Airbus - 2022 Universal Registration Document

1. Information on the Company’s Activities /

1.1 Presentation of the Company

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total of 497 (479 UH-72A & 18 UH-72B) deliveries to the US Department of Defense for operation by US Army and Army National Guard units, the Navy and foreign military sales buyers. Customer Services With more than 3,100 operators in over 150 countries, Airbus Helicopters has a large fleet of more than 12,000 in service rotorcraft to support. As a result, customer service activities to support this large fleet generated 45% of Airbus Helicopters’ revenues for 2022. Airbus Helicopters’ customer service activities consist primarily of maintenance, repairs, spare parts supply, training and technical support. In order to provide efficient worldwide service, Airbus Helicopters has established an international network of subsidiaries, authorised distributors and service centres. Operations Strategy The roll-out of the new industrial model for Operations based on site specialisation, the introduction of an improved industrial architecture and the progressive deployment of flexible lines is almost complete. The last internal transfer of activity in the context of the site specialisation is ongoing. By concentrating the production sites in specific helicopter sections or technologies, the competitiveness of our operations will be boosted and the overall performance significantly increased, while improving the factories’ resilience to market fluctuations through the contribution of each site to the entire product range. Alongside the site specialisation, the introduction of an improved industrial architecture is deployed, with major sub assemblies produced, assembled and tested in parallel, thus shortening the industrial cycle. The reduction of the lead-time, in particular in the final assembly lines, will decrease the inventories and shorten the delivery time to our customers. Also, the ability to adapt quickly to market evolutions is key. The flexibility of the production lines to assemble different products is being developed to adjust the industrial system in a rapid manner to changing market requirements. A further key element of the Operations strategy is the enhancement of the logistic set-up supporting the new industrial model. 2023 will be marked by the entry into service of the “one log” hub in Albacete, Spain. The hub will enable the rationalisation of the logistic flows, moving from

a “point to point” concept with spread flows, to a global logistics approach that will contribute to the competitiveness of operations. In parallel to the new improved industrial set-up, the Operations organisation is increasing the focus on the quality and the operational performance in key helicopter components through the Centres of Excellence, for example Rotors and Transmissions. The Centres of Excellence will federate all departments in the Helicopters organisation – from Engineering, through Procurement & Supply chain, Quality and Production – to deliver best in class safety, quality and performance. The global industrial footprint of Airbus Helicopters continues to be developed to improve our product cost in the “make” perimeter and provide opportunities for the rationalisation of our supply base. While keeping more complex activities in the main sites in France, Germany and Spain, simpler work packages are allocated to the Divisions’ sites in “best cost countries”. In 2023, the facility in Querétaro, Mexico, specialised in aluminum machined parts, will increase their workload. Additionally, the Division’s new facility in Gyula, Hungary, inaugurated in 2022 and specialised in hard metals machining, will deliver its first parts in 2023. Simultaneously to our internal industrial system competitiveness, the Operations strategy keeps a strong focus on the extended enterprise. Since the pandemic, the supply chain monitoring and risk management has been strengthened, increasing the capacity to anticipate and mitigate potential disruptions and secure business continuity. The sourcing strategy is being implemented, reshaping our supply base to secure its current and future industrial performance, competitiveness and maturity, as an essential part of the overall Helicopters industrial ecosystem. Reducing the environmental footprint of the industrial activities is a paramount axis of the Operations strategy. Numerous projects supported by important investments are being developed in all the sites, focusing on the reduction of our CO 2 and VOC emissions, energy and water consumption and also in the generation of waste. Finally, the Operations strategy is paying a special attention to preparing the future of the factories, industrial processes and systems. In particular, the ongoing digital transformation programmes will redefine the industrialisation and production of our helicopters, enabling a major reduction of our industrialisation cycles, raising our efficiency, setting a new standard of quality while safeguarding our Cybersecurity.

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Airbus / Universal Registration Document 2022