AIRBUS - 2020 Universal Registration Document

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

in the spirit of providing the highest level of transparency to our shareholders and to adhere to best practices, retrospective information demonstrating the stringency of the targets set by the Board of Directors is provide for the previous LTIP, as follows:

For reasons of confidentiality, the precise targets set for the average EPS and cumulative Free Cash Flow, even though they have been properly established and validated in a suitable manner, cannot be publicly disclosed as these objectives are considered as competitive sensible information. Nonetheless,

For comparison, average EPS for the last three reported years at the date of grant

Compounded performance achievement in percentage

Target for a 100% allocation Achieved

Performance achievement in percentage

Resulting vesting in number

Date of grants

Number of units

KPI

€4.02

€2.95

50%

Ave EPS

75% 7,992

€2.10 (1)

2015

10,656

Cum FCF Ave EPS Cum FCF Ave EPS Cum FCF

€8,281m €10,469m

150%

€4.40

€3.35

50%

75% 8,544

2016

11,392

€2.76 (2)

€5,774m €11,218m

150%

€6.00

€1.83

50% 50%

50% 4,404

2017

8,808

€2.28 (3)

€9,339m €4,331m

(1) Average EPS of 2014, 2013 and 2012. (2) Average EPS of 2015, 2014 and 2013. (3) Average EPS of 2016, 2015 and 2014.

h) Retirement Until the end of 2019, the retirement benefit of the CEO accrued through a defined benefit commitment which consists of granting a pension at retirement age equal to 50% of the Base Salary for five years of service in the Executive Committee, including mandatory applicable collective and state pension plans. Such a percentage of pension would accrue gradually to 60% of the Base Salary after ten years of service within the Executive Committee. Following the Board of Directors decision approved in the AGM 2020, the accrued pension rights under this commitment have been frozen based on the seniority of the CEO as Executive Committee member at the end of 2019. A target replacement 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 the retirement date of the CEO. The pension rights arising from the Company’s def ined 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 described above. The present value of the remaining CEO’s pension obligation related to the frozen defined benefit commitment is estimated annually by an independent actuarial firm according to the international accounting standard IAS 19 as applied by the Company for post-employment benefits. As of 31 December 2020, the defined benefit obligation amounted to €9,423,777 (€9,167,371 in 2019). This obligation has been accrued in the 2020 Consolidated Financial Statements and will be updated annually up to the retirement date of the CEO considering future changes on economic assumptions or other factors like salary increase. For the fiscal year 2020, the cost related to the CEO’s pension rights accrued under Company’s plans during the year represented an expense of €1,179,332 (versus a net profit of € (2,814,868) in 2019 due to the effect of the freeze of the defined benefit commitment).

Based on the above, the ratio between the fixed part of the remuneration of the CEO in 2020 (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 2020 paid-out in 2021 and LTIP vesting in 2020) is 49% / 51%. e) Share Ownership The CEO owned 21,131 Airbus SE shares on 31 December 2020. The CEO has engaged a personal investment plan in Airbus SE shares to reach the target of 200% of the Base Salary by 2021. 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 2020, the Company offered all eligible employees the opportunity to subscribe to a share matching plan, through which 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 44%. The total offering was up to 2.2 million shares of Airbus SE, open to all qualifying employees. Information about the plan can be found on the Company’s website. Under the umbrella of the ESOP 2020, a dedicated UK tax advantageous Share Incentive Plan (“ SIP ”) was also deployed in March 2020. Although the CEOwas eligible for the plan, he did not participate in the ESOP 2020 plan favouring the development of a shareholding among other employees of the Company. g) Benefits Costs of benefits provided through applicable mandatory collective and social security plans are accounted for among social charges (please refer to Note 34 to the IFRS Consolidated Financial Statements for further details). The monetary value of other benefits provided to the CEO in 2020 amounts to €33,790.

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Airbus / Registration Document 2020