AIRBUS - 2020 Financial Statement

2. Notes to the IFRS Consolidated Financial Statements / 2.6 Employees Costs and Benefits

The lifetime of the Performance Units as well as Performance Shares is contractually fixed (see the description of the respective tranche in the following table). For the units, the measurement is

next to other market data, mainly affected by the share price as of the end of the reporting period (€89.78 as of 31 December 2020) and the lifetime of the units.

The fair value of units and shares granted in the frame of the LTIP 2020 plan is as follows: Expected vesting date (In € per unit / share granted)

Fair value of Performance Units and Shares

May 2024 – Performance Shares May 2024 – Performance Units May 2025 – Performance Units

55.492 51.045 46.977

The principal characteristics of the LTIPs as at 31 December 2020 are summarised below:

LTIP 2015 (7)

LTIP 2016 (8)

LTIP 2017 (9)

LTIP 2018

LTIP 2019

LTIP 2020

Grant date (1)

29 October 2015 25 October 2016 30 October 2017 30 October 2018 29 October 2019 28 October 2020 Performance and Restricted Unit Plan Performance Units and Performance Shares Plan

Units

Performance Restricted Units

Shares

Units

Shares

Units

Shares

Units

Shares

Units

Shares

Number of units granted (2) Fair value at grant date (3) Fair value of Performance Units as of 31 December 2020 (3) Number of units/ shares granted through Equity Pool (4) Number of units outstanding (5)

926,398 240,972 615,792 621,198 421,638 425,702 278,376 281,181 247,508 247,508 420,004 420,004

56.92/ 53.90

56.92/ 53.90

45.13/ 44.71 45.15

74.83/ 71.69 76.76

84.09/ 83.28 85.01

112.83/ 108.44 112.92

51.04/ 46.98 55.49

88.76/ 85.41

87.10/ 84.17

84.64/ 81.41

75.49/ 72.50

-

-

85.88

-

-

-

-

-

-

-

1,762 1,762 1,898 1,898 6,964 6,964 4,343 4,252

-

-

0

0

212,293

0 197,470 199,502 275,379 278,184 248,901 248,810 420,004 420,004

Total number of eligible beneficiaries

1,564

1,671

1,601

1,626

1,576

1,602

The Performance and Restricted Units and Performance Shares will vest if the participant is still employed by a company of the Group at the respective vesting dates. Performance Units and Shares will vest upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years.

Vesting conditions

Share price per unit limited at vesting dates to (6)

€112.62

€105.34

-

€147.62

-

€213.88

-

€244.12

-

€136.08

-

50% in May 2020 and 50% expected in May 2021

50% each expected: in June 2021 in June 2022

50% each expected: in June 2022 in June 2023

50% each expected: in June 2023 in June 2024

50% each expected: in June 2024 in June 2025

50% in June 2019 50% in July 2020

100% expected in May 2021

100% expected in May 2022

100% expected in May 2023

100% expected in May 2024

100% in June 2020

Vesting dates Number of vested units

646,328 223,822 214,108 429,335

0

0

0

0

0

0

0

0

(1) Date, when the vesting conditions were determined. (2) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT of the Company) during the performance period, the Board of Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition). (3) Values are provided for units corresponding per vesting date. (4) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions. (5) Including shares granted through the Equity Pool, if applicable. (6) Corresponds to 200% of the respective reference share price. Overall, the pay-out for Performance Units is limited to a total amount of 250% of the units originally granted, each valued with the respective reference share price of €56.31 (for LTIP 2015), €52.67 (for LTIP 2016), €73.81 (for LTIP 2017),€106.94 (for LTIP 2018), €122.06 (for LTIP 2019) and €68.04 (for LTIP 2020).

(7) Based on performance achievement of 75% for Performance Units under LTIP 2015. (8) Based on performance achievement of 75% for Performance Units under LTIP 2016. (9) Based on performance achievement of 50% for Performance Units under LTIP 2017.

Additionally, the Board of Directors approved in 2020 the exceptional grant of 4,152 Restricted & Performance Units and 571 Restricted & Performance Shares under the Equity Pool with an average fair value of €79.00. 5,899 Units and 2,787 Shares have vested in 2020. As of 31 December 2020, the number of units outstanding is 5,432 Units and 3,222 Shares.

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Airbus / Financial Statements 2020