Airbus // Universal Registration Document 2021

Risk Factors / 3 Legal Risks

H160 programme. Themain challenges for the H160 programme are to secure the entry-into-service, the FAA certification and the industrial ramp-up phase. Border security. In connection with border security projects, the Company faces the following main challenges: meeting the schedule and cost objectives taking into account the complexity of the local infrastructures to be delivered and the integration of commercial-off-the-shelf products (radars, cameras and other sensors) interfaced into complex system networks; assuring efficient project and staffing; managing the rollout including subcontractors and customers. Negotiations on change requests in this respect along with schedule re-alignments remain ongoing. The Company continues to engage with its customer to agree a way forward on this contract. The outcome of these negotiations is presently unclear but could result in significant further financial impacts. Defence programmes. The Company is engaged in major European defence collaboration programmes, such as Eurodrone and Future Combat Air System (FCAS), serving several European governments and partnering with several European companies of the defence sector. Such complex industrial programmes entail alignments and negotiations between many stakeholders on technical, industrial as well as on political matters. Due to the very nature of such discussions and the number of stakeholders, there is an inherent risk of lengthening the contract preparation phase and hence delaying the signature date.

book to bill above one to fill current open slots. As a consequence of the COVID-19 pandemic, the commercial aircraft production rates were adapted to rate five per month (in Mirabel and in Mobile) in 2020-2021 and will be increased to rate six early 2022. Attention will remain high on engine maturity in service. A380 programme. In connection with the A380 programme, the Company faces the following main challenges: secure in service support for the next decades and long-term competitiveness. H225 programme. Airbus Helicopters continues to drive improvements across its product range as part of its commitment to raise safety standards. The H225 programme is still facing a challenge with the supply chain in a COVID-19 context. H175 programme. The situation remains challenging on the commercial side: a tough market environment on its main offshore segment. Tiger programme. The Tiger MKIII contract signature and the lifetime extension out of Tiger MKII contract are the key to the future of the programme. The Company faces the challenge to increase the Tiger availability, whose action plans are producing first results. NH90 programme. A transformation plan has been initiated to adapt to the challenges of a large and diverse in-service fleet with two axes: first to face a rising volume of maintenance and repairs, and second to improve fleet availability.

3. Legal Risks

Legal and Regulatory Proceedings

operations. Although the Company is unable to predict the outcome of these proceedings, it is possible that they will result in the imposition of damages, fines or other remedies, which could have a material effect on the Company’s business, results of operations and financial condition. An unfavourable ruling could also negatively impact the Company’s stock price and reputation. Inaddition, theCompany is fromtime to time subject togovernment inquiries and investigations of its business and competitive environment due, among other things, to the heavily regulated nature of its industry. Such inquiries and investigations may cover matters relating to, among other matters, anti-bribery laws and regulations, export control laws and regulations, securities law, trade law and competition law. An adverse decision in any such matter could have a material effect on the Company’s business, results of operations and financial condition. In addition to the risk of an unfavourable ruling against the Company, any such inquiry or investigation could negatively affect the Company’s reputation and its ability to attract and retain customers and investors, which could have a negative effect on its business, results of operations and financial condition. See “– Non-Financial Information 1.2.5 – Exemplify Business Integrity”.

The Company is currently engaged in a number of active legal and regulatory proceedings. For further information, please refer to “Notes to the IFRS Consolidated Financial Statements – Note 38: Litigation and Claims”. For the investigation by the UK Serious Fraud Office (“ SFO ”), France’s Parquet National Financier (“ PNF ”), and the US Departments of State (“ DoS ”) and Justice (“ DoJ ”), which is described in “– Anti-Corruption Laws and Regulations”, the Company has reached an agreement with the authorities, which was approved by the French and UK courts and US court and regulator on 31 January 2020. The agreement resulted in a fine totalling €3.6 billion plus costs to the French, UK, and US authorities. For further information about the investigation and related securities litigation, please refer to “Notes to the IFRS Consolidated Financial Statements – Note 38: Litigation and Claims” (Investigation by the SFO, PNF, DoJ, DoS, Related Commercial Litigation and Securities Litigation), respectively. The Company expects to continue to spend time and incur expenses associated with its defence of legal and regulatory proceedings, regardless of the outcome, and this may divert the efforts and attention of management from normal business

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Airbus / Registration Document 2021