Airbus // Universal Registration Document 2021

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review

2.1.4.7 Interest Result Interest result reflects the net of interest income and expense arising from financial assets and liabilities, including the interest expense on refundable advances provided by European governments to finance R&D activities. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 16: Total Financial Result”. The Company recorded a net interest expense of € -246 million, as compared to € -271 million for 2020. For 2020, the Company recorded a net interest expense of € -271 million, as compared to € -111 million for 2019. This was principally due to lower level of securities and higher financing liabilities due to the issuance of new bonds. 2.1.4.8 Other Financial Result Other financial result includes the impact from the revaluation of financial instruments, the effect of foreign exchange valuation of monetary items and the unwinding of discounted provisions. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 16: Total Financial Result” and “– Note 25: Other Financial Assets and Other Financial Liabilities”. Other financial result changed from € -349 million for 2020 to € -69 million for 2021. This is driven by the positive impact from the revaluation of certain equity investments, compensated by a negative impact from the revaluation of financial instruments. In 2020, it included the European governments’ refundable advances impact related to the A350 XWB programme. For 2020, other financial result decreased from € -164 million for 2019 to € -349 million for 2020. This reflects the € -155 million European governments’ refundable advances impact mainly related to the A350 XWB programme and the net € -147 million related to Dassault Aviation financial instruments. The change in other financial result also includes a positive impact from the revaluation of financial instruments of €+43 million and foreign exchange valuation of monetary items of €+41 million.

2.1.4.9 Income Taxes Income tax expense was € -853 million as compared to € -39 million for 2020, and corresponds to an effective income tax rate of 17%. The higher tax expense was mainly driven by the income before tax in 2021 of €5,027 million as compared to the loss before tax in 2020 of € -1,130 million, partly compensated by a net release of deferred tax asset impairments mainly due to an updated business outlook in 2021 in comparison to deferred tax impairments in 2020. Management will continue to assess its tax contingencies going forward, whose outcome could result in further financial impacts. For 2020, income tax expense was € -39 million as compared to € -2,389 million for 2019. The decrease was mainly driven by the loss before tax in 2020 (€ -1,130 million) as compared to the income before tax in 2019 (€1,064 million), and the non- deductibility of the penalties accounted for in the 2019 accounts next to more favourable impacts on tax risk updates. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 17: Income Taxes”. 2.1.4.10 Non-Controlling Interests For 2021, loss for the period attributable to non-controlling interests was € -39 million, as compared to loss of € -36 million for 2020. 2.1.4.11 Profit for the Period Attributable to Equity Owners of the Parent (Net Income) As a result of the factors discussed above, the Company recorded a net income of €4,213 million for 2021, as compared to the net loss of € -1,133 million for 2020.

2.1.4.12 Earnings per Share Basic earnings were €5.36 per share in 2021, as compared to € -1.45 per share in 2020. The denominator used to calculate earnings per share was 785,326,074 shares (2020: 783,178,191), reflecting the weighted average number of shares outstanding during the year. In 2019, the Company reported basic earnings of € -1.75 per share, based on a denominator of 777,039,858 shares.

2021

2020

2019

Profit (Loss) for the period attributable to equity owners of the parent (Net income)

€4,213 million

€ (1,133) million

€ (1,362) million

Weighted average number of ordinary shares

785,326,074

783,178,191

777,039,858

Basic earnings per share

€5.36

€ (1.45)

€ (1.75)

142

Airbus / Registration Document 2021