Airbus - 2022 Universal Registration Document

1. Information on the Company’s Activities / 1.1 Presentation of the Company

Space Systems Commercial Sector: Telecommunications Satellites, Launch Services

expected to commence service delivery in the second part of this decade, and other new projects both in the US and in Europe.

Governmental Sector: Satellites, Space Infrastructure, Launchers, Deterrence

The commercial telecommunications satellite market is highly competitive – with customer decisions primarily based on price, technical expertise and track record. The main competitors for telecommunications satellites are Boeing, Lockheed Martin, MAXAR Technologies and Northrop Grumman in the US, Thales Alenia Space in France and Italy, and the China Aerospace Science and Technology Corporation. The commercial geostationary (“ GEO ”) telecommunications satellite market continues to show signs of recovery. On the commercial Low Earth Orbit (“ LEO ”) telecommunications constellations, the demand for small satellites has been lower in 2022 compared to prior years. However, an increasing interest is currently being noted. The business model is challenging due to the high upfront capital expenditure. Airbus is active in this market including its direct involvement in the Airbus OneWeb Satellites joint venture, and has the ambition to play a key role in the new EU Secure Satellite Constellation, known as Infrastructure for Resilience, Interconnection & Security by Satellites (“ IRIS2 ”). In 2015, Airbus OneWeb Satellites was created, an equally owned joint-venture between Airbus and OneWeb, which is building a global high-speed internet constellation of satellites for its sole customer, OneWeb. This participation is entrepreneurial in nature and led to a full re-think of satellite design and manufacturing to produce at competitive costs and on relatively short timelines. After a change in ownership in 2020, the company’s lead investors are now the Indian Bharti Group, the UK government and Eutelsat. The Ukraine crisis in 2022 had a considerable impact on the constellation deployment as Soyuz launchers ceased to be available for use and one batch of satellites still remains at the Baikonur launch site. Nevertheless, three launches took place in 2022, bringing the constellation coverage to almost 80%, with full global service entry due in 2023. Moreover, OneWeb has clear ambitions to create a second generation constellation. With the new Bartolomeo Service, Airbus also offers one stop-shop access to flying payloads in Low-Earth Orbit on the outside of the International Space Station (“ ISS ”), which means easy access to Space for both commercial and institutional customers. The first launch is expected in 2023. The market for commercial launch services continues to evolve with ongoing competitive pressure. Arianespace (a subsidiary of ArianeGroup) provides a complete range of launch services with the Ariane and Vega launchers. Competitors for launch services include SpaceX, United Launch Alliance, Rocket Lab (for smaller payloads) and national space agencies. Due to the phasing out of Ariane 5, the ongoing investigation into Vega-C following the launch failure in December 2022 and the delay of the first flight of Ariane 6, 2023 will be a transition year due to limited launch capacity. However, the accessible market to Arianespace for commercial launch services for geostationary satellites is expected to be at around 15-20 payloads per year, decreasing both in mass and in number of launchers compared to the equivalent market five-six years ago. The commercial market also sees the rise of large constellations for global connectivity, with the completion of OneWeb first generation, the launch of prototypes for the Kuiper constellation which is

In the public market for Earth Observation (“ EO ”), navigation and science satellites, competition in Europe is organised on a national and multinational level, primarily through the European Space Agency (“ ESA ”), the European Commission and national space agencies. Space Systems remains a major player in the EO segment, involved in the 12 existing and future Copernicus environment missions. The company was awarded a contract by ESA in 2022 for the development of the Earth Explorer FORUM satellite (Far infrared Outgoing Radiation Understanding and Monitoring). In November 2022, the ESA Ministerial Council concluded with the announcement of an investment of almost €17 billion, an increase of 17% from the last Council at Ministerial level, a clear recognition of the importance of space, especially in the current economic and geopolitical context. Airbus Defence and Space welcomes this decision and stands ready to support ESA, who remains one of its main customers and partners. There is also significant export demand for EO systems. At the end of 2022, Airbus signed a contract with Poland for the provision of two very high resolution S950 Optical satellites and access to Pléiades Neo imagery from 2023. The export market is expected to continue growing over the medium-term driven by the demand from new governmental operators on top of the replacement of existing assets. Airbus Defence and Space is building on its re-established position on the navigation side, as it continues to work in the manufacturing of six Galileo second generation satellites for Europe’s navigation system. It also achieved in 2022 a key milestone on the EGNOS V3 navigation overlay system, critical for the aircraft industry. The space exploration segment comprises scientific missions, with both crewed and uncrewed space systems, mainly used for solar system exploration. Demand for space exploration systems originates solely from publicly funded space agencies, in particular from ESA, NASA, and JAXA (Japan). Such systems are typically built in cooperation with international partners. The predominant field of activity on this segment is the continuing support to the operations of the ISS, together with vehicle and equipment development programmes and services. Airbus Defence and Space is the prime contractor for the Orion European Service Module (“ ESM ”) for NASA’s Artemis Moon return missions, with six modules under contract. In 2022, the Orion spacecraft successfully completed the first full test mission (Artemis I), with a trip around the moon. As the future exploration plans of the various national space agencies take shape with a growing focus on a sustainable return to the moon and further Mars exploration, Space Systems is taking an important role in providing vehicles, platforms and services to support these ambitious endeavours. Given the increasing focus on defence in Space since the outset of the Ukraine war, there is growing attention to the militarisation of Space. Airbus Defence and Space will support nations by providing connectivity, information superiority and in-space operations for defence.

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Airbus / Universal Registration Document 2022