Airbus // Universal Registration Document 2021

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

2.1 Operating and Financial Review

Airbus Defence and Space The following table presents a breakdown of deliveries of Airbus Defence and Space by product type for the past three years.

2021

2020

2019

(In units)

2

A400M

8

9

14

A330 MRTT (Tanker)

5

4

7

Light & Medium aircraft

9

10

8

Telecom satellites

3

1

2

Total

25

24

31

the COVID-19 pandemic. In addition, an amount of €101 million of development costs has been capitalised, mainly linked to Airbus programmes.

Airbus Defence and Space’s revenues amounted to €10.2 billion in 2021 (2020: €10.4 billion). The decrease is mainly driven by Military Aircraft, partially offset by Space Systems. For 2020, Airbus Defence and Space’s revenues amounted to €10.4 billion in 2020 (2019: €10.9 billion). The decrease was due to lower volume and the impact of the COVID-19 pandemic on business phasing. It also reflected the lower order intake in Space Systems in the prior years. 2.1.4.2 Cost of Sales Cost of sales decreased by 3.9% from €44.3 billion for 2020 to €42.5 billion for 2021. It mainly reflects in 2021 continued cost containment and the release of COVID-related provisions while 2020 was impacted by charges recorded in response to the COVID-19 pandemic. For 2020, cost of sales decreased by 26.2% from €60.0 billion for 2019 to € 44.3 billion for 2020. This was driven by lower deliveries, also impacted by charges recorded as a result of the comprehensive review performed by the Company of its operational assets and liabilities in response to the COVID-19 pandemic, see “–2.1 Operating and Financial Review”. 2.1.4.3 Selling and Administrative Expenses Sel l ing and administrative expenses remained stable at €2.1 billion for both 2021 and 2020. For 2020, selling and administrative expenses decreased from €6.1 billion for 2019 to €2.1 billion for 2020. The decrease was mainly due to the €3.6 billion penalties recognised in 2019, as a consequence of the final agreements reached with the French PNF, the UK SFO and the US DoS. 2.1.4.4 Research and Development Expenses Research and development expenses decreased by 3.9%, from €2.9 billion for 2020 to €2.7 billion for 2021. In addition, an amount of € 152 million of development costs has been capitalised, mainly linked to Defence and Space programmes. See “– 2.1.2.2 Capitalised Development Costs”. For 2020, research and development expenses decreased by 14.9%, from € 3.4 billion for 2019 to €2.9 billion for 2020, mainly reflecting cash containment measures in response to

2.1.4.5 Other Income

and Other Expenses Other income and other expenses typically include gains and losses on disposals of investments, of fixed assets and income from rental properties. Other income and other expenses was € 393 million net as compared to € -1,326 million net for 2020. The increase includes the gain of €122 million for the divestment of one of its sites in France to a 50% joint venture. In 2020, it included the COVID- related restructuring provision, see “–2.1 Operating and Financial Review”. For 2020, other income and other expenses was € -1,326 million net as compared to € 14 million net for 2019. The decrease is driven by the restructuring provision recorded in 2020 in response to the COVID-19 pandemic, see “–2.1 Operating and Financial Review”. 2.1.4.6 Share of Profit from Investments Accounted for under the Equity Method and Other Income from Investments Share of profit from investments accounted for under the equity method and other income from investments principally include results from companies accounted for under the equity method and the dividends attributable to unconsolidated investments. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 9: Investments Accounted for under the Equity Method” and “– Note 15: Share of Profit from Investments Accounted for under the Equity Method and Other Income from Investments”. The Company recorded € 116 million in share of profit from investments accounted for under the equity method and other income from investments as compared to €152 million for 2020. For 2020, the Company recorded €152 million in share of profit from investments accounted for under the equity method and other income from investments as compared to €303 million for 2019.

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Airbus / Registration Document 2021