Airbus // Universal Registration Document 2023

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 aircraft deliveries of Airbus Defence and Space by product type for the past three years.

2023

2022

2021

(In units)

Light & Medium Aircraft

10

13

9

A330 MRTT (Tanker)

4

5

5

A400M

8

10

8

Total

22

28

22

2.1.4.5 Other Income

Because most telecom satellites are individually unique, the Company has concluded that the number of units delivered annually does not offer a meaningful basis for comparison, so the Company will no longer provide this figure. Airbus Defence and Space’s revenues amounted to € 11.5 billion in 2023 (2022: € 11.3 billion). The increase is mainly driven by Military Air Systems and Connected Intelligence, offset by some updated Estimates at Completion of certain Space programmes. Airbus Defence and Space’s revenues amounted to € 11.3 billion in 2022 (2021: € 10.2 billion). The increase was mainly driven by higher volume in Military Aircraft and Eurodrone. 2.1.4.2 Cost of Sales Cost of sales increased by 14.9% from €48.2 billion for 2022 to € 55.4 billion for 2023. It mainly reflects the higher deliveries, higher costs due to hiring in preparation for the production ramp-up and charges resulting from the update of Estimates at Completion of certain Space programmes. For 2022, cost of sales increased by 13.3% from €42.5 billion for 2021 to € 48.2 billion for 2022. It mainly reflected the higher deliveries and additional losses recognised on the A400M programme of €0.5 billion. 2.1.4.3 Selling and Administrative Expenses For 2023, selling and administrative expenses increased from € 2.2 billion for 2022 to € 2.5 billion for 2023. For 2022, selling and administrative expenses increased from € 2.1 billion for 2021 to € 2.2 billion for 2022. Research and development expenses increased by 6.5%, from € 3.1 billion for 2022 to € 3.3 billion for 2023 mainly due to ramp-up in activities to prepare the technologies of the future. Additionally, € 378 million of development cost has been capitalised mainly linked to Defence and Space and Airbus programmes. See “– 2.1.2.2 Capitalised Development Costs”. For 2022, research and development expenses increased by 14.8%, from € 2.7 billion for 2021 to € 3.1 billion for 2022. In addition, an amount of € 319 million of development costs has been capitalised, mainly linked to Airbus programmes. See “– 2.1.2.2 Capitalised Development Costs”. 2.1.4.4 Research and Development Expenses

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 € 34 million net compared to € -119 million net for 2022. In 2022, it included the impact of € -437 million partly offset by an insurance income of € 200 million both linked to the launch failure of the two satellites Pléiades Neo 5 and 6 in December 2022. For 2022, other income and other expenses was €-119 million net as compared to €393 million net for 2021. The decrease included the impact of € -437 million partly offset by an insurance income of € 200 million both linked to the launch failure of the two satellites Pléiades Neo 5 and 6 in December 2022. In 2021, it included a restructuring provision release of € 207 million and the gain of € 122 million for the divestment of one of its sites to a joint venture. 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 € 303 million in share of profit from investments accounted for under the equity method and other income from investments as compared to € 192 million for 2022 and € 116 million for 2021, mainly linked to the share of result from the Company’s main joint ventures.

180 Airbus Annual Report

Universal Registration Document 2023