Airbus - 2022 Universal Registration Document

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /

2.1 Operating and Financial Review

2.1.1 Overview The Company constantly innovates to provide efficient and technologically-advanced solutions in aerospace, defence, and connected services. In commercial aircraft, Airbus offers modern and fuel-efficient airliners and associated services. The Company is also a European leader in defence, security and space businesses. In helicopters, the Company provides civil and military rotorcraft solutions and services worldwide.

The Company’s consolidated revenues amounted to € 58.8 billion in 2022, of which 80% in the civil sector (compared to 82% in 2021) and 20% in the defence sector (compared to 18% in 2021). As of 31 December 2022, the Company’s active headcount was 134,267 employees, an increase compared to 2021 (126,495 employees).

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2.1.1.1 Exchange Rate Information The financial information presented in this document is expressed in euro, US dollar or pound sterling. The following table sets out, for the periods indicated, certain information concerning the exchange rate between the euro, the US dollar and the pound sterling, calculated using the official European Central Bank fixing rate:

Average

Year-end

€/US$

€/£

€/US$

€/£

31 December 2020

1.1422

0.8897

1.2271

0.8990

31 December 2021

1.1827

0.8596

1.1326

0.8403

31 December 2022

1.0530

0.8528

1.0667

0.8869

2.1.1.2 Reportable Business Segments In 2022, the Company operated in three reportable business segments which reflect the internal organisational and management structure according to the nature of the products and services provided. – Airbus – Development, manufacturing, marketing and sale of commercial jet passenger aircraft of more than 100 seats, freighter aircraft and regional turboprop aircraft and aircraft components; aircraft conversion and related services. It also includes the holding function of the Company and its bank activities. – Airbus Helicopters – Development, manufacturing, marketing and sale of civil and military helicopters; provision of helicopter related services. – Airbus Defence and Space – Military Aircraft design, development, delivery, and support of military aircraft such as combat, mission, transport and tanker aircraft and their associated services. Space Systems design, development, delivery, and support of full range of civil and defence space systems for telecommunications, earth observations, navigation, science and orbital systems. Connected Intelligence provision of services around data processing from platforms, secure communication and cyber security. Unmanned Aerial Systems design, development, delivery and service support. In addition, the main joint ventures design, develop, deliver, and support missile systems and space launcher systems. On 1 January 2022, Airbus Atlantic, a wholly-owned Airbus subsidiary, was established. The new company groups the strengths, resources and skills of Airbus’s sites in Nantes and Montoir-de-Bretagne, the central functions associated with their activities, as well as the STELIA Aerospace sites worldwide. This unification is part of the transformation project announced in April 2021, aimed at strengthening the value chain of aerostructure assembly within Airbus’s industrial setup.

In addition, Airbus Aerostructures GmbH was established on 1 July 2022. The new wholly-owned Airbus subsidiary manages and delivers large structural components to Airbus. It includes four production sites in Germany: the Hamburg plant and headquarters, the plant in Stade, and the former Premium AEROTEC plants of Nordenham and Bremen. Adjacent Premium AEROTEC sites in Augsburg, Varel and Bra ş ov will initially remain in Premium AEROTEC GmbH and are planned to undergo restructuring and, upon successful restructuring, to be integrated into Airbus Aerostructures GmbH by 30 June 2025. These have no impact on the segment structure described above. Consolidation effects are reported in the column “Eliminations”. A320 programme. On 8 April 2020, the Company announced its decision to adapt commercial aircraft production rates to 40 per month for the A320 Family in response to the new COVID-19 market environment. In 2020, 431 A320neo Family aircraft were delivered. On A320, production rates were foreseen to gradually increase from 40 aircraft per month currently to 43 in the third quarter and 45 in the fourth quarter 2021. In 2021, 459 A320neo Family aircraft were delivered. On 28 October 2021, the Company announced that it was working to secure the A320 Family programme ramp up and was on trajectory to achieve a monthly rate of 65 aircraft by summer 2023. In 2022, 516 A320 Family aircraft were delivered. On the A320 Family programme, the ramp-up trajectory has been adapted with suppliers. The Company is now progressing towards a monthly production rate of 65 aircraft by the end of 2024 and 75 in 2026. Entry-into-service for the A321XLR is expected to take place in Q2 2024. 2.1.1.3 Significant Programme Developments in 2020, 2021 and 2022 and Other Financial Topics

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Airbus / Universal Registration Document 2022