Airbus // Universal Registration Document 2023

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

2.1 Operating and Financial Review

2.1.1 Overview The Company constantly innovates to provide efficient and technologically-advanced solutions in aerospace, defence, and connected services. In commercial aircraft, Airbus offers modern and fuel-efficient airliners and associated services. The Company is also a European leader in space systems, defence and security. In helicopters, the Company provides civil and military rotorcraft solutions and services worldwide.

The Company’s consolidated revenues amounted to € 65.4 billion in 2023, of which 82% in the civil sector (compared to 80% in 2022) and 18% in the defence sector (compared to 20% in 2022). As of 31 December 2023, the Company’s active headcount was 147,893 employees, an increase compared to 2022 (134,267 employees).

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2.1.1.1 Exchange Rate Information The financial information presented in this document is expressed in euro, US dollar or pound sterling. The following table sets out, for the periods indicated, certain information concerning the exchange rate between the euro, the US dollar and the pound sterling, calculated using the official European Central Bank fixing rate:

Average

Year-end

€/US$

€/£

€/US$

€/£

31 December 2021

1.1827

0.8596

1.1326

0.8403

31 December 2022

1.0530

0.8528

1.0667

0.8869

31 December 2023

1.0813

0.8698

1.1050

0.8691

2.1.1.2 Reportable Business Segments In 2023, the Company operated in three reportable business segments which reflect the internal organisational and management structure according to the nature of the products and services provided. – – Airbus – Development, manufacturing, marketing and sale of commercial jet passenger aircraft of more than 100 seats, freighter aircraft and regional turboprop aircraft and aircraft components; aircraft conversion and related services. It also includes the holding function of the Company and its bank activities. – – Airbus Helicopters – Development, manufacturing, marketing and sale of civil and military helicopters; provision of helicopter related services. – – Airbus Defence and Space – Military Air Systems design, development, delivery and support of manned and unmanned military air systems and their associated services. Space Systems design, development, delivery, and support of a broad range of civil and defence space systems for telecommunications, earth observations, navigation, science and orbital systems. Connected Intelligence provision of services around data processing from platforms, secure communication and cyber security. In addition, the main joint ventures design, develop, deliver, and support missile systems and space launcher systems. Consolidation effects are reported in the column “Eliminations”.

capacities in Tianjin (China) and Mobile (US) commenced and the new A320 Family Final Assembly Line in Toulouse delivered its first aircraft in December. The first customer A321XLR entered into the Final Assembly Line in December, with entry-into-service for the aircraft type expected to take place in Q3 2024. A350 programme. In 2023, 64 A350 aircraft were delivered and the Company continues towards a monthly rate of 10 aircraft in 2026. A330 programme. In 2023, 32 A330 aircraft were delivered and the Company continues towards a monthly rate of four aircraft in 2024. A220 programme. In 2023, 68 A220 aircraft were delivered. The A220 ramp-up continues towards a monthly production rate of 14 aircraft in 2026, with a focus on the programme’s industrial maturity and financial performance. A400M programme. Developments on the A400M programme resulted in the recognition of revenues of € 1.8 billion in 2023. As of 31 December 2023, the Company has delivered a total of 123 A400M aircraft including eight aircraft in 2023. The Company has continued with development activities towards achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. In 2023, an additional update of the contract estimate at completion has been performed and a net charge of €41 million recorded. Risks remain on the qualification of technical capabilities and associated costs, on aircraft operational reliability, on cost reductions and on securing overall volume as per the revised baseline. Space Systems. In 2023, the updated Estimates at Completion of certain space programmes led to a charge of € -0.6 billion. This includes an updated assessment of assumptions and estimates related to the remaining revenue and costs to completion and the progress of the contracts together with the underlying programmes status.

2.1.1.3 Significant Programme Developments in 2023

and Other Financial Topics A320 programme. In 2023, 571 A320 Family aircraft were delivered, while the production is progressing well towards the previously announced rate of 75 aircraft per month in 2026. In 2023, construction of the second A320 Final Assembly

171 Airbus Annual Report

Universal Registration Document 2023