expertise
is making the difference for the future of Airbus. A future
where digitalisation, cyber security risks, automation, cloudtechnology, power of data, connectivity, artificial intelligenceand much more have become not only a business enabler but
a competitive advantage of our aerospace industry;–– to officially recognise the tremendous technical know-how of
our employees and offer them more development opportunities
in what they love doing every day at & for Airbus; and–– with the IM eXpert career path we aim to secure key
competencies for Airbus top line strategic priorities, whileproviding meaningful development and career opportunities
to the talents interested in further expanding and deepening
their technical and relational expertise.

Digital Academy Services for All
Since 2018, the Digital Academy team has identified, both atAirbus Group and at worldwide levels, all necessary skills,
competences and people development means to use all theopportunities of our digital transformation. In 2022, somesignificant steps were delivered to boost our digital profiles
attraction and natural retention within whole Airbus:–– 5,000 employees across Airbus have a digital job and60,000 employees have at least a competence in their position
supporting our digital transformation;–– 300 employees certified this on data analysts and data
scientists skills, so far raising up to 1,200 certified colleagues
since 2019;–– new certifications are now live: 30 employees graduated in
Amazon Web Services or Google Cloud Platform and 20
architects obtained the Archim@te certification;

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for architects (526 employees) and technology specialists(400 employees);–– 15,000 employees trained on digital upskilling solutions(Pluralsight and other platforms); and–– 4,000 active members in communities of practice (social
learning) related to our digital jobs, exchanging best practices,
pain points, getting technical mentorship, participating in
events and seminars, etc.

2023 Challenges
2022 once more demonstrated through the above achievements
the great collaboration among all participants from all theDivisions. Digital contributed to the success of the Company,
delivering even further the expected added value from Airbus,
partners and its customers.
Digital will continue next year to be the digital engine of theCompany’s purpose “pioneering sustainable aerospace for asafe and united world”. Data boundaries will vanish to open
the seamless data driven world, enabling end-to-end decision
making and supporting the ramp up of our production rates.
Past years showed how resilience is paramount. Digital will
give its best to make Airbus digitally adaptable and strong withcybersecurity capabilities at the centre, but also unleashing thecloud and sovereign capabilities.
The journey to decarbonise aviation is one Digital’s priorities.
Efforts continue to give the means to reach our reduced emissions
targets with new monitoring systems, material traceability andnew decarbonised aviation solutions for our customers.

Research and Technology
The Airbus Technology and Engineering Department is led by
the Chief Technical Officer (“CTO”). Part of its responsibility is
to define, deliver and protect all the Company’s R&T, enable
technology synergies across the group, federate the Company’s
innovation activities and ensure expertise in breakthroughtechnologies. The R&T Programme department applies a leanproject-based approach, tracked and managed using earned
value management, technology readiness levels and figuresof merit. Technological collaboration with external researchcommunities and partners is encouraged and coordinatedthrough the department with technical and scientific experts.
These duties are delivered through the capabilities outlined here
below.
The Company-wide integration of R&T technology and alignment
with institutional research partners is achieved through crossportfolio technology planning and road mapping, giving an
exhaustive view of technology targets and investments. In
addition, Company-wide engagement for joint funding withpublic agencies is achieved through a common R&T Funding
contract management.
Specific cross divisional activities are delivered through the
Disruptive R&T department consisting of:–– Central R&T: 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.

1. Information on the Company’s Activities /1.3 Other Corporate Activities–– 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 the highest levelof transparency and challenge the status quo by embedding
Airbus’ technology DNA in a highly dynamic environment.
–– X-Labs: providing test and rapid prototyping facilities for thefull R&T portfolio and the Engineering Centres, especiallyaddressing capabilities that do not exist within the company or
external ecosystem, e.g. electrification. X-Labs also provides
external access to these facilities.
–– Acubed: technological innovation and outreach to expertise in
specific regions is delivered through Acubed in Silicon Valley.
–– Airbus Innovation Centre in China: accelerate the delivery ofinnovation projects building on the local ecosystem.
–– Airbus InnovationX: bringing together corporate innovation,
start-up engagement and company building activities.

Key Progress in 2022

Each Division has its own R&T function, defining and delivering
the divisional projects. The divisional R&T functions are primarily
planning and technical arbitration teams within their perimeters
and accountable to both Technology, Divisional Engineeringand Product Strategy. Their responsibilities include securingcontinuous improvement in divisional competitiveness and theability to develop business. Within the Company, specific priority
is given to technologies for sustainable next-generation aircraft,bringing together product, production system and services.

Materials technology: 2022 has seen significant advancementsin the fields of materials sustainability and circularity, materials
informatics, functional and high-performance materials towards
overall sustainability targets, product mission performance andcompetitiveness. The perimeter continues to range from organic
to inorganic materials, including ceramics and respective surface
technologies.
–– In the area of sustainability and circularity the first bio-basedcarbon fibres have been tested at high performance –matching aerospace requirements. Enzymatic technologies
for recycling of polymers have been further analysed and show
further opportunities, including catalyst development for fullbio-based-resin formulations. Titanium chips to powder for
additive manufacturing technologies have shown promising
results, opening new opportunities for future circular process
chain thinking.
–– Digitalisation of materials (from materials definition, tocharacterisation and analytics) is seeing a further increasein opportunities. For example, AI in polymer formulations isbeing investigated, in order to identify opportunities e.g. forthe faster replacement of substances.
–– In the area of functional and high-performance materials, highrobustness of printed electronics (wires, antennas, sensors)
was demonstrated, enabling application opportunities whichwere not possible before.

In order to maximise the Company’s R&T activities, the Divisions
leverage the external ecosystem, utilising the portfolio of
projects for funding opportunities and engagement with global
partnerships, research institutes and universities. This ensuresefficient R&T portfolio execution, and benefits from new ways
of working including but not limited to agile methodology
and minimum viable product demonstration strategy.
Responsibilities include securing continuous improvement indivisional competitiveness and the ability to develop businessby establishing and driving the Company’s R&T ambitions.
Fast-track roadmap owners serve as principal advisors to the
CTO on technical vision and roadmaps for associated technology
areas. Fast-track roadmaps ensure coherency in the portfolio ofactivities and for the rapid advance of strategic priorities acrossthe Divisions. Current fast-track roadmaps cover:–– electrification;–– connectivity;–– autonomy;–– materials;–– artificial intelligence.
The Company’s IP is protected, secured and defended througha central Intellectual Property function responsible for patentapplications, portfolio investigations and portfolio defence.

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Central Research and Technology (“CRT”)
CRT pioneers the future of aerospace by exploring and delivering
ambitious new technologies of maximum potential impact on
Airbus’ future products and services. CRT operates at thejunction of the Airbus core and global research excellence withtwo main objectives:–– be a technical trailblazer: explore and deliver relevant newtechnologies, as well as de-risk and create new opportunities;–– prepare the skills of the Airbus of tomorrow: build internal
capabilities in strategic emerging technologies and provide therelevant expertise to internal customers for technical supportand decision-making.
In 2022, CRT had more than 30 projects running concurrently
across its domains. Highlights from these activities include thefollowing.

Electrification technology: During 2022, the team has madesignificant progress on several aspects of electrification andelectric propulsion techno bricks. For example, demonstrating
active filtering of electromagnetic interference of power modules.
This technology, when applied to dedicated functions, could
result in a significant weight reduction when compared toclassical passive filtering.
Artificial intelligence: In the scope of trustworthy AI, themost impactful outcome was providing formal proofs of neuralnetworks’ robustness supporting the certification of systems,
embedding machine learning components with several
successful applications on existing neural networks. Research
will continue on AI in complex environments, such as AI in the
cockpit, with robust and explainable decision making.
Virtual product engineering: The team has investigatedadvanced model based systems engineering technology
bricks to support co-development of product and industrial
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1. Information on the Company’s Activities /1.3 Other Corporate Activities

be handed over to the DDMS programme for industrialisation.
In addition, projects are running to support modelling andsimulation needs for future sustainable aircraft, including theuse of hybrid AI techniques to support traditional computational
approaches. In the field of aeroacoustics the team has developed
a methodology for coupling Computational Fluid Dynamics (CFD)with Computational Aeroacoustic (CAA) methods. Finally, a
collaborative project has been set up between CRT, Inria andCerfacs in France to enhance our key capabilities in appliedmathematics for modelling and simulation. The initiative called“CONCASE” includes research into hybrid modelling linked to
HPC – a key enabler for the next generation of modelling andsimulation.
Communication technology: The team is trailblazing newcommunication system architectures and technologies enabling
resilient, pervasive and secure connectivity for our airborne
platforms. Major demonstrations of advanced technologicalcapabilities were performed in the field of free-space QuantumKey-Distribution and Post-Quantum-Cryptography to provide
a maximum level of security for our communication links.
Other outstanding project results are paving the way for moreautonomous flight operations with demonstrations on very
highly-available communication links and a many-core processor
implementation for highly-critical applications. New research
initiatives to explore quantum networks and free-space power
beaming for alternative energy sources were started.
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 new emerging technology
for our company and to prepare Airbus for the early adoptionof its portfolio. In 2022 a new partnership was set-up with oneof the leading quantum computing companies IonQ in the
project QUASA (QUAntum enabled Services for Aerospace).
Airbus will work with IonQ on specialised quantum algorithms
to tackle combinatorial optimisation, where quantum computing
could provide an enormous speed-up compared to classicalapproaches. The two companies will explore cargo loading
optimisation as a benchmark use case and use one of the world’s
most powerful quantum computers for demonstration in 2023.
Blue sky research: Explores, validates and pushes more
efficient early upstream technologies, which are new to Airbus,of strategic nature, high risk and high rewards, that will push
the boundaries of aerospace and will lead to high business andsocietal impact. The activity is driven by three clusters: Future
Energies (new ways to generate, convey and manage energy),
Future Transportation (novel ways to transport people, goods
and data), and Future Society (design for societal change). Key
technologies that have been explored are Power Beaming(transfer energy over the air and space), the Metaverse and its
applications across the aviation value chain, and Project 42, amodel of 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 evaluate, matureand validate potential new products and services that embody
radical technological breakthroughs.

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In 2022 the team increased its presence in Spain with the launchof Airbus UpNext Spain, a wholly-owned innovation subsidiary.
As announced in Farnborough in 2022, the team is working
on a demonstrator called Auto’mate on autonomous air-to-air
refuelling operations applying advancements in vision-based
technology.
Throughout 2022, Airbus UpNext progressed with the extraperformance wing demonstrator project focused on accelerating
and validating technologies that will improve and optimise wing
aerodynamics and performance for any future aircraft. This
scaled demonstrator will integrate and fly breakthrough wingtechnologies on a Cessna Citation VII business jet platform in
representative flight conditions. The applications of the extraperformance wing compatible with any propulsion solution
and aircraft configuration would reduce CO2 emissions, thus
contributing significantly to Airbus’ decarbonisation roadmap.
Another demonstrator in the pipe, VERTEX aims to simplify
helicopter mission preparation and management, reduce
helicopter pilot workload, and further increase in safety. The
team has completed the software stack and will flight-test thissolution in 2023.
Supporting the Airbus sustainability ambition, Airbus UpNext
demonstrated technology readiness on key hydrogen propulsion
solutions, enabling the launch of the ZEROe demonstrator in
2022 to mature hydrogen combustion technology on an A380
flight test platform. The team is also investigating contrails formed
via hydrogen direct-burn with the Blue Condor demonstrator
using two glider aircraft.
ASCEND, the “Advanced Superconducting and Cryogenic
Experimental powertraiN Demonstrator” which investigates
per formance of electric propulsion systems using
superconducting materials and cryogenic temperatures has
produced the first physical components for testing. In this field,
Airbus and CERN (European Organization for Nuclear Research)
have signed a partnership to investigate the use of first generation
cryo-cables for aircraft via a sub-scale demonstration.

AcubedLaunched in 2015, Acubed is Airbus’ Innovation Centre in Silicon
Valley. A project-based organisation designed for speed andagility, its mission is to build the future of flight now, leverageworld-class talent within the Silicon Valley ecosystem, and topartner with and provide value to many different Airbus teams.
Acubed drives high-value, high-impact innovations by focusing
on technical domains in which Silicon Valley enjoys a clear
competitive advantage, including artificial intelligence, autonomy,
data analytics, rapid prototyping and digital communications.
Acubed’s agile, highly collaborative model ensures it injects
lasting value and expertise into Airbus while keeping a finger
on the pulse of emerging technologies that have the power totransform 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 candevelop additional value for Airbus and the industry.

1. Information on the Company’s Activities /1.3 Other Corporate Activities

AI and Autonomy
The Wayfinder team is developing certifiable autonomous flightand machine learning solutions to help Airbus bring about asignificant increase in safety and efficiency in the next generationof commercial aircraft. Wayfinder’s team of experts is working
hand-in-hand with Airbus’ teams in Europe to continue to improveand iterate on their computer vision-based autonomous systems
and data-driven development in order to support Airbus’ wider
autonomy goals.

Digital Design and Manufacturing
The Advanced Digital Design and Manufacturing (“ADAM”) teamseeks to transform the aerospace industry through the applicationof digital innovation across design and manufacturing. Whether
adapting manufacturing processes to gain efficiencies or to copewith disruptions, such as supply chain issues, ADAM develops
solutions to reduce lead times, production costs and improve
workflows dynamically, blending its software and hardware
expertise.

Digital Airspace
The Unmanned 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 doing thisthrough research, simulations, operational services and industry
collaborations. Pioneered out of Acubed, these activities are
an integral part of the global Airbus UTM programme locatedacross Europe and Singapore. The team delivers a suite ofproducts for an extensible UTM ecosystem, that includes
essential core services such as safety briefings, risk analysis andairspace authorisation as well as digital airspace twin simulation
capabilities.

Quantum
Acubed is accelerating research on the application of quantum
computing and sensing on aviation use cases to further Airbus’
understanding of the potential of these technologies and how
they may be leveraged to improve operational sustainability.

Airbus China Innovation Centre (“ACIC”)
ACIC, based in Shenzhen, is the first innovation centre set
up by the Company in China. Its mission is to fully leverage
China’s local innovation ecosystem including talents, partners
and resources, combined with the Company’s expertise inaerospace, to discover promising technologies, to identify
solutions enabling new services, and to accelerate the deliveryof innovation projects:–– the manufacturing innovation team is tasked to explore
industry 4.0 technologies to improve efficiency and safety on
the shop floor, as well as to leverage Airbus’ industrial sites in
China for accelerated local testing and global dissemination.
The team is working on computer vision, Automated Guided
Vehicles (“AGV”), 5G industrial connectivity, smart tooling,
remote inspection, green factory and IoT. Various applications
are handed over to business and implemented in daily
operation;–– the cabin experience team is tasked with providing innovation
for the cabin and cargo of tomorrow, to enhance Airbus’ local
cabin offering (local to local) and to increase value for Airbus
global cabin products (from local to global). The team is working
on broadband connectivity with 5G, a smart cabin operation

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system contributing to Airspace Link, flexible displays, IoT
based smart applications and sustainable cabin solutions;–– the tech lab team is working on computer vision algorithm
development, battery scouting and testing, various typesof sensors fit to different scenarios and fast electronics
prototypes building. The team is also starting to engage withcertain industry standard making organisations, to influence
standards with aeronautic requirements.

Airbus InnovationX
Airbus InnovationX focuses on active innovation delivery andoperates on four different levels all integrated under one “roof”
and with a proper innovation governance at Airbus level:–– Global technology intelligence: Explores technology trends
across geographies to support Airbus future challenges while
detecting the right start-ups, SMEs and companies to partner
with;–– Start-up engagement: Understanding the essence of theneeds of Airbus that could be addressed to high maturity
start-ups with the objective to speed-up the solution making
and generating positive impact for Airbus;–– Company building: To anticipate the trends that could disrupt
the future of the aerospace industry and evaluate them toidentify and incubate potential new businesses preparing tobe accelerated within Airbus;–– Corporate innovation: To support and guide the internaland external innovation ecosystem in its development, withthe objective to increase the impact and visibility of Airbus
as an innovative and sustainable company. Supported by
the innovation governance and operations while fostering
entrepreneurship and out-of-the-box thinking within Airbus’
own culture.

Airbus Commercial Aircraft
Airbus Commercial’s R&T activity continues to progress along
the axes of safety, decarbonisation, operational efficiency forour customers, Airbus industrial efficiency and resilience andpassengers’ experience. Technologies are delivered to current
programmes, providing options to improve the products andthe industrial system.
Technology bricks for future programmes are also investigatedand matured: propulsion, wing, aircraft systems, fuselage,
empennage, cabin, industrial, maintenance and engineering
capabilities are examples of domains of interest. These
technology bricks will provide part of the solution for our future
licence to operate and our future efficiency and resilience. Theirmaturation is the object of a multi-year effort.
To give some examples of achievements in 2022:–– the Open Fan engine project was announced during the
Farnborough airshow to study the concept in partnershipwith engine manufacturer CFM;–– the emissions coming out of engines using SAF measured inflight are providing valuable data for climate science and thedesign of future engines;–– the Fello’Fly demonstrator project, looking at reducing CO2
through wake energy retrieval, was named Grand Winnerof Aviation Week’s most prestigious Laureate Awards for
extraordinary achievements in commercial aviation.
Low carbon technologies continue to be a strong focus. As
part of its ambition to lead the decarbonisation of our industry,
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propulsion and liquid hydrogen storage and distribution systems.
Airbus has disclosed in 2022 its H2 combustion propulsion
system flight test demonstrator with CFM (also mentioned abovein the UpNext section) as well as its technology roadmap forthe development of a fuel cell propulsion system. Airbus has
also engaged in many strategic partnerships around the worldin understanding and exploring the hydrogen ecosystem tosupport the successful entry into service of a hydrogen powered
aircraft in 2035. This will accelerate in 2023 with more integrated
ground testing, as well as the preparation of the forthcoming flightdemonstrations. In parallel, different aircraft configurations will be
explored and matured in 2023, to assess the most efficient way
to integrate those technologies inside the aircraft. The Company
will also continue its effort to support its customers to build theirroute-to-lower carbon operations, and to grow its partnershiplandscape for critical technology bricks and related ecosystems.

Airbus Helicopters
Significant steps forward were made in 2022 in the Researchand Innovation department, with activities focused on the main
demonstrators and techno-bricks.
The Flight Lab, the Airbus Helicopters’ techno bricks
demonstrator, performed several tests in 2022:–– engine Back-Up System function completed its demonstration
on a single engine helicopter;–– cable detection function using LIDAR and image processing
operations was demonstrated.
Eye for Autonomous Guidance Landing Extension (EAGLE), basedon a gyro-stabilised camera, using an artificial intelligence image
processing software completed its functional demonstration.
Health function for Light Helicopters using wireless set-up wascompletely validated for further deployment.
The RACER assembly significantly progressed. Shake tests weresuccessfully run and power on of the demonstrator was done.
Main remaining component to be received to finalise assemblyis the main gear box. With the remaining flight clearance tests,
the first flight is now planned for the second half of 2023.
The DisruptiveLab demonstrator and its first techno-bricks were
unveiled at the Airbus Summit. Ground tests were successfully run
at the end of 2022 and the flight testing started in January 2023.

Airbus Defence and Space
2022 offered us the opportunity to balance the short and longterm technologies in order to ring fence our R&T portfolio.
This has allowed us to secure the activities focussing on
strategic technologies, under the assumption that mastering
those technologies will be key to maintain Airbus’ competitive
positioning in the mid-to-long-term (e.g., Quantum, advanced
AI applications).
It is worth mentioning the Zero Base Budgeting exercise, which
took place in 2022 with the aim of ensuring the alignment
between the R&T portfolio and our future challenges.

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The technology flagships have been updated to align with thestrategy and the business ambition. Currently six different
Technology Flagships define the main capabilities andcompetences required in the Division while maintaining a fullalignment across the programme lines and product portfolio:“Sustainable Aerospace”, “The future of Warfare”, “NextGeneration Aerospace Vehicles”, “High Performance Payloads& On board-computers”, “End to End Information superiority”
and “Industrial Competitiveness”.
This optimisation of the technology landscape also took into
account the reinforcement of links between R&T and R&D, andemphasised technologies reaching an “adoption at the right time
and with the right speed” by the business and the programmelines, once the technologies reach a maturity level that allow
their industrialisation and insertion into a product.
In terms of the main technology achievements, we achieved
significant progress across all flagships.
End-to-end information superiority: we have focused onenhancing data management for decision support. As an
example, the TWIN project (Pléiades Neo Super Resolution
Images) has opened the door to negotiations with Google andApple.
Next generation spacecraft vehicles: we continued working on
advanced materials and structures, human-machine interface
and autonomy, among others. As an example, we achieved thehandover of C295 Ergonomic Cockpit, with a cost reduction of€ 500 per flight hour.
High performance payloads & on-board computers: activities
continue centred on increasing computing performance andincreasing high throughput communication capabilities. As an
example, the project Space Optical NAOMI has reduced by-50% the lead time of the NAOMI instrument automatic opticalalignment.
Industrial competitiveness: specially linked to industrial
performance improvement and deploying technologies related
to the Factory of the Future. As an example, the AMANDA project
has developed a Digital Assistant for blue collars to interact
by voice with Manufacturing systems, or the MFOP project
has developed a digital framework for aircraft diagnosis andprognosis to increase 15% fleet availability and reduce 20%
operating costs.
Future of warfare and sustainable aerospace are two newflagships that will guide the ambition for the following years.
Achievements in these fields include the development ofalgorithms for flexible coordinated formation flight (it will pave
the way for FCAS) or the successful flight test of C295 semimorphing wing that reduces -43% CO2, and -45% lower noiseand reduction of fuel consumption.
Finally, strong efforts were placed on defining the technology
national plans for the home countries, which will be key for the
eco-systems footprint in the core nations, maximising the publicprivate collaboration and especially focusing on the nationalcustomer priorities.

1. Information on the Company’s Activities /1.4 Recent Developments

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1.4 Recent Developments
On 1 February 2023, Qatar Airways and the Company
announced they had reached an amicable and mutuallyagreeable settlement in relation to their legal dispute over A350
surface degradation and the grounding of A350 aircraft. The
parties have proceeded to discontinue their legal claims. The
settlement agreement is not an admission of liability for either
party (see “– 1.1.7 Legal and Arbitration Proceedings”). The
parties have also agreed terms for the delivery of 50 A321 and
23 A350 aircraft.
On 14 February 2023, the Company appointed Dr. Thomas
Toepfer to succeed Dominik Asam as Chief Financial Officer
on 1 September 2023. Following Dominik Asam’s departure on

3 March 2023, Xavier Tardy, Executive Vice-President Financefor Airbus Defence and Space, will ensure continuity during theinterim period in addition to his current role.
On 29 March 2023 the Company announced, after carefulconsideration, it has come to the conclusion that the potential
acquisition of a minority stake of 29.9% in Evidian does notmeet the Company’s objectives in the current context andunder the current structure. Airbus therefore confirms that it
will no longer pursue discussions, initiated in February 2023,
with respect to the potential acquisition of a minority stake of
29.9% in Evidian.

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Chapter

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02Management’s Discussion
and Analysis of Financial
Condition and Resultsof Operations
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.1.6

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

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174

2.2

Financial Statements

178

2.3

Statutory Auditor Fees

178

2.4

Information Regarding the Statutory Auditors

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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 2022, 2021 and 2020. These Financial Statements have been prepared inaccordance with International Financial Reporting Standards (“IFRS”) issued by the International
Accounting Standards Board as endorsed by the European Union, and with Part 9 of Book 2of the Dutch Civil Code. When reference is made to “IFRS”, this intends to be EU-IFRS.
The following discussion and analysis also contains certain “non-GAAP financial measures”,
i.e. financial measures that either exclude or include amounts that are not excluded or includedin the most directly comparable measure calculated and presented in accordance with IFRS.
Specifically, the Company makes use of the non-GAAP financial measures (i.e. Alternative
Performance Measures) “EBIT Adjusted”, “net cash” and “Free Cash Flow”.
The Company uses these non-GAAP financial measures to assess its consolidated financial
and operating performance and believes they are helpful in identifying trends in its performance.
These measures enhance management’s ability to make decisions with respect to resource
allocation and whether the Company is meeting its financial goals.
Non-GAAP financial measures have certain limitations as analytical tools, and should not be
considered in isolation or as substitutes for analysis of the Company’s results as reported
under IFRS. Because of these limitations, they should not be considered substitutes for the
relevant IFRS measures.
The Company also measures and communicates its performance on the basis of “EBIT”(reported).

Reporting in Universal Registration Document 2022
Macroeconomic environment. In 2022, the Company has been operating in an adverse
macroeconomic environment in light of high inflation, energy crisis, increasing interest rates,
but also remaining effects of the COVID-19 pandemic. For further information, please refer to“Notes to the IFRS Consolidated Financial Statements – Note 3: Macroeconomic Environment”.

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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 defence, security
and space businesses. In helicopters, the Company provides
civil and military rotorcraft solutions and services worldwide.

The Company’s consolidated revenues amounted to € 58.8 billion
in 2022, of which 80% in the civil sector (compared to 82% in2021) and 20% in the defence sector (compared to 18% in 2021).
As of 31 December 2022, the Company’s active headcountwas 134,267 employees, an increase compared to 2021
(126,495 employees).

02

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 2020

1.14220.88971.22710.899031 December 2021

1.18270.8596

1.13260.840331 December 2022

1.05300.85281.06670.88692.1.1.2 Reportable Business Segments
In 2022, 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 Aircraft design,development, delivery, and support of military aircraft suchas combat, mission, transport and tanker aircraft and theirassociated services. Space Systems design, development,delivery, and support of full range of civil and defence
space systems for telecommunications, earth observations,navigation, science and orbital systems. Connected Intelligence
provision of services around data processing from platforms,
secure communication and cyber security. Unmanned Aerial
Systems design, development, delivery and service support.
In addition, the main joint ventures design, develop, deliver,and support missile systems and space launcher systems.
On 1 January 2022, Airbus Atlantic, a wholly-owned Airbus
subsidiary, was established. The new company groups thestrengths, resources and skills of Airbus’s sites in Nantes andMontoir-de-Bretagne, the central functions associated with theiractivities, as well as the STELIA Aerospace sites worldwide.
This unification is part of the transformation project announcedin April 2021, aimed at strengthening the value chain ofaerostructure assembly within Airbus’s industrial setup.

In addition, Airbus Aerostructures GmbH was established on
1 July 2022. The new wholly-owned Airbus subsidiary manages
and delivers large structural components to Airbus. It includes
four production sites in Germany: the Hamburg plant andheadquarters, the plant in Stade, and the former Premium
AEROTEC plants of Nordenham and Bremen. Adjacent Premium
AEROTEC sites in Augsburg, Varel and Braşov will initially remain
in Premium AEROTEC GmbH and are planned to undergo
restructuring and, upon successful restructuring, to be integrated
into Airbus Aerostructures GmbH by 30 June 2025.
These have no impact on the segment structure describedabove.
Consolidation effects are reported in the column “Eliminations”.

2.1.1.3 Significant Programme
Developments in 2020, 2021 and2022 and Other Financial Topics
A320 programme. On 8 April 2020, the Company announced
its decision to adapt commercial aircraft production rates to 40
per month for the A320 Family in response to the new COVID-19
market environment. In 2020, 431 A320neo Family aircraft weredelivered. On A320, production rates were foreseen to gradually
increase from 40 aircraft per month currently to 43 in the third
quarter and 45 in the fourth quarter 2021.
In 2021, 459 A320neo Family aircraft were delivered. On
28 October 2021, the Company announced that it was working
to secure the A320 Family programme ramp up and was on
trajectory to achieve a monthly rate of 65 aircraft by summer
2023.
In 2022, 516 A320 Family aircraft were delivered. On the A320
Family programme, the ramp-up trajectory has been adaptedwith suppliers. The Company is now progressing towards amonthly production rate of 65 aircraft by the end of 2024 and75 in 2026. Entry-into-service for the A321XLR is expected totake place in Q2 2024.

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A350 programme. On 8 April 2020, the Company announced
its decision to adapt commercial aircraft production rates to six
per month for A350 in response to the new COVID-19 market
environment. Subsequently, the rate for A350 was further
reduced to around five per month. In 2020, 59 A350 aircraft
were delivered. Given the significant production rate reduction,
the A350 programme did not reach breakeven with this levelof deliveries.
In 2021, 55 A350 aircraft were delivered. On 28 October 2021,
the Company announced the A350 programme is expected
to increase from around five to around six aircraft a month inearly 2023.
In 2022, 60(1) A350 aircraft were delivered. The A350 monthly
rate is now around six aircraft. In order to meet growing demand
for widebody aircraft as international air travel recovers, andfollowing a feasibility study with the supply chain, the Company
is now targeting a monthly production rate of nine A350s at theend of 2025.
A400M programme. Developments on the A400M programme
resulted in the recognition of revenues of € 1.6 billion in
2020, € 1.4 billion in 2021 and € 1.8 billion in 2022.
In 2020, the Company has delivered nine aircraft. An updateof the contract estimate at completion was performed and acharge of € 63 million recorded reflecting mainly the variation ofprice escalation indexes.
In 2021, the Company has delivered eight aircraft. The COVID-19
pandemic weighed on the performance of development,
production, flight testing, aircraft delivery and retrofit activitiesof the programme. In 2021, an update of the contract estimate
at completion has been performed and an additional charge of€ 212 million has been recorded. This reflects mainly the updated
estimates on the delivery pattern of the launch contract and theassociated impact on unabsorbed costs.
As of 31 December 2022, the Company has delivered a total of
115 A400M aircraft including 10 aircraft in 2022. The Company
has continued with development activities toward achieving therevised capability roadmap. Retrofit activities are progressing inclose alignment with the customer. In 2022, an update of thecontract Estimate At Completion has been performed and an
additional charge of € 477 million recorded. This mainly reflects
updated assumptions, including inflation and risks related to
the remaining SOC3 contractual development milestones tobe achieved.
Risks remain on the qualification of technical capabilities andassociated costs, on aircraft operational reliability, on cost
reductions and on securing export orders in time as per therevised baseline.
A330 programme. In 2020, 19 A330 were delivered. On
8 April 2020, the Company announced its decision to reduce
commercial aircraft production rates to around two per monthfor A330 in response to the new COVID-19 market environment.
In 2021, 18 A330 were delivered. On 28 October 2021, theCompany announced that the recent commercial success of
the A330 programme enabled a monthly rate increase fromaround two to almost three aircraft at the end of 2022.

In 2022, 32 A330 were delivered. The A330 monthly production
rate increased to around three at the end of 2022 as planned andthe Company now targets to reach rate four in 2024.
A220 programme. In 2020, 38 A220 aircraft were delivered.
Rates were expected to increase from four to five aircraft permonth from the end of the first quarter 2021.
In 2021, 50 A220 aircraft were delivered. On 28 October 2021,
the Company announced the A220 production rate, which was
at five aircraft a month, was expected to increase to around rate
six per month in early 2022.
In 2022, 53 A220 aircraft were delivered and the monthly rateof 14 is envisaged by the middle of the decade.
A380 programme. Airbus delivered the last five A380 aircraftin 2021 and four in 2020.
As of 31 December 2018, the Company’s largest A380 operator
reviewed its aircraft fleet strategy going forward and concluded
it was forced to restructure and reduce its A380 order by 39
aircraft. As a consequence, the recognition of the onerous
contract provision as well as other specific provisions andthe remeasurement of the liabilities affected the consolidated
income statement before taxes by a net € 463 million in EBIT(2)and positively impacted the other financial result by € 177 million
as of 31 December 2018.
As a consequence and in addition to the net charge recorded
in 2018, the Company recorded a net charge of € 385 million
in EBIT in 2020 and of € 202 million in 2019, as part of its
continuous assessment of asset recoverability and review ofonerous contract provision assumptions. In 2021, a positive
EBIT impact of € 274 million was recorded, mainly reflecting
the release of provision recorded in 2018 on the former A380
Lagardère facility that will be used for the modernised A320 FAL.
Defence export ban. Defence export licences to Saudi Arabia
were suspended by the German Government until 31 March
2020 and are awaiting renewal. A revised Estimate at Completion(EAC) for a customer contract was performed as of 31 December
2020, and the Company continues to engage with its customer
to agree a way forward. The outcome of these negotiations ispresently unclear but could result in further significant financial
impacts. The year-end 2020 assessment remains unchanged
as of 31 December 2021.
In 2022, the Company updated its contract EAC which confirmed
the 2021 position. The Company continues to engage with its
customer to agree a way forward. The outcome of these actions
is presently unclear but could result in further significant financial
impacts.
Going concern and associated liquidity measures.
On 23 March 2020, the Company announced measures tobolster its liquidity and balance sheet in response to the COVID-19
pandemic, including a new € 15 billion credit facility partiallytermed out by bond and USPP issuances whereas the remaining
portion matured on 30 September 2021, the withdrawal of 2019
dividend proposal with cash value of € 1.4 billion, the suspensionof voluntary top up pension funding and strong focus on support
to customers and delivery. In parallel, governmental partners
supported the aerospace sector since the beginning of the(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) The Company continues to use the term EBIT. EBIT is identical to profit before financial result and income taxes.

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crisis either through direct support to airlines and suppliers, or
through partial unemployment schemes. With these decisions,the Company had available liquidity to cope with additional
cash requirements, including the amended production rates
as described above. As of 31 December 2020, the Company
had a net cash position of € 4.7(3) billion with a total liquidity of€ 33.6 billion, before deducting short-term financing liabilities.
As of 31 December 2021, the Company had a net cash positionof € 7.7(3) billion with a total liquidity of € 28.7 billion, before
deducting short-term financing liabilities. As of 31 December
2021, management considers the Company has sufficient
resources to continue operating for at least 12 months and that
there are no material uncertainties about the Company’s ability
to continue as a going concern.
As of 31 December 2022, the Company had a net cash positionof € 9.4(3) billion with a total liquidity of € 31.6 billion, before
deducting short-term financing liabilities. As of 31 December
2022, management considers the Company has sufficient
resources to continue operating for at least 12 months and that
there are no material uncertainties about the Company’s ability tocontinue as a going concern. For further information on liquidity,
see “– 2.1.6 Liquidity and Capital Resources”.
Restructuring provisions. In June 2020, Airbus announcedplans to adapt its global workforce, principally in France,
Germany, Spain and the UK, and resize its commercial aircraft
activity in response to the COVID-19 crisis. This adaptation was
expected to result in a reduction of around 15,000 positions nolater than summer 2021. Working time adaptation and mitigation
measures supported by the governments have reduced thenumber of positions subject to the restructuring plan. Taking
into consideration the actual departures since the initial
announcement, the remaining number of positions subject tothe restructuring plan amounted to approximately 6,100 as of
31 December 2020, including pre-retirement headcount under
German Altersteilzeit (“ATZ”). In addition, Airbus Defence andSpace completed the consultation process with the Company’s
European works council on the Division’s planned restructuring.
The plan presented to the employee representatives initiallyforesaw the reduction of around 1,900 positions including preretirement headcount under ATZ until the end of 2021. However
this number was also subsequently reduced to approximately
1,400 positions reflecting departures which occurred after
the initial announcement. In November 2020, a reconciliationof Interest Agreement involving approximately 100 positions
was signed in Germany within Airbus Helicopters and hence,a provision has been recorded accordingly. As of 30 September
2020, a restructuring provision was recognised for an amount of€ 1.2 billion including mainly the cost of voluntary and compulsory
measures taking into account management’s best estimate of
the impact of the working time adaptation and government
support measures. Total payments to employees affected by
the plan were expected to amount to approximately € 1.5 billion,
including the settlement of other accrued employee benefits.
As of 31 December 2021 and 31 December 2020, therestructuring provision in response to the COVID-19 pandemic
amounted to € 0.1 billion and € 1.0 billion respectively. It reflects
the utilisation of the restructuring provision for an amount of€ 0.6 billion, the release of € 0.2 billion and € 0.2 billion reclassified
to liabilities to reflect the progress of the plan.

As of 31 December 2022, there was no material impact.
Operational assets. As of 31 December 2020 and in responseto the COVID-19 pandemic, the Company performed acomprehensive review of its operational assets and liabilities
taking into account the amended production rates and expected
future deliveries. This review resulted in charges being recorded
in 2020 for an amount of € 1.3 billion, including an impairmentof inventories considered at risk of € 355 million, additional
provisions relating to A380 programme of € 279 million, a writeoff of capitalised development costs of € 101 million, provisions
for supplier commitments of € 157 million and provisions coveringvarious commercial risks of approximately € 401 million.

02

As of 31 December 2021, year-to-date financials reflect deliveries
as well as efforts on cost containment and competitiveness.
Furthermore, the Company has performed a comprehensive
review of provisions and depreciations, taking into accountthe amended production rates and expected future deliveries.
Consequently, the Company recorded € 0.6 billion of release of
COVID-related provisions including restructuring in 2021.
As of 31 December 2022 and as a consequence of the
Ukraine crisis, the resulting recorded EBIT charge amounts toapproximately € 0.1 billion, mainly relating to Airbus.
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 25:
Provisions, Contingent Assets and Contingent Liabilities”.

2.1.1.4 Current Trends
As the basis for its 2023 guidance, the Company assumes noadditional disruptions to the world economy, air traffic, the supply
chain, the Company’s internal operations, and its ability to deliverproducts and services. The Company’s 2023 guidance is before
M&A.
On that basis, the Company targets to achieve in 2023 around:
720 commercial aircraft deliveries; EBIT Adjusted of € 6.0 billion;
and Free Cash Flow before M&A and Customer Financing of€ 3.0 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’s control
are as follows: (a) underlying commercial aircraft deliveries are
based on existing orders. Revenues from other activities arealso based on existing orders and may include estimates basedon relevant market forecasts; (b) no significant interruption in
operational performance or programme execution; (c) no
disruption in or change to the development of products orother development projects; and (d) no material change to theCompany’s existing capital structure.
The principal assumptions outside the Company’s control are
as follows: (a) no material change in general trading conditions,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(3) 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.

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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 thelegislative or regulatory environment which could have a material
effect on the Company; and (f) no adverse outcome to any
material litigation or investigation.

This guidance has been prepared on a basis consistent with theaccounting policies adopted by the Company and is comparablewith the Company’s historical financial information.

2.1.2 Significant Accounting Considerations, Policies and Estimates
The Company’s significant accounting considerations,policies and estimates are described in the Notes to the IFRS
Consolidated Financial Statements. Please refer to the “Notes tothe IFRS Consolidated Financial Statements – Note 4: Significant
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 8: Scope of Consolidation” and“– Note 9: Acquisitions and Disposals”.

2.1.2.2 Capitalised Development Costs
Pursuant to the application of IAS 38 “Intangible Assets”,
the Company assesses whether product-related development
costs qualify for capitalisation as internally generated intangible
assets. Criteria for capitalisation are strictly applied. All researchand development costs not meeting the IAS 38 criteria are
expensed as incurred in the consolidated income statement.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 4: Significant Accounting Policies” and“– Note 20: 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 be deliveredin the future, the margin of these aircraft, and the discount rate
associated with the aircraft programme. For aircraft that may
need to be remarketed, the impairment of working progress andfinished aircraft is assessed based on an estimation of the future
selling price and associated remarketing costs. Please refer tothe “Notes to the IFRS Consolidated Financial Statements –Note 4: Significant Accounting Policies”, “– Note 20: Intangible
Assets” and “– Note 24: Inventories”.

2.1.2.4 Accounting for Hedged Foreign
Exchange Transactions in
the Financial Statements
In 2022, more than 70% of the Company’s revenues aredenominated in US dollars, with around 60% of such currency
exposure “naturally hedged” by US dollar-denominated costs.
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 minimise
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.
Moreover, to further mitigate the impact of exchange rate
fluctuations on its profits, the Company enters into euro
conversion agreements with its customers to convert fully or
partially the payment from US dollar into euro based on anagreed conversion rate. Such agreements are implemented on
an exceptional basis and at the specific request of the customer.
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: Significant
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

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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 andthe resulting exposure. Please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 22: Other Investments
and Other Long-Term Financial Assets”, “– Note 25: Provisions,Contingent Assets and Contingent Liabilities” and “– Note 28:
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

02

Provisions for onerous contracts are reviewed and reassessed
regularly. However, future changes in the assumptions used by
the Company or a change in the underlying circumstances maylead to a revaluation of past provisions for onerous contracts
and have a corresponding positive or negative effect on
the Company’s future financial performance. Please refer tothe “Notes to the IFRS Consolidated Financial Statements –Note 4: Significant Accounting Policies – Provisions for onerous
contracts” and “– Note 25: Provisions, Contingent Assets andContingent Liabilities”.

2.1.3 Performance Measures
2.1.3.1 Business segments
Airbus(In € million)

2022

2021

2020

Revenue

41,42836,16434,250

EBIT

4,800

4,175

(1,330)

11.6%

11.5%

(3.9%)(In € million)

2022

2021

2020

Revenue

7,048

6,509

6,251

639

535

455

9.1%

8.2%

7.3%

in % of revenue

Airbus Helicopters

EBIT
in % of revenue

Airbus Defence and Space(In € million)

2022

2021

2020

Revenue

11,25910,186

10,446

EBIT
in % of revenue

(118)

568

408

(1.0%)

5.6%

3.9%

2.1.3.2 Order Intake and Order Backlog
Year-end order backlog consists of contracts signed up tothat date. Only firm orders are included in calculating the orderbacklog for commercial aircraft and civil helicopters. A firm
order is defined as one for which the Company receives a down
payment on a definitive contract. Defence-related orders areincluded in the backlog upon enforcement of the signed contract.
Commitments under defence “umbrella” or “framework”
agreements by governmental customers are not included inbacklog until the Company is officially notified.

The total order backlog and order intake represent the aggregate
amount of the net transaction price allocated to the unsatisfied
and partially unsatisfied performance obligations to theCompany’s customers. Backlog commitments are relative to
the Company’s enforceable contracts with its customers where
it is probable that the consideration will be collected. Contractual
rebates, engine concessions and variable considerations aretaken into account for measurement. Contracts stipulated in acurrency different from the presentation currency are translated

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to euro using the spot rate as of 31 December 2022, 2021 and2020, respectively. Adjustments to the value of the order backlog
could result from changes in the transaction price. Options are

not considered in the valuation of order intake and order backlog.
The order backlog will mainly be released into revenue over a
period of eight years.

ORDER INTAKE
2022

2021

(In € billion) (In percentage)(1)2020(In € billion) (In percentage)(1)(In € billion) (In percentage)(1)

Airbus

59.7

72.2%

40.0

64.3%

16.1

48.1%

Airbus Helicopters

9.3

11.2%

8.6

13.7%

5.5

16.4%

Airbus Defence and Space

13.7

16.6%

13.7

22.0%

11.9

35.5%

Subtotal segmental order intake

82.7

100%

62.2

100%

33.5

100%

Eliminations

(0.2)

(0.2)

(0.2)

Total

82.5

62.0

33.3

(1) Before “Eliminations”.

ORDER BACKLOG
31 December
2022

2021

(In € billion) (In percentage)

Airbus

390.5

(1)

2020

(In € billion) (In percentage)

(1)

86.9%

345.1

86.4%

(In € billion) (In percentage)(1)

324.7

86.8%

Airbus Helicopters

20.8

4.6%

18.0

4.5%

15.8

4.2%

Airbus Defence and Space

38.4

8.5%

36.1

9.1%

33.5

9.0%

Subtotal segmental order backlog

449.7

100%

399.2

100%

374.0

100%

Eliminations

Total

(0.4)

(0.8)

(0.9)

449.2

398.4

373.1

(1) Before “Eliminations”.

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 € 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 € 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 € 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

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System, the Eurodrone unmanned aerial system and 20 latestgeneration Eurofighters for the Spanish Air Force.
2021 compared to 2020. The € 25.3 billion increase in orderbacklog to € 398.4 billion (2020: € 373.1 billion) mainly reflected
the strengthening US dollar.
Airbus’ backlog increased by € 20.4 billion to € 345.1 billion. The
book-to-bill ratio in units was below one (calculated using units of
new net orders, i.e. new net orders in units divided by deliveries
in units). Total order backlog at Airbus amounted to 7,082 aircraftat the end of 2021 (as compared to 7,184 aircraft at the endof 2020). Order intake consisted of 507 net orders in 2021 (ascompared to 268 in 2020), comprising 437 net firm orders of
the A320 Family, 38 A220s and 32 widebodies, including thefirst A350 Freighter orders.
Airbus Helicopters’ backlog increased by € 2.2 billion to€ 18.0 billion, achieving a book-to-bill ratio well above one
in terms of units and value. Total order backlog amounted
to 739 helicopters at the end of 2021 (as compared to
663 helicopters at the end of 2020). Airbus Helicopters received
414 net orders in 2021 (as compared to 268 in 2020), including
52 H160s, of which 30 were the first batch of H160M militaryversions for France’s Joint Light Helicopter programme.

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

Airbus Defence and Space’s backlog increased by € 2.6 billion
to € 36.1 billion and the book-to-bill ratio in value amounted to
1.3 with new net orders of € 13.7 billion, including key orders in
the Military Aircraft business such as the contracts for the in-service support of the German and Spanish Eurofighter fleetsas well as export contracts for the C295 (India), A330 MRTT
(United Arab Emirates and Spain) and A400M airlifter (Republicof Kazakhstan).

02

The following table illustrates the proportion of civil and defence backlog at the end of each of the past three years.
31 December
2022
Civil sector
Defence sector

Total

2021

2020

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

402.0

89%

355.3

89%

334.5

90%

47.2

11%

43.1

11%

38.6

10%

449.2

100%

398.4

100%

373.1

100%

(1) Including “Eliminations”.

2.1.3.3 EBIT by Business Segment(In € million)

2022

2021

2020

Airbus

4,800

4,175

(1,330)

639

535

455

Airbus Helicopters
Airbus Defence and Space

(118)

568

408

Subtotal segmental EBIT

5,321

5,278

(467)

Eliminations

Total

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.
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.
2021 compared to 2020. The Company’s consolidated EBIT
increased from € -0.5 billion for 2020 to € 5.3 billion for 2021,
mainly driven by Airbus.

4

64

(43)

5,325

5,342

(510)

Airbus’ EBIT increased from € -1.3 billion for 2020 to € 4.2 billion
for 2021. This mainly reflects the higher commercial aircraft
deliveries, effort on cost containment and competitiveness aswell as the release of COVID-related provisions in 2021 comparedto the recording of charges triggered by the COVID-19 pandemic
in 2020, including restructuring provision.
Airbus Helicopters’ EBIT increased from € 455 million for 2020to € 535 million for 2021, mainly driven by support and services,
programme execution and cost focus.
Airbus Defence and Space’s EBIT increased from € 408 million
for 2020 to € 568 million for 2021, reflecting continued cost
containment. Additionally, it includes the gain recognised forthe sale of one of its sites in France to a 50% joint venture of€ 122 million and higher A400M programme charge.
Foreign currency impact on EBIT. In 2022, more than 70%of the Company’s revenues are denominated in US dollars
with approximately 60% of such currency exposure “naturally
hedged” by US dollar-denominated costs. The remainder ofcosts are incurred primarily in euros and to a lesser extent,
pounds sterling. Given the long-term nature of its businesscycles (evidenced by its multi-year backlog), the Company covers
a significant portion of its net foreign exchange exposure to
mitigate the impact of exchange rate fluctuations on its EBIT.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 38: Financial Instruments” and see “– Risk
Factors – 1. Financial Market Risks – Foreign Currency Exposure”
and “– 2.1.2.5 Foreign Currency Translation”.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

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 minimising the impact of exchange rate
fluctuations on Company’s profit.
–– Euro conversion, on an exceptional basis and at the specificrequest of the 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 2022, US$ 20.3 billion of forwards matured and euro
conversion realised at an average blended rate of €/US$ 1.22.
During 2021, US$ 21.8 billion of forwards matured and euro
conversion realised at an average blended rate of €/US$ 1.21,
as compared to €/US$ 1.20 in 2020.

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)

2022

2021

2020

EBIT

5,325

5,342

(510)

PDP mismatch / BS revaluation

(308)

38

480

A380 programme

(28)

(274)

385

A400M charge

477

212

63

Compliance costs

75

65

87

0

(122)

0

(4)

0

2

62

(163)

1,199

0

(234)

0

Non-current assets disposal(1)

M&A impact
Restructuring(2)

Payments by suppliers
OthersEBIT Adjusted

28

1

0

5,627

4,865

1,706

(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 2022, release of restructuring provision (€ 0.2 billion) in 2021 initially recognised in 2020 (€ 1.2 billion).

2.1.3.5 EBIT Adjusted by Business Segment(In € million)

2022

2021

2020

Airbus

618

4,600

3,570

Airbus Helicopters

639

535

471

Airbus Defence and Space

384

696

660

5,623

4,801

1,749

Subtotal segmental EBIT Adjusted
Eliminations

Total

168

Airbus / Universal Registration Document 2022

4

64

(43)

5,627

4,865

1,706

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)

2022

2021

2020

Revenue

58,76352,14949,912

Cost of sales(48,192)(42,518)(44,250)

Gross margin

10,571

9,631

5,662

Selling and administrative expenses(2,240)(2,052)(2,140)Research and development expenses(3,079)(2,746)(2,858)Other income

471

594

132

Other expenses

(590)

(201)

(1,458)

Share of profit from investments accounted for under the equity
method and other income from investments

192

116

152

Profit (Loss) before finance costs and income taxes

5,325

5,342

(510)

Interest result

(232)

(246)

(271)
(349)

Other financial result

(18)

(69)

Income taxes

(939)

(853)

(39)

Profit (Loss) for the period

4,136

4,174

(1,169)Equity owners of the parent (Net income)

4,247

4,213

(1,133)

Non-controlling interests

(111)

(39)

(36)

02

Attributable toEarnings per share

€

€

€

Basic

5.40

5.36

(1.45)

Diluted

5.39

5.36

(1.45)

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)

2022

2021

2020

Airbus41,42836,16434,250Airbus Helicopters

7,048

6,509

6,251

Airbus Defence and Space

11,25910,186

10,446

Subtotal segmental revenue

59,73552,85950,947

(972)

(710)

(1,035)58,76352,14949,912Eliminations

Total

Revenues increased by 12.7%, from € 52.1 billion for 2021 to€ 58.8 billion for 2022. The increase is mainly driven by higher
aircraft deliveries of 661 aircraft (in 2021: 611 aircraft) and higher

contributions from Airbus Defence and Space and Airbus
Helicopters. It also reflects a positive foreign exchange impact
at Airbus.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

For 2021, revenues increased by 4.5%, from € 49.9 billion for 2020 to € 52.1 billion for 2021. The increase was mainly driven by
Airbus, reflecting higher aircraft deliveries partly offset by an unfavourable foreign exchange impact.

Revenue by Geographical Areas
2022

2021

(In € billion) (In percentage)(1)2020(In € billion) (In percentage)(1)(In € billion) (In percentage)(1)Asia/Pacific

15.4

26.2%

16.0

30.6%

13.1

26.3%

Europe

24.3

41.3%

19.5

37.4%

20.3

40.7%

North America

13.5

23.0%

10.5

20.2%

8.7

17.4%

Other countries(2)

5.6

9.5%

6.1

11.8%

7.8

15.6%

58.8

100%

52.1

100%

49.9

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)

2022

2021

2020

A220

53

50

38

A320 Family

516

483

446

A330

32

18(2)

19

A350

60

(1)

55

59

A380

0

5

4

Total

661

611

566

(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 14.4%, from € 36.2 billion for 2021
to € 41.4 billion for 2022. This reflected higher aircraft deliveries of
661 aircraft (compared to 611 deliveries in 2021) and a positive
foreign exchange impact.

For 2021, Airbus’ revenues increased by 5.6%, from € 34.3 billion
for 2020 to € 36.2 billion for 2021. This reflected higher deliveriesof 611 aircraft (compared to 566 deliveries in 2020), partly offset
by an unfavourable foreign exchange impact.

Airbus Helicopters
The following table presents a breakdown of deliveries of helicopters by product type for the past three years.
2022

2021

2020

Light

167

159

123

Medium

123

121

126

Heavy

54

58

50

28

27

28

(In units)

thereof NH90
Tiger

0

0

1

Total

344

338

300

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.

170

Airbus / Universal Registration Document 2022

Airbus Helicopters’ revenues amounted to € 6.5 billion in 2021
(2020: € 6.3 billion). This increase reflected growth in services
and higher deliveries of 338 units (2020: 300 units), including
the first H160.

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

Airbus Defence and Space
The following table presents a breakdown of deliveries of Airbus Defence and Space by product type for the past three years.
(In units)

2022

2021

2020

A400M

10

8

9

A330 MRTT (Tanker)

5

5

4

Light & Medium aircraft

13

9

10

Telecom satellites

5

3

1

Total

33

25

24

Airbus Defence and Space’s revenues amounted to € 11.3 billion
in 2022 (2021: € 10.2 billion). The increase is mainly driven byhigher volume in Military Aircraft and Eurodrone.

2.1.4.5 Other Income
and Other Expenses

Airbus Defence and Space’s revenues amounted to € 10.2 billion
in 2021 (2020: € 10.4 billion). The decrease was mainly driven by
Military Aircraft, partially offset by Space Systems.

Other income and other expenses typically include gains andlosses on disposals of investments, of fixed assets and income
from rental properties.

2.1.4.2 Cost of Sales
Cost of sales increased by 13.3% from € 42.5 billion for 2021
to € 48.2 billion for 2022. It mainly reflects the higher deliveries
and additional losses recognised on the A400M programmeof € 0.5 billion.
For 2021, cost of sales decreased by 3.9% from € 44.3 billion for2020 to € 42.5 billion for 2021. It mainly reflects in 2021 continued
cost containment and the release of COVID-related provisions
while 2020 was impacted by charges recorded in response to
the COVID-19 pandemic.

2.1.4.3 Selling and Administrative
Expenses
For 2022, selling and administrative expenses increased from€ 2.1 billion for 2021 to € 2.2 billion for 2022.
Selling and administrative expenses remained stable at€ 2.1 billion for both 2021 and 2020.

2.1.4.4 Research and Development
Expenses
Research and development expenses increased by 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”.
For 2021, research and development expenses decreasedby 3.9%, from € 2.9 billion for 2020 to € 2.7 billion for 2021.
In addition, an amount of € 152 million of development costs
has been capitalised, mainly linked to Defence and Space
programmes. See “– 2.1.2.2 Capitalised Development Costs”.

02

Other income and other expenses was € -119 million net ascompared to € 393 million net for 2021. The decrease includes
the impact of € -437 million partly offset by an insurance incomeof € 200 million both linked to the launch failure of the twosatellites 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.
For 2021, other income and other expenses was € 393 million
net as compared to € -1,326 million net for 2020. The increase
includes the gain of € 122 million for the divestment of one of its
sites in France to a 50% joint venture. In 2020, it included the
COVID-related restructuring provision.

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 10: Investments Accounted for under the
Equity Method” and “– Note 16: Share of Profit from Investments
Accounted for under the Equity Method and Other Income from
Investments”.
The Company recorded € 192 million in share of profit frominvestments accounted for under the equity method and otherincome from investments as compared to € 116 million for 2021
and € 152 million for 2020.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

2.1.4.7 Interest Result
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 17: Total
Financial Result”.
The Company recorded a net interest expense of € -232 million,
as compared to € -246 million for 2021 and € -271 million for 2020.

2.1.4.8 Other Financial Result

Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 18: Income Taxes”.

Other financial result includes the impact from the revaluationof financial instruments, the effect of foreign exchange valuationof monetary items and the unwinding of discounted provisions.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 17: Total Financial Result” and “– Note 26:
Other Financial Assets and Other Financial Liabilities”.

2.1.4.10 Non-Controlling Interests

Other financial result changed from € -69 million for 2021 to€ -18 million for 2022. This is mainly driven by the revaluation ofcertain equity investments and a net positive impact from therevaluation of financial instruments partly offset by the negative
impact from the foreign exchange valuation of monetary items.

2.1.4.11 Profit for the Period Attributable
to Equity Owners of the Parent(Net Income)For 2021, other financial result changed from € -349 million for2020 to € -69 million for 2021. This is driven by the positive impact
from the revaluation of certain equity investments, compensatedby a negative impact from the revaluation of financial instruments.
In 2020, it included the European governments’ refundable
advances impact related to the A350 programme.

2.1.4.9 Income Taxes
Income tax expense was € -939 million for 2022 as compared to€ -853 million for 2021, and corresponds to an effective income
tax rate of 19%. The higher tax expense was mainly driven byhigher net valuation allowances and lower positive impacts fromtax risk updates in 2022 as compared to 2021.

Profit (Loss) for the period attributable to equity ownersof the parent (Net income)Weighted average number of ordinary shares

Basic earnings per share172

For 2021, income tax expense was € -853 million as comparedto € -39 million for 2020, and corresponds to an effective income
tax rate of 17%. The higher tax expense was mainly driven by the
income before tax in 2021 of € 5,027 million as compared to theloss before tax in 2020 of € -1,130 million, partly compensatedby a net release of deferred tax asset impairments mainly due toan updated business outlook in 2021 in comparison to deferred
tax impairments in 2020. Management will continue to assess
its tax contingencies going forward, whose outcome could
result in further financial impacts.

Airbus / Universal Registration Document 2022

For 2022, loss for the period attributable to non-controllinginterests was € -111 million, as compared to loss of € -39 million
for 2021.

As a result of the factors discussed above, the Company
recorded a net income of € 4,247 million for 2022, as comparedto the net income of € 4,213 million for 2021.

2.1.4.12 Earnings per Share
Basic earnings were € 5.40 per share in 2022, as comparedto € 5.36 per share in 2021. The denominator used to
calculate earnings per share was 787,080,579 shares (2021:
785,326,074), reflecting the weighted average number of shares
outstanding during the year. In 2020, the Company reported
basic earnings of € -1.45 per share, based on a denominatorof 783,178,191 shares.

2022

2021

2020

€ 4,247 million€ 4,213 million€ (1,133) million

787,080,579

785,326,074

783,178,191€ 5.40€ 5.36€ (1.45)

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

Diluted earnings were € 5.39 per share in 2022, as compared to € 5.36 per share in 2021. The denominator used to calculate
diluted earnings per share was 787,753,485 (2021: 785,761,995). In 2022, LTIP 2022 plan has been excluded from the calculation
because of its antidilutive effect. As there was a net loss in 2020, the effect of potentially dilutive ordinary shares is anti-dilutive.

Profit (Loss) for the period attributable to equity owners of the parent(Net income), adjusted for diluted calculation
Weighted average number of ordinary shares (diluted)

2022

2021

2020

€ 4,247 million€ 4,213 million€ (1,133) million

787,753,485

785,761,995

783,178,191€ 5.39€ 5.36€ (1.45)

Diluted earnings per share02

For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 19: Earnings per Share”.

2.1.5 Changes in Total Equity (Including Non-Controlling Interests)
The following table sets forth a summary of the changes in total equity for the period 1 January 2022 through 31 December 2022.
(In € million)

Balance at 1 January 2022

9,486

Profit for the period

4,136

Other comprehensive income

237

thereof foreign currency translation adjustments

123

Capital increase

127

Cash distribution to Airbus SE shareholders / Dividends paid to noncontrolling interests(1,182)Equity transactions (IAS 27)

86

Share-based payment (IFRS 2)

115

Change in treasury shares(23)

Balance at 31 December 2022

12,982The number of shares issued as of 31 December 2022 was 788,205,008. Please refer to the “Airbus SE IFRS Consolidated Financial
Statements – IFRS Consolidated Statements of Changes in Equity for the years ended 31 December 2022 and 2021” and to the“Notes to the IFRS Consolidated Financial Statements – Note 35: Total Equity”.

2.1.5.1 Cash Flow Hedge Related Impact on AOCI
As of 31 December 2022, the notional amount of the Company’s
portfolio of outstanding cash flow hedges amounted to
US$ 76.4 billion, hedged against the euro and the pound sterling.
The year-end mark to market valuation of this portfolio resulted
in a negative pre-tax accumulated other comprehensive income(“AOCI”) valuation change of € -3.1 billion as of 31 December
2022 compared to 31 December 2021, based on a closing
rate of €/US$ 1.07 as compared to a negative pre-tax AOCI
valuation change of € -5.1 billion as of 31 December 2021
compared to 31 December 2020, based on a closing rate of €/US$ 1.13. For further information on the measurement of the fairvalues of financial instruments, please refer to the “Notes to the
IFRS Consolidated Financial Statements – Note 38: Financial
Instruments”.

Positive pre-tax mark to market values of cash flow hedges
are included in other financial assets, while negative pre-tax
mark to market values of cash flow hedges are included inother financial liabilities. Year-to-year changes in the mark tomarket value of effective cash flow hedges are recognised as
adjustments to AOCI. These adjustments to AOCI are net ofcorresponding changes to deferred tax assets (for cash flow
hedges with negative mark to market valuations) and deferred
tax liabilities (for cash flow hedges with positive mark to market
valuations).

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

The following graphic presents the cash flow hedge related movements in AOCI over the past three years. The mark to market ofthe backlog is not reflected in the accounts whereas the mark to market of the hedge book is reflected in AOCI.
CASH FLOW HEDGE RELATED MOVEMENTS IN AOCI IN € MILLION (BASED ON YEAR-END EXCHANGE RATES)(1)341
OCI Net Asset-4,779-7,882-86

Net Deferred Taxes

1,323
2,180

255
Net Equity OCI-3,456-5,70231 December 2020: US$ 1.23

31 December 2021: US$ 1.13

31 December 2022: US$ 1.07

(1) Cash flow hedge in AOCI in total equity (including non-controlling interests).

As a result of the negative change in the fair market valuation of the cash flow hedge portfolio in 2022, AOCI amounted to a net
liability of € -7.9 billion for 2022, as compared to a net liability of € -4.8 billion for 2021. The corresponding € +0.9 billion tax effectled to a net deferred tax asset of € 2.2 billion as of 31 December 2022 as compared to a net deferred tax asset of € 1.3 billion asof 31 December 2021.
For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 38.5: Financial Instruments– Derivative Financial Instruments and Hedge Accounting Disclosure”.

2.1.5.2 Foreign Currency Translation Adjustment Impact on AOCIThe € 123 million currency translation adjustment related impact on AOCI in 2022 mainly reflects the effect of the variations of the
US dollar and the pound sterling.

2.1.6 Liquidity and Capital Resources
The Company’s objective is to generate sufficient operating
cash flow in order to invest in its growth and future expansion,
honour the Company’s dividend policy and maintain financial
flexibility while retaining its credit rating and competitive accessto capital markets.
The Company defines its consolidated net cash position as
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 2022 was € 9.4 billion (€ 7.7 billion
as of 31 December 2021).
As of 31 December 2022, the total liquidity amounted to€ 31.6 billion and it was secured by the € 23.6 billion gross cash
and the € 8 billion sustainability-linked Revolving SyndicatedCredit Facility signed on 5 July 2022 which cancels and replaces

174

Airbus / Universal Registration Document 2022

the € 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 37: Net Cash” and “– Note 38.1: 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 36:
Capital Management”.

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

2.1.6.1 Cash Flows
The Company generally finances its manufacturing activities and product development programmes, and in particular the developmentof new commercial aircraft, through a combination of flows generated by operating activities, customer advances, risk-sharing
partnerships with subcontractors and European governments’ refundable advances. In addition, the Company’s military activities
benefit from government-financed research and development contracts. If necessary, the Company may raise funds in the capital
markets.

02

The following table sets forth the variation of the Company’s consolidated net cash position over the periods indicated.
(In € million)

2022

2021

2020

Net Cash position at 1 January(1)

7,740

4,724

12,770Gross Cash Flow from operations(2)

5,512

4,078

3,061

Changes in other operating assets and liabilities (working capital)(3)

1,421

984

(8,197)

Cash used for investing activities(4)(2,609)(1,551)(2,226)(2,464)(1,928)(1,759)

4,324

3,511

(7,362)

thereof industrial capital expenditures
Free Cash Flow(5)thereof M&A transactions

(210)

(32)

(551)

Free Cash Flow before M&A(6)

4,534

3,543

(6,811)

thereof Cash Flow from customer financing (net)

(146)

28

124

4,470

3,483

(7,486)

Free Cash Flow before M&A and customer financing

4,680

3,515

(6,935)

Cash distribution to shareholders / non-controlling interests(1,181)0

0

Contribution to plan assets of pension schemes

Free Cash Flow before customer financing

(601)

(533)

(314)

Changes in capital and non-controlling interests

145

138

89

Change in treasury shares / share buyback

(36)

(22)

(4)

Change in liability for puttable instruments

135

0

0

Others(8)(1,095)

(78)

(455)

Net Cash position at 31 December(1)

9,431

7,740

4,724

(7)

(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 (€ -44 million in 2022, € 27 million in 2021, € 70 million in 2020). 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 € -344 million in 2022, net investment of € -1,186 million in 2021, net disposal of € 6,303 million in 2020), 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) In 2020, thereof € 331 million contributions for retirement and deferred compensation plans.
(8) Including both fair value and foreign exchange impacts on securities and financing liabilities.

The net cash position as of 31 December 2022 was € 9.4 billion,
a 21.8% increase from 31 December 2021. 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 € 5.5 billion for2022, which mainly reflects EBIT Adjusted.

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 € 1.4 billion for 2022, versus a positive
impact of € 1.0 billion for 2021.
In 2022, the contributors to the positive working capital variationfrom 2021 to 2022 were the change in contract assets andcontract liabilities (€ +5.6 billion), mainly due to a positive phasing
impact from contracts assets and liabilities reflecting higher
advance payments and a positive impact from net payments
made to suppliers in anticipation, the change in trade liabilities(€ +3.1 billion), which reflected higher volume and payment terms

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175

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

increase linked to certain agreements reached with suppliers,
and the change in trade receivables (€ +0.5 billion). This waspartially offset by the change in inventories (€ -5.6 billion), whichreflected the inventory build up to support ramp up and thehigher advance payments made to suppliers, and the change
in other assets and liabilities (€ -2.3 billion).
European governments’ refundable advances. As of
31 December 2022, 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 2022 as compared to 2021.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 26: Other Financial Assets and Other Financial
Liabilities”.

Cash Used for Investing Activities
Management categorises cash used for investing activities into
three components: (i) industrial capital expenditure, (ii) M&A
transactions and (iii) others. Cash used for investing activities
amounted to € -2.6 billion for 2022, to € -1.6 billion for 2021, andto € -2.2 billion for 2020.

Free Cash Flow before M&AFree Cash Flow before mergers and acquisitions refers toFree Cash Flow adjusted for net proceeds from disposals andacquisitions. It is an alternative performance measure and key
indicator that reflects Free Cash Flow excluding those Cash
Flows resulting from acquisitions and disposals of businesses.

Free Cash Flow before M&A and Customer
Financing
Free Cash Flow before M&A and customer financing refers
to Free Cash Flow before mergers and acquisitions adjusted
for Cash Flow related to aircraft financing activities. It is analternative performance measure and indicator that may be
used occasionally by the Company in its financial guidance,
especially when there is higher uncertainty around customer
financing activities.

Cash Distribution to Shareholders /Non‑Controlling Interests

Capital expenditure. Capital expenditure includes productrelated development costs that are capitalised in accordancewith IAS 38. See “– 2.1.2.2 Capitalised development costs”.

For the fiscal year 2022, the Company’s Board of Directors
proposes a cash distribution to shareholders of € 1.80 per share.
The proposed payment date is 27 April 2023.

Capital expenditure (investments in property, plant andequipment and intangible assets) amounted to € -2.5 billion for2022, € -1.9 billion for 2021 and € -1.8 billion for 2020.

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.

In 2020, the decrease of capital expenditure reflected theprioritisation of projects.
M&A transactions. In 2022, the € -0.2 billion figure mostly
relates to the acquisition of 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.
In 2020, the € -0.6 billion figure mostly relates to the acquisitionof Bombardier’s additional 29.64% shares in Airbus Canada.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 9: 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 9: Acquisitions and Disposals”.

Free Cash Flow
The Company defines Free Cash Flow as the sum of (i) cash
provided by operating activities and (ii) cash used for investing
activities, minus (iii) change of securities, (iv) contribution toplan assets of pension schemes, (v) realised foreign exchange
results on treasury swaps and (vi) Airbus Bank activities. It is analternative performance measure and key indicator which allows
the Company to measure the amount of Cash Flow generated

176

from operations after cash used in investing activities. As a resultof the factors discussed above, Free Cash Flow amounted to€ 4.3 billion for 2022 as compared to € 3.5 billion for 2021 and€ -7.4 billion for 2020.

Airbus / Universal Registration Document 2022

Given the global business environment, there was no cash
distribution to shareholders proposed for the fiscal year 2020.
This decision aimed at strengthening the Company’s financial
resilience by protecting the net cash position and supporting its
ability to adapt as the situation evolved. On 23 March 2020, theCompany decided to withdraw the € -1.3 billion cash distribution
to shareholders initially proposed for the fiscal year 2019, in
response to the COVID-19 pandemic. Consequently, there wasno cash distribution to shareholders in 2020.

Contribution to Plan Assets of Pension
Schemes
The cash outflows of € -0.6 billion, € -0.5 billion and € -0.3 billion
in 2022, 2021 and 2020, 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 32: Post-Employment
Benefits”.

Change in Treasury Shares / Share Buyback
Change in treasury shares amounted to € -36 million for 2022,
to € -22 million for 2021 and to € -4 million for 2020. As of
31 December 2022 and 2021, the Company held 647,500 and
454,735 treasury shares, respectively.

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

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 38.1: Financial
Instruments – Financial Risk Management”.

The Company has a partially automated cross-border anddomestic cash pooling system in all countries with majorgroup presence and whenever country regulations allow suchpractice (among others, this includes mainly France, Germany,
Spain, the Netherlands, the UK and the US). The cash poolingsystem enhances management’s ability to assess reliably andinstantaneously the cash position of each subsidiary within
the Company and enables management to allocate cash optimallywithin the Company depending upon shifting short-term needs.

02

2.1.6.3 Financing Liabilities
The outstanding balance of the Company’s consolidated financing
liabilities decreased from € 15.0 billion as of 31 December 2021
to € 12.8 billion as of 31 December 2022. The decrease is mainly
due to the decrease in the value of bonds linked to higher interest
rates and a € 1 billion bond buyback performed in June 2022.

For further information, please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 37.3: Net Cash –Financing Liabilities”.

2.1.6.4 Sales Financing
The Company favours cash sales and encourages independent
financing by customers, in order to avoid retaining credit orasset risk in relation to delivered products. However, in orderto support product sales, primarily at Airbus and Airbus
Helicopters, the Company may agree to participate in thefinancing of customers, on a case-by-case basis, directly or
through guarantees provided to third parties.
The financial markets remain unpredictable, which may cause
the Company to increase its future outlays in connection withcustomer financing of commercial aircraft and helicopters,

mostly through finance leases and secured loans and if deemednecessary through operating lease structures. Nevertheless,
the Company intends to keep the amount as low as possible.
Dedicated and experienced teams structure such financing
transactions and closely monitor total finance and asset value
exposure of the Company and its evolution in terms of quality,
volume and intensity of cash requirements. The Company
aims to structure all financing it provides to customers in linewith market-standard contractual terms so as to facilitate any
subsequent sale or reduction of such exposure.

Evolution of Airbus Gross Exposure during 2022 in US$ million

31 December 2021

413

Additions

Disposals

Amortisation

293

-352

-22

31 December 2022

332

Airbus gross customer financing exposure as of 31 December
2022 is distributed directly over 17 aircraft, operated byapproximately five airlines. In addition, the level of exposure
may include other aircraft-related assets, such as spare parts.

Airbus Helicopters’ gross customer financing exposureamounted to € 33 million as of 31 December 2022. This exposure
is distributed over 12 helicopters, operated by approximately
six companies.

Over the last three years (2020 to 2022), 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, i.e.
nine aircraft financed per year out of 613 deliveries per year on
average.

For further information, please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 28: Sales Financing
Transactions”.

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177

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.2 Financial Statements

2.2 Financial Statements
Copies of the AFM-filed documents are available free of charge
upon request in English at the registered office of the Company
and on www.airbus.com (Investors > Financial Results & Annual
Reports).

The Company’s IFRS Consolidated Financial Statements forthe year ended 31 December 2022, together with the related
notes, appendices and independent auditors’ report, shall bedeemed to be incorporated in and form part of this Universal
Registration Document.

The above-mentioned Financial Statements are also available
in English for inspection at the Chamber of Commerce of The
Hague.

In addition, the following documents shall be deemed to beincorporated by reference in and form part of this Universal
Registration Document:–– 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.
–– The IFRS Consolidated Financial Statements for the year
ended 31 December 2020, together with the related notes,
appendices and independent auditors’ report, as incorporated
by reference in the Registration Document filed in English with
the AFM on 26 March 2021 without prior approval and filed
in English with the Chamber of Commerce of The Hague.

2.3 Statutory Auditor Fees
Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 40: Auditor Fees”.

2.4 Information Regarding the Statutory Auditors
Ernst & Young Accountants LLP
Boompjes 258 – 3011 XZ Rotterdam
Postbus 488 – 3000 AL Rotterdam
The Netherlands
Represented by N.M. Pul

Date of first appointment

Expiration of current term of office(1)28 April 201619 April 2023

(1) A resolution will be submitted to the Annual General Meeting of Shareholders in 2023, in order to appoint Ernst & Young Accountants LLP as the Company’s auditors for the 2023
financial year.

Ernst & Young Accountants LLP has a licence from the AFM to perform statutory audits for Public Interest Entities and its
representative is member of the NBA (Koninklijke Nederlandse Beroepsorganisatie van Accountants – the Royal Netherlands Instituteof Chartered Accountants). The NBA is the professional body for accountants in the Netherlands.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /02

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Chapter

180

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03
General Descriptionof the Company
and its Share Capital
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.1.7
3.1.8
3.1.9
3.1.103.1.11
3.1.12
3.1.13General Description of the Company
Commercial and Corporate Names, Seat and Registered Office
Legal Form
Governing Laws and Disclosures
Date of Incorporation and Duration of the Company
Objects of the Company
Commercial and Companies RegistryInspection of Corporate Documents
Financial Year
Allocation and Distribution of Income
General Meetings
Disclosure of Holdings
Mandatory Disposal
Mandatory Offers

182
182
182
182
183
184
184
184
184
184
185
186
187
188

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

189
189
189
189
190
190

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 2022
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

191
191
192
195
195
195
195
197

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

199
199
199
199
199

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181

3. General Description of the Company and its Share Capital /3.1 General Description of the Company

3.1 General Description of the Company
3.1.1 Commercial and Corporate Names, Seat and Registered OfficeCommercial Name: Airbus

Seat (statutaire zetel): Amsterdam

Statutory Name: Airbus SE

Tel: +31 (0)71 5245 600

Registered Office:Mendelweg 30, 2333 CS Leiden, The Netherlands

Fax: +31 (0)71 5232 807

3.1.2 Legal Form
The Company is a European public company (Societas Europaea), with its corporate seat in Amsterdam, the Netherlands andregistered with the Dutch Commercial Register (Handelsregister) under number 24288945. The Company’s legal identifier (LEI) is
MIN079WLOO247M1IL051. As a company operating worldwide, the Company is subject to, and operates under, the laws of eachcountry in which it conducts business.

3.1.3 Governing Laws and Disclosures
The Company is governed by the laws of the Netherlands(in particular Book 2 of the Dutch Civil Code and the Dutch
Corporate Governance Code) and by its Articles of Association(the “Articles of Association”).
The Company is subject to various legal provisions of the
Dutch Financial Supervision Act (Wet op het financieel toezicht)(the “WFT”). In addition, given the fact that its shares are admitted
for trading on a regulated market in France, Germany and Spain,
the Company is subject to certain laws and regulations in thesethree jurisdictions. A summary of the main regulations applicableto the Company in relation to information to be made public inthese three jurisdictions, as well as the Netherlands, is set out
below.

3.1.3.1 Periodic Disclosure Obligations
Pursuant to Directive 2004/109/EC on the harmonisation oftransparency requirements in relation to information about
issuers whose securities are admitted to trading on a regulated
market (as amended, the “Transparency Directive”), theCompany is required to disclose certain periodic and ongoing
information (the “Regulated Information”).
Pursuant to the Transparency Directive, the Company must
disseminate such Regulated Information throughout theEuropean Community in a manner ensuring fast access to suchinformation on a non-discriminatory basis. For this purpose,
the Company may use a professional service provider (wire). In
addition, Regulated Information must be filed at the same timewith the relevant competent market authority. The Company
must then ensure that Regulated Information remains publicly
available for at least ten years.

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Airbus / Universal Registration Document 2022

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

03

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.

3.1.4 Date of Incorporation and Duration of the Company
The Company was incorporated on 29 December 1998 for an unlimited duration.

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183

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).

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.

3.1.8 Financial YearThe financial year of the Company starts on 1 January and ends on 31 December of each year.

3.1.9 Allocation and Distribution of Income
3.1.9.1 Dividends
The Board of Directors shall determine which part of the profits
of the Company shall be attributed to reserves. The remaining
distributable profit shall be at the disposal of the shareholders’meeting.
The shareholders’ meeting may resolve (if so proposed by the
Board of Directors) that all or part of a distribution on shares shallbe paid in Airbus shares or in the form of assets as opposed
to cash.
The declaration of a dividend, an interim dividend or another
distribution to the shareholders shall be made known to themwithin seven days after such declaration. Declared dividends,
interim dividends or other distributions shall be payable on suchdate(s) as determined by the Board of Directors.

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Airbus / Universal Registration Document 2022

Dividends, interim dividends and other distributions on sharesshall be paid by bank transfer to the bank or giro accounts
designated in writing to the Company by, or on behalf of,shareholders at the latest 14 days after their announcement.
The persons entitled to a dividend, interim dividend or other
distribution shall be the shareholders as at a record date to be
determined by the Board of Directors for that purpose, whichdate may not be a date prior to the date on which such dividend,interim dividend or other distribution is declared.

3.1.9.2 Liquidation
In the event of the dissolution and liquidation of the Company,
the assets remaining after payment of all debts and liquidation
expenses shall be distributed amongst the holders of the sharesin proportion to their shareholdings.

3. General Description of the Company and its Share Capital /3.1 General Description of the Company

3.1.10 General Meetings
3.1.10.1 Calling of Meetings
Shareholders’ meetings are held as often as the Boardof Directors deems necessary, when required under the Dutch
Civil Code (as a result of a decrease of the Company’s equity toor below half of the Company’s paid up and called up capital)
or upon the request of shareholders holding, individually or
together, at least 10% of the total issued share capital of theCompany. The AGM of Shareholders of the Company is held
within six months of the end of the financial year.
The Board of Directors must give notice of shareholders’ meetings
through publication of a notice on the Company’s website (www.
airbus.com), which will be directly and permanently accessible
until the shareholders’ meeting. The Company must comply withthe statutory rules providing for a minimum convening period,
which currently require at least 42 days of notice. The convening
notice must state the items required under Dutch law.
Shareholders’ meetings are held in Amsterdam, The Hague,
Rotterdam or Haarlemmermeer (Schiphol Airport). The Boardof Directors may decide that shareholders’ meetings may beattended by means of electronic or video communication devices
from the locations mentioned in the convening notice.
The Board of Directors must announce the date of the AGM of
Shareholders at least ten weeks before the Meeting. A matter
which one or more shareholders or other parties with meetingrights collectively representing at least the statutory threshold(which is currently 3% of the issued share capital) have requested
in writing to be put on the agenda for a General Meeting of
Shareholders shall be included in the convening notice or shallbe announced in the same fashion, if the substantiated request
or a proposal for a resolution is received by the Company no later
than the 60th day before the general meeting. When exercising
the right to put a matter on the agenda for a General Meeting of
Shareholders, the respective shareholder or shareholders are
obliged to disclose their full economic interest to the Company.
The Company must publish such disclosure on its website.
A request as referred to in the preceding paragraph may only
be made in writing. The Board of Directors can decide that in“writing” is understood to include a request that is recorded
electronically.

3.1.10.2 Right to Attend Shareholders’Meetings
Each holder of one or more shares may attend shareholders’meetings, either in person or by written proxy, speak andvote according to the Articles of Association. See “– 3.1.10.4
Conditions of Exercise of Right to Vote”. However, under (andsubject to the terms of) the Articles of Association these rights
may be suspended under certain circumstances. A shareholder,or another person who has the right to attend a shareholders’meeting, can be represented by more than one proxy holder,provided that only one proxy holder can exercise the rights
attached to each share.

The persons who have the right to attend and vote at shareholders’meetings are those who are on record in a register designated forthat purpose by the Board of Directors on the registration datereferred to in the Dutch Civil Code which is currently the 28th dayprior to the day of the shareholders’ meeting (the “Registration
Date”), irrespective of who may be entitled to the shares at thetime of that meeting.
As a prerequisite to attending the shareholders’ meeting and to
casting votes, the Company, or alternatively an entity or person
so designated by the Company, should be notified in writingby each holder of one or more shares and those who derive
the aforementioned rights from these shares, not earlier thanthe Registration Date, of the intention to attend the meeting inaccordance with the relevant convening notice.

03

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 written notice to the AFM by means of astandard form, if, as a result of such acquisition or disposal, thepercentage of capital interest or voting rights held by such person
meets, exceeds or falls below the following thresholds: 3%, 5%,10%, 15%, 20%, 25%, 30%, 40%, 50%, 60%, 75% and 95%.
Any person whose interest in the capital, voting rights or grossshort position in the Company meets, exceeds or falls below one
or several of the above-mentioned thresholds due to a change in
the Company’s outstanding capital, or in voting rights attachedto the shares as notified to the AFM by the Company, should
notify the AFM no later than the fourth trading day after the AFM
has published the notification by the Company. Among otherthings, the Company is required to notify the AFM immediately
if its outstanding share capital or voting rights have changed by
1% or more since the Company’s previous notification. Additional
disclosure and/or publication obligations apply under European
regulations for net short positions in respect of the Company.
If at the end of a calendar year the composition of a shareholder’sholding differs from its previous disclosure as a result of theconversion of certain types of securities or following the exerciseof rights to acquire voting rights, this shareholder must thenprovide an update of its previous disclosure within four weeksof the end of each calendar year by giving written notice thereof
to the AFM. The disclosures are published by the AFM on its
website (www.afm.nl).
Pursuant to the Articles of Association, shareholders must notify
the Company when meeting or crossing the thresholds above.
The Articles of Association also contain disclosure obligations
for shareholders that apply when their interests in the Company
reach or cross certain thresholds.

Under the Articles of Association, the disclosure obligationsof shareholders are enhanced in several ways beyond what isrequired under the WFT, including by requiring the disclosureof additional information, tying the disclosure obligations to abroader range of interests in the capital or voting rights of theCompany and by requiring a shareholder to notify the Company if
his or her interest reaches, exceeds or falls below the Mandatory
Disposal Threshold (as defined below) or if the interest of ashareholder (alone or a member of a concert) which is above
such Mandatory Disposal Threshold changes in its composition,
nature and/or size.
Failure to comply with the legal obligation to notify a change inshareholding under the WFT is a criminal offence punishable bycriminal and administrative penalties as well as civil law penalties,
including the suspension of voting rights. Failure to comply witha notification under the Articles of Association can lead to asuspension of meeting and voting rights.

Disclosure Requirements
for Members of the Board of Directors
and the Executive Committee
Disclosure of Holdings
In addition to the requirements under the WFT regarding thedisclosure of holdings in case the specified thresholds are met
or exceeded or if holdings fall below these thresholds, Membersof the Board of Directors must report to the AFM the numberof shares in the Company and attached voting rights(1) held byhim or an entity controlled by him, within two weeks following
his appointment as Director, whether or not such shareholdings
meet or exceed any of the specified thresholds. Subsequently,
any Member of the Board of Directors is required to notify the
AFM of any changes in such number of shares in the Company
and attached voting rights.

(1) In this context, the term “shares” also includes for example depositary receipts for shares and rights resulting from an agreement to acquire shares or depositary
receipts for shares, specifically call options, warrants, and convertible 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.

03

Pursuant to the Market Abuse Regulation, the Company must
maintain a list of all persons working for it by virtue of a labour
relationship or otherwise, who may have access to inside
information.

3.1.12 Mandatory Disposal
3.1.12.1 Notification Requirements andMandatory Disposal Threshold
Restricting Ownership to 15%
Under the Articles of Association, each shareholder must notify
the Company when it (or another party in respect of its interest in
the Company) must make a notification to the AFM of a substantial
interest or short position with respect to the Company, when its
interest (alone or with concert parties) reaches or crosses the
Mandatory Disposal Threshold (as defined below) or subject tocertain conditions and exemptions, when changes occur in thecomposition, nature and/or size of any interest held by it or by its
concert parties in excess of the Mandatory Disposal Threshold(as defined below). Failure to comply with these obligations
may, subject to a prior notification by the Company, result in thesuspension of voting and attendance rights until the shareholder
has complied with its obligations.
The Articles of Association prohibit any shareholder fromholding an interest of more than 15% of the share capital or
voting rights of the Company, acting alone or in concert withothers (the “Mandatory Disposal Threshold”). An interest(“Interest”) includes not only shares and voting rights, butalso other instruments that cause shares or voting rights to
be deemed to be at someone’s disposal pursuant to the WFT,
and must be notified to the Dutch regulator, the AFM, if certain
thresholds are reached or crossed. Any shareholder having aninterest of more than the Mandatory Disposal Threshold must
reduce its interest below the Mandatory Disposal Threshold, forinstance by disposing of its Excess Shares, within two weeks
after such notification by the Company. Upon receipt of such
notification, the voting, attendance and dividend rights attachedto the Excess Shares shall be suspended. The same applies toconcerts of shareholders and other persons who together holdan interest exceeding the Mandatory Disposal Threshold. Shouldsuch shareholder or concert not comply with not exceeding
the 15% Mandatory Disposal Threshold by the end of such
two-week period, the voting, attendance and dividend rights
attached to all shares held by such shareholder or concert shallbe suspended, and their Excess Shares would be transferred toa Dutch law foundation (“Stichting”), which can, and eventuallymust, dispose of them. The suspension of shareholder rights
described above shall be lifted once a shareholder or concert
complies with its obligations under the Articles of Association.
The Dutch law foundation would issue depositary receipts to therelevant shareholder in return for the Excess Shares transferredto the foundation, which would entitle the relevant shareholder tothe economic rights, but not the voting rights, attached to such
Company shares. The foundation’s Articles of Association andthe terms of administration governing the relationship between
the foundation and the depositary receipt holders provide, interalia, that:–– the Board Members of the foundation must be independent
from the Company, any grandfathered persons and theiraffiliates (see “– 3.1.12.2 Exemptions from Mandatory Disposal
Threshold”) and any holder of depositary receipts and theiraffiliates (there is an agreement under which the Company will,inter alia, cover the foundation’s expenses and indemnify the
Board Members against liability);–– the Board Members are appointed (except for the initial Board
Members who were appointed at incorporation) and dismissedby the Management Board of the foundation (the Company
may however appoint one Board Member in a situation where
there are no foundation Board Members);

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3. General Description of the Company and its Share Capital /3.1 General Description of the Company–– the foundation has no discretion as to the exercise of voting
rights attached to any of the Company shares held by it andwill in a mechanical manner vote to reflect the outcome of thevotes cast (or not cast) by the other shareholders, and thefoundation will distribute any dividends or other distributions
it receives from the Company to the holders of depositary
receipts; and–– no transfer of a depositary receipt can be made without theprior written approval of the foundation’s Board.
For any shareholder or concert, the term “Excess Shares”,
as used above, refers to such number of shares comprisedin the interest of such shareholder or concert exceeding the
Mandatory Disposal Threshold which is the lesser of: (i) the
shares held by such shareholder or concert which represent a
percentage of the Company’s issued share capital that is equal
to the percentage with which the foregoing interest exceeds the
Mandatory Disposal Threshold; and (ii) all shares held by such
person or concert.
This restriction is included in the Articles of Association to reflect
the Company’s further normalised governance going forward,
aiming at a substantial increase of the free float and to safeguard
the interests of the Company and its stakeholders (including all
its shareholders), by limiting the possibilities of influence above
the level of the Mandatory Disposal Threshold or takeovers otherthan a public takeover offer resulting in a minimum acceptanceof 80% of the share capital referred to below.

3.1.12.2 Exemptions from Mandatory
Disposal Threshold
The restrictions pursuant to the Mandatory Disposal Thresholdunder the Articles of Association do not apply to a person
who has made a public offer with at least an 80% acceptance(including any Airbus shares already held by such person).
These restrictions also have certain grandfathering exemptions
for the benefit of shareholders and concerts holding interests
exceeding the Mandatory Disposal Threshold on 2 April 2013
(the “Exemption Date”), which is the date of first implementationof the Mandatory Disposal Threshold.
Different grandfathering regimes apply to such shareholders andconcerts, depending on the interests and the nature thereof heldby each such shareholder or concert on the Exemption Date.
The Company has confirmed that: (i) the specific exemption in
Article 16.1.b of the Articles of Association applies to Société deGestion de Participations Aéronautiques (“Sogepa”), as it held
more than 15% of the outstanding Company voting rights andshares including the legal and economic ownership thereof on the
Exemption Date; and (ii) the specific exemption in Article 16.1.cof the Articles of Association applies to the concert among
Sogepa, Gesellschaft zur Beteiligungsverwaltung GZBV mbH& Co. KG (“GZBV”) and Sociedad Estatal de Participaciones
Industriales (“SEPI”), as they held more than 15% of theoutstanding Company voting rights and shares including thelegal and economic ownership thereof on the Exemption Date.

3.1.13 Mandatory Offers
3.1.13.1 Takeover Directive
The Directive 2004/25/EC on takeover bids (the “Takeover
Directive”) sets forth the principles governing the allocation oflaws applicable to the Company in the context of a takeover bid
for the shares of the Company. The Takeover Directive refers to
the rules of the Netherlands and the rules of the European Union
Member State of the competent authority that must be chosen
by the Company from among the various market authorities
supervising the markets where its shares are listed.
For the Company, matters relating to, inter alia, the consideration
offered in the case of a bid, in particular the price, and mattersrelating to the bid procedure, in particular the information on
the offeror’s decision to make a bid, the contents of the offer
document and the disclosure of the bid, shall be determinedby the laws of the European Union Member State having thecompetent authority, which will be selected by the Company
at a future date.
Matters relating to the information to be provided to theemployees of the Company and matters relating to company law,in particular the percentage of voting rights which confers control

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and any derogation from the obligation to launch a bid, theconditions under which the Board of Directors of the Company
may undertake any action which might result in the frustrationof the bid, the applicable rules and the competent authority will
be governed by Dutch law (see “– 3.1.13.2 Dutch Law”).

3.1.13.2 Dutch Law
In accordance with the Dutch act implementing the Takeover
Directive (the “Takeover Act”), shareholders are required tomake a public offer for all issued and outstanding shares in
the Company’s share capital if they – individually or acting inconcert (as such term is defined in the Takeover Act), directly
or indirectly – have 30% or more of the voting rights (significant
control) in the Company. In addition to the other available
exemptions that are provided under Dutch law, the requirement
to make a public offer does not apply to persons, who at thetime the Takeover Act came into force, already held – individuallyor acting in concert – 30% or more of the voting rights in the
Company. In the case of such a concert, a new Member of theconcert can be exempted if it satisfies certain conditions.

3. General Description of the Company and its Share Capital /3.2 General Description of the Share Capital

3.2 General Description of the Share Capital
3.2.1 Issued Share Capital
As of 31 December 2022, the Company’s issued share capital amounted to € 788,205,008, consisting of 788,205,008 fully paid-up
shares of a nominal value of € 1 each.

03

3.2.2 Authorised Share Capital
As of 31 December 2022, the Company’s authorised share capital amounted to € 3 billion, consisting of 3 billion shares of € 1 each.

3.2.3 Modification of Share Capital or Rights Attached to the Shares
The shareholders’ meeting has the power to authorise theissuance of shares. The shareholders’ meeting may also
authorise the Board of Directors, for a period of no more than five
years, to issue shares and to determine the terms and conditionsof share issuances.
Holders of shares have a pre-emptive right to subscribe for any
newly issued shares in proportion to the aggregate nominal
value of shares held by them, except for (i) shares issued forconsideration other than cash, (ii) shares issued to employeesof Airbus and (iii) shares issued pursuant to a previously granted
right to subscribe for those shares. For the contractual position
as to pre-emption rights, see “– 3.3.2 Relationships with Principal
Shareholders”.
The shareholders’ meeting also has the power to limit or to
exclude pre-emption rights in connection with new issuances ofshares, and may authorise the Board of Directors for a period of
no more than five years, to limit or to exclude pre-emption rights.
All resolutions in this context must be approved by a two-thirds
majority of the votes cast during the shareholders’ meeting in
the case where less than half of the capital issued is present or
represented at said meeting.
However, the Articles of Association provide that the shareholders’meeting is not authorised to pass any shareholders’ resolution
to issue shares or to grant rights to subscribe for shares if theaggregate issue price is in excess of € 500 million per shareissuance, and no preferential subscription rights exist in respect
thereof (by virtue of Dutch law, or because they have been
excluded by the competent corporate body). The same limitation
applies if the shareholders’ meeting wishes to designate theBoard of Directors to have the authority to resolve on such shareissuance or granting of rights. These limitations in the Articles of
Association can only be changed by the shareholders’ meetingwith a 75% voting majority.
Pursuant to the shareholders’ resolutions adopted at the AGM
held on 12 April 2022, the powers to issue shares and to grantrights to subscribe for shares and to limit or exclude preferential
subscription rights for existing shareholders have been delegatedto the Board of Directors for the purpose of:

2. funding the Company and any of its subsidiaries, provided
that such powers shall be limited to 0.3% of the Company’s
authorised share capital.
Such powers have been granted for a period expiring at the AGM
to be held in 2023, and shall not extend to issuing shares or
granting rights to subscribe for shares if (i) there is no preferential
subscription right (by virtue of Dutch law, or because it has been
excluded by means of a resolution of the competent corporatebody) and (ii) it concerns an aggregate issue price in excess of€ 500 million per share issuance.
At the AGM held on 12 April 2022, the Board of Directors was
authorised, for a period of 18 months from the date of such AGM,
to repurchase shares of the Company, by any means, including
derivative products, on any stock exchange or otherwise, as longas, upon such repurchase, the Company would not hold morethan 10% of the Company’s issued share capital, and at a priceper share not less than the nominal value and not more than thehigher of the price of the last independent trade and the highest
current independent bid on the trading venues of the regulated
market of the country in which the purchase is carried out.
The shareholders’ meeting may reduce the issued share capitalby cancellation of shares, or by reducing the nominal value of theshares by means of an amendment to the Articles of Association.
The cancellation of shares requires the approval of a two-thirds
majority of the votes cast during the shareholders’ meeting in
the case where less than half of the capital issued is present or
represented at said meeting; the reduction of nominal value bymeans of an amendment to the Articles of Association requires
the approval of a two-thirds majority of the votes cast during theshareholders’ meeting (unless the amendment to the Articles
of Association also concerns an amendment which under the
Articles of Association requires a 75% voting majority).
At the AGM held on 12 April 2022, the Board of Directors andthe Chief Executive Officer were authorised, with powers of
substitution, to implement a cancellation of shares held or
repurchased by the Company, including the authorisation
to establish the exact number of the relevant shares thus
repurchased to be cancelled.

1. Employee Share Ownership Plans and share-related Long-Term
Incentive Plans, provided that such powers shall be limited to
0.14% of the Company’s authorised share capital; andAirbus / Universal Registration Document 2022

189

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 to the
IFRS Consolidated Financial Statements – Note 37.3: Financing Liabilities”).

3.2.5 Changes in the Issued Share Capital
Nominal
Numbervalue of sharesperissued /share cancelled

Date

Nature of Transaction

20 June 2013

Cancellation of shares upon authorisation
granted by the Extraordinary General Meeting
held on 27 March 2013

€ 1 47,648,691

29 July 2013

Issue of shares for the purposeof an employee offering

Total number
of issued
shares after(1)
Premiumtransaction

Total issued
capital after
transaction-

779,719,254€ 779,719,254€1

2,113,245€ 57,580,650

781,832,499€ 781,832,499

Cancellation of shares upon authorisation
granted by the Extraordinary General
27 September 2013 Meeting held on 27 March 2013

€1

3,099,657-

778,732,842€ 778,732,842

Cancellation of shares upon authorisation
granted by the Annual Shareholders’
27 September 2013 Meeting held on 29 May 2013

€1

2,448,884-

776,283,958€ 776,283,958

In 2013

Issue of shares following exercise of options
granted to employees(2)€16,873,677€ 176,017,918

783,157,635€ 783,157,635

In 2014Issue of shares following exercise of options
granted to employees(2)€11,871,419€ 50,619,684

784,780,585€ 784,780,585

In 2015

Cancellation of shares upon authorisation
granted by the Annual Shareholders’Meeting held on 27 May 2015

€12,885,243-

785,333,784€ 785,333,784

In 2015

Issue of shares following exercise of options
granted to employees(2)€11,910,428-

785,344,784€ 785,344,784

In 2016

Cancellation of treasury shares€1

14,131,131-

771,213,653€ 771,213,653

In 2016

Issues of shares for the purposeof an employee offering€1

1,474,716-

772,688,369€ 772,688,369

In 2016

Issue of shares following exercise of options
granted to employees(2)€1

224,500-

772,912,869€ 772,912,869

In 2017

Issues of shares for the purposeof an employee offering€1

1,643,193-

774,556,062€ 774,556,062

In 2017

Issues of shares for the purposeof an employee offering€1

1,643,193-

774,556,062€ 774,556,062

In 2018

Issues of shares for the purposeof an employee offering€1

1,811,819-

776,367,881€ 776,367,881

In 2019

Issues of shares for the purposeof an employee offering€1

1,784,292-

778,152,173€ 778,152,173

In 2019

Issue of shares under the convertible bond€1

5,020,942-

783,173,115€ 783,173,115

In 2020

Issue of shares for the purposeof an employee offering€1

976,155-

784,149,270€ 784,149,270

In 2021

Issue of shares for the purposeof an employee offering€1

1,934,420-

786,083,690€ 786,083,690

In 2022

Issue of shares for the purposeof an employee offering€12,121,318-

788,205,008€ 788,205,008(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 2022, a total number of 2,121,318 new shares were issued, all of which were issued in the framework of the ESOPand its sub-plan SIP.
During 2022 (i) Airbus SE repurchased 325,953 shares and (ii) none of the treasury shares were cancelled. As of 31 December
2022, Airbus SE held 647,500 treasury shares.

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3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

3.3 Shareholdings and Voting Rights
3.3.1 Shareholding Structure at the End of 2022
As of 31 December 2022, the French State held 10.89% of theoutstanding Company shares through Sogepa, the German
State held 10.87% through GZBV, a subsidiary of Kreditanstalt fürWiederaufbau (“KfW”), a public law institution serving domestic
and international policy objectives of the Government of theFederal Republic of Germany, and the Spanish State held 4.10%
through SEPI. The public (including the Company’s employees)
and the Company held, respectively, 74.06% and 0.08% of theCompany’s share capital.

03

The diagram below shows the ownership structure of the Company as of 31 December 2022 (% of capital and of voting rights (inparentheses)). See “– Corporate Governance – 4.3.3 Long-Term Incentive Plans”.
Ownership Structure of Airbus SE as of 31 December 2022
FRENCHSTATEGERMANSTATE

SPANISHSTATEOTHER GERMAN
PUBLIC ENTITIES

15.69%PUBLIC

KfW

84.31%

SOGEPASEPIGZBV(2)

10.89%(10.89%)4.10%(4.10%)

10.87%(10.88%)74.06%(1)(74.05%)

Share subject to Shareholders’ Agreement

AIRBUS SE(1) Including shares held by the Company itself (0.08%).
(2) KfW & other German public entities.

According to the AFM register on substantial holdings, the below
listed entities have notified the AFM of their substantial interestin the Company as per 31 March 2023:–– BlackRock, Inc. (3.60% of the share capital and 4.43% of thevoting rights);–– Capital Research and Management Company (9.90% of thevoting rights);–– EuroPacific Growth Fund (2.96% of the share capital and
2.97% of the voting rights);–– the Goldman Sachs Group Inc. (2.29% of the share capitaland 2.29% of the voting rights);–– TCI Fund Management Ltd. (3.02% of the share capital and
3.02% of the voting rights).

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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 2022, the Company held, directly or indirectly
through another company in which the Company holds directly or
indirectly more than 50% of the share capital, 647,500 of its own
shares, equal to 0.08% 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 2022, 2.13% 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 2.21% as of 31 December 2021.

3.3.2 Relationships with Principal Shareholders
In 2013, GZBV, Sogepa and SEPI entered into a shareholders’agreement (the “Shareholders’ Agreement”). The Shareholders’
Agreement, further details of which are set out below, does notgive the parties to it any rights to designate Members of theBoard of Directors or management team or to participate in thegovernance of the Company. The Company has also enteredinto state security agreements with each of the French State andGerman State, which are also described in more detail below.

3.3.2.1 Corporate Governance
Arrangements
Corporate governance arrangements of the Company were
substantially changed in 2013, resulting in changes in thecomposition of the Board of Directors and its internal rules,
as well as amendments to the Articles of Association of theCompany. These changes were intended to further normalise
and simplify the Company’s corporate governance, reflecting
an emphasis on best corporate governance practices and theabsence of a controlling shareholder group. Changes to theCompany’s corporate governance arrangements in the Articles
of Association, included (i) disclosure obligations for shareholders
that apply when their interests in the Company reach or crosscertain thresholds and (ii) ownership restrictions prohibiting any
shareholder from holding an interest of more than 15% of theshare capital or voting rights of the Company, acting alone 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.

Individual Grandfathering Rights
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 grandfathered

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in accordance with the Articles of Association if the new concert
with respect to the Company (the “Concert”) is subsequently
terminated (for instance by terminating the Shareholders’
Agreement) or if it exits the Concert.

Loss of Individual Grandfathering Rights
A Party holding Individual Grandfathering Rights as well as anyof its affiliates who are grandfathered pursuant to Article 16.1.b inconjunction with Article 16.3 of the Articles of Association (suchaffiliates holding “Derived Grandfathering Rights”, and theIndividual Grandfathering Rights and the Derived Grandfathering
Rights, together, the “Grandfathering Rights”) shall all nolonger be entitled to exercise their Grandfathering Rights inthe 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
Expert Adjudicators in order to settle any dispute between theParties arising out of or in connection with the post-concert
Grandfathering Agreement.

3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

The Company will not incur any liability to any of the Parties bytaking such actions following receipt of any such joint instruction
or binding advice and the Company will not be required tointerpret the post-concert Grandfathering Agreement or any
such joint instruction or binding advice.

Unless Sogepa and GZBV agree to vote in favour together ofsuch draft resolution, the shareholders shall vote against suchdraft resolution. If Sogepa and GZBV reach a mutual agreementon such draft resolution, the shareholders shall vote in favour ofsuch draft resolution.

Notwithstanding the description under “Various provisions– Jurisdiction” below, the courts of the Netherlands will haveexclusive jurisdiction to resolve any dispute, controversy or claim
affecting the rights or obligations of the Company under the
post-concert Grandfathering Agreement.

Reserved Matters. With respect to the matters requiring theapproval of a Qualified Majority at the Board level (“Reserved
Matters”), all the Directors shall be free to express their own
views. If the implementation of a Reserved Matter would requirea decision of the shareholders’ meeting of the Company, Sogepa
and GZBV shall consult each other with a view to reaching acommon position. Should Sogepa and GZBV fail to reacha common position, Sogepa and GZBV shall remain free toexercise on a discretionary basis their votes.

Various Provisions
Termination. The post-concert Grandfathering Agreement
terminates only if either the French State and its affiliates or
the German State and its affiliates no longer hold shares in the
Company.
Governing law. Laws of the Netherlands.
Jurisdiction. The courts of the Netherlands shall have exclusive
jurisdiction. This is binding advice for any dispute, controversy
or claim arising out of or in connection with the post-concert
Grandfathering Agreement in accordance with the procedure set
forth in the post-concert Grandfathering Agreement; provided,
however, that application to the courts is permitted to resolve
any such dispute controversy or claim.

Shareholders’ Agreement
Below is a further description of the Shareholders’ Agreement,
based solely on a written summary of the main provisions of
the Shareholders’ Agreement that has been provided to theCompany by Sogepa, GZBV and SEPI (all parties together the“Shareholders”).

Governance of the Company
Appointment of the Directors. The shareholders shall votein favour of any draft resolution relating to the appointment of
Directors submitted to the shareholders’ meeting of the Company
in accordance with the terms and conditions of the German State
Security Agreement and the French State Security Agreement(as described below). If, for whatever reason, any person to beappointed as a Director pursuant to the German State Security
Agreement or the French State Security Agreement is notnominated, the shareholders shall use their best endeavours
so that such person is appointed as a Director.
Sogepa and GZBV shall support the appointment of one
Spanish national that SEPI may present to them as Member ofthe Board of Directors of the Company, provided such person
qualifies as an Independent Director pursuant to the conditions
set forth in the Board Rules, and shall vote as shareholders inany shareholders’ meeting in favour of such appointment andagainst the appointment of any other person for such position.
If, for whatever reason, the French State Security Agreement
and/or the German State Security Agreement has / have been
terminated, KfW or Sogepa, as the case might be, shall propose
two persons, and the shareholders shall exercise their best
endeavours so that these persons are appointed as Directors.
Directors can be dismissed by the General Meeting at all times.
Modification of the Articles of Association. Sogepa and
GZBV shall consult each other on any draft resolution intending
to modify the Board Rules and/or the Articles of Association.

03

Prior consultation. Sogepa and GZBV shall consult each otheron any draft resolution submitted to the shareholders’ meetingother than related to Reserved Matters and the Board Rules.

Balance of Interests
The shareholders agree their common objective to seek abalance between themselves of their respective interest in the
Company as follows:–– to hold as closely as reasonably possible to 12% of the voting
rights for Sogepa, together with any voting rights attributable
to Sogepa and/or to the French State, pursuant to Dutch
takeover rules except for voting rights attributable due to acting
in concert with the other parties;–– to hold as closely as reasonably possible to 12% of the voting
rights for GZBV, together with any voting rights attributable to
GZBV and/or to the German State, pursuant to Dutch takeoverrules except for voting rights attributable due to acting inconcert with the other parties;–– to hold as closely as reasonably possible to 4% of the voting
rights for SEPI, together with any voting rights attributable
to SEPI and/or to the Spanish State, pursuant to Dutch
takeover rules except for voting rights attributable due to acting
in concert with the other parties.

Mandatory Takeover Threshold
The total aggregate voting rights of the shareholders shall always
represent less than 30% of the voting rights of the Company,or less than any other threshold the crossing of which would
trigger for any shareholder a mandatory takeover obligation(the “MTO Threshold”). In the event that the total aggregate
voting rights of the shareholders exceed the MTO Threshold,the shareholders shall take all appropriate actions as soon asreasonably practicable, but in any event within 30 days, to fall
below the MTO Threshold.

Transfer of Securities
Permitted transfer. Transfer of securities by any shareholder
to one of its affiliates.
Pre-emption right. Pro rata pre-emption rights of theshareholders in the event any shareholder intends to transfer
any of its securities to a third party directly or on the market.
Call-option right. Call option right for the benefit of theshareholders in the event that the share capital or the voting
rights of any shareholders cease to be majority owned directly or
indirectly by the French State, the German State or the Spanish
State as applicable.

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193

3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

Tag-along right. Tag-along right for the benefit of SEPI in theevent that Sogepa, the French State or any of their affiliates andany French public entity and GZBV, the German State or any of
their affiliates and any public entity propose together to transfer
all of their entire voting rights interests.

Various Provisions
Termination. The Shareholders’ Agreement may cease to
apply in respect of one or more Shareholders and/or theiraffiliates, subject to the occurrence of certain changes in its
or their shareholding interest in the Company or in its or theirshareholders.
Governing law. Laws of the Netherlands.
Jurisdiction. Arbitration in accordance with the Rules ofArbitration of the International Chamber of Commerce, with theseat of arbitration in The Hague (the Netherlands).

3.3.2.3 Undertakings with Respect
to Certain Interests of Certain
Stakeholders
The Company has made certain undertakings and entered into
certain agreements in connection with certain interests of its
former core shareholders and the German State.

State Security Agreements and Related
Undertakings and Negotiations
The Company and the French State have entered into anamendment to the existing convention between them relating
to the Company’s ballistic missiles business (as so amended,
the “French State Security Agreement”). Under the French
State Security Agreement, certain sensitive French military
assets are held by a Company subsidiary (the “French Defence
Holding Company”). The French State has the right to approveor disapprove of – but not to propose or appoint – three outside
Directors to the Board of Directors of the French Defence Holding
Company (the “French Defence Outside Directors”), at least
two of whom must qualify as Independent Directors under the
Board Rules if they were Members of the Board of Directors.
Two of the French Defence Outside Directors are required also
to be Members of the Board of Directors of the Company.
French Defence Outside Directors may neither (i) be employees,
managers or corporate officers of a company belonging to
the Company (although they may be Members of the Boardof Directors of the Company) nor (ii) have material ongoingprofessional relationships with Airbus SE.
The Company and the German State have entered into anagreement relating to the protection of essential interests to
the German State’s security (the “German State Security
Agreement”). Under the German State Security Agreement,
certain sensitive German military activities are pursued directly
or indirectly by a Company subsidiary (the “German Defence
Holding Company”). The German State has the right to approveor disapprove of – but not to propose or appoint – three outside
Directors to the Supervisory Board of the German Defence
Holding Company (the “German Defence Outside Directors”),
at least two of whom must qualify as Independent Directors underthe Board Rules if they were Members of the Board of Directors.
Two of the German Defence Outside Directors are required to

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Airbus / Universal Registration Document 2022

also be Members of the Board of Directors. The qualifications toserve as a German Defence Outside Director are comparable tothose to serve as a French Defence Outside Director.
In February 2021, the Company and the Spanish State enteredinto an agreement relating to the protection of essential security
interests to the Spanish State (the “Spanish State Security
Agreement”). Under the Spanish State Security Agreement,
certain sensitive Spanish military assets are held by a Company’s
subsidiary (the “Spanish Defence Holding Company”).
Pursuant to the Spanish State Security Agreement, the Company
granted the Spanish State a pre-emption right to acquire thesensitive assets as defined under the Spanish State Security
Agreement. The pre-emption right applies in case the Spanish
Defence Holding Company wishes to sell the sensitive assets toan entity outside Airbus or outside Spain’s territory. In such case,the Spanish State has the right to acquire the sensitive assets.

Dassault Aviation
The Company entered into an agreement with the French State
pursuant to which the Company:–– grants the French State a right of first offer in case of the saleof all or part of its shareholding in Dassault Aviation; and–– commits to consult with the French State prior to making any
decision at any shareholders’ meeting of Dassault Aviation.
The Company holds 9.90% of Dassault Aviation’s share capital.
For more information about Dassault Aviation, see “– Informationon the Company’s Activities – 1.1.5 Investments”.

Stock Exchange Listings
The Company has undertaken to the parties to the Shareholders’
Agreement that for the duration of the Shareholders’ Agreement
the Company’s shares will remain listed exclusively in France,
Germany and Spain.

Specific Rights
French State: Pursuant to the “French State Security
Agreement”, the Company has granted to the French State:(a) a veto right, and subsequently, a call option on the shares of
the Company performing the ballistic missiles activity exercisable
under certain circumstances, including if (i) a third party acquires,directly or indirectly, either alone or in concert, more than 15%
or any multiple thereof of the share capital or voting rights of
the Company, or (ii) the sale of the shares of such companies
carrying out such activity is considered, and (b) a right to oppose
the transfer of any such shares.
German State: Pursuant to the “German State Security
Agreement”, the Company and the German Defence Holding
Company have granted to the German State a pre-emption rightto acquire the sensitive activities, as defined under the German
State Security Agreement. The pre-emption right applies incase the German Defence Holding Company wishes to sell thesensitive activities to an entity outside the Company, or outside
the German territory, or the shares of a controlled entity whichhosts sensitive activities. In such a case, the German State may
acquire the shares of such a controlled entity. Furthermore, theGerman State has the right to acquire the sensitive activities incase the Company intends to allocate the sensitive activities
outside Germany or to give-up the sensitive activities.

3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

3.3.3 Form of Shares
The shares of the Company are in registered form. The Board of Directors may decide with respect to all or certain shares, onshares in bearer form.
Shares shall be registered in the shareholders’ register without the issue of a share certificate or should the Board of Directors so
decide, with respect to all or certain shares, with the issue of a certificate. Share certificates shall be issued in such form as theBoard of Directors may determine. Registered shares shall be numbered in the manner to be determined by the Board of Directors.

03

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 2022

Shareholders% ofcapital% ofvotingrightsNumberof shares

SOGEPA

10.89%

10.89%GZBV(1)

10.87%

10.88%SEPI

Position as of
31 December 2021

Position as of
31 December 2020

% ofcapital% ofvotingrightsNumberof shares% ofcapital% ofvotingrightsNumberof shares

85,835,477

10.92%

10.92%

85,709,822

10.90%

10.91%

85,835,477

10.95%

10.95%

85,835,477

85,709,822

10.93%

10.94%

85,709,822

4.10%

4.10%

32,330,381

4.11%

4.11%

32,330,381

4.12%

4.13%

32,330,381

Sub-total New
Shareholder Agt.

25.86%

25.87%

203,875,680

25.93%

25.94%

203,875,680

26.00%

26.01%

203,875,680

Public74.06%

74.05%

583,681,825

74.01%

74.05%

581,973,275

73.94%

73.99%

579,840,715

Own share buyback(3)

0.08%

-

647,500

0.03%-

234,735

0.06%-

432,875

Total

100%

100% 788,205,008

100%

100% 786,083,690

100%

(2)

100% 784,149,270(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
2022 is as shown in the diagram in “– 3.3.1 Shareholding
Structure at the end of 2022”.

3.3.5 Persons Exercising Control over the Company
See “– 3.3.1 Shareholding Structure at the end of 2022” 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 2022, comprising the Divisions
and the main Business Units. See “– Information on the Company’s Activities – 1.1.1 Overview – Organisation of the Company’s
Businesses”. For ease of presentation, certain intermediate holding companies have been omitted.

Airbus / Universal Registration Document 2022

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196

Airbus / Universal Registration Document 2022

MBDA
(France)

37.5%*

Airbus Defence
and Space SAS(France)11.29%

94.67%

Airbus Operations
Limited(UK)

AirbusOperations, S.L.
(Spain)AirbusAerostructures
GmbH(Germany)

Premium Aerotec
GmbH(Germany)

Airbus Operations
GmbH(Germany)

5.33 %

Airbus Operations
SAS(France)

Airbus Defence
and Space
Limited(UK)

Subsidiaries held with no indication of ownership percentage are 100% owned.
* Indirectly
Legal forms are indicated for information purposes and are not always part of the legal name.

MBDA Group

Ariane Group

Airbus Helicopters

Airbus Defence and Space

Ariane Group50%*

Airbus Defence
and Space Holding
France SAS(France)99.99%

Airbus DS Holding
SAS
4.04%
(France)Elbe
FlugzeugwerkeGmbH(Germany)

45%

Airbus Defence
and Space GmbH
(Germany)

88.71%

50%*

ATR GIE(France)(The Netherlands)

AIRBUS SE

Airbus Atlantic(France)

Computadoras,Redese Ingenieria, S.A.
(Spain)Airbus Defence
and Space, S.A.
(Spain)Airbus Canada
LimitedPartnership(Canada)75%*

Airbus SAS(France)

Airbus Group
Inc.
(USA)

Airbus Americas,
Inc.
(USA)

5.27%

94.73%

Airbus Helicopters
España, S.A.
(Spain)Airbus Helicopters
UK Limited(UK)

Airbus Helicopters
DeutschlandGmbH(Germany)

Airbus Helicopters(France)

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 12 April 2022, 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.

03

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
Authorised by the Annual General
Meeting of Shareholders to Be
Held on 19 April 2023
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: 19 April 2023;–– intended use of the Airbus SE shares held by the Company
as of the date of this document: the owning of shares for the
performance of obligations related to employee share option
programmes or other allocations of shares to employees ofAirbus and Airbus’ companies;–– purposes of the share repurchase programme to be
implemented by the Company (by order of decreasingpriority, without any effect on the actual order of use of
the repurchase authorisation, which will be determinedon a case-by-case basis by the Board of Directors basedon need):–– the reduction of share capital by cancellation of all or partof the repurchased shares, it being understood that the
repurchased shares shall not carry any voting or dividend
rights,–– the owning of shares for the performance of obligations
related to (i) debt financial instruments convertible into
Airbus SE shares, or (ii) employee share option programmes
or other allocations of shares to employees of Airbus andAirbus’ companies,–– the purchase of shares for retention and subsequent use forexchange or payment in the framework of potential external
growth transactions, and–– the liquidity or dynamism of the secondary market of the
Airbus SE shares carried out pursuant to a liquidity agreement
to be entered into with an independent investment services
provider in compliance with the decision of the AMF dated
1 October 2008 (as amended) related to approval of liquidity
agreements recognised as market practices by the AMF;–– procedure:–– maximum portion of the issued share capital that may be
repurchased by the Company: 10%,–– maximum number of shares that may be repurchased by
the Company: 78,820,500 shares, based on an issued sharecapital of 788,205,008 shares as of 16 February 2023,–– the amounts to be paid in consideration for the purchase of
the treasury shares must be, in accordance with applicable
Dutch law, a price per share not less than the nominal
value and not more than the higher of the price of the last
independent trade and the highest current independent bid
on the trading venues of the regulated market of the country
in which the purchase is carried out;

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Airbus / Universal Registration Document 2022–– the Company undertakes to maintain at any time a sufficientnumber of shares in public hands to meet the thresholds ofEuronext, shares may be bought or sold at any time (including
during a public offering) to the extent authorised by the stock
exchange regulations and by any means, including, without
limitation, by means of block trades and including the use of
options, combinations of derivative financial instruments or
the issue of securities giving rights in any way to Airbus SE
shares within the limits set out in this document;–– the portion of shares repurchased through the use of blocktrades may amount to all the shares to be repurchasedin the context of this programme. In addition, in the eventthat derivative financial instruments are used, the Company
will ensure that it does not use mechanisms which would
significantly increase the volatility of the shares in particularin the context of call options, characteristics of the shares
to be repurchased by the Company: shares of Airbus SE, a
company listed on Euronext Paris, on the regulierter Marktof the Frankfurt Stock Exchange and on the Madrid, Bilbao,
Barcelona and Valencia Stock Exchanges;–– maximum purchase price per share: not less than thenominal value and not more than the higher of the price 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 19 October 2024 inclusive, i.e. the date of expiry of
the authorisation requested from the AGM of Shareholders
to be held on 19 April 2023.
As of the date of this document, the Company has not entered into
any liquidity agreement with an independent investment services
provider in the context of the share repurchase programme.

Share Repurchase Programme 2022
In February 2022, the Company started implementing a sharebuyback programme that was conferred by Board of Directors
on 12 April 2022 following the authorisation by the Company’s
Annual General Meeting of shareholders on 12 April 2022. This
share buyback programme is reported in accordance with theMarket Abuse Regulation.

3. General Description of the Company and its Share Capital /3.4 Dividends

3.4 Dividends
3.4.1 Dividends and Cash Distributions Paid
Cash distributions paid to the shareholders are set forth in the table below:
Financial year

Date of the cash distribution payment

Gross amount per share(1)2016

20 April 2017

€ 1.352017

18 April 2018

€ 1.502018

17 April 2019

€ 1.65

2019

N/A

€0

2020

N/A

€0

2021

21 April 2022

€ 1.5003(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 27 April 2023 of adividend of € 1.80 per share (FY 2021: € 1.50).

The solid 2022 financial performance and our confidence in the
future underpin the dividend proposal.
The proposed dividend increases the pay-out ratio from 28%
for 2021 to 33% for 2022 and demonstrates our commitment tosustained dividend growth. The record date should be 26 April
2023.

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, almost all European Union
Member States and 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% in2023) 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
en niet-coöperatieve rechtsgebieden voor belastingdoeleinden),or (ii) has a permanent establishment located in such jurisdiction
to which the interest is attributable, or (iii) is entitled to theinterest payable for the main purpose or one of the main
purposes to avoid taxation for another person, or (iv) is notconsidered to be the recipient of the interest in its jurisdiction ofresidence because such jurisdiction treats another (lower-tier)entity as the recipient of 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 aparticipant 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 (ormore) of the items in (i)-(v) above had the interest been due tothe participant directly, all within the meaning of the Withholding
Tax Act 2021 (Wet bronbelasting 2021).
If the dividend withholding tax and the conditional dividend
withholding tax as per 2024 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 rise from 15% to the highest corporate tax
rate (i.e. 25.8% in 2023).

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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.

Airbus / Universal Registration Document 2022

03

201

Chapter

202

Airbus / Registration Document 2022

04
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

204
204
228
229
231

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

232
232
247
247

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

248
248
248
249

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203

4. Corporate Governance /4.1 Management and Control

4.1 Management and Control
The corporate governance arrangements of the Company were
substantially changed pursuant to the Multiparty Agreement,
including changes in the composition of the Board of Directors
and the rules governing its internal affairs (the “Board Rules”).
These changes are intended to further normalise and simplify

the Company’s corporate governance, reflecting an emphasis
on best corporate governance practices and the absence of acontrolling shareholder group. Below is a summary descriptionof such changes.

4.1.1 Corporate Governance Arrangements
4.1.1.1 Board of Directorsa) Composition, Powers and Rules
Under the Articles of Association, the Board of Directors consistsof at most 12 Directors. Under the Board Rules, each Board
Director shall retire at the close of the AGM held three years
following his or her appointment, unless the said mandate isrenewed. Under the Board Rules, at least a majority of theMembers of the Board of Directors (i.e. 7/12) must be European
Union nationals (“EU”; any reference in the Board Rules to the EU
includes the UK and its constituent countries, notwithstanding
the withdrawal of the UK from the EU) (including the Chairmanof the Board of Directors) and a majority of such majority (i.e.
4/7) must be both EU nationals and residents. No Director
may be an active civil servant. The Board of Directors has one
Executive Director and 11 Non-Executive Directors. While theBoard of Directors appoints the Chief Executive Officer of theCompany (the “CEO”), the CEO is required to be an Executive
Director and must be an EU national and resident; therefore itis 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 Boardof Directors).
Under the Board Rules, an “Independent Director” is a NonExecutive Director who is independent within the meaning of
the Dutch Corporate Governance Code (the “Dutch Code”) andmeets additional independence standards. Specifically, where
the Dutch Code would determine non-independence, in part,by reference to a Director’s relationships with shareholders who
own at least 10% of the Company, the Board Rules determine
such Director’s non-independence, in relevant part, by reference
to such Director’s relationships with shareholders who own atleast 5% of the Company. According to the criteria of the Dutch
Code and the Board Rules, all Non-Executive Directors (including
the Chairman) presently qualify as an “Independent Director”.
The Remuneration, Nomination and Governance Committee of theBoard of Directors (the “RNGC”) is charged with recommending
to the Board of Directors the names of candidates to succeed
Board Members after consultation with the Chairman of theBoard of Directors and the CEO.
The Board of Directors, deciding by simple majority of thevotes cast (a “Simple Majority”), proposes individuals to theshareholders’ meeting of the Company for appointment as

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Directors by the shareholders’ meeting. No shareholder or groupof shareholders, or any other entity, has the right to propose,
nominate or appoint any Directors other than the rights available
to all shareholders under Dutch law.
In addition to the membership and composition rules describedabove, the RNGC, in recommending candidates for the Boardof Directors, and the Board of Directors in its resolutions
proposed to the shareholders’ meeting regarding the renewal
or appointment of Directors, are both required to apply thefollowing principles:–– the preference for the best candidate for the position;–– the preference for gender diversity between equal profiles;–– the maintenance of appropriate skills mix and geographicalexperience;–– the maintenance, in respect of the number of Members of
the Board of Directors, of the observed balance among thenationalities of the candidates in respect of the location of themain industrial centres of the Company (in particular among thenationals of France, Germany, Spain and the United Kingdom,
where these main industrial centres are located); and–– at least a majority of the Members of the Board of Directors(i.e. 7/12) shall be EU nationals (including the Chairman), anda majority of such majority (i.e. 4/7) shall be both EU nationals
and residents (including the UK and its constituent countries,
notwithstanding a withdrawal of the UK from the EU).
In accordance with these principles the Board of Directors shallcontinue to seek greater diversity with respect to gender, age,geography, education, profession and background.
In 2022, Mrs Rummelhoff and Mr Wood joined the Board of
Directors as non-Executive Directors replacing, respectively,
Mr Tavares and Lord Drayson. Irene Rummelhoff has substantial
experience in the energy sector, notably in the field of energy
transition and renewables. Antony Wood notably brings acomprehensive experience of the aerospace industry anddefence sector. Both have the right competencies and personal
skills to fulfil their position in line with the Board of Directors’
expectations and the evolution of the Company’s business.
At the end of 2022, the average age of the members of the Boardof Directors was 60. The proportion of female representationon the Board of Directors is one third. The Board of Directors
composition shows a balanced mix of experience with, forexample, seven members having aerospace industry skills,
five having manufacturing and production skills, five having
sustainability skills, five having geopolitical skills, nine having

4. Corporate Governance /4.1 Management and Control

finance skills and four having information or data management
skills. More details about the diversity of the members of theBoard of Directors are available in the table (Airbus SE Board of
Directors until AGM 2023).
The Board of Directors is required to take into account, in the
resolutions proposed in respect of the renewal or nominationof Directors presented to the shareholders’ meeting, theundertakings of the Company to the French State, pursuant tothe amendment to the French State Security Agreement, andto the German State, pursuant to the German State Security
Agreement, in each case as described more fully above. In
practice, this means that at all times the Board of Directors
needs to have: (i) two Directors who should also be French
Defence Outside Directors (as defined above) of the French
Defence Holding Company (as defined above) who have been
proposed by the Company and consented to by the French
State and (ii) two Directors who should also be German Defence
Outside Directors (as defined above) of the German Defence
Holding Company (as defined above) who have been proposedby the Company and consented to by the German State.
The RNGC endeavours to avoid a complete replacement ofoutgoing Directors by new candidates, and draws up an
appointment and reappointment schedule for the Directors after
consultation with the Chairman and the CEO. In drawing up sucha schedule, the RNGC considers the continuity of companyspecific knowledge and experience within the Board of Directors,
also taking into account that a Director should at the time of his/her appointment or re-appointment not be older than 75 years
and ensuring that at least one third of Directors’ positions areeither renewed or replaced every year for a term of three years.
This is to avoid large block replacements of Directors at one
single AGM, with the corresponding loss of experience andintegration challenges, provided that exceptions to these rules
may be agreed by the Board of Directors if specific circumstances
provide an appropriate justification for such exceptions.

b) Role of the Board of Directors
Most Board of Directors’ decisions can be made by a Simple
Majority, but certain decisions must be made by a two-thirds
majority (i.e. eight favourable votes) of votes cast by the Directors
regardless of whether they are present or represented in
respect of the decision (a “Qualified Majority”). In addition,
amendments to certain provisions of the Board Rules require
the unanimous approval of the Board of Directors, with no morethan one Director not being present or represented (including
provisions relating to nationality and residence requirements withrespect to Members of the Board of Directors and the Executive
Committee). However, no individual Director or class of Directors
has a veto right with respect to any Board of Directors’ decisions.
The Board Rules specify that in addition to the Board of
Directors’ responsibilities under applicable law and the Articles
of Association, the Board of Directors is responsible for certain
enumerated categories of decisions. Under the Articles of
Association, the Board of Directors is responsible for the
management of the Company. Under the Board Rules, the Boardof Directors delegates the execution of the strategy as approvedby the Board of Directors and the day-to-day management of
the Company to the CEO, who, supported by the Executive
Committee and its executive leadership team, makes decisions
with respect to the management of the Company. However,
the CEO should not enter transactions that form part of the

key responsibilities of the Board of Directors, unless thesetransactions have been approved by the Board of Directors.
Matters that require Board of Directors’ approval include among
others, the following items (by Simple Majority unless otherwise
noted):–– approving any change in the nature and scope of the businessof the Company;–– debating and approving the overall strategy and the strategicplan of the Company;–– approving the operational business plan of the Company(the “Business Plan”) and the yearly budget of the Company(the “Yearly Budget”), including the plans for investment,
R&D, Employment, Finance and, as far as applicable, major
programmes;–– nominating, suspending or revoking the Chairman of the Boardof Directors and the CEO (Qualified Majority);–– approving of all the members of the Executive Committee as
proposed by the CEO and their service contracts and othercontractual matters in relation to the Executive Committee anddeciding upon the appointment and removal of the Secretary
to the Board of Directors on the basis of the recommendationof the RNGC;–– approving the relocation of the headquarters of theprincipal companies of the Company and of the operational
headquarters of the Company (Qualified Majority);–– approving decisions in connection with the location of new
industrial sites material to the Company or the change of thelocation of existing activities that are material to the Company;–– approving decisions to invest and initiate programmes financedby the Company, acquisition, divestment or sale decisions, ineach case for an amount in excess of € 300 million;–– approving decisions to invest and initiate programmes financedby the Company, acquisition, divestment or sale decisions, ineach case for an amount in excess of € 800 million (Qualified
Majority);–– approving decisions to enter into and terminate strategic
alliances at the level of the Company or at the level of one ofits principal subsidiaries (Qualified Majority);–– approving matters of shareholder policy, major actions or
major announcements to the capital markets; and–– approving decisions in respect of other measures and businessof fundamental significance for the Company or which involves
an abnormal level of risk.

04

The Board of Directors must have a certain number of Directors
present or represented at a meeting to take action. This quorum
requirement depends on the action to be taken. For the Boardof Directors to make a decision on a Simple Majority matter,a majority of the Directors must be present or represented.
For the Board of Directors to make a decision on a Qualified
Majority matter, at least ten of the Directors must be present or
represented. If the Board of Directors cannot act on a Qualified
Majority Matter because this quorum is not satisfied, the quorum
would decrease to eight of the Directors at a new duly calledmeeting.
In addition, the Board Rules detail the rights and duties of themembers of the Board of Directors and set out the core principles
which each member of the Board of Directors shall comply
with and shall be bound. 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.

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205

4. Corporate Governance /4.1 Management and Controlc) The Board of Directors(i) Airbus SE Board of Directors until Annual General Meeting 2023
Board member
Age(1), Gender, Nationality

StatusSince

TermexpiresPrimary occupation& Other mandates

René
OBERMANN59, M, German

Independent

Guillaume
FAURY
54, M, French

Director expertiseBoard
attendanceCommittee attendance(4)Audit
RNGC ECSC

2018,
previous
re-election
in 20212024

Chairman of the Board of
Directors of Airbus SE andManaging Director of Warburg
Pincus Deutschland GmbH

Executive

2019,
previous
re-election
in 20222025

Chief Executive Officer
of Airbus SE, Memberof the Board of Directorsof AXA SA

13/13

Victor
CHU
65, M, Chinese /BritishIndependent

2018,
previous
re-election
in 20212024

Chairman and CEO of First
Eastern Investment Groupand Member of the Boardof Nomura Holdings Inc.

10/13

Jean-Pierre
CLAMADIEU
64, M, French

Independent

2018,
previous
re-election
in 20212024

Chairman of the Boardof Engie and Memberof the Board of AXA SA

13/13

Ralph D.
CROSBY, Jr.
75, M, American

Independent2013,
previous
re-election
in 2020

Member of the Board
2023(2) of Directors of Excelitas
Holdings, LP

13/13

Mark
DUNKERLEY
59, M, British /AmericanIndependent 20202023(2)

Member of the Boardof Directors of Spirit
Airlines Inc. and Volotea
Airlines

13/13

5/5

Stephan
GEMKOW
63, M, German

Independent 20202023(2)

Member of the Boardof Directors of Amadeus
IT Group and Flughafen
Zürich AG

13/13

5/5

Catherine
GUILLOUARD
58, F, French

2016,
previous
Independent
re-election
in 20222025

Member of theSupervisory Board of KPN
and Chairwoman of
the Supervisory Boardof Ingenico

13/13

AmparoMORALEDA
58, F, Spanish

Independent

2015,
previous
re-election
in 20212024

Member of the Boardof Directors of A.P. Moller Maersk A/S, CaixaBank SA
and Vodafone PLC

13/13

Claudia
NEMAT
54, F, German

Independent

2016,
previous
re-election
in 20222025

Member of the Boardof Management of Deutsche
Telekom AG

12/13

Irene
RUMMELHOFF
56, F, Norwegian

Independent 2022

2025

EVP of Marketing, Midstream
and Processing and Memberof the Corporate Executive
Committee of Equinor ASA

10/10
(post
AGM)

Tony
WOOD(3)56, M, British

Independent 2022

2026

Member of the Boardof Directorsof National Grid PLC

13/13

5/5

5/5

4/4

4/4
(post
AGM)

4/4

5/5

5/5

3/4

4/5

3/3
(post
AGM)

1/1
(from Dec
BoD)

Board and Committee meetings in 2022

13

5

5

4

Average attendance rate in 2022

96%

100%

95%

95%

Chair

GlobalBusinessEngineering& Technology

Manufacturing& Production

AerospaceIndustry

Finance& Audit

Geopolitical
Economics

DefenceIndustry

Information & DataManagement(1) As of 15 February 2023.
(2) Proposed for re-election in 2023.
(3) Appointed at December 2022 Board of Directors’ (BoD) meeting, subject to appointment by 2023 AGM.
(4) Two Ad Hoc Committee meetings were held in 2022 to address some specific strategic topics (as per 4.1.3 Board Committees section).

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4/4

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Asia

Sustainability

4. Corporate Governance /4.1 Management and Control(ii) Curriculum Vitae and Other Mandates and Duties Performed in any Company by the Membersof the Board of Directors in 2022
The Company has not appointed observers to the Board of Directors. Pursuant to applicable Dutch law, the employees are notentitled to elect a Director. There is no minimum number of shares that must be held by a Director.

René OBERMANNCURRICULUM VITAE

59 years old
Director since 2018,
Re-elected in 2021
Independent

René Obermann is Co-Head of Europe and Managing Director of Warburg Pincus Deutschland GmbH,a leading global private equity firm that he joined in 2015. In addition, he is Deputy Chairman of theSupervisory Board at IONOS Group SE, a leading European web hosting and cloud company, and a
Member of the Board of Directors at ISAT Connect Bidco Limited (the holding company for the Inmarsat
group), a satellite network provider. René Obermann previously served as a member of the Board of various
companies including Allianz Deutschland AG, Spotify and Telenor.
René worked as CEO of Ziggo BV in The Netherlands in 2014 until the merger with LibertyGlobal’s
UPC in November 2020. Prior to Ziggo, René worked at Deutsche Telekom Group (DT) from 1998 until
2013. After running DT’s mobile Division (T-Mobile International), he was appointed as CEO of Deutsche
Telekom AG in November 2006, where he remained until December 2013.
René began his career with a business traineeship at BMW AG in Munich. Next, he founded his own
business in 1986: ABC Telekom, a company distributing telecommunication equipment and providing
technical services. After the acquisition of ABC Telekom by Hutchison Whampoa in 1991, René became
Managing Partner of the resulting company: Hutchison Mobilfunk GmbH. Between 1993 and 1998, he was
CEO of that company.
From 2007-2013, René also served as Vice-President of the German Association for Information Technology,
Telecommunications and New Media (BITKOM).

CURRENT MANDATES-- Chairman of the Board of Directors of Airbus SE;-- Managing Director of Warburg Pincus
Deutschland GmbH;-- Deputy Chairman of the Supervisory Board of
IONOS Group SE;-- Member of the Board of Directors of ISAT
Connect Bidco Limited (the holding company for
the Inmarsat Group).

04

FORMER MANDATESFOR THE LAST FIVE YEARS-- 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);-- Member of the Board of Directors ofThyssenKrupp AG (until August 2018);-- Managing Director of Warburg Pincus LLC,
London (until July 2018).

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207

4. Corporate Governance /4.1 Management and Control

Guillaume Faury
CURRICULUM VITAE

55 years old
Director since 2019
Re-elected in 2022
Executive

Guillaume Faury was appointed Airbus Chief Executive Officer (CEO) in April 2019 and was reappointed
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.
Additionally, since April 2021, Guillaume is a member of the Board of Directors of AXA SA and since July 2021
he is the President of the Groupement des Industries Françaises de l’Aéronautique et du Spatial (GIFAS),
the French aerospace industries association.
Prior to this, Guillaume was Chief Executive Officer of Airbus Helicopters (2013-2018), where his achievements
included restructuring its manufacturing system and introducing new technologies. Before that, he enjoyeda four-year spell in the car industry at Peugeot (2009-2013), the French automotive manufacturer, rising
to become the Executive Vice-President for research and development and a member of the company’s
management board. He presided over significant advances in Peugeot’s lower-emissions hybrid-engine
technology and the overhaul of the company’s product range, among other accomplishments.
Between 1998 and 2008, he held various leadership positions in engineering, programmes and flight testingin Airbus’ helicopter business, which at the time operated under the name of Eurocopter. He became
Executive Vice-President for Programmes and a member of the Eurocopter Executive Committee, before
being appointed as Executive Director for research and development.
Guillaume began his career in 1992 as a flight-test engineer for the Eurocopter Tiger helicopter in the
Direction Générale de l’Armement (DGA), the French government agency responsible for the development
and purchase of defence systems for the French armed forces.
He graduated from the École polytechnique in Paris in 1990 and, subsequently, from the École nationalesupérieure de l’aéronautique et de l’espace in Toulouse.
Guillaume’s love of flying and aviation dates back to his childhood. He is a qualified light-aircraft pilot andhelicopter flight-test engineer with 1,300 hours of flying experience. He was born in 1968 in Cherbourg,
Normandy, and is married with three children.

CURRENT MANDATES-- Chief Executive Officer, Member of the Boardof Directors and of the Executive Committeeof Airbus SE;-- President of Airbus SAS;-- Member of the Advisory Board of AIRBUS
GROUP VENTURES FUND II, LP;-- Vice Chairman of the Board of Directors of
AeroSpace and Defence Industries Associationof Europe (until June 2023);-- President of Groupement des Industries
Françaises Aéronautiques et Spatiales (GIFAS)(until July 2023);-- Member of the Board of Directors of AXA SA.

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Airbus / Universal Registration Document 2022

FORMER MANDATESFOR THE LAST FIVE YEARS-- Chairman of the Board of Directors of Airbus
Canada Managing GP Inc. (until December 2021);-- Chairman of the Board of Directors of Airbus US
A220, Inc. (until December 2021);-- Chairman of the Supervisory Board of Airbus
Operations GmbH (until June 2020);-- Chairman of the Board of Directors of Airbus
Corporate Foundation (until April 2020);-- Chairman of the Board of Directors of Airbus(China) Enterprise Management and Services Co.
Limited (until November 2019);-- Member of the Board of Directors of Airbus Africa
and Middle East FZE (until November 2019);-- Member of the Board of Directors of Airbus
Americas, Inc. (until October 2019);-- Member of the Board of Directors of Tallano
Technologies SAS (until September 2019);-- Chairman of the Board of Directors of Airbus
Helicopters España, SA (until July 2018);-- Member of the Supervisory Board of Airbus
Helicopters Deutschland GmbH (until May 2018);-- Managing Director (Directeur Général)of Airbus SAS (until April 2018);-- President of Airbus Helicopters (SAS)(until April 2018);-- President of Airbus Helicopters Holding (SAS)(until April 2018);-- Chairman of the Board of Directors of Airbus
Helicopters, Inc. (until April 2018).

4. Corporate Governance /4.1 Management and Control

Victor Chu
CURRICULUM VITAE

65 years old
Director since 2018,
Re-elected in 2021
Independent

Victor Chu graduated as a lawyer in London. He was admitted to practice law in England and Hong Kong.
After completing his training with Herbert Smith, the City law firm, Victor moved back to Hong Kong in 1982
with Herbert Smith. He has since handled a wide array of mandates in the field of corporate, commercial
and securities law, with special emphasis on China and regional investment transactions. In late 1985,
he founded Victor Chu & Co., which has become one of the leading law firms in Hong Kong.
In 1988, Victor Chu created the First Eastern Investment Group, a Hong Kong based international investment
firm which he has lead since then as Chairman and CEO. First Eastern specialises in private equity
investments, venture capital investments and investments in the expansion stage of business development.
Victor Chu was part of the first wave of specialists in the Chinese market. He penetrated China early andbuilt a lot of relationships at the highest level in the country. Victor Chu also currently serves as a Memberof 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 of Japanese 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 Securities Asia;-- Member of the Board of Sustainable
Development Capital;-- Co-Chair of the International Business Council(by World Economic Forum);-- Senior Partner of Victor Chu & Co;-- Member of the Board of Nomura Holdings, Inc.

04

FORMER MANDATESFOR THE LAST FIVE YEARS-- Alternate Member of the Board of China
Merchants China Direct (until September 2021);-- Member of the Board of China Merchants China
Direct (until April 2020).

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209

4. Corporate Governance /4.1 Management and Control

Jean-Pierre Clamadieu
CURRICULUM VITAE

64 years old
Director since 2018,
Re-elected in 2021
Independent

Jean-Pierre Clamadieu graduated from École Nationale Supérieure des Mines de Paris before becoming
Chief Engineer of the Corps of Mines. Between 1981 and 1993, he worked mainly for the French Ministryof lndustry and as Technical Advisor to the Minister of Labor.
In 1993, Jean-Pierre Clamadieu joined RhônePoulenc to develop new activities in the field of automobile
pollution control. ln the following years, he held several executive positions in the Rhodia group, as Presidentof Rhodia’s Chemicals in Latin America, President of Rhodia Eco Services, Senior Vice-President for Rhodia
Corporate Purchasing, President of Rhodia Organic Fine Chemicals Division and President of Rhodia
Pharmaceuticals & Agrochemicals Division.
In October 2003, Mr Clamadieu was appointed CEO of Rhodia, and became its Chairman & CEO in
March 2008. Following a merger between Rhodia and the Belgian chemical group Solvay in 2011,
Mr Clamadieu was appointed CEO of the new Solvay group. Since his appointment, Jean-Pierre Clamadieu
led the integration of the new group and its transformation into a major player in the field of specialty
chemicals and advanced materials, which combines industrial competitiveness with the quest for sustainable
solutions for its clients. His mandate at Solvay SA ended in March 2019.
Since May 2018, Mr Clamadieu serves as Chairman of the Board of Directors of ENGIE, a French energy
company. He also serves as a Member of the Board of Directors at AXA SA.
Jean-Pierre Clamadieu also promotes an ambitious and coordinated European energy policy.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Chairman of the Board of ENGIE;-- Member of the Board of Directors of AXA SA(until April 2023);-- Chairman of the Board of Opéra Nationalde Paris.

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FORMER MANDATESFOR THE LAST FIVE YEARS-- Chairman of the Executive Committee and CEOof Solvay SA (until March 2019);-- Member of the Board of Solvay Specialty
Chemicals Asia Pacific Pte. Ltd (Singapore)(until March 2019);-- Director of Cytec Industries Inc.
(until March 2019);-- Director Cytec UK Holding Inc. (until March 2019);-- Member of the Board of Solvay Finances SA(Luxembourg) (until March 2018);-- Member of the Board of Faurecia SA (France)(until February 2018).

4. Corporate Governance /4.1 Management and Control

Ralph Dozier Crosby, Jr.
CURRICULUM VITAE

75 years old
Director since 2013,
Re‑elected in 2020
Independent

Ralph Crosby is a Member of the Board of Directors of Excelitas Holdings, LP, headquartered in Boston.
Previously, he served until May 2021 as an Independent Director of American Electric Power headquarteredin Columbus, Ohio, where he chaired the Human Resources Committee. He was Member of the Executive
Committee of EADS from 2002 -2012 as well as Chairman and CEO of EADS North America from 2002
– 2009. Prior to joining EADS, Mr Crosby was an Executive within Northrop Grumman Corporation, where
he had served as a Member of the Corporate Policy Council with positions including President of theIntegrated 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 theUnited States. Mr Crosby is a 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 theJames Forrestal Award from the National Defense Industrial Association and has been awarded Chevalierof the Légion d’Honneur of France.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Member of the Board of Directors of Excelitas
Holdings, LP.

FORMER MANDATESFOR THE LAST FIVE YEARS

04-- Member of the Board of Directors of American
Electric Power Corporation (until May 2021);-- Member of the Board of Directors andof the Executive Committee of the Atlantic
Council of the United States (until August 2018).

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4. Corporate Governance /4.1 Management and Control

Mark DUNKERLEYCURRICULUM VITAE

59 years old
Director since 2020
Independent

Mark Dunkerley received his BS in Economics from The London School of Economics and Political Scienceand his MS in Air Transport Management from Cranfield University in the UK.
Between 1989-1999, he held various senior positions at British Airways Plc. in a corporate strategy capacity
as well as in regional roles in Europe and the USA encompassing notably the management of sales,
marketing, customer services, operations, finance, industrial relations, human resources and alliances.
Thereafter, Mr Dunkerley successively served as President and COO of Worldwide Flight Services, a leading
multinational ground handling business, as Executive Vice-President at the San Francisco-based aviation
consultancy firm, Roberts Roach & Associates and as COO at Sabena Airlines Group.
In 2002, Mark Dunkerley joined Hawaiian Airlines, first as President and COO and from 2005 as President
and CEO (including of the parent company, Hawaiian Holdings, Inc.) where he led the transformation of thecompany from bankruptcy into one of the world’s most successful airlines from which he retired in 2018.
Mr Dunkerley currently serves as Non-Executive Director of Spirit Airlines Inc., a NASDAQ listed US airline
and of Volotea Airlines, a privately-owned low-cost airline operating in Europe.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Member of the Board of Directors of Spirit
Airlines Inc.;-- Member of the Board of Directors of Volotea
Airlines;-- Member of the Board of Directors of theSmithsonian Air & Space Museum.

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FORMER MANDATESFOR THE LAST FIVE YEARS-- President, CEO and Board Member ofthe Board of Directors of Hawaiian Airlines Inc.
(until March 2018);-- President, CEO and Board Member of theBoard of Directors of Hawaiian Holdings Inc.
(until March 2018);-- Member of the Board of Governors of IATA (until
March 2018);-- Member of the Board of Directors of Airlinesof America (until March 2018);-- Member of the Board of Directors of Hawaii
Chamber of Commerce and Business
Roundtable (until March 2018).

4. Corporate Governance /4.1 Management and Control

Stephan GEMKOWCURRICULUM VITAE

63 years old
Director since 2020
Independent

Stephan Gemkow studied business administration at the University of Paderborn, Germany, and at St. Olaf
College in Minnesota, USA.
From 1988 to 1990 he worked as a management consultant at BDO Deutsche Warentreuhand AG in
Hamburg.
Between 1990 and 2012, he held various management positions at Deutsche Lufthansa AG in Frankfurt andWashington, such as Sales Manager, Head of Investors Relations, Head of Corporate Finance and Human
Resources for the Cargo Division which he accompanied through a major reorganisation. From 2006 to
2012, Mr Gemkow served as Chief Financial Officer and a member of the Management Board of Deutsche
Lufthansa AG which he successfully lead through growth, global expansion as well as the financial crisis.
In 2012, he took the position of Chief Executive Officer and Chairman of the Board of Directors of Franz
Haniel & Cie, one of the largest family-owned investment holdings, based in Germany, where he drove thecompany through important restructuring and investment phases in a complex stakeholder management
context and where he remained until June 2019.
Mr Gemkow furthermore served as Chairman on the Supervisory Boards of TAKKT AG and Celesio AG(now known as McKesson Europe AG), and as member of the Supervisory Board of Evonik Industries AG.
Stephan Gemkow currently holds positions as non-executive member in the Board of Directors of Amadeus
IT Group, Flughafen Zürich AG and 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.

04

FORMER MANDATESFOR THE LAST FIVE YEARS-- Member of the Board of Directors of JetBlue
Airways Corporation (until March 2020);-- CEO and Chairman of the Board of Directorsof Franz Haniel & Cie. GmbH (until June 2019);-- Chairman of the Supervisory Board of TAKKT AG(until May 2019).

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4. Corporate Governance /4.1 Management and Control

Catherine Guillouard
CURRICULUM VITAE

58 years old
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-President of
Finance in 2005. In September 2007, she joined Eutelsat as Chief Financial Officer and member of theGroup Executive Committee.
Ms Guillouard joined Rexel in April 2013 as Chief Financial Officer and Group Senior Vice-President.
Between May 2014 and February 2017 she 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, thethird largest urban transportation operator in the world with nearly 16 million daily passengers in 12 countries
and 4 continents. In April 2020, Ms Guillouard became a member of the Supervisory Board of KPN, oneof the leading telecommunications and IT providers, market leader in the Netherlands. Ms Guillouard was
appointed Chairwoman of the Supervisory Board of Ingenico, the global leader in payments acceptancesolutions and services in 37 countries, on 30 September 2022. Ms Guillouard is also a member of theBoard of Directors of Lottomatica, an Italy based gaming and betting company.
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;-- Member of the Supervisory Board of KPN;-- Chairwoman of the Supervisory Board of
Ingenico;-- Member of the Board of Directors of Lottomatica.

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FORMER MANDATESFOR THE LAST FIVE YEARS-- 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).

4. Corporate Governance /4.1 Management and Control

María Amparo Moraleda Martínez
CURRICULUM VITAE

58 years old
Director since 2015,
Re-elected in 2021
Independent

Amparo Moraleda graduated as an industrial engineer from the ICAI (Escuela Técnica Superior de Ingeniería
Industrial) Madrid and holds a PDG from IESE Business School in Madrid. Between January 2009 andFebruary 2012, she was Chief Operating Officer of Iberdrola SA’s International Division with responsibility
for the United Kingdom and the United States. She also headed Iberdrola Engineering and Construction
from January 2009 to January 2011. Previously, she served as General Manager of IBM Spain and Portugal(2001-2009). In 2005 her area of responsibility was extended to encompass Greece, Israel and Turkey as
well. Between 2000 and 2001, she was executive assistant to the Chairman and CEO of IBM Corporation.
From 1998 to 2000, Ms Moraleda was General Manager of INSA (a subsidiary of IBM Global Services).
From 1995 to 1997, she was HR Director for EMEA at IBM Global Services and from 1988 to 1995 held
various professional and management positions at IBM España.
Ms Moraleda is also a member of various boards and trusts of different institutions and bodies. She ismember of the academy of “Ciencias Sociales y del Medio Ambiente” of Andalucía (Spain), member ofthe Board of Trustees of MD Anderson Cancer Centre in Madrid and member of the Board of the global
alumni association of IESE Business School. In May 2017 she was inducted as a member of the Spanish
Royal Academy of Economic and Financial Sciences.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Member of the Board of Directors of Vodafone
plc;-- Member of the Board of Directors of
Caixabank SA;-- Member of the 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 MøllerMærsk A/S;-- Member of the Global Advisory Board of Kearney.

04

FORMER MANDATESFOR 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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4. Corporate Governance /4.1 Management and Control

Claudia Nemat
CURRICULUM VITAE

54 years old
Director since 2016,
Re‑elected in 2022
Independent

Claudia Nemat has been a member of Deutsche Telekom’s Board of Management since 2011. She was
responsible for the Board area Europe and Technology until the end of 2016 and has been responsible forTechnology and Innovation since January 2017.
Before joining Deutsche Telekom AG, Claudia Nemat spent 17 years working McKinsey&Company where
she was elected Partner in 2000, and Senior Partner in 2006. She co-led McKinsey’s global Technology
Sector and had a number of interim management roles with global IT clients, ensuring disaster recoveryof large IT projects, and acting as interim CEO.
She focuses on digital transformation, the impact of new technologies like artificial intelligence on businessmodels, our work and lives, technology and product innovation, as well as IT transformation, security andcrisis management.
She has worked in different European countries as well as the United States and was a member of theSupervisory Board of Lanxess for several years. Since 2016, she has been a member of the Board of
Airbus, as well as the Supervisory Board of Airbus Defence.
Claudia Nemat studied physics at the University of Cologne and taught at the Institute of Mathematics
and Theoretical Physics.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Member of the Board of Directors of Airbus
Defence and Space GmbH;-- Member of the Management Board of Deutsche
Telekom AG;-- Chairperson of the Supervisory Boardof Deutsche Telekom IT GmbH;-- Member of the University Council of Universityof Cologne;-- Member of the Executive Committee of Deutsche
Gesellschaft für Auswärtige Politik e.V.;-- Member of the Supervisory Board of T-Systems
International GmbH;-- Vice-Chairwoman of the Supervisory Board of
Deutsche Telekom Security GmbH.

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FORMER MANDATESFOR THE LAST FIVE YEARS

4. Corporate Governance /4.1 Management and Control

Irene Rummelhoff
CURRICULUM VITAE

56 years old
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 Norwegian continental
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 division anddriving the development of the 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 (aluminumand 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.

04

FORMER MANDATESFOR THE LAST FIVE YEARS-- Member of the Board of Directors and Deputy
Chair of Norsk Hydro ASA (until May 2022)-- Executive Vice-President, New Energy Solutions
division of Equinor ASA (until August 2018).

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4. Corporate Governance /4.1 Management and Control

CHANGES IN THE BOARD COMMITTEE IN THE COURSE OF 2022

Antony Wood
CURRICULUM VITAE

56 years old
Director since2022 (appointed
at December 2022
Board of Directors’
meeting, subject toappointment by 2023
AGM)
Independent

218

Tony Wood was Chief Executive of Meggitt plc from 2018 to 2022 having joined the company in 2016.
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, and a Director of ADS Group
Limited, the trade association for the Aerospace, Defence, Security and Space sectors in the UK having
served as its President from 2020 to 2022.
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 part of 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 Engineering from theOpen University in the UK and a Master of Business Administration from INSEAD in France. He is a Fellowof 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 ADS Group
Limited;-- Contractor of ATL Partners.

Airbus / Universal Registration Document 2022

FORMER MANDATESFOR THE LAST FIVE YEARS-- CEO of Meggitt plc (until September 2022);-- President of ADS Group Limited (until
January 2022).

4. Corporate Governance /4.1 Management and Control

Changes in the composition of the Board in the course of 2022
Until 2022 AGM

From 2022 AGM

Name

Age

StatusName

Age

StatusMr. Carlos TAVARES

63

Member

Ms. Irene RUMMELHOFF

55

MemberLord DRAYSON (Paul)

61

MemberFrom December Board
Name

Age

StatusMr. Tony WOOD

56

MemberChanges in the Board committees in the course of 2022
Until 2022 AGM

From 2022 AGM

Committee

Name

StatusName

StatusRemuneration,
Nomination and
Governance

Lord DRAYSON (Paul)

MemberMr. Mark DUNKERLEY

MemberEthics, Complianceand Sustainability

Lord DRAYSON (Paul)

Member

Ms. Irene RUMMELHOFF

MemberIndependent 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 2022
Board of Directors Meetings
Thirteen Board of Directors (the “Board”) meetings (including
ad hoc calls) were held in 2022. The average attendance rate atthese meetings was 96%. In addition, as it is the case every year,
the Board was informed in due time of any relevant developments
through reports from the CEO in between meetings of the Board.
Regular non-executive sessions took place at the end of themeetings of the Board.
Throughout the year, the Board discussed all matters ofimportance for the Company’s activities and there was acontinual focus on geopolitical issues, including Russia’s
invasion of Ukraine and its impact on the Company’s operating04

environment, as well as the situation in China and the US.
Convened on an ad hoc basis early in April 2022, the Board
dedicated a session to perform a comprehensive review of thepotential impacts of Russia’s invasion of Ukraine on Company
business and, more generally, on the aerospace industry.
Regular updates on relevant developments in that regard were
provided to the Board during the year. The Board continued
to review and discuss the operational and commercial statusof programmes, as well as the overall financial situation of theCompany in a context where the COVID-19 situation significantly
improved but was followed by international sanctions and theenergy crisis that aggravated already existing tensions on
logistics, materials, components and skilled workforce.
During the year, the Board reviewed the Company’s financial
results and forecasts. After two consecutive years without
dividend payment, the Board decided to submit a dividend
proposal to the 2022 AGM. The Board maintained an emphasison both Corporate Audit and ERM and reinforced its emphasis
on internal controls.
With regard to the commercial aircraft business, in May 2022
the Board reviewed and supported the evolution of the single
aisle industrial footprint to a rate of 75, including the creationof a new single aisle final assembly line in Mobile, Alabama (theUS), and an A321 capability upgrade in Toulouse (France). The
Board received regular updates on the status of the production
ramp-up of the different aircraft families and on supply chain
issues, as well as on their impact on the number of deliveries.
In that context, the Board notably discussed and supported therevision of the Company’s 2022 target for commercial aircraft
deliveries in July and the decision to no longer maintain thattarget in December 2022 as recommended by management.
In addition, in-depth analyses on commercial aircraft sales
contracts, approval processes and relations with customers
were presented to the Board and discussed.

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219

4. Corporate Governance /4.1 Management and Control

In relation to Airbus Defence and Space, the Board regularly
reviewed the financial status of the Division, and the status of
the key programmes, including the progress of the FCAS. There
were in-depth discussions about the Company’s strategy in
Defence, Space Systems and Connected Intelligence, and on
critical skills identification and management.
For Airbus Helicopters, the Board focused its review on thefinancial situation of the Division, competition, progress madeon major projects, including military programmes and nextgeneration rotorcraft.
The Board dedicated several sessions in 2022 to reviewing
the strategic plan implementation status and key aspectsof the Company’s strategy, including in Defence and Space
as mentioned above. As it is the case every year, the Board
had a strategy off-site meeting. In 2022, this meeting took
place in Airbus UK’s Broughton premises where the Board
met with the Company’s local teams and visited the industrialsite. There was a focus on Airbus’ single aisle operations,with a presentation of the wing assembly industrial system.
The Board also visited the Innovation Space facility where
key initiatives on people and engagement were presented,
as well as the single aisle pre-equipping flowline, where
the progress of Airbus’ safety journey was addressed. The
Board also discovered the Advanced Manufacturing ResearchCentre that is the home of Airbus’ flagship Wing of Tomorrowprogramme, a crucial part of Airbus’ R&T portfolio to develop
the new technologies, materials and skills to enable the next
generation of decarbonised aircraft.
In addition, the newly appointed Board Members (Irene
Rummelhoff and Antony Wood), joined by other members of
the Board of Directors (in particular René Obermann, StephanGemkow and Mark Dunkerley), followed the Airbus induction
programme aiming at providing relevant information to support
them in their non-Executive Director roles. Three meetings
were organised in 2022 as part of this induction programme:in Manching (Germany) at Airbus Defence and Space, inMarignane (France) at Airbus Helicopters and in Blagnac(France) at Airbus Commercial Aircraft. During those meetings,
presentations on business strategy and upcoming challenges
were made by top Company executives. They were also an
opportunity for Board Members to interact with talents (fromtop and middle management) and learn more about Company
activities such as:–– Eurofighter Final Assembly Line (FAL), the FCAS lab, theEurodrone plateau and the Intelligence activities (OneAtlas
and Pléiades Neo programme) for Airbus Defence and Space;–– th e R a c e r, D i s r u pti ve l a b a n d F l i g ht l a b, th e
H160 / H225 / H125 / H130 FALs for Airbus Helicopters; and–– flight test operations activities and aircrafts and the Airspacecustomer showroom for Airbus Commercial Aircraft.
Eager to engage with Airbus’ teams globally, in 2022 René
Obermann also visited the sites of Getafe (Spain) and Hamburg(Germany).
Throughout 2022, the Board of Directors frequently addressedand discussed the Company’ strategy in relation to its employees.
This included critical skills and competences identification andmanagement, remuneration and retention schemes, employer
attractiveness as well as inclusion and diversity (including
gender diversity). In parallel, the Board performed regular talentreviews, including in-person meetings with a number of talents
identified as part of the top management succession planning.

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On the recommendation of the RNGC, the Board selected two
new Board Members who joined in 2022 (Irene Rummelhoff
and Antony Wood) and continued to keep an active pipelineof talent for future changes within the Board, with a focus oncontinuing improving (gender) diversity.
On the recommendation of the RNGC, the Board approved theincrease in the CEO remuneration implemented in 2022 in thecontext of his renewal and that of the non-Executive Directors
for implementation in 2023.
The Board also discussed several sustainability matters of major
importance to the Company such as:–– safety: the Board performed a bi-annual review of productsafety related issues, received regular updates at quarterly
meetings of the Board of Directors and ad hoc updates on
relevant developments in between meetings of the Board of
Directors. In addition, the Board visited the newly created
Airbus safety promotion centre in Blagnac (France);–– climate: the Board also approved the Company’s engagementwith the SBTi for the assessment of its GHG targets, including
the establishment of a science-based target for its scope 3.
In addition, an update on Airbus cybersecurity matters, including
the cybersecurity governance model, was presented to theBoard and discussed.
Following the settlements reached with the French, UK and
US authorities in January 2020 in relation to the Serious
Fraud Office / Parquet National Financier / US Departmentof Justice / US Department of State investigations, the Boardof Directors and its Ethics, Compliance and Sustainability
Committee remained fully committed and provided full support
throughout the year to the post-settlement activities. The
Board continued (and will continue) to pay close attention to theCompany’s active engagement with its shareholders, so that
Airbus’ approach to governance, compliance and sustainability
is well understood and reflects shareholders’ expectations to
the extent possible. In 2022, in addition to the formal general
meeting, the Chairman and the lead Independent Director,
together with the Airbus team, sought regular engagementswith major shareholders in order to understand their viewsin particular on governance, remuneration, key sustainability
matters and performance against the Company’s strategy.

Board Evaluation 2022
The Board of Directors implemented a continuous evaluation
process based on a three-year cycle. As part of this process,every three years, a formal evaluation of the functioning of
the Board of Directors and its Committees is conducted withthe assistance of a third-party expert. In the year succeeding
such an outside evaluation, the Board of Directors performs
a self-evaluation and focuses on the implementation of
the improvement action plan resulting from the third-party
assessment. In the intervening second year, the GeneralCounsel, being also the Secretary of the Board, issues aquestionnaire and consults with Board Members to establish
an internal evaluation which is then discussed with them.2022
was the second year of the three-year cycle that started in
2021. In November 2022, the Board of Directors, therefore,
carried out an internal evaluation based on a questionnaire
issued by the General Counsel and circulated to each Board
Member. The questionnaire covered: Board composition, thefunctioning and contribution of the Board and its Committees,
the topics covered at Board level, the dynamic between the
Board and management and further among Board Members,

4. Corporate Governance /4.1 Management and Control

Board decision-making processes, Board and management
succession planning, Board priorities and Board Secretary
support.

Enterprise Risk Management System”. Please refer to Annex Eof the Board Rules for a complete list of responsibilities of the
Audit Committee.

In this internal evaluation, the Board confirmed its overallsatisfaction with the progress made in the implementation of
the “Improvement Action Plan” that resulted from the formal
evaluation conducted by a third-party expert, Korn Ferry, in
2021.

The Chairman of the Board of Directors and the CEO are invited
to the Audit Committee meetings. The CFO and the Head of
Accounting Record to Report are requested to attend meetings
to present management proposals and to answer questions.
Furthermore, the Head of Corporate Audit & Forensic and theChief Ethics & Compliance Officer are requested to report to
the Audit Committee on a regular basis.

The Board Members expressed their overall satisfaction
regarding the Board dynamic and efficiency. The Directors,
notably, valued the diversity of expertise, the high level ofengagement of fellow members, as well as the constructive
and open debates under the Chairman’s leadership. They
welcomed the organisation of awareness sessions on specifictopics and, for those interested, the quality of the induction
programme. They highlighted the necessity to continue further
improving gender diversity and reinforcing the Board’s defence
and technological expertise.
Following the last review, the Board has dedicated more time toin-depth strategic debates and sustainability issues. Discussions
on other key topics such as supply chain management,
innovation, climate change and capital allocation will be further
enhanced.
Finally, the outcome of the questionnaire notably emphasised thetrustful and supportive equilibrium of power between the Boardand management. The Board highlighted that participationof management in meetings of the Board of Directors has
increased. The Directors emphasised that relationships withthe management team beyond the Executive Committee should
be reinforced, notably to support the Board and RNGC’s
continuous work on the succession plan.

4.1.1.2 Board Committeesa) The Audit Committee
The Audit Committee has four (4) Members and is chaired by
an Independent Director who is not the Chair of the Boardof Directors or a current or former Executive Director of theCompany. The Chair of the Audit Committee shall be, andthe other members of the Audit Committee may be, financial
experts with relevant knowledge and experience of financial
administration and accounting for listed companies or otherlarge legal entities.
Pursuant to the Board Rules, the Audit Committee, whichis required to meet at least four times a year, makes
recommendations to the Board of Directors on the approvalof the Annual Financial Statements and the interim accounts(Q1, H1, Q3), as well as the appointment of external auditors
and their remuneration. Moreover, the Audit Committee has
responsibility for verifying and making recommendations to
the effect that the internal and external audit activities arecorrectly directed, that internal controls are duly exercised andthat these matters are given due importance at meetings of theBoard of Directors. Thus, it discusses with the auditors theiraudit programme and the results of the audit of the Financial
Statements, and it monitors the adequacy of the Company’s
internal controls, accounting policies and financial reporting. It
also oversees the operation of the Company’s ERM system andkeeps a strong link to the Ethics, Compliance and Sustainability
Committee. For further details in this regard, see “– 4.1.3:

In 2022, this Committee met five times with an average attendance
rate of 100%. It fully performed all its duties and discussed all
the items described above. In particular, it performed reviews ofinternal controls, corporate audit (including major findings andaudit plan for 2022), accounts (i.e. 2021 full year accounts, 2022
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
reviewed Airbus Bank activities and regular ERM, legal andcompliance updates were presented and discussed in meetings.

04b) The Ethics, Complianceand Sustainability Committee
To reinforce the role and involvement of the Board of Directors
on sustainability-related topics, the remit of the former Ethics& Compliance Committee established in 2017 was extended tosustainability matters in July 2020. The Committee was renamed
the Ethics, Compliance and Sustainability Committee (“ECSC”)
and the Board Rules have been amended accordingly. Pursuant
to the Board Rules, ECSC which is required to meet at least
four times a year, the main mission of the ECSC is to assist theBoard of Directors in overseeing the Company’s culture andcommitment to ethical business, integrity and sustainability.
The ECSC is empowered to monitor the Company’s Ethics &Compliance programme, organisation and framework to makesure that the Company’s Ethics & Compliance governance iseffective (including all associated internal policies, procedures
and controls). This includes the areas of money laundering andterrorist financing, fraud, bribery and corruption, trade sanctions
and export control, data privacy, procurement and supply chain
compliance and anti-competitive practices. The ECSC is also
empowered to oversee the Company’s sustainability strategy
and effective governance and ensure that sustainability related
topics are taken into account in the Company’s objectives andstrategy.
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 to the Audit Committee any necessary
disclosures on issues or alleged ethical and compliancebreaches that are financial and accounting-related. The ECSC
maintains a reporting line with the Chief Ethics & Compliance
Officer, who attends every ECSC meeting and is requested toprovide periodic reports on its activities.
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 are invited to attend the meetings. From time to time,
independent external experts are also invited to attend ECSC
meetings.

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In 2022, the ECSC met four times with an average attendance
rate of 95%. All of the above described items were discussed
during the meetings and the ECSC fully performed all its duties.
Following the settlements reached with the French, UK and US
authorities in January 2020 in relation to the SFO / PNF / US
DoJ / US DoS investigations, the ECSC maintained a sharp
focus on post-settlement activities (including compliance andexport control reviews). The ECSC was notably provided withregular updates on the status of the monitoring of the AFA
and on the activities of the ITAR Special Compliance Officer,
appointed under the Consent Agreement with the US State
Department. Airbus’ competition law practice was presented
to the ECSC and discussed.
Half of the ECSC work was dedicated to Sustainability topics.
In particular, the ECSC discussed the Company’s scope 1& 2 decarbonisation target acceleration (from a well below
2°C trajectory to a 1.5°C one by 2030). It also discussed theestablishment of science-based target for the Company’s
scope 3, and its consistency compared to the ATAG (aninternational sectoral body) and (later in 2022) ICAO’s long-term
aspirational goal of the aviation sector achieving net-zero carbon
emissions by 2050; it discussed the Company’s engagementwith the SBTi for the assessment of these scope 1, 2 & 3 targets;and the Airbus’ human rights policy. The ECSC reviewed thesustainability roadmaps (including towards a sustainable supply
chain), 2022 key priorities, dashboard and key performanceindicators. In addition, the ECSC reviewed stakeholders’expectations on sustainability issues including in relation to how
environmental, social and governance matters affect defence.

c) The Remuneration, Nomination
and Governance Committee
Pursuant to the Board rules, besides its role described in
section 4.1.1 above, the RNGC consults with the Chairman
and the CEO with respect to proposals for the appointmentof the members of the Executive Committee, and makes
recommendations to the Board of Directors regarding theappointment of the Secretary to the Board of Directors. The
RNGC also makes recommendations to the Board of Directors
regarding succession planning (at Board of Directors, Executive
Committee and Senior Management levels), remuneration
strategies and long-term remuneration plans. Furthermore, the
RNGC oversees contractual matters in relation to the membersof the Board and the Executive Committee, including the terms
and conditions of the relevant contracts, and the preparationof the remuneration policy for approval by the Board. The rules
and responsibilities of the RNGC have been set out in the Board
rules.
In addition, the RNGC reviews the Company’s top talent,
discusses measures to improve engagement and to promote
diversity, as well as reviewing the remuneration of the Executive
Committee members, the Long-Term Incentive Plans (“LTIP”),
and the variable pay for the previous year.
Finally, the RNGC performs regular evaluations of the Company’s
corporate governance and makes proposals for changes to theBoard Rules or the Articles of Association.
Unless otherwise decided, the Chairman of the Board of Directors
and the CEO are invited to attend meetings of the RNGC. The
Chief Human Resources Officer (“CHRO”) is requested to attend
meetings to present management proposals and to answer

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questions. The CEO leaves the meetings when the RNGC
discusses his/her remuneration or personal situation.
Pursuant to the Board Rules, the Chair of the RNGC automaticallyfulfils the function of “Lead Independent Director”. In thisrole, 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 performanceby the Board of Directors and (iii) acting as an intermediary for,and between, the other Directors when necessary.
The RNGC is required to meet at least four times a year. In 2022,
it met five times with an attendance rate of 95%. It discussed allof the above-described items during the meetings and it fully
performed all its duties. In particular, the RNGC worked on the
Board of Directors’ succession plan, with a strong focus ondiversity (including gender diversity and skills mix). The RNGC’s
work notably led to the appointment of two new Board Members
in 2022, including one female. The Company constituted an
active pipeline of talent for future changes within the Board.
The RNGC work also included reviewing the membership of theBoard Committees. Changes to the composition of the ECSC
and RNGC were implemented in 2022.
Assisted by a specialised firm, the Committee carried out the
search process for a successor for the position of Chief Financial
Officer following the announcement of Dominik Asam’s decision
to resign, evaluating both internal and external candidates. The
RNGC also held regular discussions on the Executive Committee
succession roadmap, on talent management (development,
engagement and retention) and diversity at top managementlevels. In light of benchmarks performed by third-party experts,
the RNGC further discussed the structure and level of the CEO
remuneration in the context of his renewal in 2022, and reviewed
the remuneration of the non-Executive Directors.

4.1.1.3 The Executive Committeea) Nomination and Composition
The Executive Committee of Airbus (the “Executive Committee”)
is chaired by the Chief Executive Officer and its members areappointed on the basis of their performance of their individual
responsibilities as well as their respective contribution to theoverall interest of Airbus.
The CEO proposes all 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 theUnited Kingdom, where these main industrial centres arelocated); 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.

4. Corporate Governance /4.1 Management and Controlb) Role of the CEO and Executive Committee
The CEO is responsible for executing the strategy, as approvedby the Board of Directors, and for managing the day-to-day
operations of the Company’s business with the support of the
Executive Committee (“EC”) and its executive leadership teamthrough Executive Leadership Meetings (“ELM”) in which the
EC members participate. The CEO shall be accountable for theproper execution of the day-to-day operations of the Company’sbusiness.
ELMs are held on a regular basis and aim at advising the CEO on
his day-to-day role, as well as ensuring that EC members reportback on business progress, updates and concerns, addressing
Company-wide topics including corporate matters, approving
all vacancies and promotions above certain levels including
with a focus on diversity.
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, policy

matters, communications and market disclosures. It is also theforum where the information or requests for approval destinedfor the Board of Directors are discussed and approved. The EC
members shall jointly contribute to the overall interests of theCompany, in addition to each member’s individual operationalor functional responsibility within the Company.
The EC comprises the heads of the Divisions and key functionsof the Company.
The CEO is the only Executive Director within the Board of
Directors and represents the Company on the Board of Directors.
Depending on the topic, he usually asks the responsible EC
member to join him at Board meetings to present the financials(CFO), programme / product topics (Division heads), HR matters(CHRO) or any other topic where a specialist is needed. Thisapproach allows the Board Members to get to know the EC
members and equips them to make judgements when it comesto decisions about key positions.

04c) The Executive Committee in 2022
The EC comprises the heads of the Divisions and key functionsof the Company.
The EC met four times during 2022.

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COMPOSITION OF THE EXECUTIVE COMMITTEE AND TOP MANAGEMENT AS OF 31 DECEMBER 2022
Name

Start of term

Principal Occupation

Guillaume Faury

2018

Chief Executive Officer Airbus

Dominik Asam

2019

Chief Financial Officer (until March 2023)

Thierry Baril2012

Chief Human Resources Officer

Bruno Even

2018

Chief Executive Officer Airbus Helicopters

Alberto Gutiérrez

2021

Chief Operating Officer

John Harrison

2015

General Counsel

Catherine Jestin

2021

Executive Vice-President Digital and Information Management

Julie Kitcher

2019

Executive Vice-President Communications and Corporate Affairs

Sabine Klauke

2021

Chief Technical Officer

Philippe Mhun

2019

Executive Vice-President Programmes and Services

Christian Scherer

2019

Chief Commercial Officer and Head of Airbus International

Michael Schöllhorn

2019

Chief Executive Officer Airbus Defence and Space

Antoine Bouvier(1)2019

Head of Strategy, Mergers & Acquisitions and Public Affairs

C. Jeffrey Knittel(1)2021Chairman and Chief Executive Officer Airbus Americas

George Xu(1)2018

Chief Executive Officer Airbus China

Note: Status as per 31 December 2022. The professional address of all Members of the Executive Committee for any matter relating to Airbus is Mendelweg 30, 2333 CS Leiden,
The Netherlands.
(1) Members of the Company’s top management regularly invited to attend Executive Committee meetings.

Guillaume Faury – Chief Executive Officer Airbus

Thierry Baril – Chief Human Resources Officer(see above under “– 4.1.1.1 Board of Directors”).

Thierry Baril was appointed Chief Human Resources Officer of
Airbus on 1 June 2012.

Dominik Asam – Chief Financial Officer (until
March 2023)
Until his decision to leave the Company on 3 March 2023,
Dominik Asam was Chief Financial Officer (CFO) of Airbus anda Member of the Executive Committee.
Dominik Asam joined Airbus in April 2019 from Munich-based
Infineon Technologies AG, where he had been CFO since 2011.
During eight years he was responsible for functions includingGroup Controlling, IT, Treasury, Investor Relations, Compliance& Risk Management, Export Control and Sustainability andBusiness Continuity.
Previously, Dominik Asam was Head of Group Controlling at
RWE AG in 2010.
Between 2005 and 2010 he held various positions at Siemens AG
such as CEO of Siemens Financial Services and Corporate VicePresident and Treasurer.
From 2003 to 2005, Asam headed Investor Relations, Mergers &Acquisitions and Strategy at Infineon Technologies.
Dominik Asam began his professional career in 1996 in theInvestment Banking Division of Goldman Sachs Inc. withpostings in Frankfurt, London and New York.
A graduate in Mechanical Engineering from the Technical
University of Munich and the École Centrale Paris, Dominik
Asam holds a Master’s in Business Administration from INSEAD(European Institute of Business Administration).

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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.

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.
Thierry Baril holds a University Degree in Personnel Management(Diplôme Universitaire de Technologie en Gestion des Entreprises
et des Administrations), as well as a Business Page 2 of 2 Degreein Human Resources Management and Development from theInstitut de Gestion Sociale (IGS) in Paris.
Thierry Baril was born in February 1965 in Suresnes, France. In
2007, he was appointed as a Chevalier de l’Ordre National duMérite and was further commended as a Chevalier de l’Ordre
National de la Légion d’Honneur in 2012. In 2013, he was named
HR Director of the year by Hudson, Le Figaro Economie andCadremploi Group.

Bruno Even – Chief Executive Officer –Airbus Helicopters
Bruno Even was appointed Chief Executive Officer (CEO) of
Airbus Helicopters as of 1 April 2018. He is a Member of the
Airbus Executive Committee.
He joined the Company from Safran, where he held various
management positions at the Helicopter Engines and Electronic& Defence businesses. Since 2015, he served as Chief Executive
Officer of Safran Helicopter Engines (ex-Turbomeca). Prior tothat position, he was CEO of Safran Electronics & Defence (exSagem).
Bruno Even graduated from the École Polytechnique and began
his professional career in 1992 at the French Ministry of Defence,
where he was in charge of developing the space component for
the Helios II satellite.
In 1997, he transferred to the Ministry of Foreign Affairs to
become technical advisor for the Director of Strategic Affairs,
Security and Disarmament. He moved to the private sector andjoined Safran in 1999.

Alberto Gutiérrez – Chief Operating Officer
Alberto Gutiérrez has been Chief Operating Officer (COO) of
Airbus since 1 July 2021 and is a member of the Company’s
Executive Committee.
He leads the production, quality and procurement organisations.
His overriding goal is to ensure the speed, efficiency and qualityof aircraft production at Airbus.
As the Company embarks on an era of digital and series
manufacturing, Alberto’s role is to implement continuous
operational excellence and to develop the production systemof the future. In addition, he is Head of Airbus Spain, in chargeof overseeing the Company’s overall business activities in the
country.
He was previously Head of Military Aircraft within Airbus Defence
and Space and a member of the Division’s Executive Committee
since 1 January 2019, after having led Operations for Airbus
Military Aircraft since July 2017, and Combat Air Systems since
January 2016.
He was CEO for Eurofighter GmbH from 2013 to 2015, and Chief
Operating Officer (COO) for Airbus Military from 2007 to 2013.

In this role he was responsible for the worldwide operationsof the military aircraft business, including manufacturing andproduction in all the different sites of the company, setting up the
A400M Final Assembly Line in Seville, the A330 Tanker Conversion
Centres in Madrid, Brisbane (Australia) and Bournemouth (UK),the revitalisation of the Indonesian Aerospace Industry and therestructuring of the company’s Polish subsidiary in Warsaw
PZL as well as the defence business in Portugal through thePortuguese Company OGMA.
Alberto Gutiérrez´s career started in 1985 as a young engineer
in the former CASA in Getafe, working and gaining experience indifferent positions in Manufacturing and Production, IT, Planningand Programmes.
Alberto Gutiérrez has a Telecommunications Engineering degreefrom the Universidad Politécnica of Madrid and holds a masterin Information System Management.

John Harrison – General Counsel

04

John Harrison has been General Counsel since June 2015 andhe is a member of the Airbus Executive Committee.
Solicitor of the Supreme Court of England & Wales, John
Harrison completed his academic studies at the University of
McGill, Montréal, Canada. He holds a Bachelor LLB (Hons) and
Masters LLM of Laws degree.
John Harrison began his career in 1991 at the international law
firm Clifford Chance, working consecutively in their London, NewYork and Paris offices.
He joined Airbus then Technip SA where he served as Group
General Counsel and Member of the Executive Committee from2007 to 2015.
Prior to joining Technip, Mr Harrison fulfilled various senior legal
positions in Airbus companies over a ten year period culminating
his tenure from 2003 to 2007 as General Counsel of the EADSDefence Division.
John Harrison was born on 12 July 1967 in the United Kingdom.

Catherine Jestin – Executive Vice-President
Digital and Information Management
Catherine Jestin has been Executive Vice-President Digital andInformation Management at Airbus since 1 July 2021 and is amember of the Company’s Executive Committee.
The main focus of Catherine’s organisation is to foster digital
innovation across Airbus’ industrial ecosystem and its products
and services portfolio, accelerating data analytics, artificial
intelligence, automation and services for customers as well as
digital security for the Company.
Catherine works to reinforce the transversal cooperation
across Airbus functions company-wide in order to continue thesuccessful deployment of the DDMS programme, established toenable co-design capabilities and digital continuity system-wide.
Catherine had previously held the position of Chief Information
Officer (CIO) at Airbus since March 2020. In this role, she was
responsible for driving state-of-the-art Information Technology
systems and solutions in support of Airbus employees, customers
and suppliers.

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4. Corporate Governance /4.1 Management and Control

Prior to this position, Catherine was Chief Information Officer
at Airbus Helicopters, a role that she held from July 2013 to
February 2020.
Before joining Airbus, Catherine held a variety of positions,
between 2007 and 2013, at Rio Tinto in Montreal, Canada within
the field of Information Systems & Technology (IS&T). Catherine
also spent 17 years at Accenture and was nominated Partnerin 2002, a position that she held for five years

Julie Kitcher – Executive Vice-President
Communications and Corporate Affairs
Julie Kitcher is EVP Communications and Corporate Affairs of
Airbus and a member of the Executive Committee, reportingto the CEO. Julie also serves as the Chief of Staff to the CEO.
Julie heads Communications. In addition, she drives Airbus
ambition and contribution to sustainable aerospace. Her rolealso oversees and coordinates the transformation agenda ofAirbus, Performance Management, Corporate Audit and Internal
Controls.
Julie has over 20 years of experience at Airbus. She has held anumber of roles in Finance including Financial Analyst, Corporate
Planning and Business Controlling.
Most recently and prior to her current position, Julie was the
Head of Investor Relations and Financial Communication. Under
Julie’s leadership, Airbus was awarded the “Most Honoured
Company” status in the Institutional Investor All Europe
Executive Team survey four years in a row -2015 to 2018. As
part of this recognition, Julie was named “Best Investor Relations
Professional” in the Aerospace & Defence sector for the same
period.
She also previously held a role in GE Capital Equipment Financein the UK. Julie is a Chartered Management Accountant (CIMA)
with an MSc from ESC Skema (Lille).

Sabine Klauke – Chief Technical Officer
Sabine Klauke has been Chief Technical Officer at Airbus since
1 July 2021 and is a member of the Company’s Executive
Committee.
In this role, Sabine drives the Company’s ambition behinddelivering bold and breakthrough technologies to build thefuture of aerospace. She also leads a team of more than 11,000
Airbus engineers across the globe who design, develop, certify
and ensure continuing airworthiness of all Commercial Aircraft
products and services.
Previously, Sabine was Head of Engineering within Airbus
Defence and Space and a member of the Division’s Executive
Committee. In this capacity, she was responsible for all
engineering activities within the Defence and Space division andin charge of its product and services portfolio. By managing thetechnology, development and innovation roadmap, she playeda key role in preparing the future of Airbus Defence and Space.
Prior to this position, she served as Head of Programmes
Customer Services: a responsibility she held for the A330/
A340 programmes since 2015. Sabine joined Airbus in 2002,
where she has held positions of increasing responsibility withinmanufacturing engineering, production, product development

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programmes, development processes and change andinnovation projects within the Airbus Commercial Aircraft division.
From 1998 to 2002 Sabine worked at DELMIA, a brand of
Dassault Systèmes, where she carried out the deployment ofdigital manufacturing software and supported the developmentof the consulting and services department with customers in theautomotive and the aerospace industries.
Sabine has a PhD in Mechanical Engineering from the Universityof Technology (TU) in Dresden and is a graduate of the INSA
Hauts de France (formerly known as École Nationale Supérieured’Ingénieurs en Mécanique Énergétique in Valenciennes(ENSIMEV)).

Philippe Mhun – Executive Vice-President
Programmes and Services
Philippe Mhun was appointed as Chief Programmes & Services
Officer for Airbus Commercial Aircraft, effective 1 January 2019,
and a Member of the Company’s Executive Committee.
In his previous role as Head of Customer Services since
October 2016, Philippe Mhun was responsible for all Airbus
support and services activities for airline customers, lessors,
MROs and operators, ranging from maintenance and engineering
to training, upgrades and flight operations but also material
management and logistical support. This included the supervisionof the Services Business Unit and affiliated subsidiaries, such as
Satair, Navblue, Airbus Interiors Services and Sepang. For the
past two years, Philippe has initiated and implemented a majortransformation programme focusing on Customer Satisfaction,
Services development and digital enablers such as Skywise
applications.
Prior to this assignment, Philippe was Senior Vice-President
Procurement for Equipment, Systems and support, a position
he held since 2013.
Philippe joined Airbus in November 2004 as Vice-President A380
Programme within Customer Services to prepare and support
the A380 entry-into-service. He then became Vice-President
Programmes in Airbus Customer Services leading Single Aisle,Long Range, Widebody, A380 and A350 Programmes together
with e-operations and supplier support activities.
Before joining Airbus, Philippe held various positions within UTA
and following the merger in 1993, within Air France, starting
as a Structure Engineer for Boeing 747 at UTA all the way up
to becoming the Head of Long-Haul Fleet Engineering and
Maintenance in Air France. From 1986 to 2004, Philippe wasinvolved in new programmes’ entry-into-service, engineeringand maintenance at all levels of the Company.
Philippe Mhun holds a degree from the Applied Sciences National
Institute (INSA Lyon) as a mechanical engineer.

Christian Scherer – Chief Commercial Officer
and Head of Airbus International
Christian Scherer was appointed Airbus Chief Commercial
Officer in September 2018 and is a Member of the Company’s
Executive Committee. He is also heading Airbus International.
He was previously Chief Executive Officer of ATR, a position heheld since November 2016.

4. Corporate Governance /4.1 Management and Control

Prior to this, Christian was Executive Vice-President and Headof Airbus Group International, responsible for driving the overall
Airbus Group internationalisation strategy.
Christian started his professional career in 1984 when he joined
Airbus Industrie as a Commercial Contracts Manager. He wasseconded to the US between 1987 and 1994 as Vice-President
Contracts of Airbus North America, responsible for pricing,financial performance, negotiation and implementation of all
sales transactions in North America.
On his return to headquarters, as Vice-President Leasing
Markets, he developed and managed an integrated sales
division covering all commercial activities dealing with operating
leasing companies and other financial institutions worldwide.
In 1999, he was appointed Vice-President Contracts and Pricing
worldwide while retaining leadership of the Leasing Markets
Division and in 2003 he also became the Deputy Head ofCommercial.
Following his time in Commercial, he became Head of Strategy
and Future Programs at Airbus, responsible for defining Airbus’
long-term strategic objectives and for driving the genesis of
future aircraft product offerings and programmes, such as the
A320neo, as well as Airbus’ international development in termsof the US final assembly lines.
In 2012, he was appointed Head of Sales & International
Operations at Cassidian in Munich, Germany, responsible
for Sales, Marketing, Strategy and Cassidian’s International
Subsidiaries including Brazil, India, KSA, UAE, UK and US.
Upon integration of Airbus’ Defence, Space and Military aircraftbusinesses, he became the Head of Marketing & Sales ofAirbus Defence and Space and Managing Director of Airbus
Defence and Space GmbH. In that role, he held the overall
responsibility for all Sales & Marketing activities. He also chaired
BDLI’s defence and security forum whilst being a member ofthe BDLI presidium.
Born in 1962 in Duisburg, Germany, and raised in Toulouse,
France, Christian Scherer holds an MBA from the University ofOttawa and graduated from the Paris Business School (ESCP)in 1984.

Michael Schöllhorn – Chief Executive Officer
Airbus Defence and Space
Michael Schoellhorn has been Chief Executive Officer (CEO) of
Airbus Defence and Space since 1 July 2021 and is a member of
Airbus’ Executive Committee, responsible for Airbus’s defence,
space, unmanned air services and connected intelligence
activities.
Previously, he was Airbus Chief Operating Officer (COO) anda member of the Company’s Executive Committee. In thisposition, he led the production, quality, procurement andinformation management organisations, transforming andbuilding the production system of the future.
Michael joined Airbus in February 2019 from BSH Home
Appliances GmbH in Munich, where he was COO and a memberof the BSH Management Board from 2015.

Michael began his career in 1984 in the German armed forces,
where he served as an officer and a helicopter pilot until 1994,
with assignments in Germany and the US. Michael worked
in academia as a research assistant at the Helmut Schmidt
University (University of the German armed forces) in Hamburg(1994-1999). He started out his career with Bosch in 1999 andheld various senior management positions in the automotive
sector in the US, the Czech Republic and Germany before being
appointed EVP for Manufacturing and Quality in 2012.
Michael is President of BDLI, the association of the German
aviation industry as well as a presidium member of BDI, theassociation of the German Industry.
He is Chairman of the Supervisory Board of Airbus
Operations GmbH, Managing Director of Airbus Defence andSpace GmbH, member of the Board of Directors of Airbus
Defence and Space Inc. US and member of the Board of
Directors of Stratasys Ltd (NASDAQ: SSYS).

04

Michael Schöllhorn holds a degree in Mechanical Engineeringand a PhD in Control Engineering from the Helmut Schmidt
University.

Antoine Bouvier – Head of Strategy,
Mergers & Acquisitions and Public Affairs
Antoine Bouvier has been appointed Head of Strategy, Mergers& Acquisitions and Public Affairs Airbus, effective 1 June 2019.
Antoine Bouvier joins Airbus from MBDA where he had been
Chief Executive Officer (CEO) since June 2007.
From January 2002 to June 2007, he was CEO of Astrium
Satellites (now part of Airbus Defence and Space).
Previously, he was Executive Vice-President in charge of theCommercial Helicopter Division of Eurocopter (now Airbus
Helicopters).
In 1990, Antoine Bouvier joined Aérospatiale as Assistant to
the Director of the company’s Civil Aircraft Division. In 1991,
he became Director of the Division’s Department of Strategic
Analysis.
From 1992 until 1994, he was Secretary General and Industrial
Director of ATR GIE. From 1994 until 1998, he was Vice-President
Operations of ATR, going on to become President of ATR GIE
between 1998 and 2001.
Antoine Bouvier started his career as an auditor at the Cour desComptes. He graduated from the École Polytechnique (19811984) and of the École Nationale d’Administration (1984 -1986).

C. Jeffrey Knittel – Chairman and Chief Executive
Officer Airbus Americas
C. Jeffrey (Jeff) Knittel is the Chairman and CEO of Airbus
Americas, Inc. In addition, he is the Head of Region for theAmericas and as such reports directly to the Airbus CEO.
He is responsible for Airbus’ commercial aircraft businessthroughout the Americas, as well as for providing leadershipfor the company’s market leading helicopter business and its
space and defence unit in North America.

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4. Corporate Governance /4.1 Management and Control

Additionally, Knittel chairs A3 by Airbus, the company’s Silicon
Valley-based innovation arm; is a Board Member of Airbus
Ventures, which scouts and invests in early stage technologies
across the globe; and a member of the Airbus Canada Limited
Partnership Board – a multibillion dollar joint venture of Airbus,
Bombardier, and the Province of Quebec to procure parts,
assemble, and market the world’s most modern commercial
aircraft, the A220.
With more than 5,000 employees, Airbus Americas
encompasses the regional corporate offices, engineering andinnovation centers, training facilities, MROs and spare parts
distribution centers, imagery and drone services, as well as large
scale manufacturing facilities producing commercial aircraft,
helicopters, and satellites.
Knittel has more than 35 years of experience in aerospace
and transportation finance. Before joining Airbus, Knittel was
Chief Executive Officer of C2 Aviation Capital (C2), a global
leasing company focused on acquiring, leasing and managing
commercial aircraft. Prior to leading C2 Aviation Capital,
Mr. Knittel served since 1986 in a series of senior leadership
positions at CIT Group Inc. – most recently as President of CIT
Transportation Finance, a $21 billion diversified organisation thatprovided leasing and financing solutions for the aerospace, rail
and maritime industries, including commercial airlines, businessaircraft operators, railroads and shippers.
Knittel is currently a member of the Board of the National Air andSpace Museum, the Board and Chair of the Finance Committeeof the USO of Metropolitan New York, the Board of Trustees of
the National World War II Museum, and a member of the Board
and Executive Committee of the Atlantic Council. He is a former
President and an emeritus member of the Board of Governors of
the Wings Club. He is a former Chairman of the Board of Just One
Break, a not-for-profit institution founded by Eleanor Roosevelt
for the disabled and later merged with The Viscardi Center.

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.

Mr. Knittel holds a bachelor’s degree in aviation managementfrom Embry-Riddle Aeronautical University. In addition, he
graduated from the Advanced Management Program at the
University of Pennsylvania’s Wharton School of Business.

4.1.2 Dutch Corporate Governance Code, “Comply or Explain”
In accordance with Dutch law and with the provisions of the
Dutch Code, which includes a number of non-mandatory
recommendations, the Company either applies the provisionsof the Dutch Code or, if applicable, explains and gives soundreasons for why they have not been applied.
On 20 December 2022, the Dutch Code was revised: its updated
recommendations apply to financial years starting on or after
1 January 2023. The Company welcomed the updates tothe Dutch Code and continues supporting its emphasis on
topics, such as sustainable long-term value creation and theimportance of 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/.

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For the financial year 2022, and in respect of compliance with
the Dutch Code, the Company states the following:

1. S ecurities 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.
In the absence of legal requirement it is at the discretion of the
non-Executive Directors to own shares. The Company does not
require the non-Executive Directors who hold shares to keepthem as a long-term investment.
Provision 3.1.2 vi of the Dutch Code recommends that theshares awarded to the CEO are held for at least five years after
they are awarded. The rules applicable within the Company(as described in section 4.2.1.1 e) below) do not impose a

4. Corporate Governance /4.1 Management and Control

minimum five year holding period for 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 200% of his/her base salary.

2. D ealings 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. D iversity 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 Civilcode) the Company provides such information in “– Informationon the Company’s Activities – 1.2.11 Inclusion & diversity” below.
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 “– Shareholdings and Voting
Rights – 3.1.10.2 Shareholdings and Voting Rights”.
For information on the composition and operation of the Boardof Directors and its respective committees, see “– 4.1.1.1a:Board of Directors composition, power and rules”; “– 4.1.1.1c(iii):
Operation of the Board of Directors in 2022”; 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 and voting rights – Shareholding structure at theend of 2022”; “– 3.3.2: Relationships with principal shareholders”;“– 4.1.1.1.a: Board of Directors composition, powers and rules”;
and “– 3.2.3: Shareholding and voting rights – Modification ofshare capital or rights attached to shares”.

04

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 apermanent 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 and opportunities.
A sharp focus is put on the operational dimension due to theimportance of programmes and operations for the Company.
External factors are also considered in our approach in order tostrengthen 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 endorsed by
the Board of Directors, are set forth in the Company’s ERM Policy
and communicated throughout the Company. The Company’s
ERM Policy is supplemented by directives, manuals, guidelines,
handbooks, and other supporting documents. External
standards which contribute to the Company’s ERM system
include the ISO 31000 defined by the International Organizationfor Standardization (“ISO”).
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.

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4. Corporate Governance /4.1 Management and Control

The ERM process applies to all relevant sources of risks andopportunities that potentially affect the Company’s activities,
its businesses and its organisation in the short-, mid- and longterm. The ERM process is part of the management process andinter-related with the other processes.
All Airbus organisations, including the Divisions, subsidiaries
and controlled participations, commit to and confirm theeffective implementation of the ERM system. The annual ERM
Confirmation Letter issued by each organisation is the formal
acknowledgement about the effectiveness of the ERM system.
For a discussion of the main risks to which the Company 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 strategy and business risks and opportunities,
as well as design and effectiveness of the ERM system;–– the CEO authorises the reports escalated to the Board of
Directors. The CFO is accountable for an effective ERM systemand supervises the Head of ERM, and the ERM system design
and process implementation;–– the Head of ERM has primary responsibility for the ERM
strategy, priorities, system design, culture development andreporting tool. He supervises the operation of the ERM system

and is backed by a dedicated risk management organisationin the Company, focusing on the operational dimension, early
warning and anticipation culture development, while actively
seeking to reduce overall risk criticality by challenging thebusiness. The risk management organisation is structured asa cross-divisional Centre of Competence (“CoC”) and pushes
for a proactive risk management; and–– the management at executive levels has responsibility
for the operation and monitoring of the ERM system in its
respective areas of responsibility, and for the implementationof appropriate response activities to reduce risks and seize
opportunities, also considering the recommendations of theinternal and external auditors.

4.1.3.3 ERM Effectiveness
The ERM effectiveness is analysed by:–– ERM CoC, based on ERM reports, confirmation letters, in situ
sessions (e.g. risk reviews), participation to key controls (e.g.
major programme maturity gate reviews);–– ERM KPIs measuring maturity and effectiveness of the ERM
process in the programmes and functions;–– Risk & opportunity in-depth analyses proposed by the ERM
CoC and performed by the functions with the involvement
and support 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 achieve reasonable assurance about ERM effectiveness:

230

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, madeand/or planned are discussed with the Board of Directors and the Audit Committee.

Top Management

ERM as part of the regular divisional business reviews
Results of the operational risk and opportunity management process, self-assessments and confirmation
procedures are presented by the Divisions or other Airbus’ organisations to top management.
ERM working sessions at 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 confirmations, in situ
sessions (risk reviews etc.), participation to key controls (e.g., major Programme maturity gate reviews).

Corporate Audit

Audits on ERM
Provide independent assurance to the Audit Committee on the effectiveness of the ERM system; annual survey.

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 it
received from management, the Board of Directors believes tothe best of its knowledge that:–– the internal risk management and control systems provide
reasonable assurance that the financial reporting does notcontain any material inaccuracies;–– this report provides sufficient insight into any material failings in
the effectiveness of the internal risk management and control
systems;–– it is justified that the Financial Statements have been preparedon a going concern basis; and–– this report states the material risks and uncertainties thatare relevant to the Company’s continuity for the period of
12 months after the preparation of the report.
It should be noted that no matter how well designed, the internalrisk management and control system has inherent limitations,such as vulnerability to circumvention or overrides of thecontrols in place. Consequently, no assurance can be giventhat the Company’s internal risk management and system andprocedures are or will be, despite all care and effort, entirely
effective.

4.1.4 Internal Audit
In accordance with Principle 1.3 of the Dutch Code, Airbus
Corporate Audit & Forensic engages in the independent andobjective 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 approachto 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 Audit Committee and by access to
the CEO.

04
Corporate Audit activities are independently assessed by
Institut Français de l’Audit et du Contrôle Internes (“IFACI”).
IFACI certifies that Corporate Audit adheres to and fulfils therequirements of the IFACI Internal Audit Professional Framework
2020 and the International Professional Practices Frameworkof the Global Institute of Internal Auditors. The Certification was
renewed on the 29 November 2021 for a period of three years.

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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).
Pursuant to a resolution to that effect, the general meetingmay (re)adopt, amend or supplement the Remuneration Policyon the basis of a proposal by the Board of Directors at therecommendation of the RNGC.
The Board of Directors, at the recommendation of the RNGC,
may decide to deviate (with either an upward or downward
effect on the remuneration levels) temporarily (and ultimately
until the General Meeting adopts an amended version of theRemuneration Policy following the occurrence of such deviation)from any element of the Remuneration Policy as outlined below, if
this is necessary to serve the long-term interests and sustainabilityof the Company or to assure its viability. Any deviation will bemade public and duly justified.
The Remuneration Policy in the form set out below in thissection 4.2.1 has been adopted by the AGM held in 2020 witheffect as of 1 January 2020.
The RNGC did not propose any specific changes to the current
Remuneration Policy in 2022. The Remuneration Policy shall be
posted on the Company’s website as part of the Company’s
annual report of the Board of Directors.

4.2.1.1 Executive Remuneration –Applicable to the CEOa) Remuneration Philosophy
The Company’s remuneration philosophy aims to provide
remuneration that will attract, retain and motivate high-calibre
executives, whose contribution will ensure that the Company
achieves its strategic and operational objectives, thereby
delivering long-term sustainable returns for all shareholders andother stakeholders in a manner consistent with the Company’s
identity, mission and corporate values.
The Board of Directors and the RNGC are committed to making
sure that the executive remuneration structure (i) is transparent
and comprehensive for all stakeholders; (ii) is consistent andaligned with the interests of long-term shareholders, also taking

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into consideration the employment conditions of the Company’s
employees; and (iii) incentivises further the Company’s corporate
values by basing variable remuneration components also on
the achievement of non-financial targets and metrics using
environmental, social or governance criteria via the sustainability
performance measure.
Before setting the targets to be proposed for adoption by the
Board of Directors, the RNGC considers the financial outcome
scenarios of meeting performance targets, including achieving
maximum performance thresholds, and how these may affectthe level and structure of the executive remuneration, as well as
potential risks for the Company’s business which may result fromvariable compensation. The Board of Directors shall also consider
these aspects, based on the RNGC’s recommendations.
Also, before making a recommendation relating to the
remuneration of the CEO, the RNGC and the Board of Directors
shall take note of the views of the CEO with regard to the amount,level and structure of his or her remuneration.

b) Total Direct Compensation and Peer GroupThe CEO’s total direct compensation (“Total Direct
Compensation”) comprises a base remuneration (“BaseSalary”), an annual variable short-term remuneration (“Annual
Variable Remuneration” or “VR”) and an award under thelong term incentive plan (“LTIP”). The three elements of the
Total Direct Compensation are each intended to comprise one
third of the total, assuming the achievement of performance
conditions is 100% of the applicable targets. The level of the
Total Direct Compensation for the CEO (Base Salary, VR andLTIP) is set by reference to the median of an extensive peergroup (as described in paragraph 4.4.3 item a) below) and takes
into account the scope of the role of the CEO, and the leveland structure of executive rewards within the Company. The
benchmark is regularly reviewed by the RNGC, with the supportof an independent consultant, and is based on a peer groupwhich comprises:–– global companies in the Company’s main markets (France,
Germany, UK, Spain and US), excluding financial institutions;and–– companies operating in the same industries as the Company
worldwide.

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

The elements of the Total Direct Compensation are described below:
Remuneration Element
Base Salary(in €)

Variable
Remuneration(in €)

LTIP(in Units and/or Shares)

Main Drivers

Performance Measures

Target and Maximum

Reflects market valueof position.

Not applicable

1/3 of Total Direct Compensation(when performance achievement
is 100% of target).

Rewards annual
performance basedon achievement ofCompany performancemeasures and individual
objectives.

Rewards long-term
commitment andCompany performance,and engagement basedon financial targets
aligned with long-term
objectives subject tocumulative performanceover a three-year period.

Collective (50% of VR): divided
between EBIT(1) (40%);
Free Cash Flow(2) (40%)
and Sustainability (20%).
Individual (50% of VR):
Achievement of annual individual
objectives, divided between
Outcomes and Behaviour.

Vesting, subject to performanceover a three-year period.
In principle, no vesting
if cumulative EBIT is negative.
If cumulative EBIT is positive,
vesting from 50% to 150%
of grant based on EPS (75%)
and Free Cash Flow (25%).

The VR is targeted at 100%of Base Salary for the CEO anddepending on the performance assessment,
ranges from 0% to 200% of target.
The VR is capped at 200% of Base Salary.

The original allocation to the CEOis capped at 100% of Base Salaryat the time of grant. Vesting capped at 150%
of initial grant (in number of Performance
Shares and/or Units).

---

04

In addition, for the vestingof Performance Units:
overall pay-out is capped at 250% of theoriginal value at the date of grant;
the value that could result from shareprice increases is capped at 200% of thereference share price at the date of grant.

(1) The Company continues to use the term EBIT (earnings before interest and taxes). It is identical to Profit before finance cost and income taxes as defined by IFRS Rules.
(2) Airbus defines the alternative performance measure FCF as the sum of (i) cash provided by operating activities and (ii) cash used for investing activities, less (iii) 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 to measure theamount 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.

c) Base Salary
The CEO’s Base Salary is determined by the Board of Directors, taking into account the peer group analysis mentioned above.

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officersd) Annual Variable Remuneration
The Variable Remuneration is a cash payment that is paid following the end of each financial year, depending on the achievementof specific and challenging performance targets as determined at the beginning of each financial year. The level of the CEO’svariable remuneration is targeted at 100% of the Base Salary; it is capped at a maximum level of 200% of the Base Salary. The
entire Variable Remuneration is at-risk, and therefore if performance targets are not achieved as per the defined objectives agreed
by the Board of Directors, it may mean that no variable remuneration is paid at all.
The performance measures that are considered when awarding the variable remuneration to the CEO are split between common
collective performance measures and individual performance measures.

Common Collective Component
The common collective component is based on earnings before interest and taxes (“EBIT”) (40%), Free Cash Flow (40%) andsustainability (20%) objectives (the “Common Collective Component”). At the beginning of each year, the Board of Directors sets
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.
The performance of the Individual Component is measured by the RNGC for the CEO and for all the other members of the Executive
Committee.

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

The RNGC discusses the level of achievement of every single target and derives a combined target achievement level for theoutcomes. The behavioural part of the Individual Component is also discussed by the RNGC and constitutes an adjustment
factor for the target achievement of the outcomes. Finally, the RNGC proposes to the Board of Directors the compound Individual
Component of the CEO target achievement made up from the outcomes and behavioural achievements.

e) Long-Term Incentive Plan
The CEO participates in the Company’s LTIP in order to increase the alignment with shareholders’ interests. The LTIP allows theaward of Performance Units (“Performance Units” or “Units”) and/or Performance Shares (“Performance Shares” or “Shares”).
The value of the CEO’s LTIP allocation is capped at 100% of the Base Salary at the date of grant and subject to performance
conditions. The achievement of the performance criteria is assessed by the RNGC after a three-year period, based on relevant
financial criteria during this period of three years with stringent targets set in advance and agreed by the Board of Directors at therecommendation of the RNGC.
At the end of this three-year period, the grant is subject to a performance calculation to determine whether and to what extent
it should vest. Depending on this calculation (i) Performance Units will vest in two tranches, the payment of which takes placeapproximately six and 18 months following the end of the performance period and (ii) Performance Shares will vest in one tranche,
approximately six months following the end of the performance period. This is depicted in the graphic below:

Y

04

Performance calculation
determines the number of Unitsand Shares that may vest

GRANT DATE
Face value at grant date
Allocation policy

Y+1

Y+2

Y+4

Y+5

Vesting in CASH

X

X

Vesting in SHARES

X

Y+3

Performance period 3 years

The level of vesting of Performance Shares and Units is subject to the following performance measures:–– 0-50% of the allocation: In principle, this element of the Performance Unit / Share award will not vest if the Company reports
negative cumulated EBIT results. Nonetheless, in case the Company’s EBIT results are impacted by exceptional and unpredictable
circumstances, the Board of Directors, upon recommendation of the RNGC, may decide that a maximum portion of 50% of theallocation will vest;–– 50-150% of the allocation: This element of the Performance Unit / Shares vests based on the two following performance criteria:
average earnings per share (75%) (“Earnings per Share” or “EPS”) and cumulative Free Cash Flow (25%).

Earnings per Share (75%)
Average over 3 years, €Measures profitability
Driven by net income and number of shares

Free Cash Flow (25%)
Cumulated over 3 years, M€
Measures cash generation
Driven by cash provided by/used
for operating and investment activities

The vesting of Performance Units and Shares is subject to the following maximum cap:–– the maximum level of vesting is 150% of the number of Units/Shares granted.
The vesting of Performance Units is subject to the following maximum caps:–– the value that could result from share price increases is capped at 200% of the reference share price at the date of grant; and–– the overall pay-out is capped at 250% of the value at the date of grant.
Performance Units and Performance Shares that vest in accordance with the terms and conditions applicable to them are settled
without further action being required by the beneficiary.
For each payment in cash, one Unit is equal to the value of one Airbus SE share at the time of vesting. The Airbus SE share value
is the average of the opening share price, on the Paris Stock Exchange, during the 20 trading days preceding and including therespective vesting dates.

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officersf) Share Ownership Guideline
The Board of Directors has established a share ownershipguideline pursuant to which the CEO is expected to acquire
Airbus SE shares with a value equal to 200% of the Base Salaryand to hold them throughout his or her tenure.

g) Benefits
The benefits offered to the CEO are similar to the benefits granted
to other executives of the Company and comprise, among othermatters, medical, death and disability coverage (both througha social security system or a company plan, depending on thecontractual agreement with the CEO), a company car and usual
facilities.

The CEO’s appointment terms and conditions include a noncompete clause, which applies for a maximum of one year. The
compensation under the non-compete clause is equal to 50%of the last total annual remuneration (defined as Base Salaryand VR most recently paid), subject to applicable local legal
requirements if any and paid in monthly instalments.

Unless the law provides otherwise, the costs and expenses of
the CEO are covered, including reasonable costs of defending
claims, under the conditions set forth in the insurance policy
subscribed by the Company. Under circumstances excluded by
the insurance policy, such as an act or failure to act by the CEO
that can be characterised as intentional, intentionally reckless, orseriously culpable, there will be no entitlement to any coverage.

Past LTIP awards may be maintained, in such cases as retirement
or if a mandate is not renewed by the Company for a reason otherthan cause (misconduct). The vesting of past LTIP awards follows
the rules and regulations of the LTIP including performance
conditions and is not accelerated in any case. LTIP awards areforfeited for executives who leave the Company at their own
initiative, but this is subject to review by the Board of Directors.

h) Retirement
The CEO is entitled to retirement benefits through mandatory
applicable state and collective pension plans.
The CEO participates also in a Company pension contributions
based plan. This plan consists of an annual pension contributionof 20% of the annual pensionable remuneration (as describedin paragraph 4.2.1.3 item h) below) subject to applicable local
practices (if any).

i) Clawback
In accordance with Dutch law, the Board of Directors may
adjust a “bonus” (as defined under Dutch law, including shortterm remuneration and awards under the Long-Term Incentive
Plan subject to performance criteria) awarded to the CEO toa suitable level, if payment or satisfaction of that bonus would
be unacceptable under the standards of reasonableness andfairness. Also, the Company may reclaim a bonus already paid,
in whole or in part subject to applicable local legal requirements,
if any, to the extent that such payment was made on the basis ofincorrect information regarding the achievement of the targets,
objectives and/or conditions underlying the bonus or regarding
the circumstances on which the bonus was dependent. The
Non-Executive Directors, or a special representative designatedby the general meeting, may demand such repayment on the
Company’s behalf.
Any such adjustment or clawback will be reported in the notesof the relevant Financial Statements of the Company.

j) Loans
The Company does not provide loans or advances to the CEO.

k) Severance
In case of termination of the CEO’s duties at the initiative of theBoard of Directors, the CEO shall be entitled to an indemnity
equal to one (1) time the last Total Annual Remuneration(defined as Base Salary and VR most recently paid) subject
to applicable local legal requirements if any, and provided thatthe performance conditions (as described in paragraph 4.4.3

236

item k) below) assessed by the Board of Directors have been
fulfilled. If the CEO’s appointment as member of the Board of
Directors terminates within a period of 12 months or less prior to
his retirement date, the termination indemnity will be limited by
pro-rating its amount. This will not apply if the CEO’s mandate
is terminated for cause (misconduct), in case of resignation or
termination on or after his retirement date.

Airbus / Universal Registration Document 2022

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 NonExecutive Directors.
Unless the law provides otherwise, the Non-Executive Directors
shall be reimbursed by the Company for various costs andexpenses, including reasonable costs of defending claims.
Under certain circumstances, such as an act or failure to act
by a Member of the Board of Directors that can be characterised
as intentional, intentionally reckless, or seriously culpable, there
will be no entitlement to this reimbursement.

4.2.1.3 Implementation of the Remuneration Policy in 2022: CEOThis paragraph 4.2.1.3 describes how the Remuneration Policy was implemented in 2022 with respect to the CEO (Mr GuillaumeFaury). As a reminder, the AGM held in 2020 approved the Remuneration Policy through resolution five with a very high level of support.
In line with the Remuneration Policy and the expectation of the RNGC and the Board of Directors, the philosophy of the remuneration
policy aims to provide remuneration that will attract, retain and motivate high-calibre executive, while taking into account bestpractices as well as employee and shareholder considerations. It should help to ensure that the Company achieves its strategicand operational objectives, thereby delivering sustainable returns for all shareholders and other stakeholders in a manner consistent
with the Company’s identity, mission and corporate values.

04a) Benchmarking
The latest benchmark was performed in July 2021 at RNGC and Board of Directors request.
To consider the Company operations and employees’ breakdown by geographic areas, the relevant peer group from this last
benchmark, based on Willis Towers Watson database, was composed of 55 companies(1) selected from CAC40 in France, DAX 40(formerly DAX 30) in Germany, FTSE 100 in the UK, IBEX 35 in Spain and DJ 30 in the US having comparable economic indicatorssuch as revenues, number of employees and market capitalisation and providing perspective on compensation practices fromdirect or indirect competitors.
In particular, US companies were included in this peer group since Airbus has direct competitors in this country and since Airbus
has senior executives in the US where it competes to recruit talents. However, and considering the very unique US pay practices
and as Airbus executives are mainly based in Europe, US companies were solely weighted at 10% over all countries. The data wascompounded 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.
Based on the benchmark run by this independent third party, the Board of Directors, upon recommendation of the RNGC decided
to increase by 10% the Total Direct Compensation (TDC) (Base Salary + Variable Remuneration + LTIP) of the CEO applicable from
1 January 2022.

(1) France: Total, Sanofi, Safran SA, Air Liquide, Stellantis, Danone, Schneider Electric, Saint-Gobain, Vinci, Engie, Thales, Dassault systèmes
Germany: Bayer, Volkswagen, Daimler, BASF, Deutsche Telekom, Siemens, BMW, Continental, E.ON, Henkel, Deutsche Post, SAP
Spain: Iberdrola, Endesa, Siemens Gamesa, Santander, Telefónica, Naturgy, Repsol, Banco Bilbao, Inditex, Ferrovial SA
UK: Shell, BP, BAT, GSK, Rio Tinto, Vodafone, Bae Systems, Rolls Royce, Diageo, Unilever, Tesco
US: Boeing, Lockheed, Raytheon, General Dynamics, Northrop Grumman, GE, Caterpillar, 3M, IMB, Fedex

Airbus / Universal Registration Document 2022

237

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

This decision has been taken after due consideration of the outcome of the benchmark and the successful leadership of the CEO
during his ﬁrst term of office as CEO.
With this increase,–– the Total Target Cash (TTC) (Base Salary + Variable Remuneration) of the CEO (€ 2,970,000) is closer to the median market rangeof the peer group (i.e. € 3,000,000);–– however his Total Direct Compensation (TDC) remains by around 28% below the median level of the peer group (i.e. € 4,455,000
for the CEO compared to € 6,200,000 for the peer group in 2022).
€ 7,000,000€ 6,000,000€ 5,000,000€ 4,000,000€ 4,455,000€ 6,200,000€ 1,000,000€ 2,970,000€ 2,000,000€ 3,000,000€ 3,000,000€0Total Target Cash(TTC)Median market of the peer group

Total Direct Compensation(TDC)
2022 CEO remuneration

In addition to external benchmark, the RNGC also considers the remuneration of employees through the review of the evolutionof the pay-ratio (see 4.2.1.3 item (j)).

b) Base SalaryThe 2022 CEO Base Salary level on a full year basis increased by 10% in the context of his renewal as per the Board of Directors’decision, compared to 2021 and amounts to € 1,485,000 (still below the Base Salary of the former CEO: € 1,500,000 in 2019).

c) Annual Variable Remuneration
As stipulated in the Company’s Remuneration Policy, the CEO’s VR is targeted at 100% of the Base Salary and capped at 200%of the Base Salary. It is subject to the fulfilment of collective and individual performance targets.
For 2022, the VR of the CEO amounts to an aggregate of € 2,041,875 composed of € 1,113,750 (55%) for the Common Collective
Component and € 928,125 (45%) for the Individual Component.

Individual part:€ 928,125
Achievement:
125%

238

Airbus / Universal Registration Document 2022

Variable
Remunerationof CEO in 2022:€ 2,041,875

Common Collective
Component:€ 1,113,750
Achievement:150%

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 2022, the Common Collective Component for the Company consolidated
achievement have been assessed at 150% by the RNGC and the Board of Directors in February 2023 against the target lettersvalidated at the beginning of 2022 and that include detailed vesting scales for each criteria(1). It is based on an achievement of 121%of target EBIT, 161% of target Free Cash Flow, and 186% of target sustainability (which is based on achievement of 171% of target
reduction of CO2 emissions and 200% 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 it has been extended to all Senior Managers. Therefore, circa 4,500 employees receive a collective bonus basedon the achievements mentioned above.

Financial
80%

Sustainability
20%

EBIT
40%

121%

FCF
40%

161%

CO2
10%

= 150%

171%

FR1
10%

04

200%
MinimumAchievement0%

MaximumAchievement200%

High level of achievement for EBIT and Free Cash Flow was driven by Airbus Commercial and Airbus Helicopters partially offset by
Airbus Defence & Space. Normalisations were made to exclude exceptional financial impacts such as currency exchange differences.
Sustainability targets are measured by two criteria: the rolling lost time injury frequency rate (“FR1”) which is the monthly 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 2022, the rolling FR1 decreased by more than 30% in Airbus Commercial and by more than 20% in both Airbus Helicoptersand Airbus Defence and Space, leading to a consolidated achievement of 200%. For further details, see section 1.2.9 Healthand Safety.
–– In 2022, the CO2e decreased by 8.5% (reduction of circa 63ktons), which is above the targeted reduction of 5%, leading to an
achievement of 171%. For further details, “– Information on the Company’s Activities – 1.2.2 Climate Change”.
For 2023, the Board of Directors decided to maintain the sustainability component as follows: FR1 for 50% and CO2 avoidancefor 50%. The targets for 2023 are:–– a reduction of the rolling FR1 by 15% in Airbus Commercial and Airbus Helicopters (the rolling FR1 in these two Divisions at theend of 2022 being still above 1) and by 10% in Airbus Defence and Space (the rolling FR1 for this Division at the end of 2022
being below 1) versus the actual 2022 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 2023 was set in absolute value at 687ktons, which
represents a reduction of -0.9% vs. 2022 for a scope extended to another four sites. For further details, “– Information on the
Company’s Activities – 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 notdisclosed.

Airbus / Universal Registration Document 2022

239

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

Performance Achievement – Individual Component
The Individual Component in 2022 results from an achievement level of 125%, assessed by the RNGC and approved by the Boardof Directors in February 2023 on the basis of achievement demonstrated on different criteria defined at the beginning of 2022, assummarised in the table below:
OBJECTIVE

TARGET

Weight (%)

Ach. (%)

I. Outcomes element

Top Company Objectives

Individual ojectives(see next pages)-- Customer-- Industrial performance-- Financial performance-- People-- Sustainability-- Enable the future30%

1 – Perform again

10%

90%

2 – Commercial aviation market position consolidation

10%

180%

3 – Secure and deliver key defence programmes

60%

90%

10%

90%

4–E
 nvironment, Social and Governance, and Ethics and Compliance

20%

180%

5 – Deliver key 2022 strategic milestones

10%

130%

Personal Development and Leadership Team Development

10%

130%

II. Behaviour element
Personal Focus

Performance achievement – Individual Component

125%

The Individual component has been assessed according to three sets of complementary objectives:–– Top Company Objectives Assessment – accounting for 30% of the total Individual Component, shared with all company executives
to promote collective alignment;–– CEO Individual Objectives – accounting for 60% of the total Individual Component;–– CEO Behavioural Ojectives – accounting for 10% of the total Individual Component.

I. Outcomes element
A. 2022 Top Company Objectives
They have been defined and are structured around six clusters:–– Customer;–– Operational Performance;–– Financial Performance;–– People;–– Sustainability;–– Enable the Future.
A series of KPIs and associated targets have been set at the beginning of the year, for each of the clusters.
Each of the KPIs has been measured and compared to the relevant target, leading to a global measurement of the TCOs achievement
at 90% of the targets, as per details shown in the table “summary CEO achievement – Individual Component” at the beginning of
this chapter.
B. CEO Individual Objectives
In line with the TCOs, Individual Objectives have been set up specifically for the CEO.
They are structured around five priorities, detailed below.
Each of the priorities has been assessed by the RNGC, as per the details shown in the table “summary CEO achievement – Individual
Component”.
The main and most noticeable factors for each of the five priorities determining the achievement level of CEO Individual Objectives
include, but are not limited to:
1. Perform again
Despite a challenging supply chain context, with notable disruption on engines and electronic components, aircraft deliveries
increased, reaching 661 at the end of 2022 compared to 611 in 2021. However, this falls short of the initial 2022 delivery guidance.
The industrial setup reshaping was pursued, with progress on the restructuring of the Aerostructures business (Airbus Atlantic,
Airbus Aerostructures GmbH, Premium Aerotec Industries) as well as on making all Final Assembly Lines A321-capable (Tianjin
and Toulouse in addition to Hamburg and Mobile).

240

Airbus / Universal Registration Document 2022

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

2. Commercial aviation market position consolidation
Progress was made on all major aircraft developments, notably on A321XLR, which made its first test flight and achieved concrete
steps towards certification and eventual entry into service. The development of the A350 Freighter also advanced, while also
confirming its market potential through new orders.
A strong overall order intake was secured (more than 1000 commercial aircraft gross orders), further consolidating the company
position as market leader for the fourth consecutive year. Good progress was also made on further developing customer relationships,
paving the way for future landmark orders, such as the one recently concluded with Air India.
3. Secure and deliver key defence programmes
Important strategic European military programmes have been secured:–– FCAS Phase 1B negotiation was successfully completed resulting in contract signature in December 2022.
–– EuroDrone, Tiger MkIII as well as HIL for the French Armed Forces have been secured in 2022.
However, the overall performance of the Defence and Space Division remained below expectations, notably impacted by inflation
on long-term contracts such as the A400M programme.
4. Environment, Social and Governance (ESG) and Ethics & Compliance04

ESG and Ethics & Compliance have been established as a strategic building block, actively engaging with the Company’s widestakeholders base:–– notable steps have been made on the ZEROe aircraft programme, which aims to develop the first zero emission commercial
aircraft entering the market by 2035. In particular, the progress in terms of technology readiness level and industrial capabilities
can be highlighted, such as through the development of the ZEROe Emissions Development facilities;–– developments were driven on SAF with the notable example of the establishment of a joint fund with Qantas;–– very good progress has also been made on employee diversity, notably in terms of executives’ gender diversity hiring andpromotions;–– progress has been made on integrating defence within the wider ESG framework. Positive feedback was received after the 2022
Capital Market Day, and increased alignment with the wider private and public stakeholder base;–– positive feedback was received from the AFA following the audits, and significant progress was made in anchoring Complianceas a key pillar of the Company’s culture. The Deferred Prosecution Agreements have now expired and formal closure by theauthorities is pending in line with the procedural requirements of each country.
5. Deliver the key 2022 strategic milestones
DDMS programme and digital transformation have progressed as planned.
The Company has recently 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 submitted to SBTi in June 2022 and validated in January 2023.
At the ICAO Assembly in October 2022, the member states agreed on a collective Long-Term Aspirational Goal (LTAG) for international
civil aviation operations of net zero carbon emissions by 2050, in support of the Paris’ Agreement’s temperature goal. The Company
has actively supported this outcome, which will prove pivotal in driving the overall industry towards a net zero emissions future.
The Company signed several strategic partnerships to accelerate the decarbonisation roadmap (e.g. DACC 1PointFive, Neste,
Renault).

II. Behaviour element
The “behaviour element” accounts for 10% of the total Individual Component and has been assessed around two axes:–– Personal Development;–– Leadership Team Development.
Each of the priorities has been assessed by the RNGC leading to a global achievement of 130% for the Behavioural Objectives, as
per details shown in the table “summary CEO achievement – Individual Component”.
Personal Development and Leadership Team Development
The CEO has gained strong recognition from his peers and the wider public, further reinforcing the Company leadership andbrand value. This contributes to putting Airbus in an even stronger position to drive change within the industry and attract talents.
Following the changes made in 2021, further development of the top management team was implemented, especially with a strong
focus on preparing the future generation and on promoting diversity, both in terms of gender and international profiles.

III. CEO priorities
For 2023, the CEO priorities revolve around operational performance, market position in commercial aviation, major European
defence programmes, ESG topics, digital and decarbonisation roadmap, leadership team development and portfolio management.

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241

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officersd) Long-Term Incentive Plan
2022 Grant
In 2022, 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
2022 pursuant to the LTIP:
SHARE PLAN: NUMBER OF PERFORMANCE SHARES
Granted in 2022

Vesting dates

14,115

Vesting schedule is made up of one tranche expected in May 2026

Guillaume Faury

The grants in 2022 were performed in compliance with the performance measures (average EPS (75%) and cumulative FCF (25%))
described in paragraph 4.2.1.1 item e). As per the current Remuneration Policy, the Performance Shares granted in 2021 will vest
in one tranche in May 2026.

Vesting Values in 2022
In 2022, the CEO received both cash payments and vested shares in connection with the vesting of 2017 and 2018 LTIP awards:–– Cash: the total cash payment to the CEO amounted to € 226,388 in 2022.
–– Shares: in connection with the 2018 LTIP award, the CEO received 2,104 vested shares on 12 May 2022.

LTIP overview: granting and vesting
Date ofgrants

Grant
Type

NumberShare priceat grant

Value atgrant date

Performanceachievement

Units withperformanceachievement

Share value atvesting dates(*)
1st vesting
5 May 2021
€ 100.25

2017

Unit

4,404

€ 73.81€ 325,059

50%

2,202

2 vestings in
2021 – 2022

2017

Share

4,404

€ 73.81€ 325,059

50%

2,202

1 vesting in
2021

5 May 2021
€ 97.58

2018

Unit

4,208

€ 106.94€ 450,004

50%

2,104

2 vestings in
2022 – 2023

1st vesting
12 May 2022
€ 105.15

2018

Share

4,208

€ 106.94€ 450,004

50%

2,104

1 vesting in
2022

12 May 2022
€ 104.4

2019

Unit

5,530

€ 122.06€ 674,992

50%

2,766

2 vestings in
2023 – 2024

Not yet known

2019

Share

5,530

€ 122.06€ 674,992

50%

2,765

1 vesting in
2023

Not yet known

2020

Unit

9,920

€ 68.04€ 674,957

Not yet known

Not yet known

2 vestings in
2024 – 2025

Not yet known

2020

Share

9,920

€ 68.04€ 674,957

Not yet known

Not yet known

1 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

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.

242

Dates ofvesting

Airbus / Universal Registration Document 2022

2nd vesting
12 May 2022
€ 105.15

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

Performance Conditions of LTIP 2019:
The performance conditions for LTIP 2019 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 2020, 2021 and 2022
fiscal years, with the three-year Ave EPS target for an allocation of 100% equal to € 7.72; and–– 25% of cumulative FCF (“Cum FCF”): determined on a linear basis depending on three-year Cum FCF for the 2020, 2021 and2022 fiscal years, with the three-year Cum FCF target for an allocation of 100% equal to € 13,150 million.
Review of Achievement of Performance Conditions:
In February 2023, the Board of Directors noted the achievement of the performance conditions of the 2019 plan, i.e. for the 2020,2021 and 2022 fiscal years. The three-year average EPS was € 3.10 and the three-year Cum FCF was € 4,320 million.
The cumulative EBIT for the 3-year period is positive, leading, according to the policy, to the vesting of 50% of Performance Shares
and Units. The positive performances of 2021 and 2022 exercises did not mitigate the 2020 exercise strongly impacted by thesanitary crisis leading to no vesting above 50%.

04

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 ofgrants2017

KPI

Numberof units

Ave EPS

8,808

Cum FCF2018

2019

Ave EPS
Cum FCFAve EPS
Cum FCF

8,416

11,060Target for
a 100%
allocation

Achieved

Performanceachievementin percentage€ 6.00€ 1.8350%€ 9,339m€ 4,331m

50%€ 6.73€ 2.2750%€ 13,000m€ 3,230m

50%€ 7.72€ 3.1050%€ 13,150m€ 4,320m

50%

Compounded
performance Resulting
achievement
vestingin percentage in number

For comparison,
average EPS for thelast 3 reported years
at the date of grant

50%

4,404

€ 2.28(1)

50%

4,208

€ 2.81(2)

50%

5,530

€ 2.98(3)(1) Average EPS of 2016, 2015 and 2014.
(2) Average EPS of 2017, 2016 and 2015.
(3) Average EPS of 2018, 2017 and 2016.

Based on the above, the ratio between the fixed part of
the remuneration of the CEO in 2022 (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 2022 paid-out in 2023 andLTIP vesting in 2022) is 48% / 52% (versus 49% / 51% in 2021).

e) Share Ownership
The CEO owned 26,599 Airbus SE shares on 31 December 2022.
The CEO has reached the target of 200% of the Base Salary in
2022 thanks to a personal investment plan in Airbus SE shares.
Please refer to the AFM website www.afm.nl for any further
information related to the transactions of the CEO.

f) Employee Share Ownership Plan (ESOP)In March 2022, 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 2022, a dedicated UK tax
advantageous Share Incentive Plan (“SIP”) was also deployedin March 2022.
Although the CEO was eligible for the plan, he did not participate
in the ESOP 2021 plan leaving more shares for employees inorder to favour the development of employee shareholding.

g) Benefits
Costs of benefits provided through applicable mandatory
collective and social security plans are accounted for amongsocial charges (please refer to Note 34 to the IFRS Consolidated
Financial Statements for further details). The monetary value ofother benefits provided to the CEO in 2022 amounts to € 32,734(vs € 32,479 in 2021).

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243

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officersh) Retirementj) Pay Ratio

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 Dutch Code recommends that the Company provides aratio comparing the compensation of the CEO and that of a“representative reference group” determined by the Company.

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 IAS 19 as applied by theCompany for post-employment benefits. As of 31 December
2022, the defined benefit obligation amounted to € 6,895,263(€ 9,046,433 in 2021). This obligation has been accrued in the2021 Consolidated Financial Statements and will be updated
annually up to the retirement date of the CEO considering futurechanges on economic assumptions or other factors like salary
increase.
For the fiscal year 2022, the cost related to the CEO’s pension
rights accrued under Company’s plans during the year
represented an expense of € 1,385,222 (versus € 1,138,794 in2021).
The annual cost of pension rights accrued under applicablemandatory collective and state pension plans are accounted
for among social charges (please refer to Note 34 to the IFRS
Consolidated Financial Statements for further details).

i) Clawback
The Board of Directors did not apply any clawback in 2022.

244

Airbus / Universal Registration Document 2022

The Company’s pay ratio is calculated by comparing thecompensation of the CEO with the average compensation of fulltime equivalent permanent employees from France, Germany,
the UK and Spain for the Company, excluding subsidiaries(encompassing around 99,000 employees).
Since 2021, the aggregate compensation over the fiscal yearthat is used as a reference amount to calculate the ratio includes
the gross sum of the Base Salary, annual bonus, profit andsuccess sharing, overtime, premium for work conditions andother premiums, social charges, value of benefits and pension
contributions and the face value of LTIP at grant date.
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 permanent employees forthe fiscal year to which this report relates is 70 (for 2021: 61 after
restatement) (rounded to the nearest integer).
The increase in pay-ratio is mainly due to the increase in thecollective component of the Annual Variable Remuneration (VR):the collective component related to the VR paid-out in 2021 to
CEO was impacted by the COVID-19 crisis, while it was not thecase for the payment in 2022 related to the 2021 performance
which was very strong due to quicker than expected post
COVID-19 recovery.

k) Severance
No payment has been made to the CEO in 2022 related toseverance or other termination indemnity.
Under the current CEO’s appointment terms and conditions,the payment of an indemnity in case of termination would be
subject to performance conditions. These conditions would be
fulfilled if the collective and individual components of the VR forthe last two financial years preceding the financial year during
which the termination occurs have been assessed by the Boardof Directors at 100% or more.

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officersl) Development of the compensation
The table below provides an overview of the development of the direct cash compensation paid to the CEO during a financial year
composed by the Base Salary plus the VR (as defined below) and of the Employee Compensation (as defined below).
Financial year

2022

2021

2020

2019

2018

1,485

1,350

1,350

1,392(1)1,500

I. CEO’s direct cash compensation
Annual Base Salary (in € thousand)VR (in € thousand)

2,241

1,404

1,553

2,318

2,168

Total

3,726

2,754

2,903

3,710

3,668

Annual Variation

+35%

-5.1%

-21.8%

+1.1%

+7.5%

II. Long Term Incentive Plan (in € thousand)(3)

1,485

1,350

1,350

1,350

-

(2)

III. Company Performance
EBIT Adjusted (in € million)

5,627

4,865

1,706

6,946

5,834

Annual Variation

+16%

+185%

-75%

+19%

+37%

FCF before M&A and customer financing (in € million)

4,680

3,515

(6,935)

3,509

2,912

Annual variation

+33%

n.a

-298%

+21%

-1%

79.1

71.6

72.0

75.1

73.6

+10.5%

-0.6%

-4.1%

+2.0%

+3.6%

IV. Employee Compensation (in € thousand)(4)Annual Variation

04(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(based on 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 to 2019 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.

The 2022 CEO’s direct cash compensation is roughly the sameas in 2019, before the COVID-19 crisis.
The annual variation (+35%) of the CEO’s direct cash
compensation between 2022 and 2021 is mainly due to theincrease in the collective component of the Annual Variable
Remuneration (VR): the collective component related to the VR
paid-out in 2021 to the CEO was impacted by the COVID-19
crisis, while it was not the case for the payment in 2022 related
to the 2021 performance which was very strong due to quicker
than expected post COVID-19 recovery.

The annual variation of the Employee compensation between
2022 and 2021 is mainly due to two factors:–– the success sharing paid in 2022 was much higher than the
one paid in 2021 due to the COVID-19 impact,–– in 2022, an exceptional premium of € 1,500 or £ 1,500 has
been paid following a decision from the CEO and the Executive
Committee in order to support our employees facing the highinflation environment.

4.2.1.4 Implementation of the Remuneration Policy in 2022: Non-Executive Directors
This section describes how the Remuneration Policy was
implemented in 2022 in respect of the Non-Executive Directors.
In line with the Remuneration Policy, the implementation thereofwith regard to the Non-Executive Directors aims at ensuring faircompensation and protecting the independence of the Board’s
Members. Their remuneration should be commensurate to thetime spent and the responsibilities of their role on the Board of
Directors.
The CEO is the only Member of the Board of Directors who is
not entitled to any Board or Committee fee.
In 2022, Non-Executive Members of the Board of Directors wereentitled to the fees described below. These fees were based on
the review of the Board remuneration undertaken in 2018 withthe support of an independent consultant to align the Board
remuneration with market practice, incentivise attendance andrecognise the strategic role played by the Board of Directors in
the Company’s developments.

a) Board fees:–– fixed fee for membership of the Board of Directors (EUR/year):–– Chair of the Board: 210,000,–– Member of the Board: 80,000;–– attendance fees (EUR / 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 (EUR/year):–– Chair: 30,000,–– Member of a Committee: 20,000;–– attendance fee for membership of a Committee applicable
to chair and members (EUR / additional meeting above four
meetings per Committee per year, whether these meetings
were held physically or by phone):

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245

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers–– 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.

Note: upon recommendation of the RNGC, the Board of Directors
decided that the Committee fees in relation to the meetings ofthe ad hoc Board Committee convened in 2022 to addresssome specific strategic topics (see section 4.1.1.2 – Board
Committees), would be prorated to cover only the period from
July 2022, when the Committee first met, and December 2022.

The remuneration of the Non-Executive Members of the Board of Directors was as follows:
2022

2021

Fixum(1)AttendanceFees(2)

Total

René Obermann

225,000

135,000

Victor Chu

100,000

66,000(In €)

Fixum(1)AttendanceFees(2)

Total

360,000

210,000

90,000300,000

166,000

100,000

43,000143,000

Non-Executive Board Members

Jean-Pierre Clamadieu

140,000

96,500236,500

130,000

67,500

197,500

Ralph D. Crosby Jr.

100,000

100,000

200,000

100,000

61,000161,000

Mark Dunkerley(3)124,420

112,000

236,420

100,000

66,000166,000

Stephan Gemkow

110,000

98,000208,000

100,000

63,000163,000

Catherine Guillouard

140,000

98,000238,000

130,000

67,500

197,500

Amparo Moraleda

140,000

103,000

243,000

130,000

54,500184,500

Claudia Nemat

100,000

76,500176,500

100,000

56,500156,500

72,10075,000147,100

N/A

N/A

N/A

3,913

10,00013,913

N/A

N/A

N/A

33,811

15,00048,811

120,000

49,500169,500

Irene Rummelhoff(4)

Antony Wood(5)Former Non-Executive Board Members
Lord Drayson(6)Carlos Tavares

(7)

Total

22,541

5,000

27,54180,00045,000125,000

1,311,785

990,000

2,301,785

1,300,000

663,500

1,963,500(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”), Ethics, Compliance and Sustainability Committee (“ECSC”) and/or ad hoc Committee). 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. The fixum for the year 2021 was paid 50% in January 2021 and
50% in July 2021.
(2) 2022 attendance fees include the Board attendance fees and the fees in relation to the relevant Committee (Audit Committee, RNGC and ECSC) meetings. The Board
attendance fees related to the first semester 2022 were paid in July 2022, those related to the second semester 2022 were paid in January 2023. The Committees’ attendancefees related to full year 2022 were paid in January 2023.
(3) Member of the RNGC since 12 April 2022.
(4) Member of the Board of Directors and the ECSC since 12 April 2022.
(5) Member of the Board of Directors since 14 December 2022.
(6) Member of the Board of Directors, the RNGC and the ECSC until 12 April 2022.
(7) Member of the Board of Directors until 12 April 2022.

246

The total aggregated remuneration (i.e. fixum and attendancefee) of the Non-Executive Members of the Board of Directors
was respectively € 2,154,838 in 2020, € 2,350,176 in 2019 and€ 2,010,910 in 2018.

attendance and recognise the strategic role played by the Boardof Directors in the Company developments. The applicablefixum for Board membership as well as Committee membershipand chair remained unchanged since 2007.

For 2022, the applicable fixum for Board chair as well as theapplicable attendance fees for Board Membership and chairremained unchanged since 1 January 2016 (first comprehensive
revision since 2007) following the decision made at the 2016
AGM to increase the remuneration of the Chair (fixum by€ 30,000 and attendance fees by € 5,000) and double (to€ 10,000) the attendance fees of the Non-Executive Board
Members in order to be in line with market practice, incentivise

The applicable attendance fees for Committee membership
remained unchanged since 1 January 2019 following thedecision made at the 2019 AGM to allocate an attendance
fee above four meetings per Committee per year in order totake into account Directors’ attendance at a greater numberof Committee meetings when the workload substantiallyintensifies due to exceptional circumstances.

Airbus / Universal Registration Document 2022

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

4.2.1.5 Miscellaneous
Policy for Loans and Guarantees Granted
The Company’s general policy is not to grant any loan to themembers of the Board of Directors. Unless the law provides
otherwise, the members of the Board of Directors shall bereimbursed by the Company for various costs and expenses,
like reasonable costs of defending claims. Under certain

circumstances, such as an act or failure to act by a member ofthe Board of Directors that can be characterised as intentional,
intentionally reckless, or seriously culpable, there will be noentitlement to this reimbursement. The Company has also
taken out liability insurance (“D&O” – Directors & Officers) forthe persons concerned.

4.2.2 Long-Term Incentives Granted to the Chief Executive Officer
See “– 4.3.3 Long-Term Incentive Plans”.

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 2020, 2021 and 2022, 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 11: Related party transactions”

04
for the year-ended 31 December 2022, “Notes to the IFRS
Consolidated Financial Statements – Note 10: Related party
transactions” for the year-ended 31 December 2021, “Notes tothe IFRS Consolidated Financial Statements – Note 10: Related
party transactions” for the year-ended 31 December 2020, 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.

Airbus / Universal Registration Document 2022

247

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.

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 2022 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 issuance2020€ 136.00(1) / € 136.60(2) /€ 90.09(3)€1€1891,633
84,522

4 May 2020
18 November 20202021

€ 89.52(1) / € 93.90(2) /€ 114.90(3)€1€11,871,546
62,87418 March 2021
18 October 2021

2022

€ 114.01(1) / € 117.88(2) /€ 99.10(3)€1€12,052,236
68,80917 March 2022
18 October 2022

(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 2022 and 2021, the Board of Directors approved a new ESOP
scheme. Eligible employees were able to purchase a fixed
number of previously unissued shares at fair market value (5, 10,
15, 30, 60 or 100 shares in 2022; 5, 15, 30, 50 or 100 shares in2021). The Company matched each fixed number of shares witha number of the Company free shares based on a determinedratio (5, 9, 12, 20, 35 and 55 free shares, respectively in 2022,
versus 4, 7, 10, 13 and 25 free shares, respectively in 2021).
During a custody period of at least one year, employees are
restricted from selling the shares, but have the right to receive
all dividends paid. Employees who directly purchased theAirbus SE shares have, in addition, the ability to vote at theAnnual Shareholder Meetings. The subscription price was equal
to the closing price at the Paris stock exchange on 16 March2022 (2021: 17 February 2021) and amounted to € 106.82 (2021:€ 93.90). Investing through a mutual fund led to a price whichcorresponds to the average price at the Paris stock exchange
during the 20 trading days immediately preceding 16 February

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Airbus / Universal Registration Document 2022

2022 (2021: 17 February 2021), resulting in a price of € 114.01(2021: € 89.52). In 2022, the Company issued and sold 1,296,252
ordinary shares (2021: 1,442,645) with a nominal value of € 1.00
each. In 2022, the Company issued and distributed 824,793
matching ordinary shares (2021: 491,775) with a nominal valueof € 1.00 each. Compensation expense (excluding social security
contributions) of € 82 million (2021: € 49 million) was recognisedin connection with ESOP in 2022.
The Company intends to implement an ESOP in 2023, 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 free distribution of shares or other existing or new
securities giving access to the capital as a matching contribution.
This plan would aim at favouring the development of employee
shareholding.

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 2022 are set out in the “Notes
to the IFRS Consolidated Financial Statements – Note 33: Share-based payment”. They are also summarised in the tables below:
Nineteenth tranche
Date of Board of Directors meeting (grant date)

30 October 2017
Performance Units and Performance Shares plan

Number of units/shares granted(1)

Number of units/shares granted through Equity Pool(2)Performance Units

Performance Shares

421,638

425,702

1,898

1,898

0

0

4,404

4,404

53,80857,872

Number of units/shares outstanding-- Units/shares granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest
number of units/shares during the year 2017
(nineteenth tranche)

Total number of eligible beneficiaries

04

1,601

Vesting dates: The Performance Units and Shares will vest if the participant is still employed by an Airbus company at the respective vesting
dates and upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years:
Performance Units: 50% vested in May 2021, and 50% expected in May 2022;
Performance Shares: 100% vested in May 2021.

---

Number of vested units/shares

192,010

194,975(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of
150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors
can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition).
(2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
* For more information in respect of units and shares granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements –Note 34: Remuneration”.

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4. Corporate Governance /4.3 Employee Success Sharing and Incentive Plans

Twentieth tranche
Date of Board of Directors meeting (grant date)

30 October 2018
Performance Units and Performance Shares plan
Performance Units

Performance Shares

278,376

281,181

Number of units/shares granted through Equity Pool(2)

6,664

6,664

Number of units/shares outstanding

64,147

0

4,208

4,208

23,57826,383

Number of units/shares granted(1)

Units/shares granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest
number of units/shares during the year 2018
(twentieth tranche)

Total number of eligible beneficiaries

1,626

Vesting dates: The Performance Units and Shares will vest if the participant is still employed by an Airbus company at the respective vesting
dates and upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years:
Performance Units: 50% vested in May 2022, and 50% expected in May 2023;
Performance Shares: 100% vested in May 2022.

---

Number of vested units/shares

66,714132,120(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of
150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors
can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition).
(2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
* For more information in respect of units and shares granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements –Note 34: Remuneration”.

Twenty-first tranche
Date of Board of Directors meeting (grant date)

29 October 2019
Performance Units and Performance Shares plan

Number of units/shares granted(1)

Number of units/shares granted through Equity Pool(2)Number of units/shares outstanding

Performance Units

Performance Shares

247,508

247,508

4,343

4,252

114,075

115,134

5,530

5,530

28,05828,058

Units/shares granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest
number of units/shares during the year 2019
(twenty-first tranche)

Total number of eligible beneficiaries

1,576

Vesting dates: The Performance Units and Shares will vest if the participant is still employed by an Airbus company at the respective vesting
dates and upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years:
Performance Units: 50% vested in May 2023, and 50% expected in May 2024;
Performance Shares: 100% vested in May 2023.

---

Number of vested units/shares--(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of
150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors
can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition).
(2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
* For more information in respect of units and shares granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements –Note 34: Remuneration”.

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4. Corporate Governance /4.3 Employee Success Sharing and Incentive Plans

Twenty-second tranche
Date of Board of Directors meeting (grant date)

28 October 2020
Performance Units and Performance Shares plan

Number of units/shares granted(1)Number of units/shares granted through Equity Pool

(2)

Number of units/shares outstanding

Performance Units

Performance Shares

420,004

420,004

1,224

1,224

401,527

401,527

9,920

9,920

Units/shares granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest
number of units/shares during the year 2020
(twenty-second tranche)

48,610Total number of eligible beneficiaries

48,6101,602

Vesting dates: The Performance Units and Shares will vest if the participant is still employed by an Airbus company at the respective vesting
dates and upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years:
Performance Units: 50% expected in May 2024, and 50% expected in May 2025.
Performance Shares: 100% vested in May 2024.

04

---

Number of vested units/sjates--(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of
150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors
can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition).
(2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
* For more information in respect of units and shares granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 34:
Remuneration”.

Twenty-third tranche
Date of Board of Directors meeting (grant date)

15 December 2021
Performance Shares Plan

Number of shares granted(1)Number of shares granted through Equity Pool(2)Number of shares outstanding

520,870
7,438
522,932

Shares granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest number of shares
during the year 2021 (twenty-third tranche)

Total number of eligible beneficiaries

12,121
61,412
1,782

Vesting dates: The Performance Shares will vest if the participant is still employed by an Airbus company at the respective vesting dates
and upon achievement of mid-term business performance. Vesting schedule is expected in May 2025.
Number of vested shares-(1) Based on 100% target performance achievement. A minimum of 50% of Performance Shares will vest; 100% in case of on-target performance achievement; up to a maximum of
150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors
can decide to review the vesting of the Performance Shares including the 50% portion which is not subject to performance conditions (additional vesting condition).
(2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
* For more information in respect of shares granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 34: Remuneration”.

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251

4. Corporate Governance /4.3 Employee Success Sharing and Incentive Plans

Twenty-fourth tranche
Date of Board of Directors meeting (grant date)

14 December 2022
Performance Shares Plan
649,373

Number of shares granted(1)1,348

Number of shares granted through Equity Pool(2)Number of shares outstanding

650,721

Shares granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest number of shares

14,115during the year 2022 (twenty-fourth tranche)

63,471

Total number of eligible beneficiaries

1,574

Vesting dates: The Performance Shares will vest if the participant is still employed by an Airbus company at the respective vesting dates
and upon achievement of mid-term business performance. Vesting schedule is expected in May 2026.
Number of vested shares-(1) Based on 100% target performance achievement. A minimum of 50% of Performance Shares will vest; 100% in case of on-target performance achievement; up to a maximum of
150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors
can decide to review the vesting of the Performance Shares including the 50% portion which is not subject to performance conditions (additional vesting condition).
(2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
* For more information in respect of shares granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 34: 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 33: Share-based payment”.
SHAREHOLDING IN THE COMPANY OF THE MEMBERS OF THE BOARD OF DIRECTORS AT THE END OF 2022
Member of the Board of Directors--- Mr Jean-Pierre Clamadieu-- Ms. Amparo Moraleda-- Ms. Catherine Guillouard-- Mr Ralph Dozier Crosby, Jr.
Mr Guillaume Faury

No other Member of the Board of Directors holds shares or other securities in the Company.

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Shareholding
26,599 ordinary shares
2,000 ordinary shares
1,700 ordinary shares
185 ordinary shares
10 ordinary shares4. Corporate Governance /04

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Chapter

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05
GeneralInformation
5.1

Entity Responsible for
the Universal Registration Document256

5.2

Statement of the Entity Responsible for
the Universal Registration Document

256

5.3

Information Policy

256

5.4

Undertakings of the Company Regarding Information

257

5.5

Significant Changes

257

5.6

Statement on Approval

257

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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 23 March 2020;–– 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; and–– the IFRS Consolidated Financial Statements for the years 2020, 2021 and 2022 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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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 2022.

05

5.6 Statement on Approval
This Universal Registration Document has been filed with the AFM on 4 April 2023 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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Contact Airbus at:
2 rond-point Dewoitine
BP 9011231703 Blagnac Cedex
FranceAirbus SE
Mendelweg 302333 CS Leiden
The Netherlands