Airbus // Universal Registration Document 2023

Risk Factors 3 Legal, Regulatory and Governance Risks

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 could result in significant further financial impacts. Launchers. In light of the delayed launch of Ariane 5’s successor, Ariane 6, the Company faces a challenge related to Europe’s lack of independent access to space in the short-term.

3. Legal, Regulatory and Governance Risks

The Company faces various legal and regulatory risks, as described in this section. In addition, the Company operates in a complex geopolitical and economic environment in which it needs to respond to the interests of its various stakeholders while maintaining focus on its operational priorities. In certain contexts, the interests of individual stakeholders or groups of stakeholders may diverge from those of the Company. Reconciling such

situations may demand the time and focus of the Company’s management, potentially distracting management’s attention from operational priorities and jeopardising the performance of the Company, which could have a negative effect on the Company’s business, results of operations and financial condition.

Legal and Regulatory Proceedings

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”. The expiration in 2023 of the three-year deferral period under the agreements reached in 2020 with the UK Serious Fraud Office (“ SFO ”), France’s Parquet National Financier (“ PNF ”), and the US Departments of State (“ DoS ”) and Justice (“ DoJ ”), relating to their investigations into the Company – which resulted in a fine totalling € 3.6 billion plus costs to the French, UK, and US authorities – was followed by dismissal of the charges with prejudice by the respective authorities under each of their domestic laws. 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 UK SFO, France’s PNF, US Departments of State and Justice and Related Commercial Litigation” and “Securities Litigation”). The Company is regularly involved in civil and commercial disputes and litigation, and governmental or regulatory investigations, proceedings or inquiries, and expects to continue to spend time and incur expenses in connection therewith (regardless of their ultimate outcome), which may divert the efforts and attention of management from normal business operations. Although the

Company is unable to predict the outcome of these types of 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 outcome to any of these proceedings could also negatively impact the Company’s stock price and reputation. In addition, the Company is from time to time subject to government 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 topics, anti-corruption and anti-bribery laws and regulations, export control laws and regulations, data privacy laws, securities law, international trade law (including tariffs and import duties), 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. For further details, please also refer to “– 1.2.14 Business Integrity”.

20 Airbus Annual Report

Universal Registration Document 2023