Airbus // Universal Registration Document 2021

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

2.1 Operating and Financial Review

2.1.1 Overview The Company constantly innovates to provide efficient and technologically-advanced solutions in aerospace, defence, and connected services. In commercial aircraft, the Company offers modern and fuel-efficient airliners and associated services. The Company is also a European leader in defence and security and one of the world’s leading space businesses. In helicopters, the Company provides the most efficient civil and military rotorcraft

solutions and services worldwide. The Company’s consolidated revenues amounted to €52.1 billion in 2021, of which 82% in the civil sector (compared to 79% in 2020) and 18% in the defence sector (compared to 21% in 2020). As of 31 December 2021, the Company’s active headcount was 126,495 employees, a decrease compared to 2020 (131,349 employees).

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2.1.1.1 Exchange Rate Information The financial information presented in this document is expressed in euro, US dollar or pound sterling. The following table sets out, for the periods indicated, certain information concerning the exchange rate between the euro, the US dollar and the pound sterling, calculated using the official European Central Bank fixing rate:

Average

Year-end

€/US$

€/£

€/US$

€/£

31 December 2019

1.1195

0.8778

1.1234

0.8508

31 December 2020

1.1422

0.8897

1.2271

0.8990

31 December 2021

1.1827

0.8596

1.1326

0.8403

2.1.1.2 Reportable Business Segments The Company operates in three reportable business segments which reflect the internal organisational andmanagement structure according to the nature of the products and services provided. – – Airbus – Development, manufacturing, marketing and sale of commercial jet aircraft of more than 100 seats, aircraft conversion and related services; development, manufacturing, marketing and sale of regional turboprop aircraft and aircraft components. It also includes the holding function of the Company and its bank activities. – – Airbus Helicopters – Development, manufacturing, marketing and sale of civil and military helicopters; provision of helicopter related services. – – Airbus Defence and Space – Military Aircraft design, development, delivery, and support of military aircraft such as combat, mission, transport and tanker aircraft and their associated services. Space Systems design, development, delivery, and support of full range of civil and defence space systems for telecommunications, earth observations, navigation, science and orbital systems. Connected Intelligence provision of services around data processing from platforms, secure communication and cyber security. In addition, the main joint ventures design, develop, deliver, and support missile systems as well as space launcher systems. Unmanned Aerial Systems design, development, delivery and service support. On 21 April 2021, the Company presented its plans to create integrated aerostructures assembly companies in both France and Germany, and a third company as a new global player in the detail parts business, anchored in Germany. The plans have no impact on the segment structure described above (see “Notes to the IFRS Consolidated Financial Statements – Note 40: Events after the Reporting Date”). Consolidation effects are reported in the column “Eliminations”. The activities related to innovation and digital transformation, formerly reported in the column “Transversal/Eliminations”, are included in the Business segment Airbus under the new segment structure.

2.1.1.3 Significant Programme

Developments in 2019, 2020 and 2021 and Other Financial Topics A380 programme. Airbus delivered five A380 aircraft in 2021, four in 2020 and eight in 2019. As of 31 December 2018, the Company’s largest A380 operator reviewed its aircraft fleet strategy going forward and concluded it was forced to restructure and reduce its A380 order by 39 aircraft. As a consequence, the recognition of the onerous contract provision as well as other specific provisions and the remeasurement of the liabilities affected the consolidated income statement before taxes by a net €463 million in EBIT and positively impacted the other financial result by €177 million as of 31 December 2018. As a consequence and in addition to the net charge recorded in 2018, the Company recorded a net charge of €385 million in EBIT in 2020 and of €202 million in 2019, as part of its continuous assessment of asset recoverability and review of onerous contract provision assumptions. The Company delivered the last A380 aircraft in 2021. In 2021, a positive EBIT impact of €274 million was recorded, mainly reflecting the release of provision recorded in 2018 on the former A380 Lagardère facility that will be used for the modernised A320 FAL. A350 XWB programme. In 2019, Airbus delivered 112 A350 XWB aircraf t. New order intakes, cancellations, delivery postponements and other contractual agreements to the end of December 2019 were reflected in the Financial Statements. Risks continued to be closely monitored in line with the schedule, aircraft performance and overall cost envelope, as per customer commitments. Despite the progress made, challenges remained with recurring cost convergence. The breakeven target for the A350 was achieved in 2019. Given overall customer demand for widebody aircraft, Airbus expected A350 deliveries to stay between a monthly rate of nine and ten aircraft.

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Airbus / Registration Document 2021