Airbus // Universal Registration Document 2023

Risk Factors 2 Business and Operations-related Risks

In connection with the A320 Family programme, the Company faces the following additional key specific challenges: keeping A321XLR development on-track (including A321XLR certification with primary airworthiness authorities), and adapting and upgrading our industrial system and capability to meet market demands (including adapting to the evolving product mix within the family, where the Company currently anticipates a significant increase in A321 production). Market demand for A320 Family aircraft and production and supply chain capabilities will continue to evolve in the next few years, which the Company will continue to closely monitor, with high-risk areas within the supply chain (including engine maturity and availability in service, and other key elements cited above in the first section of this risk factor) being subject to particular scrutiny. A350 programme. In view of market demand, the Company is targeting a monthly production rate of 10 A350 Family aircraft in 2026. Reaching this production rate will depend in part on the success of our industrial adaptation and the performance of our suppliers. For additional information, see “Business and operations-related risks – Industrial system adaptation” and “Business and operations-related risks – Dependence on key suppliers and subcontractors”. The Company proactively and constantly monitors the manufacturing backlog (including the internal and external supply chain (including engines)), so as to ensure readiness for further rate adaptations in accordance with demand evolution, to minimise inventory levels, and to secure aircraft storage capacity. In connection with the A350 programme, the Company faces the following additional key specific challenges: matching production rates to market demand while supporting the supply chain and managing lead-times from corresponding suppliers, reducing recurring costs to improve competitiveness in view of the strong competition in the widebody market, and delivering on major programme developments (such as the A350 Freighter development and A350-1000 Sunrise project). The Company will continue to closely monitor these challenges, with high-risk areas in the supply chain (including engines and other key elements) and competitiveness topics being subject to particular focus. A330 programme. In view of market demand, the Company is targeting a monthly production rate of four A330 Family aircraft in 2024. Reaching this production rate will depend in part on the success of our industrial adaptation and the performance of our suppliers. For additional information see “Business and operations-related risks – Industrial system adaptation” and “Business and operations-related risks – Dependence on key suppliers and subcontractors”. The Company proactively and constantly monitors the manufacturing backlog (including the internal and external supply chain (including engines)), so as to ensure readiness for further rate adaptations in accordance with demand evolution, to minimise inventory levels, and to secure aircraft storage capacity. In connection with the A330 programme, the key specific challenges facing the Company are maintaining product competitiveness in the widebody market segment, and monitoring (and where necessary supporting) the supply chain. The ongoing industrial and product improvements of the programme progressed well during 2023, however the Company will continue to place particular focus on high-risk areas in the supply chain (including engines and other key elements) and competitiveness topics.

A220 programme. In view of market demand, the Company is targeting a monthly production rate of 14 A220 Family aircraft in 2026. Reaching this production rate will depend in part on the success of our industrial adaptation and the performance of our suppliers. For additional information, see “Business and operations-related risks – Industrial system adaptation” and “Business and operations-related risks – Dependence on key suppliers and subcontractors”. The Company proactively and constantly monitors the manufacturing backlog (including the internal and external supply chain (including engines)), so as to ensure readiness for further rate adaptations in accordance with demand evolution, to minimise inventory levels, and to secure aircraft storage capacity. In connection with the A220 programme, the key specific challenges the Company faces are to secure the planned cost reduction trajectory (focusing particularly on recurring costs), and to maintain a book-to-bill ratio above one, in order to fill current open slots. The Company will continue to place particular focus on high-risk areas in the supply chain, including engine maturity and availability in service, as well as the challenging and competitive environment in which it must attract, train and retain a skilled workforce. A380 programme. In connection with the A380 programme, the Company faces the following main challenges: secure ageing fleet in-service support for the next decades and long-term competitiveness. Medium helicopters range (H145, H160, H175). These programmes face industrial and production ramp-up challenges. NH90 programme. Risk of termination of Norway’s contract for 14 NH90 helicopters (13 of which have already been delivered) following receipt of notice of termination dated 9 June 2022. Parties are engaged in a mediation process with a target to reach an amicable settlement. For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 12: Revenue and Gross Margin”. Defence and Space programmes -generally. Defence projects and many major satellite, space and other projects are dependent on public spending and government financing, and due to their complexity, they are particularly subject to development risk. For additional information, see “Business and operations-related risks – Dependence on public spending and on certain markets”, “Business and operations-related risks – Availability of government and other sources of financing” and “Business and operations-related risks – Technologically advanced products and services”. A400M programme. Whilst the Company is still in final negotiation to sign the contract amendment that leads to a new baseline for the programme, 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. For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 12: Revenue and Gross Margin”. Eurodrone. Due to the complex nature of this programme, its design and development is particularly challenging, and many hurdles remain to its successful progress. Border security. In connection with a legacy border security project, the Company faces the following main challenges: meeting the schedule and cost objectives taking into account

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Universal Registration Document 2023