Airbus - 2022 Universal Registration Document

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

2.1 Operating and Financial Review

Airbus Defence and Space The following table presents a breakdown of deliveries of Airbus Defence and Space by product type for the past three years.

2022

2021

2020

(In units)

02

A400M

10

8

9

5

5

4

A330 MRTT (Tanker)

13

9

10

Light & Medium aircraft

5

3

1

Telecom satellites

Total

33

25

24

2.1.4.5 Other Income

Airbus Defence and Space’s revenues amounted to € 11.3 billion in 2022 (2021: € 10.2 billion). The increase is mainly driven by higher volume in Military Aircraft and Eurodrone. Airbus Defence and Space’s revenues amounted to € 10.2 billion in 2021 (2020: € 10.4 billion). The decrease was mainly driven by Military Aircraft, partially offset by Space Systems. 2.1.4.2 Cost of Sales Cost of sales increased by 13.3% from €42.5 billion for 2021 to € 48.2 billion for 2022. It mainly reflects the higher deliveries and additional losses recognised on the A400M programme of € 0.5 billion. For 2021, cost of sales decreased by 3.9% from € 44.3 billion for 2020 to €42.5 billion for 2021. It mainly reflects in 2021 continued cost containment and the release of COVID-related provisions while 2020 was impacted by charges recorded in response to the COVID-19 pandemic. 2.1.4.3 Selling and Administrative Expenses For 2022, selling and administrative expenses increased from € 2.1 billion for 2021 to € 2.2 billion for 2022. Selling and administrative expenses remained stable at €2.1 billion for both 2021 and 2020. 2.1.4.4 Research and Development Expenses Research and development expenses increased by 14.8%, from € 2.7 billion for 2021 to € 3.1 billion for 2022. In addition, an amount of € 319 million of development costs has been capitalised, mainly linked to Airbus programmes. See “– 2.1.2.2 Capitalised Development Costs”. For 2021, research and development expenses decreased by 3.9%, from € 2.9 billion for 2020 to € 2.7 billion for 2021. In addition, an amount of € 152 million of development costs has been capitalised, mainly linked to Defence and Space programmes. See “– 2.1.2.2 Capitalised Development Costs”.

and Other Expenses Other income and other expenses typically include gains and losses on disposals of investments, of fixed assets and income from rental properties. Other income and other expenses was € -119 million net as compared to €393 million net for 2021. The decrease includes the impact of € -437 million partly offset by an insurance income of € 200 million both linked to the launch failure of the two satellites Pléiades Neo 5 and 6 in December 2022. In 2021, it included a restructuring provision release of € 207 million and the gain of € 122 million for the divestment of one of its sites to a joint venture. For 2021, other income and other expenses was €393 million net as compared to €-1,326 million net for 2020. The increase includes the gain of € 122 million for the divestment of one of its sites in France to a 50% joint venture. In 2020, it included the COVID-related restructuring provision. 2.1.4.6 Share of Profit from Investments Accounted for under the Equity Method and Other Income from Investments Share of profit from investments accounted for under the equity method and other income from investments principally include results from companies accounted for under the equity method and the dividends attributable to unconsolidated investments. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 10: Investments Accounted for under the Equity Method” and “– Note 16: Share of Profit from Investments Accounted for under the Equity Method and Other Income from Investments”. The Company recorded € 192 million in share of profit from investments accounted for under the equity method and other income from investments as compared to € 116 million for 2021 and €152 million for 2020.

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Airbus / Universal Registration Document 2022