Airbus - 2022 Universal Registration Document

1. Information on the Company’s Activities /

1.1 Presentation of the Company

01

Customer Services Through its Customer Services activities, Airbus aims to ensure safe, efficient and sustainable aircraft operations thanks to a wide range of customer centric and value-added services. In 2022, the worldwide economy and air travel industry showed regional recovery disparities with North and Latin America, Europe, Africa and the Middle East leading the number of flight cycles and Asia and China still at lower levels than 2019. 2022 closed with an average of 86% flight cycles compared to 2019. Together with the growing aircraft operators’ appetite for solutions to further optimise, digitalise and decarbonise their operations, Airbus aftermarket saw an improvement in the demand for existing and new products and services. Here are some examples: – recovering number of Airbus Flight Hour Services (FHS) and cabin upgrades deals; – Skywise Digital Alliance materialising the first products via Skywise Predictive Maintenance; – Airbus Beluga Transport new company was created and the first successful missions for non Airbus commercial internal needs performed; – Satair’s acquisition of VAS for the extension of the multi-fleet Used Serviceable Material (USM) product portfolio; – Airbus Lifecycle Center development in China with the ground breaking ceremony in July and the start of the site construction with a planned entry into service in 2023. In 2023, the priority of Customer Services will be to keep accompanying and supporting its customers in the safe and efficient return back to service and ramp-up of their activities. To do so, a range of solutions are available to help reduce customers´ operating costs, increase aircraft availability, and enhance the quality of their operations and passenger experience. With a worldwide network of 6,500 employees (including subsidiaries) made up of hundreds of technical specialists who provide Airbus’ customers with advice and assistance 24 hours a day, seven days a week; 250 field service representatives positioned in over 100 cities worldwide for on-site assistance to our operators and system of empowered local teams in Asia, Africa, China the Middle East and the US; Airbus targets to remain at the forefront of the industry. To succeed in this context, Customer Services will continue working on the transformation plan started before the crisis based on three pillars (customer value, customer experience and sustainability) through optimisation and simplification of our products and further industrialisation of activities to decrease costs and increase efficiency; becoming a relevant contributor to the financial success of Airbus. Aircraft Leasing Trading and Financing Airbus favours cash sales, and does not envisage customer financing as an area of business development. However, Airbus recognises the commercial need for manufacturers to assist customers in arranging financing of new aircraft purchases, and in certain cases to also participate in the financing, particularly during a time of crisis. Extension of credit or assumption of exposure is subject to corporate oversight and monitoring, and follows strict standards of discipline and caution. Airbus’ dedicated customer finance

team has accumulated decades of expertise in aircraft finance. When Airbus finances a customer, the financed aircraft generally serves as collateral, with the engine manufacturer participating in the financing. These elements assist in reducing the risk borne by Airbus. The difference between the gross exposure resulting from the financing and the collateral value is fully provisioned for (for further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 28: Sales Financing Transactions”). Airbus’ customer financing transactions are designed to facilitate subsequent sell-down of the exposure to the financial markets, third-party lenders or lessors. In 2022, Airbus continued to benefit from market appetite for both aircraft financing and sale and leaseback lessor opportunities, supported by a sustained level of liquidity available in the market. Airbus customer financing exposure remained limited, as it has done throughout the COVID-19 pandemic, and has actually decreased compared to 2019. Airbus will continue to provide direct aircraft financing support as it deems necessary. Management believes, based on its experience, that the level of provisioning protecting Airbus from default costs is adequate and consistent with standards and practice in the aircraft financing industry. See “– Risk Factors – Financial Market Risks – Sales Financing Arrangements”. Trading activity has not changed substantively and it continues to consist mainly in (i) supporting new aircraft sales campaigns through the trading (cradle to grave) and the placement of all types of used aircraft (for cash or lease), (ii) assisting Airbus entities/internal departments in finding/placing aircraft assets on the market (iii) managing and assisting in the remarketing of inventory aircraft and (iv) acting as remarketing agent for an airline/financier to remarket its aircraft. Trading activity also involves the sell down of leases, loans (secured and unsecured) and design of structured lease solutions with customers’ credits. Airbus’ industrial organisation reflects the end-to-end industrial flow in single aisle and wide-body value streams respectively. Production flows from the supply chain, the newly set up Aerostructures companies in 2022, through constituent and major component (wing, forward and aft fuselage, and nose and centre fuselage) assembly through to final assembly in Toulouse, Hamburg, Tianjin and Mobile. Aircraft are then handed over to programme management for delivery to customers. The industrial flow is secured by Quality and enabled by Procurement as well as four transverse functions responsible to provide the skills, standards and services necessary for (1) smooth industrial planning, logistics and transport, (2) integrated manufacturing engineering, (3) eradication and prevention of non-quality, and (4) highest operational excellence and sound performance management. The Procurement organisation is responsible for both the contractual and operational relationship with the supplier base. Its aim is to ensure that purchased raw materials, parts and services are delivered at the most competitive conditions, on time, cost and quality. A dedicated Procurement Operations team manages the delivery stream from the supply chain in accordance with the agreed conditions to enable the production fl ow. Operations Industrial Organisation

41

Airbus / Universal Registration Document 2022