Airbus - 2022 Universal Registration Document

Risk Factors / 2 Business-Related Risks

& 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 portfolio of service solutions.

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

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, have resulted 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 economic crisis. As a result, airlines reduced capacity, grounded portions of their fleets and sought to implement measures to reduce cash spending and secure liquidity. Some airlines also sought arrangements with creditors, restructuring or applying for bankruptcy or insolvency protection, which may have further consequences for the Company and its order book as well as other consequences resulting from the related proceedings. The Company will continue to face additional risks and uncertainties resulting from future consequences of the health and economic crisis 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 taken by 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 deliver products 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 as well as customers’ ability to take delivery of aircraft. The Company has been adversely affected by weak market and economic 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) additional requests by customers to postpone delivery or cancel existing orders for aircraft (including helicopters) or other products including services, (ii) decisions by customers to review their fleet 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, the Company 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 face significant risks and uncertainties related to certain regions including China. There can be no assurance that the Company’s business, results of operations and financial condition will not be materially affected by other pandemics in the future. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 3: Macroeconomic Environment”.

Ukraine Crisis

in March 2022 it has suspended the delivery of aircraft and support 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 office in Moscow and the Space Division’s two joint ventures in Russia, Energia Satellite Technologies and Synertech). See “– Legal risks – Export Control Laws and Regulations” below.

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 have resulted in disruption to the Company’s business, its operations, data management and supply chain. Following the imposition of export control restrictions and sanctions by the EU, the UK, the US and other countries that are relevant to the Company’s business, the Company announced

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Airbus / Universal Registration Document 2022