AIRBUS - 2020 Universal Registration Document
Risk Factors / 1 Financial Market Risks
The Company is subject to the risks and uncertainties described below that may materially affect its 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 the risk 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 stay competitive, invest in R&D 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 business principles, while developing a culture of integrity. Regarding financial risks, our risk approach can be qualified 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, results of 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 commodity prices (including oil), currency exchange rates or interest rates, in ation or de ation, sovereign debt and bank debt rating downgrades, restructurings or defaults, or adverse geopolitical events (including the impact of Brexit, discussed below and global policy including in the United States (“ US ”), European Union and China) or global pandemic diseases such as COVID-19. The previous US administration introduced greater uncertainty with respect to US tax and trade policies, tariffs and government regulations affecting trade between the US and other countries. Such measures 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 “– The Company’s business, results of operations and financial condition could be materially affected by Brexit”, “– Business- Related Risks – COVID-19 Risks” and “– Business-Related Risks – Availability of Government and other Sources of Financing”.
The Company’s global presence includes France, Germany, Spain and the UK, fully-owned subsidiaries in the US, China, Japan, India and in the Middle East, and spare parts centres in Hamburg, Frankfurt, Washington, Beijing, Dubai and Singapore. The Company also has engineering and training centres in Toulouse, Miami, Mexico, Wichita, Hamburg, Bangalore, Beijing and Singapore, as well as an engineering centre in Russia. 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 the risk 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. As of 31 December 2020, the Company’s workforce amounted to 131,349 employees of which over 15,000 employed outside our core countries. In terms of nationalities, 35.7% of the Company’s employees are from France, 32.3% from Germany, 7.7% from the UK and 9.8% from Spain. US nationals account for 2.1% of employees. The remaining 12.4% are employees coming from a total of 134 other countries. In total, 89.9% of the Company’s active workforce is located in Europe on more than 100 sites. It is a priority to ensure that the Company can attract, develop and retain a world-class competent, motivated and exible workforce, which fits current and future business requirements
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Airbus / Registration Document 2020
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