AIRBUS - 2020 Universal Registration Document

4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers

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 2020, the VR of the CEO amounts to an aggregate of €1,404,000 composed of €391,500 (58%) for the Common Collective Component and €1,012,500 (150%) for the Individual Component.

Common Collective Component: € 391,500 Achievement: 58%

Variable Remuneration of CEO in 2020: € 1,404,000

Individual part: € 1,012,500 Achievement: 150%

Performance Achievement – Common Collective Component According to the policy applicable for the financial year 2020, the Common Collective Component for the Company consolidated achievement amounts to 58%. It is based on an achievement of 20% of target EBIT, 27% of target Free Cash Flow, and 200% of target R&S. These criteria apply to all executives having a Common Collective Component in their variable remuneration. As one of the Company’s priorities is to provide a safe and inclusive working environment, it was decided early 2020 that the R&S target for 2020 should be a 15% reduction in Airbus’ accident frequency rate (measured by the rolling Lost Time Injury Frequency rate (“ FR1 ”), which is the monthly number of lost time injuries per million worked hours averaged over 12 months) compared to 2019. Safety is reviewed across the whole group as further detailed in the Health and Safety Section 1.1.7 b) and Airbus’ FR1 performance is reported on a monthly basis to the CEO for his health and safety review.

20%

EBIT

= 58%

27%

FCF

200%

R&S (FR1)

Minimum Achievement 0%

Maximum Achievement 200%

The exceptionally low level of achievement for EBIT and Free Cash Flow is explained by the significant impact of COVID-19 on Airbus Commercial performance, partly mitigated by the A400M positive achievements. Given its prominent size, Airbus Commercial counter performance could not be compensated by the strong achievements of Airbus Helicopters and Airbus Defence and Space. Normalisations were made to exclude exceptional events such as currency exchange differences or restructuring. Finally, R&S annual target has been overachieved by more than 200% in the exceptional COVID-19 circumstances. The initial objective was to decrease the FR1 from 6.18 (1) to 5.25. At the end of 2020, FR1 has been measured at 3.81. For 2021 R&S component, in addition to the FR1 value driver used in 2020, the Board of Directors decided to select a climate value driver in line with its significant impact in the materiality assessment of the Company’s approach to R&S (See “– Information on the Company’s Activities – Non-Financial Information – 1.2.1 Airbus’s Approach to Sustainability” and “– 1.2.3 (b) Health and Safety”). In order to support the Company’s target of reducing CO 2 emissions by 40% by 2030, the Board of Directors decided to translate this ambition into a concrete objective and include the CO 2 reduction target in the collective variable remuneration of the CEO and all executives. The objective proposed for 2021 is a reduction of 3% versus our actual 2020 CO 2 emissions of our industrial sites and operations. The reference used for 2020 takes into account the effect of the COVID-19 crisis on the production rates while keeping our 2030 target in mind. It was therefore decided that for 2021 the R&S component would be composed as follows: FR1 for 50% and CO 2 avoidance for 50%.

(1) The 6.18 figure corresponds to the 2019 FR1 figure of 5.58, but includes apprentices and temporary employees together with the Airbus’ active workforce.

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Airbus / Registration Document 2020