Airbus - 2022 Universal Registration Document

Risk Factors / 1 Financial Market Risks

The Company is subject to the risks and uncertainties described below that may materially affect its business, results of operations and financial condition. These are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company, or that it currently considers immaterial may also impair its business and operations. Although a certain degree of risk is inherent in the Company’s business (as described in the risk factors mentioned in this section), the Company endeavours to minimise risk to the extent reasonably possible. To achieve its strategy, the Company is prepared to take modest or low event risks to provide sufficient predictability on profitability and cash flow given the necessity to stay competitive, invest in research and development and manage the diversified business portfolio in a world of uncertain market and economic conditions. Due to the importance of programmes and operations for the Company, a particular focus is put on the operational dimension of risk identification and management. Within the area of legal and compliance risks, the Company seeks to ensure that its business practices conform to applicable laws, regulations and ethical business principles, while developing a culture of integrity. Regarding financial risks, our risk approach can be qualified as prudent and the Company aims to minimise the downside risk through an appropriate liquidity buffer, moderate financial leverage and the use of hedging derivatives and other insurance products.

1. Financial Market Risks

Global Economic Conditions The Company’s business, results of operations and financial condition are materially affected by global economic conditions. Market disruptions and significant economic downturns may develop quickly due to, among other things, crises affecting credit or liquidity markets, regional or global recessions, sharp fluctuations in or sustained high commodity prices (including gas and oil), energy shortage or unavailability, currency exchange rates or interest rates, rapid increases in or sustained high levels of inflation or deflation, sovereign debt and bank debt rating downgrades, restructurings or defaults, or adverse geopolitical events (including armed conflicts such as Russia’s invasion of Ukraine, rising tensions around the world, global pandemic diseases such as COVID-19 or the impact of potentially conflicting policies from the United States (“ US ”), European Union, Russia and China with ramifications beyond their borders). Recent US administrations have introduced greater uncertainty with respect to US tax and trade policies, tariffs and government regulations affecting trade between the US and other countries. Such measures, and the countermeasures they provoked, affected and may continue to affect countries where our customers and suppliers are located or where the Company has an operational presence or to which its financing activities are linked. See “– Business-Related Risks – Ukraine Crisis”,

“– Business-Related Risks – COVID-19 Risks” and “– Business Related Risks – Availability of Government and other Sources of Financing”. The Company’s global presence includes France, Germany, Spain and the UK as well as fully-owned subsidiaries in the US, China, Japan, India and in the Middle East, and spare parts centres in Hamburg, Frankfurt, Washington, Beijing, Dubai and Singapore. At the end of 2022, the Company had engineering and training centres in Toulouse, Miami, Mexico, Wichita, Hamburg, Bangalore, Beijing and Singapore. There are also hubs and field service stations around the world. The Company also relies on industrial co-operation and partnerships with major companies and a wide network of suppliers. This global presence entails the risk of being affected by weak market and economic conditions in particular in Europe, the US and Asia where it manufactures and to which it sells the majority of its products. It is a priority to ensure that the Company can identify, attract, develop and retain a world-class competent, motivated and flexible workforce, which fits current business requirements and future business needs in each of the countries in which the Company has a presence. A change in economic conditions in any of the geographies where the Company has significant numbers of employees or key employees may therefore impact its ability to compete effectively for employees in such countries.

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Airbus / Universal Registration Document 2022