Airbus // Universal Registration Document 2023

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

2.1 Operating and Financial Review

Free Cash Flow definition until 31 December 2023

This was partially offset by an inventory build-up (€ -1.9 billion) and higher advance payments made to suppliers to support Airbus’ ramp-up and de-risk the supply chain partially offset by less finished goods, and other assets and liabilities (€ -0.9 billion). In 2022, the positive working capital variation was driven mostly by contract assets and contract liabilities (€ +3.3 billion) mainly due to a positive phasing impact reflecting higher advance payments, trade liabilities (€ +3.3 billion) which reflected the ramp-up and a positive impact from net payments made to suppliers in anticipation. This was partially offset by an inventory build-up to support the ramp-up (€ -3.2 billion), other assets and liabilities (€ -1.9 billion) and trade receivables (€ -0.1 billion). European governments’ refundable advances. As of 31 December 2023, total European governments’ refundable advances liabilities, recorded on the statement of Financial Position in the line items “non-current other financial liabilities” and “current other financial liabilities” due to their specific nature, amounted to € 3.9 billion, including accrued interest. European governments’ refundable advances (net of reimbursements) remained stable in 2023 as compared to 2022. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 25: Other Financial Assets and Other Financial Liabilities”. Cash Used for Investing Activities Management categorises cash used for investing activities into three components: (i) industrial capital expenditure, (ii) M&A transactions and (iii) others. Cash used for investing activities amounted to € -3.0 billion for 2023, to € -2.6 billion for 2022, and to € -1.6 billion for 2021. Capital expenditure. Capital expenditure includes product related development costs that are capitalised in accordance with IAS 38. See “– 2.1.2.2 Capitalised development costs”. Capital expenditure (investments in property, plant and equipment and intangible assets) amounted to € -3.1 billion for 2023, to € -2.5 billion for 2022 and to € -1.9 billion for 2021. M&A transactions. In 2023, the € -0.1 billion figure mostly relates to the acquisition of Aubert & Duval which is owned equally by Airbus, Safran and Tikehau Capital. In 2022, the € -0.2 billion figure mostly related to the acquisition of 100% of the shares of ZF Luftfahrttechnik GmbH. ZF Luftfahrttechnik was subsequently renamed Airbus Helicopters Technik GmbH. In 2021, there were no significant M&A transactions. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 8: Acquisitions and Disposals”. Other disposals. In 2021, the Company divested to a 50% joint venture one of its sites in France. The Company received a consideration of € 310 million. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 8: Acquisitions and Disposals”.

The Company defines Free Cash Flow as the sum of (i) cash provided by operating activities and (ii) cash used for investing activities, minus (iii) change of securities, (iv) contribution to plan assets of pension schemes, (v) realised foreign exchange results on treasury swaps and (vi) Airbus Bank activities. It is an alternative performance measure and key indicator which allows the Company to measure the amount of Cash Flow generated from operations after cash used in investing activities. As a result of the factors discussed above, Free Cash Flow amounted to €3.9 billion for 2023 as compared to € 4.3 billion for 2022 and € 3.5 billion for 2021. Free Cash Flow before mergers and acquisitions refers to Free Cash Flow adjusted for net proceeds from disposals and acquisitions. It is an alternative performance measure and key indicator that reflects Free Cash Flow excluding those Cash Flows resulting from acquisitions and disposals of businesses. Free Cash Flow before M&A and Customer Financing definition until 31 December 2023 Free Cash Flow before M&A and customer financing refers to Free Cash Flow before mergers and acquisitions adjusted for Cash Flow related to aircraft financing activities. It is an alternative performance measure and indicator that may be used occasionally by the Company in its financial guidance, especially when there is higher uncertainty around customer financing activities. Free Cash Flow definition from 1 January 2024 The Company defines Free Cash Flow as the sum of (i) cash provided by operating activities and (ii) investments in intangible and fixed assets (net) & dividends paid by companies valued at equity, minus (iii) contribution to plan assets of pension schemes, (iv) realised foreign exchange results on treasury swaps and (v) change in cash from changes in consolidation. It is an alternative performance measure and key indicator which allows the Company to measure the amount of cash flow generated by its operations. Free Cash Flow before Customer Financing definition from 1 January 2024 Free Cash Flow before Customer Financing refers to Free Cash Flow adjusted for cash flow related to aircraft financing activities. It is an alternative performance measure and indicator used by the Company in its financial guidance. Free Cash Flow before M&A definition until 31 December 2023

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Cash Distribution to Shareholders / Non‑Controlling Interests

For the fiscal year 2023, the Board of Directors will propose the payment of a dividend of € 1.80 per share and a special dividend of € 1.00 per share to the 2024 Annual General Meeting taking place on 10 April 2024. The proposed payment date is 18 April 2024.

185 Airbus Annual Report

Universal Registration Document 2023