Airbus // Universal Registration Document 2021

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

2.1 Operating and Financial Review

As of 31 December 2021 and 31 December 2020, the restructuring provision in response to the COVID-19 pandemic amounted to €0.1 billion and €1.0 billion respectively. It reflects the utilisation of the restructuring provision for an amount of €0.6 billion, the release of €0.2 billion and €0.2 billion reclassified to liabilities to reflect the progress of the plan. Operational assets. As of 31 December 2020, the Company performed a comprehensive review of its operational assets and liabilities taking into account the amended production rates and expected future deliveries. This review resulted in charges being recorded in 2020 for an amount of €1.3 billion, including an impairment of inventories considered at risk of €355 million, additional provisions relating to A380 programme of €279 million, a write-off of capitalised development costs of € 101 million, provisions for supplier commitments of € 157 million and provisions covering various commercial risks of approximately €401 million. As of 31 December 2021, year-to-date financials reflect deliveries as well as efforts on cost containment and competitiveness. Furthermore, the Company has performed a comprehensive review of provisions and depreciations, taking into account the amended production rates and expected future deliveries. Consequently, the Company recorded €0.6 billion of release of COVID-related provisions including restructuring in 2021. Litigation. For information, see “– 1.1.7 Legal and Arbitration Proceedings” and “Notes to the IFRS Consolidated Financial Statements – Note 24: Provisions, Contingent Assets and Contingent Liabilities”. 2.1.1.4 Current Trends As the basis for its 2022 guidance, the Company assumes no further disruptions to the world economy, air traffic, the Company’s internal operations, and its ability to deliver products and services. The Company’s 2022 guidance is before M&A. On that basis, the Company targets to achieve in 2022 around: 720 commercial aircraft deliveries; EBIT Adjusted of €5.5 billion; and Free Cash Flow before M&A and Customer Financing of €3.5 billion. This guidance has been prepared on the basis of certain assumptions, including the principal assumptions as set out below. The principal assumptions within the Company’s control are as follows: (a) underlying commercial aircraft deliveries are based on existing orders. Revenues from other activities are also based on existing orders and may include estimates based on relevant market forecasts; (b) no significant interruption in operational performance or programme execution; (c) no disruption in or change to the development of products or other development projects; and (d) no material change to the Company’s existing capital structure. The principal assumptions outside the Company’s control are as follows: (a) no material change in general trading conditions, economic conditions, competitive environment or levels of demand which would materially affect the Company’s business; (b) the Company’s internal operations do not suffer further disruptions or from external interruptions; (c) suppliers will meet their delivery commitments and ensure maturity, availability and in-service performance; (d) no material change in the ability or willingness of our customers to meet their contractual obligations, including payment obligations to the Company; (e) no changes

partially termed out by bond and USPP issuances whereas the remaining portion matured on 30 September 2021, the withdrawal of 2019 dividend proposal with cash value of €1.4 billion, the suspension of voluntary top up pension funding and strong focus on support to customers and delivery. In parallel, governmental partners supported the aerospace sector since the beginning of the crisis either through direct support to airlines and suppliers, or through partial unemployment schemes. With these decisions, the Company had available liquidity to cope with additional cash requirements, including the amended production rates as described above. On 21 October 2020, the Company signed a new €6 billion Revolving Syndicated Credit Facility also partially terming out the €15 billion credit facility by €3 billion in order to refinance its existing €3 billion Revolving Syndicated Facility. As of 31 December 2020, the Company had a net cash position of €4.3 billion with a total liquidity of €33.6 billion, before deducting short-term financing liabilities. As of 31 December 2021, the Company had a net cash position of € 7.6 billion with a total liquidity of € 28.7 billion, before deducting short-term financing liabilities. As of 31 December 2021, management considers the Company has suf ficient resources to continue operating for at least 12 months and that there are no material uncertainties about the Company’s ability to continue as a going concern. For further information on liquidity, see “– 2.1.6 Liquidity and Capital Resources”. Restructuring provisions. In 2019, a provision of €103 million related to restructuring measures at Premium AEROTEC was recorded following the announcement in December 2019 to the Works Council of the main features that would be carried out to increase future competitiveness. In June 2020, Airbus announced plans to adapt its global workforce, principally in France, Germany, Spain and the UK, and resize its commercial aircraft activity in response to the COVID-19 crisis. This adaptation was expected to result in a reduction of around 15,000 positions no later than summer 2021. Working time adaptation and mitigation measures supported by the governments have reduced the number of positions subject to the restructuring plan. Taking into consideration the actual departures since the initial announcement, the remaining number of positions subject to the restructuring plan amounted to approximately 6,100 as of 31 December 2020, including pre- retirement headcount under German Altersteilzeit (“ATZ”). In addition, Airbus Defence and Space completed the consultation process with the Company’s European works council on the Division’s planned restructuring. The plan presented to the employee representatives initially foresaw the reduction of around 1,900 positions including pre-retirement headcount under ATZ until the end of 2021. However this number was also subsequently reduced to approximately 1,400 positions reflecting departures which occurred after the initial announcement. In November 2020, a reconciliation of Interest Agreement involving approximately 100 positions was signed in Germany within Airbus Helicopters and hence, a provision has been recorded accordingly. As of 30 September 2020, a restructuring provision was recognised for an amount of €1.2 billion including mainly the cost of voluntary and compulsory measures taking into account management’s best estimate of the impact of the working time adaptation and government support measures. Total payments to employees affected by the plan were expected to amount to approximately €1.5 billion, including the settlement of other accrued employee benefits.

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Airbus / Registration Document 2021