Airbus // Universal Registration Document 2021

Risk Factors / 2 Business-Related Risks

Dependence on Key Suppliers and Subcontractors

In the context described above, changes to the Company’s production or development schedules may impact suppliers so that they initiate claims under their respective contracts for financial compensation or do not fulfil their on time and on quality delivery commitments. This may have a negative effect on the financial condition and results of operations of the Company. As the Company’s global sourcing footprint extends, some suppliers (or their sub-tier suppliers) may have production facilities located in countries that are exposed to socio-political unrest or natural disasters which could interrupt deliveries. This may have a negative effect on the financial condition and results of operations of the Company. The Company cannot fully protect itself from non-performance of a supplier, which could disrupt production and in turn may have a negative effect on the financial condition and results of operations of the Company. The Company has implemented a robust governance to prevent, anticipate andmonitor supply chain disruption risks and/or ensure efficient management of issues.

The Company is dependent on numerous key suppliers and subcontractors to provide it with the raw materials, parts, assemblies, systems, equipment and services that it needs to manufacture its products. The Company relies upon the good performance and financial health of its suppliers and subcontractors to meet the obligations defined under their contracts. A supplier’s performance and health may be negatively impacted by a variety of topics including: the current COVID-19 pandemic and its resulting economic impact; loss of skilled resources as a result of workforce reduction and difficulties to re-staff due to market employment tensions; need for working capital increase while state/bank loans obtained to weather through the crisis have reached maturity; difficulty gaining access to the needed material and components, including semiconductors, in the needed quantity and time frame and at competitive conditions as well as transport and logistic means availability; cyber security threats; geopolitical unrest; export controls evolving regulations and embargoes; and environmental issues. In early 2020, in response to the COVID-19 crisis, the Company adapted the production rates significantly (-40%). At the beginning of 2021, air traffic started to recover, especially in certain domestic and regional markets, and the Company announced in May 2021 an industrial ramp-up trajectory that has been confirmed at the end of Q3 2021. The Company will continue to monitor and adapt according to traffic evolutions and market situation and expectations; hence it is actively working and monitoring the ramp-up across the complete value chain for Single Aisle commercial aircraft. The Company is engaged in a process to adapt its industrial set-up to the new rates. This process is addressing the resource adaptation (headcount, The Company offers its customers products and services that are technologically advanced, so the design, manufacturing, components and materials utilised can be complex and require substantial integration and coordination along the supply chain. In addition, most of the Company’s products must function under demanding operating conditions. Throughout the lifecycle of its products, the Company performs checks and inspections, which may result in modifications, retrofits or other corrective actions, each of which may have an adverse effect on production, operations, in-service performance or financial condition. There can be no assurance that the Company’s products or services will be successfully developed, manufactured or operated or that they will perform as intended. Certain of the Company’s contracts require it (i) to forfeit part of its expected profit, (ii) to receive reduced payments, (iii) to provide a replacement launch or other products or services, (iv) to provide cancellation rights, or (v) to reduce the price of subsequent sales to the same customer if its products fail to be delivered Industrial System Adaptation

skills and competencies) and the fixed cost reduction (industrial facilities, IT systems) while protecting inventory level and lead- time between aircraft configuration chosen by our customer and aircraft delivery. This encompasses the full industrial process from supply chain (including raw material, subcontracted work packages, equipment, etc.) to aircraft delivery. In this process, the Company focuses attention on quality industrial adherence Production Organisation Approval (POA). For more details on specific programme risks, see “– Programme- Specific Risks” below.

Technologically Advanced Products and Services

on time or to perform adequately. No assurances can be given that performance penalties or contract cancellations will not be imposed should the Company fail to meet delivery schedules or other measures of contract performance, in particular with respect to development programmes such as the A220, A350‑900 and -1000 XWB, A350 Freighter, A400M, H160 or Ariane 6 and to modernisation programmes such as the A320neo and the A330neo. See “– Programme-Specific Risks” below. In addition to the risk of contract cancellations, the Company may also incur significant costs or loss of revenues in connection with remedial action required to correct any performance issues detected in its products or services. See “– Management’s Discussion and Analysis of Financial Condition and Results of Operations – 2.1.1.3 Significant programme developments in 2019, 2020 and 2021 and other financial topics”. Moreover, to the extent that a performance issue is considered to have a possible impact on safety, regulators could suspend the authorisation for the affected product or service.

15

Airbus / Registration Document 2021