Universal Registration Document 2021


2. 
Universal Registration Document. 
Airbus SE is a European public company (Societas Europaea), with its seat in Amsterdam, the Netherlands, which is listed in France, Germany and Spain.
As a result of the relabelling to a single Airbus brand, Airbus SE together with its subsidiaries is referred to as “the Company” and no longer the Group. The segment formerly known as “Airbus Commercial Aircraft” is referred to as “Airbus”. See “– Management’s Discussion and Analysis of Financial Condition and Results of Operations – 2.1.1.2 Reportable Business Segments”.
In addition to historical information, this Universal Registration Document (“Registration Document”) includes forward-looking statements. The forward-looking statements are generally identified by the use of forward-looking words, such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan”, “project”, “predict”, “will”, “should”, “may” or other variations of such terms, or by discussion of strategy. These statements relate to the Company’s future prospects, developments and business strategies and are based on analyses or forecasts of future results and estimates of amounts not yet determinable. These forward-looking statements represent the view of the Company only as of the dates they are made, and the Company disclaims any obligation to update forward-looking statements, except as may be otherwise required by law. The forward-looking statements in this Registration Document involve known and unknown risks, uncertainties and other factors that could cause the Company’s actual future results, performance and achievements to differ materially from those forecasted or suggested herein. These include changes in general economic and business conditions, as well as the factors described under “Risk Factors” below.
This Registration Document was prepared in accordance with Annex 1 and 2 of Commission Delegated Regulation (EU) 2019/980 and has been filed in English with the Autoriteit Financiële Markten (the “AFM”) on 6 April 2022 in its capacity as competent authority under Regulation (EU) 2017/1129 (the “Prospectus Regulation”) without prior approval pursuant to Article 9 of the Prospectus Regulation.
This Registration Document may be used for the purposes of an offer to the public of securities or admission of securities to trading on a regulated market if approved by the AFM together with any amendments, if applicable, and a securities note and summary approved in accordance with the Prospectus Regulation.


3. 
Risk Factors 1. 
Information on the Company’s Activities 2. 
Management’s Discussion and Analysis of Financial Condition and Results of Operations 3. 
General Description of the Company and its Share Capital 4. 
Corporate Governance 5. 
General Information


Risk Factors 7 1. Financial Market Risks 8 2. Business-Related Risks 12 3. Legal Risks 19 4. Environment, Human Rights, Health & Safety Risks 22 1. 
Information on the Company’s Activities 27 1.1 Presentation of the Company 28 1.1.1 Overview 28 1.1.2 Airbus (Commercial Aircraft) 32 1.1.3 Helicopters 41 1.1.4 Defence and Space 45 1.1.5 Investments 52 1.1.6 Insurance 52 1.1.7 Legal and Arbitration Proceedings 52 1.2 Non-Financial Information 55 1.2.1 The Company’s Approach to Sustainability 55 1.2.2 Lead the Journey Towards Clean Aerospace 60 1.2.3 Build Our Business on the Foundation of Safety and Quality 72 1.2.4 Respect Human Rights and Foster Inclusion 80 1.2.5 Exemplify Business Integrity 92 1.2.6 Responsible Supply Chain 95 1.2.7 Community Impact 102 1.2.8 ESG Data Board 104 1.2.9 Deployment of Vigilance Plan (Devoir de Vigilance) 111 1.2.10 EU Taxonomy Disclosure 112 1.2.11 TCFD Correspondence Table 113 1.2.12 GRI Index 114 1.2.13 SASB Correspondence Table 118 1.3 Other Corporate Activities 119 1.4 Recent Developments 127. 
Universal Registration Document 2021. 
Contents 4 Airbus / Registration Document 2021


2. 
Management’s Discussion and Analysis of Financial Condition and Results of Operations 129 2.1 Operating and Financial Review 130 2.1.1 Overview 131 2.1.2 Significant Accounting Considerations, Policies and Estimates 134 2.1.3 Performance Measures 135 2.1.4 Results of Operations 139 2.1.5 Changes in Total Equity (Including Non-Controlling Interests) 143 2.1.6 Liquidity and Capital Resources 144 2.2 Financial Statements 148 2.3 Statutory Auditor Fees 148 2.4 Information Regarding the Statutory Auditors 148 3. 
General Description of the Company and its Share Capital 151 3.1 General Description of the Company 152 3.1.1 Commercial and Corporate Names, Seat and Registered Office 152 3.1.2 Legal Form 152 3.1.3 Governing Laws and Disclosures 152 3.1.4 Date of Incorporation and Duration of the Company 153 3.1.5 Objects of the Company 154 3.1.6 Commercial and Companies Registry 154 3.1.7 Inspection of Corporate Documents 154 3.1.8 Financial Year 154 3.1.9 Allocation and Distribution of Income 154 3.1.10 General Meetings 155 3.1.11 Disclosure of Holdings 156 3.1.12 Mandatory Disposal 157 3.1.13 Mandatory Offers 158 3.2 General Description of the Share Capital 159 3.2.1 Issued Share Capital 159 3.2.2 Authorised Share Capital 159 3.2.3 Modification of Share Capital or Rights Attached to the Shares 159 3.2.4 Securities Granting Access to the Company’s Share Capital 160 3.2.5 Changes in the Issued Share Capital 160 3.3 Shareholdings and Voting Rights 161 3.3.1 Shareholding Structure at the End of 2021 161 3.3.2 Relationships with Principal Shareholders 162 3.3.3 Form of Shares 165 3.3.4 Changes in the Shareholding of the Company 165 3.3.5 Persons Exercising Control over the Company 165 3.3.6 Simplified Group Structure Chart 165 3.3.7 Purchase by the Company of its Own Shares 167 3.4 Dividends 169 3.4.1 Dividends and Cash Distributions Paid 169 3.4.2 Dividend Policy of the Company 169 3.4.3 Unclaimed Dividends 169 3.4.4 Taxation 169 4. 
Corporate Governance 173 4.1 Management and Control 174 4.1.1 Corporate Governance Arrangements 174 4.1.2 Dutch Corporate Governance Code, “Comply or Explain” 197 4.1.3 Enterprise Risk Management System 198 4.1.4 Internal Audit 200 4.2 Interests of Directors and Principal Executive Officers 201 4.2.1 Remuneration Policy 201 4.2.2 Long-Term Incentives Granted to the Chief Executive Officer 214 4.2.3 Related Party Transactions 215 4.3 Employee Success Sharing and Incentive Plans 215 4.3.1 Employee Success Sharing and Incentive Agreements 215 4.3.2 Employee Share Ownership Plans 215 4.3.3 Long-Term Incentive Plans 216 5. 
General Information 223 5.1 Entity Responsible for the Universal Registration Document 224 5.2 Statement of the Entity Responsible for the Universal Registration Document 224 5.3 Information Policy 224 5.4 Undertakings of the Company regarding Information 225 5.5 Significant Changes 225 5.6 Statement on Approval 225 5 Airbus / Registration Document 2021


6 Airbus / Registration Document 2021


Risk Factors 1. Financial Market Risks 8 2. Business-Related Risks 12 3. Legal Risks 19 4. Environment, Human Rights, Health & Safety Risks 22 7 Airbus / Registration Document 2021


Risk Factors / 1 Financial Market Risks. 
The Company is subject to the risks and uncertainties described below that may materially affect its business, results of operations and financial condition. These are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company, or that it currently considers immaterial may also impair its business and operations.
Although a certain degree of risk is inherent in the Company’s business (as described in the risk factors mentioned in this section), the Company endeavours to minimise risk to the extent reasonably possible. To achieve its strategy, the Company is prepared to take modest or low event risks to provide sufficient predictability on profitability and cash flow given the necessity to stay competitive, invest in R&D and manage the diversified business portfolio in a world of uncertain market and economic conditions. Due to the importance of programmes and operations for the Company, a particular focus is put on the operational dimension of risk identification and management. Within the area of legal and compliance risks, the Company seeks to ensure that its business practices conform to applicable laws, regulations and ethical business principles, while developing a culture of integrity. Regarding financial risks, our risk approach can be qualified as prudent and the Company aims to minimise the downside risk through an appropriate liquidity buffer, moderate financial leverage and the use of hedging derivatives and other insurance products.
1. Financial Market Risks. 
Global Economic Conditions. 
The Company’s business, results of operations and financial condition are materially affected by global economic conditions.
Market disruptions and significant economic downturns may develop quickly due to, among other things, crises affecting credit or liquidity markets, regional or global recessions, sharp fluctuations in commodity prices (including oil), currency exchange rates or interest rates, inflation or deflation, sovereign debt and bank debt rating downgrades, restructurings or defaults, or adverse geopolitical events (including Russia’s invasion of Ukraine and rising military tensions around the world and in particular within Europe’s borders, the impact of Brexit and global policy including in the United States (“US”), European Union, Russia and China) or global pandemic diseases such as COVID-19. The previous US administration introduced greater uncertainty with respect to US tax and trade policies, tariffs and government regulations affecting trade between the US and other countries. Such measures affected and may continue to affect countries where our customers and suppliers are located or where the Company has an operational presence or to which its financing activities are linked. See “– Business-Related Risks – COVID-19 Risks”, “– Business-Related Risks – Ukraine Crisis” and “– Business-Related Risks – Availability of Government and other Sources of Financing”.
The Company’s global presence includes France, Germany, Spain and the UK, fully-owned subsidiaries in the US, China, Japan, India and in the Middle East, and spare parts centres in Hamburg, Frankfurt, Washington, Beijing, Dubai and Singapore. At the end of 2021, the Company had engineering and training centres in Toulouse, Miami, Mexico, Wichita, Hamburg, Bangalore, Beijing and Singapore, as well as an engineering centre in Russia. There are also hubs and field service stations around the world. The Company also relies on industrial co-operation and partnerships with major companies and a wide network of suppliers. This global presence entails the risk of being affected by weak market and economic conditions in particular in Europe, the US and Asia where it manufactures and to which it sells the majority of its products.
As of 31 December 2021, the Company’s workforce amounted to 126,495 employees of which over 15,000 were employed outside our core countries. In terms of nationalities, 35.4% of the Company’s employees are from France, 31.5% from Germany, 7.7% from the UK and 10.3% from Spain. The remaining 15.1% are employees from a total of 134 other countries. In total, 89.1% of the Company’s active workforce is located in Europe on more than 100 sites.
It is a priority to ensure that the Company can attract, develop and retain a world-class competent, motivated and flexible workforce, which fits current and future business requirements in each of the countries in which we have a presence. A change in economic conditions in any of the geographies in which we have significant numbers of employees or key employees may therefore impact our ability to compete effectively for employees in such countries.
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Risk Factors / 1 Financial Market Risks. 
At the end of 2020, approximately 21,000 suppliers from more than 80 countries supply parts, components, systems and services to the Company. In 2020, the overall external sourcing volume of the Company was valued at around € 41 billion. The Company requires its suppliers’ and subcontractors’ services in order to deliver our products and generate revenue and profit. Therefore financial instability in any part of the world that would affect our suppliers or subcontractors, including financial conditions resulting in their inability to obtain credit or even in their insolvency, could impact the Company’s ability to meet its customer obligations in a satisfactory and timely manner. In addition, financial instability affecting suppliers or subcontractors could impact such parties’ ability to meet their obligations under risk sharing partnership agreements entered into with the Company. The COVID-19 pandemic and the resulting health and economic crisis has increased the Company’s exposure to supply chain risk.
The behaviour of our customers and by extension, the demand for and supply of, the Company’s products and services has been and may continue to be materially affected by global economic conditions. Historically, the Company has experienced that order intake for commercial aircraft has shown cyclical trends, due in part to changes in passenger demand for air travel and the air cargo share of freight activity, which are in turn driven by a range of economic variables including gross domestic product (“GDP”) growth and private consumption levels.
A further downturn in economic factors driven by geopolitical events or by new variants and successive waves of the COVID-19 pandemic and the resulting health and/or economic crisis and the related drop in air travel in a large part of the world driving our commercial airline business, could lead to protracted weak demand for our commercial aircraft. The significant growth of our commercial aircraft business relative to the Company’s defence, space and government activities has diluted the latter’s ability to serve as an effective tool to counter commercial cycles.
Demand for military and parapublic products may be further affected by governmental budget constraints caused by economic pressure and COVID-19 measures.
Therefore protracted weak global economic conditions could directly result in: – financial distress of airlines and lessors, and potential bankruptcies around the world; – requests by customers to postpone or cancel existing orders for aircraft (including helicopters) or decisions by customers to review their order intake strategy due to, among other things, lack of adequate credit supply from the market to finance aircraft purchases or increases in operating costs or weak levels of passenger demand for air travel and cargo activity more generally, which could negatively impact the Company’s results of operations; – variations in public spending for defence, homeland security and space activities, which may lead to termination or reduction of future funding or cancellations or delays impacting existing contracts which could negatively impact the Company’s results of operations; and – an increase in the amount of sales financing that the Company is requested to provide to its customers to support aircraft deliveries typically secured over the underlying aircraft and bearing exposure to the customer credit risk. See “– Risk Factors – Financial Market Risks – Sales Financing Arrangements”.
In addition, in the commercial aircraft industry it is the industry standard to include revision clauses in sales and supplier contracts due to the long-terms of such contracts. Such revision clauses can be based on one or multiple indices and therefore, can evolve due to changes in economic measures on which such indices are based, thereby potentially negatively impacting the Company’s results.
The Company generally finances its manufacturing activities and product development programmes, and in particular the development of new commercial aircraft, through a combination of Cash Flows generated by operating activities, customer advances, European governments’ refundable advances and risk-sharing partnerships with subcontractors. In addition, the Company’s military activities benefit from government-financed research and development contracts. If necessary, the Company may raise funds in the capital markets. Weak economic circumstances leading to liquidity constraints or reduced availability of finance for the Company’s customers, suppliers, European and other governments, and other risk sharing partners may affect the Company’s ability to finance its product development programmes and raise funds in the capital markets.
The Company’s financial results could also be negatively affected depending on gains or losses realised on the sale or exchange of financial instruments; impairment charges resulting from revaluations of debt and equity securities and other investments; interest rates; cash balances; and changes in fair value of derivative instruments. Increased volatility in the financial markets and overall economic uncertainty would increase the risk of the actual amounts realised in the future on the Company’s financial instruments differing significantly from the fair values currently assigned to them.
Although the potential negative impact of global economic conditions has been thoroughly assessed, the consequences thereof could have unforeseen material effects on the Company’s business, results of operations and financial condition, and in particular if these were to impact the Company’s commercial aviation activities or otherwise impact its access to financing.
Brexit. 
On 29 March 2017, the UK triggered Article 50 of the Lisbon Treaty, the mechanism to leave the European Union (“Brexit”). The UK left the EU in an orderly manner on 31 January 2020 under the terms of the Withdrawal Agreement.
Brexit could lead to a reduced degree of political alignment between the Airbus home nations of UK, France, Germany and Spain, and more widely with EU institutions, now that the UK is no longer a member of the EU.
The risk of fragmentation could also impact the availability of public financing sources for our sector. This could for instance materialise in relation to COVID-19 crisis recovery plans, investment necessary to support our industry’s climate transition, financing of defence and security activities, or of research and development.
The Trade and Cooperation Agreement (“TCA”) concluded between the EU and the UK provides an adequate basis to support the Company’s and its supply chain industrial operations. Nevertheless, the existence of divergences between the EU and UK’s positions on certain significant issues, for instance in relation to Northern Irish border controls, migration flows or regulatory alignment, could trigger tensions which, in turn, could impact the implementation of the TCA and the associated benefits for our sector.
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Risk Factors / 1 Financial Market Risks. 
Sales Financing Arrangements. 
Foreign Currency Exposure. 
In support of sales, the Company may agree, case by case, to participate in the financing of selected customers. Over the last three years on average (2019 to 2021), the average number of aircraft delivered in respect of which financing support has been provided by Airbus amounted to approximately 1% of the number of deliveries over the same period.
The risks arising from the Company’s sales financing activities may be classified into two categories: (i) credit risk, which relates to the customer’s ability to perform its obligations under a financing arrangement, and (ii) aircraft value risk, which primarily relates to unexpected decreases in the future value of aircraft. Defaults by its customers or significant decreases in the value of the financed aircraft in the resale market may materially adversely affect the Company’s business, results of operations and financial condition.
The Company’s sales financing arrangements expose it to residual aircraft value risk, because it generally retains security interests in aircraft for the purpose of securing customers’ performance of their financial obligations to the Company, and/ or because it may guarantee a portion of the value of certain aircraft at certain anniversaries from the date of their delivery to customers. Under adverse market conditions, the market for used aircraft could become illiquid and the market value of used aircraft could significantly decrease below projected amounts. In the event of a financing customer default at a time when the market value for a used aircraft has unexpectedly decreased, the Company would be exposed to the difference between the outstanding loan amount and the market value of the aircraft, net of ancillary costs (such as maintenance and remarketing costs, etc.). Similarly, if an unexpected decrease in the market value of a given aircraft coincided with the exercise window date of an asset value guarantee with respect to that aircraft, the Company would be exposed to losing as much as the difference between the market value of such aircraft and the guaranteed amount, though such amounts are usually capped. Through the Airbus Asset Management department or as a result of past financing transactions, the Company is the owner of used aircraft, exposing it directly to fluctuations in the market value of these used aircraft.
In addition, the Company has backstop commitments to provide financing related to orders on the Company’s and ATR’s backlog. The Company’s sales financing exposure could rise in line with future sales growth depending on the agreement reached with customers. The Company remains exposed to the risk of defaults by its customers or significant decreases in the value of the financed aircraft in the resale market, which may have a negative effect on its future financial condition and results of operations.
In 2021, more than 70% of the Company’s revenues are denominated in US dollars, with approximately 60% of such currency exposure “naturally hedged” by US dollar-denominated costs. The remainder of costs are incurred primarily in euros. Consequently, to the extent that the Company does not use financial instruments to hedge its net current and future exchange rate exposure from the time of a customer order to the time of delivery, its profits will be affected by market changes in the exchange rate of the US dollar against these currencies.
There are complexities inherent in determining whether and when foreign currency exposure of the Company will materialise, in particular given the possibility of unpredictable revenue variations arising from order cancellations, postponements or delivery delays. The Company may also have difficulty in fully implementing its hedging strategy if its hedging counterparties are unwilling to increase derivatives risk limits with the Company, and is exposed to the risk of non-performance or default by these hedging counterparties. The exchange rates at which the Company is able to hedge its foreign currency exposure may also deteriorate, as the euro could appreciate against the US dollar for some time, as has been the case in the past and as higher capital requirements for banks result in higher credit charges for uncollateralised derivatives. Accordingly, the Company’s foreign currency hedging strategy may not protect it from significant changes in the exchange rate of the US dollar to the euro and the pound sterling, in particular over the long-term, which could have a negative effect on its financial condition and results of operations. In addition, the portion of the Company’s US dollardenominated revenues that is not hedged in accordance with the Company’s hedging strategy will be exposed to fluctuations in exchange rates, which may be significant. As of 31 December 2021, the total hedge portfolio with maturities up to 2027 amounts to US$ 88.3 billion and covers a major portion of the foreign exchange exposure expected over the period of the operative planning.
Furthermore, the Company is exposed to certain other price risks such as interest rate risks, changes in commodity prices and in the price of its own stocks. Adverse movements of these prices may jeopardise the Company’s profitability if not hedged.
Currency exchange rate fluctuations in currencies other than the US dollar in which the Company incurs its principal manufacturing expenses (mainly the euro) may affect the ability of the Company to compete with competitors whose costs are incurred in other currencies. This is particularly true with respect to fluctuations relative to the US dollar, as many of the Company’s products and those of its competitors (e.g., in the defence export market) are priced in US dollars. The Company’s ability to compete with competitors may be eroded to the extent that any of the Company’s principal currencies appreciates in value against the principal currencies of such competitors.
The Company’s consolidated revenues, costs, assets and liabilities denominated in currencies other than the euro are translated into the euro for the purposes of compiling its financial statements. Changes in the value of these currencies relative to the euro will, therefore, have an effect on the euro value of the Company’s reported revenues, costs, EBIT, other financial results, assets, liabilities and equity.
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Risk Factors / 1 Financial Market Risks. 
Counterparty Credit. 
Liquidity. 
In addition to the credit risk relating to sales financing as discussed above, the Company is exposed to credit risk to the extent of non-performance by its counterparties for financial instruments, such as hedging instruments (US$ 88.3 billion nominal value at 31 December 2021) and cash investments (US$ 20.65 billion nominal value at 31 December 2021). However, the Company has policies in place to avoid concentrations of credit risk and to ensure that credit risk exposure is limited.
Counterparties for transactions in cash, cash equivalents and securities as well as for derivative transactions are limited to highly rated financial institutions, corporates or sovereigns.
The Company’s credit limit system assigns maximum exposure lines to such counterparties, based on a minimum credit rating threshold as published by Standard & Poor’s and Moody’s. If neither is present, Fitch ratings are used. Besides the credit rating, the limit system also takes into account fundamental counterparty data, as well as sector and maturity allocations and further qualitative and quantitative criteria such as credit risk indicators. The credit exposure of the Company is reviewed on a regular basis and the respective limits are regularly monitored and updated.
The Company is exposed to liquidity risk in case of funding needs during a market disruption situation. The liquidity risk can arise when money markets and debt capital markets are closed for new issuances for a period of time. In order to mitigate this risk, the Company maintains: – significant amounts of highly liquid cash on-balance sheet; – undrawn committed credit facilities; – diversified Euro funding programmes (such as a € 12 billion euro medium-term note (“EMTN”) programme eligible to the Corporate Sector Purchase Programme of the European Central Bank (“ECB”), a € 11 billion Negotiable European Commercial Paper programme eligible to the Pandemic Emergency Purchase Programme of the ECB, and a € 4 billion Euro Commercial Paper programme); and – access to USD funding (through a US$ 3 billion US Commercial Paper programme, and a 144A US dollar bond market).
On 26 February 2021, the Company exercised the first extension option of the maturity of its undrawn New Credit Facility (implemented in 2020 for € 15 billion in response to the COVID-19 pandemic and reduced to € 6.2 billion after take-outs) from 30 March 2021 to 30 September 2021.
In August 2021, given the increase of its net cash position and its robust liquidity, the Company decided not to exercise the second extension option of the € 6.2 billion New Credit Facility that matured on 30 September 2021. In the meantime, the Company extended the maturity of our € 6 billion Revolving Syndicated Credit Facility to 21 October 2024.
Going forward, the Company will continue to adopt a prudent approach when it comes to managing its liquidity with the objective of maintaining its robust credit rating.
As of 31 December 2021 the credit exposure had been estimated as follows (in € million)(1):
Source of risk Exposure Unexpected Loss Contribution. 
Banks 3,074 43. 
Corporates 3,917 90. 
Sovereign issuers 1,326 12. 
Money market funds 12,328 21. 
Total 20,645 166 (1) Not audited.
The Company also seeks to maintain a certain level of diversification in its portfolio between individual counterparties as well as between financial institutions, corporates and sovereigns in order to avoid an increased concentration of credit risk on only a few counterparties.
However, there can be no assurance that the Company will not lose the benefit of certain derivatives or cash investments in case of a systemic market disruption. In such circumstances, the value and liquidity of these financial instruments could decline and result in a significant impairment, which may in turn have a negative effect on the Company’s financial condition and results of operations.
Moreover, the progressive implementation of new financial regulations and adjustments to existing regulations will have an impact on the business model of banks (for example, the split between investment banking and commercial banking activities) and on the capital structure and cost of such banks’ activities in relation to over-the-counter derivatives, and therefore on the funding consequences of central clearing and collateralisation of over-the-counter derivatives for corporations like the Company. This may ultimately increase the cost and reduce the liquidity of the Company’s long-term hedges, for example, as banks seek to either pass-on the additional costs to their corporate counterparties or withdraw from low-profit businesses altogether.
11 Airbus / Registration Document 2021


Risk Factors / 2 Business-Related Risks. 
Pension Commitments. 
The Company participates in several pension plans for both executive as well as non-executive employees, some of which are underfunded. As of 31 December 2021, the provision for retirement plans and similar obligations amounted to € 7.1 billion. For information related to these plans, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 31: Postemployment Benefits”. Although the Company has recorded a provision in its balance sheet for its share of the underfunding based on current estimates, there can be no assurance that these estimates will not be revised upward in the future, leading the Company to record additional provisions in respect of such plans.
Necessary adjustments of such provisions include but are not limited to (i) the discount factor (dependent in part on interest rates) and the inflation rate applied to calculate the net present value of the pension liabilities, (ii) the performance of the asset classes which are represented in the pension assets, and (iii) behavioural assumptions regarding beneficiaries, and (iv) additional cash injections contributed by the Company from time to time to the pension assets. The Company has taken measures to reduce potential losses on the pension assets and to better match the characteristics of the pension liabilities with those of the pension assets as a long-term objective. Nevertheless, any required additional provisions would have a negative effect on the Company’s total equity (net of deferred tax), which could in turn have a negative effect on its future financial condition.
2. Business-Related Risks. 
COVID-19 Risks. 
Over the last two years, new variants and the successive waves of the COVID-19 pandemic, the resulting health and economic crisis and actions taken in response to the spread of the pandemic, including government measures, lockdowns, travel limitations and restrictions, have resulted in significant disruption to the Company’s business, operations and supply chain.
The aerospace industry, the financial health of operators, airlines, lessors and suppliers, commercial aircraft market, demand for air travel and commercial air traffic have been severely impacted by the COVID-19 pandemic and the resulting health and economic crisis. As a result, airlines have reduced capacity, grounded portions of their fleets, sought to implement measures to reduce cash spending and secure liquidity. Some airlines are also seeking arrangements with creditors, restructuring or applying for bankruptcy or insolvency protection, which may have further consequences for the Company and its order book as well as other consequences resulting from the related proceedings. The Company will continue to face additional risks and uncertainties resulting from future consequences of the health and economic crisis on operators, airlines, lessors, suppliers and other actors in the air transport industry. See also “– Commercial Aircraft and Helicopter Market Factors” below.
Over the last two years, a number of measures have been taken by the Company to implement stringent health and safety procedures while taking account of stock levels and production lead-times. The COVID-19 crisis may lead to further disruptions to the Company’s internal operations and to its ability to deliver products and services. See also “– Dependence on Key Suppliers and Subcontractors” below.
In addition to its impact on the financial viability of operators, airlines and lessors and the reduction of commercial air traffic, lockdowns, travel limitations and restrictions around the world have posed logistical challenges and may continue to cause disruptions to the Company’s business, its operations and supply chain. These measures have and may continue to adversely affect the Company’s ability to deliver products and services as well as customers’ ability to take delivery of aircraft.
The Company has been adversely affected by weak market and economic conditions in markets around the world. Protracted weaker market and economic conditions and their knock-on effects have and could continue to result in (i) additional requests by customers to postpone delivery or cancel existing orders for aircraft (including helicopters) or other products including services, (ii) decisions by customers to review their fleet strategy, (iii) weak levels of passenger demand for air travel and cargo activity more generally, (iv) a sustained reduction in the volume of air travel for business purposes, and (v) prolonged or additional travel limitations and restrictions, which could negatively impact the Company’s results of operations.
In 2021, the Company delivered 611 commercial aircraft, 8% more than in 2020 (compared to 566 commercial aircraft in 2020, which was 34% fewer than in 2019, in line with the Company’s adaptation plan). This reflects customer requests to defer deliveries as well as other factors related to the ongoing COVID-19 crisis. In 2021, the Company recorded 264 cancellations (compared to 115 cancellations in 2020).
On 21 January 2021, the Company announced its decision to update its production rates in response to the market environment.
On 27 May 2021, the Company provided suppliers with an update of its production plans based on its expectation that the commercial aircraft market may recover to pre-COVID levels between 2023 and 2025, led by the single-aisle segment. In anticipation of a continued recovering market, the Company confirmed an average A320 Family production rate of 45 aircraft per month in the fourth quarter of 2021 and called on suppliers to prepare for the future by securing a firm rate of 64 by the second quarter of 2023. The A220 monthly production 12 Airbus / Registration Document 2021


Risk Factors / 2 Business-Related Risks. 
Ukraine Crisis. 
Russia’s invasion of Ukraine on 24 February 2022 and the resulting export control restrictions and international sanctions against Russia, Belarus and certain Russian entities and individuals have resulted in disruption to the Company’s business, its operations, data management and supply chain.
Following the imposition of export control restrictions and sanctions by the EU, the UK, the US and other countries that are relevant to the Company’s business, the Company announced in March 2022 it has suspended the delivery of aircraft and support services to Russian customers, as well as the supply of spare parts, equipment and software to Russia. The Company is complying with all applicable regulations and sanctions to its facilities and operations in Russia (including the Airbus Russia affiliate, Airbus Engineering Centre (ECAR), representation office in Moscow and the Space Division’s two joint ventures in Russia, Energia Satellite Technologies and Synertech). See “Export Control Laws and Regulations” below.
The crisis has increased the Company’s exposure to supply chain disruption risk. Part of the titanium used by the Company is sourced from Russia, both directly and indirectly through the Company’s suppliers. While geopolitical risks are integrated into the Company’s titanium sourcing policies, the impact of Russia’s invasion of Ukraine on the Company’s ability to source materials and components and any future expansion of sanctions is being reviewed.
The crisis has also exposed the Company to the risk of Soyuz business interruption that will have an impact on future launches and may have financial consequences.
The Company has activated a crisis management cell in response to Russia’s invasion of Ukraine and is monitoring the situation and evaluating the impacts to cyber security, operations, production, deliveries, logistics and transport as well as impacts on materials and components sourcing, inflation, oil and energy prices. See also “– Dependence on Key Suppliers and Subcontractors” and “Industrial System Adaptation” below.
Although the full impact cannot reasonably be assessed at the time of this report, the Company’s business, results of operations and financial condition may be materially affected by the direct and indirect impacts of Russia’s invasion of Ukraine and the resulting export control restrictions and international sanctions.
rate is confirmed to rise to around six in early 2022. The A350 production rate is expected to increase to six by Autumn 2022 while A330 production is expected to remain at an average monthly production rate of two per month.
On 28 October 2021, the Company announced the A220 production rate, which was at five aircraft a month, is expected to increase to around rate six per month in early 2022, with a monthly production rate of 14 envisaged by the middle of the decade. On the A320 Family programme, the Company is working to secure the ramp up and is on trajectory to achieve a monthly rate of 65 aircraft by summer 2023. The recent commercial successes of the A330 programme enable a monthly rate increase from around two to almost three aircraft at the end of 2022. The A350 programme is expected to increase from around five to around six aircraft a month in early 2023.
The Company continues to monitor the market closely. With these revised rates, the Company preserves its ability to meet customer demand while protecting its ability to further adapt as the global market evolves. The Company expects the commercial aircraft market to return to pre-COVID levels by 2023 to 2025.
The Company is monitoring the evolution of the COVID-19 crisis and will continue to evaluate further impacts and additional measures going forward while taking into account the latest industry outlook.
Although the full impact of the COVID-19 pandemic and the resulting health and economic crisis cannot reasonably be assessed at this time given its uncertain duration and extent, the Company’s business, its operations and supply chain are likely to be further disrupted by new variants and successive waves of the pandemic, the uncertainty it creates and the resulting health and economic crisis.
The Company’s business, results of operations and financial condition have been and will continue to be materially affected by the COVID-19 pandemic, and the Company continues to face significant risks and uncertainties related to new variants and successive waves of the COVID-19 pandemic and its resulting health and economic crisis.
For further details, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 2: Impact of the COVID-19 Pandemic”.
Commercial Aircraft and Helicopter Market Factors. 
Historically, the Company has experienced that order intake for commercial aircraft has shown cyclical trends, due in part to changes in passenger demand for air travel and the air cargo share of freight activity, which are in turn driven by a range of economic variables, such as GDP growth, private consumption levels or working age population size. Other factors, however, play an important role in determining the market for commercial aircraft, such as (i) the average age and technical obsolescence of the fleet relative to new aircraft; (ii) the number and characteristics of aircraft taken out of service and parked pending potential return into service; (iii) passenger and freight load factors; (iv) airline pricing policies and resultant yields; (v) airline financial health; (vi) the availability of third party financing for aircraft purchases; (vii) evolution of fuel price; (viii) regulatory environment; (ix) environmental constraints imposed upon aircraft operations, such as the Carbon Offsetting and Reduction Scheme for International Aviation (“CORSIA”), carbon standards and other environmental taxes; and (x) market 13 Airbus / Registration Document 2021


Risk Factors / 2 Business-Related Risks. 
The Company’s extensive information and communications systems, industrial environment, products and services are exposed to cyber security risks. Cyber security threats are rapidly changing and scenarios of attacks are becoming more sophisticated.
The Company is exposed to a number of different cyber security risks, directly or through its supply chain, arising from actions that may be intentional and hostile, accidental or negligent. Some of the objectives of an attacker are espionage, influence, obstacle to functioning or lucrative. The main cyber security risks for the Company are intrusion in systems leading to data leakage, attacks impacting the resilience of industrial systems and compromising products and services.
All of the above mentioned risks are heightened in the context of the increasingly common use of digital solutions by the Company (including greater use of cloud services, mobile devices, “internet of things”), increasingly capable adversaries and integration with the extended enterprise. Risks related to the Company’s industrial control systems, manufacturing processes and products are growing with the increase of interconnectivity and digitalisation. Moreover, a main challenge is to maintain an appropriate level of security of complex and legacy industrial systems to face attacks from hackers, who are improving their techniques and skills at incredible speed.
Finally, the Company is exposed to reputational damage and destabilisation from the growing volume of false and malicious information injected into media and social networks.
The Company continues to make significant efforts to prevent such risks from materialising. Targeted investments will reduce but not eradicate likelihood and impact through strengthening the business cyber resilience.
The materialisation of one or several of such risks could lead to severe damage including but not limited to significant financial loss, need for additional investment, contractual or reputational performance degradation, loss of intellectual property, loss of business data and information, operational business degradation or disruptions, and product or services malfunctions. Loss of personal data may result in administrative, civil or criminal liabilities including significant fines and penalties.
Cyber Security Risks. 
Physical Security, Terrorism, Pandemics and Other Catastrophic Events. 
Past terrorist attacks, public health crises and the spread of disease (such as the global COVID-19 pandemic or the H1N1 flu pandemic or the Ebola epidemic in 2013-2016) have demonstrated that such events may negatively affect public perception of air travel safety, which may in turn reduce demand for air travel and commercial aircraft. The outbreak of wars, riots or political unrest or uncertainties may also affect the willingness of the public to travel by air. Furthermore, major aircraft accidents may have a negative effect on the public’s or regulators’ perception of the safety of a given class of aircraft, a given airline, form of design or air traffic management. Flight activity restart requires particular focus on safety aspects such as aircraft destorage and pilot training. As a result of such factors, the aeronautic industry may be confronted with additional sudden or prolonged reduced demand for air transport and be compelled to take additional costly security and safety measures. The Company may, therefore, suffer from a decline in demand for all or certain types of its aircraft or other products, and the Company’s customers may postpone delivery or cancel orders.
In addition to affecting demand for its products, catastrophic events could disrupt the Company’s internal operations or its ability to deliver products and services. Disruptions may be related to threats to infrastructure, personnel security and physical security and may arise from terrorism, conflict and civil unrests, malicious acts, natural disasters, fire, damaging weather, and other types of incidents such as drone air traffic disruption. Effects of such events may be amplified if they happen on Single Points Of Failure (SPOFs) for which dedicated identification and mitigations are monitored. Any resulting impact on the Company’s production, services or information systems could have a significant adverse effect on the Company’s operations, financial condition and results of operations as well as on its reputation and on its products and services.
evolutionary factors such as the volume of business-related travel or the growth of low-cost passenger airline business models or the impact of e-commerce on air cargo volumes or consolidation of airlines. The COVID-19 pandemic and resulting health and economic crisis can amplify the impact of these factors, with the volatility observed during 2020 and 2021.
The factors described above may have a material impact on the commercial aircraft industry and therefore, on the Company’s financial condition and results of operations. In 2021, the commercial aircraft business segment of Airbus recorded total revenues of € 36.1 billion – representing 69% of the Company’s revenues. See “– Information on the Company’s Activities – 1.1.2 Airbus (Commercial Aircraft)”. During the COVID-19 pandemic, the Company observed that the downturn in its commercial aircraft business was partially mitigated by its defence, space and government activities. Such a cyclical pattern had already been observed in the past but historically diminished, due to the significant growth of the Company’s commercial aircraft business relative to its other activities, until the global pandemic arrived.
The commercial helicopter market in which the Company operates has shown cyclical trends and could also be influenced by factors listed above. The civil & parapublic market has shown signs of recovery in 2021, notably in the intermediate single engine helicopter segment led by the private & business aviation market. However, the offshore oil & gas market remains soft with low level of investments in the acquisition of new platforms. Flight hours have decreased slightly due to the pandemic however Airbus Helicopters has increased revenues thanks to the wideranging portfolio of service solutions.
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Risk Factors / 2 Business-Related Risks. 
Dependence on Key Suppliers and Subcontractors. 
The Company is dependent on numerous key suppliers and subcontractors to provide it with the raw materials, parts, assemblies, systems, equipment and services that it needs to manufacture its products.
The Company relies upon the good performance and financial health of its suppliers and subcontractors to meet the obligations defined under their contracts. A supplier’s performance and health may be negatively impacted by a variety of topics including: the current COVID-19 pandemic and its resulting economic impact; loss of skilled resources as a result of workforce reduction and difficulties to re-staff due to market employment tensions; need for working capital increase while state/bank loans obtained to weather through the crisis have reached maturity; difficulty gaining access to the needed material and components, including semiconductors, in the needed quantity and time frame and at competitive conditions as well as transport and logistic means availability; cyber security threats; geopolitical unrest; export controls evolving regulations and embargoes; and environmental issues.
In the context described above, changes to the Company’s production or development schedules may impact suppliers so that they initiate claims under their respective contracts for financial compensation or do not fulfil their on time and on quality delivery commitments. This may have a negative effect on the financial condition and results of operations of the Company.
As the Company’s global sourcing footprint extends, some suppliers (or their sub-tier suppliers) may have production facilities located in countries that are exposed to socio-political unrest or natural disasters which could interrupt deliveries. This may have a negative effect on the financial condition and results of operations of the Company.
The Company cannot fully protect itself from non-performance of a supplier, which could disrupt production and in turn may have a negative effect on the financial condition and results of operations of the Company. The Company has implemented a robust governance to prevent, anticipate and monitor supply chain disruption risks and/or ensure efficient management of issues.
Technologically Advanced Products and Services. 
The Company offers its customers products and services that are technologically advanced, so the design, manufacturing, components and materials utilised can be complex and require substantial integration and coordination along the supply chain. In addition, most of the Company’s products must function under demanding operating conditions. Throughout the lifecycle of its products, the Company performs checks and inspections, which may result in modifications, retrofits or other corrective actions, each of which may have an adverse effect on production, operations, in-service performance or financial condition. There can be no assurance that the Company’s products or services will be successfully developed, manufactured or operated or that they will perform as intended.
Certain of the Company’s contracts require it (i) to forfeit part of its expected profit, (ii) to receive reduced payments, (iii) to provide a replacement launch or other products or services, (iv) to provide cancellation rights, or (v) to reduce the price of subsequent sales to the same customer if its products fail to be delivered on time or to perform adequately. No assurances can be given that performance penalties or contract cancellations will not be imposed should the Company fail to meet delivery schedules or other measures of contract performance, in particular with respect to development programmes such as the A220, A350-900 and -1000 XWB, A350 Freighter, A400M, H160 or Ariane 6 and to modernisation programmes such as the A320neo and the A330neo. See “– Programme-Specific Risks” below.
In addition to the risk of contract cancellations, the Company may also incur significant costs or loss of revenues in connection with remedial action required to correct any performance issues detected in its products or services. See “– Management’s Discussion and Analysis of Financial Condition and Results of Operations – 2.1.1.3 Significant programme developments in 2019, 2020 and 2021 and other financial topics”. Moreover, to the extent that a performance issue is considered to have a possible impact on safety, regulators could suspend the authorisation for the affected product or service.
Industrial System Adaptation. 
In early 2020, in response to the COVID-19 crisis, the Company adapted the production rates significantly (-40%). At the beginning of 2021, air traffic started to recover, especially in certain domestic and regional markets, and the Company announced in May 2021 an industrial ramp-up trajectory that has been confirmed at the end of Q3 2021. The Company will continue to monitor and adapt according to traffic evolutions and market situation and expectations; hence it is actively working and monitoring the ramp-up across the complete value chain for Single Aisle commercial aircraft. The Company is engaged in a process to adapt its industrial set-up to the new rates. This process is addressing the resource adaptation (headcount, skills and competencies) and the fixed cost reduction (industrial facilities, IT systems) while protecting inventory level and leadtime between aircraft configuration chosen by our customer and aircraft delivery. This encompasses the full industrial process from supply chain (including raw material, subcontracted work packages, equipment, etc.) to aircraft delivery. In this process, the Company focuses attention on quality industrial adherence Production Organisation Approval (POA).
For more details on specific programme risks, see “– ProgrammeSpecific Risks” below.
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Risk Factors / 2 Business-Related Risks. 
Dependence on Public Spending and on Certain Markets. 
In any single market, public spending (including defence and security spending) depends on a complex mix of geopolitical considerations and budgetary priorities, and may therefore be subject to significant fluctuations from year to year and country to country. Any termination or reduction of future funding or cancellations or delays impacting existing contracts may have a negative effect on the Company’s financial condition and results of operations. In instances where several countries undertake to enter together into defence or other procurement contracts, economic, political or budgetary constraints in any one of these countries may have a negative effect on the ability of the Company to enter into or perform such contracts.
The Company has a geographically diverse backlog. Adverse economic and political conditions, as well as downturns in broad economic trends in certain countries or regions, may have a negative effect on the Company’s financial condition and results of operations generated not only in those regions but may also affect the rest of the world due to complex economic interdependencies.
Any significant problems with the development, manufacturing, operation, performance or safety of the Company’s products and services could have a significant adverse effect on the. 
Company’s financial condition and results of operations as well as on the reputation of the Company and its products and services.
Availability of Government and Other Sources of Financing. 
In prior years, the Company and its principal competitors have each received different types of government financing of product research and development. However, no assurances can be given that government financing will continue to be made available in the future. Moreover, the availability of other outside sources of financing will depend on a variety of factors such as market conditions, the general availability of credit, the Company’s credit ratings, as well as the possibility that lenders or investors could develop a negative perception of the Company’s long- or short-term financial prospects if it incurred large losses or if the level of its business activity decreased due to an economic downturn. The Company may, therefore, not be able to successfully obtain additional outside financing on appropriate terms, or at all, which may limit the Company’s future ability to make capital expenditures, fully carry out its research and development efforts and fund operations.
Competition and Market Access. 
The markets in which the Company operates are highly competitive. With regard to the Company’s commercial aircraft business for aircraft with more than 150 seats, the Company today operates in a competitive duopoly. The design, development and production of commercial aircraft involves high barriers to entry (including certification requirements, large investment needs, skilled competencies and access to technology and long development cycles). Although the two main market participants for aircraft with more than 150 seats have secured significant order backlogs, the competition could launch new products or services that could have a negative impact on the Company’s revenues, future financial condition and results of operations.
New players are operating or seeking to operate in the Company’s existing markets, which may impact the structure and profitability of these markets. In addition, enterprises with different business models and alternative technologies could substitute the Company’s services and some of its products or component parts thereof. In some areas, competitors may have more extensive or more specialised engineering, manufacturing, support and marketing capabilities. There can be no assurance that the Company will be able to compete successfully against these future competitors or that the competitive pressures it faces in all business areas will not result in reduced revenues, market share or profit. See “– Environment, Human Rights, Health & Safety Risks – Climate-Related Risks” below.
In addition, some of the Company’s largest customers and/or suppliers may develop the capability to manufacture products or provide services similar to those of the Company. This would result in these customers/suppliers marketing their own products or services and competing directly with the Company for sales of these products or services, all of which could significantly reduce the Company’s revenues.
In addition, the contracts for many aerospace and defence products are awarded, implicitly or explicitly, on the basis of home country preference. Although the Company is a multinational company which helps to broaden its domestic market, it may remain at a competitive disadvantage in certain countries, especially outside of Europe, relative to local contractors for certain products. The strategic importance and political sensitivity attached to the aerospace and defence industries means that political considerations will play a role in the choice of many products and services for the foreseeable future.
The contracts for many aerospace and defence products and services are regularly associated with offset obligations. The Company may face difficulties to meet those obligations, to leverage the assets of the country and at the same time to optimise its industrial base and supply chain.
16 Airbus / Registration Document 2021


Risk Factors / 2 Business-Related Risks. 
Major Research and Development Programmes. 
The business environment in many of the Company’s principal operating business segments is characterised by extensive research and development costs requiring significant up-front investments with a high level of complexity. For the year 2021, research and development expenses were € 2.7 billion. For the year 2020, research and development expenses were € 2.9 billion (compared to € 3.4 billion for the year 2019).
Due to the technologically advanced complex nature of the products that the Company produces and the long period, including ramp up time, it takes to produce them, the business plans underlying such investments often contemplate a long payback period before these investments are recouped, and assume a certain level of return over the course of this period in order to justify the initial investment. There can be no assurance that the commercial, technical and market assumptions underlying such business plans will be met, and consequently, the payback period or returns contemplated therein achieved.
Significant technological, skills and industrial challenges exist to achieve the Company’s sustainability ambitions for the future generations of aerospace. These ambitions require cross industry and cross government collaboration to address the technological risks that need to be overcome. See “– Environment, Human Rights, Health & Safety Risks – Climate-Related Risks” below.
Successful development of new programmes also depends on the Company’s ability to attract and retain engineers and other professionals with the technical skills and experience required to meet its specific needs. Demand for such engineers may often exceed supply depending on the market, resulting in intense competition for qualified professionals. The Company’s attrition rate in 2021 was 7.4% overall (including subsidiaries) (compared to 5.8% overall in 2020). There can be no assurance that the. 
Company will attract and retain the personnel it requires to conduct its operations successfully and in particular to attract and retain engineers and other professionals with the technical skills and experience required for its research and development programmes. Failure to attract and retain such personnel or an increase in the Company’s employee turnover rate could negatively affect the Company’s financial condition and results of operations more generally and particularly its ability to successfully execute its research and development programmes.
There is a risk of additional repercussions from COVID-19’s impact on skills and expertise. Significant effort has been made to maintain key resources and cope with the increased departure of skilled staff with improved knowledge management and knowledge transfer schemes across the Company.
The COVID-19 crisis has impacted key company technological developments and competencies, but despite this, the Company continues seeking to further its development in sustainable technologies. This commitment directs a significant proportion of the longer term technology research efforts for future products and services and is based on solving complex problems backed by exploring multiple technology pathways. Retaining this ambitious programme is achieved with national research funding through frameworks such as CORAC, LUFO, ATI, CDTI and Horizon Europe where the frameworks enable the Company and the wider aviation ecosystem to mature and develop the required key competencies and technologies.
No assurances can be given that the Company will achieve the anticipated level of returns from these programmes and other development projects, which may negatively affect the Company’s financial condition and results of operations and competitiveness.
Acquisitions, Divestments, Joint Ventures and Strategic Alliances. 
As part of its business strategy, the Company may acquire or divest businesses and/or form joint ventures or strategic alliances. Executing acquisitions and divestments can be difficult and costly due to the complexities inherent in integrating or carving out people, operations, technologies and products. There can be no assurance that any of the businesses that the Company intends to acquire or divest can be integrated or carved out successfully, as timely as originally planned or that they will perform well and deliver the expected synergies or cost savings once integrated or separated. In addition, regulatory, administrative, opposition by social partners or other contractual conditions can prevent transactions from being finalised. Each acquisition, divestment, joint venture and strategic alliance is very specific in its nature, purpose, risk and opportunities. The Company identifies risks through a detailed and systematic due diligence process and addresses the risks identified through price mitigation and/or appropriate contractual coverage, such as indemnification mechanisms, both being the tailored-made results of complex negotiations with the sellers/ buyers and/or partners. The Company’s business, results of operations and financial condition may be materially affected if these transactions will not be successfully completed or do not produce the expected benefits.
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Risk Factors / 2 Business-Related Risks. 
Public-Private Partnerships and Private Finance Initiatives. 
Governmental customers may request proposals and grant contracts under schemes known as public-private partnerships (“PPPs”). PPPs differ substantially from traditional defence equipment sales, as they often incorporate elements such as: – the provision of extensive operational services over the life of the equipment; – continued ownership and financing of the equipment by a party other than the customer, such as the equipment provider; – mandatory compliance with specific customer requirements pertaining to public accounting or government procurement regulations; and – provisions allowing for the service provider to seek additional customers for unused capacity.
The Company is party to PPP and private finance initiatives (“PFI”) contracts, for example Skynet 5 and related telecommunications services, and in the AirTanker (“FSTA”) project both with the UK Ministry of Defence. One of the complexities presented by PFIs lies in the allocation of risks and the timing thereof among different parties over the life-time of the project.
There can be no assurance of the extent to which the Company will efficiently and effectively (i) compete for future PFI or PPP programmes, (ii) administer the services contemplated under the contracts, (iii) finance the acquisition of the equipment and the ongoing provision of services related thereto, or (iv) access the markets for the commercialisation of excess capacity. The Company may also encounter unexpected political, budgetary, regulatory or competitive risks over the long duration of PPP and PFI programmes.
Programme-Specific Risks. 
In addition to the risk factors mentioned above, the Company also faces the following programme-specific risks that could have a material impact on the Company’s business, results of operations and financial condition.
The Company faces the following main challenges on its commercial programmes: – adapt to rate and stabilise operational performance postCOVID-19 while maintaining high safety and quality standards; – monitor and support the supply chain; – accompany customers and facilitate deliveries to customers including by remote delivery process; – ensure a strong customer focus to support return to operations; and – protect priority projects and deliver developments as per revised plan including A321XLR, A350 Step7 (Standard 2022), A350 Freighter, A330-800, A330-800 251t MTOW, A330 Step4, A330 Bridge Tanker and Digital (DDMS and Skywise).
A320 Family programme. In response to the new COVID-19 market environment, the commercial aircraft production rate for the A320 Family was reduced to 40 per month in June 2020. In 2021, the Company announced demand for the A320 Family is expected to lead to a gradual increase in production from the rate of 40 per month to 43 in Q3 2021 and to 65 by summer 2023. The Company proactively and constantly monitors the backlog, the internal and external supply chain, including engines, so as to ensure readiness for further rate adaptations in accordance with traffic evolution, to minimise inventory levels, and secure aircraft storage capacity. In connection with the A320 Family programme, the Company faces the following challenges: ensure the A321XLR on-track development including A321XLR certification topics with primary airworthiness authorities, adapt and upgrade our industrial system and capability to meet the growing market demands and corresponding product mix within the family. Market demand for single aisle aircraft, production and supply chain capabilities will evolve in the next few years and the Company will closely monitor these evolutions including a projected significant increase in A321 production. Attention will remain high on ramp up engine availability and engine maturity in-service.
A400M programme. After the Company signed a contract amendment to restructure the contract, risks remain on development of technical capabilities (development effort as well as possible commercial agreement associated costs in order to reach Type Acceptance) and the associated costs, on securing sufficient export orders in time, on aircraft operational reliability in particular with regards to power plant and on cost reductions 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”.
A350 XWB programme. In connection with the A350 XWB programme, the Company faces the following main challenges: to secure revised quarterly delivery targets post-COVID-19, monitor and support the supply chain, A350 non-structural surface degradation, reduce recurring costs to improve competitiveness within a widebody market recovering at a slower pace and deliver Step 7 as per adapted plan and develop the A350 Freighter. Decisions on further rate adaptation will depend on traffic evolution.
A330 programme. In response to the new COVID-19 market environment, the commercial aircraft production rate for the A330 programme was adapted to two per month in June 2020. Then, following new orders, the decision was taken in Q3 2021 to increase the production rate to almost three in 2023. Decisions on further rate adaptation will depend on traffic evolution. In connection with the A330 programme, the main challenges the Company faces are to secure product competitiveness in the widebody market segment, monitor and support the supply chain. The developments were on track in 2021: A330neo low speed performance improvement certification in February 2021, A330-900 first aircraft ever to receive EASA CO2 certification in May 2021, A330neo alternate Centre of Gravity option certification in September 2021.
A220 programme. In connection with the A220 programme, the main challenges the Company faces are to secure the A220 cost reduction trajectory with a strong focus on its Design to Cost roadmap and recurring cost reduction, and to ensure an A220 18 Airbus / Registration Document 2021


Risk Factors / 3 Legal Risks book to bill above one to fill current open slots. As a consequence of the COVID-19 pandemic, the commercial aircraft production rates were adapted to rate five per month (in Mirabel and in Mobile) in 2020-2021 and will be increased to rate six early 2022. Attention will remain high on engine maturity in service.
A380 programme. In connection with the A380 programme, the Company faces the following main challenges: secure in service support for the next decades and long-term competitiveness.
H225 programme. Airbus Helicopters continues to drive improvements across its product range as part of its commitment to raise safety standards. The H225 programme is still facing a challenge with the supply chain in a COVID-19 context.
H175 programme. The situation remains challenging on the commercial side: a tough market environment on its main offshore segment.
Tiger programme. The Tiger MKIII contract signature and the lifetime extension out of Tiger MKII contract are the key to the future of the programme. The Company faces the challenge to increase the Tiger availability, whose action plans are producing first results.
NH90 programme. A transformation plan has been initiated to adapt to the challenges of a large and diverse in-service fleet with two axes: first to face a rising volume of maintenance and repairs, and second to improve fleet availability.
H160 programme. The main challenges for the H160 programme are to secure the entry-into-service, the FAA certification and the industrial ramp-up phase.
Border security. In connection with border security projects, the Company faces the following main challenges: meeting the schedule and cost objectives taking into account 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 is presently unclear but could result in significant further financial impacts.
Defence programmes. The Company is engaged in major European defence collaboration programmes, such as Eurodrone and Future Combat Air System (FCAS), serving several European governments and partnering with several European companies of the defence sector. Such complex industrial programmes entail alignments and negotiations between many stakeholders on technical, industrial as well as on political matters. Due to the very nature of such discussions and the number of stakeholders, there is an inherent risk of lengthening the contract preparation phase and hence delaying the signature date.
3. Legal Risks. 
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”.
For the investigation by the UK Serious Fraud Office (“SFO”), France’s Parquet National Financier (“PNF”), and the US Departments of State (“DoS”) and Justice (“DoJ”), which is described in “– Anti-Corruption Laws and Regulations”, the Company has reached an agreement with the authorities, which was approved by the French and UK courts and US court and regulator on 31 January 2020. The agreement resulted in a fine totalling € 3.6 billion plus costs to the French, UK, and US authorities. 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 SFO, PNF, DoJ, DoS, Related Commercial Litigation and Securities Litigation), respectively.
The Company expects to continue to spend time and incur expenses associated with its defence of legal and regulatory proceedings, regardless of the outcome, and this may divert the efforts and attention of management from normal business operations. Although the Company is unable to predict the outcome of these 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 ruling 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 matters, anti-bribery laws and regulations, export control laws and regulations, securities law, trade law 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. See “– Non-Financial Information 1.2.5 – Exemplify Business Integrity”.
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Risk Factors / 3 Legal Risks. 
Anti-Corruption Laws and Regulations. 
The Company is required to comply with applicable anti-bribery laws and regulations in jurisdictions around the world where it does business. To that end, an anti-corruption programme has been put in place that seeks to ensure adequate identification, assessment, monitoring and mitigation of corruption risks. Despite these efforts, ethical misconduct or non-compliance with applicable laws and regulations by the Company, its employees or any third party acting on its behalf could expose it to liability or have a negative impact on its business.
The Company may be subject to administrative, civil or criminal liabilities including significant fines and penalties, as well as suspension or debarment from government or non-government contracts for some period of time. The Company may also be required to modify its business practices and compliance programme and/or have a compliance monitor imposed on it. Any one or more of the foregoing could have a significant adverse effect on the Company’s reputation and its business, results of operations and financial condition.
In 2016, for example, the Company announced that it had discovered misstatements and omissions in certain applications for export credit financing for the Company’s customers, and had engaged legal, investigative and forensic accounting experts to conduct a review. Separately, the UK SFO announced that it had opened a criminal investigation into allegations of fraud, bribery and corruption in the civil aviation business of the Company, relating to irregularities concerning third party consultants. The Company was subsequently informed that the French authorities, the PNF, had also opened a preliminary investigation into the same subject and that the two authorities would act in coordination going forward. The Company engaged with the government of the US (DoS and DoJ) relating to conduct forming part of the SFO/PNF investigation that could fall within US jurisdiction. The Company also engaged with the government of the US concerning potential issues of ITAR Part 130 and related matters. On 31 January 2020, the French and UK courts and US court and regulator approved an agreement reached by the Company with the authorities. Any breach of the terms of the agreements by the Company could lead to rescission by the authorities of the terms of the agreements and reopening of the prosecutions. Prosecution could result in the imposition of further monetary penalties or other sanctions including additional tax liability and could have a material impact on the Financial Statements, business and operations of the Company. The agreements reached with authorities may lead to additional commercial litigation and arbitration against the Company and tax liability in the future, which could have a material impact on the Financial Statements, business and operations of the Company. For further information, please refer to “Notes to the IFRS Consolidated Financial Statements – Note 38: Litigation and Claims” (Investigation by the SFO, PNF, DoJ, DoS and Related Commercial Litigation).
Export Controls Laws and Regulations. 
The export market is a significant market for the Company. In addition, many of the products the Company designs and manufactures for military use are considered to be of national strategic interest. Consequently, the export of such products outside of the jurisdictions in which they are produced may be restricted or subject to licensing and export control requirements, notably by the UK, France, Germany and Spain, where the Company carries out its principal activities relating to military products and services as well as by other countries where suppliers are based, notably, the US. There can be no assurance (i) that the export controls to which the Company is subject will not become more restrictive, (ii) that new generations of the Company’s products will not also be subject to similar or more stringent controls or (iii) that geopolitical factors or changing international circumstances will not make it impossible to obtain export licenses for one or more clients or constrain the Company’s ability to perform under previously signed contracts. Reduced access to military export markets may have a significant adverse effect on the Company’s business, results of operations and financial condition.
Operating worldwide, the Company must comply with several, sometimes inconsistent, sets of sanctions laws and regulations implemented by transnational / national / regional authorities.
Depending on geopolitical considerations including national security interests and foreign policy, new sanctions regimes may be set up or the scope of existing ones may be widened, at any time, immediately impacting the Company’s activities. This has been well illustrated in the current Ukrainian crisis. The imposition of international Export Control restrictions targeting the aviation and space sectors have resulted in Airbus suspending deliveries, the provisions of services and the supply of spare parts to customers in Russia. We continue to monitor the evolution of the Export Control restrictions and broader sanctions and will adapt to the changing environment.
Although the Company seeks to comply with all such laws and regulations, even unintentional violations or a failure to comply could result in suspension of the Company’s export privileges, or preclude the Company from bidding on certain government contracts (even in the absence of a formal suspension or debarment).
Furthermore, the Company’s ability to market new products and enter new markets may be dependent on obtaining government certifications and approvals in a timely manner.
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Risk Factors / 3 Legal Risks. 
Dependence on Joint Ventures and Minority Holdings. 
The Company generates a proportion of its results through various consortia, joint ventures and equity holdings. The Company recognises its share in the results of its equity holdings in the proportion of the stake held. In 2021, the Company’s total share of result from these arrangements amounted to € 40 million (compared to € 39 million in 2020 and € 299 million in 2019). The Company’s individually material joint ventures are ArianeGroup (50%), MBDA (37.5%) and ATR GIE (50%). For further information, 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 formation of partnerships and alliances with other market players is an integral strategy of the Company, and the proportion of sales generated from consortia, joint ventures and equity holdings may rise in future years. This strategy may from time to time lead to changes in the organisational structure, or realignment in the control, of the Company’s existing joint ventures.
The Company exercises varying and evolving degrees of control in the consortia, joint ventures and equity holdings in which it participates. While the Company seeks to participate only in ventures in which its interests are aligned with those of its partners, the risk of disagreement or deadlock is inherent in a jointly controlled entity, particularly in those entities that require the unanimous consent of all members with regard to major decisions and specify limited exit rights. The other parties in these entities may also be competitors of the Company, and thus may have interests that differ from those of the Company.
Product Liability and Warranty Claims. 
The Company designs, develops and produces a number of high profile products of large individual value, particularly civil and military aircraft and space equipment. The Company is subject to the risk of product liability and warranty claims in the event that any of its products fails to perform as designed. While the Company believes that its insurance programmes are adequate to protect it from such liabilities, no assurances can be given that claims will not arise in the future or that such insurance coverage will be adequate.
The Company follows a policy of seeking to transfer the insurable risk of the Company to external insurance markets at reasonable rates, on customised and sufficient terms and limits as provided by the international insurance markets. The insurance industry remains unpredictable. There may be future demands to change scope of coverage, premiums and deductible amounts. No assurances can be given that the Company will be able to maintain its current levels of coverage nor that the insurance coverages in place are adequate to cover all significant risk exposure of the Company.
Any problems in this respect may also have a significant adverse effect on the reputation of the Company and lead to a decline in demand for its products and services. Any reputational damage faced by the Company may be exacerbated due to the Company’s visibility.
The Company cannot predict at this time the impact on it as a result of any product liability or warranty claims as such will depend on the nature and size of any such claim.
Intellectual Property. 
The Company continuously seeks to develop and deliver new products to meet customers’ evolving needs, while also improving its existing product lines. Technological innovation has been at the core of the Company’s strategy since its creation. The Company’s innovations often provide distinct competitive advantages, with many becoming standard in the aircraft industry. In addition, the Company designs, develops and produces a number of high profile products of large individual value, particularly civil and military aircraft and space equipment. Therefore, intellectual property (“IP”) is one of the Company’s most valuable assets and the protection of IP is critical to its business.
The Company relies upon patents, copyright, trademark, confidentiality and trade secret laws, and agreements with its employees, customers, suppliers and other parties, to establish and maintain its IP rights in its products and services and in its operations. In a typical year, the Company files around 800 new priority-establishing patent applications and files globally around 1,600 national patent applications in global markets where it seeks to protect its technology assets. The Company has granted patents for around 10,500 individual technologies with nearly 4,000 patents pending. This level of protection is benchmarked against peer and competitor companies and is considered sufficient to protect core, proprietary differentiating technology which is developed by the Company. Despite these efforts to protect its IP rights, any of the Company’s direct or indirect IP rights could be challenged, invalidated or circumvented. Further, the laws of certain countries do not protect the Company’s proprietary rights to the same extent as the laws in Europe and the US. Therefore, in certain jurisdictions the Company may be unable to protect its proprietary technology adequately against unauthorised third-party copying or use, which could adversely affect its competitive position. The Company may also face lack of certainty with respect to IP rights for existing or new research and development programmes and established or potential partnerships with private or public organisations, academic institutions and research councils, charities and government departments, where the relevant IP frameworks or user-rights/ ownership governing those relationships is dependent on the UK’s former status as a member state of the European Union.
21 Airbus / Registration Document 2021


Risk Factors / 4 Environment, Human Rights, Health & Safety Risks 4. Environment, Human Rights, Health & Safety Risks. 
Climate-Related Risks. 
Climate change may have a major impact on both the Company’s industrial operations and its upstream and downstream value chain, including aircraft direct operations and the wider air transport ecosystem along with a strong influence on regulations and stakeholders expectations. Accordingly, climate-related risks can potentially affect the Company’s business and competitiveness, its customers and other actors from the aviation industry.
The Company categorises its climate-related risks and opportunities according to the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations. In particular, risks are sorted into two categories: transition and physical.
Transition Risks. 
Technology: The Company has identified the risk of a reduction in the Company’s business, results of operations and financial condition if a competitor brings a lower emission product to the market before it does. Delivering on commitments and potential future requirements to mitigate climate impacts will require significant technological developments for the commercial aircraft sector as well as appropriate infrastructure developments and other ecosystem adaptations. In the event that a competitor or new market participant has access to technological developments unavailable to the Company and is able to place on the market a large passenger aircraft with significantly lower emissions before the Company, climate mitigation requirements may push the market towards competing products until the Company and its partners can develop a competing alternative, which could lead to a temporary loss of market competitiveness and reduced revenue.
Market: Changes in societal expectations and growing concerns about climate change may impact market demand for air transport. In particular, a change in certain passengers’ behaviour or their transition to other transport modes could decrease the demand for the Company’s current and future generation of products, causing a loss of revenues.
The development of future products based on the ZEROe concepts will require significant investments in both products and supporting infrastructure, which could directly impact the operating costs of such a product.
The competitiveness of this next generation product will also strongly depend, among other factors, on the evolution of the price of carbon dioxide emissions. It is, therefore, crucial for the Company to account at each step of development for market expectations, while staying affordable for its customers and competitive with regards to competitors’ portfolios. The failure to do so could result in the Company losing market share to competitors, as well as affecting the Company’s return on investment with regards to future commercial aircraft products.
Energy transition: The Company has identified a risk of insufficient availability of low carbon fuels (such as sustainable aviation fuels or hydrogen) and the limited number of innovative certified pathways that may compromise the decarbonisation ambition of the Company and for the whole aviaton sector.
Policy and Legal: Aviation is a complex industry, with long product development cycles and where change takes a long time to be implemented. A rapid evolution of climaterelated policies (such as carbon pricing policies and sustainable aviation fuel policies) and regulatory frameworks (CO2 standards, sustainable finance, emissions trading systems, aircraft operation restrictions among others) could generate fast-changing requirements and could obstruct new product development pathways. As aviation is a global industry, policies and regulatory frameworks implemented at regional level rather than international level, or evolving at a different speed depending on the region, would unbalance a competitive level playing field for manufacturers and operators possibly creating market distortion. This could result in a loss of competitiveness for the Company.
In the event the Company is unable to adequately procure and protect critical IP it could potentially not implement its business strategy.
The Company has been accused of infringement on occasion and could have additional claims asserted against it in the future. These claims could harm its reputation, result in financial penalties or prevent it from offering certain products or services which may be subject to such third-party IP rights. Any claims or litigation in this area, whether the Company ultimately wins or loses, could be time-consuming and costly, harm the Company’s reputation or require it to enter into licensing arrangements. The Company might not be able to enter into these licensing arrangements on acceptable terms. If a claim of infringement were successful against it, an injunction might be ordered against the Company, causing further losses. There are currently no significant claims of IP infringement pending against the Company. Minor claims and pre-dispute matters commonly settle either without the issuance of formal legal proceedings or during initial proceedings.
22 Airbus / Registration Document 2021


Risk Factors / 4 Environment, Human Rights, Health & Safety Risks. 
Reputation: Reputational risks could be divided in several categories. Firstly, there is a risk that misperceptions about the Company’s environmental performance is used as a key decision-making criteria for consumers, investors, or even new talents. Secondly, there is a risk that the Company’s reputation is damaged by growing societal concerns about the climate change impact of aviation or by the lack of transparency on progress made to address climate-related issues.
As an example, the Company was the first manufacturer to disclose its ambition to bring a zero-emission aircraft to the market. If the ambition is perceived as unattainable or if the Company is not able to deliver on its ambition it could result in reputational damage leading to reduced investment, loss of revenues and reduced attractiveness. A similar situation could occur if the Company’s environmental performance is not on par with its expressed ambition.
Physical Risks. 
The foreseen consequences of climate change include harsher average weather conditions and more frequent extreme weather events, such as hurricanes, hail storms, heat waves or extreme cold spells. To cope with degraded operational conditions, costly, time-consuming and more frequent redesigns may be required by the Company to improve its products to meet more stringent regulation and certification criteria or standards.
The effects of climate change on weather conditions may impact operating conditions of the Company’s industrial activities (including the activities of its supply chain) with higher occurrence and severity of, for instance, hurricanes, hail storms or floods. As a consequence, industrial activities may be disrupted or interrupted if a part of the Company’s industrial system or its supply chain is affected or impaired by such events. The Company’s future installations may require more stringent requirements and planning to withstand more intense weather events.
Regulated Chemicals. 
Regulatory Risks. 
Evolution of the chemicals’ regulatory framework may lead to short- and long-term potential bans and restrictions, and result in business disruption across the Company’s value chain.
With the aim of protecting human health and the environment, regulators at national and international level have developed a stringent set of legal requirements that are continuously evolving to regulate, minimise the use of and eliminate various substances.
Due to the above-mentioned regulatory requirements, the Company has identified the risk of chemicals obsolescence that may lead to supply disruption.
In order to reduce the use of targeted substances and mitigate the risk of disruption in its operations and supply chain, the Company’s policy is the development of alternative technologies that use substances of less concern and substitution of these when suitable alternatives meeting stringent certification and airworthiness criteria are available for deployment.
Complementary to substitution, digital solutions are being developed to improve traceability of regulated substances in our products from the early design steps down to the end of life.
The Company’s expenditure associated with environmental, human rights, health and safety challenges may increase due to both increased costs of compliance with regulations in those areas as well as reputational and litigation risks.
Given the scope of its activities and the industries in which it operates, the Company is subject to stringent environmental, human rights, health and safety laws and regulations in numerous jurisdictions around the world. The Company therefore incurs, and expects to continue to incur, significant capital expenditure and other operating costs to comply with increasingly complex laws and regulations covering the protection of the natural environment as well as occupational health and safety and human rights. Health and safety expenditures include investments in the identification and the prevention, elimination or control of physical and psychological risks to people arising from work, including chemical, biological, mechanical and physical agents. Risks that could arise from work activities include the possibility of injury, physical and mental ill-health, damage to equipment, business interruption and regulatory action. Any reputational risk and claims against the Company that may result will also need to be managed and may lead to additional health and safety expenditure being required. In 2021, the Company maintained its stringent COVID-19 risk management measures in the workplace. However, the Company recognises that its employees continue to face physical and mental ill-health risks due to the COVID-19 associated public health controls, combined with the Company adaptation plans. Environmental protection expenditures include costs to prevent, control, eliminate or reduce emissions to the environment, waste management, the content of the Company’s products, and reporting and warning obligations. Current trends indicate that regulatory pressure on the international scene to reduce the environmental footprint of industry is steadily growing (circular economy and resources efficiency, energy transition and climate change engagement, air and water quality improvement). Moreover, new laws and regulations, the imposition of tougher license requirements, increasingly strict enforcement or new interpretations of existing laws and regulations may cause the Company to incur increased capital expenditure and operating costs in the future in relation to the above, which could have a negative effect on the Company’s business, results of operations and financial condition.
23 Airbus / Registration Document 2021


Risk Factors / 4 Environment, Human Rights, Health & Safety Risks. 
If the Company fails to comply with environmental, human rights, health and safety laws and regulations, even if caused by factors beyond its control, that failure may result in the levying of civil or criminal penalties and fines against it. Regulatory authorities may require the Company to conduct investigations and undertake remedial activities, curtail operations or close installations or facilities temporarily to prevent imminent risks. In the event of an industrial accident or other serious incident, employees, customers and other third parties may file claims for ill-health, personal injury, or damage to property or the environment (including natural resources). Further, liability under some environmental, human rights, health and safety laws can be imposed retrospectively, on a joint and several basis, and in relation to contaminated sites, without any finding of noncompliance or fault. These potential liabilities may not always be covered by insurance, or may be only partially covered. The obligation to compensate for such damages could have a negative effect on the Company’s business, results of operations and financial condition.
In addition, the various products manufactured and sold by the Company must comply with relevant health, safety and environmental laws, for example those designed to protect customers and downstream workers or communities, and those covering substances and preparations, in the jurisdictions in which they operate. Although the Company seeks to ensure that its products meet the highest quality standards, increasingly stringent and complex laws and regulations, new scientific discoveries, delivery of defective products or the obligation to notify or provide regulatory authorities or others with required information (such as under the European Union Regulation known as “REACH”, which addresses the production and use of chemical substances) may force the Company to adapt, redesign, redevelop, recertify and/or eliminate its products from the market thereby incurring significant additional costs. Seizures of defective products may be pronounced, and the Company may incur administrative, civil or criminal liability. Any problems in this respect may also have a significant adverse effect on the reputation of the Company and lead to a decline in demand for its products and services.
Despite compliance with all applicable laws and regulations, the Company’s reputation and the demand for its products may also be affected by the public perception of environmental and societal impacts of the Company’s products in operation (such as the emission of greenhouse gases or noise) and of the impacts of the Company and its supply chain industrial operations on local communities, on the environment and on air and water quality.
The Company cannot predict at this time the impact on it as a result of environmental, human rights, health and safety matters, and may be adversely affected by them in the manner described above. For further information on sustainability-related risks, see “– 1.2. Non-Financial Information – 1.2.1 The Company’s Approach to Sustainability”.
24 Airbus / Registration Document 2021


Risk Factors / 25 Airbus / Registration Document 2021


Chapter 26 Airbus / Registration Document 2021


1. 
Information on the Company’s Activities 1.1 Presentation of the Company 28 1.1.1 Overview 28 1.1.2 Airbus (Commercial Aircraft) 32 1.1.3 Helicopters 41 1.1.4 Defence and Space 45 1.1.5 Investments 52 1.1.6 Insurance 52 1.1.7 Legal and Arbitration Proceedings 52 1.2 Non-Financial Information 55 1.2.1 The Company’s Approach to Sustainability 55 1.2.2 Lead the Journey Towards Clean Aerospace 60 1.2.3 Build Our Business on the Foundation of Safety and Quality 72 1.2.4 Respect Human Rights and Foster Inclusion 80 1.2.5 Exemplify Business Integrity 92 1.2.6 Responsible Supply Chain 95 1.2.7 Community Impact 102 1.2.8 ESG Data Board 104 1.2.9 Deployment of Vigilance Plan (Devoir de Vigilance) 111 1.2.10 EU Taxonomy Disclosure 112 1.2.11 TCFD Correspondence Table 113 1.2.12 GRI Index 114 1.2.13 SASB Correspondence Table 118 1.3 Other Corporate Activities 119 1.4 Recent Developments 127 27 Airbus / Registration Document 2021


1. Information on the Company’s Activities / 1.1 Presentation of the Company 28 Airbus / Registration Document 2021 1.1 Presentation of the Company 1.1.1 Overview. 
Due to the nature of the markets in which the Company operates and the confidential nature of its businesses, any statements with respect to the Company’s competitive position set out in paragraphs 1.1.1 through 1.1.5 below have been based on the Company’s internal information sources, unless another source has been specified below.
Airbus pioneers sustainable aerospace for a safe and united world. 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 defence and security and one of the world’s leading space businesses. In helicopters, the Company provides the most efficient civil and military rotorcraft solutions and services worldwide.
Strategy 2020 was an unprecedented year for the aviation industry across the globe, and 2021 became a turning point setting the direction for both a managed recovery and the longer term transformation of aviation. The COVID-19 outbreak demonstrated how severe and unpredictable events can impact a global business like Airbus. It also demonstrated that when industry, customers and governments work together, it is possible both to effectively manage what can be considered as the deepest crisis in the history of aviation, and progressively learn how to better prepare for the overall direction of travel in the future. Another key shift happening in parallel has been acceleration in the demand for sustainability and zero emissions targets. Addressing this challenge is, in effect, key to ensuring airlines’ continued license to operate. In this new environment, the Airbus purpose “We pioneer sustainable aerospace for a safe and united world” is the Company’s guiding star. The Airbus strategy is designed to set out the strategic priorities to enable the Company to deliver on this purpose.
The strategic priorities focus on the geopolitical situation, sovereignty, resilience and sustainability and are underpinned by the leadership role that the Company expects to take and which will be so important to its success: 1. continue to grow Airbus as an aerospace and defence leader; 2. leverage its roots to pursue global reach through local actions; 3. continue to invest in the future in an evolving and highly competitive environment; 4. lead the transformation of the aerospace industry while meeting the highest environmental, social and governance standards.
1. Continue to grow Airbus as an aerospace and defence leader. 
Leadership today is not a guarantee for leadership tomorrow. The Company believes that its ability to win in the future will be earned through continuous innovation, both in and around its current portfolio as well as when preparing the future generation of products and related services. All activities must be executed to the highest quality and safety standards possible.
1.1 Keep current portfolio young and competitive. 
The Company’s financial success is strongly linked to capitalising on the current commercial aircraft portfolio through incremental improvements. Airbus estimates that all current products have a substantial upside leading to exceptional longevity. This has been demonstrated by the New Engine Option (NEO) versions of A320 and A330 and stretch versions such as the A321XLR, but also in smaller incremental improvements on every product. The A330neo and the A350 XWB both deliver high levels of fuel efficiency (25% fuel consumption saving compared to previous generation aircraft), accelerated pilot on boarding (all widebody aircraft benefit from a common type rating making pilot training shorter, smoother and lower cost), and comfort through the exclusive airspace cabin, setting a modern benchmark in passenger comfort and wellbeing. Airbus aircraft are also well suited to serve freighter and VIP markets and are proven to be competitive in selected military niches. The decision to launch the A350 Freighter version in 2021 is a typical example, setting a new standard for airfreight efficiency. With the same logic, the helicopter portfolio is expanding through military versions of commercially successful products. In the military field, Eurofighter has a performance today beyond customer’s initial targets through intelligent upgrades, and remains a very strong competitor for export markets.
1.2 Pioneering for the next generation. 
In preparing the next generation of aircraft, the requirement for improved sustainability will be the catalyst that allows aviation to continue to meet its larger purpose of uniting the world. The quest for zero emissions air travel will fundamentally change aerospace. Not since the introduction of the jet engine has the industry faced such a challenge, in particular around new energy sources. However, new certification challenges, new materials, new designs, new industrial processes and new business models will also be assessed, which will provide sources of opportunity. In short, the Company aims to set the standards and mature the technologies of sustainable aviation for the benefit of the environment and society at large, delivering products that are attractive and efficient for our customers while remaining viable and feasible for Airbus.


1. Information on the Company’s Activities / 1
1.1 Presentation of the Company 29 Airbus / Registration Document 2021 1.3 Build advantages through a broad span within aerospace and defence. 
The resilience provided by a broad portfolio of products and services is essential for Airbus today and will continue to be in the future. Most aerospace companies nurture a substantial defence and space element in their portfolio to gain synergies and increase stability. This is also true for Airbus, with commercial aircraft, helicopters, defence, space, and security activities all part of the portfolio. Hence governmental, military and commercial business, products and services, fixed wing and rotary platforms, satellites and launchers, both self- and customer-funded, are all elements which balance market variations, provide synergies, and help to smooth investment cycles. Additionally, as digital design, manufacturing & services require similar capabilities across aerospace segments, owning a broad portfolio delivers flexibility in resource allocation and the reuse of investments in core capabilities. The COVID-19 crisis demonstrated the importance of having strong and complementary helicopter, defence, space and security businesses alongside commercial aviation within the portfolio, enhancing the resilience of the overall group.
1.4 Expand as a leader towards new territories. 
Urban air mobility (“UAM”) is at the forefront of a revolution to make urban mobility three dimensional in the future. Capturing growth in new vertical take-off and landing (“VTOL”) and UAM markets, for both platforms and services, is a major driver for the Company’s helicopter strategy. Airbus launched its NextGen eVTOL in 2021 for this purpose. Shaping air and space power which integrates aircraft, unmanned systems and space assets with a cloud structure for command and control, will revolutionise the performance of Airbus’ defence customers in future and aims to secure the Company’s long-term presence in defence markets. In commercial aviation, the quest for climate neutral solutions will play out globally and will drive demand for our products and services.
2. Leverage its roots to pursue global reach through local actions. 
Over the past 50 years, Airbus has grown from being a cooperation of national aerospace companies, in four European countries, to a global leader in commercial aerospace with a strong foothold in helicopters, defence, space and security. The ambition of European industrialists to work together towards a common goal of creating one leading player in commercial aerospace was decisive to the success story of the Company. Then, as today, that European vision saw the UK as being integral to its global success. No aerospace and defence company is more culturally and humanly diverse than Airbus. Approximately 140 nationalities make up the Company’s workforce and over 20 languages are spoken at Airbus, reflecting the diversity of its employees and customer base. This is a key strength of the Company in addressing global markets. Airbus has built on its strong European heritage to become truly international, operating across more than 180 locations. The Company has invested in and grown aircraft and helicopter final assembly lines across Asia, Europe and the Americas.
3. Continue to invest in the future in an evolving and highly competitive environment. 
The COVID-19 pandemic has required Airbus to face the deepest crisis in the Company’s history, focusing on cash containment to ensure survival. The right combination of growth, profitability and resilience is vital to the Company’s long-term competitiveness.
Aerospace remains a major backbone of the global economy and a vital service to people and businesses. Airbus is committed to playing its role in ensuring that its sectors consistently deliver on their vital role in the global economy by building resilience through having sufficient funds available to withstand the shocks; through close cooperation with stakeholders to ensure the overall travel value chain survives; through seamless coordination along the supply chain to detect issues rapidly; and through reinforcement of the balance sheet to continue investing in future competitiveness.
The Company believes that the way to remain attractive to investors, employees and society at large is to be at the forefront of innovation and to be a leader in the global market. This requires discipline on both revenues and the cost base, throughout all Airbus businesses, to gain sufficient volume and profitability to continuously drive the industry forward. Having successfully increased revenue and profit in the years before the COVID-19 crisis, continuous improvement is essential to further support Airbus’ resilience and prepare for future investments. As the Company delivers on its strategy as a leader with European roots and global reach, the Company is uniquely positioned to pioneer the industry, deepen relations with its customers, expand its role in defence, space and helicopters, while delivering shareholder value in line with market expectations.
4. Lead the transformation of the aerospace industry while meeting the highest environmental, social and governance standards. 
Aviation’s licence to grow and operate in the future is inherently linked to sustainability. Improving the environmental impact of our day-to-day lives is at the top of agendas throughout the world. While some argue for limiting mobility, the Company believes the solution should not hinder people’s ability to connect and unite across the world. Making the world a smaller and more transparent place to live makes it safer and more rewarding. The ability to discover, learn, share and remain safe are basic human needs and a guiding star for the Company. Air travel brings prosperity through the connections it makes. One in ten jobs around the world is in the travel and tourism industry, and air travel routes are the arteries of this system. Sufficient prosperity will be required to deliver the climate neutral transformation of industry that society demands. Hence, the purpose of the Company is to pioneer sustainable aerospace for a safe and united world.
The Company does not, however, operate in a vacuum. Social sustainability and good governance are integral elements in managing the Company’s vision for a sustainable future. Airbus’ business is deeply connected with environmental, social, and governance (“ESG”) objectives through various international standards, frameworks and initiatives.
Airbus is also a global leader in the defence sector. Defence is a crucial component of security, and security is the precondition for a responsible and sustainable world. In this endeavour, Airbus is committed to sustainable and responsible business practices,


1. Information on the Company’s Activities / 1.1 Presentation of the Company 30 Airbus / Registration Document 2021 and maintaining the strictest legal and highest ethical standards in full compliance with international laws and European and national export control regulations. Our defence capabilities provide countries with the means to protect their citizens, democratic values and vital infrastructure, which is of incalculable societal value.
4.1 Lead the journey towards clean aerospace. 
Airbus and the industry at large must ultimately determine ways to eliminate the impact of its activities on the climate. This must be achieved by the current generation. This is a clear expectation of the flying public and society at large. Working with international aviation organisations, Airbus is striving to lead the industry on a strong path to the lowest climate impact solutions as part of the industry’s commitment to the Paris Agreement.
A major focus of the Company’s sustainability strategy is reducing the CO2 emissions of its aircraft, as well as its industrial environmental footprint at its sites worldwide and throughout the supply chain. To this end, the Company is contributing to meeting key industry-wide environmental performance targets. As well as investing in and developing viable products that are attractive and efficient for its customers by maturing the technologies related to sustainable aviation fuels, industrial systems, aircraft architectures based on next generation engines, future wing and fuselage design and automation, the Company also remains focused on maturing hydrogen ecosystems and transport and refuelling infrastructure to deliver on its ambition to bring the world’s first zero-emission commercial aircraft to market by 2035, known as ZEROe.
4.2 Build our business on the foundation of safety and quality. 
Safety cannot be compromised. That’s why the number one priority for the Company is to protect and safeguard its people, suppliers, communities, customers and assets from health and safety risks arising from the Company’s activities. This is why fostering a safety culture which goes beyond regulatory compliance in product safety and quality, and championing a “zero-harm” mind-set in which the Company takes responsibility for itself and others, is a core commitment of the Company’s sustainability strategy. The Company focuses on developing rigorous safety management guidelines to ensure its long-term competitiveness.
4.3 Respect human rights and foster inclusion. 
The Company’s respect for human rights is an essential part of responsible business conduct in its business activities and throughout the value chain.
Airbus believes that everyone who works either for or with the Company, both within its business operations and the supply chain, contributes to its continued innovation, creativity, and business success. Therefore, it’s imperative that the Company fosters empowerment, collaborative working, inclusiveness and diversity to enable a workplace to which people can bring their best selves. The Company ensures that its employees have access to a wealth of education and employee mobility opportunities to grow their skills because the Company strongly believes a more educated workforce is a more empowered workforce.
4.4 Exemplify business integrity. 
Business integrity is non-negotiable. As the Company’s operations reach across more than 100 countries worldwide, it has a clear obligation to comply with laws and regulations wherever the Company operates. The Company conducts its business ethically, based on its values, and not only in compliance with laws and regulations. Furthermore, the Company strives for a culture of integrity in its people, partners and suppliers. In an effort to improve accountability, the Company is strengthening its current compliance programmes with the intention of becoming a benchmark in this area. To this end, the Company has established a dedicated Ethics & Compliance programme and organisation, ensuring that ethical and compliant behaviour is deeply embedded throughout the Company.
Organisation of the Company’s Businesses. 
The Company has organised its businesses into the following three operating segments: (i) Airbus, (ii) Helicopters and (iii) Defence and Space. The chart set out in “– General Description of the Company and its Share Capital – 3.3.6 Simplified Group Structure Chart” illustrates the allocation of activities.
Airbus (Commercial Aircraft)
Airbus is one of the world’s leading aircraft manufacturers of passenger and freighter aircraft and related services.
In 2021, Airbus delivered 611 aircraft (compared to 566 deliveries in 2020) and received 771 gross orders (compared to 383 gross orders in 2020). After accounting for cancellations, net order intake for 2021 was 507 aircraft (compared to 268 aircraft in 2020). As of 31 December 2021, Airbus’s backlog of commercial orders was 7,082 aircraft (compared to 7,184 aircraft in 2020).
In 2021, Airbus (Commercial Aircraft) recorded total revenues of € 36.16 billion – representing 69% of the Company’s revenues. See “– 1.1.2 Airbus”.
Helicopters. 
Airbus Helicopters is a global leader in the civil and military rotorcraft market, offering one of the most complete and modern ranges of helicopters and related services. This product range currently includes light single-engine, light twin-engine, medium and medium-heavy rotorcraft, which are adaptable to all kinds of mission types based on customer needs.
Airbus Helicopters delivered 338 helicopters in 2021 (compared to 300 in 2020) and received 414 net orders in 2021 (compared to 268 net orders in 2020). Order intake amounted to € 8.55 billion (2020: € 5.52 billion). Military contracts accounted for 60% of this order volume, with civil sales representing the remaining 40%. At the end of 2021, Airbus Helicopters order book stood at 739 helicopters (compared to 663 helicopters in 2020).
In 2021, Airbus Helicopters recorded total revenues of € 6.51 billion, representing 12% of the Company’s revenues. See “– 1.1.3 Helicopters”.


1. Information on the Company’s Activities / 1
1.1 Presentation of the Company 31 Airbus / Registration Document 2021. 
Summary Financial and Operating Data. 
The following tables provide summary financial and operating data for the Company for the past three years. See “– Management’s Discussion and Analysis of Financial Condition and Results of Operations – 2.1 Operating and Financial Review”.
REVENUE BY BUSINESS SEGMENT (In € million) 2021 2020 2019. 
Airbus 36,164 34,250 54,775. 
Airbus Helicopters 6,509 6,251 6,007. 
Airbus Defence and Space 10,186 10,446 10,907. 
Subtotal segmental revenue 52,859 50,947 71,689. 
Eliminations (710) (1,035) (1,211)
Total 52,149 49,912 70,478. 
ORDER INTAKE BY BUSINESS SEGMENT 2021 2020 2019 (In € billion) (In percentage)(1) (In € billion) (In percentage)(1) (In € billion) (In percentage)(1)
Airbus 40.0 64.3% 16.1 48.1% 65.8 80.7%
Airbus Helicopters 8.6 13.7% 5.5 16.4% 7.2 8.8%
Airbus Defence and Space 13.7 22.0% 11.9 35.5% 8.5 10.5%
Subtotal segmental order intake 62.2 100% 33.5 100% 81.5 100%
Eliminations (0.2) (0.2) (0.3)
Total 62.0 33.3 81.2 (1) Before “Eliminations”.
ORDER BACKLOG BY BUSINESS SEGMENT 31 December 2021 2020 2019 (In € billion) (In percentage)(1) (In € billion) (In percentage)(1) (In € billion) (In percentage)(1)
Airbus 345.1 86.4% 324.7 86.8% 424.1 89.7%
Airbus Helicopters 18.0 4.5% 15.8 4.2% 16.6 3.5%
Airbus Defence and Space 36.1 9.1% 33.5 9.0% 32.3 6.8%
Subtotal segmental order backlog 399.2 100% 374.0 100% 473.0 100%
Eliminations (0.8) (0.9) (1.5)
Total 398.4 373.1 471.5 (1) Before “Eliminations”.
Defence and Space. 
Airbus Defence and Space is Europe’s number one defence and space enterprise, one of the world’s leading space companies and among the top 10 global defence enterprises. Defence and Space puts a strong focus on core businesses: space, military aircraft, missiles and related systems and services.
Airbus Defence and Space is organised in four Programme Lines: Military Aircraft; Space Systems; Connected Intelligence and Unmanned Aerial Systems. Airbus Defence and Space develops, produces and maintains cutting-edge products, systems and services, enabling governments, institutions and commercial customers to protect people and resources.
In 2021, Airbus Defence and Space recorded total revenues of € 10.19 billion, representing 20% of the Company’s revenues. See “– 1.1.4 Defence and Space”.


1. Information on the Company’s Activities / 1.1 Presentation of the Company 32 Airbus / Registration Document 2021 1.1.2 Airbus (Commercial Aircraft)
Airbus is one of the world’s leading aircraft manufacturers of passenger and freighter aircraft and related services. In order to help shape the future of air transportation, Airbus seeks innovative technological solutions and the most efficient sourcing and manufacturing possible – so airlines can grow sustainably and people can connect. Airbus’ comprehensive product line comprises successful families of jetliners ranging in capacity from 100 to more than 600 seats: the A220 Family; the A320 Family, which is civil aviation’s best-selling product line; the A330 Family, including the advanced A330neo; the latest generation widebody A350 XWB; and the double-deck A380. Across its aircraft families Airbus’ solutions ensure that aircraft share high commonality in airframes, on-board systems, cockpits and handling characteristics. This significantly reduces operating costs for airlines. See “– 1.1.1 Overview” for an introduction to Airbus.
Airbus’ global presence includes activity in Europe (France, Germany, Spain and the UK), as well as in Canada, and more globally at fully-owned subsidiaries in the US, China, Japan, India and in the Middle East. Airbus also has spares centres as well as engineering and training centres worldwide. There are also hubs and field service stations around the world. Airbus also relies on industrial co-operation and partnerships with major companies and an extensive network of suppliers around the world.
Strategy. 
Airbus’ purpose “We pioneer sustainable aerospace for a safe and united world” and the key elements of the strategy will support Airbus to focus its efforts and make a sustainable contribution to the future.
Airbus aims to keep its current commercial aircraft portfolio young and competitive through incremental improvements, while at the same time pioneering for the next generation. In preparing the succession, the quest for sustainability will be the game changer. Airbus targets to set the standards towards the lowest climate impact solutions and mature the technologies of sustainable aviation. Sustainable Aviation Fuel (“SAF”) will play a key role in reducing the environmental footprint of the aviation industry. Hydrogen is part of the solution. In September 2020, the Company revealed three concepts for the world’s first zero emission commercial aircraft and in September 2021 Airbus hosted an aviation environmental summit bringing together operators, fiinaciers, regulators and non-governmental organisations.
Aerospace is a major backbone of the global economy and a vital service to people and businesses. Airbus will continue to invest in its future in an evolving and highly competitive environment through the right combination of growth, profitability and resilience. Airbus intends to further strengthen the industrial set-up and industrial flow. The further transformation of the industrial value chain will ultimately improve quality, competitiveness, agility and sustainability of the entire ecosystem. As seen in the COVID-19 crisis, it is vital to have strong and complementary businesses alongside commercial aviation within its portfolio.
For further information, see “– 1.1.1 Overview – Strategy” and “– 1.2 Non-Financial Information – 1.2.2 Lead the Journey Towards Clean Aerospace”.
Market. 
Market Drivers. 
In the long-term the main factors affecting the commercial aircraft market include passenger demand for air travel, airline pricing policies and resulting yields, cargo activity, economic growth cycles, evolution of the cost of energy, national and international regulation, the rate of replacement and obsolescence of existing fleets, the availability of aircraft financing sources and market evolutionary factors. The performance, competitive posture and strategy of aircraft manufacturers, airlines, cargo operators and leasing companies as well as wars, political unrest, pandemics and extraordinary events may also precipitate changes in demand and lead to short-term market imbalances. For further information, see “– Risk Factors – Business-Related Risks – Commercial Aircraft and Helicopter Market Factors”.
After the COVID-19 pandemic hit in 2020, 2021 will be viewed in retrospect as a year of recovery. The year was characterised by the increasing pace of vaccine rollout but equally the mutation of the virus through many variants, most notably Delta and Omicron. Whilst the vaccine coverage of different populations provided the greatest safeguards to allow a reopening of air travel, the application of different sovereign policies – from controlled opening through mutual recognition of vaccine certificates to zeroCOVID policies drove a volatility of air traffic which moderated a strong latent desire of travelers to resume flying. Generally, the recovery was dominated by strong domestic markets (e.g. China and the US) followed by strong regional markets, e.g. Europe over summer as a consequence of the EU vaccination passport. For the same reasons, international travel and most. 
Relationship between Airbus SE and the Company. 
Airbus SE itself does not engage in the core aerospace, defence or space business of the Company but coordinates related businesses, sets and controls objectives and approves major decisions for the Company. As the parent company, Airbus SE conducts activities which are essential to the Company’s activities and which are an integral part of the overall management of the Company. In particular, finance activities pursued by Airbus SE are in support of the business activities and strategy of the Company. In connection therewith, Airbus SE provides or procures the provision of services to the subsidiaries of the Company. General management service agreements have been put in place with the subsidiaries and services are invoiced on a cost plus basis.
For management purposes, Airbus SE acts through its Board of Directors, Executive Committee, and Chief Executive Officer in accordance with its corporate rules and procedures as described below under “– Corporate Governance – 4.1 Management and Control”.
Within the framework defined by Airbus SE, Airbus, each Division, Business Unit and subsidiary is vested with full entrepreneurial responsibility.


1. Information on the Company’s Activities / 1
1.1 Presentation of the Company 33 Airbus / Registration Document 2021 notably trans-Pacific, Europe-Asia and intra-Asia markets have remained at low levels of activity. Overall, passenger air traffic in 2021 – measured in RPKs – grew 18% versus 2020 however remained almost 60% below 2019 levels according to IATA.
Freight traffic has remained robust and yields have been historically high. This has been driven by strong growth in e-commerce, increases in maritime containerised shipping rates and a shortage of belly freight capacity due to large numbers of widebody aircraft being stored.
Having adapted its production rates in 2020 in response to the severity and speed of the industry downturn, Airbus was able in 2021 to stabilise widebody production and start to increase A320 Family production, placing unallocated aircraft and delivering part of the accumulated inventory. Over the full year Airbus delivered 611 new aircraft to 88 customers and achieved a net order intake of 507 aircraft. At the end of 2021 Airbus maintained a firm order backlog of 7,082 aircraft, over 80% of which are for the A320 family.
Competitive market-based financing for new aircraft deliveries has remained available.
The recovery is likely to follow a similar pattern to previous recoveries: many stored aircraft will return to service, complementing newly-delivered aircraft to allow recovery of flight frequencies; load factors and aircraft utilisation will improve and then yields. The balance between these is dependent on individual actions in a competitive marketplace for air transport services. Provided that the consequences of the emergence of further COVID variants can be limited by increased vaccination coverage and immunity, the Company continues to expect the commercial aircraft market to return to pre-COVID levels between 2023 and 2025 and that the pandemic has not structurally changed the long-term market for commercial aircraft.
Overall growth. The long-term market for passenger aircraft depends primarily on passenger demand for air travel, which is itself primarily driven by economic or GDP growth, trade, fare levels and demographic growth. Measured in revenue passenger kilometres, air travel increased in every year from 1967 to 2000, except for 1991 due to the Gulf War, resulting in an average annual growth rate of 7.9% for the period. Demand for air transportation also proved resilient in the years following 2001, when successive shocks, including 9/11 and SARS in Asia, dampened demand.
At the end of 2008 and in 2009, the financial crisis and global economic difficulties witnessed resulted in only the third period of negative traffic growth during the jet age, and a cyclical downturn for airlines in terms of traffic (both passenger and cargo), yields and profitability. Despite these perturbations, the market recovered, driven by the underlying demand for air transport. After 2009 until the current crisis, the industry benefited from a prolonged period of stability which enabled airlines to collectively deliver profitability at historically high levels.
The fundamental drivers behind the need for air transport remain unchanged, as a means for enabling physical links between peoples and distribution of goods at a global scale. However it is an activity which must be conducted in a sustainable manner, and Airbus is committed to pioneering sustainable aviation. As more governments pass legislation to drive towards net-zero emissions of carbon dioxide, aviation will play its part. Decarbonisation is likely to be encouraged by regulatory measures including incentives and taxation to varied extents in different regions. This may increase the differentiation between the costs of operation of more or less fuel-efficient aircraft. There is speculation as to whether increased ticket prices might dampen future growth of passenger demand. There is no historical precedent for this, although past increases in fuel prices have been largely passed through to consumers. Airbus is focused on providing more fuel efficient aircraft for fleet replacement and growth.
Through its analysis Airbus continues to believe in the long-term growth potential of our industry, with a continuing drive to the sustainable operation of commercial aircraft aimed at meeting the needs of both the environment and air passengers in the coming years.
Growth and Replacement. Air transport is a global industry and demand for aircraft is subject to differences in the performance of national and regional economies as well as the evolution of energy costs. However aircraft are liquid assets that can be moved from one region to another and this provides a degree of mitigation to fluctuation of demand.
At the end of 2021, Airbus’ backlog was 7,082 aircraft, a reduction of 102 versus the prior year. Close proximity and attentiveness to customer needs has enabled careful management of this backlog to mitigate the effect on production rates from the pandemic, and third-party financiers have continued to support the delivery of new, more environmentally-efficient aircraft.
Airline network development: “hub” and “point-to-point” networks. Following deregulation, major airlines have sought to tailor their route networks and fleets to continuing changes in customer demand. Accordingly, where origin and destination demand prove sufficiently strong, airlines often employ direct, or “point-to-point” route services. However, where demand between two destinations proves insufficient, airlines have developed highly efficient “hub and spoke” systems, which provide passengers with access to a far greater number of air travel destinations through one or more flight connections.
The chosen system of route networks in turn affects aircraft demand, as hubs permit fleet standardisation around both smaller aircraft types for the short, high frequency and lower density routes that feed the hubs and larger aircraft types for the longer and higher density routes between hubs, themselves large point-to-point markets. As deregulation has led airlines to diversify their route network strategies, it has at the same time therefore encouraged the development of a wider range of aircraft in order to implement such strategies.
Airbus, like others in the industry, believes that route networks will continue to grow through expansion of capacity on existing routes and through the introduction of new routes. These new route markets are expected to be well served by the Airbus product offering, such as the A350 XWB and A330neo. Airbus believes that it is well positioned to meet current and future market requirements given its complete family of products.
Once the air transport industry rebuilds after the COVID-19 crisis, airlines will review their positioning and business models in the frame of restructuring their operations. Airbus expects that existing networks will in the most part be continued, but airlines will also have the opportunity to develop their networks differently having undergone a forced, temporary downsizing. The availability from 2023 onwards of new-generation longerrange single-aisle aircraft such as the A321XLR will provide greater optionality to airlines.
Alliances. The development of world airline alliances has reinforced the pattern of airline network development described above. According to data from Cirium, a UK-based aviation


1. Information on the Company’s Activities / 1.1 Presentation of the Company 34 Airbus / Registration Document 2021 industry consultancy, one-third of the world’s jetliner seats being flown today are operated by just 15 airlines. In the 1990s, the major airlines began to enter into alliances that gave each alliance member access to the other alliance members’ hubs and routings, allowing airlines to concentrate their hub investments whilst at the same time extending their product offering and market access.
Market Structure and Competition. 
Market segments.
Airbus competes in each of the four principal market segments for aircraft with more than 100 seats.
“Small” aircraft, such as the A220 and A320 Families, having 100 to more than 200 seats, and which are used principally for shortrange and medium-range routes of up to 3,000 nautical miles.
“Medium” aircraft typically offer up to 300 seats on routes of up to 5,000 nautical miles. This includes long range versions of the A321, such as A321XLR, as well as the A330 Family.
“Large” aircraft, such as the A350XWB, are widebody twinaisle which seat more than 350 passengers on routes of up to 10,000 nautical miles.
Freight aircraft, which form a fourth, related segment, are a combination of new build and converted ex-passenger aircraft. Converted aircraft are prevalent in the expanding e-commerce market which typically sees relatively low aircraft utilisation. This can provide an economical “second life” for in-service aircraft from the A320 and A330 families. See “– Airbus Canada, Regional Aircraft, Aerostructures, Seats, Aircraft Conversion – EFW”. In 2021, Airbus launched a new A350F freighter model in response to customer demand. The addition of a freighter variant is also expected to contribute towards greater resilience of the A350 Programme to future market fluctuations.
Airbus also competes in the corporate, VIP business jet market with the ACJ. The ACJ portfolio is composed of the ACJA319neo, the ACJA320neo, the ACJA330neo and the ACJA350. To complete the ACJ family, Airbus launched, in October 2020, the ACJ TwoTwenty. The first aircraft has been handed over to a competition centre and entry into service is targeted for 2023.
Geographic differences. The high proportion of single-aisle aircraft in use in both North America and Europe reflects the predominance of domestic short-range and medium-range flights, both from the expansion of the low-cost carrier and particularly in North America due to the development of hubs following deregulation. In comparison with North America and Europe, the Asia-Pacific region uses a greater proportion of twinaisle aircraft, as populations tend to be more concentrated in fewer large urban centres. The tendency towards the use of twinaisle aircraft is also reinforced by the fact that many of the region’s major airports limit the number of flights, due to environmental concerns or the infrastructure constraints that limit the ability to increase flight frequency. These constraints necessitate higher average aircraft seating capacity per flight. However, Airbus believes that demand for single-aisle aircraft in Asia will grow over the next 20 years, particularly as domestic markets in China and India and low-cost carriers continue to develop in the region.
Competition. Airbus has been operating in a competitive duopoly since Lockheed’s withdrawal from the market in 1984 and Boeing’s acquisition of McDonnell Douglas in 1997. As a result, the bulk of the market for passenger aircraft of more than 150 seats have been manufactured by either Airbus or Boeing.
Nevertheless, the high technology and high value nature of the business makes aircraft manufacturing an attractive industry in which to participate, and besides Boeing, Airbus faces international competitors. Embraer, who originally was primarily focused on the regional market, has also focused on the development of larger airplanes. Additionally, other competitors from Russia, Japan and China will enter the 70 to 150 seat aircraft market over the next few years, and today some studying larger types. China is progressing with the development of the COMAC C919.
In February 2020, Airbus SE, the Government of Québec and Bombardier Inc. agreed upon a new ownership structure for the A220 programme, whereby Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to Airbus and the Government of Québec. This agreement brings the shareholdings in Airbus Canada, responsible for the A220, to 75% for Airbus and 25% for the Government of Québec respectively. The Government’s stake is redeemable by Airbus in 2026 – three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec.
The partnership brings together two complementary product lines, the A220-100 and A220-300, targeting the 100-150 seat market segment with an addressable market of at least 7,000 new aircraft over the next 20 years in the segments in which they compete.
Airbus Canada benefits from Airbus’ global reach, scale, procurement organisation and expertise in selling, marketing and producing the A220. Significant production efficiencies are anticipated by leveraging Airbus’ production ramp-up expertise. In August 2019, Airbus started manufacturing the A220 also in Airbus’ facility in Mobile, delivering its first US-assembled A220300 aircraft in October 2020.
Customers. 
As of 31 December 2021, Airbus had 434 customers and a total of 20,883 aircraft had been ordered, of which 13,801 aircraft had been delivered to operators worldwide. The net backlog stood at 7,082 aircraft.
The table below shows Airbus’ largest commitments in terms of total gross firm orders by customer for the year 2021 (minimum 30 units).
Customers Firm orders(1)
AIR LEASE CORPORATION 116. 
WIZZ AIR 102. 
FRONTIER AIRLINES 91. 
UNITED AIRLINES 70. 
JET2 PLC 57. 
DELTA AIR LINES 55. 
VOLARIS 41. 
AVIATION CAPITAL GROUP 40. 
AVOLON 30 (1) Options are not included.


1. Information on the Company’s Activities / 1
1.1 Presentation of the Company 35 Airbus / Registration Document 2021. 
Products. 
The Family Concept – Commonality across the Fleet. 
Airbus’ aircraft families promote fleet commonality. This philosophy takes a central aircraft and tailors it to create derivatives to meet the needs of specific market segments. For example, both variants of the A220 have a significant level of common parts and can be operated by a single pilot pool. Alternatively, the A320, A330, A350 and A380 all share the same cockpit philosophy, fly-by-wire controls and handling characteristics, enabling pilots to transfer among these aircraft within the Airbus family with minimal additional training. Cross-crew qualification across families of aircraft provides airlines with significant operational flexibility. In addition, the emphasis on fleet commonality permits aircraft operators to realise significant cost savings in crew training, spare parts, maintenance and aircraft scheduling. The extent of cockpit commonality within and across families of aircraft is a unique feature of Airbus that, in management’s opinion, constitutes a sustainable competitive advantage.
In addition, technological innovation has been at the core of Airbus’ strategy since its creation. Each product in the Airbus family is intended to set new standards in areas crucial to airlines’ success, such as cabin comfort, cargo capacity performance, economic performance, environmental impact and operational commonality. Airbus innovations often provide distinct competitive advantages, with many becoming standard in the aircraft industry.
A220 Family. Complementing the A320 Family, the A220-100 and A220-300 models cover the segment between 100 and 150 seats and offer a highly comfortable five-abreast cabin. With the most advanced aerodynamics, carbon fiber reinforced polymer (CFRP) materials, high-bypass Pratt & Whitney PW1500G engines and fly-by-wire controls, the A220 delivers 25% lower fuel burn per seat compared with previous generation aircraft. In addition to the airliner versions, 2020 saw the launch of the ACJ Two Twenty business jet, based on the A220-100, combining an intercontinental capability of over 12 hours flight duration with unmatched personal space and comfort. Airbus manufactures, markets and supports A220 aircraft under the Airbus Canada Limited Partnership agreement (q.v.) finalised in 2018. In 2020, Airbus delivered the first US-assembled A220-300 aircraft from Mobile, Alabama.
Primary competitors to the A220 Family are the Embraer EMB190-E2 and EMB195-E2 and the Boeing 737 Max 7.
During 2021, Airbus received 64 gross orders for the A220 Family of aircraft and 38 net orders, with 50 aircraft having been delivered.
A320 Family. With more than 16,000 aircraft sold, and over 10,000 delivered by the end of 2021, the A320 Family of singleaisle aircraft includes the A319 and A321 derivatives, as well as the ACJ corporate jet. Each aircraft in the A320 Family shares the same systems, cockpit, operating procedures and crosssection.
At 3.95 metres diameter, the A320 Family has the widest fuselage cross-section of any competing single-aisle aircraft. This provides a roomy six-abreast passenger cabin, a high comfort level and a spacious under floor cargo volume. The A320 Family incorporates digital fly-by-wire controls, an ergonomic cockpit and a modern structural material selection. The primary competitor is the Boeing 737 series.
Airbus continues to invest in improvements across the product line, as exemplified by the development of the A320neo family, including the A319neo, A320neo, A321neo and ACJ variants of the A319neo & A320neo. The A320neo Family incorporate many innovations including latest generation engines and cabin improvements which together deliver up to 20% in fuel savings compared with earlier A320 family aircraft. The A320neo with Pratt & Whitney engines was the first variant to receive Type Certification, from EASA and FAA, in November 2015, followed by the A320neo with CFM engines in May 2016.
The A321neo with Pratt & Whitney engines received Joint Type Certification in December 2016 and with CFM engines in March 2017. Type Certification for the A319neo with CFM engines was achieved in December 2018 with the Pratt & Whitney engine variant the following year.
The A320neo Family versions have over 95% airframe commonality with the A320ceo (current engine option) versions, enabling them to fit seamlessly into existing A320 Family fleets – a key factor for Airbus customers and operators. All orders for the A318ceo have been met and a full transition to the Neo variants of the other models is nearing completion. Continuing support for the large in-service A320ceo fleet is undiminished as new opportunities arise, including those in the developing passenger-to-freighter conversion market.
Recognising a market requirement for increasing range capability, the A321neo has been developed to incorporate additional flexibility in cabin configuration with optional design weight and fuel capacity enhancements to produce the 4,000nm range capable A321LR. In 2019, Airbus launched the A321XLR, combining single-aisle efficiency with widebody range and comfort, and resulting in an unmatched product offering for all operator types in the key mid-range market area.
A220 FAMILY TECHNICAL FEATURES. 
Model Entry-into-service Typical seating(1) Range (km) Length (metres) Wingspan (metres)
A220-100 2016 100 to 120 6,390 35.0 35.1. 
A220-300 2016 120 to 150 6,297 38.7 35.1 (1) Two-class layout.


1. Information on the Company’s Activities / 1.1 Presentation of the Company 36 Airbus / Registration Document 2021. 
A320 FAMILY TECHNICAL FEATURES. 
Model Entry-into-service Typical seating(1) Range (km) Length (metres) Wingspan (metres)
A319 1996 110 to 140 6,850 33.8 35.8(2)
A320 1988 140 to 170 6,200 37.6 35.8(2)
A321 1994 170 to 210 5,950 44.5 35.8(2)
A319neo 2019 (ACJ) 120 to 150 6,760 33.8 35.8. 
A320neo 2016 150 to 180 6,390 37.6 35.8. 
A321neo 2017 180 to 220 7,400 44.5 35.8. 
A321XLR 180 to 220 8,700 44.5 35.8 (1) Two-class layout. (2) with sharklets.
Since its launch in December 2010, the A320neo Family has received 7,895 firm orders from more than 100 customers, with a total of 2,076 aircraft delivered to the end of 2021. A320neo deliveries commenced in February 2016 followed by the first A321neo in April 2017 and in August 2019 the first A319neo.
Overall, the A320neo family retains an approximate 60% market share of the backlog against the Boeing 737 MAX Family.
During 2021, Airbus received 661 gross orders for the A320 Family of aircraft and 437 net orders, with 483 aircraft having been delivered.
A330 Family. With 1,839 aircraft sold (of which 353 A330neo) and 1,464 delivered, the A330 Family covers all market segments with one twin-engine aircraft type and is designed to typically carry between 220 and 300 passengers in three-class configurations or over 400 passengers in high-density. The A330 Family offers high levels of passenger comfort as well as large under-floor cargo areas. The A330-200 version is also offered as a military platform and as a cargo variant. A passenger-tofreighter conversion is offered by the ST Engineering / EFW partnership for both the A330-200 & A330-300, meeting the logistical needs of the rapidly growing e-commerce market.
The competitors of the A330 Family are the Boeing 767, 777 and 787 aircraft series.
The latest evolution of the A330 Family is the A330neo (new engine option), comprising the A330-800 and A330-900 versions. These aircraft incorporate latest generation Rolls-Royce Trent 7000 engines and enhanced aerodynamics for improved fuel efficiency. The first flight of the A330-900 took place in October 2017 and both Type Certification and first delivery were achieved in 2018, with TAP Air Portugal taking delivery of its first three A330-900s during the year. Certification and first delivery of the A330-800, to Kuwait Airways, took place during 2020.
A330 FAMILY TECHNICAL FEATURES. 
Model Entry-into-service Typical seating or payload(1) Maximum range (km) Length (metres) Wingspan (metres)
A330-200 1998 210 to 250 13,450 58.8 60.3. 
A330-200F 2010 61 tonnes 7,400 58.8 60.3. 
A330-300 1993 250 to 290 11,750 63.66 60.3. 
A330-800neo 2020 220 to 260 15,094 58.8 64.0. 
A330-900neo 2018 260 to 300 13,334 63.7 64.0 (1) Three-class configuration.
A350 XWB Family. The A350 XWB is a family of wide-body aircraft, designed to typically accommodate between 300 and 410 passengers. The A350 XWB offers enhanced cabin features, Rolls-Royce Trent XWB engines, advanced aerodynamics and systems technology, with more than 50% composite materials in the fuselage structure. The A350 XWB’s main competitors are the Boeing 787 and 777 aircraft series. Initial delivery of the A350-900 variant took place in December 2014 to Qatar Airways.
With the Ultra-Long Range (ULR) version of the A350-900 launched in 2015, the A350 XWB demonstrated its versatility by offering the capability to perform flights of up to 19 hours. The first A350-900 ULR was delivered in September 2018 to Singapore Airlines. Highlighting the type flexibility, Airbus delivered the first A350-900 Domestic to Japan Airlines during 2019.
Partnering the A350-900 is the seven metre longer A350-1000, which was delivered to its first customer, also Qatar Airways, in February 2018. Offering additional capacity for both passengers and cargo without compromising on range, the A350-1000 is the ideal replacement for previous generation aircraft in the 350-400 seat capacity market.
In 2021, Airbus launched the A350F freighter offering three tonnes more payload and more range than a competing 777F. With unbeatable efficiency in terms of fuel burn, CO2 emissions and economics, the A350F is the only freighter capable of meeting the latest ICAO requirements.
At the end of 2021, the total orders for the A350 XWB Family stood at 917 aircraft, including 11 for the A350F. With 461 aircraft having been delivered, including 55 during the year, the backlog stood at 456 aircraft.


1. Information on the Company’s Activities / 1
1.1 Presentation of the Company 37 Airbus / Registration Document 2021. 
A350 XWB FAMILY TECHNICAL FEATURES. 
Model Entry-into-service Typical seating or payload(1) Maximum range (km) Length (metres) Wingspan (metres)
A350-900 2014 300 to 350 15,000 66.8 64.8. 
A350-1000 2018 350 to 410 16,100 73.8 64.8. 
A350F 109 tonnes 8,700 70.8 64.8 (1) Three-class layout.
A380. The double-deck A380 is the world’s largest commercial aircraft flying today. Its cross-section provides flexible and innovative cabin space, tailored to the needs of each airline. The aircraft is capable of carrying over 500 passengers in a comfortable four-class configuration over a range of 8,000nm / 14,800km.
In February 2019, following a review of its operations, Emirates announced the intention to reduce its A380 order book. As a consequence and given the lack of order backlog with other airlines, the final five deliveries of the A380 took place during 2021.
A380 TECHNICAL FEATURES. 
Model Entry-into-service Typical seating(1) Maximum range (km) Length (metres) Wingspan (metres)
A380-800 2007 400 to 550 14,800 72.7 79.8 (1) Four-class layout.
Customer Services. 
Customer Services’ primary mission is to secure safe and efficient aircraft operations thanks to a wide range of customer centric and value-added services.
In 2021, the worldwide economy and air travel industry showed signs of traffic recovery with an average increase in the number of flight cycles of +19% vs 2020 according to IATA, however still -25% below 2019.
Together with the growing aircraft operators’ appetite for solutions to further optimise, digitalise and decarbonise their operations, Airbus aftermarket saw an improvement in the demand for existing and new products and services.
Here are some examples: – Recovering number of Airbus Flight Hour Services (FHS) and cabin upgrades deals; – Extension of the Skywise Digital Alliance with Delta Airlines to GE, offering combined fleet management solutions; – Launch of the Mission+, an integrated solution providing pilots all information they need in one single application on a globecentric display, including electronic navigation charts, mission management, weather depiction as well as performance and operational manuals; – Launch of the Beluga transport services for outsized freight under the umbrella Airbus Transport International (ATI) subsidiary; – MoU signature between Airbus the city of Chengdu and Tarmac Aerosave for the development of the first sustainable aircraft “life cycle” service centre in China. This agreement covers a range of activities from aircraft parking and storage, to maintenance, upgrades, conversions, dismantling and recycling services for various aircraft types.
In 2022, Airbus Customer Services priority will be to keep accompanying and supporting its customers in the safe and efficient return back to service and ramp-up of their activities.
To do so, a range of solutions are available to help reduce customers´ operating costs, increase aircraft availability, and enhance the quality of their operations and passenger experience.
With a worldwide network of 7,000 employees (including subsidiaries) made up of hundreds of technical specialists who provide Airbus’ customers with advice and assistance 24 hours a day, seven days a week; 250 field service representatives positioned in over 100 cities worldwide for on-site assistance to our operators and system of empowered local teams in Asia, Africa, China the Middle East and the US; Airbus targets to remain at the forefront of the industry.
To succeed in this context, Airbus Customer Services will continue working on the transformation plan started before the crisis through optimisation and simplification of our products and further industrialisation of activities to decrease costs and increase efficiency; becoming a relevant contributor to the financial success of Airbus.
Aircraft Leasing Trading and Financing. 
Airbus favours cash sales, and does not envisage customer financing as an area of business development. However, Airbus recognises the commercial need for manufacturers to assist customers in arranging financing of new aircraft purchases, and in certain cases to also participate in the financing, particularly during a time of crisis.
Extension of credit or assumption of exposure is subject to corporate oversight and monitoring, and follows strict standards of discipline and caution. Airbus’ dedicated customer finance team has accumulated decades of expertise in aircraft finance. When Airbus finances a customer, the financed aircraft generally serves as collateral, with the engine manufacturer participating in the financing. These elements assist in reducing the risk borne by Airbus. The difference between the gross exposure resulting from the financing and the collateral value is fully provisioned for


1. Information on the Company’s Activities / 1.1 Presentation of the Company 38 Airbus / Registration Document 2021 (for further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 27: Sales Financing Transactions”). Airbus’ customer financing transactions are designed to facilitate subsequent sell-down of the exposure to the financial markets, third-party lenders or lessors.
In 2021, Airbus continued to benefit from market appetite for both aircraft financing and sale and leaseback lessor opportunities, supported by a sustained level of liquidity available in the market. Airbus customer financing exposure remained limited in 2021 and in 2020 and decreased compared to 2019. Airbus will continue to provide direct aircraft financing support as it deems necessary. Management believes, based on its experience, that the level of provisioning protecting Airbus from default costs is adequate and consistent with standards and practice in the aircraft financing industry. See “– Risk Factors – Financial Market Risks – Sales Financing Arrangements”.
In 2020, Asset Management, Leasing Market and Customer Finance merged to create the Aircraft Leasing Trading and Financing department. The asset management activity is now managed by the Trading commercial team with support from Portfolio / Operations and Project Management / Technical and Services teams.
Trading activity has not changed substantively and it continues to consist mainly in (i) supporting new aircraft sales campaigns through the trading (cradle to grave) and the placement of all types of used aircraft (for cash or lease), (ii) assisting Airbus entities/internal departments in finding/placing aircraft assets on the market (iii) managing and assisting in the remarketing of inventory aircraft and (iv) acting as remarketing agent for an airline/financier to remarket its aircraft. Trading activity also involves the sell down of leases, loans (secured and unsecured) and design of structured lease solutions with customers’ credits.
Finally, it also provides a full range of services, including assistance with entry-into-service, interior reconfiguration and maintenance checks.
Operations. 
Industrial Organisation. 
Airbus’ industrial organisation reflects the end-to-end industrial flow in single-aisle and wide-body value streams respectively. Production flows from the supply chain, through constituent and major component (wing, forward and aft fuselage, and nose and centre fuselage) assembly through to final assembly in Toulouse, Hamburg, Tianjin and Mobile. Aircraft are then handed over to programme management for delivery to customers. The industrial flow is secured by Quality and enabled by Procurement as well as four transverse functions responsible to provide the skills, standards and services necessary for (1) smooth industrial planning, logistics and transport, (2) integrated manufacturing engineering, (3) eradication of non-quality, and (4) highest operational excellence and sound performance management.
The Procurement organisation is responsible for both the contractual and operational relationship with the supplier base. Its aim is to ensure that purchased parts and services are delivered at the most competitive conditions, on time, cost and quality. A dedicated Procurement Operations team manages the delivery stream from the supply chain in accordance with the agreed conditions to enable the production flow.
The Quality First initiative launched in the second half of 2019 in Hamburg, with a strong focus on standards and quality gate adherence, was further deployed in 2020 leading to improved quality gate performance along both value streams. The Quality function ensured the granting in 2020 of all necessary EASA certification, POA, DOA, MOA and EN9100 accreditations through compliance to our internal standards and processes and associated audits.
This way of working along end-to-end value streams promotes a strong sense of collaboration in the service of customers, as well as reactivity and agility with the highest safety and quality standards.
In 2021, the achievement of 611 commercial aircraft deliveries was made possible thanks to the performance of our Airbus’ global production facilities in Europe, the US, Canada and China. The COVID-19 crisis has demonstrated the importance of proximity to Airbus’ customers especially in face of travel restrictions.
Airbus is now preparing for the future aircraft demand by enabling a bigger share on A321 delivery capabilities.
2021 delivery performance and rate evolution: – A220 family: 50 A220 delivered. The A220 monthly production rate at five per month at the end of 2021. The rate is targeted to increase to around rate six per month in early 2022, with a monthly production rate of 14 envisaged by the middle of the decade. – A320 family: 483 deliveries achieved. Airbus is on its trajectory to achieve rate 65 by summer 2023. – A330: 18 deliveries achieved. Airbus expects to increase the A330 production rate, from around two to almost three aircraft per month on average at the end of 2022. – A350: 55 deliveries achieved. Airbus expects to increase the A350 production rate from around five per month to around six in early 2023. – A380: five deliveries achieved. The last A380 was delivered end of 2021. Many A380s will continue to fly with Airbus’ support, for many years.
Engineering. 
Airbus Technology and Engineering is a global organisation that develops civil aircraft and aircraft components, and in-service aircraft modifications and that conducts innovative research applicable to the next generation of aircraft and services. The team operates transnationally, with most engineers employed in France, Germany, the UK and Spain. A population of experienced aerospace engineers was also employed worldwide at five other engineering centres in Wichita (Kansas, US), Mobile (Alabama, US), Moscow (Russia), Bangalore (India) and Beijing (China) at the end of 2021.
The organisation has a strong delivery focus in support of today’s programmes as well as future developments and it is structured as follows. The Centers of Competences (CoC) provide skilled resources to work on tasks, develop methods and tools, and generate solutions on topics related to airframe, systems, flight physics, propulsion, cabin and cargo. The architect and integration centre ensures, together with a team of senior aircraft architects and the programme chief engineers, that a consistent and multi-disciplinary approach is applied during aircraft development. The strategy and transversal integration centre ensures consistency between engineering and corporate


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Research & Technology activities continue to deliver incremental innovations for existing aircraft, matured breakthrough technologies, with reinforced focus on industrial aspects. For further information, see “– 1.3 Other Corporate Activities”.
Airbus Canada, Regional Aircraft, Aerostructures, Seats, Aircraft Conversion. 
Airbus Canada Limited Partnership. 
Airbus Canada Limited Partnership (“Airbus Canada”) has been established on 1 July 2018 following the transaction between Airbus, Bombardier and Investment Quebec. In February 2020, Bombardier exited the partnership. At the end of 2021, the Airbus Canada shareholding structure was 75% Airbus and 25% Investment in Quebec. By the end of 2021, Airbus Canada had approximately 2,500 employees.
Airbus Canada has developed a family of all-new design efficient aircraft with two products: the A220-100 and the A220-300. The A220-100 is a solution for opening new routes with urban and challenging operations. The A220-100 has typical seating between 100 and 120 passengers and a range of approximately 6,400km. The A220-300 is well suited to be one of the best network feeders. The A220-300 has typical seating between 120 and 150 passengers and a range of approximately 6,300km. Both aircraft deliver 25% lower fuel burn per seat than previous generation aircraft, half the noise footprint, and decreased emissions. In addition to the airliner versions, in 2020 Airbus Canada has launched the ACJ TwoTwenty, creating a new business jet market segment by offering an intercontinental capability of over 12 hours flight duration with unmatched personal space and comfort.
In 2021, Airbus Canada has delivered 50 aircraft (compared to 38 aircraft in 2020) and has a backlog of 475 aircraft as of December 2021. Through the end of December 2021, 193 A220 have been delivered.
Industrial Footprint: A220 has two final assembly lines, one in Mirabel and one in Mobile.
ATR. 
ATR (Avions de Transport Régional) is a world leader in the market for regional aircraft up to 90 seats. Its aircraft has 200 operators in 100 countries. ATR is an equal partnership between Airbus and Leonardo, with Airbus’ 50% share managed by Airbus ATR organisation. Headquartered in Toulouse, ATR employs about 1,600 people. Since the start of the programme in 1981, ATR has registered net orders for 1,788 aircraft (513 ATR 42s and 1,275 ATR 72s).
In 2021, following the impact of the COVID-19 crisis on ATR customers’ markets, ATR delivered 31 new aircraft (compared to 10 in 2020) and recorded net firm orders for 22 new aircraft (compared to 14 in 2020). As of 31 December 2021, ATR had a backlog of 167 aircraft (compared to 176 in 2020).
By the end of 2021, ATR has delivered 1,621 aircraft.
Products and Services. 
ATR 42 and ATR 72. ATR has developed a family of highwing, twin turboprop aircraft in the 30- to 78-seat market which comprises the ATR 42 and ATR 72, designed for optimal efficiency, operational flexibility and comfort. Like Airbus, the ATR range is based on the family concept, which provides for savings in training, maintenance operations, spare parts supply and cross-crew qualification. The ATR 72-600 is the lowest seat per mile cost aircraft on the 70 seat segment.
In 2020, the ATR72 freighter has been developed, since then ATR achieved the delivery of six ATR72-600F to FedEx Express (one in 2020 & five in 2021).
Finally, the Company’s aircraft family is being extended with the development of the 42-600S. With the “S” representing Short Take-Off and Landing (STOL), this new version of the ATR 42-600 offers take-off and landing capabilities on runways as short as 800m with 40 passengers on board in standard flight conditions.
In order to complete the short-term product evolution, ATR is also coupling the PW 127 XT new turboprop to this ATR 42-600s version. The PW 127 XT will be available over 2022 for both ATR 72-600 and ATR 42-600.
Customer service. ATR has established a worldwide customer support organisation committed to supporting aircraft over their service life. Service and training centres and spare parts warehouses are located in Toulouse, Paris, Miami, Singapore, Bangalore, Auckland, Sao Paulo and Johannesburg. ATR worldwide presence also includes representative offices in Beijing and Tokyo.
ATR Asset Management addresses the market for second-hand aircraft by assisting in the placement and financing of used and end-of-lease aircraft.
Production. 
The ATR fuselage is produced in Naples, Italy, and ATR wings are manufactured in Merignac near Bordeaux, France. Final assembly takes place in Saint Martin near Toulouse on the Airbus commercial aircraft production site. Flight-testing, certification and deliveries also occur in Toulouse. ATR outsources certain areas of responsibility to Airbus, such as wing design and manufacturing, flight-testing and information technology.
Airbus Atlantic. 
As of 1 January 2022, Airbus Atlantic is a wholly-owned subsidiary of Airbus, gathering forces, resources and means of Airbus Nantes and Montoir-de-Bretagne plants, central functions associated to these activities and STELIA Aerospace sites worldwide.
Counting 13,000 employees in five countries and three continents, Airbus Atlantic is the new world n°2 player in aerostructures market, n°1 in pilot seats and in the top 3 for premium passenger seat marketed under the STELIA Aerospace brand.
Positioned at the heart of Airbus industrial system, Airbus Atlantic aims at delivering state-of-the-art quality and operational excellence to Airbus and to aircraft manufacturers such as Dassault Aviation, Bombardier and ATR, as well as to worldwide airlines with its premium passenger seat range.


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Relying on its aerostructure, pipes and ducts, cabin interior and pilot seat divisions: – Airbus Atlantic has a wide range of metallic and composite aerostructure capabilities, from Build-to-Print to Design & Build solutions, including fully equipped and tested aircraft sections; – Airbus Atlantic designs, develops and manufactures bended and welded pipes and ducts covering all ATA systems; – Airbus Atlantic designs and manufactures luxury First Class and Business Seats for key partners in the world including Lufthansa, Singapore Airlines, China Airlines, Air France or Etihad Airways; – Airbus Atlantic provides cockpits and pilot seats, and offers support from design to production, including after-sales service; – Airbus Atlantic’s mission is to drive competitiveness with the flexibility, speed, simplicity and agility of an aerostructure Tier-1.
Premium AEROTEC. 
Premium AEROTEC, a wholly owned subsidiary of the Company, is one of the world’s leading tier-1 suppliers of commercial and military aircraft structures and is a partner in the major European international aerospace programmes.
Its core business is the development and production of large aircraft components from aluminium, titanium and carbon fiber composites (CFRP). Premium AEROTEC is Europe’s no. 1 in this segment with roughly 7,000 employees at various sites in Germany and Romania. Premium AEROTEC is represented by its products in all Airbus commercial aircraft programmes. The current military programmes include the Eurofighter “Typhoon” and the military transport aircraft A400M.
In order to contribute successfully to the shaping of the future of aviation, the engineers and developers at Premium AEROTEC are continuously working on the new and further development of lightweight and highly durable aircraft structures. They cooperate closely with universities and research institutes in the process. Premium AEROTEC plays a significant role in the design of new concepts in such fields as carbon composite technologies (including thermoplastic processes) or 3D-printing of aircraft components made of titanium or aluminium.
Airbus launched in 2021 a project to place fuselage aerostructure assembly activities at the heart of Airbus’ production system.
In Germany, end of January 2022, Airbus and social partners have agreed to establish a company for state-of-the-art aerostructures assembly. The aerostructure assembly of aircraft fuselages, currently spread across the company and subsidiaries (of which Premium AEROTEC), are planned to be merged and fully integrated into the group as a core activity on 1 July 2022.
Elbe Flugzeugwerke GmbH – EFW. 
EFW combines various aviation and technology activities under a single roof: development and manufacturing of flat fibrereinforced composite components for structures and interiors, the conversion of passenger aircraft into freighter configuration, maintenance and repair of Airbus commercial aircraft as well as engineering services in the context of certification and approval.
On 17 June 2015, Airbus signed an agreement with Singaporebased ST Aerospace Ltd. (STA) to offer passenger-to-freighter (P2F) conversion solutions for its A320 and A321 aircraft. STA acquired an additional 20% of the shares of EFW, Dresden (Germany) by way of a contribution in kind and a capital increase to EFW. The transaction closed on 4 January 2016. Consequently, 45% of the shares of EFW were retained and Airbus effectively lost its control over EFW (previously reported in Airbus).
EFW has been the excellence center for Airbus conversions for more than 25 years and re-delivered 200 converted aircraft of the first Airbus conversion programme (A300/A310) to over 40 customers worldwide, thereof the largest Express carriers in North America and Europe but also renowned General Freight and Combination Carriers.
Based on the latest freighter conversion programmes, the A330P2F, A321P2F and A320P2F, EFW is driving the development of the Airbus freighter family.
By the end of 2021, in total 14 A330P2F have been re-delivered, after a modest start of this programme, the customer demand for conversions of this wide body aircraft increased remarkably during 2020 and over the past year, and has been superseding by end of 2021 the conversion requests concerning the latest single aisle programme of A321P2F which was entering the market back in 2020.
After achieving the STC for the A321P2F in February 2020, the FAA certification in July 2020, the world’s first A321P2F aircraft has been delivered in September 2020 to launch customer Vallair entering into service in October of that year and is since than operated by Qantas for Australia Post.
In 2021, four further A321P2F have been re-delivered.
By the end of 2021 EFW had secured well above 60 A321P2F and above 90 A330P2F orders.
EFW is increasing the conversion capacity such that it is possible to induct over 60 aircraft (approximately 30 A330s and A321s) for conversions per year for the Airbus P2F programmes by 2024 meaning to treble capacity compared to 2021.


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1.1 Presentation of the Company 41 Airbus / Registration Document 2021 1.1.3 Helicopters. 
Airbus Helicopters is a global leader in the civil and military rotorcraft market, offering one of the most complete and modern range of helicopters and related services. This product range currently includes light single-engine, light twin-engine, medium and medium-heavy rotorcraft, which are adaptable to all kinds of mission types based on customer needs. See “– 1.1.1 Overview” for an introduction to Airbus Helicopters.
Ambition & Strategy. 
Airbus Helicopters continues to execute its ambition to lead Helicopters and pioneer new VTOLs for a sustainable future.
The strategic priorities of Airbus Helicopters are: – Customer Loyalty: Airbus Helicopters continues to deliver the best-in-class products and services to grow in the value chain of its customers, continuously improve customer satisfaction and speed up digital and technological transformation of service offering; – Innovation & Sustainability: Airbus Helicopters continues to build a sustainable innovative eco-system, mature technobricks for multiple platforms, develop collaborative innovations for eVTOL and deploy demonstrators and disruptive concepts; – Defence & Security: Airbus Helicopters continues to act as a global defence & security leader through a robust military strategy product policy, as a preferred partner to home countries, reinforcing military programmes’ attractiveness to address new markets and seizing sales campaigns opportunities to continuously grow its military market share.
Transformation. 
The Company remains focused on aviation safety, quality and lead time to continuously improve customer satisfaction.
Airbus Helicopters continues to refine and execute its transformation plan in order to maintain its competitiveness in the face of market evolutions and retain its ability to invest in the future.
Airbus Helicopters continues to deploy data governance and accelerate its digital transformation based on standard capabilities, and foster digital mindset and community of practice.
Airbus Values remain a model for its leaders and employees.
Commitment to Innovation. 
In 2021, Airbus Helicopters ramped up deliveries of its fivebladed H145, both new build and retrofits, for various mission segments that the aircraft has been designed to address. The Company also delivered the first version of the H160 to the Japanese operator All Nippon Helicopter, representing a major milestone for this innovative helicopter.
At the beginning of the year, Airbus Helicopters started in-flight tests on board its helicopter Flightlab, a platform-agnostic flying laboratory exclusively dedicated to maturing new technologies. Airbus Helicopters’ Flightlab provides an agile and efficient test bed to quickly test technologies that could later equip Airbus’ current helicopter range, and even more disruptive ones for future fixed-wing aircraft or (e)VTOL platforms.
Airbus Helicopters intends to pursue the testing of hybrid and electric propulsion technologies with its Flightlab demonstrator, as well as exploring autonomy, and other technologies aimed at reducing helicopter sound levels or improving maintenance and flight safety.
Airbus Helicopters also made important steps towards decarbonising its products, adopting a three-fold approach using SAF, hybridisation, and electrification.
In order to drive the deployment of biofuels, Airbus Helicopters has launched a SAF User Group dedicated to the rotary-wing community. Airbus Helicopters has also started using SAF for training and test flights at its French and German sites as the majority of its product range is already certified to fly with a blend of up to 50% SAF. In November, an Airbus H225 performed the first ever helicopter flight with 100% SAF powering one of the Safran Makila 2 engines. The flight, which took place at Airbus Helicopters’ headquarters in Marignane, marks the start of a flight campaign aiming to assess the impact of unblended SAF on the helicopter systems in view of certifying the use of SAF blends that exceed today’s 50% limit.
Regarding hybridisation, Airbus Helicopters, in partnership with the French Civil Aviation Authority DGAC, started flight testing an engine back-up system (“EBS”) onboard its Flightlab. The project opens the way to a future hybridised propulsion system for light helicopters while delivering concrete flight safety improvements in the short-term. The campaign’s main target is to enhance flight safety of single engine operations by providing emergency electrical power in case of a turbine failure. To conduct these tests the Flightlab was equipped with a 100 KW electric motor connected to the main gearbox, which can provide electrical power for 30 seconds in the event of engine failure. By giving the pilot extra time to react and maintain rotor speed, the engine back-up system contributes to a safer and smoother autorotation maneuver to the ground. The current flight tests include the simulation of engine failure in different flight conditions, including takeoff and landing procedures and corresponding limitations. While evaluating the safety margins and performance benefits, the flight campaign also aims to demonstrate a performance increase, thanks to the prompt electric power input. The potential benefit in terms of Maximum Take-Off Weight is to compensate for the mass of the EBS system itself and to provide helicopter operators with additional payload.
At the Airbus Summit held in September 2021, the Company announced its plans for CityAirbus NextGen as the emerging UAM market begins to firm up. Benefitting from the lessons learned from the two previous demonstrators, the fully electric vehicle is equipped with fixed wings, a V-shaped tail, and eight electrically powered propellers as part of its uniquely designed distributed propulsion system. It is designed to carry up to four passengers in a zero emissions flight in multiple applications with a 80 km range and a cruise speed of 120 km/h, making it perfectly suited for operations in major cities for a variety of missions. The prototype’s first flight is planned for 2023, paving the way for certification as early as 2025.
On the military side, Airbus Helicopters and the French Armament General Directorate (“DGA”) have launched the development of the H160M and its associated support ecosystem in the frame of the Joint Light Helicopter programme (Hélicoptère Interarmées


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Léger (“HIL”)). The contract includes the development of several prototypes and the delivery of a first batch of 30 aircraft (21 for the army, 8 for the navy and one for the air force). The French Ministry for the Armed Forces plans to order a total of 169 H160M helicopters, or Guépard as it will be known in the French armed forces. Deliveries will start in 2027 beginning with the French Army.
The first of a new generation of helicopters, the H160M is derived from the EASA-certified H160. It benefits from a low cost of operations and optimised flight safety. The H160 was designed to be a modular helicopter, enabling its military version, with a single platform, to perform missions ranging from commando infiltration to air intercept, fire support, and anti-ship warfare in order to meet the needs of the army, the navy and the air force. To ensure a high level of availability while reducing operating costs, the H160M’s support and services needs were taken into account from early in its design phase. Innovative and simplified, the H160M’s support is based on the exploitation of data through analytics. Airbus Helicopters will guarantee a high level of availability through an innovative maintenance contract. Airbus Helicopters commits to an innovative management of maintenance and aircraft availability through a dedicated organisation that has proven to be successful.
Airbus Helicopters also made progress on the VSR700, its fully-fledged unmanned aerial system (“UAS”), by pursuing its flight envelope expansion test campaign in 2021. In April, the UAS performed a test flight that pushed its speed limit to 60kts (more than 110 km/h), entirely opening its flight envelope at low speed. Thanks to this milestone, the VSR700 programme is getting closer to its goal: providing the French Navy with a seademonstration-compatible UAS.
Focusing on Customers. 
Airbus Helicopters’ top priority from a customer support and service perspective is to ensure its work results in the best customer experience possible.
2021 saw the Division continue its work on digitalisation, analytics and integrated global contracts with the roll-out of two new offers: HCare Classics and HDataPower.
HCare Classics is a custom-made set of services for its legacy fleet of approximately 2,000 in-service H120, Dauphin, Puma and Gazelle helicopters. It is a customer-centric, results-based approach that has been derived from customer feedback and is aimed at easing the lives of the 750 customers operating these aircraft. The package brings a collaborative approach to fleet management, aiming to anticipate and treat issues of obsolescence and aircraft longevity. The entirely new organisational model behind the offer involves a dedicated plateau that brings together contract managers (as the voice of the customer) and product specialists, from design office experts to members of the supply chain.
Airbus Helicopters is investing both time and money to make its supply chain for the legacy fleet more robust: significant budgets are invested to reinforce the supply chain, buy-back of used aircraft to source parts, committed production lead times to secure the availability of parts, and a 24/7 worldwide AOG and specialised parts transportation service. All aspects of legacy helicopter operations are thus taken into account in a single contract, with performance commitments related to services that are performed by Airbus Helicopters.
The HDataPower pack is composed of a set of digital services addressing our latest generation of helicopters: the H135, H145, H175 and H160. It is designed to boost flight, airworthiness and maintenance operations through easy-to-use digital solutions leveraging data generated by helicopter systems, such as flight data recorders and avionics systems (Helionix®), or maintenance software and applications used to manage fleets.
The HDataPower pack is aimed at supporting these Helionix®equipped helicopters at all steps of an operator’s journey, with an uninterrupted digital chain of solutions fully integrated with Airbus Helicopters systems. It facilitates instant exchanges across functions and organisations, optimises interactions in fleet management while reducing human pressure and risks, and cuts workload and costs thanks to advanced analytics solutions.
Through the digitisation and in-depth analysis of flight, maintenance and logistics operations, the HDataPower pack sets the stage for improvement and time savings, translating to higher fleet availability, enhanced operational safety, optimised costs and sustained asset value.
Aviation Safety. 
Airbus Helicopters’ chief priority is to enhance aviation safety for the thousands of men and women around the world who are transported in its aircraft every day. Airbus Helicopter’ ambition is to further reduce the accident rate by of the Airbus helicopter fleet in service. Airbus Helicopters also aims to be a leader in aviation safety.
In order to achieve these goals, Airbus Helicopters strives to: – define and develop new safety measures and initiatives to support the operations of its customers; – continue to mature the company-wide global aviation Safety Management System (SMS).
This commitment to aviation safety is also reflected across all theinternal activities related to the lifecycle of a helicopter, with a focus on meeting industry quality and safety standards, and going beyond when applicable. All this is based on continuously enhancing the strong safety culture in the Company.
Market Drivers. 
According to market forecasts produced by Airbus Helicopters, around 20,000 civil helicopters and 14,000 military helicopters are expected to be built globally over the next 20 years. The helicopter market has started to recover in 2021, but is expected to remain a challenging environment due to persistent economic uncertainties lengthening sales cycle in particular in military (budget allocation postponement or reduction), delayed growth of emerging markets (especially in Asia) and the Oil & Gas downturn.
Helicopters sold in the civil and parapublic sector, where Airbus Helicopters is a leader, provide transport for private owners and corporate executives, offshore oil operations, diverse commercial applications and state agencies, including coast guard, police, medical and fire-fighting services. Thanks to its existing mission segment diversity, the helicopter market (both platforms and services activities) is expected to be resilient through the coming decade, even though one of the key segments, Oil & Gas continues to experience challenging conditions.


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1.1 Presentation of the Company 43 Airbus / Registration Document 2021. 
The civil and parapublic market has seen a good recovery from the COVID-19 pandemic performing almost at pre-pandemic level (582 units and € 2.8 billion in bookings). On top of this rebound, the civil market has been boosted in particular in value by a significant Russian order (around 130 units and € 1.3 billion). EMS, public services, and PBA showed the greatest recovery contributing to 85% of the civil and parapublic bookings. Airbus Helicopters expects the civil and parapublic market to remain challenging in the short-term but believes that the demand over the next 20 years will be driven by large replacement needs from advanced economies and by growth from emerging countries (especially in Asia still largely under equipped).
Airbus Helicopters’ market data indicates that in 2021, worldwide deliveries of civil and parapublic turbine helicopters of five seats and above stood at 471 units.
Demand for military helicopters and related services is mainly driven by budgetary and strategic considerations, and the need to replace ageing fleets. Airbus Helicopters believes that the advanced age of current fleets, the emergence of a new generation of helicopters equipped with integrated systems and the ongoing introduction of combat helicopters into many national armed forces will contribute to increased military helicopter procurement in the medium term. Nevertheless, demand from the military sector has historically been subject to large yearto-year variations due to evolving strategic considerations, and may be limited, due to budgetary constraints on public spending in some regions like Western Europe and Middle East, while other regions like Asia Pacific or Eastern Europe are expected to continue to grow. Despite recent threats and a growing geopolitical instability, the increased economic difficulties, the saturation of the Western countries markets, as well as priorities given to operational needs (e.g., spare parts, availability improvement), have resulted again in a low military market in 2021. With 460 units booked (€ 9.1 billion), the military market continues to experience lower bookings than before the COVID-19 pandemic. According to Airbus Helicopters’ market data, worldwide deliveries of military turbine helicopters has reachedto 470 units in 2021 (478 units in 2020).
Competition. 
Airbus Helicopters’ primary competitors in the civil and parapublic sector are Leonardo and Bell.
The civil and parapublic sector has seen more local competitors in recent years (China, India, Japan, South Korea and Turkey). Airbus Helicopters has maintained its leading market share (without considering the exceptional Russian order) in a more dynamic market, with 59% in units in 2021, followed by Bell and Leonardo with respectively 16% and 15%.
Airbus Helicopters’ main competitors in the military sector remain Sikorsky, Boeing and Russian Helicopters, thanks to large captive market and strong political support for export, but also Leonardo especially in terms of value.
The military sector is highly competitive and is characterised by major restrictions on foreign manufacturers’ access to the domestic defence bidding process (i.e. US, China and Russia). Thanks to major military campaigns (H135, H145M, HIL, H225M) in 2021 Airbus Helicopters maintained a market share in this sector of 16% in unit. The Division will continue to focus on large military campaigns in 2022.
Customers. 
More than 3,000 operators currently fly Airbus Helicopters’ rotorcraft in over 150 countries. Airbus Helicopters’ principal military clients are Ministries of Defence (“MoDs”) in Europe, Asia, the US and Latin America. In the civil and parapublic sector, Airbus Helicopters has a leading market share in Europe, the Americas and Asia-Pacific.
With 52% of the worldwide market share-based on deliveries in 2021, the versatility and reliability of Airbus Helicopters products have made them the preferred choice of the most prominent civil and parapublic customers (turbine helicopters of five seats and above).


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Civil Range. 
Airbus Helicopters’ civil range includes intermediate singleengine, light twin-engine, medium and medium-heavy helicopters, which are adaptable to all mission types based on customer needs. To maintain and strengthen its competitive edge in the civil sector, Airbus Helicopters is maintaining R&D investments including: – certification of the H160 by EASA in July 2020; – improvement of the existing range (i.e. H145 certified by EASA in June 2020) in the field of performances and safety in order to meet customer’s requirements; – preparing the future H generation with major upgrades and new products pursuing a fast-paced product range renewal.
Military Range. 
Airbus Helicopters’ military range comprises platforms derived from its commercial range (such as the H145M and H225M respectively derived from the H145 and H225) as well as purely military platforms developed for armed forces (the NH90 and the Tiger).
Designed for modern multi-mission capabilities and cost effectiveness throughout its lifecycle, the NH90 has been developed as a multi-role helicopter for both tactical transport (TTH) and naval (NFH) applications. The programme, mainly financed by the governments of France, Germany, Italy and the Netherlands, has been jointly developed by Airbus Helicopters, Leonardo of Italy and Fokker Services of the Netherlands as joint partners in NATO Helicopter Industries (NHI) in direct proportion to their countries’ expressed procurement commitments. Airbus Helicopters’ share of NHI is 62.5%. There were 27 NH90 deliveries in 2021, for a cumulative total of 468 deliveries as of the end of 2021. The NH90 fleet has accumulated ~329,000 flight hours.
On the Combat segment the Mark3 upgrade of the Tiger helicopter will introduce state of the art mission systems, including manned-unmanned teaming, new avionics and next generation of weapons (antitank/air to ground missile, laser guided rockets) in order to address future requirements of the French and Spanish armies. The launch of the Tiger Mark3 development is targeted in 2022. A cumulative total of 185 Tigers have been delivered by year-end. The Tiger fleet has accumulated more than ~155,000 flight hours.
Airbus is also a major contractor to the US Army, having been chosen to supply the service’s UH-72A Lakota helicopter. As of 1 January 2022, 483 aircraft had been delivered to the US Department of Defense for operation by US Army and Army National Guard units, the Navy and foreign military sales buyers.
Customer Services. 
With more than 3,000 operators in over 150 countries, Airbus Helicopters has a large fleet of some ~12,000 in-service rotorcraft to support. As a result, customer service activities to support this large fleet generated 44% of Airbus Helicopters’ revenues for 2021.
Products and Services. 
Airbus Helicopters offers a complete range of helicopters that covers nearly the entire civil and military market spectrum, which it continuously improves with leading-edge technologies. This product range includes single-engine, light twin-engine, medium and medium-heavy helicopters, and is based on a series of new-generation platforms designed to be adaptable to both military and civil applications. In addition, products share multiple technical features as part of a family concept approach.
The following table sets forth Airbus Helicopters’ existing product line, consisting of optimised products for different mission types:
Helicopter Type Primary Missions. 
Single Engine (“Écureuil” family)
H125 “Écureuil” / H125M “Fennec” Public Services(1), Military Utility(2) & Armed Reconnaissance, Corporate / Private, Commercial Pax Transport & Aerial Work. 
H130 Commercial Pax Transport & Multipurpose, Emergency Medical, Tourism, Corporate / Private. 
Light Twin Engine. 
H135 / H135M VIP, Military Utility & Armed Reconnaissance, Emergency Medical, Public Services(1)
H145 / LUH (UH-72) / H145M VIP, Military Utility(2), Emergency Medical, Public Services(1)
Medium (“Dauphin” family)
H160 Corporate / Private, VIP, Oil & Gas, Public Services(1)
H175 Corporate / Private, VIP, SAR, Emergency Medical, Public Services(1), Oil & Gas. 
Medium-Heavy. 
H215 “Super Puma” / H215M “Cougar” Civil Utility, Military Transport / SAR, Oil & Gas. 
H225 / H225M SAR, Combat-SAR, Military Transport, Oil & Gas, VIP, Public Services(1)
NH90 (TTH / NFH) SAR, Military Transport, Naval. 
Attack. 
Tiger Combat, Armed Reconnaissance / Escort (1) Public Services includes homeland security, law enforcement, fire-fighting, border patrol, coast guard and public agency emergency medical services. (2) Civil Utility includes different kinds of commercial activities such as aerial works, electrical new gathering (ENG), passenger and cargo transport.


1. Information on the Company’s Activities / 1
1.1 Presentation of the Company 45 Airbus / Registration Document 2021 1.1.4 Defence and Space. 
Airbus Defence and Space is a reliable partner to commercial and governmental customers worldwide, whose products and services ensure mission success across Air, Land, Sea, Space and Cyber: – Military Aircraft designs, develops, delivers and supports military aircraft and systems. It is the leading fixed-wing military aircraft supplier in Europe, and one of the market leaders for combat, mission, transport and tanker aircraft worldwide. Key products include the Eurofighter Typhoon, the A400M, the A330 Multi Role Tanker Transport (“MRTT”) and the C295; – Unmanned Aerial Systems develops, delivers and operates UAS solutions for defence and institutional missions; – Space Systems covers a broad range of civil and military space offerings. Its satellite solutions for telecommunications, earth observation, navigation and science include spacecraft, ground segments and payloads for institutional customers as well as the export market. It also manufactures orbital and space exploration systems. Space transportation capabilities (comprising launchers and services) are offered via ArianeGroup, a 50/50 Airbus-Safran joint venture; – Connected Intelligence elaborates specific solutions for defence, governmental, civil and commercial customers under five main business clusters: Intelligence, Secure Communications, Cyber Security, Special Security programmes and Secure Land Communications.
Strategy. 
The strategic purpose of Airbus Defence and Space is to shape and deliver sovereign Air and Space power for a secure and connected world.
To achieve this, Airbus Defence and Space is applying its strategy across three domains: – Air Power: Airbus Defence and Space is leveraging momentum in Franco-German-Spanish cooperation, pursuing new European programme opportunities as it works to deliver its vision for Future Air Power. Key opportunities include Future Combat Air System (“FCAS”), Eurodrone and special mission aircraft, among others. Airbus Defence and Space is also working to shape and address future secure,
Airbus Helicopters’ customer service activities consist primarily of maintenance, repairs, spare parts supply, training and technical support. In order to provide efficient worldwide service, Airbus Helicopters has established an international network of subsidiaries, authorised distributors and service centres.
Operations Strategy. 
Implementing a new industrial model is one of the fundamental components of the Division transformation, enabling it to be more competitive and to target industrial excellence, by controlling costs and increasing the First Time Right rate (on all products from legacy to new programmes) while meeting the highest requirements in terms of quality and safety. The three pillars of the new industrial model are site specialisation, a new industrial architecture and the deployment of flexible assembly lines.
Specialised sites contribute to anchoring quality and safety fundamentals while boosting Airbus Helicopters’ competitiveness. Like many manufacturers, one of the objectives is to produce each helicopter sub-assembly at a dedicated site. This means that the production sites are focused either on manufacturing operations with high added value or with a specific technological content. A good example of this transformation is the Paris-Le Bourget site, where all of Airbus Helicopters’ blade design, industrialisation and production activities will be concentrated. The specialisation of these sites makes it possible to avoid the duplication of skills and industrial means.
Thanks to the redistribution of operations and economies of scale, each site contributes to the optimised production of the entire range and becomes more resilient to market fluctuations.
The helicopter is divided into major sub-assemblies that can be produced, assembled and tested in parallel, thus shortening the industrial cycle. The H160 is designed to be assembled in just 40 days thanks to this new architecture. Reducing end to end cycles is a key driver of competitiveness as well as an answer to customer requirements.
Rendering industrial system more modular through flexible assembly lines is an additional means to enhance its competitive edge on the market.
In a versatile market context, the Division’s assembly lines must be able to assemble several different types of helicopters. This multi-product capability will be a key factor in terms of flexibility.
The deployment of the new industrial model is well engaged with more than 85% achieved at the end of 2021.
In addition to site specialisation, Best Cost Countries (BCC) strategy is also an important stream of the Division’s industrial transformation to improve our competitiveness. Airbus Helicopters’ home plants are exclusively in high cost countries. To improve our product cost in the make perimeter, the Division develops an allocation of work with complex technology to the home plants and simple parts in BCC. This is being contemplated with a simplification of the supply chain. The main technologies for BCC are aluminium airframe and mechanical parts. For aluminium airframe, the factory in Mexico is fully operational since 2020 and COVID-19 negative workload impact is expected to be fully recovered in 2022. For mechanical parts, the Hungarian project has been signed in 2020 and first sub-items will be delivered in 2022.
In parallel to the industrial aspects, Airbus Helicopters Operations is working to shape a competitive supply base with high industrial performance to reduce missing parts and avoid disruptions.
Strong monitoring, anticipation and management of the Supply Chain risks have been implemented to ensure business continuity.
To finish, Airbus Helicopters Operations is also working to shape what “Factory of the Future” could look like for each plant / center of excellence in terms of products, processes & skills of tomorrow, digitalisation, connectivity and sustainability performances.


1. Information on the Company’s Activities / 1.1 Presentation of the Company 46 Airbus / Registration Document 2021 upgradeable, and dynamic network along with Command and Control architecture requirements while continuing to evolve existing platforms and capabilities (e.g. Eurofighter Typhoon, A330 MRTT, A400M, C-295, predictive aircraft maintenance) for long-term competitiveness to future force structures; – Space: As Europe’s space leader, Airbus Defence and Space will continue to create ever more competitive products, working with European governments and institutions to ensure the long-term health of the entire European space industrial base. In tandem, Airbus Defence and Space will evolve its product portfolio (i.e. equipment, satellites, vehicles and infrastructure) and take a targeted approach to international expansion. In parallel, Airbus Defence and Space is developing end-to-end solutions and accelerating new products and services to strengthen its position across the space value chain. Conscious of the need to maintain a sustainable space environment, Airbus Defence and Space is also working in collaboration with international organisations on space debris prevention; – Information Superiority: Digital transformation and digital platforms will be a key enabler to unlocking greater value from the Company’s portfolio while providing new data-driven services and business models. The Division will continue to provide imagery intelligence, aircraft in-service support and other services while striving to be a leader in end-to-end secure connectivity across satellite, terrestrial, maritime and airborne networks and communication domains.
Globally, Airbus Defence and Space intends to leverage its existing products and services, innovate new offerings, and strike selected strategic partnerships in order to strengthen its position in the US and other targeted international markets.
Market. 
Airbus Defence and Space is active in governmental, institutional and commercial markets. As a general trend, defence budgets in Europe are forecasted to continue to grow, triggered by geopolitical reasons, heightened security risks, intensity of natural disasters in Europe, initiatives supporting strategic autonomy and continuous development of domestic defence industries. A fourth round of collaborative Permanent Structured Cooperation (PESCO) projects has been launched, European Defence Fund (EDF 2021) calls for proposals concluded, the European Medium Altitude Long Endurance (“MALE”) drone development programme progressed with the contract with OCCAR signed on 24 February 2022, while FCAS negotiations advance for the Demonstrator Phase 1B, and the full integration of the Spanish industry is under way. In addition, EU Member States have defined a number of projects in the frame of the EU Recovery and Resilience Facility (RRF) that aim at building and strengthening space capabilities. Together, this provides sales opportunities in Europe. Market access outside the home countries may be subject to restrictions or preconditions such as national content, local industrial participation or the provision of export licenses. Nevertheless, Airbus Defence and Space, in conjunction with Airbus, is well-placed to benefit from growth in defence expenditure.
Military Aircraft. 
Customers. 
The Military Aircraft Programme Line with its combat aircraft, military transport and mission aircraft, along with related services, mainly supplies the public sector, specifically armed forces.
Customer relationships in this segment are characterised by their long-term, strategic nature and long decision-making cycles. Once a contract is signed its life span, including considerable services business, often lasts for decades. Beyond a strong foothold in home countries, the customer base is increasingly global, in particular due to the success of the A330 MRTT and C295 programmes.
The volatile, uncertain and complex geopolitical situation is gradually leading to a greater importance of defence in Europe. The Franco-German declaration in summer 2017 and the establishment of PESCO by the European Union on 11 December 2017 are also clear signals in this direction. During the FrancoGerman Defence and Security Council in October 2019, France and Germany committed to strengthen their cooperation. Subsequently, the two countries signed the FCAS Phase 1A of the demonstrator phase in early 2020, while Spain joined the programme at the end of that year. FCAS has been evolving well over the past three years, with the execution and achievement of the Joint Concept Study and the Demonstrator Phase 1A. This led notably to the signing of the Common Operational Requirements Document (CORD) in September 2021 by the three Air Force Chiefs of Staff.
Airbus military aircraft such as A400M, MRTT, Eurofighter and other Airbus manned and unmanned platforms will play key roles in the FCAS ecosystem.
Competitors. 
The market for military aircraft is dominated by large- and medium- sized American and European companies capable of complex system integration. Among the competitive factors are affordability, technical and management capability, and the ability to develop and implement complex integrated system architectures. In particular, dedicated mission aircraft such as the heavy tankers, are derived from existing aircraft platforms. Adapting them requires thorough knowledge of the basic airframe, which generally only the aircraft manufacturer possesses, along with knowledge of systems architecture and systems integration. The skills necessary for the overall systems integration into the aircraft are extensive and the number of players in the world market is very limited.
The main competitors in military transport and mission aircraft include Boeing, Embraer, Lockheed Martin, Northrop Grumman, Dassault Aviation, Leonardo, UAC, Kawasaki, AVIC and Antonov.
Heavy military transport has historically been driven by US policy and budget decisions, therefore has been dominated by US manufacturers and split in strategic and tactical aircraft segments. The A400M represents the Company’s entry into this market, at a time when nations are expected to replace their existing fleets. The aircraft is designed to disrupt the difference between strategic and tactical transport by offering both capabilities in one. This saves both time and costs as customers can fly a long range strategic aircraft into a tactical zone of operation.


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1.1 Presentation of the Company 47 Airbus / Registration Document 2021. 
In terms of revenues, Airbus Defence and Space is the largest combat aircraft manufacturer in continental Europe. The major combat aircraft activities are taking place through the contribution to the Eurofighter Typhoon programme, jointly with the consortium partner companies BAE Systems and Leonardo. Competitors in the segment of combat aircraft include Boeing, Dassault Aviation, Lockheed Martin, Saab and UAC. Eurofighter is a key asset and a capability bridge to FCAS.
Market Trends. 
The sale of aircraft is expected to remain stable in the transport and special mission aircraft segments and could grow for the heavy transport segment, where the A400M occupies a unique position.
After-sales services are an important business for Military Aircraft and are continuously growing in line with the deliveries of A400M and A330 MRTT on top of the existing robust revenue stream associated with Eurofighter in-service support. For FCAS, main achievements were the successful delivery of a joint industrial proposal to the governments of France and Germany for the first Demonstrator Phase (Phase 1A) of the programme and the completion of the Joint Concept Study tranche one with the industrial on-boarding of Spain towards the end of 2020.
Unmanned Aerial Systems. 
Customers. 
UAS solve challenges for commercial, government and military customers alike.
There is notable momentum in Europe for cooperation in large UAS programmes. After the finalisation of Eurodrone contractual negotations between Airbus and OCCAR in 2020, Germany, France and Italy respective governments approved the Eurodrone programme budget in 2021 followed by Spain’s budgetary approval in January 2022. The contract was signed by Airbus Defence and Space as industry prime, and by OCCAR on behalf of the nations on 24 February 2022, which will lead to the delivery of 20 Eurodrone systems, along with an initial fiveyear package of in-service support.
Eurodrone, the first European MALE, will see Airbus Defence and Space as prime contractor, leading a European industrial collaborative programme with the participation of Leonardo and Dassault. Additionally, next generation air superiority programmes such as FCAS will feature strong UAS components, spurring the development of different types of Remote Carriers, and leveraging Manned-Unmanned Teaming (MUM-T) technologies. This is underlined by an initiative from France, Germany and Spain.
Institutional and Government customers are recognising the benefits of UAS for Public Services. An incremental number of applications are requiring UAS solutions in areas such as law enforcement, fire fighting, humanitarian assistance and disaster relief, border protection or emergency services. Civil and enterprise customer interest for UAS continues to grow, with the main focus being on smaller UAS.
Some customers may find a service and leasing model more adapted to their specific needs. UAS services offer further growth potential with different levels of flexibility and customer involvement. Services encompass traditional leasing and flight operations, as well as logistics, MRO and data analytics offers.
Competitors. 
With regards to platforms, Chinese, Israeli and US firms are well established in the UAS market segment, along with other European companies such as BAE Systems, Leonardo and Thales, which are competing for new European projects. The market witnesses the emergence of new, smaller, companies worldwide, addressing dedicated UAS or specific services areas. There is room and need for synergies and partnerships between smaller UAS companies and the larger UAS players.
Market Trends. 
While defence will remain the largest sector, civil and institutional markets are growing steadily, especially in the smaller UAS tactical categories. 2020 marked the confirmation of the need for a European UAS in the MALE category. Markets will see some movement, including new European collaborative programmes. Services verticals will offer increasingly interesting prospects as the market evolves. The governmental market especially for larger and advanced UAS features strong growth with significant opportunities in Europe, the US and Asia Pacific. Small and flexible UAS see wide application among armed forces and other homeland security agencies alike.
Space Systems. 
Commercial Sector: Telecommunications Satellites, Launch Services. 
The commercial telecommunication satellite market is highly competitive – with customer decisions primarily based on price, technical expertise and track record. The main competitors for telecommunications satellites are Boeing, Lockheed Martin, MAXAR and Northrop Grumman in the US, Thales Alenia Space in France and Italy and CASC in China. The commercial geostationary telecommunications satellites market continues to show signs of recovery. In parallel, the demand for large constellations of smaller telecom satellites in Low Earth Orbit (LEO) has increased in the last few years. The business model is challenging due to the high upfront CapEx. Airbus is active in this market including direct involvement in the Airbus OneWeb Satellites joint venture and taking the lead on an EU constellation study.
In 2015, Airbus OneWeb Satellites was created, an equally owned joint-venture between Airbus and OneWeb, which is building a global high-speed internet constellation of satellites for its sole customer, OneWeb. This participation is entrepreneurial in nature and has led to a full re-think of satellite design and manufacturing to produce at competitive costs and on relatively short timelines. After a change in ownership in 2020, the company’s lead investors are now the Indian Bharti Group and the UK government. Eight launches took place in 2021 meaning 60% of the first constellation is now in orbit and due for completion in 2022. Moreover, OneWeb has clear ambitions to create a second generation constellation.
With the new Bartolomeo Service, Airbus also offers onestop-shop access to flying payloads in Low-Earth Orbit on the outside of the International Space Station (ISS), which means easy access to Space for both commercial and institutional customers. In 2021, Airbus announced the selection of ClimCam, an African climate monitoring project, to receive a free slot on Bartolomeo.


1. Information on the Company’s Activities / 1.1 Presentation of the Company 48 Airbus / Registration Document 2021. 
The market for commercial launch services continues to evolve with ongoing competitive pressure. Arianespace (a subsidiary of ArianeGroup) provides a complete range of launch services with the Ariane, Soyuz, and Vega launchers. Competitors for launch services include SpaceX, ULA and national space agencies. The accessible market to Arianespace for commercial launch services for geostationary satellites is expected to be at around 15-20 payloads per year, decreasing both in mass and in number of launchers compared to the equivalent market back five-six years ago. The commercial market also sees the rise of large constellations for global connectivity, with the ramp-up of OneWeb and other new projects both in the US and in Europe.
Governmental Sector: Satellites, Space Infrastructure, Launchers, Deterrence. 
In the public market for Earth Observation (EO) and navigation satellites, competition in Europe is organised on a national and multinational level, primarily through the European Space Agency (ESA), the European Commission (EC) and national space agencies.
Space Systems is the recognised European leader on ESA science programmes, securing in 2021 a new contract for the Ariel exoplanet mission. It is also a major player in the EO segment, already on board of the 12 existing and future Copernicus environment missions In addition, a new important contract has been secured in 2021 to design and manufacture six Galileo second generation satellites for Europe’s navigation system. Decisions at the next ESA Ministerial Conference in November 2022 should trigger future European programmes in which Airbus Defence and Space does or may seek to participate.
There is also important export demand for EO systems, in which the Company is the world’s leading provider. The export market is expected to continue growing over the medium-term driven by the demand coming from new governmental operators on top of the replacement of existing assets.
The space exploration segment comprises scientific missions, with both crewed and uncrewed space systems, mainly used for solar system exploration. Demand for space exploration systems originates solely from publicly funded space agencies, in particular from ESA, NASA, Roscosmos (Russia) and JAXA (Japan). Such systems are typically built in cooperation with international partners.
The predominant field of activity on this segment is the continuing support to the operations of the ISS, together with vehicle and equipment development programmes and services. Airbus Defence and Space is the prime contractor for the Orion European Service Module for NASA’s Artemis Moon-return missions, securing in 2021 a contract for three additional modules, bringing the total up to six. As the future exploration plans of the various national space agencies take shape with a growing focus on a sustainable return to the Moon and further Mars exploration, Space Systems is taking a leading role in providing vehicles, platforms and services to support these ambitious endeavours.
On the military customer side, observation satellite demand has increased in recent years.
There is an increasing demand in the governmental satcom market at home and abroad. In addition to the players in the commercial sector (see above), competition includes OHB in Germany, IAI in Israel, Melco in Japan and ISSR and Energia in Russia.
The equipment segment has benefited from a stable European market, with potential growth to come from developing space countries as well as the US.
ArianeGroup is the lead contractor for Europe’s Ariane 5 and Ariane 6 launcher families, responsible for designing, manufacturing and marketing of launch services through its subsidiary, ArianeSpace. It is also responsible of the research, design, development and production of missiles for the French nuclear deterrent force (French Strategic Oceanic Force).
Connected Intelligence. 
The Connected Intelligence activities cover secure connectivity, data and intelligence, as well as cyber resilience for defence, institutions and various security, maritime and commercial customers.
The programme line is divided into five programme units: Intelligence, Secure Communications, Cyber Security, Special Security programmes and Secure Land Communications.
Intelligence: provides data-driven systems, services and solutions for fresh data and insights. Imagery is derived from state-of-the-art satellite constellations with a unique combination of global revisit and high-resolution, such as Pléiades Neo. Intelligence provides systems enabling command & control, real-time data fusion and predictive analyses. It also offers data-driven solutions for various commercial segments, including environmental protection, as well as sovereign cloud infrastructures for the defence segment.
Secure Communications: supplies governmental satellite communications, offering multi-domain secure connectivity, satellite connectivity systems and services for armed forces, notably for UK, France, Germany and NATO, providing secure communications at sea, on land and in the air.
Cyber Security: offer ranges from security operation centres, incident response services, key management, cryptography and high-security national solutions, up to consulting and training services. This programme unit has a strong track record in providing reliable products and services to defence and security customers in Europe.
Special Security Programmes: supports border security and the delivery of site security services in Germany.
Secure Land Communications: supplies advanced communication and collaboration solutions, enabling its customers to gather, process and deploy intelligence. The portfolio is tailored to answer the needs of public safety, industrial and commercial customers.
Products and Services. 
Military Aircraft. 
A400M – Heavy military transport. The A400M is designed to be the most capable new generation airlifter on the market today, aiming to meet the needs of the armed forces worldwide and potential operators for military, humanitarian and peacekeeping missions in the twenty-first century. The A400M can perform the job of three different types of military transport and tanker aircraft by providing different capabilities: tactical (short to medium range airlifter capability with short, soft and austere field operating performance), strategic transport (longer range missions for outsized loads) and tactical tanker.


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1.1 Presentation of the Company 49 Airbus / Registration Document 2021. 
A total of 176 aircraft have been ordered so far. This includes the seven launch customer nations, Belgium, France, Germany, Luxembourg, Spain, Turkey, the UK, as well as two export customers, Malaysia, recently joined by Kazakhstan (two A400M ordered in 2021). Additionally, Indonesia has signed a letter of intent in 2021 to add air-to-air refuelling and heavy transport capabilities to their legacy transport fleet (two A400M plus four optional).
Type Certificate and Initial Operating Clearance were achieved in 2013. Since then, 105 units have been delivered to eight nations as of 31 December 2021. The A400M has already been deployed in operations since 2014, accumulating more than 110,000 flight hours in service. In 2019, a contract amendment was signed with launch customers on the Global Rebaselining of the A400M programme, under which all parties have agreed to update the production plan and revise the capability roadmap. NSOC 2.0 Type Acceptance by customers was achieved in 2020, followed by NSOC 2.5 Type acceptance in 2021. The programme is now delivering in line with the revised schedule, and moving forward towards SOC3 (final development standard).
Multi-role tanker transport – A330 MRTT. The A330 MRTT, a derivative of the Airbus A330-200 family, offers military strategic air transport as well as air-to-air refueling capabilities at the same time. Its large fuel tank capacity (111t), a benefit of the design of the commercial platform, allows it to dispense fuel in flight to many receiver aircraft without the need for additional fuel tanks. This allows the entire lower deck cargo bay compartment to be available for freight (up to 37t), with the possibility to transport up to 27 standard civil LD3 containers, or up to eight 436L military pallets as well as at the same time the capacity to transport up to 300 troops in the upper deck cabin compartment, with the high level of comfort of a civil airliner. The A330 MRTT is equipped with state of the art refueling systems, including an Aerial Refueling Boom System (ARBS) and under-wing refueling pods and has demonstrated wet contacts with the Automatic Air-To-Air Refuelling (A3R) capability, for which certification is expected in 2022. At the end of 2021, 66 A330 MRTT have been ordered by 14 national operators (more than 94% market share over the past ten years, excluding the US), with 51 platforms already delivered and operating worldwide, accumulating more than 250,000 flight hours in operation.
By the end of 2021, in partnership with Lockheed Martin, the Company answered a formal Request for Information for the KC-Y programme of the United States Air Force, aiming at the replacement of the USAF tankers. The formal Request for Proposal process is expect to run over 2022.
Eurofighter combat aircraft. The Eurofighter multi-role combat aircraft (also referred to as Typhoon) has been designed to enhance fleet efficiency through a single flying weapon system capable of fulfilling both air-to-air and air-to-ground missions.
The Eurofighter Jagdflugzeug GmbH shareholders are Airbus Defence and Space (46% share), BAE Systems (33% share) and Leonardo (21% share). With regard to series production, the respective production work shares of the participating partners within the Eurofighter consortium stand at 43% for Airbus Defence and Space, 37.5% for BAE Systems and 19.5% for Leonardo. Airbus Defence and Space develops and manufactures the centres fuselage and the right wing and leading edge slats for all aircraft, and is in charge of final assembly of aircraft ordered by the German, Spanish and Austrian air forces.
In addition, Airbus Defence and Space is responsible for the development of the flight control system and the identification and communication sub-systems.
At the end of 2021, 661 Eurofighter Typhoon aircraft had been ordered by nine customers (UK, Germany, Italy, Spain, Austria, Saudi Arabia, Oman, Kuwait and Qatar), including the order of 38 aircraft in November 2020 from Germany. By the end of 2021 a total of 573 aircraft were delivered. Additionally, in December 2021 the Spanish government authorised the funds for the procurement of new Eurofighters to replace the EF-18A Hornets ageing fleet. Export opportunities are being actively developed together with the other shareholders of the Eurofighter consortium.
C295 – Light and Medium military transport/mission aircraft. The C295 is the workhorse of tactical military transport, conducting logistical missions including the transport and delivery of personnel and cargo as well as medical evacuations. The aircraft are deployed in demanding operational environments and have been used for humanitarian missions. The aircraft are also offered as a dedicated mission aircraft with configurations beyond the traditional airlifter version, for example maritime surveillance and anti-submarine warfare, airborne early warning and control, firefighting and intelligence surveillance reconnaissance (ISR), among other missions. In service for more than 20 years, this family of aircraft has proven to be robust, reliable, highperforming, efficient, flexible, easy to operate in any environment, and with low operating costs. 279 orders have been recorded for the C295 by 35 operators at the end of 2021, a year which includes the historical signature with the Indian Air Force for 56 C295 to replace their legacy fleet.
Military Aircraft Services. Airbus Defence and Space offers and provides various services for and related to military aircraft. Throughout the life-time of our aircraft, Military Aircraft Services includes integrated logistics support, in-service support, maintenance and upgrades, along with training and flight hour services. For example, the A330 MRTT contract with the UK Ministry of Defence through the Air Tanker consortium includes alongside 14 aircraft the provision for all necessary infrastructure, training, maintenance, flight management, fleet management and ground services to enable the Royal Air Force to fly air-to-air refuelling and transport missions worldwide. Services support legacy aircraft beyond those types currently in production at Airbus Defence and Space, conducting upgrade programmes for aircraft such as the Tornado and NATO E-3A (or AWACS). Airbus Defence and Space maintains a network of Maintenance, Repair and Overhaul centres strategically located throughout the world for greater proximity to the customer, for example in Seville or Manching in Europe, in Mobile, Alabama (US) or at subsidiaries in Saudi Arabia or Oman. Supporting more than 1,600 aircraft worldwide, the contribution of Services continues to grow, with Ireland joining as the latest customer in the end of 2021.
Unmanned Aerial Systems. 
In the field of UAS, Airbus Defence and Space is active at both product and service level, supplying robust and dependable solutions for customers across military, commercial and institutional markets. Solutions span from stratospheric solar powered High Altitude Platform Station (HAPS) to Tactical UAS.
The Zephyr is the world leading solar-electric stratospheric HAPS offering uninterrupted persistence and flexibility. The Manned Unmanned Teaming of Remote Carriers with Manned Platforms


1. Information on the Company’s Activities / 1.1 Presentation of the Company 50 Airbus / Registration Document 2021 is one of the pillars of the European FCAS. The European MALE RPAS (Eurodrone), developed in a European industrial collaboration will offer advanced strategic capabilities in demanding environments. The multi-mission SIRTAP offers improved performance for high end tactical UAS. Furthermore, Tactical UAS provides a full range of solutions with small fixed wing UAS platforms, adapted to fulfil ISR missions across military and civil markets.
In addition to UAS platforms, Airbus Defence and Space offers UAS services, supporting the German Air Force operations in Mali, and FRONTEX, for surveillance operations in the Mediterranean Sea. With 40 years experience, over 60,000 flight hours and 98% system availability, these services have demonstrated a proven and unmatched success.
Space Systems. 
Human space flight. Airbus has played an important role in human spaceflight, beginning with the Spacelab reusable laboratory flown on the US Space Shuttle, followed by the development of the Columbus module for the International Space Station (ISS), the Automated Transfer Vehicle (ATV) resupply spacecraft that serviced ISS and most recently, the addition of the Bartolomeo payload hosting platform, which the Company operates as a service. Airbus’ expertise is also being applied to the European Service Module (ESM) planned to equip Orion – the next US NASA spacecraft that will send humans into space: Airbus has been selected by ESA as the prime contractor for the development and manufacturing of six ESMs with the first one to fly on NASA’s Artemis I mission in early 2022.
Telecommunication satellites. Airbus Defence and Space produces telecommunication satellites used for both civil and military applications, such as television and radio broadcasting, fixed and mobile communication services and Internet broadband access. Airbus is leading the transformation of the telecoms market with its truly disruptive OneSat product that marks a step change, from both a manufacturing and operational point of view. It enables Airbus to offer customers a market enabling solution at reduced cost and time to orbit. Airbus has six OneSats under contract, three for Inmarsat for the first of their next generation of geostationary Ka-band satellites, Inmarsat GX 7, 8 & 9, one OneSat for Optus, the Australian operator who ordered Optus-11 in July 2020 – with an option for an additional order – and two OneSats for Intelsat signed in December 2020. Airbus also secured two contracts for its all-electric Eurostar Neo platform in 2020, with the Thuraya and Arabsat operators.
Observation and scientific / exploration satellites. Airbus Defence and Space supplies EO satellite systems including ground infrastructures for both civil and military applications. Customers can derive significant benefits from the common elements of Airbus Defence and Space civil and military observation solutions, which allow the collection of information for various applications, such as cartography, weather forecasting, climate monitoring, mineral, energy and water resource management, as well as military reconnaissance and surveillance. Airbus Defence and Space’s satellite-based services are essential in supporting sustainable agriculture. They provide insights enabling reduction in the use of Nitrates, and play a significant role in helping agroindustrials like Ferrero or Nestlé monitor adherence to their non-deforestation commitments. Satellite imagery also provides targeted information for disaster relief efforts, either through the Disasters Charter or the Copernicus Emergency services, to support rescue operations.
Airbus Defence and Space also produces scientific satellites and space infrastructure, which are tailor-made products adapted to the specific requirements of the mostly high-end missions assigned to them. Applications include astronomical observation of radiation sources within the Universe, planetary exploration and Earth sciences. Airbus Defence and Space designs and manufactures a wide range of highly versatile platforms, optical and radar instruments and equipment. For example, Airbus Defence and Space is on board all 12 Copernicus Environment missions past and future and in 2020 it launched the Sentinel-6 Ocean monitoring satellite that is part of this, the world’s largest climate monitoring programme. On the science side, as prime contractor, Airbus is currently manufacturing the JUICE spacecraft, ESA’s next life-tracker inside the Solar System. JUICE will study Jupiter and its icy moons. In 2020 it also secured a contract for the Earth Return Orbiter, the spacecraft that will return the first ever samples from Mars under the NASA-ESA Mars Sample Return programme.
Navigation satellites. Airbus Defence and Space is playing an active role in the current Galileo programme with a nearly 50% work share, including the ground control segment and providing the payloads for the first 22 satellites through its subsidiary SSTL. Airbus is prime contractor for EGNOS V3, the next generation of the European Satellite Based Augmentation System (SBAS) planned to provide the aviation community with advanced Safety of Life services and new services to Maritime and Land users.
Space Products. Airbus Defence and Space serves the worldwide market with space products through its own Airbus brand as well as the brands Jena-Optronik and TESAT. Space Products offers an unmatched and extensive portfolio of embedded subsystems, equipment and services for all types of space applications: telecommunications, EO, navigation, scientific and space exploration missions, manned spaceflight and launchers.
Launch services. Airbus Defence and Space is active in the field of launch services through its ArianeGroup joint venture.
ArianeGroup is responsible for the coordination and programme management of civil activities of the launcher business and relevant participations that have been transferred. ArianeGroup owns a total 74% stake in Arianespace, 46% of Starsem and 51% of Eurockot, providing a complete range of launch services with the Ariane, Soyuz, Vega and Rockot launchers.
Commercial launchers. ArianeGroup manufactures launchers and performs research and development for the Ariane programmes. Member States, through ESA, fund the development costs for Ariane launchers and associated technology. Airbus Defence and Space has been the sole prime contractor for the Ariane 5 system since 2004. In December 2014, the Ariane 6 programme was decided by the ESA ministerial conference with an approval of the joint Airbus Defence and Space and Safran concept. In addition, a new industrial set-up was announced with the creation of ArianeGroup between the two main Ariane manufacturers. This vertical integration secures the future by cutting costs and being more competitive. Ariane 6 is now targeted to be launched in 2022.
French deterrence systems. ArianeGroup as prime contractor holds the contracts with the French State for the submarinelaunched deterrence system family.


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1.1 Presentation of the Company 51 Airbus / Registration Document 2021. 
Connected Intelligence. 
Intelligence is recognised as a world leader in geospatial data provision and defence intelligence. It is a global supplier of commercial satellite imagery; the No. 1 European supplier of land command and control solutions as well as a lead supplier of ISR and Air Defence solutions to France, Germany and NATO.
Intelligence manages one of the world’s largest satellite fleets, with radar and optical sensors, and resolutions ranging from 25cm to 22m. In addition, the two first Pléiades Neo satellites were launched into orbit in 2021 and are now operational, with two additional ones to be launched mid-2022 to complete the constellation. This will enable it to offer 30cm resolution images with intraday revisit capabilities. Furthermore, the Constellation Optique 3D (CO3D) is currently being developed to deliver 50 cm resolution imagery across the world on a daily basis, scheduled for launch from 2023.
Secure Communications is the European leading provider of secure communications services, bringing together the most comprehensive satellite communications services and systems, and best-in-class secure network services and solutions. It provides governments, military forces and International Agencies with mission-critical voice and high-speed data communications on land, at sea and in the air. One example is the UK “Skynet 5” programme, where Airbus Defence and Space delivers tailored end-to-end in-theatre and back-to-base communication solutions for voice, data and video services, ranging from a single voice channel to a complete turnkey system incorporating terminals and network management. This contract, pursuant to which Airbus Defence and Space owns and operates the UK military satellite communication infrastructure, allows the UK MoD to place orders and to pay for services as required.
Cyber Security provides companies, critical national infrastructures and government and defence organisations with reliable, high-performance products and services to detect, analyse and respond to increasingly sophisticated cyber-attacks. The market growth is driven by an exponential increase in cyber-attacks, the continuous digital transformation in all types of organisation and the increased use of connected assets. Customers belong to both the public and private sector, including companies with high grade security requirements.
Secure Land Communications provides advanced mobile communication and collaboration solutions with the highest standards of security and reliability. These include voice, messaging and multimedia sharing solutions based on Tetra, Tetrapol and Broadband (4G/5G) technologies. The programme unit provides networks, applications, dispatchers, terminals, accessories and services. Among the key achievements for Secure Land Communications in 2021 are the progress made in the Middle East with Aramco in Saudi Arabia, the Tactilon Agnet collaboration solution being used at World Expo in Dubai, and the preparation of the Qatar World Cup. In AsiaPacific, results are positive, especially in China with more than 20 networks won for the metro. In Europe, several contracts including Tactilon Agnet were signed as well, for instance in Finland and Spain.
Operations/Engineering. 
Airbus Defence and Space is headquartered in the Munich region. The main engineering and production facilities of the Division are located in France (Paris region and southwest France), Germany (Bavaria, Baden-Württemberg and Bremen), Spain (Madrid region and Andalusia) and the UK (southern England and Wales). In addition, Airbus Defence and Space operates a global network of engineering centres and offices in more than 80 countries.
MBDA. 
The Company’s missile business, derives from its 37.5% stake in MBDA (a joint venture between the Company, BAE Systems and Leonardo). MBDA offers missile systems capabilities that cover the whole range of solutions for air dominance, ground-based air defence, maritime superiority and battlefield engagement. Beyond its role in European markets, MBDA has an established presence in export markets like Asia, the Gulf region and Latin America.
The broad product portfolio covers all five principal missile system categories: air-to-air, air-to-surface, surface-to-air, anti-ship and surface-to-surface. MBDA’s product range also includes a portfolio of airborne countermeasures such as missile warning and decoy systems and other customer support activities.
The most significant programmes currently under development are the next generation of the successful MICA air-to-air missile (Missile d’interception, de combat et d’autodéfense), the SPEAR 3 missile (Selected Precision Effects at Range Capability 3), the precision attack Brimstone 3 missile, the CAMM-ER missile (Common Anti-Air Modular Missile Extended Range), the Anglo-French joint initiative for a FC/ASW (Future Cruise/AntiShip Weapon), the development of Anti-ship weapons for the two nations, as well as the battlefield engagement MHT missile (Missile Haute Trame).
Recent product upgrades also include the Aster Block 1 NT (New Technology), the air & missile defence systems for France and Italy, the Sea Venom/ANL (Anti-Navire Léger) missile for the helicopters of the UK and French navies, as well as the Enforcer/ MMP (Missile Moyenne Portée) missile for the battlefield.
Further activities include the preparation of hypersonic and direct energy applications/systems for future programmes such as FCAS and Tempest, the production of various aircraft packages for the Eurofighter Typhoon and Rafale existing programmes (including ASRAAM, MICA NT, and Meteor BVRAAM), as well as the production of various packages for frigates and corvettes systems/missiles (including Aster B1, CAMM, VL MICA, Marte ER and Otomat).
ArianeGroup. 
Airbus Defence and Space is active in the field of launchers and launch services through its ArianeGroup joint venture, which prior to July 2017 was named Airbus Safran Launchers (ASL).


1. Information on the Company’s Activities / 1.1 Presentation of the Company 52 Airbus / Registration Document 2021. 
Dassault Aviation. 
In 2013, the Company entered into an agreement with the French State pursuant to which the Company: – grants the French State a right of first offer in case of the sale of all or part of its shareholding in Dassault Aviation; and – commits to consult with the French State prior to making any decision at any shareholders’ meeting of Dassault Aviation.
The Company holds 9.90% of Dassault Aviation’s share capital.
The Company has also issued a euro-denominated exchangeable bonds into Dassault Aviation shares, which matured in June 2021. For further information, please refer to “Notes to the IFRS Consolidated Financial Statements – Note 36.3: Financing Liabilities”.
1.1.6 Insurance. 
The Company’s Insurance Risk Management function (“IRM”) is established to proactively and efficiently respond to risks that can be treated by insurance techniques. IRM is responsible for all corporate insurance activities and related protection for the Company and is empowered to deal directly with the insurance and re-insurance markets via the Company’s inhouse broker entity. IRM’s continuous task in 2021 was to further implement and improve efficient and appropriate corporate and projectrelated insurance solutions.
IRM’s mission includes the definition and implementation of the Company’s strategy for insurance risk management to help ensure that harmonised insurance policies and standards are in place for all insurable risks worldwide for the Company. A systematic review, monitoring and reporting procedure applicable to all Divisions is in place to assess the exposure and protection systems applicable to all the Company’s sites. The Company’s insurance programmes cover high risk exposures related to its assets and liabilities.
Asset and liability insurance policies underwritten by IRM for the Company cover risks such as property damage, business interruption, cyber, aviation and non-aviation general and product liability. IRM also provides a Group insurance policy for Supervisory and Managing Board Members and certain other employees of the Company. The Company follows a policy of seeking to transfer the insurable risk of the Company to external insurance markets at reasonable rates, on customised and sufficient terms and limits as provided by the international insurance markets. A difficult global corporate insurance environment remained in 2021 due to the COVID-19 pandemic situation the corporate insurers have maintained their underwriting strategy for large corporations, however, Airbus’ positive outlook allowed to differentiate the impact on insurance policies.
The insurance industry and the COVID-19 impact on the Company’s risk remain unpredictable and most Group insurance policies are renewed on an annual basis. There may be further demands to change scope of coverage, premiums and deductible amounts. Thus, no assurance can be given that the Company will be able to maintain its current levels of coverage nor that the insurance policies in place are adequate to cover all significant risk exposure of the Company.
1.1.7 Legal and Arbitration Proceedings. 
The Company is involved from time to time in various governmental, legal and arbitration proceedings in the ordinary course of its business, the most significant of which are described below. Other than as described below, the Company is not aware of any material governmental, legal or arbitration proceedings (including any such proceedings which are pending or threatened) which may have or have had in the recent past significant effects on Airbus SE’s or the Company’s Financial Position or profitability.
Regarding the Company’s provisions policy, the Company recognises provisions for litigation and claims when (i) it has a present obligation from legal actions, governmental investigations, proceedings and other claims resulting from past events that are pending or may be instituted or asserted in the future against the Company, (ii) it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and (iii) a reliable estimate of the amount of such obligation can be made. Although the Company believes that adequate provisions have been made to cover current or contemplated general and specific litigation and regulatory risks, no assurance can be provided that such provisions will be sufficient. For the amount of provisions for litigation and claims, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 24: Provisions, Contingent Assets and Contingent Liabilities”.
If the Company concludes that the disclosures relative to contingent liabilities can be expected to prejudice seriously its position in a dispute with other parties, the Company limits its disclosures to the nature of the dispute.
1.1.5 Investments


1. Information on the Company’s Activities / 1
1.1 Presentation of the Company 53 Airbus / Registration Document 2021. 
Investigation by the UK SFO, France’s PNF, US Departments of State and Justice and Related Commercial Litigation. 
The Company reached final agreements (“the agreements”) with the French Parquet National Financier (“PNF”), the UK Serious Fraud Office (“SFO”), and the US Department of Justice (“DoJ”) resolving the authorities’ investigations into allegations of bribery and corruption, as well as with the US Department of State (“DoS”) and the DoJ to resolve their investigations into inaccurate and misleading filings made with the DoS pursuant to the US International Traffic in Arms Regulations (“ITAR”). The agreements were approved and made public on 31 January 2020.
Under the terms of the agreements, the Company agreed to pay penalties of € 3,597,766,766 plus interest and costs to the French, UK and US authorities. This was recognised in the Company’s 2019 accounts. The settlements with each authority were as follows: PNF € 2,083,137,455, the SFO € 983,974,311, the DoJ € 526,150,496 and the DoS € 9,009,008 of which € 4,504,504 May be used for approved remedial compliance measures. All penalties have been paid.
Under the terms of the Convention judiciaire d’intérêt public (“CJIP”) with the PNF, the Company has an obligation to submit its compliance programme to targeted audits carried out by the Agence Française Anticorruption (“AFA”) over a period of three years.
Under the terms of the Deferred Prosecution Agreement (“DPA”) with the SFO, no independent compliance monitor will be imposed on the Company in light of the continuing monitorship to be conducted by the AFA.
Under the terms of the DPA with the DoJ, no independent compliance monitor will be imposed on Airbus under the agreement with the DoJ, but the Company will periodically report on its continuing compliance enhancement progress during the three year term of the DPA and carry out further reviews as required by the DoJ.
The agreements result in the suspension of prosecution for a duration of three years whereupon the prosecutions will be extinguished if the Company complies with their terms throughout the period.
Under the terms of the Consent Agreement with the DoS, the DoS has agreed to settle all civil violations of the ITAR outlined in the Company’s voluntary disclosures identified in the Consent Agreement, and the Company has agreed to retain an independent export control compliance officer, who will monitor the effectiveness of the Company’s export control systems and its compliance with the ITAR for a duration of three years.
Any breach of the terms of the agreements by the Company could lead to rescission by the authorities of the terms of the agreements and reopening of the prosecutions. Prosecution could result in the imposition of further monetary penalties or other sanctions including additional tax liability and could have a material impact on the Financial Statements, business and operations of the Company.
In addition to any pending investigation in other jurisdictions, the factual disclosures made in the course of reaching the agreements may result in the commencement of additional investigations in other jurisdictions. Such investigations could also result in (i) civil claims or claims by shareholders against the Company, (ii) adverse consequences on the Company’s ability to obtain or continue financing for current or future projects, (iii) limitations on the eligibility of group companies for certain public sector contracts, and/or (iv) damage to the Company’s business or reputation via negative publicity adversely affecting the Company’s prospects in the commercial market place.
Airbus will continue to cooperate with the authorities in the future, pursuant to the agreements and to enhance its strong Ethics & Compliance culture within the Company.
Several consultants and other third parties have initiated commercial litigation and arbitration against the Company seeking relief. The agreements reached with authorities may lead to additional commercial litigation and arbitration against the Company and tax liability in the future, which could have a material impact on the Financial Statements, business and operations of the Company.
Securities Litigation. 
In August 2020, a putative class action lawsuit was filed in US federal court in the state of New Jersey against Airbus SE and members of its current and former management. The Company was served with the complaint in the fourth quarter of 2021. The lawsuit was brought on behalf of alleged shareholders that purchased or otherwise acquired Airbus SE securities in the US between 24 February 2016 and 30 July 2020, and asserts violations of US securities laws. The complaint alleges that defendants made false and misleading statements or omissions concerning, among other things, the Company’s agreements approved on 31 January 2020 with the French PNF, the UK SFO, the US DoJ and the US DoS as well as the Company’s historic practices regarding the use of third party business partners and anti-corruption compliance. The lawsuit seeks unquantified damages.
In addition, the Company received notification in August 2021 of two separate claims alleging similar facts as the US class action. Two claims have been filed in the Netherlands purportedly on behalf of Airbus investors.
The first Dutch claim was filed in August 2021 by a special purpose vehicle incorporated under the laws of Guernsey, an assignee purportedly representing numerous private shareholders and institutional investors, seeking a declaratory judgment with damages to be assessed in follow on proceedings. This claim is now pending before the Amsterdam District Court.
The second Dutch claim was filed in December 2021 following a demand letter sent by a foundation incorporated under the laws of the Netherlands, a purported representative of unnamed institutional and retail investors worldwide, starting a class action against the Company before the Dutch courts. This second Dutch claim targets the Company, certain of the Company’s current and former directors and officers, and the Company’s current and former auditors. A procedural hearing is scheduled for the second quarter of 2022.
Both claims allege that the Company violated its reporting obligations by failing to adequately inform investors and providing false or misleading information about its use of intermediaries and alleged corrupt practices, its related financial exposure, internal investigations and subsequent measures taken by the Company, and related criminal investigations, which allegedly impacted the Company’s share price.


1. Information on the Company’s Activities / 1.1 Presentation of the Company 54 Airbus / Registration Document 2021. 
The Company cannot exclude the possibility that additional claims are filed related to this subject matter attempting different theories of recovery in the same or different jurisdictions.
The Company believes it has solid grounds to defend itself against the allegations. The consequences of such litigation and the outcome of the proceedings cannot be fully assessed at this stage, but any judgment or decision unfavourable to the Company could have a material adverse impact on the Financial Statements, business and operations of the Company.
Air France Flight 447 Trial. 
On 1 June 2009, an A330 operated by Air France flight AF447 from Rio de Janeiro to Paris disappeared over the Atlantic Ocean with 228 persons onboard. The wreckage was located in April 2011 after several search campaigns organised by the Bureau d’Enquêtes et d’Analyses (BEA), which published its final investigation report in July 2012. In the wake of the accident, the prosecutor in Paris opened an investigation for involuntary manslaughter and Airbus SAS was charged in March 2011. In September 2019, the investigating magistrates closed the investigation and dismissed all criminal charges after a thorough analysis of the technical and legal elements of the case. However, the Paris Court of Appeal overturned the magistrates’ decision and ordered trial for involuntary manslaughter. The Company’s appeal to the French Supreme Court has been dismissed. The trial is scheduled to take place in the fourth quarter of 2022. The criminal trial in the Paris Criminal Court and any judgment or decision unfavourable to the Company could result in damage to its business or reputation.
Qatar Airways Commercial Litigation. 
Citing surface degradation on some of its A350 fleet and alleging an underlying “design defect”, Qatar Airways filed a legal claim against the Company in the London Commercial Court on 17 December 2021. The claim seeks (a) liquidated damages for aircraft grounded by the Qatar Civil Aviation Authority, (b) an order that Airbus must deliver a full root cause analysis for surface degradation issues, and (c) a declaration by the court that Airbus may not deliver any further A350 aircraft to Qatar Airways until alleged “design defects” are cured. The Company rejects Qatar Airways’ mischaracterisation of the non-structural surface degradation and the attendant grounding of the aircraft, which underpin the claim. Accordingly, the Company will defend itself vigorously in the proceedings. The consequences of such litigation and the outcome of the proceedings cannot be fully assessed at this stage, but any judgment or decision unfavourable to the Company could have a material adverse impact on the Financial Statements, business and operations of the Company as well as its reputation.
Other Investigations. 
The Company is cooperating fully with the authorities in a judicial investigation in France related to Kazakhstan. In this spirit, the Company was interviewed by the investigating magistrates and has been granted the status of “assisted witness” in the investigation.
The Company is also cooperating fully with the authorities in a judicial investigation in France related to Libya. In this spirit, the Company has responded voluntarily to requests for information.
In 2019, the Company self-reported to German authorities potentially improper advance receipt and communication of confidential customer information by employees of Airbus Defence and Space GmbH. The information concerned relates to future German government procurement projects. The selfdisclosure by the Company followed an internal review with the support of an external law firm. Both the German Ministry of Defence and the Munich public prosecutor opened an investigation into the matter. The investigation could have an impact on Airbus Defence and Space GmbH’s and Airbus Secure Land Communications GmbH’s ability to participate in future public procurement projects in Germany. In 2021 the Munich prosecution issued a penalty notice against Airbus Defence and Space GmbH for € 10 million for negligent violation of supervisory duties in connection with this matter. The Company continues to fully cooperate with relevant authorities.


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 55 Airbus / Registration Document 2021 1.2 Non-Financial Information 1.2.1 The Company’s Approach to Sustainability. 
Purpose. 
The Company’s purpose is to pioneer sustainable aerospace for a safe and united world. It aims to lead the way in the decarbonisation of the aerospace industry, to unite and safeguard the citizens of the world, and continually expand human knowledge of our universe, from critical events on earth to the exploration of space. To this aim, the Company designs, manufactures and delivers aerospace products, services and solutions to customers on a worldwide scale bringing essential value to society and contributing to the UN Sustainable Development Goals (“SDGs”) through its core business and how it runs it.
First of all, the Company connects. Connections are vital to making the world a better place. That’s why the Company unites people and organisations across the globe; physically with its commercial aircraft and helicopters; and virtually with its connectivity solutions, allowing them to connect and understand each other.
The Company serves communities. Its satellites and tracking systems help make oceans safer with solutions that monitor and protect naval routes and maritime assets. Company-built aircraft are instrumental in firefighting, in maintaining energy systems and public safety. Its helicopters are the workhorses that carry out construction and infrastructure projects in hostile or inaccessible areas of local communities as they can often be the only tool able to transport heavy loads, building materials, supplies, cargo and more. Technology solutions from the Company protect many critical systems from cyberattacks.
The Company saves lives. When a humanitarian crisis arises, its aircraft help transport patients for urgent medical care, and they assist in search efforts to find those marooned at sea, stranded in the mountains, or isolated in remote regions. Its EO satellites are tasked to acquire images of the concerned area. This imagery is delivered to relevant authorities, together with archived data, to rapidly assess the extent of damage and support rescue planning by allowing actions to be prioritised, and identifying if roads, bridges and airport runways are still operational.
The Company protects. Its defence products and services help countries protect their citizens, values and vital infrastructure. In an unstable world, this security is a prerequisite of peace, the rule of law, political stability, democracy, environmental sustainability, human rights, economic development and prosperity, and scientific progress. The Company manufactures helicopters, fighter jets and military transport planes that allow nations to safeguard their airspace and respond to natural disasters. The Company supplies intelligence capabilities as well as terrestrial space and cyber security services. It provides secure communications to governments and organisations devoted to public safety. All help to make the world a safer place. Its defence activities contribute to diplomacy, conflict resolution and a multilateral approach to international relations. By supplying EU and NATO member states with advanced military equipment, it strengthens their diplomatic influence and credibility on the global stage – and in turn that of international institutions such as the UN and NATO, thereby contributing to SDG 16 – Peace, Justice and Strong Institutions.
The Company explores. It believes the exploration of our universe will enrich life for generations to come. Its space technologies and satellite imagery solutions continually expand human knowledge of our universe, from the ability to capture and analyse data on climate change and critical events on Earth, to providing the solutions that enable deep-space exploration. For decades, the Company has been at the very heart of space exploration. It’s at the forefront of creating the technologies that allow mankind to send spacecraft to planets, moons and comets both near our sun and millions of kilometres away.
GENERAL GRI SDGs Others 102 General Disclosures 4, 5, 8, 9, 12, 13, 16, 17 Vigilance Plan. 
Highest governance body(ies) involved Board of Directors / ECSC Executive Committee supported by topic-focused Committees. 
Commitments to external frameworks UN Global Compact, The Ten Principles, Sustainable Development Goals. 
Add. ressources : this symbol indicates a link to an external website. 
Sustainability on Airbus.com , Airbus Tax Strategy. 
Innovation contributing to a more sustainable world on Airbus.com , Earth monitoring and understanding (e.g. Climate change monitoring , Application for sustainable agriculture) , Example partnership for innovation: ANITI project , Toulouse University (ANITI) ,
The Future of Hydrogen by the IEA ,
ATAG Benefits Beyond Borders fact sheet , ASD Fact Sheet 2021. 
UN Global Compact


1. Information on the Company’s Activities / 1.2 Non-Financial Information 56 Airbus / Registration Document 2021. 
As a major European defence manufacturer, the Company also has significant economic impact across Europe. According to the AeroSpace and Defence Industries Association of Europe (ASD) the industry supports over 462,000 high-skilled jobs across the continent, all contributing to Europe’s economic prosperity with € 119 billion in annual revenue, € 45.6 billion of which are dedicated to exports.
While the Company contributes to the global economy as a whole it also contributes to the economic development of the communities it operates in. Full aerospace ecosystems, often bringing together academia, research centers and corporations, all with high value-added jobs, often develop around the Company’s sites such as those in Toulouse or Hamburg. This development is accelerated thanks to the Company’s innovation ecosystem such as the recently launched Airbus Scale initiative, a new innovation unit that brings together corporate innovation, start-up engagement and company-building activities. In this approach, Airbus Scale will promote and identify internal corporate innovation opportunities that can be developed into solutions for the external world, bringing them to market and attracting external investments that could result in spin-offs. This generates value for the Company but also the local communities where these new companies will set foot and prosper.
There are many other examples of how, in the process of developing its products and services, the Company is stimulating innovations and developments across the aerospace ecosystem, benefiting society more broadly.
For example, as the Company prepares for its ZEROe aircraft, it is stimulating multiple innovations and development around the use of hydrogen from low carbon and renewable hydrogen production and storage to combustion and propulsion, all beneficial beyond aerospace. As an example, by committing to a hydrogen-powered aircraft by 2035 the Company is priming demand, stimulating low carbon and renewable hydrogen production capacity. Currently, less than 0.1% of global dedicated hydrogen production comes from water electrolysis according to the International Energy Agency (IEA)’s 2019 report The Future of Hydrogen. However, this is expected to rapidly change. The cost of renewable energies is falling at an unprecedented rate. Investment in electrolysers – the “clean” technology used to separate hydrogen and oxygen atoms in water – is expected to boom worldwide.
Jobs supported by aviation worldwide 11.3 million direct jobs in the industry: 648,000 at airport operators 5.5 million in other on-airport jobs 3.6 million at airlines 1.3 million in civil aerospace 237,000 at air navigation service providers 18.1 million jobs supported through the aviation industry supply chain 13.5 million jobs through induced benefits of industry and employee spending 44.8 million jobs supported in the tourism industry. 
Global contribution to GDP, 2018 (4.1% of world economic activity)
Economic benefits 
87.7 million $3.5 trillion. 
Aviation jobs are, on average, 4.3 times more productive than other jobs 4.3x. 
Worldwide trade by value carried by air transport, 2018 ($6.5 trillion). By volume: 0.5% 35%
If aviation were a country, it would rank 17th in size by GDP 17th. 
Additional indirect contributions. 
The Company’s contribution to a more prosperous and sustainable society goes well beyond what it offers directly through its products and services.
For example, as one of the most important players in the aviation industry, the Company contributes significantly to SDG 8 “Decent Work and Economic Growth” as highlighted through the 2020 ATAG Benefits Beyond Borders – global fact sheet, found on the ATAG website (figures reflect pre-COVID-19 situation, a “normal” year for air transport):


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 57 Airbus / Registration Document 2021. 
Sustainability Commitments. 
Furthermore, the Company understands that contributing to a sustainable society must be achieved not just through what it does but also how it does it, aiming at minimising negative impact and maximising the positive. In order to give direction and focus, in 2020 the Company updated its sustainability strategic framework around the below listed four sustainability priority commitments that apply across its entire value chain. These commitments are in close connection with the UN SDGs and contribute more specifically to eight of them.
Across each commitment the Company has set key performance indicators (“KPIs”) and targets enabling the Company to monitor progress towards these ambitions. These can be found in “– 1.2.8 ESG Data Board”, which gathers all reported sustainability metrics. They can also be found in the related sections of this chapter which is structured around each of the four commitments above, completed by two sections which cut across all four commitments, “– 1.2.6 Responsible Supply Chain” and “– 1.2.7 Community Impact”.
Several sources were essential in deciding on the four commitments, including the 2019 materiality assessment, a thorough benchmark, an analysis of market and regulatory trends, an evaluation of ESG risks in the Company’s risk report, a human rights gap analysis and the consideration of the Company’s values.
The stakeholder viewpoint was captured via a mix of surveys and artificial intelligence (via analysis of reports, legislation and media sources). The materiality viewpoint of stakeholders was mapped against the actual or potential impact on the Company of identified environmental, social and governance (“ESG”) issues, in addition to an analysis of which ESG issues the Company has, or could have, the most impact on. These were both captured via surveys sent to the Company’s executives. Results led to the following three-dimensional materiality matrix, fundamental in establishing the Company’s four commitments. The intention is to launch a new assessment in 2022.
Stakeholder engagement. 
At a strategic level, the 2019 materiality assessment was a critical exercise in capturing the voice of 12 of the Company’s most important stakeholder groups, helping it identify which ESG issues were most material to them, and integrating this into its strategy. These key stakeholder groups included:
Customers NGOs Authorities MRO providers. 
Suppliers Investors Governments Airports. 
Partners Employees Industry Associations Community at large. 
The Company’s four Commitments Material topics SDGs Section #1 Lead the journey towards clean aerospace. 
Environmental impact of our operations Environmental impact of our products 1.2.2 #2 Build our business on the foundation of safety and quality. 
Product Safety Cybersecurity Health & Safety 1.2.3 #3 Respect human rights and foster inclusion. 
Human Rights Inclusion & Diversity Labour Relations People 1.2.4 #4 Exemplify business integrity Business Integrity 1.2.5


1. Information on the Company’s Activities / 1.2 Non-Financial Information 58 Airbus / Registration Document 2021. 
Materiality matrix. 
INCREASING MATERIALITY TO STAKEHOLDERS. 
INCREASING IMPACT ON AIRBUS. 
Security (incl. Cyber security)
Stakeholder Engagement. 
Product Safety & Quality. 
Business Culture & Leadership. 
Economic. 
Environment - Products. 
Technology & Innovation. 
Environment - Operations. 
Community Impact. 
Health & Safety. 
Responsible Supply Chains. 
Responsible employer. 
Materiality Matrix. 
Bubble size : Impact OF Airbus. 
Environment Safety & Quality Human rights Business integrity Other. 
HIGH HIGHEST HIGHER. 
HIGH HIGHEST HIGHER. 
Source: Datamaran.
Governance. 
Conscious of the strategic importance of sustainability, the Company has defined an adapted governance and organisation at the highest level.
Hence, oversight has been established at the Board of Directors level with the Ethics, Compliance and Sustainability Committee (“ECSC”). For further information about the ECSC, see “– Corporate Governance – 4.1 Management and Control”.
The ECSC is responsible for assisting the Board of Directors to oversee the Company’s: – Culture and commitment to ethical business, integrity and sustainability; – Ethics & Compliance programme, organisation and framework for the effective governance of ethics and compliance, including all associated internal policies, procedures and controls; and – Sustainability strategy and effective governance to ensure that sustainability-related topics are taken into account in the Company’s strategy and objectives.
Under the Board Rules, the Board of Directors delegates the dayto-day management of the Company to the CEO, who, supported by the Executive Committee, makes decisions with respect to the management of the Company, including sustainability. The Executive Committee has the responsibility to provide top level expectations and direction while overseeing and validating the sustainability strategy. This entails validating sustainability targets including those integrated into the Top Company Objectives.
The Executive Committee is supported by several committees or boards linked to the Company’s four sustainability commitments: – the Environment Executive Steering Committee, the Inclusion & Diversity Board as well as the Product Safety Board, all chaired by EC members; – the Steering Committees of the Human Rights and Sustainable Supply Chain Roadmaps, both sponsored by Executive Committee members.
Other sustainability topics such as Health & Safety and Business Integrity are brought directly to the attention of the Executive Committee.


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 59 Airbus / Registration Document 2021. 
Ethics, Compliance & Sustainability Committee. 
Health & Safety, Human Rights, Business Integrity, Sustainable Supply Chain. 
Direct cascading of topics to the Executive Committee. 
Inclusion & Diversity Advisory Board. 
Product Safety Board. 
Environment Executive Steering Committee. 
Board of Directors. 
Executive Committee. 
The Company also believes the integration of sustainability criteria in its reward mechanisms is an important enabler for accelerating its sustainability ambitions. A sustainability component is integrated into the Common Collective Component of the CEO’s variable remuneration, accounting for 20% of the payout, see “– Corporate Governance – 4.4 Remuneration Policy”. This principle also applied to the other members of the Executive Committee who do not serve on the Board of Directors, and to a large extent to executives employed at the Company.
Organisation and policy framework. 
The Sustainability & Environment team put in place in January 2020 at corporate level has continued to develop and expand. Its mission continues to be to: -- Set the ambition level for the four sustainability strategic commitments. -- Identify the levers to achieve this ambition. -- Enable the business to deliver this ambition across the full value chain. -- Engage employees on sustainability. -- Provide clarity on ambition and progress to internal and external stakeholders.
While the Sustainability & Environment team has a Company-wide role to provide direction and check regularly on advancements across all sustainability topics, for each of those topics (e.g. Health & Safety, Inclusion & Diversity, Human Rights, etc.), there are related functions, departments or “roadmaps” (multifunctional teams addressing cross functional sustainability topics) driving their continuous improvement. These teams are for the most part supported by dedicated policies which are referred to in the Company’s Code of Conduct, a single reference intended to guide daily behaviour and help employees resolve the most common ethical and compliance issues that they may encounter. The Code of Conduct applies to all employees, officers and directors of the Company.
1.2.1.1 Airbus’ way forward: Vigilance Plan. 
The Company is determined to conduct its business responsibly and with integrity. The Company is convinced that promoting responsible business conduct within its value chain is key to sustainable growth. For the Company’s Vigilance Plan for its supply chain, see “– 1.2.6 Responsible Supply Chain”, which shall be deemed to be incorporated by reference and form part of this plan.
As far as its own operations are concerned, the Company has adopted internal policies and management tools to perform the assessment, monitoring, mitigation and reporting of risk and compliance allegations, which are embedded into the Company’s culture and processes.
Enterprise Risk Management & Internal Audit: With regard to risk management, sustainability risks and opportunities are fully embedded in the Company’s Enterprise Risk Management (“ERM”). For further information on ERM, see “– Corporate Governance – 4.1.3 Enterprise Risk Management System”. For further information on the Company’s risks, see “– Risk Factors”. Internal audits are also performed regularly across the Company, including on sustainability topics. See “– Corporate Governance – 4.1.4 Internal Audit”. External audits are also performed in line with certification requirements as detailed in the related material topic sections.
Sustainability competencies & employee engagement: Awareness-raising, competence development and employee engagement are essential to preventing and mitigating sustainability risks and maximising opportunities. To this aim, the Company offers employees over 400 training opportunities, online and in-person, linked to environment, human rights, inclusion & diversity, data privacy, cybersecurity, product/ aviation safety, health & safety and ethics & compliance. Training courses linked to sustainability topics were integrated into the 2021 mandatory training list for Company employees. Specific information on training is covered in the related material topic sections.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 60 Airbus / Registration Document 2021. 
Affiliates: All Company-controlled affiliates are expected to deploy similar internal policies by applying the Company’s directives. A Company-wide single directive defines rules, processes and procedures applicable to the Company’s affiliates and their respective boards, directors and officers. Its enforcement is supported by the Directors’ training programme which, in 2021, was delivered to around 267 people over 18 full-day digital sessions. The single directive assists the Company’s affiliates in effectively fulfilling their responsibilities while assuring the Company’s ongoing commitment to high standards of corporate governance. It was built on the basis of Company-related internal policies including but not limited to: the Company’s Code of Conduct, International Framework Agreement; Agreement on the European Works Council; Supplier Code of Conduct; Health & Safety Policy; Environmental Policy; the Company’s Anti-Corruption Policy and related Directives. An online self-assessment is completed on an annual basis by the controlled affiliates to self-assess their internal controls, including how they relate to the environment, health & safety, human resources, governance, finance, procurement and compliance requirements in order to identify any gaps and define remedial action plans as required. Controlled affiliates can update the self-assessment on a quarterly basis based on their progression. Since 2019, affiliates have also been asked to regularly evaluate risks via the Company’s ERM system, as well as to regularly monitor them as part of their risk assessment process.
Grievance & whistleblowing mechanism: The Company is committed to maintaining a “speak-up” culture by promoting an open and trusting dialogue with employees at all levels. All employees are encouraged to express their views, defend their opinions, and point out unacceptable behaviour – especially behaviour that violates the Company’s Code of Conduct. Employees can raise concerns to their line manager, their human resources business partner, to a Legal & Compliance representative, or through the Company’s “OpenLine” hotline (www.airbusopenline.com). The OpenLine is anonymous where legally permissible and also available to external stakeholders, including affiliates and suppliers, and covers all sustainability topics. The Company endeavours to ensure that the procedures to assess, investigate and manage allegations are well aligned throughout the Company. For further information about the OpenLine, see “– 1.2.5 Exemplify Business Integrity”.
For further information on the Company’s approach to the environment, see “– 1.2.2 Lead the Journey Towards Clean Aerospace – Environment”. For further information on the Company’s approach to human rights and health and safety, see 1.2.4 and 1.2.3 respectively.
A dedicated section also appears at the end of this report compiling key information related to the vigilance plan. See “– 1.2.9 Deployment of Vigilance Plan (Devoir de Vigilance)”.
1.2.1.2 Reporting standards. 
The Company reports against the GRI (Core) standard. A GRI index is available in “– 1.2.12 GRI Index”.
TCFD and SASB: Disclosed information is referenced in dedicated tables in sections “– 1.2.11 TCFD Correspondence Table” and “– 1.2.13 SASBI Correspondence Table” respectively.
1.2.2 Lead the Journey Towards Clean Aerospace. 
I. Introduction. 
In line with the Company’s purpose “pioneering sustainable aerospace for a safe and united world” and its aim to drive the transition of the air transport system towards climate neutrality, the Company’s foremost ambition as an aircraft manufacturer is to bring the first zero exhaust CO2 emission (“zero emission”) commercial aircraft to the market by the middle of the next decade and to play a leading role in the decarbonisation of the aviation sector. The Company is investing major resources into examining and reducing the impact of its products in operation together with all actors within the aviation sector.
As a supporter of the Task Force on Climate-related Financial Disclosures (“TCFD”), the Company not only tracks and measures the environmental impact of its sites, products and services, but also works in cooperation with its worldwide supply chain to drive more effective environmental management, decarbonise its industry and foster circularity by optimising resource utilisation. To help the Company reach its vision, it places innovation at the core of this effort by investing in research, new technologies and sustainable solutions. The Company approach to address climate risks and opportunities follows the four pillars of the TCFD – governance, strategy, risk management, metrics & targets – as reflected in the Company reporting hereafter, and in its answers to the CDP questionnaire published on its website. The Company maintained its A- CDP rating in 2021.
The Company has identified climate change as its most material environmental impact and as such recognises its role in contributing to mitigating the global footprint of the sector and the importance of aligning and respecting the commitments of the Paris Agreement. Climate change may also affect the environmental conditions in which the Company’s manufacturing activities and products are operated. Another main area of attention is the elimination or management of regulated substances. The Company is continually seeking technicallyfeasible sustainable solutions to reduce the environmental impacts of its products and operations, in cooperation with its suppliers and industrial stakeholders. Other environmental aspects such as the impact on water resources, the production of waste or the emission of air pollutants are also part of the Company’s priorities.
To this end, the Company has set key environmental ambitions: – lead the decarbonisation of the aerospace sector aiming to bring the first zero emission commercial aircraft to market by 2035; – reduce the industrial environmental footprint at sites worldwide and throughout our supply chain; – develop a more circular model, leveraging ecodesign and digitalisation to optimise material utilisation and reduce use of critical resources; – enhance the current product and services portfolio contributing positively to climate change mitigation and adaptation.


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ENVIRONMENT GRI SASB SDGs Others 302 Energy 303 Water and Effluents 305 Emissions 306 Waste -- Energy Management -- Hazardous Waste Mgmt -- Fuel Economy & Emissions in Use-Phase 9-12-13-17 TCFD Vigilance Plan. 
Highest governance body(ies) involved Board of Directors / ECSC Executive Committee / Environment Executive Steering Committee. 
Related Corporate Policies Environmental Policy. 
Management system Relevant certifications EMS – Environmental Management System ISO14001 -88% of workforce covered. 
KPIs. 
Target 2030 Baseline 2015(8) 2020 2021 2021 vs. 2020 2021 vs. Baseline. 
CO2e Scope 1&2(1) (ktons) -63%(2) in line with 1.5°C pathway “net zero Scope 1&2” by 2030(3) 1,116 882 827 -6% -26%
Energy(4) (GWh) -20% 3,107 2,665 2,728 +2% -12%
Waste: Waste produced(5) (tons) -20% produced and 0% landfill and incineration w/o energy recovery 107,967 74,898 69,660 -7% -35%
Air emissions:
VOC (tons) 0% increase 1,464 1,047 1,051 0% -28%
NOx (tons) 0% increase 15 14 14 -3% -8%
SOx (tons) 0% increase 247 239 222 -7% -10%
Water:
Water purchased (m3) -50% 3,311,578 2,865,793 2,584,644 -10% -22%
Water withdrawal (m3) 0% increase 3,754,503 3,371,030 3,078,590 -9% -18%
Other key metrics (More metrics available in the ESG Data Board) 2020 2021 2021 vs. 2020. 
SCOPE 3 – Use of sold product – Commercial Aircraft(6)(7) (CO2e kton) 440,361 463,592 +5.3%
Delivered aircraft efficiency intensity (gCO2/km.pax) 63.1 62.6 -0.8%
SCOPE 3 – Use of sold product – Helicopters(6) (CO2e ktons) 1,085 1,137 +4.8%
SCOPE 3 – Purchase of Goods and Services(6) (CO2e ktons) 11,346 NA stable. 
CDP Rating AA-
Remuneration CO2 performance included in CEO and Executives variable remuneration. Targets (on TCO scope): -3% in 2021, -5% in 2022. 2021 performance: actual -7%; retained -6%, net of guaranteed origins in excess of amount planned for target setting.
KPI assumptions (1) Scope 2: location based with purchased guarantees of origin deduced. (2) Established following the Science based Target methodology in line with a 1.5°C pathway. (3) Neutralising residual emissions through permanent removal and storage solutions. (4) Total consumption from stationary sources. (5) Total waste excluding exceptional waste. (6) Scope 3 methodologies are detailed in the environment section hereafter. (7) 2020 figures restated, integrating refined emission factors. (8) Baseline was refined to reflect changes in scope, align with GHG protocol guidelines and rectify actuals for some entities.
Additional resources. 
Environmental Policy Statement , Environment on Airbus.com , CDP Climate Change Questionnaire on Airbus.com and on CDP website , ATAG Waypoint 2050 , IEAG – GHG Reporting Guidance ,
ITAKA Initiative Towards sustAinable Kerosene for Aviation , Clean Sky initiative , SESAR initiative , Partnership on Smart Cities and Communities (EIP-SCC)


1. Information on the Company’s Activities / 1.2 Non-Financial Information 62 Airbus / Registration Document 2021. 
II. Governance. 
Environmental policy. 
The Airbus Environmental Policy is the top level referential defining the guiding principles, mission, vision and associated top level Initiatives for environment. The policy applies Company-wide, including to affiliates where the Company owns more than one half of the voting rights or the right to appoint the majority of the Board directors to the extent that the shareholders agreement and/or the level of control in force in each relevant affiliate allows it. It covers the Company’s employees and contractors whilst on the Company’s sites or at work under the responsibility of the Company. The policy takes a holistic approach to measuring and acting upon the Company’s environmental performance by assessing the environmental impact of internal operations as well as providing capabilities to the Company’s customers to reduce the impact of the products in operation. This also means introducing a lifecycle perspective and mitigating the risks and impacts at all stages of the lifecycle, from the procurement of raw materials, through the design and manufacturing of products, to their in-service life until their retirement.
Organisation and responsibilities. 
Two main management structures are relevant for the governance in sustainability matters and climate change: the Board of Directors and the Executive Committee.
As mentioned above, the Board of Directors is supported by the ECSC. In practical terms, the ECSC as a committee of the Board of Directors oversees strategic decision-making and the execution of the approved sustainability strategy, including areas such as innovation and environmental and climate action.
In 2021, the ECSC reviewed and provided guidance on a number of environmental topics such as the Company’s decarbonisation strategy for its direct operations, supply chain and products.
To support the Executive Committee in environmental matters, especially climate-related, an Environment Executive Steering Committee (“EnC”) was established in 2019. The EnC is composed of members of the Executive Committee and senior executives Company-wide, responsible for environmental topics. It meets monthly to review the progress and take decisions on all matters related to the environmental strategy. The EnC reviews climate change related topics, including the progress on greenhouse gas (“GHG”) emissions reduction objectives, the decarbonisation strategy and climate related risks.
Environmental operations are led by the Sustainability & Environment department (described above), whose role is to guide the business in environmental matters and to set the policy and deploy, drive and improve the Environmental Management System (“EMS”) throughout the Company.
The Company’s EMS is based on ISO 14001:2015. Airbus was the first aircraft manufacturer to be ISO 14001 certified, and continues to show its commitment by having been recertified to ISO 14001: 2015 in November 2019, and confirmed by a certification surveillance audit in 2020 and 2021. The Company also monitors environmental regulatory developments to understand, evaluate and prepare for legal and regulatory evolutions applicable to its activities and products.
The Company’s environmental strategy is implemented operationally by dedicated multifunctional teams at corporate and/or divisional level. These cover topics such as industrial and site impact, product operation, supply chain or chemical substances.
Disclosure of environmental indicators. 
The Company actively monitors its environmental data throughout the organisation in order to measure the environmental impact of its operations, track its performance and communicate information on environmental matters to internal and external stakeholders. Since 2010, environmental data published by the Company is verified by external auditors. This data is included in the ESG data board at the end of this section.
As part of its transparency policy, the Company provides climate change related data and information to the CDP annually, providing its investors and other interested parties with the insight they need. In 2021, the Company has maintained the A- score obtained in 2020.
III. Risk Management. 
Environmental risk and opportunities are managed following the Company’s ERM system. A specific Sustainability and Environment ERM plan integrates additional requirements defined within the ISO14001:2015 certified EMS and provides a transverse set of rules applicable Company-wide to ensure a consistent management of environmental risks and opportunities.
Relevant criteria for the evaluation of environmental risks and opportunities include: financial impact, impact on environmental performance, impact on EMS certification, as well as legal, supply chain and reputational aspects.
Risks and opportunities are reported quarterly to the Executive Committee of each Division and top risks, including climaterelated risks, are consolidated at Company level to be brought to the attention of the Board of Directors and reviewed semiannually.
Climate-related risks. 
Climate-related risks (adaptation and mitigation) are described in “– Risk Factors – 4 Environment, Human Rights, Health & Safety Risks” and shall be deemed to be incorporated by reference and form part of the Non-Financial Information.


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IV. Implementation/Activities 1. Industrial operations. 
The Company has been working for many years on the reduction of its environmental footprint, not only its products and services but also its production and facilities. This started in 2006 with the Blue5 programme, supporting the 2020 Vision objectives for the reduction of the Company’s industrial environmental footprint.
High5+ revised targets in line with a “1.5°C” pathway and neutralising residual emissions by 2030 In 2019, the Company continued with the 2030 vision and extended its programme in order to anticipate increasing environmental regulation, foster employees’ engagement and provide answers to stakeholders’ expectations for the coming decade.
Named “high5+”, the programme is built on a set of ambitious reduction targets covering the five most material environmental impacts for the Company in order to reduce energy consumption, CO2 emissions, water withdrawal, Volatile Organic Compounds (VOCs) emissions and waste production. These objectives have been set in absolute value, with 2015 levels as reference, as follows: – CO2: reduce direct (scope 1) and indirect (scope 2) net GHG emissions by -63% by 2030 compared to 2015. This target has been set by applying the relevant “Science Based Target Initiative” (SBTi) methodology for a near-term target in line with a “1.5°C” pathway. While the Company is working on a detailed pathway for a long-term target in line with the SBTi Net-Zero standard, it has committed to neutralise the scopes 1 and 2 residual emissions from 2030 by using only carbon removals; – energy: reduce energy consumption from stationary sources by 20% by 2030; – waste: reducing the amount of waste produced by 20% by 2030 and divert 100% of the waste from landfilling and incineration without energy recovery; – air emissions: 0% increase of VOCs emissions by 2030; – water: develop strong maintenance and rehabilitation programmes to reduce drinking (purchased) water by 50%, with no increase in overall water withdrawal.
Annual objectives and CEO / executives remuneration In order to better embed this ambition into the Company’s performance management, short-term targets are established consistently. The Executive Committee agreed in 2020 to include a reduction target for 2021 (compared to 2020) of -3% for CO2 and -5% for purchased water (see table below) as part of the Company’s top objectives.
In 2021, the Executive Committee agreed to include reduction targets of -5% for CO2 for 2022 (compared to 2021) as part of the Company’s top objectives.
As such, these annual targets form part of the CEO’s and other Executive Committee members’ remuneration, see “– Corporate Governance – 4.2.1 Remuneration Policy”. In 2022, the CO2 target will also be included as a non-financial KPI in the variable remuneration of executives.
For 2021, the CO2 and water annual performance is described in the table below:
Target 2020 2021 2021 v. 2020 Covered scope. 
CO2 (ktons) -3% 811 754 -7% (-6% retained(1)) 91%
Water (m3) -5% 2 101 229 1 791 662 -15% 69%
Data audited by EY®
Annual objective on CO2. Geographical scope: In 2021: 48 sites. Scope of metrics: Scope 1 & 2 (including Oversize Transport) and excluding: refrigerant leakage, butane consumption, electricity on site from CHP, emissions due to processes. Scope 2 is location based with purchased guarantees of origin deduced. (1) Net of guaranteed origins in excess of amount planned for target setting.
Annual objective on puchased water. Geographical scope: In 2031: 35 sites in Europe, China, USA and Canada, excluded: subsidiaries and Airbus Helicopters sites. Scope of metrics: Volume of purchased water. Scope: The TCO scope os reviewed annually. 2020 data were updated to reflect change in TCO scope accordingly.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 64 Airbus / Registration Document 2021. 
GHG emissions and energy reduction Stationary sources (e.g. heating, cooling, manufacturing processes etc.) account for c.70% of GHG emissions at the Company’s sites and mobile sources (ground vehicles, “Beluga” air transport operations, flight test, etc.) for c.30%. Action plans for reducing emissions from stationary sources mainly rely on increasing energy efficiency and using low carbon energy sources, while plans for reducing mobile sources emissions include switching to lower emission vehicles where possible and avoiding emissions through better planning of flights and logistics and using lower carbon fuels (e.g. sustainable aviation fuels (SAF)).
Fig. High5+ CO2 performance vs. revised ambition 2015 2021 611 2030 0
500 0
100 200 300 400 500 600 700 800 900 1 000 1 000 2 000 1 500 ktons CO2e - Scope 1&2. 
Deliveries. 
Actuals Target Ambition Revised ambition Deliveries 827 -63% vs 2015. 
In 2021, scope 1 and 2 GHG emissions have decreased by around 6% (7% on TCO scope), primarily due to oversize transportation efficiency and operation improvements, reduced flight tests activities and European emission factors improvement that more than offset production ramp-up impact.
Since 2019, SAF is used in the operation of the Company’s Beluga transport aircraft for the purpose of internal logistics. In 2022, flight test activities will also start using SAF as part of the Company’s revised GHG emissions reduction plan. The share of SAF used in these activities will progressively increase to 50% by 2030.
In the same timeframe, the share of renewable electricity used in industrial operations in Europe will also progressively increase, starting with an increase of 10% of guarantee of origin (GoO) certificates per year and the incorporation of long-term power purchase agreements (PPAs). The PPA project was launched in 2020 and achieved a major milestone in 2021 with the validation of the requirements to purchase renewable and low-carbon energy as well as the selection of suppliers to be finalised in 2022. This will allow the Company to accelerate its ambition to secure 100% renewable and low-carbon energy supply to all sites in Europe by 2024. The Company is investigating opportunities in other regions (eg. US, China) to follow the approach applied to Europe.
In addition, the Company uses an internal carbon price to support investment with positive energy and CO2 reduction impacts on operations. In 2021, this price was updated from 30 €/tCO2 to 150 €/tCO2, giving a clear signal to project leaders on the importance of CO2 footprint reduction and enabling a strong acceleration of project portfolio implementation.
Carbon offsetting and neutralising residual emissions Carbon offsetting: in 2019, the Company introduced a mechanism to compensate emissions of activities for which reduction measures and use of renewable energy are not sufficient to meet the internal targets, such as air and sea activities, as well as emissions from air business travel. This mechanism follows an approach of first avoiding and reducing GHG emissions in absolute value to later compensate for residual emissions. The Company built a rigorous procurement process based on the concepts of additionality, real (permanent) reduction, prevention of double counting, prevention of overestimation and no additional harm. As a minimum, the carbon offsets need to be certified by the Gold Standard or Verra or Verified Carbon Standard or Climate, Community and Biodiversity Standards and the supplier needs to show proof of how each one of the mentioned criteria were met. In addition, understanding that these carbon offsetting programmes may have gaps in their methodologies, additional proof was requested of how such gaps are managed by the provider. Moreover, societal aspects were considered, such as prevention of child labour, respect of human rights and the relation with the communities surrounding the projects. The volume of offsets required in 2021 is about 40ktCO2e, procured through offset


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 65 Airbus / Registration Document 2021 producer South Pole in the form of a cluster of compensation and removal projects: aforestation (VCS), landfill gas and waste gas (GS-VER), forest conservation (VCS-CCBS).
Neutralisation of residual emissions: as part of 2030 road map, the Company is developing a plan to neutralise residual emissions. The plan will follow as a minimum the SBTi “Net Zero” standard and the current scientific understanding in its definition of neutralisation by including only permanent removal and storage of carbon from the atmosphere.
Water management The Company’s water usage is mostly linked to sanitation and general uses (around 85%), while the rest is used in production related processes.
In 2021, the purchased water volume followed a similar trend as CO2, decreasing by 15%. This reflects the increase in remote working (reduced presence on site), also resulting from the COVID-19 situation, as well as an increased water-efficiency and leak repair campaigns. Increased focus is put on the local level of water stress: in 2021, an analysis was conducted based on the World Resource Institute’s (WRI) Aqueduct Water Risk Atlas tool in order to understand where the Company’s activities have the greatest impact on water resources. In 2022, the action plan will be adapted to reflect the priorities accordingly.
Air emissions Air emissions, primarily referring to VOC emissions related to surface treatment, are mostly impacted by the number of deliveries. Substance substitution may also lead to the use of new chemicals with more VOC emissions which need to be monitored. Overall VOCs emitted are stable, reflecting the effort on product substitution even if production rate has increased compared to 2020.
Material consumption and waste management The Company promotes the development of a circular economy model, and is proactive in seeking ways to recover, reuse and recycle materials beyond their initial life.
Not only does the Company send around 50% of its waste to be recycled, but already, through the TARMAC Aerosave joint venture, more than 90% of an aircraft’s weight is recycled or reused through a selective dismantling (reverse manufacturing) process.
Regarding waste management, a multifunctional team is currently working in order to meet the high5+ ambition, gathering skills across the organisation such as engineering, information management, procurement, industrial operations and facility management.
The focus has been on standardising the existing practices towards waste collectors in order to take into account the involved regulatory framework and to enhance data monitoring and reporting needs. There are also strategic projects ongoing to clarify and enhance site monitoring strategy as well as on waste recycling.
Hazardous waste In the Company’s European operations, the main sources of hazardous waste are contaminated packaging and chemical waste, especially waste from surface treatment activities, oil, fuel and various chemicals. While chemical waste reduction remains a priority, this is a topic also driven by chemical regulations, the evolution of which may impact the reduction roadmap’s ambition and timing (see Chemical Substances section below).
Biodiversity When building a new site or extending an existing one, the Company engages with local partners on conservation and remediation projects to preserve flora and fauna where impacted by the Company’s industrial activities.
Digitalisation The Company leverages digitalisation as an enabler to optimise and reduce its environmental footprint. For example, some applications target to improve design, material utilisation or to optimise critical resources usage.
At the same time, the Company strives to minimise the direct increase in the environmental footprint as a consequence of digital technologies development.
Life cycle thinking and conscious design The Company invests in Life Cycle Assessment (LCA) for environmental impact accounting associated with a specific product in accordance with the requirements specified in the standard ISO14040. Detailed LCA studies have been completed for the A220, A320neo and A350XWB product lines, covering over 95% of the Company’s deliveries of commercial aircraft products in 2021. These studies are currently being verified by a third party auditor.
In addition, this holistic approach is used to provide a framework for projects to make environmentally conscious design choices to reduce projects footprint and optimise aspects such as product end-of-life management and critical raw materials usage. As an example, as part of its Ecodesign initiative, the Defence and Space Division used LCA for the development of the Sentinel satellites that are built for the European Space Agency (ESA).
Chemical substances Many substances used in the global aerospace industry to achieve high levels of product quality and meet stringent technical performance, airworthiness and reliability requirements are subject to strict regulations.
In the aerospace industry, regulations on substances impact key processes and products, such as surface treatments, paints and fire protection.
The Company remains committed to moving towards replacement of such substances in products and processes. To help achieve this, the Company has put in place a portfolio of activities and projects, working with suppliers to identify, develop, qualify and deploy new technologies and solutions that avoid the use of substances classified as posing a risk to human health or the environment, whilst satisfying airworthiness, certification and performance requirements.
The Company also engages with suppliers to promote the adoption of a similar approach through regular communication and more widely, by working together with the aerospace industry to promote worldwide harmonisation of regulations and ways of working, taking into account the sector’s safety and lifecycle specificities.


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Using information obtained from its suppliers, the Company tracks, registers, assesses and declares regulated substances. Since 2011, the Company has analysed the impact of over 1,100 substances and qualified and deployed substitutes for over 100 substances in 300 products.
Currently, the Company is actively working to substitute 65 substances in its own design, and an additional 45 in its supply chain, over the next five years.
The Company invests substantial time and resources in research and development for technologies that use alternatives to regulated substances. When it can be demonstrated that these technologies meet the strict safety and reliability criteria required for aviation, the Company seeks to implement them in its aircraft design and manufacturing. For example, the Company is, in cooperation with its suppliers, developing, qualifying and progressively deploying on all its new aircraft, new Chromatefree corrosion protection and paint systems for aluminium structures. Another example is the halon replacement project that researches alternatives to halon, a highly regulated ozone depleting substance, used for the fire extinguishing systems in engines and cargo areas.
Noise Noise around the Company’s sites can also be an important topic for neighbouring communities. The Company is actively engaged with local authorities and the affected population to minimise its impact, by adapting operating times and actively seeking to reduce the noise at the source. In Toulouse, Airbus has launched the Median initiative regrouping actors in charge of flight activities around the airport to find the most effective solution to reduce noise levels.
Light pollution caused by Airbus activities has been deemed to be non-material to the Company’s value chain.
2. Product operations. 
According to “Our World in Data”, air transport as a whole represents approximately 2% of global human-induced GHG emissions, and around 12% of the transport sector emissions – see graph 1.
Graph 1: Global greenhouse gas emissions by sector – source: Our World in Data with data from Climate Watch, the World Resources Institute (2020)
Energy 73,2%
Agriculture, Forestry & Land Use 18,4%
Waste 3,2%
Industry 5,2%
Energy 73.2%
Agriculture, Forestry & Land Use 18.4%
Waste 3.2%
Industry 5.2%
En er gy u
se in. 
I nd us tr y
(2 4.
2 %)
Tr an sp or t ( 16 .2 %)
En er gy u
se in b
uil di ng (
17 .5 %)
Co mm erc ial (6.
6% )

R esi de ntia l b uild ing s ( 10.
9% )
Iro n a nd ste el ( 7.2 %)
Non-ferrous metals (0.7%)
Chemical & petrochemical 3.6%
Food & tobacco (1%)
Paper & pulp (0.6%) Machinery (0.5%)
Other industry 10.6%
Road Transport 11.9%
Aviation 1.9%
Shipping 1.7%
Unallocated fuel combustion 7.8%
Fugitive emissions from energy production 5.8%
Energy in Agriculture & Fishing (1.7%)
Cement 3%
Chemicals 2.2%
Wastewater (1.3%)
Landfills 1.9%
Grassland 0.1%
Cropland 1.4%
Deforestation 2.2%
Crop burning 3.5%
Rice cultivation 1.3%
Agricultural soils 4.1%
Livestock & manure (5.8%)
Rail (0.4%)
Pipeline (0.3%)


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 67 Airbus / Registration Document 2021. 
The Company is committed to contributing to meeting the Paris Agreement targets and taking a leading role in the decarbonisation of the aviation sector in cooperation with all stakeholders. The Company is convinced that aviation can achieve net zero CO2 emissions by 2050. This is why the Company has the ambition to develop the world’s first zero-emission commercial aircraft by 2035. In parallel, the Company is also developing a multifaceted climate-impact programme for commercial aircraft. This includes a focus on new aircraft technology development, sustainable aviation fuel (SAF), hydrogen, air traffic management (ATM) solutions and carbon removal solutions.
Aviation industry targets The aviation sector’s measures for reducing its environmental footprint started decades ago and significant achievements have been made. Since the 1990s, the sector has improved significantly the fuel and CO2 efficiency of subsequent generations of aircraft, thereby reducing CO2 emissions per revenue passenger kilometer by more than 50%.
In 2008, the aviation sector was the first to agree at sectoral level on ambitious CO2 emission reduction goals through the Air Transport Action Group (“ATAG”) by committing to an aspirational goal of reducing net emissions from aviation by 50% by 2050 compared to 2005 levels. In September 2021, ATAG updated its ambition and commitment with the 2021 edition of the “ATAG Waypoint 2050” report to reflect the industry’s increased ambition to achieve net-zero carbon emissions by 2050 and contributing to the Paris Agreement goals.
Along with the revised ambition, ATAG provided several scenarios with ranges of improvement for each mitigation option (technology and design improvements, operational and ATM enhancements, SAF and hydrogen non-drop-in solutions, and International Civil Aviation Organisation’s (“ICAO”) Carbon Offsetting and Reduction Scheme). In the most ambitious scenario, a reduction of up to 40% of CO2 emissions can be achieved through technological developments, as illustrated by Graph 2 below.
Graph 2: The aviation industry’s roadmap to net zero carbon emissions by 2050 2015 500 0
1,000 1,500 2,000 2,500 2020 2025 2030 2035 2040 2045 2050. 
Technology Latest generation aircraft. 
Operations and infrastructure. 
Sustainable Aviation Fuels. 
Offsetting. 
INDUSTRY 2050 GOAL. 
CO2 emissions (millions of tonnes)
Source: Airbus based on ATAG Waypoint 2050 report (2021) – Scenario 3: “aspirational and aggressive technology perspective”
In Europe, the EU Green Deal creates conditions and opportunities for the Company and the European aviation industry to speed up the transition: the Company shares the ambition to reach a net-zero carbon aviation ecosystem in Europe by 2050, and will contribute to the EU’s “2030 Climate Target Plan”. At international level, the Company actively supports and strongly encourages ICAO to introduce a global ambition by setting a meaningful long-term aspirational goal to reduce CO2 emissions from international civil aviation, whilst maintaining a global level playing field.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 68 Airbus / Registration Document 2021. 
The Company’s roadmap to reducing emissions The Company believes that an approach which focuses on accelerating technological development, in complement to a dynamic deployment of SAF, should be pursued. This would form a strong basis for the development of hydrogen-powered aircraft and the associated infrastructure and minimise the recourse to offsetting to achieve the ambition.
The Company is investing in and focusing its efforts on five complementary strategic pathways to reduce its environmental footprint, in support of the overall sector ambition as highlighted above. In 2021, the total research and development spend of the Company amounted to € 2.7 billion.
Strategic pathway 1. Renew current fleets with best in class aircraft The Company is continuously improving its products through new designs, advanced materials, upgraded systems and more fuel-efficient engines. Thanks to significant investments into new aircraft technology and designs, the Company’s commercial aircraft products have reached a rolling average of 2.1% fuel efficiency improvement annually over the past ten years, exceeding targets set by the industry through ATAG – see graph 3.
The Company’s commercial aircraft portfolio includes the most efficient aircraft product line: – A350 and A330neo offer 25% reduction in fuel burn and significantly reduced noise footprints versus the previous generation of aircraft; – the A320neo family brings a 20% reduction in fuel burn, and nearly half the noise footprint compared to previous generation of aircraft; – A220 offers 25% reduction in CO2 emissions per seat versus previous generation of small single-aisle aircraft, 50% reduction in noise footprint and 50% fewer NOx emissions than the standards.
Graph 3: Average intensity metric (gCO2e/pax.km) of sold products 2011 2013 2015 2017 2019 2021 55 60 65 75 80 70. 
The average emission intensity of delivered commercial aircraft has decreased by 21% in the last 10 years. 
Intensity metric (gCO2/pax.km)
Delivery year. 
This continuous improvement is also reflected by the Company’s contribution to Europe’s CleanSky2 programme, with the use of new materials as well as the design and implementation of new aerostructures and technologies aiming to achieve CO2, NOx and noise reductions. For this purpose a military aircraft C295 from the Company has been used as an in-flight technology demonstrator (flight test bed).
Strategic pathway #2. Investing in technologies enabling the Company to market zero-carbon vehicles The Company is committed to contributing to developing, building and testing advanced technologies improving the aerodynamic and structural efficiencies combined with advanced propulsion systems– to enable the aviation industry to reduce CO2 emissions of commercial aircraft, helicopters and future urban air mobility vehicles.


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Zero-emission commercial aircraft ambition The Company’s work in electric flight has laid the groundwork for our future concept of zero-emission commercial aircraft.
The Company believes hydrogen is one of the most promising technologies to reduce aviation’s climate impact. If generated from decarbonised electricity through electrolysis, it generates little-to-no CO2 emissions and would essentially allow aviation to be powered by decarbonised energy.
Aviation will be an end use application of hydrogen. The Company sees two primary uses for hydrogen: – Hydrogen can be combusted through modified gas-turbine engines, or converted into electric power via fuel cells. The combination of both would create an efficient hybrid electric propulsion chain powered entirely by hydrogen. – Hydrogen used to create eFuels (power-to- liquid or powerbiomass-to-liquid synthetic fuels in combination with carbon from biomass or enhanced carbon sink sources).
On 21 September 2020, the Company revealed three different hydrogen-powered “ZEROe” concept aircraft. Those illustrate the research that the Company is investing in, with the objective to bring a zero emission commercial aircraft to market in 2035. From hydrogen propulsion to hydrogen-based synthetic SAF, from pod configuration to blended-wing aircraft, the Company is evaluating, maturing and validating radical technological breakthroughs which could be hosted on its zero-emission aircraft by 2035.
The Company is also investing in the required facilities to test these new technologies. Inaugurated in October 2019, the E-Aircraft System House (“EAS”) is, with more than 3,000m2, the largest test house dedicated exclusively to alternative propulsion systems and fuels in Europe. This means the Company can now test the latest electric motors and hybrid-electric engines directly on its own premises, and develop its own low-emission alternative propulsion units.
The Company goes beyond technology maturation by collaborating with the appropriate ecosystems. In 2019, the Company signed a Memorandum of Understanding with airlines such as SAS Scandinavian Airlines and easyJet to jointly research a zero-emission aircraft eco-system and its infrastructure requirements. The Company is also part of several major hydrogen alliances (such as the Hydrogen Council, Hydrogen Europe, European Clean Hydrogen Alliance etc.) and launched a joint-venture in 2020 with ElringKlinger in order to benefit from the huge cross-industry experience of other industries, and accelerate its ambition.
Zero-emission urban air mobility ambition Since 2014, the Company has been exploring how recent technology advancements – from battery capacity and autonomy to electric propulsion – could help drive the development of new kinds of aerial vehicles with the potential for zero emissions when powered by renewable energies. In May 2018, the Company created the Urban Mobility entity to take its exploration into cutting-edge commercial urban air mobility solutions and services to the next level.
The idea for a compact “flying taxi” first came from the Company’s desire to take city commuting into the air in a sustainable way. Airbus has learned a lot from the test campaigns with two demonstrators: CityAirbus and Vahana. The CityAirbus NextGen revealed at the Airbus Summit in September 2021 combines aspects of both, with the new architecture striking a balance between hover and forward flight. The prototype is paving the way for first flight in 2023 and certification expected around 2025.
Beyond the vehicle, Airbus is working with partners, cities, and city inhabitants in order to create the ecosystem that is essential to enabling this new operating environment to emerge in a true service to society.
Strategic pathway #3. Investing in smart ATM solutions and optimised operations Improving the efficiency of air transport operations and infrastructure could contribute to emission reductions by around 10%. The Company therefore supports initiatives aimed at reducing ATM inefficiencies (such as the Single European Sky Air Traffic Management Research programme – SESAR), while working on disruptive practices, such as formation flying.
Through its subsidiary Navblue, the Company provides services helping its customers to minimise fuel consumption with best operational practices, innovative services and training. The Company also focuses on developing fuel saving procedures for airports and ground operations to minimise the use of engine power and auxiliary power units (APU) while the aircraft is on the ground.
In November 2019, the Company launched the fello’fly project which aims to demonstrate the technical, operational and commercial viability of two aircraft flying together for long-haul flights. Through fello’fly, a follower aircraft will retrieve the energy lost by the wake of a leader aircraft, by flying in the smooth updraft of air it creates. This provides lift to the follower aircraft allowing it to decrease engine thrust and therefore reduce fuel consumption in the range of 5-10% per trip. By end 2020, the Company’s fello’fly had signed agreements with two airline customers; Frenchbee and SAS Scandinavian Airlines, as well as three Air Navigation Service Providers (ANSP) to demonstrate its operational feasibility; France’s DSNA (Direction des Services de la Navigation Aérienne), the UK’s NATS (National Air Traffic Services) and European Eurocontrol. In November 2021, two A350 test aircraft conducted the first-ever transatlantic fello’fly flight, confirming the potential for fuel savings of more than 5% during long-haul flights.
Strategic pathway #4. Developing and deploying SAF, with all aircraft types 100% SAF compatible before 2030. Energy source is the main driver in the CO2 emissions and CO2 intensity of products coming from the Company’s commercial aircraft activity. Although they only represent a small share of aviation’s current fuel use, SAF (biomass-based or synthetic) are key in the air transport sector decarbonisation strategy.
Since 2008, the Company has acted as an important catalyst in the certification process, demonstration flights, partnerships and policy advocacy of sustainable jet fuel. Since 2011, over 360,000 commercial flights have used SAF and more than 1 million flights with SAF are expected by 2025 (source: IATA, flynetzero, 2021).
All the Company’s commercial aircraft are already certified to fly with a fuel blend of up to 50% SAF. SAF produced by using most advanced pathways can provide CO2 emission reductions of up to 80% throughout their life cycle. This means that already today the emissions from aircraft currently offered by the Company could be reduced by ~40% if their full blending capability was used. The Company’s ambition is for its commercial aircraft to


1. Information on the Company’s Activities / 1.2 Non-Financial Information 70 Airbus / Registration Document 2021 be capable of being operated with 100% SAF before the end of the decade (third scenario on the chart below, “Full aircraft potential”).
As detailed above (see “Aviation industry targets”), the Company supports decarbonisation scenarios which include an ambitious rollout of SAF using all possible pathways (HEFA, Alcohol to Jet, Fischer Tropsch, Power to Liquid, etc.). Under such scenarios, the Company estimates that products delivered in 2021 could see their life-time emissions reduced by around 17%, thanks to the gradual introduction of SAF during their operational life (second scenario on the chart below, “Anticipated SAF rollout”).
The Company is involved in two main research projects: VOLCAN and ECLIF3, conducted in partnership with important actors of the industry. Both aim at assessing the impact of 100% SAF on engine and fuel systems whilst measuring the positive impact on aircraft’s emission and fuel efficiency. First test flights took place in 2021 and the final outcomes will be publicly published by the project partners once available. Both projects will pave the way for going beyond current maximum blending levels for SAF (currently 50%). It will allow the Company to collect information and enable further research activities and technical work in order to reach the goal of gaining 100% SAF certification for commercial flights.
However, today the price and global production capacity remain the main constraints for operators, preventing largescale incorporation of these types of fuels. The rapid scale-up of SAF plays a major role in aviation’s decarbonisation scenarios, decreasing emissions of the Company’s products in use. As of 2021, 36 countries have implemented SAF policies to support industry’s ambition, according to IATA. The Company supports policies that would incentivise their production and usage at affordable costs and is engaged in many initiatives and partnerships promoting the development of SAF production and use (World Economic Forum Clean Sky for Tomorrow Coalition and First Movers Coalition as examples).
Strategic pathway #5. Encouraging temporary CO2 emission compensation schemes Finally, CO2 emission compensation will be instrumental to stabilising aviation emissions in the medium term until disruptive solutions reach market maturity. For that reason, the Company supports ICAO’s CORSIA as the only global market-based measure for international civil aviation.
Reporting of emissions from value chain. 
Scope 3 Use of sold products The main contribution of the Company’s value chain on climate change comes from the use of sold products, especially related to its commercial aircraft activities.
In order to provide the level of transparency expected by stakeholders and following recommendations from the TCFD, the Company reports in-use emissions of the products it delivers (Scope 3 – Use of sold products). This started in 2020 with the disclosure of emissions from commercial aircraft products, and was extended to civil helicopters in 2021. The Company will continue to progressively extend the scope of reporting to other families of products, for which the calculation methodologies are still under development. Nevertheless, current results and advanced estimations have shown that the vast majority (over 90%) of the Scope 3 – Use of Sold Product impact of the Company’s products is due to the commercial aircraft family of products, and that this situation is unlikely to change once all the product families will have been assessed.
Fig. Scope 3 emissions reduction levels in potential SAF scenarios, in My CO2e. 
Assuming constant Current SAF usage (0.1%)
Impact of Anticipated SAF rollout as per ATAG Waypoint 2050 F4. 
Full aircraft potential (50% SAF with 80% abatement) 383 278 464. 
Commercial aircraft products In 2021, the Company delivered 611 commercial aircraft. Based on an average life-time in service of around 22 years (average life-times specific to each aircraft type were used in the calculation), the total CO2 emissions for these products over their anticipated life-time is estimated at around 460MtCO2e (of which around 80Mt are linked to upstream fuel production), which translates to an average efficiency of 62.6gCO2e per passengerkilometre. In 2020, the Company delivered 566 aircraft with resulting estimated life-time emissions of around 440MtCO2e (of which 80Mt are linked to upstream fuel production) and average efficiency of 63.1gCO2e per passenger-kilometre.
For the purpose of this calculation, the operating conditions of the aircraft were considered to be static over the whole service life. Therefore, the numbers above do not reflect the anticipated gradual introduction of decarbonisation measures such as SAF, and as a result constitute a “worst case scenario” in


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 71 Airbus / Registration Document 2021 terms of carbon intensity. As such they represent an unmitigated scenario that can only serve as a general basis to assess carbon emissions efficiency improvements over time.
In order to better understand the potential impact of SAF on scope 3 emissions, this chart shows three scenarios comparing the current SAF usage, an ambitious deployment scenario as envisaged by ATAG and the maximum reduction potential as allowed by the current 50% blend limit.
The Company calls for a sectoral alignment on these methodological aspects through the relevant international bodies, in order to provide consistency in the way such impacts are calculated and communicated throughout the air transport sector.
Civil helicopters In 2021, for 192 civil helicopters delivered, the Company estimated a scope 3 “use of sold product” impact around 1.13 MtCO2e, of which around 0.20 MtCO2e are linked to upstream fuel production. In 2020, for 201 civil helicopters delivered, the resulting scope 3 “use of sold product” impact was around 1.09 MtCO2e, of which around 0.19 MtCO2e are linked to upstream fuel production. In 2021, the internal forecast of flying hours used for the calculation was updated, resulting in a slight increase in emissions despite the lower number of deliveries compared to 2020.
Methodology -- The Company’s emission calculation methodology was developed by a team consisting of key personnel from the engineering and environment departments and is aligned with the guidance provided by the Greenhouse Gas Protocol. The external auditor performed a review of the calculation methodology applied by Airbus and assessed the reasonableness of the supporting assumptions. -- The Company has used a number of assumptions based on internal and external information including assumptions based on publicly-available data: -- For commercial aircraft these assumptions include the aircraft load factor, the current penetration rate of sustainable aviation fuels, their CO2 reduction potential and the indirect emissions index from jet fuel production, emission factors, as well as aircraft operational usage and average in-service lifetime. Primary data collected within the Company was also used, such as the type of sustainable aviation fuel considered or aircraft performance and configuration parameters; -- For civil helicopters, these assumptions include feedback from the market in terms of helicopters operations such as flight hours per year and region where the helicopter is operated. Direct and indirect emissions are included over the product’s entire service life. Emission factors are consistent with those used in the commercial aircraft methodology. Sustainable Aviation Fuel impact is not considered. -- Civil helicopters considered for Scope 3 calculations correspond to helicopters produced during the year having reached the “available for flight” status.
Key Hypothesis -- The estimation includes CO2 emissions. Emissions related to CH4 and N2O were excluded given the very low levels produced by modern aircraft engines. Emissions related to NOx were estimated and excluded given the uncertainty related to the NOx emission factors and the relatively low contribution of this emission stream. -- Emissions related to commercial aircraft engine start and taxing have been included, however, emissions from the auxiliary power units (APU) and ground handling equipment have been excluded. -- For helicopters, the flight hours model is directly derived from in-service helicopters.
Scope 3 Purchased goods and services. 
In 2021 for the first time, the Company has published an estimate of the GHG emissions arising from the goods and services it purchases (Scope 3 – Purchased goods and service based on its 2020 spent). The Company estimates that the 2020 emissions of purchased goods and services were around 11.3MtCO2e.
Methodology -- This evaluation was performed using a dedicated tool developed by the International Aerospace Environmental Group (IAEG) offering a choice between two approaches: a “spend based” approach, allocating emissions to each amount spent in specific commodities and a “mass based” approach, allocating emissions to quantities of materials purchased. For this first evaluation, the Company has used the “spend based” approach. While this method embeds a certain degree of uncertainty, considered high by the IAEG on a certain number of emissions factors used in the methodology, it provides a relevant view of the sources of GHG emissions in the Company’s supply chain and enables comparison of the various Company’s scopes throughout its value chain. The calculation will be refined in future years as better quality data becomes available.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 72 Airbus / Registration Document 2021 1.2.3 Build Our Business on the Foundation of Safety and Quality. 
Sustainable space products Beyond commercial aviation, the Company’s Defence and Space Division delivers satellites and intelligence that informs decision making on significant environmental issues. Its aerial imagery of climatic and environmental changes around the planet reveals the scale of change and dependencies at work.
The Company is working to ensure a sustainable space environment to prevent space debris and protect valuable national assets, such as satellites, that are in orbit around the globe.
The Company through its Defence and Space Division is the first company to test technologies which clear out space junk and avoid spacecraft collisions. Three main debris-removal technologies have been tested in orbit: harpoon, net and vision-based navigation. As space law evolves, the Company is committed to ensuring its products meet these new regulations (such as the French Space Operations Law requiring to avoid satellite collisions and ensure the safe removal of spacecraft from useful orbit at the end of life) as it believes in the importance of promoting sustainable space a. Aviation and Product Safety. 
I. Introduction. 
The Company believes that everyone in the aerospace industry has a role to play to further enhance the safety of the air transport system. Flying today is safer than ever before, and collective efforts continue to ensure that it will be even safer by anticipating and responding to risks, threats and challenges. Whilst the foundations of the air transport system are built on regulatory compliance, the safety culture at the Company goes beyond compliance with certification and continued airworthiness requirements to also focus on safety enhancement activities in products and services. This also extends to the products and services of the Company’s Defence and Space Division that offer communication, collaboration and intelligence knowledge solutions to assist government authorities, emergency service providers and healthcare providers. For further information, see “– Information on the Company’s Activities – 1.1.4 Defence and Space”.
Aviation / Product Safety GRI SASB SDGs Others 416 – Customer Health and Safety Product Safety 12. 
Highest governance body(ies) involved Product Safety Board (PSB), involving several Executive Committee members. 
Related Corporate Policies Airbus Product Safety Company Policy (A67)
Management system Relevant certifications. 
SMS Corporate Safety Management System. 
Products. 
EASA regulation (Parts 21/145/147/M/ORA), EU 996/2010, EU 376/2014 (for Commercial Aircraft products), ECSS-Q ST-40-C (for Space Products) and Def-Stan 00-56 (for Defence Products) EN9100, EN9001, EN9110, AQAP 2110, AQAP 2210 and AQAP 2310. 
Operations. 
Key metrics 2020 2021. 
Fatal accident rate Industry wide(1) 0.04(Gen4) 0.03(Gen4) % SMS officers nominated 100% 100% % SMS officers trained 92% 100%
Metrics assumptions (1) 10 year moving average fatal accident rate (per million flights) per aircraft generation.
Additional resources Code of Conduct , Product Safety on Airbus.com , Safety in Operations on Airbus.com ,
Safety investigation on Airbus.com , Health Onboard , Accident Statistics website. 
II. Governance. 
A dedicated safety organisation within the Company acts as an independent voice of safety. The Chief Product Safety Officer for the commercial aircraft activities of the Company reports directly to the CEO and is the Chairman of the Product Safety Board (PSB). Several Executive Committee members and senior executives are part of the PSB. This ensures proactive safety decision-making is based on multidisciplinary assessments at the highest decision level of the Company. The PSB makes decisions regarding technical aspects, safety governance and strategy. Regular reviews with the Board of Directors are also performed.


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1.2 Non-Financial Information 73 Airbus / Registration Document 2021. 
Airbus Safety Management System. 
Consistent with ICAO Annex 19, the Company’s Corporate Safety Management System (“SMS”) is based on the four ICAO pillars: safety policy and objectives, safety risk management, safety assurance, and safety promotion. The Company’s Corporate SMS principles also integrate the end-to-end approach to safety with the Company’s suppliers and operators. This is facilitated by an appointed Corporate SMS Officer and SMS Officers per function with support from a network of nominated SMS Representatives throughout the Company.
During 2020-21, Airbus Defence and Space evolved its Product SMS by adapting governance principles from established Airbus Commercial and Military Airsystems SMS to all of its programme lines, including cybersecurity systems, land communications, surveillance systems, drones and more. Programme Line Safety Boards and a shared online reporting tool have been established. Implementation is ongoing.
Airbus Safety Strategy. 
To support the Airbus vision for safety – “we constantly strive to enhance safety together in our quest to reach zero accidents.” – the Company’s product safety strategy is to: – implement programmes to continuously enhance the safety culture to ensure each employee has a personal and collective engagement consistent with the Airbus safety values; – provide means so that any employee can report safety concerns; – ensure product safety is a priority in decision making, and – share lessons learned and best practices with internal and external stakeholders, and take action as appropriate also based on identified top safety threats or opportunities.
Regulatory Compliance. 
Product certifications are provided by the competent aviation authorities including the main civil aviation authorities and specific military authorities. Within each Division, and according to their respective functions, the Company works to ensure compliance through design and certification of products under EASA Part 21 Design Organisation Approvals (DOA); ECSS-Q ST-40-C (for Space Products) and Def-Stan 00-56 (for Defence Products); manufacturing under Production Organisation Approvals (POA); monitoring of in-service safety through approved EASA Part-M Continuing Airworthiness Management Organisations (CAMO); aircraft maintenance and retrofit operations conducted in line with civil and military EASA Part 145 regulations; and training provided to flight crews, cabin crews and maintenance crews through EASA Part 147 Approved Training Organisations (ATO).
The certified organisations within the Company where specific approvals are granted by the aviation authorities, are audited and monitored by these authorities to ensure compliance with regulatory requirements. Additional audits are conducted by third parties as part of the quality certifications appropriate to each Division, including EN9100, EN9001, EN9110, AQAP 2110, AQAP 2210 and AQAP 2310.
Commitment to “Just and Fair” Culture. 
This commitment ensures that the appropriate reporting channels are available and known to all employees to report product safety and quality related matters in an atmosphere of trust and empowerment. It is documented and endorsed with the signatures of the CEO, Executive Committee members and top management.
III. Risk Management. 
Applying proactive risk management principles has contributed to significant improvements for the safety of flight in recent decades. This risk management approach drives the Company’s Corporate Safety Process, which has been in place for more than 15 years. It supports the principles of the Company’s safety enhancement culture, going beyond compliance with certification and airworthiness duties.
IV. Implementation/Activities. 
Consistent with its end-to-end approach and as part of its safety strategy, the Company has several collaborative initiatives that contribute to reinforcing resilience capabilities in the air transport system and enhancing the safety level of its products with all key actors.
For example, the Company is working with its supply chain to extend its safety enhancement principles with its suppliers. This includes specific SMS forums and initiatives with its suppliers, which reinforce the collaborative approach for optimising responses to in-service feedback and reports.
D10X (short for Air Transport Safety, Destination 10X Together) is another collaborative initiative with airlines. The aim of D10X is to propose pragmatic solutions, together with operators of Airbus aircraft, for the key safety issues identified within this network.
Sharing safety information is a key contributor to increasing the level of safety. There have been 25 flight safety conferences with the Company’s customers since the first was held in 1994. Another means of sharing information is through “Safety first”, the Company’s safety magazine contributing to the enhancement of safety for aircraft operations by increasing knowledge and communication on safety related topics. It reaches over 1,000 aviation professionals daily via the website safetyfirst.airbus.com and the Safety first app.
In addition to these external safety promotion initiatives, the Company invests in internal safety promotion with the objective to continuously reinforce the safety culture of all employees. This is supported by different means including communication campaigns, training, safety awareness sessions, and development of a Safety Promotion Centre. SMS officers are nominated and trained in all key business functions to ensure implementation and operation of the SMS within the Company, including safety promotion. As of 31 December 2021, all SMS officers have been nominated and trained. The abovementioned commitment to a just and fair reporting culture is another example of an initiative that promotes the Company’s safety culture. These elements are integrated in the Company’s SMS action plan.
Airbus also continues to innovate to benefit from technological evolutions to further enhance both operations and safety.
All of these initiatives lead to continuous improvement of the safety record. This is illustrated in statistics (below) showing that the latest fourth-generation jets are the safest. All Airbus Fly-ByWire family aircraft (including A320, A330/A340, A380, A350, A220 fleets) are the latest fourth-generation aircraft.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 74 Airbus / Registration Document 2021 b. Cyber Security. 
I. Introduction. 
Cyber security risks have the potential to impact all business operations, employees, plus products and services if incorrectly managed – either in confidentiality, availability or integrity. As such, the company undertakes a continual process of cyber security risk identification and remediation, supplemented with significant cyber security capabilities for the prevention, detection and response to cyber threats and events.
Cyber security risk management is a core element of modern organisations, thus the Company has developed state of the art cyber capabilities for the defence, detection and response to emerging cyber threats. The cyber security paradigm adopts a compliance, regulatory and risk-based approach embedded across four asset bodies: IM, industrial, products & services, and people & workplace.
Developing cyber security as a function of the business, with the relevant capabilities and stakeholders, ensures an evolutionary approach for continued protection against emerging threats and to support the business in securely enabling its digital transformation.
10 Year moving average fatal accident rate (per million flights) per aircraft generation. 
Generation 2 Generation 4 2000 1.11 0.15 0.03 2001 2002 2003 2004 2005 2006 2007 2012 2013 2014 2015 2016 2017 2018 2019 2021 2020 2011 2010 2009 2008. 
Generation 3 0,00 0,25 0,50 0,75 1,00 1,25. 
Fig. (above) 10 year moving average fatal accident rate (per million flights) per aircraft generation.
Source of Data: official accident reports, ICAO, Cirium, and Airbus databases. Flight cycle data provided by Cirium.


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1.2 Non-Financial Information 75 Airbus / Registration Document 2021. 
Cyber security CRI SASB SDGs Others. 
Data Security 9, 12. 
Highest governance body(ies) involved Corporate Security Council Digital Security Team (cyber Security Validation Body)
Related Corporate Policies and Directives. 
A08 - Airbus Company Security Policy A1044 - Security Requirements for Company Information & Data Classification and Protection A1058 - Security Requirements for Information Systems Management A1043 - Security Requirements for Affiliates A 1664 - Security Requirements for Industrial Automation and Control Systems A 1666 - Requirements for Product Security A1015 0 - Requirements on Information Security for Suppliers A1015 1 - Specific Requirements on Information Security for IT Services Providers. 
Management system MC AS - Manage Airbus Company Security - aligned to ISO27001 standard MC AS 01: Monitor Identify & Report Company Asset Vulnerabilities MC AS 02: Assess & Treat Company Asset Security Risk. 
Key metrics 2020 2021. 
Number of data breaches reported to data authorities 1 1. 
Percentage involving confidential information 100% 100%
Cyber security awareness training e-learning participation (started 1 Jan. 2020, reporting period 1 Oct.-30 Sep.) 10,328 67,475. 
Corporate & IM Cyber Security Headcount 216,5 290. 
II. Governance. 
The Company has undertaken a cyber security transformation since 2019 with the establishment of a federated model to digital security encompassing accountable leaders in respective organisational structures such as IT, engineering and operations. A dedicated team for security governance was established, reporting to the company Chief Security Officer (CSO), responsible for the definition and audit of cyber security directives and methods aligned to major industry standards such as ISO27001 or IEC62443. The company Chief Information Security Officer reports to the CSO with a direct reporting line to Airbus CEO. Such an approach ensures localised accountability and reactivity to cyber risks with centralised governance, reporting, technical standards, and processes. Cyber security governance scope encompasses all Divisions and global operations plus affiliates.
Corporate Security Council. 
The Company has established a Corporate Security Council, chaired by the Chief Security Officer, for the coordination of security governance and to ensure consolidated security risk reporting from each of the four asset clusters; IT, industrial, product & services, and people & workplace.
Security governance directives. 
Security directives are published and audited to ensure the company business, including affiliates and subsidiary companies, follows the same standards for data protection and systems security. Key cyber security directives include: – A08 – Company Security Policy; – A1044 – Security Requirements for Company Information & Data Classification and Protection; – A1058 – Security Requirements for Information Systems Management; – A1043 – Security Requirements for Affiliates; – A1664 – Security Requirements for Industrial Automation and Control Systems; – A1666 – Requirements for Product Security; – A1015.0 – Requirements on Information Security for Suppliers; – A1015.1 – Specific Requirements on Information Security for IT Service Providers.
III. Risk Management. 
Confidentiality, integrity and availability are well-known to define cybersecurity objectives when thinking about systems risks. Corporate Security owns the accountability of security risk management and is in charge of defining cyber security risks taxonomy and managing the lifecycle in ERM, including strategy, organisation, roadmap and initiatives at Company-wide level.
In terms of cyber security, risk management is the aggregation of continual risk reporting, cyber security validation processes embedded within security by design principles for projects, applications and infrastructures – in addition to the implementation of digital security controls aligned to the Airbus enterprise security architecture standards.
Risk mitigation measures follow the principle of people, process, and technology controls to reduce likelihood and/or impact from cyber incidents. The Company incorporates mandatory cyber security training and awareness for all employees with additional engagements for employees in higher risk categories or where additional regulatory stipulations apply. Security processes are fixed through security governance directives, business management processes (e.g. MC.AS.01 Vulnerability Management), and operating models. Technical security controls are implemented and measured in accordance with ISO27001 and other industry standard information security management standards.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 76 Airbus / Registration Document 2021. 
The Company implements a number of key technical security controls in the reduction of cyber incident likelihood including the rollout of endpoint protection and data loss prevention tools, the implementation of multi-factor authentication, plus the adoption of enterprise security architecture approaches. To reduce impact from cyber events Airbus operates in-house security operations centers, covering both commercial and national activities; plus a Computer Emergency Response (CERT) team analysing cyber security threat intelligence and activating to rapidly investigate and contain cyber security incidents.
Cyber security risk management is under regular internal and external audit, confirming processes and implementation to both Airbus and Industry standards. Technical audits are also conducted regularly on applications, systems and infrastructures in the form of cyber security penetration testing.
IV. Implementation/Activities. 
During the course of 2021, a number of key initiatives have been undertaken to improve the cyber security position, reduce associated risks and decrease the likelihood of successful cyber attacks, including: – 100% coverage of core Divisional Company-issued laptops deployed with Endpoint Detection & Response (EDR) tools; – 100% of employees now able to access Google client side encryption tools for encryption of the company data in Google suite; – 35 of 35 high risk supplier connections now successfully migrated to the new standard secured supplier architecture; – Restricted CERT extension devised to ensure cyber incident response coverage across both commercial and national infrastructures.
Such activities have successfully reduced the Company’s overall cyber security risk picture, and specifically related to the increasing threat from ransomware.
V. Outlook. 
There are no signs globally that the threats of cyber attack will dissipate or slow; therefore it is critical that the Company maintains ongoing improvement and response activities in order to reduce associated risks. A number of key initiatives are central to this including: – Ransomware resilience: as one of the major risks, efforts continue with major investments into ransomware prevention in order to reduce both the likelihood of an incident, but also to significantly increase the resilience and reduce the time to recover critical applications and systems; – International localisation: extending the federated model of security to encompass international localisation of affiliates with enhanced risk reporting; – Secure digital transformation: enable digital transformation via the design development and deployment of updated security standards for cloud security, application hardening and zero trust networking; – Security Operations Centre (SOC) 2025 strategy: detecting and rapid response to cyber incidents is a key part of any security practice: thus Airbus will maintain and continue to scale the SOC activities to the needs of the business.


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1.2 Non-Financial Information 77 Airbus / Registration Document 2021 c. Health and Safety. 
I. Introduction. 
The Company considers health and safety as a top priority that is non-negotiable. Our goal is to enable an environment that’s safe and healthy for all. Risk prevention and the promotion of safer and healthier conditions in the workplace are key to enable us to improve the health and well-being of our employees and anyone else who works inside Airbus. By focusing our attention on this, it also helps to improve the nature of the task, working conditions, competitiveness, quality, engagement and sustainability.
Health and Safety GRI SASB SDGs Others 403 Occupational Health and Safety 8, 12 Vigilance Plan. 
Highest governance body(ies) involved Board of Directors / ECSC Executive Committee. 
Related Corporate Policies Occupational Health and Safety Policy A41, Airbus Code of Conduct. 
Management system Formal Health and Safety Management Systems. 
Relevant certifications ISO45001: certified sites cover~ 25% of employees. 
Key metrics (More in the ESG Data Board) 2020 2021. 
Lost-Time Injury Frequency Rate 3.81 3.21. 
Lost-Time Injury Frequency Rate – Commercial Aircraft 5.12 4.31. 
Near-miss – Commercial Aircraft 19,305. 
Total health and safety training hours delivered 103,070 128,795. 
Number of employees who received health and safety training 37,599 28,144. 
Number of employees having attended “EH&SCertificate” modules 1&2 418 1,309. 
Core entities with ISO 45001 or similar certification ~ one third % of the company-wide workforce covered 25%
Remuneration The Lost Time Injury Frequency rate at group level included in the variable remuneration for the Company CEO and executives. 2021 target was achieved.
KPI assumptions Metrics are reported Company-wide (FISH perimeter) unless stated otherwise. Reporting period for training-related metrics: 1 October to 30 September. 
Additional resources People Safety on Airbus.com ; Code of Conduct – incl. Health and Safety commitment. 
II. Governance. 
The Airbus Occupational Health and Safety Policy is a groupwide foundation for the management of health and safety within the workplace. The Policy applies to the Company’s commercial aircraft activities, to the Airbus Helicopters and Airbus Defence and Space Divisions, and also to the Company’s affiliates.
In 2021, an Airbus Occupational Health and Policy Statement was signed by Guillaume Faury, Airbus CEO, to enhance and reinforce the Policy principles.
The health and safety organisation is part of the Human Resources and Workplace Department under the ultimate responsibility of the Company’s Chief Human Resources Officer.
The organisation is called Environment, Health and Safety (EHS). The Head of EHS reports to the Chief Human Resources Officer, and is supported by local EHS business partners. There are also regional EHS business partners in China, North America and APAC. Cross-organisation expertise, support and coordination is provided by centres of expertise, including safety, industrial hygiene, ergonomics and operational environment and occupational health and wellbeing. The EHS organisation is responsible for the health and safety management system and for the operational application of the corporate environment and sustainability management system in the entities.
Approximately one third of the Company’s core entities in home countries are now certified to the ISO45001 Standard for health and safety management systems or have a similar certification. Company wide, this means that nearly 25% of employees work on sites where the health and safety management system is certified to ISO45001. Other sites have formal management systems that are not yet formally certified, but operate to the standards required by our health and management systems.
III. Risk Management. 
The role of the Airbus’ health and safety organisation is to anticipate, identify, evaluate and prevent or mitigate risks to safety, health and well-being, and the business, arising as a consequence of the Company’s work activities.
Health and safety requirements have been defined in a directive that applies company-wide, including to the Company’s affiliates. The Company’s affiliates report on their health and safety management status through the Internal Controls Self Assessment (ICSA) exercise.
Occupational health and safety risks are managed using the framework provided in the Company Methods for “Health and Safety Risk Management” and “Incident Management”. Those risks that are considered to have a high potential impact,


1. Information on the Company’s Activities / 1.2 Non-Financial Information 78 Airbus / Registration Document 2021 including in Airbus affiliates, are monitored by the Company’s Enterprise Risk Management (ERM) system.
In 2021, the Company-wide method for risk assessment and control was updated. This method consists of a sequence of logical steps to identify significant hazards, evaluate the risks and prevent, eliminate or mitigate them, following the hierarchy of control principles: elimination, substitution, engineering control, administrative controls and, as a final measure, personal protective equipment.
The method for reporting and managing incidents and near misses has also been refreshed. It harmonises incident reporting between countries, taking into account applicable local regulations. The investigation and root cause analysis process described in this method supports the identification of risks and related mitigation actions.
The principle health and safety concerns in 2021 consisted of the following topic areas: – COVID-19 and the necessary adaptation of work activities; – Working environment including for example, work at height; slip, trip and fall risks; site roads and infrastructure. – Machinery and equipment, such as hand held powered tools, cranes and jigs. – Physical agents, including noise, vibration and electricity.
– Substances and materials, such as those addressed in REACH regulation. – Psychological risk, including from the impact of COVID-19 confinement and the related Company adaptations. – In-situ contractors, including competence, interfaces and site transport.
The impact of the ongoing COVID-19 pandemic is a continuing challenge. However, the main causes of occupational injury in 2021 were once again related to slip, trip and fall accidents, ergonomic incidents, and the use of hand tools and equipment. These represented the majority of injuries recorded on the FISH (Federated Information for Environment, Safety and Health), global environment, health and safety platform. In fact, slip, trip, and fall accidents resulted in 25% of the lost time injuries included in the lost time injury frequency rate.
Employees and others on Airbus sites can raise health and safety concerns in a variety of ways. Employees can raise a near miss or incident declaration in FISH using a computer or mobile device. Line managers can share warnings and good practices using a red, amber, green flash alert process. A “go-look-see” process helps managers to identify risks and related mitigation actions. To support the promotion of a “speak-up” culture, the Company has the OpenLine to provide employees and third parties with an avenue for raising concerns.
IV. Implementation/Activities. 
The overall incident management harmonisation process is enabling improvements in data collection, analysis and the production of reports. This supports the Company-wide key performance indicators.
Airbus and its Divisions rolling 12 months employee lost time injury frequency rate. 
AIRBUS. 
J F M A M J J A S O N D 2021 0
1 2
3 4
5 6
3.73 3.54 3.48 3.50 3.61 3.57 3.59 3.45 3.40 3.38 3.22 3.21


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The rolling year of the lost time injury frequency rate end of year figure amounts to 3.21 Company-wide and to 4.31 in Airbus, excluding the Divisions. Company-wide Airbus experienced a more than 15% improvement in frequency rate. It has been positively impacted in 2021 as a result of the various safety activities and actions taken linked to the pandemic. Frequency rate figures are reviewed monthly by the CEO and the Executive Committee and the data shared with all executives and senior managers in a monthly webinar.
The FISH incident management module already covered all main sites in Airbus and its Divisions in France, Germany and Spain, and in the UK the Airbus commercial aircraft and the Airbus Defence and Space Division sites. It also covered the Airbus commercial aircraft plants in Mobile, US and in Tianjin, China. This year the FISH incident management module has been extended to cover the Airbus Defence and Space Division in Poland. Around 80% of the Company employees including the active workforce, the apprentices and the temporary employees are estimated to be covered under the FISH platform. The FISH perimeter continues to be progressively extended.
The work on incident management has reinforced the reporting of near misses. This has led to a total of 19,305 near misses being declared on FISH in the Airbus commercial aircraft activities. The investigation of near misses identifies cause agents and mitigation actions that support incident prevention measures.
Activity to mitigate risks is promoted and deployed through different channels. Most importantly, the Company stimulates behavioural change, in particular through its “People Safety @ Work” (PS@W) project in Airbus commercial aircraft, the “We Care initiative” in Airbus Defence and Space Division and the “Safe Together” initiative in Airbus Helicopters Division. This embeds a culture of continual improvement in workplace health and safety performance. Examples of particular campaigns include: – “Team Talk” packages enable managers to discuss safety with their teams. – Videos illustrating our safety golden rules. – Campaigns to support a safe return to work after a long break such as summer holidays. – Site Safety Awards to motivate and engage employees. – Mindset and behaviour workshops. – Safety weeks and safety mobilisation days, often topic specific and led by senior managers. – ’Safety Box’ (safety activities) and “Safety Lab” (safety discussions) sessions, in both face to face and virtual meeting modes due to COVID-19. – Testimonies by employees who have suffered accidents at work. – Transparent sharing of safety related information, such as frequency rates and “Flash Alerts”. – Mandatory EHS training.
The Company “Safety Ambassadors” knowledge, competences and roles have been reinforced. This network comprises around 1,900 members, and is a significant enabler for culture change. They spread best practices and support activities such as the implementation of COVID-19 measures.
At the operational level, the Airbus commercial aircraft operating system (AOS) includes an assessment grid to evaluate the environment, health and safety maturity level in operational areas. This reinforces the activity to reduce risk, driving the implementation of initiatives such as the PS@W trip hazards removal, mobile steps safety and site traffic infrastructure improvements.
In 2021, the virtual classroom portfolio was further developed, in particular to cover some of the elements of statutory training such as First Aid, and we will continue to develop more digital enabled learning solutions. Consequently, despite the challenging environment of the ongoing pandemic, over 128,795 hours of dedicated health and safety training were delivered to 28,144 individual employees between October 2020 and September 2021.
Managers at all levels are required to attend the “Airbus Environment and Health & Safety (EHS) Leadership Certificate”. This intensive course has four modules, which, if completed within a certain timescale, lead to an externally validated “Environment, Health and Safety Certificate”. The EHS Leadership modules 1 and 2 were therefore prioritised for the virtual classroom format in 2021. The development of modules 3 and 4 will take place in 2022. A total of around 2,300 employees have now attended these modules since 2019; 1,309 of which in between October 2020 and September 2021.
The “Executive Environment and Health & Safety Masterclass” ensures that the Company top leaders are equipped to drive the strategy of continual improvement in health and safety culture and performance. Overall some 451 executives and senior leaders have completed the Masterclass from October 2020 to September 2021. In the same period some 82 executives, mainly from the plant and final assembly lines, have attended the practical and hands-on “Back to the Floor” training, which enables leaders to proactively and positively engage on safety issues on the shop floor.
Occupational health and wellbeing are key priorities for the Company, as evidenced by the construction of purposedesigned occupational health facilities at Broughton, UK, and at Getafe, Spain, which were completed in 2021.
Naturally COVID-19 has continued to be a critical risk to people and the Company. Mitigation activities have included: – Providing and maintaining guidance on the core barrier measures, supported by awareness campaigns and material including posters, videos and e-learning modules. – Supporting national vaccination programmes, where possible. Around 19,500 people were vaccinated on Airbus sites in France, Germany, Spain, UK, the USA and China. – More than 17,900 COVID-19 tests have been performed on employees in Germany and France, with particular hygiene and testing procedures for delivery teams. – An employee “COVID-19 Hotline” and case management has been provided by Occupational Health teams.
Whilst certain health initiatives and check-ups were impacted by the COVID-19 situation, key monitoring campaigns were maintained. Psychological health continues to be a focus. In addition to the employee helpline services and the availability of psychologists, training was provided for topics such as mental health awareness and addiction prevention. Support material has also been made available on the Company intranet pages.
With regard to substances, the “REACH-IT” project has continued in Airbus’ commercial aircraft business, together with similar initiatives deployed in the Divisions. Manufacturing processes, tools and workstations have been reviewed in light of the REACH authorisation measures for the protection of health, safety and the environment. Now there is a progressive transfer


1. Information on the Company’s Activities / 1.2 Non-Financial Information 80 Airbus / Registration Document 2021 of this work into operational management systems, to ensure the ongoing maintenance of conformity. A compliance surveillance programme will be launched in 2022.
V. Outlook. 
As part of the health, safety and operational environment “2030 Flightpath” vision, we aim to promote and provide standards that are above our minimum legal compliance requirements. Consequently, in 2022 the Company will continue to reduce risk of work-related injury, ill-health and environmental impact, by improving management system elements, monitoring and data analysis.
The Company will therefore continue to increase the geographical deployment and technical scope of the FISH platform to support a strategy of data-driven risk analysis and mitigation. In particular the incident management module is planned for deployment in sites in North America and the Asia Pacific region.
As the corporate ISO45001 based occupational health and safety management system matures, a company Health and Safety Governance Board is planned, to maintain clear oversight and steer the “zero harm” ambition. At national level, occupational health review panels are also planned, to address topics such as occupational disease cause analysis, risk mitigation strategies and emerging competency requirements. The Company will continue to strengthen its efforts to enhance wellbeing and mental health protection.
Further key performance indicators (KPI) are to be introduced, including health KPIs. The FISH platform will enable a wider use of the all injuries frequency rate and the leveraging of near miss data.
1.2.4 Respect Human Rights and Foster Inclusion a. Human Rights. 
I. Introduction. 
A commitment to respect human rights. 
As a signatory to the United Nations Global Compact since 2003, the Company is committed to upholding international human rights principles and standards, including the International Bill of Human Rights, the International Labour Organization’s (“ILO”) Declaration on Fundamental Principles and Rights at Work and its Core Labour Standards. In doing so, the Company aims to implement policies and processes that respect applicable law in the countries in which we operate and take into acccount the UN Guiding Principles for Business and Human Rights, and the Organisation for Economic Co-operation and Development’s (“OECD”) Guidelines for Multinational Enterprises.
“Respect for human rights” was prioritised by the Company as one of the four sustainability commitments agreed by the Executive Committee and the ECSC at Board level during 2020.
The Company’s actions to progress its ambition to “embed and advance respect for human rights throughout its business, operations and supply chain” follow recommendations identified through a human rights impact and gap analysis conducted by a specialist external human rights consultancy in 2019. This analysis considered current and upcoming regulatory requirements and international best practice as well as international principles and standards, including the UN Guiding Principles for Business and Human Rights. Details of these actions follow.


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Human Rights GRI SASB SDGs Others Others 412 Human Rights Assessment 4,5,8,16 Vigilance Plan. 
Highest governance body(ies) involved Board of Directors / ECSC Executive Committee. 
Related Corporate Policies and Reference Documents Code of Conduct; International Framework Agreement; Airbus Supplier Code of Conduct. 
Commitments to take into account external standards and frameworks. 
International Bill of Human Rights, ILO’s Declaration on Fundamental Principles and Rights at Work and its Core Labour Standards, OECD Guidelines for Multinational Enterprises, United Nations Guiding Principles. 
KPIs Target Target year 2020 2021 2021 v. 2020 % of investigations completed or in progress(1) 100% Permanent 100% 100% - % of sites having undertaken a social assessment(2) 100% 2026 6% 14% +8pp % of findings closed within 18-months(3) 100% Permanent 100% 100% -
Other key metrics 2020 2021 2021 v. 2020. 
Number of participants to human rights trainings – Cumulative, reporting period: 1 Oct -30 Sep(4) 4,943 5,789 +846. 
Number of alerts of human rights concerns(5) 5 4 -1. 
KPI and metrics assumptions: (1) Following reports of concerns linked to forced and child labour and other labour rights. (2) % of the Company’s sites with over 100 employees, cumulative since 2020, undergoing a social assessment including human and labour rights. (3) Following social assessments including human and labour rights, carried out on the Company’s sites. (4) Cumulative number of participants who have completed e-learning modules on human rights and modern slavery since 2018. (5) Including forced labour and labour rights (received via OpenLine and other means) from internal sources or through the Company’s supply chain. 
Additional resources. 
Code of Conduct , Supplier Code of Conduct , Modern Slavery Statement , Human Rights on Airbus.com ,
OECD Guidelines for Multinational Enterprises , ILO Declaration on Fundamental Principles and Rights at Work. 
II. Governance. 
The EVP Communication and Corporate Affairs has top level accountability for human rights at Executive Committee level. During 2021, following formalisation of the Company’s governance arrangements for human rights in 2020, the Company held a number of meetings and presentations to support and advance respect for human rights. These included:
Governance Number of meetings during 2021 Key responsibilities. 
Human Rights Multi-Functional Team, chaired by the Global Lead for Human Rights. 
Target 6 Achieved 6. 
Ensuring the development and delivery of the human rights roadmap, including actions against agreed targets and support for awareness raising and capacity building.
Human Rights Steering Committee, chaired by the Head of Sustainability and Environment. 
Target 3 Achieved 3. 
Providing strategic guidance to support decision making and prioritisation, as well as providing guidance and support on progress.
Specific presentation on human rights at the Executive Committee Target 2 Achieved 3. 
Agree and guide the strategic direction of the Company’s human rights ambition, agree and guide the prioritisation of initiatives and resource allocation for implementation and review the status and effectiveness of actions in progress (including roadmap/targets/KPIs).
Specific presentation on human rights at the ECSC Target 1 Achieved 2. 
Make and support decisions on identified salient issues and emerging significant risks, make and support decisions on key trends / legislation and provide feedback and steering as required.
The Company will review its governance on human rights as it moves from policy-setting into implementation.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 82 Airbus / Registration Document 2021. 
Human rights policy. 
Building on the human rights commitments and expectations that have existed in various key documents for many years (including within the Airbus International Framework Agreement signed in 2005, the Company’s Code of Conduct and Supplier Code of Conduct), a key focus for 2021 included efforts to consolidate commitments to human rights standards and principles as well as expectations in this respect (aligned to international human rights standards and principles including the United Nations Guiding Principles for Business and Human Rights, the ILO Core Conventions on Labour Standards and the OECD Guidelines for Multinational Enterprises), into a specific internal human rights policy. The Company expects to finalise the policy in 2022.
In addition a number of internal and external stakeholders have supported the creation of the policy including divisional and functional representatives of the Human Rights MFT and Steering Committee and members of the Legal & Compliance team. When finalised, the Company intends to have the policy endorsed by the SE-WC which represents The Company’s European social partners. Externally the policy has been reviewed by representatives from specialist expert human rights organisations, academics and civil society.
The human rights policy will help further embed due diligence throughout the Company through the creation of a specific Human Rights Management System and associated Directive. A key focus for 2022 will also include the development of methods and guidelines to support policy adherence as well as communication and associated training prioritising high risk functions.
III. Risk Management. 
Risks related to the salient issues were embedded into the Company’s risk portfolio in the frame of the Company’s ERM system and an associated action plan developed to identify, assess and address identified impacts. Actions are reviewed regularly by the Human Rights MFT and any salient issues requiring particular focus are escalated to the Human Rights Steering Committee as well as the Executive Committee and ECSC as required. An update of actions related to the Company’s salient issues follows, with further actions progressing throughout 2022. Taking into account that salient issues may change over time due to internal and external influences, the Company is committed to reviewing them annually.
Salient Human Rights Issues. 
Salient Human Rights Issues -- Impact of products and services on the rights to life and liberty (passengers and citizens) -- Data privacy (individuals and their personal data) -- Transition to decarbonisation (supply chains) -- Forced and child labour and labour rights (contractors and supply chains) -- Diverse and inclusive workplaces (Airbus workforce and contractors)
The Company’s salient human rights issues (see box with impacted groups in parenthesis) were initially identified through a human rights impact and gap analysis carried out in 2019. This identification was based on a benchmark of industry peers and companies in similar industries and an analysis of stakeholder expectations, including consideration from a rights-holder perspective. These issues were reviewed, updated and validated during 2020 through the Human Rights MFT and engagement with a number of key external stakeholders, including human rights NGOs, academics/researchers and industry groups.
– Impact of products and services on the right to life and liberty (passengers and citizens): Actions are ongoing. A multifunctional and cross-divisional team is currently reviewing how to integrate risk-based human rights due diligence through existing processes and tools. – Forced and child labour and other labour rights (contractors and supply chain): Key activities to mitigate the risk of forced and child labour and other labour rights in the Company’s supply chain included the roll out of the Company’s revised Supplier Code of Conduct, with strengthened expectations on forced and child labour as well as other human and labour rights and a requirement for suppliers to formally confirm adherence to the Supplier Code of Conduct and to cascade the principles throughout their supply chain. In addition, the Company took actions to strengthen its supply chain due diligence including updated risk mapping (country and activity) and a review of its risk identification and alert management process. For further information, see “– 1.2.6 Responsible Supply Chain”. – The transition to decarbonisation (supply chain): 2021 was dedicated to identifying the key areas of risk that the Company’s transition to decarbonisation may create, affecting in particular human rights. The identified areas include the potential impact on local communities of the production of Sustainable Aviation Fuels (SAF), offset initiatives or specific minerals required in the development and manufacturing of new technology. The Company is already engaged in various coalitions (e.g. the Roundtable for Sustainable Biomaterials and the International Sustainability and Carbon Certification) to ensure that human rights dimensions are considered in these areas. – Inclusion and diversity: During 2021 actions to progress this salient issue included agreeing a “25 by 25” gender diversity ambition to increase female representation at executive levels of the Company, creating a robust pipeline including specific leadership programmes for women, such as “MyWay” and, to support inclusive leadership, a mandatory Unconscious Bias training module was rolled out for all employees (with a target to achieve 100% by end of 2021). For further information, see “– 1.2.4b Inclusion and Diversity”. – Data privacy: During 2021, the data privacy team continued to implement and improve the data privacy programme throughout the Company. Actions were taken to ensure that the international transfer of personal data is completed in line with new requirements. Further steps were taken to ensure that, prior to contracting, suppliers processing personal data on behalf of Airbus are vetted and the appropriate mechanisms put in place to ensure they process data in line with legal requirements.


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Due diligence. 
During 2021, the Company began to strengthen its risk-based human rights due diligence taking into account the OECD Due Diligence Guidance for Responsible Business Conduct. This focus, which will continue throughout 2022, included: – supply chain due diligence; – due diligence within the Company’s own operations; – product and service due diligence (focused on the Company’s Defence Division).
Social assessments (focused on human and labour rights)
During 2021, the Company conducted a number of onsite social assessments focused on human and labour rights covering its own sites. These onsite assessments were carried out using an independent third-party social assurance provider consistent with the assessments carried out in the Company’s supply chain.
Building on the initial pilot carried out during 2020, eight sites (against a target of four) undertook a social assessment during 2021 in countries including Germany, Belgium, US, France, Italy, Malaysia, China and the Philippines. The sites were selected based on an analysis of country risk using publicly available indices (including child labour, forced labour and labour rights), the type of activity (prioritising production facilities) and the number of employees. In addition, any alerts relating to human rights coming from other sources, including the ICSA process, and upcoming legislative requirements were also taken into account.
The Company has a target to ensure that all findings are closed within an 18 month period following assessment. In addition, in order to strengthen its due diligence process, the Company has set a target to ensure that 100% of its sites with over 100 employees are assessed for human and labour rights risks by the end of 2026.
Supply chain. 
The Company continued to assess its supply chain for any concerns related to human rights, including forced and child labour and other labour rights, throughout 2021. For further information, see “– 1.2.6 Responsible Supply Chain”.
Grievance and remediation. 
During 2021, the Company continued to promote its “speak-up” culture for human rights concerns, including reinforcement of the use of its OpenLine confidential reporting system, within its revised Supplier Code of Conduct (see “– 1.2.6 Responsible Supply Chain”).
If an allegation of human rights breach received from within the Company or through its supply chain or other third party business relationships is found to be substantiated, remedy would be sought through a variety of mechanisms. If an alert is received via its OpenLine reporting system, the Company commits to acknowledge receipt of the report within two business days. The Company has a global network of internal investigators, tasked with investigating allegations, including those relating to human rights such as forced or child labour, or labour rights and working conditions.
During 2021, the Company investigated four alleged cases of concern related to forced labour and other labour rights from within the Company’s supply chain. All of the cases are closed as either unsubstantiated or with a consequential action. The Company will continue to investigate any new alerts during 2022.
IV. Implementation/Activities. 
Awareness raising and training. 
During 2021, the Company continued to raise awareness of human rights including through the promotion of its dedicated training on human rights and modern slavery which is available to all employees in four languages. During the period October 2020– September 2021, 846 participants undertook this training (5,789 in total since its launch), which included information on how to identify the signs of human rights abuse and what to do if anybody has concerns. In addition, two dedicated virtual awareness sessions were run for the heads of subsidiaries (attended by 140 people) to raise awareness of human rights which included practical examples of how to identify and report risks. The sessions were recorded so that those not able to attend directly could review the recording.
A dedicated e-learning module on human rights, targeting senior managers, including the heads of subsidiaries and controlled affiliates, was produced in 2021 and will be rolled out during 2022. In addition a new e-learning module will be created for all employees to raise awareness of human rights with the intention that this becomes mandatory to all employees from 2023.
Additional topic-based training relating to human rights is also available to all employees of the Company, a number of which are mandatory, including data privacy and inclusion and diversity topics such as unconscious bias.
Stakeholder engagement and collaboration. 
During 2021, the Company joined the Global Business Initiative on Business and Human Rights (GBI), a specialist peer learning group focused on advancing respect for human rights throughout the world. As part of its membership, the Company also took part in two dedicated workstreams: downstream due diligence and tracking and measurement, the progress of which were shared with other GBI members.
The Company is also a member of a number of industry trade associations which during 2021 held focused discussions on progressing human rights within the aerospace and defence industry. These include the BDSV (German Industry Association for Security and Defence), ASD (the Aerospace and Defence Industries Association of Europe), GIFAS (French Aerospace Industries Association), ADS (UK Industry Association for Aerospace, Defence, Security and Space) and TechUK (the UK’s technology trade association).
The Company also engaged with a number of external stakeholders on human rights in order to advance the topic through external collaboration. These included academics, researchers, civil society organisations, officials and peers. A number of discussions with the Company’s investors on the topic of human rights also took place during 2021, including on the topic of forced labour.
In addition, an update of the human rights roadmap was also presented to key internal stakeholder groups including the Societas Europaea Works Council (“SE-WC”) and the European Committee for Airbus Defence and Space (“ECADS”) comprising social partners from across the Company’s European sites.
During 2021, the Company’s Defence and Space Division continued to work with the UK’s University of Nottingham Rights Lab on a project to monitor supply chain human rights challenges across sectors including maritime, agriculture and mining. Analysis of EO satellite imagery helps to identify supply


1. Information on the Company’s Activities / 1.2 Non-Financial Information 84 Airbus / Registration Document 2021 chain human rights issues, such as flagging suspicious activities for further investigation, or can act as additional evidence for reported supply chain issues. The Division has also started to scope its own supply chain risk assessment tools for the Company by integrating satellite imagery derived intelligence with additional reported data from third parties on potential supply chain human rights risks.
Regulatory compliance. 
During 2021, the Company undertook an analysis of current legislation related to human rights including the French Devoir de Vigilance Law and the Modern Slavery Acts in the UK and Australia. In addition, the Company undertook an analysis of relevant upcoming legislation including the German Act on Corporate Due Diligence Obligations in Supply Chains. Actions to fill any identified gaps will be undertaken throughout 2022.
During 2021, in accordance with the UK Modern Slavery Act and the Australian Commonwealth Modern Slavery Act, the Company published a Modern Slavery Statement outlining the actions it had undertaken to mitigate modern slavery risks in its global business, operations or supply chain. This Statement was published on the UK Government and Australian Government websites as well as the Company’s website. In addition the Company completed the UK Ministry of Defence (MoD) Modern Slavery Assessment Tool.
V. Outlook. 
During 2022, the Company will continue its focus on embedding and advancing its commitment to respect human rights throughout its business, operations and supply chain. Specific ongoing actions include: – finalisation of the Company’s human rights policy; – embedding human rights commitments throughout the Company; – further progressing risk-based due diligence within the Company; – prioritising actions based on the Company’s Identified salient human rights issues (to be reviewed in 2022); – progressing social assessments focused on human and labour rights throughout the Company’s sites; – capacity building with key teams including development of training, communication and awareness raising; – ensuring alignment of actions with current and upcoming legislation.
b. Inclusion & Diversity. 
I. Introduction “Respect Human Rights and Foster Inclusion” is one of the four sustainability commitments. This priority reflects the focus the Company puts on Inclusion & Diversity (“I&D”) and is illustrated by the 137 nations and 20 different languages that its employees represent.
An I&D position statement outlines the Company’s commitments to creating a safe and inclusive culture, including zero tolerance to discrimination and harassment, whilst the Company’s Code of Conduct and Supplier Code of Conduct expresses the expectations towards both employees and suppliers in this respect.
In line with the Company’s values, a comprehensive I&D strategy drives the Company’s approach to embedding I&D focusing on intergenerational, ethnic, social and cultural diversity as well as gender equality, LGBTQ, neurodiversity and disability-friendly policies and hiring practices. The I&D strategy aims to ensure that the Company: – creates a safe environment and inclusive culture where collaboration, empowerment, continuous learning and accountability are promoted and valued. The Company has zero tolerance for harassment or discrimination of any kind; – attracts, recruits, develops and retains a large and diverse pool of talent. This talent is a reflection of our customers and suppliers base as well as the communities around us; – develops a thriving work environment supported by its values system, leadership model as well as a Code of Conduct understood and practiced by all; – is committed to have a positive long-term sustainable impact not only in the aviation sector but also in the communities we work in by being signatories to the SDGs.


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Inclusion & Diversity GRI SASB SDGs Others 405 Diversity and Equal Opportunity 406 Non-discrimination 408 Child Labor 409 Forced or Compulsory Labor 4, 5, 8, 16 Vigilance Plan. 
Highest governance body(ies) involved Board of Directors / ECSC Executive Committee / Inclusion & Diversity Board. 
Related Corporate Policies and Documents Human Resources Airbus Company Policy Airbus Code of Conduct, Airbus Supplier Code of Conduct. 
Airbus commitments to take into account external standards or frameworks. 
Universal Declaration of Human Rights, OECD Guidelines for Multinational Enterprises, ILO Conventions. 
KPIs Target Target horizon 2020 2021 2021 v. 2020 % of external hires to be female 33% yearly 26% 22% -4%
Other key metrics (More in the ESG Data Board) 2020 2021 2021 v. 2020. 
Women in active workforce 18% 19% 1%
Board of Directors 25% 25% stable. 
Executive Committee 16% 25% +9%
Executives 13% 14% +1%
Senior Managers 14% 16% +2%
Additional resources. 
Code of Conduct – incl. non-discrimination commitment , Inclusion and Diversity on Airbus.com ,
Airbus International Framework Agreement – incl. Equal Opportunities commitment UN Women’s Empowerment Principles – CEO Statement , AD CEO statement ,
LGBT+ Charter with L’Autre Cercle Association for an inclusive work environment for LGBTQ+ people France Gender Pay Gap Statement 2020 , UK Gender Pay Gap Report , Airbus UK I&D Agreement ,
Women in Aviation and Aerospace Charter ; Women in Defence Charter. 
Partnerships supporting people with disabilities (Atouts pour tous , Handisup , Handiproconseil )
II. Governance. 
The I&D team is part of the “DEVELOP Center of Expertise” within the Human Resources function and represents each of the Company’s Divisions, with regional I&D focal points supporting the implementation of the I&D strategy globally.
An I&D Advisory Board, chaired by the Chief Human Resource Officer with representatives from the Executive Committee and other Divisional and regional executives, meets quarterly and provides top level oversight and input into the I&D strategy as well as reviews risks or issues raised, providing support on new initiatives, processes or changes to policy and make appropriate recommendations to the Executive Committee.
In addition, local I&D (including disability) steering committees, championed by senior leaders and executives in the regions, provide additional support to embed and advance the I&D strategy locally and provide valuable input to the I&D team and Advisory Board. The steering committees are supported by a network of diversity Business Champions embedded in the business and who advocate for inclusive leadership.
III. Risk Management. 
Any identified risks related to I&D are recorded in the Company’s ERM and appropriate action plans agreed. Progress is reviewed quarterly.
In addition, any alerts related to I&D raised via the Company’s “speak-up” culture, including its OpenLine reporting system, are investigated in accordance with the Company’s investigation process.
IV. Implementation/Activities. 
The Company supports various national and international initiatives such as International Women’s Day and since 2018 we have committed to the UN Women’s Empowerment Principles aimed at empowering women to participate fully in economic life. The Company has also led the “Women in Aviation and Aerospace Charter” and has been instrumental in the development of the “Women in Defence Charter” which demonstrates the commitment of a growing number of organisations across the industry to build a more balanced and fairer industry for women. In addition, in 2020 the Company launched a “Management Basics & Leadership Foundations Programme” to ensure that inclusive leadership becomes the norm at all levels. In addition our Corporate Gender diversity leadership development launched a cohort dedicated to 50 women leaders of tomorrow. To date this programme has trained over 170 women, including the current cohort.


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The Company is also accelerating change through its employeeled “Balance for Business” network, which has around 10,000 volunteer members worldwide. Initiatives run through this network include roadshows promoting employee-led initiatives such as peer-to-peer mentoring, confidence building and encouraging employees to challenge stereotypes and build their careers. The network also supports some outreach initiatives.
Other employee-led networks such as the Women Innovative Network (“WiN”), the Airbus Africa Network, Spectrum (Racial diversity and inclusion), Pride@Airbus (LGBTQ+), Generation-A (Millennials), Seniors Talent and (Dis)Ability ambassadors networks are key to raising awareness of I&D, promoting inclusion, equal rights and increasing visibility. Initiatives include mentoring, leadership development of under-represented groups as well as conferences and discussions open to all employees.
The annual Ability Weeks campaign aims to raise awareness on disability across the Company and worldwide. This includes a series of workshops and awareness sessions on topics such as: digital accessibility, workplace adaptations, mental health care. During 2021 more than 1,600 employees participated in live workshops, and over 50 events were organised worldwide. Our Airbus Humanity Lab also showcased prosthetic blades made from recycled carbon from our production lines.
Highlighting that being unique is valued and that difference is welcome, the Company ran an awareness campaign during 2021 to promote awareness of the importance of digital accessibility for employees with disabilities as a means for inclusion.
The Company also engaged in various social diversity programmes during 2021 in partnership with a number of different associations to promote quality education and mentorship for young people from underprivileged areas. For example, the Company participated in the “La France, une chance. Les entreprises s’engagent!” initiated in 2018 by the French government to encourage business to get involved in helping everyone find their place in society by, for example, recruiting from underprivileged areas promoting education learning and responsible purchasing and creating a link between these underprivileged areas and businesses.
During 2021, the Company disclosed its gender pay gap as required through both French and UK legislation and continues to put measures in place to ensure gender pay parity worldwide.
V. Outlook. 
Priorities for 2022 include continuing the Company’s focus on gender parity. Upcoming actions on I&D include: – eliminating systemic barriers during talent recruitment, development and management; – agreeing on targets for external recruitment of women, external recruitment from non-EU countries and external recruitment of people with disabilities; – extending leadership development programmes to include a focus on I&D and in particular on gender diversity; – increasing awareness and training on inclusive leadership and unconscious bias; – leveraging and reinforcing business ownership and accountability through the Company’s network of diversity champions; – continued support to encourage STEM studies for young women in schools and universities through mentorship, tutorship, directly or through the associations sponsored by the Company.
c. Labour Relations. 
I. Introduction. 
In 2021 again, the Company has continued its numerous discussions, consultations and negotiations with its social partners, sometimes on a daily basis in order to discuss company transformation projects aiming at adapting to the evolving situation partly resulting from the health and economic crisis.
These various transformations were carried out in line with the common principles and standards of the ILO convention, the OECD Guidelines for Multinational Enterprises and the principles laid down by the UN Global Compact.
Employee relations are underpinned by the Company commitments made in the Company’s Code of Conduct and the Airbus International Framework Agreement, signed in 2005.


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Labour Relations GRI SASB SDGs Others 402 Labor / Management Relations 8, 16, 17. 
Highest governance body(ies) involved Executive Committee. 
Related Corporate Ref Documents Airbus Code of Conduct, International Framework Agreement, SE-WC agreement (updated 2018)
Airbus commitments to take into account external standards and frameworks. 
ILO’s Declaration on Fundamental Principles and Rights at Work and its Core Labour Standards, OECD Guidelines for Multinational Enterprises. 
Key metrics 2020 2021. 
Number of meetings with SE-WC (agreement says four per year) 8 12 % workforce covered by collective bargaining agreements ca 80%
Additional resources. 
Code of Conduct , Airbus International Framework Agreement. 
ILO’s Declaration on Fundamental Principles and Rights OECD Guidelines for Multinational Enterprises , the Global Deal Initiative. 
II. Governance. 
In the International Framework Agreement (“IFA”), the Company reaffirms its willingness to respect the regulation regarding fundamental human rights, equal opportunities, free choice of employment, as well as prohibition of child labour and respect and ensuring the conditions for social dialogue.
The Company intends, via its agreements, to respect the disposition of the following ILO conventions: numbers 111 (discrimination – employee and occupation), 100 (equal remuneration), 135 (workers’ representatives), 29 (forced labour), 105 (abolition of forced labour), 182 (child labour), 138 (minimum age), 87 (freedom of association and protection of the right to organise) and 98 (right to organise and collective bargaining).
The head of each business is responsible for ensuring compliance with these principles. The provisions of this framework agreement define the Company’s standards to be applied wherever the Company operates provided they are not in contravention of local law, insofar as more favourable conditions do not exist already. Dedicated processes ensure that the provisions of this agreement are not breached wherever the Company operates.
The Company is in continuous dialogue with social partners on its sites in Europe, principally through meetings with management at the European Committee level but also through meetings and negotiations at national or local level. Sites outside Europe are also covered by the Company’s IFA framing the social dialogue and social culture in line with local labour legislation, culture and practices of respective countries.
Regular social dialogue is ensured as per ILO requirements and local legislation and Company agreements about social dialogue, for instance in Europe, thanks to the Company’s SE-WC agreement which was updated in 2018.
Labour relations and social dialogue are fully part of the Company’s DNA and therefore, its continuous evolution and improvement are embedded in the Company’s Human Resources strategy supporting the Company’s business challenges. Especially, in cases of restructuring, the Company strives to limit as much as possible the negative impacts on its workforce, and considers employment as a priority.
In line with the Company's global social dialogue strategy and since 2019, the discussions with its social partners have not only been assured at local or European level but have also happened at global level with the creation of the Airbus Global Forum (“AGF”). In line with the Company’s commitments in terms of Sustainability, the AGF is a clear illustration of the Company’s engagement for a responsible social dialogue. The seat allocation for employee representatives is based on headcount distribution across the globe and conditional to existing legal employee representation as per applicable regulations and practices in the relevant countries.
In addition, the Company is an active member of the Global Deal for Decent Work and Inclusive Growth initiative (“Global Deal”) that was developed in cooperation with the ILO and OECD. The Global Deal is a multi-stakeholder partnership between governments, business and employers’ organisations, trade unions, civil society and other organisations that seeks to make economic growth work for all against a backdrop of rapid changes in the world of work.
III. Risk Management. 
The European labour relations’ management of the four home countries of the Company (France, Germany, UK, Spain) is also part of the Company risk management processes and these risks are reviewed internally on a regular basis. For example during 2021, employee relations continued to focus on ensuring legal compliance regarding national labour laws and investing in training the Company’s HR professionals about labour law. The Company’s approach to risk management is also reinforced by the OpenLine reporting system, which allows employees to report concerns anonymously (where legally permitted).


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IV. Implementation/Activities. 
During 2021, the Company continued activities aimed at strengthening collaborative and partnership approaches with unions in various countries. The main focus has been on preserving global social dialogue, addressing company transformation projects, and monitoring the implementation and the effects of the COVID-19 adaptation plan and sharing our progress about sustainability.
Preserving a Global Social Dialogue. 
The second AGF took place early July 2021 in a digital format and has proven again to be an effective exchange platform between the Company's top leaders in the regions and employee representatives from its European home countries, Poland, Romania, Morocco, Tunisia, Brazil, New Zealand, Australia, Mexico, Canada and China. The AGF agenda triggered insightful discussions around business highlights including the challenges and priorities for 2021 and 2022 as well as I&D, People Ethics & Compliance – especially anti-harassment – and the Company's well-being strategy. It also served as an opportunity to enhance the perspective of the Company's social partners on local and regional practices with regards to social matters, especially out of the Company's European home countries.
At the Company’s Airbus Helicopters Division, four European committees have taken place. The main topics have been the follow up of the Division’s performance and strategy, the site specialisation strategy and more globally the company transformation, focusing in particular on competitiveness.
At the Company’s Airbus Defence and Space Division, six European committees have taken place. The main topics have been the follow up of the adaptation plan, known as Future Planning, including financial competitiveness, the strategy and performance of the Division with a focus on sustainable transformation, including the AD 4.1 reorganisation during the later part of 2021.
Supporting Company Transformation “Reshape Supply chain” (RSC) was one of the major company transformation projects in 2021, which was subject to numerous discussions with our social partners at European and local levels. This project aims at creating two aerostructures companies of equivalent position and size in France and Germany (ca. 9,500 employees each) to prepare the future of fuselage aerostructures. As part of the discussions, the SE-WC nominated independent external experts to analyse the social, economic and financial impact of the project. Based on extensive data analysis and interviews, the report supported the project’s principles and acknowledged the transparent sharing of information and data by Airbus management that permitted the experts to formulate their opinion. The constructive discussions at European and national level finally resulted in the creation of Airbus Atlantic as of January 2022. The negotiations about the creation of the aerostructures company and its impact on the detail parts activities is continuing with our social partners at company level in Germany, as well as with IG-Metall as legally required by Works Constitution Act and Tariff agreements.
In Spain, many discussions took place to address the consolidation of the industrial activities and the maintenance of the full workload in the Province of Cádiz in the CBC work Centre. National and regional authorities, Airbus, both the internal works council and main national unions agreed to have a commission to monitor fulfillment of the agreements.
Finalising the implementation of the COVID-19 adaptation plan. 
In 2020, COVID-19 adaptation plan discussions resulted in the signature of various collective agreements by the main unions or staff body representatives in France, Germany, Spain and the UK covering all employees in Airbus’ commercial aircraft business within these countries so that the overall adaptation plan could be completed in 2021 and compulsory redundancies avoided. The agreements provided for a range of social measures including: trainings, internal mobilities, working time adaptations, voluntary departure schemes, early retirement and the opportunity to pursue personal or professional opportunities outside of the Company, such as business creation as well as dedicated partial unemployment schemes to be implemented in order to adapt activities and the workforce in 2021. In particular the signature of agreements about shorter working week in the UK, longterm partial unemployment in France and the long-term partial unemployment scheme in Spain (ERTE) have been agreed with the majority of the social partners. In addition a substantial portion of jobs have been secured due to external funding for research and technology programmes, anticipating that these jobs would be needed in the post pandemic recovery phase.
Preparing the future. 
The Company is committed to preparing for the future of employment and working conditions together with the social partners:
In Spain, the VI CBA (Collective Bargaining Agreement) has been signed in 2021 with the majority of the social partners from the commercial aircraft business and its two Divisions for a four-year period (2020/2023). The main aspects covered were: salary conditions, working from home, training to face new technologies, early retirement scheme and both employment and gender equality plans.
In France, the Company also started a long-term social dialogue with employee representatives in 2021 in the frame of a project named “Reload” which aims at simplifying and harmonising company agreements related to compensation, benefits, grading, working time duration, health, safety and working conditions to make them more readable for its people and adapted to the Company’s challenges. This project aims also at integrating the evolution of the Metallurgic Branch Agreement.
In Germany, apart from the RSC project, the social dialogue was mainly focussed on ensuring industrial and financial performance as a foundation for job security and future programmes in a ramp-up context. Agreements on mandatory work on defined Saturdays at reduced premium rates (compared to similar agreements from 2019) have been achieved for 2021. Approval of additional (flex) capacity is a second brick to ensure ramp-up activities particularly in production areas.
Enabling for sustainability plans. 
In Europe, the Company’s social partners were also closely involved in discussions on the health and safety measures taken in the workplace to protect workers and prevent the spread of COVID-19. This included the provision of additional personal protective equipment (PPE), team rotations, homeworking, social distancing and regular communication particularly on any special site measures. The social partners in Europe have also been informed about the actions taken and the future endeavours of the Company with regards to the identification and mitigation of risks inherent to Airbus activities and those of its suppliers with regards to human rights, environment and health and safety.


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V. Outlook. 
In 2021, the Company maintained the accident frequency rate as one of the KPIs integrated in its executive and employee success sharing scheme. It is the Company’s intention to continue in this direction; notably it has already engaged further in discussing with social partners about the possible inclusion of another sustainability criteria (CO2) in the remuneration of senior managers from the year 2022.
The Company will continue its dialogue with social partners, sharing its strategy and organisational changes and preparing for our evolving ways of working, as it was done in 2021. The RSC project will continue to be a key area to ensure the successful creation of an aerostructures company in Germany. Other key areas will be the ramp-up of our activities in 2022 and the transformation projects which will be essential to Airbus’ future successes.
d. People. 
I. Introduction. 
The Company’s people draw on each other’s expertise and experience and puts all our passion and determination to pioneering sustainable aerospace. Human Resources (HR) is at the heart of the Company.
The current priorities of the Company’s HR function are: – engaging, inclusive and high performing leadership; – skilled workforce and an agile learning organisation; – inclusive workplace and simplified ways of working.
As of 31 December 2021, the Company’s workforce amounted to 126,495 employees (compared to 131,349 employees in 2020), 95.7% of which consisted of full-time employees. These statistics take into account consolidation effects and perimeter changes throughout 2021. Depending on country and hierarchy level, the average contractual working time is between 35 and 40 hours per week.
The decrease in total headcount was the result of the COVID-19 adaptation plan in the Company’s commercial aircraft business and the already planned restructuring of the Company’s Defence and Space Division. Consequently, the number of newcomers had significantly decreased. The decision to restrict new hires in all businesses impacted by the crisis had been taken and the number of leavers had significantly increased as a result of the voluntary departures in the framework of the adaptation plans. Despite the crisis, the Company fulfilled commitments towards candidates already selected prior to the crisis and welcomed 5,655 newcomers. Voluntary departures have triggered an increase in the Company’s attrition rate, which in 2021, is 7.4% overall (including subsidiaries) and 12.2% in subsidiaries only.
Reflecting the fact that the Company is an international company, 35.4% of its employees are from France, 31.5% from Germany, 7.7% from the UK and 10.3% from Spain. The remaining 15.1% are employees coming from a total of 134 other countries. In total, 89.1% of the Company’s active workforce is located in Europe on more than 100 sites. Furthermore, the Company expects its workforce to evolve naturally to support the business.
Workforce by business segment, geographic area. 
The breakdown of the Company’s employees by business segment and geographic area, including the percentage of part-time employees, is available in “– 1.2.8 ESG Data Board”.
The workforce of the Company’s Helicopters Division remained stable in line with its business resilience during COVID-19 crisis, while the adaptation plans in the Company’s commercial aircraft business and the Company’s Defence and Space Division has started to materialise with a significant decrease.
People GRI SASB SDGs Others 401 Employment 404 Training and Education 4, 5, 8, 12. 
Highest governance body(ies) involved Executive Committee. 
Related Corporate Policies Human Resources Airbus Company Policy. 
Key metrics (More in the ESG Data Board) 2020 2021. 
Total number of employees(1) 131,349 126,495. 
Breakdowns are available in the ESG Data Board. 
Number of Classroom Training(2) 78,443 78,984. 
Number of Digital Training(2) 752,702 967,495. 
Total training hours(2) 1mn 1.2mn. 
Average training hours per employee(2) 10.6 10.8 (1) The Company’s headcount reporting includes all consolidated companies worldwide. Figures are based on the active workforce, i.e. the number of permanent and shortterm employees, irrespective of their individual working times, and having worked in the last 30 days. The headcount is calculated according to the consolidation quota of the respective companies. The scope for HR structure reporting covers 100% of the Company’s total active workforce from consolidated companies. (2) Reporting period: from 1 Oct. to 30 Sep.
Additional resources. 
Code of Conduct , Airbus Global Workforce Forecast Book , Working at Airbus. 
Airbus International Framework Agreement , European Commission – Pact for Skills. 
Employer awards 2021: Universum , Glassdoor , Fortune , Top Employer Institute , Forbes


1. Information on the Company’s Activities / 1.2 Non-Financial Information 90 Airbus / Registration Document 2021. 
II. Governance. 
The Company’s workforce is managed by the HR function thanks to a set of HR policies and a strong labour structure. HR policies are discussed and agreed with social partners through continuous and regular meetings at global and local levels. The overarching Human Resource policy in place is applicable to all employees and provides them with the description of the core values, mission, vision and top level initiatives for Human Resources Management in accordance with Airbus Mid-term Strategic Plan and external requirements.
The Chief Human Resource Officer is a member of the Executive Committee. HR teams work together across Divisions and geographical boundaries to support regional activities and adapt to business needs.
III. Risk Management. 
Any identified risks related to the workforce and its skills and development are recorded in the Company’s ERM and appropriate action plans agreed.
In addition, the Company periodically measures the perception of its employees on where the Company stands in terms of company culture and engagement through the “My Working Environment” Company Survey. The employees’ feedback provides valuable input to define an action plan, leveraging the Company’s cultural strengths to build on and addressing the pain points to be improved. The Company culture and engagement are regularly measured to keep track of the progress and adjust actions.
IV. Implementation/Activities. 
People Development and Competence Assessment. 
The development of all employees is essential to deliver business success. The Company strives to provide an environment that offers opportunities and the means for continuous growth and development in line with its strategy.
A yearly process derives a short, mid- and long-term competence strategy out of the Company’s business strategy by: – anticipating the supply and demand of competencies; – identifying, securing and developing key competencies; – creating added value through synergies, networking and best practices.
Investments in training and learning are prioritised in relation to this competence strategy.
In addition, emerging long-term competence needs are analysed – which might not exist today, and for which specific measures need to be taken, e.g. with universities. The Company is actively participating in external forums on competence evolution, such as the World Economic Forum and European Commission.
In order to ensure quality time is dedicated to discuss employee’s development, Airbus has, as part of its “manage employee development” process, implemented the Development Talk, which is an exchange between the manager and employee that can take place as often as needed but at least once a year. The purpose of this talk is to discuss the individual development plan of the employee and to bring individual expectations in line with company expectations.
Competence Assessment supports employee development and has to be performed at least every two years.
The company provides to the employee a portfolio of selfawareness solutions and feedback tools, that can be used on a voluntary basis, to prepare, in advance, the development talk and development plan. All agreed development actions are formalised in the employee development plan which has to be validated by the manager. These actions may consist of: – workplace learning or “on the job solutions” including development via mobility, project assignment, etc.; – social learning, such as mentoring; – Formal training.
Training & mobility. 
COVID-19 has been destabilising and has had a significant impact on the Company’s learning activities, resulting from the need to reduce cash spend to secure business continuity. While the various restrictions and national lockdown measures have limited the Company’s ability to deploy physical classroom sessions, the Company invested further in its digital learning platforms to increase digital learning that more than doubled compared to 2019.
Measures were taken in parallel to adapt physical classroom training sessions to comply with the strictest health and safety measures ensuring the delivery of the mandatory and critical training without disruption to operations. The acceleration of the digital learning strategy has allowed employees to remain active in their development during periods of remote working and partial unemployment (according to social agreements).
In addition, in 2021, to support the skills foundations and Top Company Objectives, the Company has defined and assigned compulsory learning plans directly to its employees, covering Ethics & Compliance, Export Control, Data Governance & Protection, Product Safety, Cybersecurity, Internal Controls, Environmental Awareness and other topics. This new approach allows us to secure the needed training and awareness on major company priorities.
In 2021, the Company provided almost 1.2 million training hours to employees. On top of the physical classroom and digital training, in 2021 more than 39,500 employees benefited from leadership development and transformation solutions proposed by the Airbus Leadership University. The university continues to strengthen the Company’s approach to leadership, offering opportunities for all leaders to drive their development one step further, while accelerating the culture evolution and human transformation of the Company.
Learning solutions and managerial opportunities are not the only way to develop people in the Company. Development paths give also possibilities to employees to develop specific skills, competence and jobs, such as Project & Program Manager, Architects & Integrator and Expert career paths.
The Company is also involved in the “Pact for Skills” initiative launched by the European Commission to address the up-skilling and reskilling challenge in Europe. It is working together with aerospace and defence industrial companies, public authorities, and education and training providers, to build common upskilling and reskilling programmes and explore ways of working together in skills partnerships.


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Mobility of employees within the Company’s commercial aircraft business and its two Divisions provides overall benefit and value to the Company. Mobility helps employees develop new skills and competences and serves the business by bringing new ideas and broader perspectives to teams while ensuring to have the right skills in the right place to secure the future. In 2021, as of end of December, more than 10,400 employees have changed jobs through internal mobility.
Remuneration. 
The Company’s overall remuneration policy is in line with local practices and provides employees with a competitive overall compensation package. It is also an enabler to attract new talents and retain talented employees contributing to the Company’s business success.
For employees below manager level, collective labour agreements are applied in the Company’s home countries (France, Germany, UK and Spain). This includes wage levels and increases, supplementary grants and gratifications (e.g. end of year gratification). Starting at manager level, compensation of employees can contain a variable part. The percentage of such variable pay in total compensation increases at higher hierarchical levels.
Support for health care, unemployment insurance, national and company pension systems as well as social security contributions are mainly subject to national regulations and regulations implemented earlier by the founding companies.
Some benefits or specific worldwide schemes are implemented such as sharing the financial and operational success of the Company with the employees (success sharing scheme) or developing the Company ownership culture (Employee Share Ownership Plan – “ESOP”).
Employee Share Ownership Plan. 
The ESOP allows employees to participate in the success of the Company. This plan is an investment option open to eligible* employees to acquire a certain number of Airbus shares. The ESOP scheme has been running in different formats since the foundation of the Company in 2000. The ESOP scheme since 2011 is a “share matching plan” in which the Company matches the number of shares bought by the employee according to set criteria.
In 2021, more than 54,750 eligible employees from 40 countries have seized the opportunity to subscribe and now own 1.97 million shares. (Eligibility rules: an eligible employee in the frame of ESOP 2021 is part of an entity which is at least 50% owned by Airbus, and has been an employee between 31 December 2020 and 17 March 2021.)
V. Outlook. 
Starting in 2022 and over the next three years, the Company is expected to resume recruitment with several thousand positions to be filled in the different functional and geographical areas of the Company to support the recovery and future activity growth, to prepare for the development of future programmes and to continue its generational renewal. A quarter of these recruitments will concern new skills on projects such as those linked to the development of hydrogen aircraft.
Leveraging global attraction campaigns and strengthening collaboration with the business to deliver on staffing needs is key. The staffing challenge will be a joint responsibility between HR and business to deliver on expectations.
In the meantime, the Company will continuously focus on people development to close the gap on critical skills needed and will invest into emerging skills development. The Company aims at becoming an agile learning organisation as reskilling is considered as a major part of the learning culture: in the shortterm, to support critical ramp-up projects, and in the long-term to sustain the acceleration of skills shift driven by the Airbus context and external trends.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 92 Airbus / Registration Document 2021. 
Business Integrity GRI SASB SDGs Others 205 Anti Corruption Business Ethics 16. 
Highest governance body(ies) involved Board of Directors / ECSC Executive Committee. 
Related Corporate Policies and reference documents. 
Anti Corruption Policy, Responsible Lobbying Charter Directives: see below, section III. Risk Management Code of Conduct, Supplier Code of Conduct. 
Airbus Commitments to take into account external standards IFBEC’s Global Principles of Business Ethics, FX Global Code. 
Key metrics 2020 2021. 
Number of employees per appointed Ethics & Compliance Representatives 390 372 % of employees (non-Exec) who have completed the E&C training objective 80% 90%
Number of E&C e-learning sessions delivered to employees (Reporting period: from 1 Oct. to 30 Sep.) 309,682 284,774. 
Number of data privacy e-learning sessions delivered to employees (Reporting period: from 1 Oct. to 30 Sep.)(1) 35,073 9,547 (1) In 2021 the reporting period was changed, from calendar years to Oct-Sept periods, and led to restate past year figures accordingly.
Additional resources. 
Airbus Ethics & Compliance webpage, including CEO statement , Airbus Values. 
Anti Corruption Policy , Responsible Lobbying Charter , Airbus’ commitment on the protection of Personal Data , Code of Conduct , Supplier Code of Conduct , OpenLine , Compliance at Airbus. 
IFBEC website , Global Foreign Exchange Committee website. 
II. Governance. 
The Ethics & Compliance organisation is part of the Legal Department under the ultimate responsibility of the Company’s General Counsel. The aim is to provide strong governance throughout the Company with the global presence of qualified Compliance officers who ensure the Ethics & Compliance programme is implemented consistently in the different functional and operational areas.
The Company’s Chief Ethics & Compliance Officer, who reports to both the General Counsel and the ECSC of the Board of Directors, leads a dedicated team of Compliance professionals who are responsible for supporting and advising across the Company on compliance related topics, supporting the day to day business, performing risk assessments, drafting policies, conducting third party due diligence, investigating compliance allegations, implementing tools and controls and delivering compliance training.
The ECSC also plays a key role in the oversight and continued development of the Company’s Ethics & Compliance programme, organisation and framework for the effective governance of Ethics & Compliance.
In addition to the dedicated Compliance professionals, the Company is coordinating a network of part-time ethics & compliance representatives (“ECRs”), spanning all Divisions, functions, and regions. The number of ECRs slightly increased in 2021, with a total of 340 ECRs at the end of 2021 (compared to 335 at the end of 2020). Although the ECR network members are not compliance experts, they play an important role in promoting the Ethics & Compliance programme and culture and serve as points of contact for any employee who has questions about the Ethics & Compliance programme or wishes to raise an Ethics & Compliance concern, including but not limited to bribery or corruption. The Ethics & Compliance team is animating the ECRs network, providing continuous training and information of the ECRs.
1.2.5 Exemplify Business Integrity. 
I. Introduction. 
The Company’s Ethics & Compliance programme seeks to ensure that the Company’s business practices conform to applicable laws, regulations and ethical business principles, as well as reinforcing a culture of integrity and speak-up. In 2021, Ethics & Compliance continued to be a top priority for the Company, following the completion of the first phase of the ongoing monitorship by the Agence Française Anticorruption within the context of the settlement agreements reached between Airbus and the authorities on 29 January 2020. In its list of priorities for the year, the Company set the objective to Speak Up, Listen Up and act with integrity and respect.
The Company has worked over the past several years to develop an Ethics & Compliance programme that is structured around the following key risk areas: Business Ethics / Anti-Corruption Compliance, Export Compliance and Data Privacy Compliance. Each of these areas is, in turn, supported by dedicated compliance policies and a team responsible for their implementation, together with the identification and proposal of new measures to adapt to a constantly evolving regulatory landscape.
Improving the Ethics & Compliance programme remains a constant and ongoing process, in cooperation with other functions within the Company, in order to sustain and capitalise on our values.


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Likewise, the Personal Data Protection Officer (“DPO”) relies on a team of data privacy experts to guide, train and advise the business with respect to data privacy requirements, and a network of Data Privacy Focal Points in the business functions and affiliates, to support the Airbus data privacy programme. In 2021, the DPO and the data privacy team were integrated in the Legal & Compliance function.
III. Risk Management. 
The Company is required to comply with numerous laws and regulations in jurisdictions around the world where it conducts business. This includes countries perceived as presenting an increased risk of corruption.
Accordingly, since 2017, the Company has been conducting a thorough bribery and corruption risk assessment across its two Divisions and different businesses. The results of this risk assessment are embedded and monitored within the Company’s ERM framework and highlight, among others, the risk of improper payments being made to or via third parties such as sales intermediaries, lobbyists and special advisors, suppliers, distributors and joint venture or offset partners. Further corruption risks include the use of sponsorships, donations, or political contributions to improperly benefit decision-makers, or the provision of excessive or overly frequent gifts and hospitality by Airbus employees. In order to ensure its compliance with Export Control regulations and laws in the EU, US and internationally, the Company continues to review its Export Control compliance programme to ensure it is fit for purpose. Where risks are identified, they are embedded and monitored in the Company’s ERM. Identified risks include potential unauthorised access to export controlled data and hardware by third parties and noncompliance with the International Traffic in Arms Regulations (“ITAR”).
Regarding Data Privacy, the Company undertakes privacy impact assessments depending on the nature of the personal data processed or scale of the processing. In addition, risks relating to the protection of personal data are also assessed in the context of the ERM and kept updated.
Specific directives have been adopted to address the Company’s key compliance risk areas. These include among others: – Requirements for Gifts & Hospitality; – Requirements for Sponsorships, Donations and Corporate Memberships; – Requirements for the Prevention of Corruption in the Engagement of Sales Intermediaries; – Requirements for the Prevention of Corruption in the Engagement of Lobbyists & Special Advisors; – Requirements for Supplier Compliance Review; – Requirements for Compliance Block List; – Requirements for Preventing and Declaring Conflicts of Interest; – Requirements for the Prevention of Corruption related to Mergers & Acquisitions, Joint Ventures, Partnerships and similar Transactions; – Method for the Prevention of Corruption in the Context of International Cooperation & Offset Activities; – Requirements for Anti-Money Laundering / Know your Customer; – Guidelines for Competitive Intelligence Gathering Activities – Requirements for Export Control Sanctions, Embargoes and Screening; – Requirements for Export Control Framework; – Requirements for Export Control Escalation and Voluntary Disclosure; – Requirements for Export Control Brokering; – Requirements for Export Control Classification; – Requirements for Export Control Licences and Agreements; – Requirements for ITAR Part 130 Reporting; – Personal Data Protection Directive, Method and Binding Corporate Rules.
The Ethics & Compliance organisation is charged with oversight and monitoring of these directives to ensure that they are being implemented effectively. Periodic controls on key processes are performed and reports provided to the Company’s Executive Committee and the ECSC, including recommendations to strengthen the Ethics & Compliance programme where necessary.
In addition, the Corporate Audit & Forensic Department conducts periodic, independent audits of the Company’s compliance processes to assess the effectiveness of internal controls and procedures and allow the Company to develop action plans for strengthening such controls.
IV. Implementation/Activities. 
Awareness and training. 
All Company employees are required to undergo a minimum amount of compliance training via e-learning. Additionally, depending on the function, the country and the level of risk implied by their role, certain employees are selected to attend live classroom training as well. Attendance in such cases is mandatory, and managers have a responsibility to ensure that their team members do so.
From 1 October 2020 to 30 September 2021, the Company’s employees followed 284,774 Ethics & Compliance e-learning sessions, including on bribery, corruption and export control. Furthermore, 5,050 employees attended live classroom training on different Ethics & Compliance topics in 2021, the majority of which were delivered in virtual classroom settings due to the pandemic.
Likewise the Company also delivered anti-bribery and corruption training towards higher risk third parties, including sales intermediaries, lobbyists and special advisors. In 2021, 81% higher risk third parties were trained on Ethics & Compliance requirements and expectations.
The Company continued the roll out of the data privacy e-learning as part of the Ethics & Compliance compulsory training catalogue. Approximately 9,500 data privacy training sessions were performed in 2021 (reporting period from 1 October 2020 to 30 September 2021). Since the entry into force of the EU General Data Protection Regulation in 2018, the Company’s employees performed approximately 90,000 data privacy e-learning sessions.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 94 Airbus / Registration Document 2021 “Speak-up” Channel: OpenLine. 
The Company recognises that the Code of Conduct cannot address every challenging situation that may arise, and therefore encourages its employees to speak up through various channels, including through OpenLine (available at https:// www. airbusopenline.com). The OpenLine enables users to submit an alert securely and confidentially, and also to ask questions related to Ethics & Compliance.
In 2020, I&D was expressly added to the definition of the “Human Resources” topic. Product safety, previously covered by a broader “Procurement and Product Security” topic, is now displayed as a separate category as well.
In addition, the dataprotection@airbus.com mailbox is systematically published in the Company’s data privacy policies and information notices specific to the various applications, to ensure that data subjects can exercise their rights and/or lodge complaints.
The Company protects those who speak up and raise concerns appropriately and in good faith. The Company does not retaliate against anyone who raises a concern, or against those who assist in investigations of suspected violations.
Policies and procedures. 
In 2021, the Company continued maintaining its policies and procedures framework, issuing a guidance on third parties categorisation, the compliance block list and translating the Code of Conduct in seven additional languages to maximise the reach of this foundational document. All policies and guidelines are made available to employees on the Intranet, and classroom training is delivered to employees who are particularly exposed to the underlying risks as described above.
On the Export Control side, the Company created an Export Control Compliance programme in early 2020 and has launched the cascade of its Export Control requirements through nine directives and methods throughout the Company. The cascade triggers an update of the relevant business processes and is targeted to be completed early 2022.
Under the terms of the Consent Agreement with the US Department of State (DoS) made public on 31 January 2020, the DoS agreed to settle all civil violations of the ITAR outlined in the Company’s voluntary disclosures identified in the Consent Agreement, and the Company agreed to retain an independent Special Compliance Officer (SCO), who is monitoring the effectiveness of the Company’s compliance with the ITAR for a duration of three years. In 2021, as required under the Consent Agreement, an audit of the Company’s ITAR compliance programme was undertaken by external counsel. For further information, 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)”.
Responsible Lobbying Charter. 
The Company is committed to ensuring that any lobbying activity is undertaken in compliance with all applicable laws and its anticorruption programme. During 2021, the Company launched a Responsible Lobbying Charter (link in table above) aimed at anybody who engages with public officials in any capacity, including third party representatives retained by the Company. The charter outlines the Airbus core principles for responsible lobbying and brings together the key Airbus codes and directives relevant to this topic. The principles are also reinforced by a training module available to all employees.
V. Outlook. 
An effective Ethics & Compliance programme is one that, by definition, continuously adapts to changes and improves over time. Going forward, the Company will continue to assess its risks and monitor and test the implementation of mitigation measures at all levels: corporate level, Divisions, regions and local entities.
When misconduct reveals a gap in compliance policies, procedures or tools, the Company undertakes revisions to its Ethics & Compliance programme commensurate with the wrongdoing and in light of lessons learned. While compliance at the Company will therefore always be a work in progress, the Company is committed to this endeavour, as it aims to make its Ethics & Compliance programme sustainable over time.


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1.2 Non-Financial Information 95 Airbus / Registration Document 2021. 
The Company’s global sourcing footprint is represented as follows based on Tier1 and sub tiers, based on 2020 Airbus International Footprint data (formerly known as value chain analysis, VCA): 27% in North America <1% in South America <1% in Africa <1% in Middle East <1% in Oceania 8% in AsiaPacific 59% in Europe 1.2.6 Responsible Supply Chain. 
I. Introduction. 
At the end of 2020, approximately 21,000 suppliers from more than 80 countries supply parts, components, systems and services to the Company.
Commercial Aircraft 31,134 M€ 40,712 M€
Defence and Space 6,275 M€
Helicopters 3,302 M€ 76% 8% 15% in Europe in Asia in North America in South America in Africa in Oceania 6% 74% <1% <1% <1% 19%
In 2020, the overall external sourcing volume of the Company was valued at around € 41 billion and shared between Divisions with 76% for the Company’s commercial aircraft business, 15% for the Company’s Defence and Space Division and 8% for the Company’s Helicopters Division.
Whilst the Company’s products and services are sold all over the world, the majority of its supply chain is based in Europe and OECD countries. However, in the past few years, the supply chain has become concentrated and more international. In addition, and due to increasing consolidation within the aerospace and defence sector, larger work packages are being placed with a smaller number of lead suppliers.
Also, Airbus regionally supports Small and Medium Enterprises to contribute to its supply chain, particularly through tier one lead suppliers.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 96 Airbus / Registration Document 2021. 
To promote further globalisation of its sourcing footprint, the Company has established regional procurement offices in North America (Washington, DC), India (Bangalore), Asia Pacific (Singapore) and China (Beijing). For the regional sourcing of indirect goods and services, the Airbus General Procurement function is represented in the regional procurement offices. As the Company’s commercial aircraft business and its two Divisions are certified ISO14001, the Procurement function acts in adherence with ISO 14001 requirements.
Responsible supply chain GRI SASB SDGs Others 102-9 - Supply Chain 204 - Procurement Practices 308 - Supplier Environmental Assessment 408 - Child Labor 409 - Forced or Compulsory Labor 414 - Supplier Social Assessment. 
Materials Sourcing 4, 5, 8, 9, 12, 13, 16, 17. 
Vigilance Plan. 
Highest governance body(ies) involved Board of Directors / ECSC Sustainable Supply Chain Roadmap Steering Committee. 
Related Corporate Policies Responsible Mineral Policy, Environmental Policy, Health and Safety Policy. 
Certifications ISO14001 As Airbus commercial aircraft business and the two Divisions are certified, control and influence of the supply chain is concerned.
Airbus Commitments to external standards and frameworks Reference to certain international organisations standards or principles, in particular ILO have been included into the Airbus Supplier Code of Conduct. 
KPIs Target Target year 2020 2021 2021 v. 2020. 
Percentage of sourcing volume(1) of suppliers invited to CDP who have responded 75% 2022 56% 68% +12%
Percentage of identified high risk suppliers(2), who have undergone a sustainability assessment 100% 2021 63% 95% +30%
Percentage of sourcing volume(3) covered by supplier commitment to the Supplier Code of Conduct(4) 85% 2022 NA 79% NA. 
Other key metrics 2020 2021. 
Percentage of assessed suppliers not meeting Airbus’ sustainability expectations (=red flags) 12% 13%
Percentage of action plans defined for suppliers not meeting Airbus’ sustainability expectations Not started 15%
Percentage of responding suppliers to the CDP scoring A or B 56% 53%
Number of sustainability alerts 5 12%
Assumptions (1) Based on 2019 turnover. (2) Based on 2019 risky suppliers (see details further in § Risk Management/1. Supply base risk mapping). (3) Based on 2020 turnover. (4) Subsidiaries excluded from the scope.
Additional resources. 
Supplier Code of Conduct , Environmental Policy Statement , Responsible Mineral Policy statement ,
Be an Airbus supplier on Airbus.com IFBEC , Responsible Minerals initiative , OECD Due Diligence Guidelines for Responsible business Conduct. 
II. Governance. 
The Company strives to make environmental and social responsibility a core element of its procurement strategy. This includes managing the relationships with suppliers throughout the sourcing strategy, supplier selection, contract management, supplier monitoring and development. The Company’s suppliers must comply with all applicable laws and regulations. In addition, all business shall be conducted by suppliers in compliance with the principles of the Company’s Supplier Code of Conduct, which is the document of reference for the Company’s responsible supplier management. This Supplier Code of Conduct represents the group-wide values and principles in line with internationally recognised standards and conventions (such as OECD and ILO).
In 2021, the Sustainable Supply Chain Roadmap (SSCR) steering committee validated the supply chain sustainability ambition: to engage and commit our supply chain around Airbus’ principles and core values. It translates into four main priorities for a more sustainable supply chain.
– Lead towards clean aerospace, reflected in the decarbonisation of our supply chain, as well as transparency on substances in products and processes.


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1.2 Non-Financial Information 97 Airbus / Registration Document 2021 – Respect human rights and foster inclusion through zero tolerance for forced labour and use of conflict minerals. – Build our business on the foundation of safety and quality, by spreading the culture of product safety to key suppliers and requiring a safe workplace environment for suppliers’ employees. – Exemplify business integrity expressed thanks to zero tolerance for corruption and screen and approve all our suppliers (see “– 1.2.5 Exemplify Business Integrity”).
Those priorities are consistent with the most material topics identified in the Airbus supply chain.
Concrete sustainability targets have been included in the 2021 objectives of the Chief Procurement Officer of Airbus commercial and all direct reports. This includes the deployment of the Supplier Code of Conduct for 50% of the Company spend, the evaluation of all suppliers identified as having sustainability risks, and the assessment of the supplier strategy on climate change for 50% of the Company spend.
The SSCR reports to a steering committee chaired by the Head of Sustainability & Environment, and the Head of Procurement Transformation & Central Services. The steering committee includes the representative of the Chief Procurement Officer of Airbus Commercial and the Chief Procurement Officers of Airbus Helicopters and of Airbus Defence & Space, as well as the Head of Health & Safety, the Head of Product Safety and the Head of Ethics & Compliance, or their nominated representatives. The Executive Vice President Communication and Corporate Affairs and the Chief Procurement Officer of the Company act as sponsors of the SSCR. In addition, the Head of Procurement Transformation & Central Services is part of the procurement leadership team (PLT) and is responsible for facilitating the communication on sustainability activities between the SSCR and the PLT on a regular basis.
The Chief Procurement Officer of Airbus also reports to the ECSC on the progress of Airbus responsible sourcing strategy implementation.
All sustainability activities in the supply chain are based on the following key elements and principles of due diligence following the OECD Due Diligence Guidance for Responsible Business Conduct: – supply base risk mapping; – supplier engagement and contractual requirements; – supplier assessment/audits and development plans; – policies, tools and reporting.
For any anti-corruption topics in the supply chain, the Procurement function cooperates closely with the Legal & Compliance department.
III. Risk Management. 
The Company’s direct procurement-related risks are embedded into the Company’s ERM system. A specific risk category regarding sustainability-related risks in the supply chain has been integrated into the risk management plan.
1. Regulatory non-compliance. 
The Company may not receive sufficient visibility and information from its supply chain in regards to compliance with environmental, human rights, health & safety laws and regulations. In the event of an industrial accident or other serious incident in the supply chain, or any problems of the supplier to fulfill its operational or product compliance, this may also have a significant adverse effect on the reputation of the Company and its products and services. The Company’s reputation may also be affected by the public perception of social and/or environmental impacts of its supply chain’s industrial operations on local environments, communities, biodiversity and the general public’s health.
2. Supplier’s impact on local environment. 
From the extraction of raw materials to the manufacturing of parts delivered to the Company, a supplier’s industrial operations may have significant adverse environmental impacts on the local environment where the activity is performed, with possible impacts on air, water, soil, biodiversity, workers’ occupational health and safety, on the health of the general public, on the land rights of the local or indigenous communities and on forced & child labour.
3. Disruption risk. 
In the event that a supplier fails to comply with environmental, human/labour rights, health and safety laws and regulations, even if caused by factors beyond its control, that failure may result in the levying of civil or criminal penalties and fines against the supplier. Regulatory authorities may require them to conduct investigations and undertake remedial activities, curtail operations or close installations or facilities temporarily to prevent imminent risks.
In response to the above 1. to 3., the Company deploys responsible sourcing activities and specific supplier due diligence actions in the frame of the SSCR.
4. Risk of product non-compliance. 
The various products manufactured and sold by suppliers must, as a minimum, comply with applicable environmental, human/labour rights, health and safety laws and regulations, for example those covering substances and product composition. Even if a supplier seeks to ensure that its products meet the highest quality standards, increasingly stringent and complex laws and regulations, new scientific discoveries, delivery of defective products or the obligation to notify or provide regulatory authorities or others with required information (such as under the REACH regulation) may force it to adapt, redesign, redevelop, recertify and/or remove its products from the market.
Seizures of defective products may be pronounced and could prevent delivery to the Company.
In response, a Procurement Task Force has been established to ensure group-wide governance for supplier management and assessment of chemical regulations and obsolescence impact. This task force also coordinates communication to suppliers on substance issues and on substitution solutions qualified by the Company.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 98 Airbus / Registration Document 2021. 
IV. Implementation/Activities: Airbus Supplier Vigilance Plan 1. Supply base risk mapping. 
Sustainability Compliance Risks Since 2018, the Procurement Responsibility & Sustainability department has carried out proactive social risk mapping in line with international guidance, internal commodity expertise and externally available country indices. In 2021, with the support of external advisors, Airbus upgraded its risk mapping methodology building on risk indexes considering the location and the type of activity performed by the suppliers and delivering an ongoing and up to date risk assessment. This risk mapping will be incorporated in 2022 into the Company’s supply chain management tools to provide visibility of those risks to the whole procurement organisation.
Number of business-relevant external risk suppliers identified in 2021 (including tier ones and lower tiers) Based on the Company’s active supply base and new suppliers identified as possible future partners, 837 suppliers were identified as possible risky suppliers. After business impact and business strategy analysis, 412 suppliers were confirmed as high risk in 2019. In 2021, analysis was updated in consideration of business context evolution, leading to 395 business-relevant high risk suppliers.
2. Supplier assessment / audit and development. 
Since 2019, the Company has worked with external expert companies to conduct sustainability-related, evidence based desktop assessments and specific on-site audits. The assessments cover social compliance criteria such as human rights, labour practices, health & safety and anti-corruption as well as environmental regulations and sustainability criteria based on an environmental questionnaire developed by IAEG. At the end of 2020, 63% of the suppliers identified as high risk following the Company’s 2019 risk mapping methodology have completed an evidence based desktop assessment. In 2021, the percentage of risky suppliers assessed has increased to 95% compared to a target set at 100%.
The progress and results of those assessments have been communicated during events with suppliers and engagement took place with all suppliers presenting findings.
Of the 95% of suppliers completing an assessment, 13% of which (53) have at least one red flag (mainly linked to environmental issues). In 2021, the Company has started to engage on the results asking those suppliers to complete action plans to close any finding.
During 2021, the Company reviewed the self-assessment questionnaire and assessment grid to ensure that a) they are fit for purpose, b) that critical issues are identified and c) there is more efficient completion. Proposed changes include adapting the questions, particularly on environmental topics, to take into account the size of supplier (e.g. feedback has told us that smaller suppliers don’t necessarily have the resources to complete such a demanding questionnaire) and to the assessment grid to identify critical issues, particularly with regard to human rights and health & safety. In addition, the Company is currently reviewing its relationship with suppliers who refuse to participate in its assessment programme.
Specifically on environmental matters, the Company further fostered REACH awareness in the supply chain and engaged with suppliers to accelerate the substitution and manage the use of the most hazardous substances.
In particular, regarding the REACH EHS readiness of suppliers, the Company focused on: – engagement with 238 in situ suppliers through webinars and supplier conferences to develop their readiness to comply with enhanced REACH EHS conditions when working on the Company’s sites. Further direct exchanges with the Company’s EHS experts has been organised with 42% of them; – evaluation of the maturity of external suppliers in the Company qualified processes in regards to the future enhanced protection requirements that are being defined by the European Commission: – out of 357 suppliers of the Company qualified processes using chromates in industrial operations, the 96 most impacting suppliers have been assessed on-site by a third party on behalf of the Company. The Company engaged with those suppliers, which revealed findings and requested them to demonstrate and launch action plans for improvement. By end of 2021, all the suppliers have either a comprehensive action plan or successfully closed the major findings.
In 2019, the Company introduced supplier factory visits called “the Gemba Walk” pocketbook, applicable to commercial aircraft activities, which is a practical and visual guide for the Company’s employees when visiting the shop floor of a supplier, supporting the identification and reporting of risks or improvement opportunities observed during factory visits. A dedicated pocketbook covering environment, health & safety and human rights risks was also developed in 2019 and published on the Airbus intranet. Unfortunately, restrictions put in place since 2020 due to COVID-19 significantly reduced the effectiveness of identifying risks through supplier shop floor visits.
3. Supplier engagement. 
Contractual requirements. 
The Company’s standard procurement contract templates have evolved over the last few years to reinforce clauses relating to sustainability and environment which require suppliers to: – comply with all applicable laws and regulations relating to production, products and services; – provide information on substances used in manufacturing processes and contained in the product itself (covering both hazardous substances and conflict minerals); – provide information on environmental, health & safety matters such as safe usage and management of products across its lifecycle (including waste management); – implement an Environmental Management System based on ISO 14001 or equivalent; – comply with the Company’s anti-corruption and bribery requirements; and – commit to apply and cascade across its supply chain the principles of the Company’s Supplier Code of Conduct, including with regard to environment, human rights, labour practices, responsible sourcing of minerals and anticorruption. In addition, since 2020, the Company’s Defence


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 99 Airbus / Registration Document 2021 and Space Division implemented criteria on sustainability in the call-for-tender procurement process. Only those suppliers which meet criteria, including in particular agreement to comply with the Company’s Supplier Code of Conduct, can continue with the call for tender procurement process. Positive answers to additional criteria, such as commitment to the SDGs, sustainable projects, life-cycle assessment, waste and packaging reduction, will prioritise suppliers for further selection. It has been agreed that this approach will be extended to the whole Company in January 2022.
In 2021, the SSCR steering committee agreed to anchor sustainability requirements into the Company’s procurement processes. This will be implemented in 2022 and will include an obligation to get confirmation from suppliers to apply and cascade our sustainability principles and environmental requirements. It also includes the agreement from suppliers to regularly fulfil the evidence-based assessment on sustainability and for our most important suppliers to be transparent about their climate change strategy. This will ultimately require suppliers to cooperate when a sustainability risk is identified, including with deep diving in the supplier’s supply chain, and require Airbus to take advantage of supplier visits to evaluate operational sustainability management.
In 2020, the process to obtain a commitment from the Company’s suppliers to apply the principles of the Company’s Supplier Code of Conduct was reviewed. During 2021, 79% of the Company’s sourcing volume had committed to its principles (based on a target of 50% in 2021 and 80% by 2022).
In 2021, the Annual Supplier Conference for the Company’s commercial aircraft business took place virtually and sustainability was part of the discussions. Three of the Company’s suppliers were nominated for the Sustainability Award, which was awarded to Dynamatic Technologies for creating a safe working environment for employees, suppliers and customers whilst at the same time helping society by developing low cost ventilators. For the first time, Airbus Defence and Space awarded a supplier for outstanding sustainable behaviour during its supplier conference 2021. Premium AEROTEC GmbH was awarded for its good transparency with regards to chemical substance traceability (REACH), for the extensive collaboration during EHS audits and the immediate implementation of all improvement recommendations.
However, on top of this annual event, discussions with suppliers on sustainability continued during various supplier meetings or virtual supplier conferences for specific commodities.
4. Training & awareness. 
Throughout 2021, the Procurement Responsibility & Sustainability department supported both internal awareness sessions and workshops as well as external supplier meetings on sustainability topics in the supply chain. The Company’s internal Procurement Academy provides training on core competencies and skills to develop procurement expertise and prepare employees within the Procurement department for the challenges of the future. Sustainability modules are embedded in Procurement’s newcomer induction path and manager development programme. This training targets supply chain quality managers, ordering officers and buyers.
Additional means have been developed in 2021: – A toolkit was developed presenting the sustainable supply chain roadmap. It is built around three main chapters: – the first chapter focuses on Airbus’ ambition for sustainability at the group level, with its four commitments around the environment, human rights, health & product safety and business integrity; – the second one, more specifically, concerns the sustainable supply chain, its ambitions and priorities. The three-step approach has also been developed, which consists of commitment, assessment and engagement & development of suppliers; – the third chapter focuses on the initiatives detailed earlier in this report: Airbus Supplier Code of Conduct, Supplier Sustainability Assessment – notably led by Intertek –, the decarbonisation of the Supply Chain – including CDP targets –, data transparency in products and processes, product safety and business integrity. It gives a clear overview of the actions underway as part of the roadmap with tangible targets and ambitions. The purpose of this document is to raise general employee awareness and provide Procurement teams with the necessary visibility on related processes with suppliers. It also provides tangible figures and targets, and a better understanding of the sustainable supply chain roadmap. For the external audience (this toolkit has also been made available to suppliers in the Airbus suppliers portals), it aims to provide greater transparency into the Company’s’ values, initiatives and the direction it wants to take. – An internal website has been created to communicate Airbus’ sustainability progress in the supply chain and to give a better understanding about the initiatives to Procurement teams.
Two trainings will be developed in 2022: one aimed at increasing employee awareness of supply chain sustainability management, the other one intended to develop buyers’ awareness of environmental clauses in contracts.
5. Grievance mechanism. 
From 2019, the Company’s OpenLine has been accessible to external stakeholders, such as suppliers and their employees, as a secure and confidential channel through which they may, on a voluntary basis, raise alerts related to the Company in the areas of bribery, human rights, environment and health and safety. This medium is available through the Company’s OpenLine website (www.airbusopenline.com) in 13 languages. For further information on OpenLine, see “– 1.2.5 Exemplify Business Integrity”. Access to this OpenLine has been reiterated in the updated Supplier Code of Conduct.
In addition to OpenLine, the Company’s sustainable supply chain roadmap may receive alerts from other sources including through the supplier onboarding process, media or directly from employees. During 2021, the sustainable supply chain roadmap received alerts on 12 potential allegations relating to environment damages and human rights (forced labour and land rights of the indigenous communities) in its supply chain. Analysis and/ or investigations of those alerts have been completed or are in progress according to best practice developed by the Legal & Compliance team including: – initial review to determine if an investigation is needed; – investigation: prepare investigation plan, collect documentary evidence, and conduct interviews in a (confidential) and timely manner;


1. Information on the Company’s Activities / 1.2 Non-Financial Information 100 Airbus / Registration Document 2021 – assessment: analyse information and documentation collected during the investigation, prepare an investigation report summarising the findings and propose remedial actions necessary to reasonably respond to and prevent the recurrence of the conduct, if any; – closing the investigation and reporting; – monitoring of the implementation of remedial actions.
6. Work with external stakeholders. 
As mentioned under “Environment” in section 1.2.2, the Company is a founding member of IAEG, which is working on common aerospace industry standards and tools to manage environmental obligations. More specifically, for the supply chain, IAEG has developed: – a supply chain environmental survey, which the Company implemented in 2019 and which will be used as environmental assessment module, as mentioned in section 2 above; – an EMS implementation guideline to encourage a wider uptake of EMSs as appropriate for each supplier in a phased approach and cost effective, consistent and supportive manner; – the definition of an Environmental Qualification Program to assess and develop the environmental maturity of suppliers. Under Airbus leadership, the IAEG extended this qualification programme to other sustainability topics. Concretely, the IAEG terms of reference have been reviewed to allow such an extension, presentation by expert companies on supply chain risk assessment and management have been received, benchmark with the IAQG (International Aerospace Quality Group) has been performed and a request for information has been launched to build a sectoral approach for supplier engagement.
In December 2021, the IAEG Board of Directors approved the creation of a working group to develop an ESG supplier engagement programme.
As a co-founder of the International Forum on Business Ethical Conduct (“IFBEC”), the Company is supporting the application of global standards for business ethics and compliance. IFBEC members have established a Model Supplier Code of Conduct, which expresses the minimum ethical standards to be applied by suppliers throughout the aerospace and defence industries. It also encourages suppliers to go beyond legal compliance, drawing upon internationally recognised standards in order to advance in social and environmental responsibility and business ethics.
All suppliers will now be asked to sign a confirmation of compliance with the principles of the revised Supplier Code of Conduct (or to confirm their own practices are aligned with the principles set out in this Code), and to cascade these principles throughout their own supply chains. The Company is committed to support suppliers, where necessary, to improve their own human rights due diligence.
Since 2019, the Company has been a member of the Responsible Business Alliance’s Responsible Mineral Initiative (“RMI”), in order to further enforce activities of responsible sourcing while applying industry standards for supplier due diligence and data management in accordance with the OECD framework.
7. Promoting disability-friendly companies. 
Since 2011, in France the Company has been promoting employment of disabled people by its suppliers. This includes a request for relevant bidding suppliers to propose a partnership with disability-friendly companies during the call for tender process. In 2020, the Company’s subcontracting activities have decreased due to the COVID-19 crisis. This decrease also affected disability-friendly companies, but the Company has been committed to support them during the crisis. In 2020, the global volume of business with disability-friendly companies in France was around € 40 million, which represents minus 20% compared to 2019 figures. However this number has been multiplied by five for the last ten years and the ambition is to reach around € 100 million in 2025, by developing contracts in engineering and IT services thanks to the Digital Consortium (composed of 65 French disability-friendly companies). At the end of 2021, around 60 disability-friendly companies are working with the Company. In November 2021, the Company organised a (Dis)Ability Forum in Toulouse with 35 disabilityfriendly companies and 150 participants. In 2022, depending on the sanitary crisis, (Dis)Ability Forums could also be organised in Spain and Germany.
8. Responsible mineral sourcing. 
The Company places great importance on the responsible sourcing of materials used in manufacturing. Some minerals including 3TG (tin, tungsten, tantalum and gold) are necessary for the proper functioning of components within its products. The Company largely does not directly import minerals but these minerals are found in certain products the Company procures. In that context, the Company requires all suppliers to comply with applicable laws and regulations on conflict minerals, including any 3TG conflict minerals. In 2019, the Company released a Responsible Mineral Policy, which details its engagement to improve safety and human rights conditions in the mineral supply chains. As introduced in §6. Work with External Stakeholders, the company will benefit from the RMI experience and available audits, tools and standardised ways of working. The Company is also monitoring developments at the European Commission on critical raw materials (CRM) and is investigating the possibilities to take a deeper look at its related supply chain, through direct involvement and/or trade associations. The update of the Supplier Code of Conduct (available since Q1 2021) also requires suppliers to pay more attention to CRM responsible sourcing. The new Supplier Code of Conduct formally requires suppliers to establish a policy and a management system to assure that critical raw materials are sourced responsibly. For the small portion of direct procurement of minerals in the Company’s Defence and Space Division, the Company has established a dedicated Conflict Mineral Management System, which describes the necessary activities needed to monitor potential future legal obligations linked to the upcoming EU regulations on the importation of 3TG. For this small portion of direct import, the Defence and Space Division is proactively asking suppliers to disclose proof of responsible sourcing and is cross-checking this data with third parties audits available through the RMI trade association.


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 101 Airbus / Registration Document 2021 9. Plastic-free supply chain. 
Based on the SDGs, specifically SDG 12 (responsible consumption and production), a plastic-free supply chain project was launched in 2019 within the Company’s Defence and Space Division, with the aim of reducing, reusing and recycling plastic waste and packaging in the Division’s scope of involvement by 2025 (for example, production/maintenance, logistics, offices and supply). As a result of this project, Airbus Defence and Space defined for the first time a single-use plastic reduction total cost of ownership of 5% for the production area. Due to the implementation of plastic-free packaging alternatives, a 14% reduction of single use plastic in the logistics area of all Airbus Defence and Space sites has been achieved for 2021, corresponding to 127,991m2 of single-use plastic replacement based on inventory done. In addition to this great achievement in logistics, plastic-free alternatives have been tested in the clean rooms of Toulouse-Labege and in the production and maintenance areas in Manching.
By the inclusion of the packaging paragraph in the new Supplier Code of Conduct and by the inclusion of single use plastic clauses in some contractual requirements, we aim to move progressively from the current take-make-waste extractive industrial model to a circular economy approach towards a sustainable way to use plastic.
10. CO2 emissions. 
During 2021, the Company engaged with its top suppliers by requesting them to respond to the CDP climate change questionnaire. 169 of the Company’s top suppliers, covering 80% of the Company’s sourcing volume, were contacted and 121 suppliers have completed the CDP questionnaire (68% in spent). The results from this questionnaire will allow the Company to identify supplier strengths and potential areas of improvement and to engage with non-responsive suppliers in order to improve the response rate in 2022. Next year the Company plans to get responses from 75% in spent of the Company’s supply chain.
In 2021, 53% of responding suppliers received an A or B score, representing 61 suppliers. In 2020, 56% of the responding suppliers had received an A or B score representing 25 suppliers. The Company plans to request an improvement plan from suppliers with identified weaknesses and aims to define cooperation activities with suppliers that have already reached an A score. In the years to come, the Company will be able to provide measures and analyses on how the scoring is improving.
The Company also evaluated the carbon footprint of its supply chain, by applying the methodology developed by the IAEG. For further details, see “– 1.2.2. Lead the Journey Towards Clean Aerospace”.
V. Outlook. 
The sustainable supply chain roadmap will evolve to actively mitigate sustainability risks in the supply chain, adapt to evolving sustainability requirements and support the Company’s ambition to be more sustainable.
Actions to be progressed during 2022 include: – the formalisation and reinforcement of the process to collect sustainability-related alerts, the management of those alerts, the engagement with external stakeholders, as well as the communication and reporting on the effectiveness of our actions. This action has been launched into consideration the analysis of the Company’s supply chain due diligence performed in 2021 and the German act on supply chain due diligence; – reinforcing the adherence of the Company’s Supplier Code of Conduct principles throughout the Company’s supply base; – extending the scope of supplier sustainability assessments by requesting new suppliers to perform such an assessment and by extending to existing contracts in order to reach 80% of the spend volume in 2025; – engaging with target suppliers based on supplier assessment outcome,- and developing action plans when required; – further integrating sustainability elements into procurement processes; – developing specific training modules on sustainability and other solutions to support internal awareness in purchasing commodities. This will include awareness on the Company’s new Supplier Code of Conduct; – the deployment of a digital solution to further enhance the collection of data from suppliers on conflict minerals, critical materials and regulated substances in the products delivered to the Company.
Regarding environmental sustainability and substance management, the Company will focus on the following in 2022: – engaging and discussing with key CO2 contributors in its supply chain, leveraging the CDP to identify opportunities to improve their climate change management and reduce emissions.
Cooperating with equipment suppliers to better assess the environmental impact of the Company’s products, improve the Company’s ecodesign practices and drive supplier innovations that mitigate their products’ impact over their entire lifecycle.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 102 Airbus / Registration Document 2021 1.2.7 Community Impact. 
I. Introduction. 
Airbus strives to support vulnerable communities and young people throughout the world where it operates and beyond by mobilising its products, services and employees focusing on equitable and measurable solutions, in line with the Company Purpose.
Community Impact GRI SDGs 413 - Local Communities All 17 SGDs, with focus on 1,2,3,4,5,13 and 17. 
Highest governance body(ies) involved Board of Directors / ECSC Airbus Foundation Board of Directors. 
Related Corporate Reference Documents. 
Directive on Sponsorships, Donations & Coporate Membership, the Bylaws of the Airbus Corporate Foundation and the Airbus Foundation Endowment Fund Upcoming: Community Impact framework. 
Key metrics 2020 2021. 
Number of Sustainability Ambassadors 0 207. 
Add ressources Community engagement on Airbus.com , The Airbus Foundation , Supporting Education. 
II. Governance. 
The Sustainability – Develop & Engage department manages the global strategy and framework for community impact at Airbus and supports the operations of the Airbus Foundation. A global network of community impact focal points representing France, Germany, Spain, the UK, the Americas, India, China, Asia Pacific and the Divisions has been established, as well as a committee of specific topic experts who provide guidance, assessment and recommendations according to the community impact priority themes. Additionally, the Company’s voluntary network of Sustainability Ambassadors has been launched and these passionate employees are key for helping raise awareness of and championing sustainability and community impact initiatives. Launched in June 2021, this network currently has over 200 members onboarded, representing 19 sites in Europe, China, and the US. At a business level, there are standard reporting lines to the Sustainability & Environment organisation with top level oversight provided by the ECSC at the Company’s Board of Director level.
The Airbus Foundation and Airbus Foundation Endowment Funds are registered as non-profit entities of general interest under French law, with specific Articles of Association that define their respective mission and remit. Their strategy and operations are led by the Managing Director and each entity has formal governance with its own Board of Directors. The Airbus Foundation Board of Directors is chaired by Julie Kitcher, EVP Communication & Corporate Affairs and comprises membership from across the Company including: – Thierry Baril, Chief HR and Workplace Officer; – Bruno Even, CEO Airbus Helicopters; – Michael Schoelhorn, CEO Airbus Defence & Space; – Amparo Moraleda, Representative of the Company’s Board of Directors.
Additionally the Board comprises employee representatives and external experts.
The Airbus Foundation and Airbus Foundation Endowment Fund annual reports and accounts are submitted annually to the French authorities.
III. Implementation/Activities. 
As the world faces this challenging era, it is critical for the Company and its employees around the world to unite to address the growing societal challenges and invest in developing the future generation.
Supporting vulnerable communities. 
During 2021, focus continued on supporting vulnerable communities through disaster response, innovation or fundraising to tackle topics such as poverty, hunger and healthcare. In the Asia Pacific region, the fight against COVID-19 continued through several cross-divisional initiatives to deliver medical equipment and supplies to healthcare systems in Indonesia, Malaysia, the Philippines, Thailand and Vietnam. Wherever possible, the equipment and supplies were sourced locally and reacted to local needs, with the donations arranged by the teams based in the region. Airbus India responded to the COVID-19 crisis by procuring and delivering more than 36 tonnes of medical equipment to the Indian Red Cross Society, including oxygen plants and mobile intensive care units, and deploying humanitarian flights to transport supplies from abroad. In the Americas, employees from all Divisions participated in a four-month virtual, inter-site competition. The Airbus End Hunger Games competition raised funds to benefit non-profit organisations fighting child hunger and located across the US, Canada and Latin America. Beneficiary organisations included Feed the Children, World Central Kitchen, Food Banks Canada, Nutre a un Niño, Da Rua and TECHO. Along the same theme of fighting hunger in vulnerable communities, employees in Seville donated more than 1,200 kg of basic supplies to the Seville Food Bank Foundation.
The Airbus Foundation, the Company’s philanthropic arm, also continued to support its partners in COVID-19 and disaster response by coordinating humanitarian flights carrying more than 16 tonnes of aid to the Ivory Coast, Uganda and Nepal. Additionally, 110 helicopter flight hours were chartered in Chile and Papua New Guinea to support communities impacted by COVID-19, and in Haiti to conduct aerial assessment following the earthquake in 2021. The Airbus Foundation also


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 103 Airbus / Registration Document 2021 responded to over 80 satellite imagery requests from partners representing around 43,000 km2 for disaster assessment and response plans. In addition, a bespoke satellite imagery training session was provided to Action Against Hunger to increase their capacity in satellite imagery analysis and interpretation.
The Airbus Foundation also participated in the Action Against Hunger (AAH) global wellbeing challenge Connected Against Hunger’. During four weeks, over 600 Airbus employees collectively walked, ran and cycled more than 182,000 kilometres to raise funds to contribute to the work of AAH.
Supporting the future generation. 
Young people are the lifeblood of our future and of society. It is crucial that we inspire and engage young people, particularly by playing an active role in fostering inclusion, diversity and community values at an early age. The Company continued to offer support through mentorship and education to enable students to develop the creativity, innovation, leadership and critical thinking skills that will serve them well in the future and help them to tackle their communities’ challenges.
Specific actions ranged from the provision of 40 scholarships from Airbus Canada at McGill and Polytechnique Montréal (ten scholarships per year for four years), to online and offline classes across five cities in China reaching 3,000 students, plus a mentorship and funding scheme supporting around 40 university students in China who were struggling economically.
Bringing science to life in the classroom, the employee-led initiative, Humanity Lab, developed an educational wind-tunnel for use in schools in Africa, prioritising low-cost designs with components that could easily be sourced or 3D printed locally. Since 2018, Humanity Lab projects have been supported by more than 150 committed employee volunteers to innovate solutions for disability, environment, education or humanitarian issues.
The Airbus Foundation has enriched its STEM (Science, Technology, Engineering and Mathematics) digital platform – The Airbus Foundation Discovery Space (AFDS) – with new educational videos and activities to support its youth programmes across 17 countries in Europe, Africa, Asia, and the Americas. In 2021, the programmes involved over 400 volunteers and directly reached around 4,700 young students. The fourth edition of the AFDS Moon Camp Challenge built on the success of previous years with 1,823 projects submitted from 53 countries by over 4,100 students and supported by over 600 teachers.
Airbus Foundation Youth Development Programmes. 

Americas - Mirabel, CANADA - Wichita, KS, USA - Mobile, AL, USA - Mexico city, MEXICO - Itajuba, BRAZIL. 
Europe: - Stevenage, UK - Filton, UK - Broughton, UK - Ottobrun, GERMANY - Hamburg, GERMANY - Manching, GERMANY - Friedrichschafen, GERMANY - Donauworth, GERMANY - Elancourt, FRANCE - Toulouse, FRANCE - Marseille, FRANCE - SPAIN (national programme)
Africa: -KENYA -BOTSWANA -MALAWI -NIGERIA -SOUTH AFRICA. 
Asia: - KOREA - CHINA - PHILIPPINES - PAKISTAN


1. Information on the Company’s Activities / 1.2 Non-Financial Information 104 Airbus / Registration Document 2021. 
Protecting the future of our planet 2021 saw a multitude of employee-led initiatives aimed at positive environmental action. Employees from several countries including China, Spain, Germany, France and the UK volunteered in projects organised in partnership with local infrastructure organisations to support activities such as local waste cleanup and tree planting.
In addition to its long running humanitarian response and youth development actions, in 2021 the Airbus Foundation launched the development of a third pillar focusing on nature preservation and minimising the environmental impact of humans. As part of its pilot phase, the Airbus Foundation joined forces with the Connected Conservation Foundation in a new partnership that aims to help preserve wildlife and natural ecosystems through shared technologies and resources. Under the agreement, Airbus’ high-resolution satellite imagery is being provided and teams are working together with the Connected Conservation Foundation’s on-the-ground digital technologies to help recover populations of threatened species and stop habitat degradation. The partnership’s first project is focusing on novel approaches, using artificial intelligence to search high-resolution imagery pixel by pixel to detect large animals in Madikwe, South Africa and in Northern Rangelands Trust conservancies in northern Kenya.
IV. Outlook. 
In order to strengthen the Company’s collective approach to community impact, a new global framework is in development to be launched early 2022. Aiming to bring together the various business and philanthropic channels for community impact under a common direction, the framework will focus on sustainable, equitable and measurable initiatives focused on three pillars: advancing the support to vulnerable communities, the development of the future generation and protecting the future of our planet.
As part of the development of the community impact framework, 23 pilot projects have been selected from across 19 countries with a focus on contribution to the priority themes, ensuring community involvement in the identification of needs and solutions, and embedding impact requirements to ensure that the projects achieve positive, lasting impact for beneficiaries and communities. The outcomes of these projects will contribute to the definition of our impact measurement in 2022.
In addition, to support the framework and encourage employee engagement, Airbus, in cooperation with the Airbus Foundation, will deploy a new digital platform in early 2022 that facilitates a direct connection with almost two million community causes around the world.
1.2.8 ESG Data Board. 
ENVIRONMENTAL PERFORMANCE. 
GRI KPI Unit 2021 2020 2019. 
Energy EN3. 
Total energy consumption (excl. electricity generated by CHP on site for own use) GWh 3,774 3,815 4,638. 
Energy intensity (per Total Revenues) GWh/bEUR 71.4 75.8 64.5. 
Energy consumption from stationary sources GWh 2,728 2,665 2,989 of which gas GWh 1,266 1,234 1,349 of which heat and steam * GWh 158 123 135 of which electricity * GWh 1,259 1,269 1,460. 
Percentage electricity purchased from grid GWh 99.9% 99.9% 99.99%
Total renewable electricity consumption GWh 405 254 143 of which purchased electricity from renewable sources REC GWh 404 253 142 of which produced electricity from renewable sources GWh 1 1 0. 
Percentage renewable electricity % 32% 20% 10%
Energy consumption from mobile sources GWh 1,046 1,150 1,649 of which road & maritime Diesel used in Oversize Surface Transportation GWh 335 405 540 of which Kerosene GWh 682 716 1,072 used in Beluga Transport GWh 384 426 651 used in Flight Test GWh 298 290 421 of which Sustainable Aviation Fuel GWh 4 1 : 2021 data audited by EY®.


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 105 Airbus / Registration Document 2021. 
GRI KPI Unit 2021 2020 2019. 
Air emissions. 
EN16 Scope 1&2. 
Total Scope 1 + Scope 2 CO2 emissions ktons CO2e 827 882 1,114. 
Total direct CO2 emissions (Scope 1)(1) ktons CO2e 562 587 747. 
Total indirect CO2 emissions (Scope 2)(2) ktons CO2e 265 295 367. 
GHG intensity (per Total Revenues) gCO2e/EUR 15.6 17.5 15.5. 
EN17 Scope 3. 
Indirect CO2 emissions Oversize Transportation (1)
Indirect CO2 emissions Business Travel (3) ktons CO2e 17 22 109. 
Indirect CO2 emissions Use of Sold Products – Comm. aircraft, base scenario(4) ktons CO2e 463,592 440,361 731,203 of which indirect emissions from the production of fuel ktons CO2e 82,690 78,546 130,423. 
CO2 per passenger/km for delivered products gCO2/pax.km 62.6 63.1 66.2. 
Indirect CO2 emissions Use of Sold Products – Comm. aircraft, ATAG SAF uptake ktons CO2e 384,781 374,307 731,204. 
Indirect CO2 emissions Use of Sold Products – Comm. aircraft, Full potential ktons CO2e 278,155 264,217 438,722. 
Indirect CO2 emissions Use of Sold Products – Civil helicopters ktons CO2e 1,137 1,085 NA of which indirect emissions from the production of fuel ktons CO2e 203 193 NA. 
Indirect CO2 emissions Purchased Goods and Services ktons CO2e NA 11,346 NA. 
CDP Rating (based on previous year disclosure) Score AAB. 
Internal Carbon Pricing EUR/ton 150 30 30. 
EN20 Total VOC emissions(5) tons 1,051 1,047 1,462. 
EN21 Total SOx emissions tons 14 14 15. 
Total NOx emissions tons 222 239 282. 
Water EN8. 
Total water withdrawal (note: formerly reported as “consumption”) m3 3,078,590 3,371,030 4,149,241 of which percentage purchased % 84% 85% 88% of which percentage from surface water sources and collected rainwater % 6% 5% 5% of which percentage from ground water sources % 10% 10% 7% of which percentage from all areas with high water stress(6) % 36% 37% 38%
EN22 Total water discharge m3 2,870,748 3,099,946 3,757,358. 
Waste EN23. 
Total waste production, excluding exceptional waste tons 69,660 74,898 99,042 of which percentage hazardous waste(7) % 27% 29% 27%
Material recovery rate(8) % 55% 51% 54%
Energy recovery rate % 21% 21% 21%
EMS certification. 
Percentage of operations with ISO 14001 / EMAS certification (in % workforce) % 88% 88% 87%
Percentage of operations covered by reporting (in % workforce)(9) % 92% 92% 92%
Scope: Reported data covers 84 sites. Airbus environmental reporting guidelines include sites worldwide with a workforce on-site higher or equal to 100 employees. Note that only 100% consolidated entities are taken into account with the exception of ATR and Tianjin operations. 2015-2020 figures were refined to reflect the above changes in scope, to align with GHG protocol guidelines (past year adjustments) and to rectify actuals for some entities.
: 2021 data audited by EY®. * Energy: Electricity, Heat and Steam joint verification. (1) Scope 1 emissions restated to include Oversize transport emissions (large and non-standard shipments via Road, River and Sea), previously considered as Scope 3 based on operational control criteria as per GHG protocol guidelines. (2) Scope 2: location based with purchased guarantees of origin deduced. (3) Worldwide air travels of Europe-based employees. (4) Previous years restated to take into account refined emission factors. (5) 2021 VOC emissions data is estimated. 2021 actuals will be consolidated in April 2022. (6) Proportion of total water withdrawal corresponding to the withdrawals from areas identified with high or extremely high water stress. Water stress level as defined per the Aqueduct Water Risk Atlas (medium scenario for 2030). (7) Hazardous waste: waste displays one or more of the hazardous properties listed: “Explosive”; “Oxidising”; “Highly flammable”; “Flammable”; “Irritant”; “Harmful”; “Toxic”; “Carcinogenic”; “Corrosive”; “Infectious”; “Toxic for reproduction”; “Mutagenic”; “Sensitizing”; “Ecotoxic”, “Pressurised gas”. (8) Material recovery: any operation wherein products, components of products, or materials that have become waste are prepared to fulfill a purpose in place of new products, components, or materials that would otherwise have been used for that purpose. 2021 material and energy recovery rates will be refined when final waste treatment information will be provided by waste collector companies. (9) Newly reported metric. Previous coverage ratio excluded entities not subject to the environmental reporting guidelines (see above).


1. Information on the Company’s Activities / 1.2 Non-Financial Information 106 Airbus / Registration Document 2021. 
Social Performance. 
WORKFORCE 2021. 2020. 2019.
Total number of employees 126,495 131,349 134,931. 
By business segment. 
Airbus(1) 73,560 78,487 80,985. 
Airbus Helicopters 20,126 20,026 20,024. 
Airbus Defence and Space 32,809 32,836 33,922 % Part time employees 4.34 4.36 4.43. 
By contract type. 
Unlimited 122,950 128,151 130,591. 
Limited contract > 3 months 3,156 3,198 4,340. 
By geographic area .
France 45,931 48,231 49,143. 
Germany 42,972 45,568 45,638. 
Spain 11,881 11,828 12,637. 
UK 9,368 9,846 11,109. 
US 3,150 2,980 3,151. 
Canada 3,788 3,634 3,668. 
China 698 613 653. 
Other countries 8,707 8,649 8,932 % of active workforce employees located in Europe 89.1%.
By nationality (in %)(2)
French 35.4. 
German 31.5. 
Spanish 10.3. 
British 7.7. 
From 133 other countries 15.1. 
Total number of nationalities 138. 
By age <30 years old 11,120 12,135 13,862 30-50 years old 79,985 81,709 82,552 >50 years old 35,390 37,505 38,517. 
Newcomers 5,655 5,463 11,270. 
Core Division 2,817 2,413 6,643. 
Subsidiaries 2,838 3,050 4,627. 
Leavers (incl. partial retirement) 9,394 7,796 5,842. 
Core Division 5,632 4,675 2,902. 
Subsidiaries 3,762 3,121 2,940. 
Attrition Rate. 
Core Division 5.9% 4.6% 2.9%
Subsidiaries 12.2% 9.4% 8.4%
Total 7.4% 5.8% 4.3% : 2021 data audited by EY®. (1) Airbus includes population of Airbus former HQ since 1 January 2018.t (2) No disclosure of data in 2019 and 2020.


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 107 Airbus / Registration Document 2021. 
GENDER DIVERSITY 2021 2020 % Women in total active workforce 19% 18%.
Per category. 
Board of Directors 25% 25%.
Executive Committee 25% 16%.
Executives 14% 13%.
Senior Managers 16% 14%.
Newcomer 22% 26%.
By geographic area. 
France 21.2% 20.5%
Germany 16.4% 15.3%
Spain 22.7% 22.3%
UK 12.9% 13.5%
US 22.4% 22.4%
Other countries 21.0% 20.9% : 2021 data audited by EY®.
PEOPLE DEVELOPMENT 2021 2020. 
Number of classroom training 78,984 78,443. 
Number of digital training 967,495 752,702. 
Total training hours 1.2mn 1 million. 
Average training hours per employee 10.8 10.6 for women 9 8 for men 11 10 for production employees 15 14 for non-production employees 10 8. 
Internal mobilities >10,400 >7,000 : 2021 data audited by EY®.
LABOUR RELATIONS 2021 2020. 
Number of meetings with SE-WC 12 8 % workforce covered by collective bargaining agreements ~ 80%
Note: figures are based on the active workforce, i.e. the number of permanent and short-term employees, irrespective of their individual working times, and having worked in the last 30 days. The headcount is calculated according to the consolidation quota of the respective companies. The scope for HR structure reporting covers 100% of the Company’s total active workforce from consolidated companies. Workforce and breakdowns metrics are figures at year-end. Other metrics cover civil year periods, except for training related metrics with reporting periods going from 1 October to 30 September.
: 2021 data audited by EY®.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 108 Airbus / Registration Document 2021. 
HEALTH & SAFETY 2021 2020 2019. 
Lost Time Injury Frequency Rate 3.21 3.81 5.58. 
LTI FR – Commercial Aircraft 4.31 5.12. 
Near-miss – Commercial Aircraft 19,305. 
H&S training hours delivered 128,795 103,070 148,000. 
Nb of empl. who received H&S training 28,144 37,599 20,900. 
Number of empl. having attended “EH&SCertificate” modules 1&2 1,309 418. 
Core entities with ISO 45001 or similar certification ~one third % of the company-wide workforce covered 25% : Data audited by EY®.
CYBERSECURITY 2021 2020. 
Number of data breaches reported to data authorities 1 1. 
Percentage involving confidential information 100% 100%
Cyber security awareness training e-learning participation 67,475 10,328. 
Corporate & IM Cyber Security Headcount 290 216.5. 
PRODUCT SAFETY 2021 2020 2019. 
Fatal accident rate Industry wide 0.03(Gen4) 0.04(Gen4) 0.05(Gen4) % SMS officers nominated 100% 100% N/A % SMS officers trained 100% 92% N/A : Data audited by EY®.
COMMUNITY IMPACT 2021 2020. 
Number of Sustainability Ambassadors 207 0. 
HUMAN RIGHTS 2021 2020 % of investigations completed or in progress – following reports of concerns linked to human rights, including forced and child labour and other labour rights. 100% 100% % of sites having undertaken a social assessment – % of the Company’s with over 100 employees, cumulative since 2020, undergoing a social assessment including human and labour rights. 14% 6% % of findings closed within 18-months (following social assessments including human and labour rights, carried out on the Company’s sites) 100% 100%
Number of participants to human rights trainings (Cumulative number of participants who have completed e-learning modules on human rights and modern slavery; reporting period: 1 Oct - 30 Sep) 5,789 4,943. 
Number of alerts of human rights concerns (including forced labour and labour rights (received via OpenLine and other means) from internal sources or through the Company’s supply chain) 4 5 : Data audited by EY®.


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 109 Airbus / Registration Document 2021. 
BUSINESS INTEGRITY 2021 2020. 
Number of employees per appointed Ethics & Compliance Representatives 372 390 % of employees (non-Exec) who have completed the E&C training objective 90% 80%
Number of E&C e-learning sessions delivered to employees 284,774 309,682. 
Number of data privacy e-learning sessions delivered to employees (note: in 2021 the reporting period was changed, from calendar years to Oct.-Sept. periods, and led to restate past year figures accordingly) * 9,547 35,073 : Data audited by EY®. * 2021 data audited.
SUPPLY CHAIN 2021 2020 2019. 
Sourcing volume (in € million) NA 40,712 53,400. 
Number of suppliers NA 21,000 23,000. 
Split by division (in %)
Airbus NA 76% 84%
Helicopters NA 8% 6%
Defence and Space NA 15% 10%
Split by region. 
EU NA 59% 59%
North America NA 27% 27%
Asia pacific NA 8% 8%
Other regions NA 6% 6%
Number of countries NA 88 >100. 
Percentage of sourcing volume covered by supplier commitment to the Supplier Code of Conduct 79% NA -
Percentage of sourcing volume of suppliers invited to CDP who have responded 68% 56% -
Percentage of responding suppliers to the CDP scoring A or B 53% 56% -
Percentage of identified high risk suppliers, who have undergone a sustainability assessment 95% 63% -
Percentage of assessed suppliers not meeting Airbus’ sustainability expectations 13% 12% -
Percentage of action plans defined for suppliers not meeting Airbus’ sustainability expectations 15% NA -
Number of sustainability alerts 12 5 -
Note: Metrics cover civil year periods, except for training related metrics with reporting periods going from 1 October to 30 September.
: Data audited by EY®.


1. Information on the Company’s Activities / 1.2 Non-Financial Information 110 Airbus / Registration Document 2021. 
Governance. 
BOARD OF DIRECTORS 2021 2020 2019. 
Number of independent directors 11 11 11. 
Number of women 3 3 3. 
Average age 60 59 59. 
Number of nationalities 7 7 7. 
Average tenure 4.5 3.5 4. 
Number of Board meetings 7 13 11 % average attendance 98% 97% 91%
Number of Audit Committee 5 5 7. 
Number of RNGC 5 4 7. 
Number of ECC/ECSC 6 4 6. 
EXECUTIVE COMMITTEE 2021 2020 2019. 
Number of women 3 2 2. 
Number of Executive Committees 4 4 4. 
SHAREHOLDING 2021 2020 2019. 
Free Float 74.06% 73.97% 73.94%
GZBV (German State) 10.90% 10.93% 10.94%
SEPI (Spanish State) 4.11% 4.12% 4.13%
SOGEPA (French State) 10.92% 10.95% 10.96%
SUSTAINABILITY-LINKED REMUNERATION 2021 2020. 
CEO and Executives variable remuneration – common collective component, paid following the end of financial year. 
R&S KPI 1 LTIFR1 LTIFR1. 
Weight 10% 20%
R&S KPI 2 CO2 -
Weight 10% -


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 111 Airbus / Registration Document 2021 1.2.9 Deployment of Vigilance Plan (Devoir de Vigilance)
The Company’s Vigilance Plan is embedded in its comprehensive approach to sustainability. This section gathers key information highlighting the Vigilance Plan’s deployment status and provides further granularity to the “materiality matrix” risk assessment, on the topics of environment, health and safety, human rights and fundamental freedoms. While this section provides an overview of performance measurement and analysis as well as controls and processes, further descriptive elements including implementation progress can be found in the respective material topic sections.
1. Risk mapping. 
Priority risk in the scope of the Company and its subsidiaries Priority risk in the scope of Suppliers and Contractors. 
Environment. 
Climate change(1) ✔ ✔
Substance management ✔ ✔
Health and Safety. 
Working environment ✔ ✔
Substances and materials ✔ ✔
Machinery & equipment ✔
Physical agents ✔
Psychological, related to COVID-19 ✔
In situ contractors ✔
Human Rights & Fundamental Freedoms. 
Impact of products and services on the irght to life and liberty ✔
Data privacy ✔ ✔
Forced and child labour and other labour rights ✔ ✔
Diverse and inclusive worlplace ✔ ✔
The transition to decarbonisation ✔ (1) CO2 largest impact from Scope 3 – Use of Sold Product. For further information, see “– 1.2.2 Lead the Journey towards Clean Aerospace”.
Methodology and stakeholders involvement: The Vigilance plan approach is aligned with the materiality matrix methodology detailed in “– 1.2.1 The Company’s Approach to Sustainability” and any relevant additional topic specific information can be found in the respective material topic sections.
2. Procedures for regularly assessing the situation of relevant subsidiaries, subcontractors and suppliers. 
The table below summarises effective procedures for regularly assessing the situation of relevant subsidiaries, subcontractors and suppliers. Specific relevant complementary information can be found in the respective material topic sections.
The Companny and its subsidiaries Suppliers and Contractors. 
Self assessment. 
Internal assessment / audit External audits (ISO…) Management system Self assessment Company Audit Ad hoc 3rd party audits. 
Environment ✔ ✔ ✔ ISO 14001 ✔ ✔ ✔ ✔ Intertek. 
Health and Safety ✔ ✔ ✔ ISO 45001(1) ✔ ✔ ✔ ✔ Intertek. 
Human Rights & Fundamental Freedoms ✔ ✔ ✔ ✔ (1) 25% workforce currently covered


1. Information on the Company’s Activities / 1.2 Non-Financial Information 112 Airbus / Registration Document 2021 3. Prevention and mitigation actions. 
The table below summarises transversal mitigation / preventive actions. Specific relevant complementary actions are detailed in the respective material topic sections.
The Company and its subsidiaries Suppliers and Contractors. 
Training Whistleblowing system Code of Conduct Policies / Directives. 
Contractual terms and conditions Whistleblowing system. 
Supplier Code of Conduct. 
Environment ✔ ✔ ✔ ✔ ✔ ✔ ✔
Health and Safety ✔ ✔ ✔ ✔ ✔ ✔ ✔
Human Rights & Fundamental Freedoms ✔ ✔ ✔ ✔ ✔ ✔ ✔ 4. Alert mechanism. 
The Company’s OpenLine mechanism is introduced in “– 1.2.1 The Company’s Approach to Sustainability” and described in more detail in “– 1.2.5 Exemplify Business Integrity”.
5. Monitoring system. 
The table below shows an overview of the monitoring system in place. More detailed descriptions as well as performance measures and analysis can be found in the respective material topic sections.
KPIs Responsible organisation body Supervisory Committee Controls. 
Environment Operations Use of Products. 
CO2 Scope 1, 2, Water, Waste CO2 Scope 3 Industrial roadmap Aviation roadmap. 
ECSC. 
Internal audit. 
Health and Safety Lost time injury frequency rate Executive level review ERM, internal audit. 
Human Rights & Fundamental Freedoms Nb of social assessments % of findings closed within 18 months Human Rights Roadmap Site social assessments and supply chain assessments. 
Supply Chain % suppliers at risk %action plan lauched Sustainable Supply Chain Roadmap Audits Self questionnaires 1.2.10 EU Taxonomy Disclosure. 
The EU Taxonomy is a classification system establishing a list of environmentally sustainable economic activities by defining technical screening criteria for the six environmental objectives defined by the EU Taxonomy, as well as disclosure requirements for corporations. It aims to direct investments towards sustainable projects and activities in order to meet the EU’s climate and energy targets for 2030 and reach the objectives of the European green deal.
Recommendations for technical screening criteria were published in August 2021 (Annex to the draft report by the Platform on Sustainable Finance on preliminary recommendations for technical screening criteria for the EU taxonomy). Based on this report, the proposed inclusion of aviation in the EU Taxonomy acknowledges its potential to transition to low carbon activities, through a number of measures including a “best-in-class” approach: in the short-term, aging fleet renewal by Airbus’ latest generation aircraft is recognised as having a significant potential for CO2 reductions. The Company roadmap to decarbonisation is aligned with the taxonomy approach, as explained below.
Estimated eligibility and alignment if aviation-related technical screening criteria were to be adopted as per draft recommendation:
Aviation-related criteria are expected to be included in the Taxonomy in 2022. According to the published recommendations for technical screening criteria, a majority of the Company’s 2021 turnover would be eligible, mainly including the turnover generated by sales of commercial aircraft. Based on the same information, the Company estimates that a significant portion of this eligible turnover could be taxonomy aligned, while meeting “do-not-significant-harm” criteria and minimum safeguards. As per criteria recommendations, the alignment factor would correspond to the proportion of new aircraft sold that will replace less efficient older generation aircraft, and therefore contributing to reducing the overall carbon footprint of aviation. Activities from the Company’s two Divisions may be covered to some extent in future developments of the Taxonomy, while current level of information available does not enable the Company to provide an estimate. Accordingly, “best-in-class” aircraft programme related capital expenditures, and R&D (operating expenses) should be respectively eligible and aligned in similar proportions.


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 113 Airbus / Registration Document 2021. 
Under the proposed text available at the time of this report, Airbus commercial aircraft activity corresponding to NACE code 30.3 is described under section 8.9 Manufacturing of aircraft of the document “PLATFORM ON SUSTAINABLE FINANCE: TECHNICAL WORKING GROUP / PART B – Annex: Full list of Technical Screening Criteria August 2021” and therefore it could be considered an eligible activity once the corresponding delegated act is adopted.
Reported eligibility as per December 2021 adopted Delegated Act:
The Delegated Act covering Manufacturing of Commercial Aircraft technical screening criteria is expected to be adopted by the European Commission in 2022.
The Company performed an analysis of its exposure to Taxonomy-eligible activities referenced in the Climate Delegated Act adopted before 31 December 2021(1): Data-driven solutions for GHG emissions reductions, Renovation of existing buildings Construction of new buildings, Electricity generation using solar photovoltaic technology, Installation, maintenance and repair of renewable energy technologies, Freight transport services by road. The proportions of its turnover, capital expenditures and operating expenses as of 31 December 2021, as reported in the Financial Statements were assessed as immaterial with currently available data, which includes certain limitations mainly linked to data granularity for capital expenditures and operating expenses. The Company is working on improving financial data tagging to enable more accurate reporting in upcoming disclosures.
As a result of this assessment, as of 31 December 2021, the Company reports 0% eligibility (100% non-eligibility) of its total turnover (€ 52,149 million), capital expenditures (€ 1,928 million), and operating expenses (R&D € 2,746 milllion) respectively.
(1) COMMISSION DELEGATED REGULATION (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives, published in the Official Journal of the European Union on 9 December 2021.
1.2.11 TCFD Correspondence Table. 
See Airbus Sustainability Report sections See CDP Climate Change Questionnaire* items. 
Governance. 
Describe the Board’s oversight of climate-related risks and opportunities. – 1.2.1 the Company Approach to Sustainability – 1.2.2 Lead the Journey towards Clean Aerospace. 
C1.1a, C1.1b. 
Describe management’s role in assessing and managing climate-related risks and opportunities C1.2, C1.2a. 
Strategy. 
Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long-term – Risk Factors – 4 Environment, Human Rights, Health & Safety Risks – 1.2.2 Lead the Journey towards Clean Aerospace –Please refer to the “Notes to the IFRS Consolidated Financial Statements” (Note 6: Climate impacts)
C2.3a, C2.4a. 
Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning. C2.3a, C2.4a, C3.1, C3.3, C3.4. 
Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario C3.2, C3.2a. 
Risk management. 
Describe the organisation’s processes for identifying and assessing climate-related risks. –4.1.3 Enterprise Risk Management System –1.2.1 the Company Approach to Sustainability –1.2.2 Lead the Journey towards Clean Aerospace. 
C2.1, C2.1a, C2.1b, C2.2, C2.2a. 
Describe the organisation’s processes for managing climate-related risks. C2.1, C2.2. 
Describe how processes for identifying, assessing, and managing climaterelated risks are integrated into the organisation’s overall risk management. C2.1, C2; 1b, C2.2. 
Metrics & targets. 
Disclosure of the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process. –1.2.2 Lead the Journey towards Clean Aerospace –1.2.8 ESG Data Board, section Environmental Performance / Emissions. 
C4.2, C9.1. 
Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.
C6.1, C6.2, C6.3, C6.5, C6.10, C7.1, C7.1a, C7.2, C7.3, C7.3a, C7.5, C7.6, C7.6a. 
Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets. C4.1, C4.1a, C4.1b, C4.2a * CDP Climate Change Questionnaire is available on Airbus website and CDP website .


1. Information on the Company’s Activities / 1.2 Non-Financial Information 114 Airbus / Registration Document 2021 1.2.12 GRI Index. 
This table, whose aspects are material for Airbus and its stakeholders, follows the GRI Standards Guidelines, in accordance with the “core” option. When links target a Non-Financial Information section, additional resource links can be found in the table displayed in the sub-section I.Introduction.
GRI Disclosure Related content. 
GRI 102: General Disclosures. 
Organisational Profile 102-1 Name of the organisation Airbus SE 102-2 Activities, brands, products, and services Get to know Airbus. 
See sections 1.1.1 to 1.1.4 (page 23-53) 102-3 Location of headquarters Leiden, the Netherlands 102-4 Location of operations Global presence on Airbus.com, Airbus Helicopters’ global presence 102-5 Ownership and legal form See section 3.1 102-6 Markets served Airbus’ markets on Airbus.com. 
See sections 1.1.1 to 1.1.4 (page 23-53) 102-7 Scale of the organisation. 
See 1.2.4.d Our People, 1.2.8 ESG Data Board (Social Performance)
Please refer to “Notes to the IFRS Consolidated Financial Statements – Note 1: The Company” and “– Note 11: Segment Information”.
102-8 Information on employees and other workers See 1.2.4.d Our People, 1.2.8 ESG Data Board (Social Performance) 102-9 Supply chain See 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board (Social Performance) 102-10 Significant changes to the organisation and its supply chain. 
Please refer to “Notes to the IFRS Consolidated Financial Statements – Note 8: Acquisitions and Disposals”, see 1.2.6 Responsible Supply Chain 102-11 Precautionary Principle Approach Entreprise Risk Management on airbus.com. 
See 4.1.3 (ERM), 1.2.9 Vigilance Plan (Devoir de Vigilance) 102-12 External initiatives UN Global Compact, See other initiatives per sustainability topics in the respective subsection of 1.2 Non-Financial Information 102-13 Membership of associations ATAG, IAEG, The Conference Board, GIFAS, World Economic Forum, Advanced Robotics for Manufacturing, Initiative Chefsache. 
Strategy 102-14 Statement from senior decision-maker. 
See Guillaume Faury’s statement about Airbus engagement for sustainability on airbus.com, see CEO statement on airbus.com , see CEO’s commitment to sustainability in the UNGC engagement letter 2022. 
Ethics and Integrity 102-16 Values, principles, standards, and norms of behavior See 1.2.5 Exemplify Business Integrity. 
Governance 102-18 Governance structure See 4.1 Management and Control. 
Airbus’ Corporate Governance on airbus.com. 
Stakeholder Engagement 102-40 List of stakeholder groups See 1.2.1 The Company’s Approach to Sustainability 102-41 Collective bargaining agreements See 1.2.4.c Labour Relations, 1.2.8 ESG Data Board (Social Performance)


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 115 Airbus / Registration Document 2021. 
GRI Disclosure Related content 102-42 Identifying and selecting stakeholders. 
See 1.2.1 The Company’s Approach to Sustainability 102-43 Approach to stakeholder engagement 102-44 Key topics and concerns raised. 
Reporting Practice 102-45 Entities included in the Consolidated Financial Statements Please refer to “Notes to the IFRS Consolidated Financial Statements – Note 7: Scope of Consolidation” 102-46 Defining report content and topic Boundaries See 1.2.1 The Company’s Approach to Sustainability 102-47 List of material topics 102-48 Restatements of information. 
See data per sustainability topics in the respective subsection of 1.2 Non-Financial Information and in section 1.2.8 ESG Data Board. 
Please refer to “Notes to the IFRS Consolidated Financial Statements – Note 4: Key Estimates and Judgements, Note 24: Provisions, Contigent Assets and Contingent Liabilities, Note 37.7 Financial Instruments” 102-49 Changes in reporting See 1.2.1 The Company’s Approach to Sustainability 102-50 Reporting period from 1 January to 31 December 102-51 Date of most recent report March 2022 102-52 Reporting cycle Annual 102-53 Contact point for questions regarding the report Check on cr_sustainability@airbus.com 102-54 Claims of reporting in accordance with the GRI Standards This report has been prepared in accordance with the GRI Standards: Core option.
102-56 External assurance Find the full Independent Assurance Report from Ernst&Young. 
Lead the Journey Towards Clean Aerospace. 
Environment 103-1 Explanation of the material topic and its Boundary See 1.2.1 The Company’s Approach to Sustainability, 1.2.2 Lead the Journey Towards Clean Aerospace 103-2 The management approach and its components 103-3 Evaluation of the management approach. 
Energy 302-1 Energy consumption within the Organisation See 1.2.2 Lead the Journey Towards Clean Aerospace, 1.2.8 ESG Data Board (Environmental performance) Board (Environmental performance) 302-4 Reduction of energy consumption 302-5 Reduction in energy requirements of products and services. 
Water 303-4 Water discharge See 1.2.2 Lead the Journey Towards Clean Aerospace, 1.2.8 ESG Data Board (Environmental performance) 303-5 Water consumption. 
Emissions 305-1 Direct (Scope 1) GHG emissions. 
See 1.2.2 Lead the Journey Towards Clean Aerospace, 1.2.8 ESG Data Board (Environmental performance) 305-2 Energy indirect (Scope 2) GHG emissions 305-3 Other indirect (Scope 3) GHG emissions 305-4 GHG emissions intensity 305-5 Reduction of GHG emissions 305-6 Nitrogen oxides (NOx), sulphur oxides (SOx), and other significant air emissions 305-7 Energy indirect (Scope 2) GHG emissions


1. Information on the Company’s Activities / 1.2 Non-Financial Information 116 Airbus / Registration Document 2021. 
GRI Disclosure Related content. 
Waste 306-2 Waste by type and disposal method See 1.2.2 Lead the Journey Towards Clean Aerospace, 1.2.8 ESG Data Board (Environmental performance)
Build our Business on the Foundation of Safety and Quality. 
Aviation and Product Safety 103-1 Explanation of the material topic and its Boundary See 1.2.1 The Company’s Approach to Sustainability, 1.2.2 Aviation and Product Safety 103-2 The management approach and its components 103-3 Evaluation of the management approach 416-1 Assessment of the health and safety impacts of product and service categories See 1.2.1 The Company’s Approach to Sustainability, 1.2.3.a Aviation and Product Safety 417-1 Marketing and labeling. 
Health & Safety 103-1 Explanation of the material topic and its Boundary See 1.2.1 The Company’s Approach to Sustainability, 1.2.3.c Health and Product Safety, 1.2.6 Responsible Supply Chain, 1.2.9 Vigilance plan 103-2 The management approach and its components 103-3 Evaluation of the management approach 403-1 Occupational H&S management system Hazard identification, risk assessment, and incident investigation Occupational health services Worker participation, consultation, and communication on occupational H&S Worker training on occupational H&S Prevention and mitigation of occupational H&S impacts directly linked by business relationships Work-related injuries. 
See 1.2.3.c Health and Product Safety, 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board (Social performance), 1.2.9 Vigilance plan 403-2 403-3 403-4 403-5 403-6 403-7 403-9. 
Respect Human Rights and Foster Inclusion. 
Inclusion & Diversity 103-1 Explanation of the material topic and its Boundary See 1.2.1 The Company’s Approach to Sustainability, 1.2.4.b Inclusion & Diversity, 1.2.6 Responsible Supply Chain 103-2 The management approach and its components 103-3 Evaluation of the management approach 405-1 Diversity of governance bodies & employees. 
See 1.2.4.b Inclusion & Diversity, 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board (Social performance), 4.1 Management and Control, Board of Directors composition and Executive Committee composition on airbus.com. 
Workforce and human rights 103-1 Explanation of the material topic and its Boundary See 1.2.1 The Company’s Approach to Sustainability, 1.2.4.a Inclusion & Diversity, 1.2.4.d Our Workforce, 1.2.6 Responsible Supply Chain, 1.2.9 Vigilance Plan 103-2 The management approach and its components 103-3 Evaluation of the management approach 401-1 New employee hires & employee turnover See 1.2.4.d Our Workforce, 1.2.8 ESG Data Board (Social performance) 401-2 Benefits provided to full-time employees See 1.2.4.d Our Workforce 404-1 Average hours of training per year per employee. 
See 1.2.4.d Our Workforce, 1.2.8 ESG Data Board (Social performance) 404-2 Programs for upgrading employee skills and transition assistance programmes 404-3 Percentage of employees receiving regular performance and career development reviews


1. Information on the Company’s Activities / 1
1.2 Non-Financial Information 117 Airbus / Registration Document 2021. 
GRI Disclosure Related content 201-3 Defined benefit plan obligations and other retirement plans. 
See Risk Factors 1.Financial Market Risks (Pension Commitments), 2.1.6.1 Cash Flows (Contribution to Plan Assets of Pension Schemes), 4.2.1.3 Implementation of the Remuneration Policy in 2021: CEO (h.Retirement) Please refer to “Notes to the IFRS Consolidated Financial Statements – Note 31: Post-Employment Benefits” 407-1 Freedom of Association & Collective bargain See 1.2.4.a Human Rights, 1.2.4.c Labour Relations, 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board (Social performance) 412-1 Operations that have been subject to human rights reviews or impact assessments See 1.2.4.a Human Rights, 1.2.8 ESG Data Board (Social performance), 1.2.9 Vigilance Plan 412-2 Employee training on human rights policies or procedures See 1.2.4.a Human Rights, 1.2.8 ESG Data Board (Social performance)
Exemplify Business Integrity 103-1 Explanation of the material topic and its Boundary See 1.2.1 The Company’s Approach to Sustainability, 1.2.5 Exemplify Business Integrity, 1.2.9 Vigilance Plan 103-2 The management approach and its components 103-3 Evaluation of the management approach 205-1 Operations assessed for risks related to corruption See Risk Factors – 3. Legal Risks, 1.2.5 Exemplify Business Integrity, 1.2.8 ESG Data Board (Social performance), 1.2.9 Vigilance Plan 205-2 Communication and training about anti-corruption policies and procedures See 1.2.5 Exemplify Business Integrity, 1.2.8 ESG Data Board (Social performance), 1.2.9 Vigilance Plan 205-3 Confirmed incidents of corruption and actions taken See 1.1.7 Legal and Arbitration Proceedings, 1.2.5 Exemplify Business Integrity, 1.2.8 ESG Data Board (Social performance), 1.2.9 Vigilance Plan. 
Responsible supply chains 103-1 Explanation of the material topic and its Boundary See 1.2.1 The Company’s Approach to Sustainability, 1.2.6 Responsible Supply Chain, 1.2.9 Vigilance Plan 103-2 The management approach and its components 103-3 Evaluation of the management approach 308-1 New suppliers screened using environmental criteria See 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board (Social performance), 1.2.9 Vigilance Plan 308-2 Negative environmental impacts in the supply chain and actions taken 414-2 Negative social impacts in the supply chain and actions taken; Operations and suppliers at significant risk for incidents of child labor; Operations and suppliers at significant risk for incidents of forced or compulsory labor. 
See 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board (Social performance), 1.2.9 Vigilance Plan 408-1 409-1 204-1 Proportion of spending on local suppliers See 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board (Social performance), 1.2.9 Vigilance Plan. 
Community Impact 103-1 Explanation of the material topic and its Boundary See 1.2.1 The Company’s Approach to Sustainability, 1.2.7 Community impact 103-2 The management approach and its components 103-3 Evaluation of the management approach 203-1 Infrastructure investments and services supported See 1.2.1 The Company’s Approach to Sustainability, 1.2.7 Community impact 203-2 Significant indirect economic impacts 201-1 Direct economic value generated and distributed See 1.2.1 The Company’s Approach to Sustainability, 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board (Social performance)


1. Information on the Company’s Activities / 1.2 Non-Financial Information 118 Airbus / Registration Document 2021 1.2.13 SASB Correspondence Table. 
Sustainability Disclosure Topics & Accounting Metrics. 
Energy Management -- Total energy consumed, percentage grid electricity, percentage renewable RT-AE-130a.1. 
See 1.2.2 Lead the Journey towards Clean Aerospace See 1.2.8 ESG Data Board, section Environmental Performance / Energy. 
Hazardous Waste Management -- Amount of hazardous waste generated, percentage of hazardous waste recycled -- Number and aggregate quantity of reportable spills, quantity recovered from reportable spills. 
RT-AE-150a.1 RT-AE-150a.2. 
See 1.2.2 Lead the Journey towards Clean Aerospace See 1.2.8 ESG Data Board, section Environmental Performance / Waste. 
Data Security -- Number of data breaches, percentage involving confidential information -- Description of approach to identifying and addressing data security risks in company operations and products. 
RT-AE-230a.1 RT-AE-230a.2. 
See 1.2.3.b Cyber Security See 1.2.8 ESG Data Board, section Social Performance / Cybersecurity. 
Product Safety -- Number of recalls issued, total units recalled -- Number of counterfeit parts detected, percentage avoided -- Number of Airworthiness Directives received, total units affected -- Total amount of monetary losses as a result of legal proceedings associated with product safety. 
RT-AE-250a.1 RT-AE-250a.2 RT-AE-250a.3 RT-AE-250a.4. 
See 1.2.3.a Aviation and Product Safety. 
Fuel Economy & Emissions in Use-Phase -- Revenue from alternative energy-related products -- Description of approach and discussion of strategy to address fuel economy and strategy to address fuel economy and greenhouse gas (GHG) emissions of products. 
RT-AE-410a.1 RT-AE-410a.2. 
See 1.2.10 EU Taxonomy See 1.2.2 Lead the Journey towards Clean Aerospace. 
Materials Sourcing -- Description of the management of risks associated with the use of critical materials RT-AE-440a.1 See 1.2.6 Responsible Supply Chain. 
Business Ethics -- Total amount of monetary losses as a result of legal proceedings associated with incidents of corruption, bribery, and/or illicit international trade -- Revenue from countries ranked in the “E” or “F” Band of Transparency International’s Government Defence Anti-Corruption Index -- Discussion of processes to manage business ethics risks throughout the value chain. 
RT-AE-510a.1 RT-AE-510a.2 RT-AE-510a.3. 
See 1.2.5 Exemplify Business integrity. 
Activity metrics -- Production by reportable segment: Production should be disclosed as the number of units produced by product category, where relevant product categories include ground vehicles, aircraft, marine vehicles, vehicle and aircraft components, and space and weapons systems. -- Number of employees. 
RT-AE-000.A RT-AE-000.B. 
See 2.1.4 Results of Operations (2.1.4.1 Revenues) See 1.2.8 ESG Data Board


1. Information on the Company’s Activities / 1
1.3 Other Corporate Activities 119 Airbus / Registration Document 2021 1.3 Other Corporate Activities. 
Digital and Information Management at Airbus: Overview. 
The five years of digital transformation paved the way for Airbus to become an advanced digital company from the early design of its products to the digital services the Company is offering to its Customers.
The impact in 2020 and 2021 of the COVID-19 crisis highlighted the need for long-term resilience and business continuity. Digital has enabled new ways of working and flexibility, and continuously enhanced our industry. Putting in place strong and modern information management, cybersecurity, data governance and skills was the foundation for reaching this objective.
The five years of digital exploration, incubation and industrialisation have resulted in mature industrial-grade digital aviation platforms such as Skywise, Digital Design Manufacturing and Services, Artificial Intelligence, Advanced Analytics, Airline Sciences and Augmented Reality. These capabilities have been embedded into the Company’s mainstream activities to create a seamless digital experience. This is vital for the production rate adaptation and also for deliveries.
Digitisation brought a wind of change in our mind-sets, and as the world evolves, the strategy does too, to push the boundaries on processes, people, products and services and to capture opportunities. This will further prepare the Company to embrace the challenges of delivering its programmes with highest flexibility, while laying the ground for a sustainable future.
Digitally Enabled End-to-End Processes. 
Digital Design, Manufacturing and Services (“DDMS”)
DDMS is a group-wide transformation programme aiming at creating a digital environment, where our future generation aerospace products, their industrial and support and services systems will be virtually designed and qualified in a connected way for greater speed, efficiency and quality.
It is enabled by the definition of collaborative business processes and data continuity across the entire programme lifecycle, the use of model-based system engineering, and the application of a flexible and modular architecture approach to the codevelopment of our products, industrial and support and services systems. Furthermore, digital twins will link the product, industrial and operational systems.
The mandate is to be launch-ready for the next aircraft programme, while securing early benefits by progressively deploying the developed processes and capabilities on early adopter programmes in all Divisions.
The major achievements this year were: – Single-Aisle Fit for Future: Increased availability of 3D-configured Digital Mock Up (DMU), a sharp reduction in the lead-time for cabin and structure heads of version designs and improved quality have been demonstrated. Further, key steps have been made on the information system upgrade for the Single-Aisle programme with the development of lean product lifecycle management. The savings provided by the DDMS capabilities have already been factored into the operation planning for the upcoming years. Lastly, key contributions have been made to secure the solution development of the A321 XLR programme. – A350 Freighter: Key contributions have been made to secure the opportunity of the programme with solutions such as new airframe sizing, system design, virtual testing and industrial assembly simulation capabilities.
– Eurodrone and FCAS: Major capabilities (including design and configuration management) have been delivered to secure the start of the programme for the Eurodrone. The common working environment has been delivered to the Eurodrone and the FCAS programmes, with a growing base of users and the connection with the extended enterprise. – H175, H225 and LH programmes: Major contributions with the deployment of digital shop floor solutions in the frame of Meca 4.0 factory in line with the programme milestones. – ZeroE concept: Delivery of the collaborative development logic for the early phases for the ZeroE concept. Several other capabilities have been delivered notably – System Of Systems (SOS) trades to ease early-stage fact and modelbased decision making; industrial design space exploration capability to speed up the industrial architecture phase; top-down modular architecture and commonality policy to accelerate the product lines approach. – Significant progress has also been made in terms of developing learning solutions and up-skilling teams working on all the above programmes, in order to ease the deployment of the new concepts, capabilities and ways of working. – On the sustainability front, a digital model has been built to evaluate associated transition risks that might challenge the assumptions for our next generation of developments, such as evolution of travel demand or energy price and availability. This digital model has been recognised and adopted for open and shared development with key financial stakeholders in the OS-Climate consortium.


1. Information on the Company’s Activities / 1.3 Other Corporate Activities 120 Airbus / Registration Document 2021. 
Airline Sciences. 
The aim of the Airline Sciences team is to provide an operational digital representation of an airline in all its complexities and business models. Having a bottom-up approach enables the Company to test out different aircraft technologies and concepts, validate product strategy, help out in sales campaigns, develop new services and, more importantly, understand the customers’ perspective across all layers of the Company.
Against the backdrop of the ongoing COVID-19 crisis, and of the greater shift towards reducing aviation’s global environmental footprint, the Airline Digital Twin capability was heavily used to assess CO2 and non-CO2 effects, including comprehensive emissions calculations as well as operational sensitivities around contrail avoidance.
Beyond the traditional emissions calculations, we have also started incorporating the predicted climate impact. This exploration will take several years, but is key in buttressing any future global climate impact legislation and key technologies development.
Finally, in the context of Aircraft Sales campaigns, the Airline Digital Twin was used in supporting Ultra-long-haul A350 studies for various potential customers. A comprehensive market assessment was carried out, including building an optimal airline fleet and product strategy to maximise airline profitability.
Artificial Intelligence (“AI”)
After successfully applying AI across the business domains, the Company is now accelerating and maturing its industrial setup to deliver AI at scale. This includes a focus on making available reusable and accessible core AI technology capabilities and patterns, to accelerate the time to market as well as increase the capacity to deliver AI products and services. These capabilities include: – Computer vision to enable visual quality inspection and improve the safety and quality of our manufacturing environment. – Pattern recognition and time series analysis to detect anomalies and avoid failure in our industrial machines and aircraft. – Natural language understanding and processing to classify data (e.g. export control) and secure our compliance. – Optimisation to improve scheduling and planning activities. – Hybrid modelling through machine learning to build surrogate models of physical systems, accelerating design activities and increasing potential design space.
They are being complemented with a central governance and life cycle management of a wide range of operationalised artificial intelligence and decision models (ModelOps) framework which will further pave the way to ensure compliance for using AI in safety relevant systems in line with upcoming regulations.
Internet of Things (“IoT”)
In 2021, the IoT platform has become the core standard industrial platform aiming at transforming any connected object data into a standardised, structured data-set, usable from any industrial application. A self-service dashboard has been created to allow any user to connect its objects and create its own data flow and alerting system.
The platform is ready to support hundreds of thousands of objects with industrially automated operations. Any industrial application in the DDMS landscape can then be developed using IoT data: track and trace (tracking objects), metering (getting sensors level), traceability (using RFID technology) or machine data (robots or industrial machines).
Virtual, Augmented and Mixed Reality. 
The presence of mixed reality is increasing and will be used everywhere in our lives in the coming years. In 2021, we have prepared a common Airbus wide platform aiming to support use cases needing augmented or virtual reality. Augmented and virtual reality solutions are already implemented in Airbus Defence and Space, and Airbus Helicopters; they will be implemented in Airbus Commercial in 2022.
Augmented reality coupled with IoT and data flows, bringing contextualised data closer to the worker, will increase efficiency and product quality for the augmented worker.
Automation and Robotics. 
In 2021, Digital & Information Management has created and formalised the necessary architecture foundations for an implementation of production robotics.
All data coming from the shop floor to Airbus Information Systems goes through the Airbus manufacturing integration layer before being transferred to manufacturing execution system (MES), IoT Platform or shop floor monitoring applications. This manufacturing integration layer is securing cyber security of operations, data safety and data integrity, along with additional features like data contextualisation and edge computing covering high frequency data acquisition. It is providing a single source of industrial automation data to all applications, and making ready for a harmonised and secure connection of production robotics.
Additionally, a test bench for autonomous guided vehicles (AGVs) was established in the industrial environment in order to allow the testing of AGVs in a robot-human interface, as well as the development of tracking solutions.
Cyber Security. 
In 2021 we have seen a new step on the cyber security transformation journey with the introduction of the new management team and the growth of the internal team in Europe, as well as in India. Together, we have built on the great foundations that have been put in place over the last few years. We have introduced more structure, with the associated routines and rituals, but importantly more collaboration with the other information management domains, the other Airbus Divisions, the subsidiaries and affiliates and the corporate security teams. All of this will enable us to develop a greater cyber security capability right across Airbus. This year we achieved another increase in Cyber Security maturity, translated into an important reduction of the 16 high-level risks we use to track, report and prioritise.
We saw key extensions to the Security Operations Centre and remediated a further 68 critical systems. All supplier pool rooms were migrated to standard secure connections and 182 industrial assets have been segregated on a dedicated network. This all in parallel to providing key architecture and consultancy services across the Company.


1. Information on the Company’s Activities / 1
1.3 Other Corporate Activities 121 Airbus / Registration Document 2021. 
The next phase of our transformation journey will be to continue the stabilisation of the information management cyber security position through our continued achievements, with a focus on further enhancing coverage of cyber controls and reinforcing our cyber products in their run mode. Let’s continue to identify, protect, detect, respond, and recover to the ever evolving threats and challenges.
Digitally Enabled Products and Services. 
Skywise. 
At its origin in 2015, Skywise was launched to make the data locked in our discrete legacy systems accessible and actionable by those needing it for their day-to-day operations. Now fully industrialised, Skywise is in 2021 adopted by more than 20,000 Airbus employees, it has also become an airline favourite. Skywise is the flagship platform of the aerospace industry’s digital transformation, linking original equipment manufacturers, airline customers and aerospace suppliers. In 2021, the Company’s open aerospace data platform continued to grow despite the COVID-19 crisis, and proved how the Company’s strategy to place data at the heart of the transformation was a successful bet. With data unlocked from previous siloes, a virtuous circle has been created: with in-service data flowing back into operations and aircraft design, delivering incremental ameliorations and improvements. Data architecture ensures that data becomes the single source of truth powering the Company’s operations and products, transforming the Company into a more fact-based, agile, empowered and data-driven organisation.
Building on the successful industrial use cases, Airbus initiated the implementation of its Airbus data product strategy that aims at supporting end-to-end business processes with an integrated data flow, recreating hence the digital continuity for Airbus legacy programmes. This effort is paving the way for DDMS digital continuity framework.
Every airline or supplier reported improvement to their workflows and operations after adopting Skywise. With more than 140 airlines now using Skywise, based on their testimonials we estimate that Skywise has saved the airline industry at least US$ 200 million a year and has accelerated their return-toservice across their entire fleets. 2021 was also the year of the launch of Skywise Store and the 3rd party Applications Editor programmes, enabling airlines to benefit from value propositions of Airbus as well as other independent applications vendors. Furthermore, 2021 was the year of Digital Alliance expansion with new members.
This exponential growth was sustained because Skywise was designed from the start with the right security framework, a strict data governance implementation and industrial scalability. This made it possible to start small and then scale up. The technology partner’s world-leading capabilities in data integration played a key role in the adoption; yet this exponential growth was driven by the focus on value creation and engagement with the business, more than by the technology itself.
Digital Services for Helicopters. 
Airbus Helicopters has launched a transformation plan to drastically change the customer digital journey throughout its products lifecycle and operations. A new collaborative platform was created to reinforce the link between customers, employees & partners.
Collaboration is at the heart of the design of the new AirbusWorld Platform launched in 2020 with a completely renewed experience, a set of new services and functionalities to boost the efficiency of the Helicopters ecosystem.
The single platform to share information and support activities with customers and partners has more than 40,000 users, customers, partners and employees It is embedded in our new support and services practices, keeping the proximity especially in the specific context of the COVID-19 crisis.
The platform is continuously enriched with improvement, new services and new increments delivered every three months, embedding customer feedback, innovations and new standards.
Digitally Enabled People. 
Google Workspace Deployment. 
Google and Airbus continue to partner to further improve the functionalities of Google Workplace. 2021 has seen the improvement of offline capabilities, of user experience on mobile devices, of automatic translation features, but also the development of the client side encryption capability, allowing end users to encrypt their most sensitive documents with Airbus encryption keys. 2022 will see further deployments in Airbus Helicopters, Airbus Defence and Space and Airbus Atlantic.
Data Analysts Certification. 
Proving that our employees are hungry to learn and develop the key skills necessary to drive our digital future, the Digital Academy continued to push for Airbus Data Analytics & Artificial Intelligence certification throughout 2021 at great pace with 220 further graduates within All Airbus Divisions, functions and countries. This initiative takes the total to more than 1,000 graduates from 15 countries, across all Divisions and subsidiaries, which continues into its fifth year in 2022.
Digitally Inspired New Business. 
Connected Cabin. 
In 2021, Digital, Program Cabin, Engineering and Customer Services joined together to build a platform, distributed from the ground to the Aircraft for Airlines and Entertainment Furniture Equipment providers. Many use cases will be designed and based on this platform: for instance, in-flight entertainment adoption has already started. In 2022, a minimum value product is planned to be delivered to first customers.
Concluding Remarks and 2022 Challenges. 
The collective effort done in 2021 by all the Company’s stakeholders let to the success of the information management simplification. It also highlighted and strengthened the value delivered to businesses and customers thanks to a more comprehensive and coordinated central value management. This effort will continue in 2022.
In 2021, Airbus set the scene of the future, raising digital at the heart of the Company. In 2022, the evolution will continue with a compilation of developments and rationalisations in all digital initiatives. Starting with the DDMS programme, that will endeavour the journey to carry out more efficient production processes while also rolling out the digital landscape of the


1. Information on the Company’s Activities / 1.3 Other Corporate Activities 122 Airbus / Registration Document 2021 future. Cybersecurity will continue to boost its ability to handle future threats by deploying cutting-edge organisation and technologies, which will bolster measures to prevent incidents across the group. The journey will be also coloured by “green” IT, so contributing to a sustainable decarbonised future.
The digital potential for continuity and end-to-end industrial resilience has been demonstrated for two years in a row. Nevertheless, the possibilities have to be further implemented. We progressed a lot in setting the ground for the “cloud” shift and in better understanding how our already efficient industry can be improved even further. There are still margins to be tackled where digital has a major role to play to make Airbus ready to shape the future of the aerospace industry.
These initiatives will continue to succeed if they are addressed in a transverse, open and bold way, by taking an even closer, more granular and at the same time holistic view of the entire ecosystem. What will make the difference is our readiness to take a pragmatic look at them and to act collectively and collaboratively.
Research and Technology. 
The Airbus Engineering and Technology Department is led by the Chief Technical Officer (“CTO”). Part of its responsibility is to define, deliver and protect all the Company’s research and technology (“R&T”), enable technology synergies across the group, federate the Company’s innovation activities and ensure expertise in breakthrough technologies. The department applies a lean project-based approach, tracked and managed using earned value management, technology readiness levels and figures of merit. Technological collaboration with external research communities and partners is encouraged and coordinated through the department with technical and scientific experts. These duties are delivered through the capabilities outlined here below.
The Company-wide integration of R&T technology and alignment with institutional research partners is achieved through crossportfolio technology planning and roadmapping, giving an exhaustive view of technology targets and investments. In addition, Company-wide engagement for joint funding with public agencies is achieved through a common R&T Funding contract management.
Central R&T (“CRT”) is the cross-divisional R&T organisation that prepares the Company’s long-term technological capabilities. CRT leads specific investigations in emerging areas of research and conducts ambitious research projects while leveraging leading academic, scientific and research institutions to best utilise their expertise for achieving the Company’s ambitions.
Development of selected breakthrough technologies is accelerated through Airbus demonstrators, by employing rapid maturation methods. This function delivers, thanks to its fully owned Airbus UpNext subsidiary, flight and ground demonstrator projects that drive collaborative new ways of working, provide the highest level of transparency and challenge the status quo by embedding Airbus’ technology DNA in a highly dynamic environment.
Each Division has its own R&T function, defining and delivering the divisional projects. The divisional R&T functions are primarily planning, decision making and arbitration teams, which are accountable within their perimeters to both Technology, Divisional Engineering and Product Strategy. Their responsibilities include securing continuous improvement in divisional competitiveness and the ability to develop business. Within the Company, commercial specific priority is given to technologies for sustainable next-generation aircraft, bringing together product, production system and services.
In order to maximise the Company’s R&T activities, the Divisions leverage the external ecosystem, utilising the portfolio of projects for funding opportunities and engagement with global partnerships, research institutes and universities. This ensures efficient R&T portfolio execution, and benefits from new ways of working including but not limited to agile methodology and minimum viable product demonstration strategy. Responsibilities include securing continuous improvement in divisional competitiveness and the ability to develop business by establishing and driving the Company’s R&T ambitions.
Fast-track roadmap owners serve as principal advisors to the CTO on technical vision and roadmaps for associated technology areas. Fast-track roadmaps ensure coherency in the portfolio of activities and for the rapid advance of strategic priorities. Current fast-track roadmaps cover: – electrification; – industrial systems and manufacturing; – connectivity; – autonomy; – materials; – artificial intelligence.
The Company’s intellectual property is protected, secured and defended through a central intellectual property function responsible for patent applications, portfolio investigations and portfolio defence.
Technological innovation and outreach to expertise in specific regions is delivered through three units: Acubed in Silicon Valley; Airbus Innovation Centre in China; and Airbus Scale, bringing together corporate innovation, start-up engagement and company building activities.
Key Progress in 2021. 
Airbus Demonstrators – Airbus UpNext. 
Airbus UpNext is actively shaping the future of the aerospace industry as part of the Airbus innovation ecosystem by building demonstrators at speed and scale, in order to evaluate, mature and validate potential new products and services that encompass radical technological breakthroughs.
The fello’fly demonstrator, with the objective to prove the technical, operational and economic viability of wake energy retrieval for commercial aircraft, was successfully handed over from Airbus UpNext to Airbus Commercial in December 2021. This was done after the project had successfully performed the first long-haul demonstration of formation flight in general air traffic (GAT) regulated transatlantic airspace, with two A350 aircraft flying at three kilometres apart from Toulouse, France to Montreal, Canada. The aircraft were greeted at MontrealTrudeau International Airport. Over six tons of CO2 emissions were saved on the trip, confirming the potential for more than a 5% fuel saving on long-haul flights.
The Airbus UpNext TELEO demonstrator project proved the feasibility to provide a communications experience in the air at the same level of quality as customers have come to


1. Information on the Company’s Activities / 1
1.3 Other Corporate Activities 123 Airbus / Registration Document 2021 expect on the ground, thanks to a smart usage of the various communication channels available on board. This so-called Airbus UpNext TELEO smart routing is the result of a broad review of the commercial software defined networking solutions (13 suppliers), most of them tested in a dedicated benchmark lab. The selected solution has then been implemented on commercial avionics, validated through rigorous lab testing, field tested on ground vehicles and finally flight tested on an A350-XWB all within three years, and is recognised as having reached the point of a minimum viable service.
In parallel, by developing a very high-capacity analogue optical feeder link communication, TELEO demonstrated the potential for space solutions to offer data rates beyond current radio frequency transmission limits. Although the solution will only be fully proven and validated in 2023 (in space demonstration onboard the Arabsat BADR 8 satellite), it is already part of Airbus Defence & Space’ ongoing product solutions, and will continue to be developed and deployed in the years ahead.
In September 2021, Airbus UpNext launched an extraperformance wing demonstrator project focused on accelerating and validating technologies that will improve and optimise wing aerodynamics and performance for any future aircraft. This scaled demonstrator will integrate and fly breakthrough wing technologies on a Cessna Citation VII business jet platform in representative flight conditions. The applications of the extraperformance wing would be compatible with any propulsion solution and aircraft configuration and would reduce CO2 emissions, contributing greatly to Airbus’ decarbonisation roadmap.
In April 2021 Airbus UpNext announced VERTEX, a demonstrator with the aim to simplify mission preparation and management, reduce helicopter pilot workload, and further increase safety.
The autonomous technology bricks set to integrate the Flightlab are: vision-based sensors and algorithms for situational awareness and obstacle detection; fly-by-wire for enhanced auto-pilot; and an advanced human-machine-interface – in the form of a touchscreen and head worn display for inflight monitoring and control. The combination of these technologies will enable a system that can manage navigation and route preparation, automatic take-off and landing, as well as following a predefined flight path. The incremental integration of these technologies onto the helicopter Flightlab has begun ahead of a complete demonstration in 2023.
In March 2021, Airbus UpNext announced ASCEND “Advanced Superconducting and Cryogenic Experimental powertraiN Demonstrator” to break through the performance of electric propulsion systems below 1MW and enable high-power propulsion (>1MW) using superconducting materials and cryogenic temperatures. These technologies will also optimise or enable new propulsion architectures for low and zero emission flight. The results are expected to show the potential for a 50% reduction in component weight and an increase in efficiency of more than 5%. It will also show a reduction in the volume of electrical components, the complexity of the installation as well as a reduction of the voltage below 500V, compared to current systems.
The ZEROe concept planes revealed in September 2020 unveiled the Company’s investigation and research into hydrogen-based propulsion. Airbus UpNext is preparing the ground for technology maturation and demonstration, actively identifying and de-risking the main technology bricks to support Airbus’ 2035 ambition.
The Autonomous Taxi, Take-off and Landing (“ATTOL”) demonstrator leveraging computer vision technologies and techniques successfully finished in 2020 is progressing. Further work on safety enhancing systems that goes beyond ATTOL state-of-the-art is ongoing.
In December 2021, Airbus increased its presence in Spain with the launch of an Airbus UpNext entity, a wholly-owned innovation subsidiary. The Spanish Airbus UpNext entity will initially be accountable for the study and demonstration of hydrogenpowered non-propulsive energies, as well as autonomous airto-air refuelling operations applying advancements in visionbased technology. This new presence will leverage the expertise of Airbus Commercial Aircraft, Airbus Helicopters and Airbus Defence and Space in Spain.
Acubed. 
Acubed is the Company’s innovation centre based in Silicon Valley, an epicenter of tech talent and investment. Acubed’s mission is to develop and deliver breakthrough technologies at the intersection of software and hardware. Since 2015, Acubed has been a driving force to help Airbus build the future of flight. Initially set up to disrupt Airbus from within to mitigate disruption from external forces, Acubed kick-started Airbus’ exploration of areas such as electric vertical take off and landing aircraft (Vahana), mobility-as-a-service (Voom), Unmanned Traffic Management (Airbus UTM), Advanced Digital Design and Manufacturing (ADAM), and modular cabin concepts (Transpose), among other emerging trends.
With over six years of operations, Acubed’s model has evolved to ensure it injects lasting value and expertise from Silicon Valley into Airbus. Its current flagship projects are closely aligned to Airbus’ strategic priorities and aim to help Airbus secure and maintain leading positions in new and emerging aerospace markets.
Acubed’s Wayfinder team is developing certifiable autonomous flight and machine learning solutions to help Airbus bring about a significant increase in safety and efficiency in the next generation of commercial aircraft. In 2021, the team progressed its vision-based landing flight test programme, adding new cameras and processing to handle night-time imagery to its flying testbed operating out of Palo Alto Airport, in order to continue laying the groundwork for more autonomous aircraft systems. The Wayfinder team, which delivered AI algorithms in 2021 for vision-based landing and taxi functions for testing on an A350 flight test aircraft, is working hand-in-hand with Airbus’ teams in Europe to continue to improve and iterate on their computer vision-based autonomous systems and datadriven development in order to support the Company’s wider autonomy goals.
The Advanced Digital Design and Manufacturing (ADAM) team at Acubed is seeking to future-proof the aerospace industry through the application of digital innovation to design and manufacturing. Whether adapting manufacturing processes to gain efficiencies or to cope with disruptions, ADAM is helping to reduce lead times, production costs and to improve workflows dynamically, while helping to blend software and hardware expertise, an emerging skill set required for future aerospace careers. In 2021, the ADAM team actively delivered on a number of engagements, namely for the DDMS organisation in Europe to digitally generate cabin layout options for customers’ quick turn-around service upgrade offers; to the US final assembly line in Mobile, USA, generating measurable improvements in


1. Information on the Company’s Activities / 1.3 Other Corporate Activities 124 Airbus / Registration Document 2021 logistics, AOS and quality; and to the engineering department in the US and Europe implementing the automation of stress analysis processes (e.g. A321XLR ribs, spars, and covers).
The Airbus Unmanned Traffic Management (UTM) team at Acubed is enabling autonomous and digital operations to ensure a safe, fair and efficient airspace through research, simulations and industry collaboration. The team is building a suite of products to provide an extensible baseline UTM ecosystem, which includes the provision of essential aeronautical information services such as the FAA-approved Low Altitude Authorisation and Notification Capability (LAANC) airspace authorisation. Airbus UTM is partnering with Metron Aviation to participate in NASA’s Advanced Air Mobility National Campaign, in which they successfully completed all required testing and development of UTM concepts as part of the X3 phase, and have now entered into the next X4 phase. The team is currently focused on industry needs and adoption of simulation-as-a-service to validate UTM concepts, as well as on growing the number of operators using their authoritative data products.
Airbus China Innovation Center (“ACIC”)
ACIC, based in Shenzhen, is the first innovation centre set up by the Company in Asia. Its mission is to fully leverage China’s local innovation ecosystem including talents, partners and resources, combined with the Company’s expertise in aerospace, to discover promising technologies, to identify solutions enabling new services, and to fast-track delivery of innovation projects.
Manufacturing Innovation. 
The team is tasked to explore industry 4.0 technologies to improve efficiency and safety on shop floor, as well as to leverage Airbus’ industrial sites in China for accelerated local testing and global dissemination. The team is working on computer vision, AGV, 5G industrial connectivity, smart tooling, remote inspection, green factory and IoT. Various applications are handed over to business and implemented in daily operation.
Cabin Experience. 
The team is tasked with providing innovation for the cabin and cargo of tomorrow, to enhance Airbus’ local cabin offering (localisation) and to increase value for Airbus global cabin products (from local to global). The team is working on broadband connectivity with 5G, a smart cabin operation system contributing to Airspace Link, flexible displays and cabin hygienic Solutions.
Tech lab. 
The team is working on computer vision algorithm development, battery scouting and testing, various types of sensors fit to different scenarios and fast electronics prototypes building. The team is also starting to engage with certain industry standard making organisations, to influence standards with aeronautic requirements.
Airbus Scale. 
Airbus Scale focuses on active innovation delivery and operates on three different levels all integrated under one “roof”: – Corporate Innovation: Fostering entrepreneurship and outof-the-box thinking within Airbus’ own culture. The vehicle by which Airbus “intrapreneurs” can submit a business strategy or an idea, after which Scale will vet it against the Company’s growth strategy. If there is a match, Scale will deliver a business model and develop a viable product or service. – Start-up engagement: The team combines Airbus’ corporate expertise with its ability to identify start-ups, partnering with those which are at a later stage in order to mature and scale ideas through mutually-beneficial collaborations. – Company building: The team builds and launches new businesses that will support the recovery and future growth of Airbus, based on existing non-strategic assets.
On top of those activities, Airbus Scale aims to support the business with global technology scouting (GTS). GTS is a n efficient team spanning (almost) all continents in order to reach the top innovation hotspots to lead the objective detection of technology and trends that support or disrupt Airbus’ business.
Commercial Aircraft. 
In response to the COVID-19 crisis, Airbus commercial aircraft’s R&T activity was refocused on zero emission technologies for next generation aircraft, as well as other aircraft technologies, including propulsion, wing, systems, fuselage, empennage and cabin. There is also a transverse technology stream comprising industrialisation, sustainability and maintenance technologies.
As part of its ambition to lead the decarbonisation of our industry, Airbus will continue to develop hydrogen technologies around the propulsion and liquid hydrogen storage and distribution systems. Airbus already started in 2021 to capitalise early on learnings in hydrogen technologies thanks to laboratory testing. This will accelerate in 2022 with more integrated ground testing, as well as the preparation of the forthcoming flight demonstrations. On top of that, different aircraft configurations will be explored and matured in 2022, to assess the most efficient way to integrate those technologies inside the aircraft. The Company will also continue its effort to support our customers to build their routeto-net-zero, and to grow its partnership landscape for critical technology bricks and the future infrastructure.
Wing engineering and manufacturing demonstrators have made further progress, with the assembly in Broughton of the first fullscale wing box using elements from various plants and partners, with learnings both for the product itself and its industrial system. Airbus explored in 2021 the potential, the feasibility and the enablers of high aspect ratio wings.
In the propulsion perimeter, various types of future propulsion architectures, product solutions, industrial technologies and capabilities are being explored to unlock strong improvements in performance and cost. Partnerships with engine and equipment manufacturers were developed.
Research projects are also looking into the fuselage architecture, its materials and industrial strategies, with academic and supply chain partners. As part of the Clean Sky 2 EU research programme, assembly of a full-scale barrel thermoplastic demonstrator began in 2021. Use cases of sustainable materials for cabin parts have increased in maturity. Disruptive product and assembly techniques for empennages have proven their feasibility and value.
Systems teams continued exploring platforms and components for aircraft systems and landing gear, and researching areas with potential for aiding more autonomous flights in the future.


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1.3 Other Corporate Activities 125 Airbus / Registration Document 2021. 
Airbus Commercial progressed further in 2021 on the road to developing robotic and automation solutions in aircraft industrial systems. Technological concepts to reduce in-service operational interruptions and maintenance burdens have been defined.
Technology development in 2021 also included delivering options for the continuous improvement of serial programmes such as the A320 and A350 aircraft.
Airbus Helicopters. 
Significant steps forward were made in 2021 in the Research and Innovation department, with activities focused on the main demonstrators and techno-bricks.
The Flightlab, the Airbus Helicopters’ techno bricks demonstrator, performed several tests in 2021: – Eye for Autonomous Guidance Landing Extension (EAGLE), based on a gyro-stabilised camera, was validated using an artificial intelligence image processing software. – Rotor Strike Alerting System was fully validated for handover to R&D for light helicopters. – Health and Usage Monitoring System (HUMS) was successfully demonstrated for light helicopters using neural network and wireless sensors. – Engine Back Up System function was demonstrated on a single engine helicopter.
The delivery of RACER’s flight components by the programme’s European partners has started. The main fuselage was delivered from Romania to Donauworth to finish the installation of the fuel system, and the canopy and was then transferred to Marignane. The tail boom and wings were delivered from Airbus Helicopters in Spain and Hamble Aerostructures Ltd according to the planning. The development of the main gear box and lateral rotor gear boxes is ongoing in collaboration with Avio Aero. The supercritical rear transmission was validated for flight. The first flight is now planned for the second half of 2022.
The CityAirbus demonstrator, which is a fully electric urban air mobility (UAM) vehicle, successfully finished its flight campaign in Manching. The new eVTOL prototype, CityAirbus NextGen, was unveiled during the Airbus Summit in September 2021, showing excellent potential in terms of performance (range and speed) for the future UAM applications. The first flight is foreseen in 2023, paving the way for certification in 2025.
Airbus Defence and Space. 
During 2021, we still faced a challenging situation in the frame of R&T, so it was necessary to further review and streamline the portfolio of R&T priorities and projects for the Division. The concept of technology flagships has been essential to facilitate and optimise this exercise of prioritisation. Five different technology flagships define the main capabilities and competences required in the Division while maintaining a full alignment across the programme lines and products portfolio: “Connectivity and Combat Cloud”, “Mission Management and Data Exploitation”, “Cost Efficiency and Industrial Performance”, “Air Systems and Platforms”, and “Spacepower”.
This optimisation of the technology landscape also took into account the reinforcement of links between R&T and R&D, and emphasised technologies reaching an “adoption” by the business and the programme lines, once the technologies reach a maturity level that allow their industrialisation and insertion into a product.
In order to maintain a proper balance between short- and longterm technologies, part of the R&T portfolio has been ring fenced to secure the activities focussing on strategic technologies, even if not time-critically demanded by the programmes at this stage, under the assumption that mastering those technologies will be key to maintain Airbus’ competitive positioning in the mid to -long-term (e.g. Quantum, advanced AI applications).
In terms of the main technology achievements, we achieved significant progress across all flagships. Several deliveries for direct insertion into products took place in the area of advanced algorithms for data exploitation and automatic processing of information from multiple sources (mission management flagship). We also achieved the further delivery of core technology bricks especially for the OneSat programme in several areas as thermal, propulsion, avionics, (Spacepower Flagship).
In the Air Systems and Platforms flagship it is relevant to highlight the milestones achieved in the Integrated Safety Critical Control Chain Computer technology for fighter aircraft, as well as the preparation for the CleanSky 2 Flight Test Bed demonstration flight that will take place in the first part of 2022, being the only flight demonstration of the CleanSky 2 European Framework Programme.
Regarding the Combat Cloud and Connectivity flagship 2021’s main achievements were in the area of technology bricks and elements that contributed to successful campaigns in Skynet 6, as well as significant progress made on the Optical roadmap for Space, with several elements further maturing and ready for adoption and insertion into the TELEO demonstrator.
On the Cost Efficiency and Industrial performance flagship, several elements of the additive manufacturing global roadmap achieved maturity for industrialisation to be used into products both in the space and aircraft environments, and a full set of technology solutions was delivered to optimise and reduce time/ cost in the manufacturing and industrial environment, ranging from integration of digital solutions and tools to share data, to dedicated solutions for improved ground electrical testing and troubleshooting.
Finally, strong efforts were placed on reinforcing the different national eco-systems footprint in the core nations. This is intended to maximise public-private collaboration, especially to recover from COVID crisis. This has led to an improvement in the ecosystems, which will be further leveraged when preparing different campaigns and proposals in the European framework, with strong emphasis on the Clean Aviation and European Defence Funds Programs.
Central Research and Technology (CRT)
CRT pioneers the future of aerospace by exploring and delivering ambitious new technologies of maximum potential impact on Airbus future products and services. CRT operates at the junction of the Airbus core and global research excellence with two main objectives: – be a technical trailblazer: explore and deliver relevant new technologies, as well as de-risk and create new opportunities; – prepare the skills of Airbus Tomorrow: Build internal capabilities in strategic emerging technologies and provide the relevant expertise to internal customers for technical support and decision-making.


1. Information on the Company’s Activities / 1.3 Other Corporate Activities 126 Airbus / Registration Document 2021. 
In 2021, CRT had 57 projects running concurrently across its domains. Highlights from these activities include the following.
– Blue Sky: A function responsible for exploring early breakthrough technologies that might change the game for the aerospace industry. After having successfully advanced research on terminals for quantum communications, and on materials recycling using novel biotechnologies. The function has evolved to cover a wider scope of technological and societal factors, and focus on strategic value returns for Airbus. New clusters have been launched: Future Energies (new ways to generate, convey and manage energy), Future Matter (manipulating matter to generate new applications), Future Brains (new dimensions enabled by advances information capture, processing, distribution, virtualisation), and Future Links (re-thinking the transport of people, goods and information). – Communications: The team is pioneering novel communication system architectures and technologies for pervasive and secure connectivity on our airborne platforms. Several projects came to their final phase this year including lab and flight demonstrations for ultra-high speed links between flying platforms, a new wireless communication / sensing system architecture for an aircraft cabin including remote powering and a first implementation of a many-core processor design for highly -critical applications. Further research is ongoing to exploit quantum communication technologies to achieve maximum security for our airborne / space-borne communication links. – Materials: 2021 saw a further push towards new technical solutions in the areas of circular raw materials, simulation/ digitalisation in materials, advanced processing and surface technologies. These key areas will support sustainability targets, products mission performance and competitiveness. Organic and in-organic approaches are covered. An optimisation of the lab operational organisation was done to enable further focus on key strategic areas.
Sustainability aspects are in the centre of the activities and further ramping up. Progress on the CO2 negative carbon fibre gives confidence that the first physical hardware will be available in 2022. Alternative recycling routes for composites are being explored further (e.g. enzymatic recycling). Circularity for titanium materials is showing good progress and will open new opportunities regarding eco-friendliness and optimised waste channels. A new project towards all green surface preparation and protection has been started. Advanced materials technologies for efficient and robust hydrogen storage solutions have been initiated and accelerated.
In the area of digitalisation of materials (from materials definition, to characterisation and analytics), the first AI based solutions for image analytics have been handed over for divisional application. AI in material design is being pushed for the first time to develop smart, indicative coatings. Further projects on digital twin development are progressing.
Additive manufacturing of advanced materials is progressing towards multi-material printing opportunities or robust printing of embedded electronics in structures.
– Electrification technologies: During 2021, we made significant progress on several aspects of electrification and electric propulsion techno bricks.
One related to electrical motor working at very high temperatures yielded improvements in material sustainability, innovative windings and heat exchanger technologies.
Another significant step was the successful demonstration of power electronics components and systems working at cryogenic temperatures, with a world premiere on a functional prototype of DC-DC converter immersed in liquid nitrogen.
Finally, wireless power transfer technology for aeronautic applications was demonstrated. We significantly improved the maximum power transmitted over a few tens of centimetre air gap. This technology has a clear application for UAV battery charging with contact.
– Virtual product engineering: The team has investigated advanced model based systems engineering technology bricks to support co-development of product and industrial systems, and has successfully demonstrated approaches to be handed over to the DDMS (Digital Design Manufacturing and Services) programme for industrialisation. In addition, projects are running to support modelling and simulation needs for future sustainable aircraft, including the use of hybrid AI techniques to support traditional computational approaches. – Data science: The team has concluded two projects this year. One focused on learning local communication routing policies and improving communication protocols for heterogeneous and highly dynamic networks. Another one focused on providing proofs of neural networks’ robustness that will be needed to certify systems embedding machine learning components. Both projects were handed over to the relevant divisional customers and will trigger new research projects in the near future. Ongoing projects include virtual assistance integrating decision support for manufacturing and cockpit scenarios, usage of natural language to interact with robots and development of in-process AI to support qualified industrial processes.


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1.4 Recent Developments 127 Airbus / Registration Document 2021 1.4 Recent Developments. 
Following the imposition of export control restrictions and sanctions by the EU, the UK, the US and other countries that are relevant to the Company's business after Russia's invasion of Ukraine on 24 February 2022, the Company announced in March 2022 it has suspended the delivery of aircraft and support services to Russian customers, as well as the supply of spare parts, equipment and software to Russia. The Company is complying with all applicable regulations and sanctions to its facilities and operations in Russia. See “– Risk Factors – Business-Related Risks – Ukraine Crisis.”
On 22 February 2022, Airbus, Safran and Tikehau Ace Capital announced that they have signed a Memorandum of Understanding with the mining and metallurgical group Eramet for the acquisition of its subsidiary Aubert & Duval. The three partners intend to acquire 100% of Aubert & Duval through a new joint holding company that would be specifically set up for this transaction and in which they would have equal ownership rights.
On 1 April 2022, a change took effect related to the Company’s Defence and Space Division programme lines. Airbus Defence & Space integrated the programme lines Unmanned Aerial Systems and Military Aircraft into a single business line. The name of the new programme line is Military Air Systems.


2. 
Chapter 128 Airbus / Registration Document 2021


2. 
Management’s Discussion and Analysis of Financial Condition and Results of Operations 2.1 Operating and Financial Review 130 2.1.1 Overview 131 2.1.2 Significant Accounting Considerations, Policies and Estimates 134 2.1.3 Performance Measures 135 2.1.4 Results of Operations 139 2.1.5 Changes in Total Equity (Including Non-Controlling Interests) 143 2.1.6 Liquidity and Capital Resources 144 2.2 Financial Statements 148 2.3 Statutory Auditor Fees 148 2.4 Information Regarding the Statutory Auditors 148 129 Airbus / Registration Document 2021


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review 130 Airbus / Registration Document 2021 2.1 Operating and Financial Review. 
The following discussion and analysis is derived from and should be read together with the audited IFRS Consolidated Financial Statements as of and for the years ended 31 December 2021, 2020 and 2019. These Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board as endorsed by the European Union, and with Part 9 of Book 2 of the Dutch Civil Code. When reference is made to “IFRS”, this intends to be EU-IFRS.
The following discussion and analysis also contains certain “non-GAAP financial measures”, i.e. financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. Specifically, the Company makes use of the non-GAAP financial measures (i.e. Alternative Performance Measures) “EBIT Adjusted”, “net cash” and “Free Cash Flow”.
The Company uses these non-GAAP financial measures to assess its consolidated financial and operating performance and believes they are helpful in identifying trends in its performance. These measures enhance management’s ability to make decisions with respect to resource allocation and whether the Company is meeting its financial goals.
Non-GAAP financial measures have certain limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of the Company’s results as reported under IFRS. Because of these limitations, they should not be considered substitutes for the relevant IFRS measures.
The Company also measures and communicates its performance on the basis of “EBIT” (reported).
Reporting in Universal Registration Document 2021. 
Impact of the COVID-19 pandemic. In 2020, the COVID-19 pandemic resulted in significant disruption to the Company’s business operations and supply chain. In 2021, the commercial environment has shown signs of improvements, in particular an increase in air travel demand. The Company is monitoring the evolution of the COVID-19 pandemic and will continue to assess further impacts going forward. For further information, see “– Risk Factors – BusinessRelated Risks – COVID-19 Risks” and “Notes to the IFRS Consolidated Financial Statements – Note 2: Impact of the COVID-19 Pandemic”.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2
2.1 Operating and Financial Review 131 Airbus / Registration Document 2021 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 2019 1.1195 0.8778 1.1234 0.8508 31 December 2020 1.1422 0.8897 1.2271 0.8990 31 December 2021 1.1827 0.8596 1.1326 0.8403 2.1.1.2 Reportable Business Segments. 
The Company operates 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 aircraft of more than 100 seats, aircraft conversion and related services; development, manufacturing, marketing and sale of regional turboprop aircraft and aircraft components. 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 Aircraft design, development, delivery, and support of military aircraft such as combat, mission, transport and tanker aircraft and their associated services. Space Systems design, development, delivery, and support of full 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 as well as space launcher systems. Unmanned Aerial Systems design, development, delivery and service support.
On 21 April 2021, the Company presented its plans to create integrated aerostructures assembly companies in both France and Germany, and a third company as a new global player in the detail parts business, anchored in Germany. The plans have no impact on the segment structure described above (see “Notes to the IFRS Consolidated Financial Statements – Note 40: Events after the Reporting Date”).
Consolidation effects are reported in the column “Eliminations”. The activities related to innovation and digital transformation, formerly reported in the column “Transversal/Eliminations”, are included in the Business segment Airbus under the new segment structure.
2.1.1.3 Significant Programme Developments in 2019, 2020 and 2021 and Other Financial Topics. 
A380 programme. Airbus delivered five A380 aircraft in 2021, four in 2020 and eight in 2019.
As of 31 December 2018, the Company’s largest A380 operator reviewed its aircraft fleet strategy going forward and concluded it was forced to restructure and reduce its A380 order by 39 aircraft. As a consequence, the recognition of the onerous contract provision as well as other specific provisions and the remeasurement of the liabilities affected the consolidated income statement before taxes by a net € 463 million in EBIT and positively impacted the other financial result by € 177 million as of 31 December 2018.
As a consequence and in addition to the net charge recorded in 2018, the Company recorded a net charge of € 385 million in EBIT in 2020 and of € 202 million in 2019, as part of its continuous assessment of asset recoverability and review of onerous contract provision assumptions. The Company delivered the last A380 aircraft in 2021. In 2021, a positive EBIT impact of € 274 million was recorded, mainly reflecting the release of provision recorded in 2018 on the former A380 Lagardère facility that will be used for the modernised A320 FAL.
A350 XWB programme. In 2019, Airbus delivered 112 A350 XWB aircraft. New order intakes, cancellations, delivery postponements and other contractual agreements to the end of December 2019 were reflected in the Financial Statements. Risks continued to be closely monitored in line with the schedule, aircraft performance and overall cost envelope, as per customer commitments. Despite the progress made, challenges remained with recurring cost convergence. The breakeven target for the A350 was achieved in 2019. Given overall customer demand for widebody aircraft, Airbus expected A350 deliveries to stay between a monthly rate of nine and ten aircraft.
2.1.1 Overview. 
The Company constantly innovates to provide efficient and technologically-advanced solutions in aerospace, defence, and connected services. In commercial aircraft, the Company offers modern and fuel-efficient airliners and associated services. The Company is also a European leader in defence and security and one of the world’s leading space businesses. In helicopters, the Company provides the most efficient civil and military rotorcraft solutions and services worldwide. The Company’s consolidated revenues amounted to € 52.1 billion in 2021, of which 82% in the civil sector (compared to 79% in 2020) and 18% in the defence sector (compared to 21% in 2020). As of 31 December 2021, the Company’s active headcount was 126,495 employees, a decrease compared to 2020 (131,349 employees).


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review 132 Airbus / Registration Document 2021. 
On 8 April 2020, the Company announced its decision to adapt commercial aircraft production rates to six per month for A350 in response to the new COVID-19 market environment. Subsequently, the rate for A350 was further reduced to around five per month. In 2020, Airbus delivered 59 A350 XWB aircraft. Given the significant production rate reduction, the A350 programme did not reach breakeven with this level of deliveries.
In 2021, Airbus delivered 55 A350 XWB aircraft. On 28 October 2021, the Company announced the A350 programme is expected to increase from around five to around six aircraft a month in early 2023.
A400M programme. Developments on the A400M programme resulted in the recognition of revenues of € 1.5 billion in 2019, € 1.6 billion in 2020 and € 1.4 billion in 2021.
In 2019, 14 A400M aircraft were delivered. In total, the Company had delivered a total of 88 A400M aircraft as of 31 December 2019. On 13 June 2019, the Company concluded together with OCCAR and the Nations the negotiations on a global rebaselining of the programme. A contract amendment was signed by all parties, providing a revised aircraft delivery schedule, an updated technical capability roadmap and a revised retrofit schedule. Important certification milestones were achieved in 2019, in particular on critical Paratrooper Simultaneous Dispatch and Helicopter Air to Air refuelling capabilities. Technical modifications corresponding to the New Standard Operating Clearance (NSOC2) contractual standard were certified and qualified. However, NSOC2 Type Acceptance initially planned in 2019 was still pending due to ongoing discussions on some operational limitations. In the fourth quarter 2019, an update of the contract estimate at completion was performed and an additional charge of € 1,212 million recorded. This reflected mainly the updated estimates on the export scenario during the launch contract phase based on a revision of the market perspectives taking into account the current environment, including the suspension of the export licenses by the German Government and its consequences on potential prospects. It reflected as well some cost increases in particular for retrofit and an updated view on applicable escalation.
As of 31 December 2021 the Company has delivered a total of 105 A400M aircraft including eight aircraft in 2021 and nine aircraft in 2020. The COVID-19 pandemic is weighing on the performance of development, production, flight testing, aircraft delivery and retrofit activities of the programme. The Company has continued with development activities toward achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. In 2020, an update of the contract estimate at completion was performed and a charge of € 63 million recorded reflecting mainly the variation of price escalation indexes. In 2021, an update of the contract estimate at completion has been performed and an additional charge of € 212 million has been recorded. This reflects mainly the updated estimates on the delivery pattern of the launch contract and the associated impact on unabsorbed costs. Risks remain on the development of technical capabilities and associated costs, on aircraft operational reliability in particular with regard to power plant, on cost reductions and on securing export orders in time as per the revised baseline.
A320 programme. In 2019, NEO aircraft deliveries rose by 43% year-on-year to 551 aircraft. The ramp-up continued for the Airbus Cabin Flex (“ACF”) version of the A321 with almost 100 more deliveries than in 2018. The Airbus teams were focused on securing the ongoing ACF ramp-up and improving the industrial flow. At that time, Airbus discussed further ramp-up potential for the A320 programme beyond rate 63 per month with the supply chain, and saw a clear path to further increase the monthly production rate by one or two for each of the two years after 2021.
On 8 April 2020, the Company announced its decision to adapt commercial aircraft production rates to 40 per month for the A320 Family in response to the new COVID-19 market environment. In 2020, Airbus delivered 431 A320neo Family aircraft. On A320, production rates were foreseen to gradually increase from 40 aircraft per month currently to 43 in the third quarter and 45 in the fourth quarter 2021.
In 2021, Airbus delivered 459 A320neo Family aircraft. On 28 October 2021, the Company announced that it is working to secure the A320 Family programme ramp up and is on trajectory to achieve a monthly rate of 65 aircraft by summer 2023. For A320 Family production rates beyond 2023, the Company is still in the assessment phase and working with suppliers to potentially enable an increase above rate 65.
A330 programme. In 2019, 53 A330 were delivered. Given overall customer demand for widebody aircraft, Airbus expected A330 deliveries of approximately 40 aircraft per year beginning in 2020 (prior to the outbreak of COVID-19).
In 2020, 19 A330 were delivered. On 8 April 2020, the Company announced its decision to reduce commercial aircraft production rates to around two per month for A330 in response to the new COVID-19 market environment.
In 2021, 18 A330 were delivered. On 28 October 2021, the Company announced that the recent commercial success of the A330 programme enabled a monthly rate increase from around two to almost three aircraft at the end of 2022.
A220 programme. In 2019, A220 aircraft deliveries rose to 48 aircraft. Our focus continued to be on cost reduction as well as growing the backlog to support the ramp-up plan in Mirabel (Canada) and Mobile (US) where we targeted our first delivery in 2020. Order backlog stood at 495 aircraft as of 31 December 2019.
In 2020, 38 A220 aircraft were delivered. Rates were expected to increase from four to five aircraft per month from the end of the first quarter 2021.
In 2021, 50 A220 aircraft were delivered. On 28 October 2021, the Company announced the A220 production rate, which was at five aircraft a month, is expected to increase to around rate six per month in early 2022, with a monthly production rate of 14 envisaged by the middle of the decade.
Defence export ban. Defence export licences to Saudi Arabia were suspended by the German Government until 31 March 2020. A revised Estimate at Completion (EAC) for a customer contract was performed as of 31 December 2020, and the Company continues to engage with its customer to agree a way forward. The outcome of these negotiations is presently unclear but could result in further significant financial impacts. The year-end 2020 assessment remains unchanged as of 31 December 2021.
Going concern and associated liquidity measures. On 23 March 2020, the Company announced measures to bolster its liquidity and balance sheet in response to the COVID-19 pandemic, including a new € 15 billion credit facility


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2
2.1 Operating and Financial Review 133 Airbus / Registration Document 2021 partially termed out by bond and USPP issuances whereas the remaining portion matured on 30 September 2021, the withdrawal of 2019 dividend proposal with cash value of € 1.4 billion, the suspension of voluntary top up pension funding and strong focus on support to customers and delivery. In parallel, governmental partners supported the aerospace sector since the beginning of the crisis either through direct support to airlines and suppliers, or through partial unemployment schemes. With these decisions, the Company had available liquidity to cope with additional cash requirements, including the amended production rates as described above. On 21 October 2020, the Company signed a new € 6 billion Revolving Syndicated Credit Facility also partially terming out the € 15 billion credit facility by € 3 billion in order to refinance its existing € 3 billion Revolving Syndicated Facility. As of 31 December 2020, the Company had a net cash position of € 4.3 billion with a total liquidity of € 33.6 billion, before deducting short-term financing liabilities.
As of 31 December 2021, the Company had a net cash position of € 7.6 billion with a total liquidity of € 28.7 billion, before deducting short-term financing liabilities. As of 31 December 2021, management considers the Company has sufficient resources to continue operating for at least 12 months and that there are no material uncertainties about the Company’s ability to continue as a going concern. For further information on liquidity, see “– 2.1.6 Liquidity and Capital Resources”.
Restructuring provisions. In 2019, a provision of € 103 million related to restructuring measures at Premium AEROTEC was recorded following the announcement in December 2019 to the Works Council of the main features that would be carried out to increase future competitiveness.
In June 2020, Airbus announced plans to adapt its global workforce, principally in France, Germany, Spain and the UK, and resize its commercial aircraft activity in response to the COVID-19 crisis. This adaptation was expected to result in a reduction of around 15,000 positions no later than summer 2021. Working time adaptation and mitigation measures supported by the governments have reduced the number of positions subject to the restructuring plan. Taking into consideration the actual departures since the initial announcement, the remaining number of positions subject to the restructuring plan amounted to approximately 6,100 as of 31 December 2020, including preretirement headcount under German Altersteilzeit (“ATZ”). In addition, Airbus Defence and Space completed the consultation process with the Company’s European works council on the Division’s planned restructuring. The plan presented to the employee representatives initially foresaw the reduction of around 1,900 positions including pre-retirement headcount under ATZ until the end of 2021. However this number was also subsequently reduced to approximately 1,400 positions reflecting departures which occurred after the initial announcement. In November 2020, a reconciliation of Interest Agreement involving approximately 100 positions was signed in Germany within Airbus Helicopters and hence, a provision has been recorded accordingly. As of 30 September 2020, a restructuring provision was recognised for an amount of € 1.2 billion including mainly the cost of voluntary and compulsory measures taking into account management’s best estimate of the impact of the working time adaptation and government support measures. Total payments to employees affected by the plan were expected to amount to approximately € 1.5 billion, including the settlement of other accrued employee benefits.
As of 31 December 2021 and 31 December 2020, the restructuring provision in response to the COVID-19 pandemic amounted to € 0.1 billion and € 1.0 billion respectively. It reflects the utilisation of the restructuring provision for an amount of € 0.6 billion, the release of € 0.2 billion and € 0.2 billion reclassified to liabilities to reflect the progress of the plan.
Operational assets. As of 31 December 2020, the Company performed a comprehensive review of its operational assets and liabilities taking into account the amended production rates and expected future deliveries. This review resulted in charges being recorded in 2020 for an amount of € 1.3 billion, including an impairment of inventories considered at risk of € 355 million, additional provisions relating to A380 programme of € 279 million, a write-off of capitalised development costs of € 101 million, provisions for supplier commitments of € 157 million and provisions covering various commercial risks of approximately € 401 million.
As of 31 December 2021, year-to-date financials reflect deliveries as well as efforts on cost containment and competitiveness. Furthermore, the Company has performed a comprehensive review of provisions and depreciations, taking into account the amended production rates and expected future deliveries. Consequently, the Company recorded € 0.6 billion of release of COVID-related provisions including restructuring in 2021.
Litigation. For information, see “– 1.1.7 Legal and Arbitration Proceedings” and “Notes to the IFRS Consolidated Financial Statements – Note 24: Provisions, Contingent Assets and Contingent Liabilities”.
2.1.1.4 Current Trends. 
As the basis for its 2022 guidance, the Company assumes no further disruptions to the world economy, air traffic, the Company’s internal operations, and its ability to deliver products and services. The Company’s 2022 guidance is before M&A.
On that basis, the Company targets to achieve in 2022 around: 720 commercial aircraft deliveries; EBIT Adjusted of € 5.5 billion; and Free Cash Flow before M&A and Customer Financing of € 3.5 billion.
This guidance has been prepared on the basis of certain assumptions, including the principal assumptions as set out below. The principal assumptions within the Company’s control are as follows: (a) underlying commercial aircraft deliveries are based on existing orders. Revenues from other activities are also based on existing orders and may include estimates based on relevant market forecasts; (b) no significant interruption in operational performance or programme execution; (c) no disruption in or change to the development of products or other development projects; and (d) no material change to the Company’s existing capital structure.
The principal assumptions outside the Company’s control are as follows: (a) no material change in general trading conditions, economic conditions, competitive environment or levels of demand which would materially affect the Company’s business; (b) the Company’s internal operations do not suffer further disruptions or from external interruptions; (c) suppliers will meet their delivery commitments and ensure maturity, availability and in-service performance; (d) no material change in the ability or willingness of our customers to meet their contractual obligations, including payment obligations to the Company; (e) no changes


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review 134 Airbus / Registration Document 2021 2.1.2 Significant Accounting Considerations, Policies and Estimates. 
The Company’s significant accounting considerations, policies and estimates are described in the Notes to the IFRS Consolidated Financial Statements. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 3: Significant Accounting Policies”, “– Note 4: Key Estimates and Judgements” and “– Note 5: Change in Accounting Policies and Disclosures”.
2.1.2.1 Scope of and Changes in Consolidation. 
For further information on the scope of and changes in consolidation as well as acquisitions and disposals of interests in business, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 7: Scope of Consolidation” and “– Note 8: Acquisitions and Disposals”.
2.1.2.2 Capitalised Development Costs. 
Pursuant to the application of IAS 38 “Intangible Assets”, the Company assesses whether product-related development costs qualify for capitalisation as internally generated intangible assets. Criteria for capitalisation are strictly applied. All research and development costs not meeting the IAS 38 criteria are expensed as incurred in the consolidated income statement. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 3: Significant Accounting Policies – Research and development expenses” and “– Note 19: Intangible Assets”.
2.1.2.3 Impairment of Long-Life Assets, Work in Progress and Finished Aircraft. 
In testing long-life assets such as jigs and tools and capitalised development costs for impairment, the Company makes estimates on the number and timing of aircraft units to be delivered in the future, the margin of these aircraft, and the discount rate associated with the aircraft programme. For aircraft that may need to be remarketed, the impairment of working progress and finished aircraft is assessed based on an estimation of the future selling price and associated remarketing costs.
2.1.2.4 Accounting for Hedged Foreign Exchange Transactions in the Financial Statements. 
In 2021, more than 70% of the Company’s revenues are denominated in US dollars, with around 60% of such currency exposure “naturally hedged” by US dollar-denominated costs.
The remainder of costs are incurred primarily in euros, and to a lesser extent, in pounds sterling. Consequently, to the extent that the Company does not use financial instruments to hedge its net current and future exchange rate exposure from the time of a customer order to the time of delivery, its profits will be affected by market changes in the exchange rate of the US dollar against these currencies, and to a lesser extent, by market changes in the exchange rate of pound sterling against the euro.
The Company uses hedging strategies to manage and minimise the impact of exchange rate fluctuations on its profits, including foreign exchange derivative contracts, interest rate and equity swaps and other non-derivative financial assets or liabilities denominated in a foreign currency. As the Company intends to generate profits only from its operations and not through speculation on foreign currency exchange rate movements, the Company uses hedging strategies solely to mitigate the impact of exchange rate fluctuations on its EBIT.
For further information on the Company’s hedging strategies in response to its particular exposures as well as a description of its current hedge portfolio, see “– Risk Factors – 1. Financial Market Risks – Foreign Currency Exposure” and please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 3: Significant Accounting Policies” and “– Note 37: Financial Instruments”.
2.1.2.5 Foreign Currency Translation. 
For information on transactions in currencies other than the functional currency of the Company and translation differences for other assets and liabilities of the Company denominated in foreign currencies, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 3: Significant Accounting Policies – Transactions in foreign currency”.
Currency Translation Mismatch. 
Customer advances (and the corresponding revenues recorded when sales recognition occurs) are translated at the exchange rate prevailing on the date they are received (historical rates of customer advances). US dollar-denominated costs are converted at the exchange rate prevailing on the date they are incurred (historical rates of US dollar-denominated costs). To the extent those historical rates and the amounts received and paid differ, there is a foreign currency exchange impact (mismatch) on EBIT. Additionally, the magnitude of any such difference, and the corresponding impact on EBIT, is sensitive to variations in the number of deliveries and spot rate (€/US$).
in the legislative or regulatory environment which could have a material effect on the Company; and (f) no adverse outcome to any material litigation or investigation.
This guidance has been prepared on a basis consistent with the accounting policies adopted by the Company and is comparable with the Company’s historical financial information.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2
2.1 Operating and Financial Review 135 Airbus / Registration Document 2021 2.1.3 Performance Measures 2.1.3.1 Business segments. 
Airbus (In € million) 2021 2020 2019. 
Revenue 36,164 34,250 54,775. 
EBIT(1) 4,175 (1,330) 1,794 in % of revenue(1) 11.5% (3.9%) 3.3% (1) 2019 figures are restated due to new segment presentation.
Airbus Helicopters (In € million) 2021 2020 2019. 
Revenue 6,509 6,251 6,007. 
EBIT 535 455 414 in % of revenue 8.2% 7.3% 6.9%
Airbus Defence and Space (In € million) 2021 2020 2019. 
Revenue 10,186 10,446 10,907. 
EBIT 568 408 (881) in % of revenue 5.6% 3.9% (8.1%) 2.1.2.6 Accounting for Sales Financing Transactions in the Financial Statements. 
The accounting treatment of sales financing transactions varies based on the nature of the financing transaction and the resulting exposure. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 21: Other Investments and Other Long-Term Financial Assets”, “– Note 24: Provisions, Contingent Assets and Contingent Liabilities” and “– Note 27: Sales Financing Transactions”.
For further information on the significance of sales financing transactions for the Company, see “– 2.1.6.4 Sales Financing”.
2.1.2.7 Provisions for Onerous Contracts. 
Provisions for onerous contracts are reviewed and reassessed regularly. However, future changes in the assumptions used by the Company or a change in the underlying circumstances may lead to a revaluation of past provisions for onerous contracts and have a corresponding positive or negative effect on the Company’s future financial performance. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 3: Significant Accounting Policies – Provisions for onerous contracts” and “– Note 24: Provisions, Contingent Assets and Contingent Liabilities”.
2.1.3.2 Order Intake and Order Backlog. 
Year-end order backlog consists of contracts signed up to that date. Only firm orders are included in calculating the order backlog for commercial aircraft and civil helicopters. A firm order is defined as one for which the Company receives a down payment on a definitive contract. Defence-related orders are included in the backlog upon enforcement of the signed contract. Commitments under defence “umbrella” or “framework” agreements by governmental customers are not included in backlog until the Company is officially notified.
The total order backlog and order intake represent the aggregate amount of the net transaction price allocated to the unsatisfied and partially unsatisfied performance obligations to the Company’s customers. Backlog commitments are relative to the Company’s enforceable contracts with its customers where it is probable that the consideration will be collected. Contractual rebates, engine concessions and variable considerations are taken into account for measurement. Contracts stipulated in a currency different from the presentation currency are translated


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review 136 Airbus / Registration Document 2021 to euro using the spot rate as of 31 December 2021, 2020 and 2019, respectively. Adjustments to the value of the order backlog could result from changes in the transaction price. Options are not considered in the valuation of order intake and order backlog. The order backlog will mainly be released into revenue over a period of seven years.
2021 compared to 2020. The € 25.3 billion increase in order backlog to € 398.4 billion (2020: € 373.1 billion), mainly reflected the strengthening US dollar.
Airbus’ backlog increased by € 20.4 billion to € 345.1 billion. The book to bill ratio in units was below 1 (calculated using units of new net orders, i.e. new net orders in units divided by deliveries in units). Total order backlog at Airbus amounted to 7,082 aircraft at the end of 2021 (as compared to 7,184 aircraft at the end of 2020). Order intake consisted of 507 net orders in 2021 (as compared to 268 in 2020), comprising 437 net firm orders of the A320 Family, 38 A220s and 32 widebodies, including the first A350 freighter orders.
Airbus Helicopters’ backlog increased by € 2.2 billion to € 18.0 billion, achieving a book-to-bill ratio well above 1 in terms of units and value. Total order backlog amounted to 739 helicopters at the end of 2021 (as compared to 663 helicopters at the end of 2020). Airbus Helicopters received 414 net orders in 2021 (as compared to 268 in 2020), including 52 H160s, of which 30 were the first batch of H160M military versions for France’s Joint Light Helicopter programme.
Airbus Defence and Space’s backlog increased by € 2.6 billion to € 36.1 billion and the book-to-bill ratio in value amounted to 1.3 with new net orders of € 13.7 billion, including key orders in the Military Aircraft business such as the contracts for the in- service support of the German and Spanish Eurofighter fleets as well as export contracts for the C295 (India), A330 MRTT (United Arab Emirates and Spain) and A400M airlifter (Republic of Kazakhstan).
2020 compared to 2019. The € -98.4 billion decrease in order backlog to € 373.1 billion (2019: € 471.5 billion), reflected higher number of deliveries compared to order intake, the weakening of the US dollar and an assessment of the order backlog’s recoverability.
Airbus’ backlog decreased by € -99.4 billion to € 324.7 billion. The book to bill ratio in units was below one (calculated using units of new net orders, i.e. new net orders in units divided by deliveries in units). Total order backlog at Airbus amounted to 7,184 aircraft at the end of 2020 (as compared to 7,482 aircraft at the end of 2019). Order intake consisted of 268 net orders in 2020 (as compared to 768 in 2019), including mainly 263 net firm orders of the A320 Family and 30 A220s.
Airbus Helicopters’ backlog decreased by € -0.8 billion to € 15.8 billion and the book-to-bill ratio amounted to 0.9 in terms of value, including 31 NH90s for the German Bundeswehr and 11 H160s. Airbus Helicopters received 268 net orders in 2020 (as compared to 310 in 2019). Total order backlog amounted to 663 helicopters at the end of 2020 (as compared to 695 helicopters at the end of 2019).
ORDER INTAKE 2021 2020 2019 (In € billion) (In percentage)(1) (In € billion) (In percentage)(1) (In € billion) (In percentage)(1)
Airbus 40.0 64.3% 16.1 48.1% 65.8 80.7%
Airbus Helicopters 8.6 13.7% 5.5 16.4% 7.2 8.8%
Airbus Defence and Space 13.7 22.0% 11.9 35.5% 8.5 10.5%
Subtotal segmental order intake 62.2 100% 33.5 100% 81.5 100%
Eliminations (0.2) (0.2) (0.3)
Total 62.0 33.3 81.2 (1) Before “Eliminations”.
ORDER BACKLOG 31 December 2021 2020 2019 (In € billion) (In percentage)(1) (In € billion) (In percentage)(1) (In € billion) (In percentage)(1)
Airbus 345.1 86.4% 324.7 86.8% 424.1 89.7%
Airbus Helicopters 18.0 4.5% 15.8 4.2% 16.6 3.5%
Airbus Defence and Space 36.1 9.1% 33.5 9.0% 32.3 6.8%
Subtotal segmental order backlog 399.2 100% 374.0 100% 473.0 100%
Eliminations (0.8) (0.9) (1.5)
Total 398.4 373.1 471.5 (1) Before “Eliminations”.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2
2.1 Operating and Financial Review 137 Airbus / Registration Document 2021. 
Airbus Defence and Space’s backlog increased by € 1.2 billion to € 33.5 billion and the book-to-bill ratio in value amounted to 1.1 with new net orders of € 11.9 billion, mainly driven by major contract wins in Military Aircraft, including a contract to deliver 38 new Eurofighters for the German Air Force.
The following table illustrates the proportion of civil and defence backlog at the end of each of the past three years.
31 December 2021 2020 2019 (In € billion) (In percentage)(1) (In € billion) (In percentage)(1) (In € billion) (In percentage)(1)
Civil sector 355.3 89% 334.5 90% 433.4 92%
Defence sector 43.1 11% 38.6 10% 38.1 8%
Total 398.4 100% 373.1 100% 471.5 100% (1) Including “Eliminations”.
2.1.3.3 EBIT Adjusted. 
The Company uses an alternative performance measure EBIT Adjusted as a key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructurings or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses.
The following table reconciles the Company’s EBIT with its EBIT Adjusted.
(In € million) 2021 2020 2019. 
EBIT 5,342 (510) 1,339. 
PDP mismatch / BS revaluation 38 480 170. 
A380 programme (274) 385 202. 
A400M charge 212 63 1,212. 
Penalties 0 0 3,598. 
Compliance costs 65 87 206. 
Non-current assets disposal(1) (122) 0 0. 
M&A impact(2) 0 2 (111)
Defence export ban 0 0 221. 
Restructuring provision(3) (163) 1,199 103. 
Payments by suppliers (234) 0 0. 
Others 1 0 6. 
EBIT Adjusted 4,865 1,706 6,946 (1) Including gain from divestment of one of its sites in France to a 50% joint venture. (2) Including net capital gains from PFW Aerospace GmbH (€ -57 million) and Alestis Aerospace SL (€ -45 million) in 2019. (3) Including workforce adaptation release in 2021 (€ -0.2 billion), initially recognised in 2020 (€ 1.2 billion).
2.1.3.4 EBIT Adjusted by Business segment (In € million) 2021 2020 2019. 
Airbus(1) 3,570 618 5,947. 
Airbus Helicopters 535 471 422. 
Airbus Defence and Space 696 660 565. 
Subtotal segmental EBIT Adjusted(1) 4,801 1,749 6,934. 
Eliminations(1) 64 (43) 12. 
Total 4,865 1,706 6,946 (1) 2019 figures are restated due to new segment presentation.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review 138 Airbus / Registration Document 2021 2.1.3.5 EBIT by Business Segment (In € million) 2021 2020 2019. 
Airbus(1) 4,175 (1,330) 1,794. 
Airbus Helicopters 535 455 414. 
Airbus Defence and Space 568 408 (881)
Subtotal segmental EBIT(1) 5,278 (467) 1,327. 
Eliminations(1) 64 (43) 12. 
Total 5,342 (510) 1,339 (1) 2019 figures are restated due to new segment presentation.
2021 compared to 2020. The Company’s consolidated EBIT increased from € -0.5 billion for 2020 to € 5.3 billion for 2021, mainly driven by Airbus.
Airbus’ EBIT increased from € -1.3 billion for 2020 to € 4.2 billion for 2021.This mainly reflects the higher commercial aircraft deliveries, effort on cost containment and competitiveness as well as the release of COVID-related provisions in 2021 compared to the recording of charges triggered by the COVID-19 pandemic in 2020, including restructuring provision.
Airbus Helicopters’ EBIT increased from € 455 million for 2020 to € 535 million for 2021, mainly driven by support and services, programme execution and cost focus.
Airbus Defence and Space’s EBIT increased from € 408 million for 2020 to € 568 million for 2021, reflecting continued cost containment. Additionally, it includes the gain recognised for the sale of one of its sites in France to a 50% joint venture of € 122 million and higher A400M programme charge.
2020 compared to 2019. The Company’s consolidated EBIT decreased from € 1.3 billion for 2019 to € -0.5 billion for 2020. This includes the impacts of the ongoing COVID-19 pandemic and the € 1.2 billion restructuring provision recognised in the third quarter of 2020 (see “– 2.1 Operating and Financial Review”).
Airbus’ EBIT decreased from € 1.8 billion for 2019 to € -1.3 billion for 2020, also reflecting the impacts of the ongoing COVID-19 pandemic including lower deliveries, the charges recognised as a result of the comprehensive review of the operational assets and liabilities taking into account the amended production rates and expected future deliveries and the restructuring provision recorded related to the COVID-19 pandemic. In 2019, it included the recognition of penalties for agreements with authorities of € 3.6 billion.
Airbus Helicopters’ EBIT increased from € 414 million for 2019 to € 455 million for 2020, reflecting favourable product mix, strong governmental-related activities and reliable programme execution. It also includes lower research and development expenses reflecting the end of the European Union Aviation Safety Agency (“EASA”) certification process for the five-bladed H145 and the H160.
Airbus Defence and Space’s EBIT increased from € -881 million for 2019 to € 408 million for 2020, mainly due to lower A400M programme charge in 2020 as well as the effect of costs containment measures and lower research and development costs, partially offset by the impact of COVID-19 pandemic, including on the launcher business.
Foreign currency impact on EBIT. In 2021, more than 70% of the Company’s revenues are denominated in US dollars, whereas a substantial portion of its costs is incurred in euros and to a lesser extent, pounds sterling. Given the long-term nature of its business cycles (evidenced by its multi-year backlog), the Company hedges a significant portion of its net foreign exchange exposure to mitigate the impact of exchange rate fluctuations on its EBIT. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 37: Financial Instruments” and see “– Risk Factors – 1. Financial Market Risks – Foreign Currency Exposure” and “– 2.1.2.5 Foreign Currency Translation”. In addition to the impact that hedging activities have on the Company’s EBIT, the latter is also affected by the impact of revaluation of certain assets and liabilities at the closing rate and the impact of natural hedging.
During 2021, Cash Flow hedges covering approximately US$ 20.9 billion of the Company’s US dollar-denominated net exposure matured.
In 2021, the compounded exchange rate at which hedged US dollar-denominated revenues were accounted for was €/ US$ 1.20, as compared to €/US$ 1.19 in 2020.
During 2020, Cash Flow hedges covering approximately US$ 17.1 billion of the Company’s US dollar-denominated net exposure matured. In 2020, the compounded exchange rate at which hedged US dollar-denominated revenues were accounted for was €/US$ 1.19, as compared to €/US$ 1.24 in 2019.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2
2.1 Operating and Financial Review 139 Airbus / Registration Document 2021 2.1.4 Results of Operations. 
The following table summarises the IFRS Company’s Consolidated Income Statements for the past three years: (In € million) 2021 2020 2019. 
Revenue 52,149 49,912 70,478. 
Cost of sales (42,518) (44,250) (59,973)
Gross margin 9,631 5,662 10,505. 
Selling and administrative expenses (2,052) (2,140) (6,125)
Research and development expenses (2,746) (2,858) (3,358)
Other income 594 132 370. 
Other expenses (201) (1,458) (356)
Share of profit from investments accounted for under the equity method and other income from investments 116 152 303. 
Profit (Loss) before financial result and income taxes 5,342 (510) 1,339. 
Interest result (246) (271) (111)
Other financial result (69) (349) (164)
Income taxes (853) (39) (2,389)
Profit (Loss) for the period 4,174 (1,169) (1,325)
Attributable to. 
Equity owners of the parent (Net income) 4,213 (1,133) (1,362)
Non-controlling interests (39) (36) 37. 
Earnings per share € € €
Basic 5.36 (1.45) (1.75)
Diluted 5.36 (1.45) (1.75) 2.1.4.1 Revenues. 
The following table presents a breakdown of the Company’s revenues by Business segment for the past three years: (In € million) 2021 2020 2019. 
Airbus 36,164 34,250 54,775. 
Airbus Helicopters 6,509 6,251 6,007. 
Airbus Defence and Space 10,186 10,446 10,907. 
Subtotal segmental revenue 52,859 50,947 71,689. 
Eliminations (710) (1,035) (1,211)
Total 52,149 49,912 70,478. 
Revenues increased by 4.5%, from € 49.9 billion for 2020 to € 52.1 billion for 2021. The increase is mainly driven by Airbus, reflecting higher aircraft deliveries partly offset by an unfavourable foreign exchange impact.
For 2020, revenues decreased by 29.2%, from € 70.5 billion for 2019 to € 49.9 billion for 2020, reflecting mainly lower commercial aircraft deliveries at Airbus.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review 140 Airbus / Registration Document 2021. 
Airbus’ revenues increased by 5.6%, from € 34.3 billion for 2020 to € 36.2 billion for 2021. This reflected higher deliveries of 611 aircraft (compared to 566 deliveries in 2020), partly offset by an unfavourable foreign exchange impact.
For 2020, Airbus’ revenues decreased by 37.5%, from € 54.8 billion for 2019 to € 34.3 billion for 2020. This was due to lower deliveries of 566 aircraft (compared to 863 deliveries in 2019), including 59 A350 XWBs and 38 A220s, in line with the production adaptation plan set out in April 2020 in response to the COVID-19 pandemic, see “– 2.1 Operating and Financial Review”.
Revenue by Geographical Areas 2021 2020 2019 (In € billion) (In percentage)(1) (In € billion) (In percentage)(1) (In € billion) (In percentage)(1)
Asia/Pacific 16.0 30.6% 13.1 26.3% 22.6 32.1%
Europe 19.5 37.4% 20.3 40.7% 22.6 32.1%
North America 10.5 20.2% 8.7 17.4% 12.0 17.1%
Other countries(2) 6.1 11.8% 7.8 15.6% 13.3 18.8%
Total 52.1 100% 49.9 100% 70.5 100% (1) Percentage of total revenue after eliminations. (2) Including the Middle East.
Airbus. 
The following table presents a breakdown of deliveries of commercial aircraft by product type for the past three years.
(In units) 2021 2020 2019. 
A220 50 38 48. 
A320 Family 483 446 642. 
A330 18 19 53. 
A350 XWB 55 59 112. 
A380 5 4 8. 
Total 611 566 863. 
Airbus Helicopters. 
The following table presents a breakdown of deliveries of helicopters by product type for the past three years.
(In units) 2021 2020 2019. 
Light 159 123 159. 
Medium 121 126 122. 
Heavy 58 50 47 thereof NH90 27 28 32. 
Tiger 0 1 4. 
Total 338 300 332. 
Airbus Helicopters’ revenues amounted to € 6.5 billion in 2021 (2020: € 6.3 billion). This increase reflected growth in services and higher deliveries of 338 units (2020: 300 units), including the first H160.
For 2020, Airbus Helicopters’ revenues amounted to € 6.3 billion in 2020 (2019: € 6.0 billion). This increase reflected a favourable product mix effect despite lower deliveries of 300 units (2019: 332 units) and higher volume in services.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2
2.1 Operating and Financial Review 141 Airbus / Registration Document 2021. 
Airbus Defence and Space. 
The following table presents a breakdown of deliveries of Airbus Defence and Space by product type for the past three years.
(In units) 2021 2020 2019. 
A400M 8 9 14. 
A330 MRTT (Tanker) 5 4 7. 
Light & Medium aircraft 9 10 8. 
Telecom satellites 3 1 2. 
Total 25 24 31. 
Airbus Defence and Space’s revenues amounted to € 10.2 billion in 2021 (2020: € 10.4 billion). The decrease is mainly driven by Military Aircraft, partially offset by Space Systems.
For 2020, Airbus Defence and Space’s revenues amounted to € 10.4 billion in 2020 (2019: € 10.9 billion). The decrease was due to lower volume and the impact of the COVID-19 pandemic on business phasing. It also reflected the lower order intake in Space Systems in the prior years.
2.1.4.2 Cost of Sales. 
Cost of sales decreased by 3.9% from € 44.3 billion for 2020 to € 42.5 billion for 2021. It mainly reflects in 2021 continued cost containment and the release of COVID-related provisions while 2020 was impacted by charges recorded in response to the COVID-19 pandemic.
For 2020, cost of sales decreased by 26.2% from € 60.0 billion for 2019 to € 44.3 billion for 2020. This was driven by lower deliveries, also impacted by charges recorded as a result of the comprehensive review performed by the Company of its operational assets and liabilities in response to the COVID-19 pandemic, see “–2.1 Operating and Financial Review”.
2.1.4.3 Selling and Administrative Expenses. 
Selling and administrative expenses remained stable at € 2.1 billion for both 2021 and 2020.
For 2020, selling and administrative expenses decreased from € 6.1 billion for 2019 to € 2.1 billion for 2020. The decrease was mainly due to the € 3.6 billion penalties recognised in 2019, as a consequence of the final agreements reached with the French PNF, the UK SFO and the US DoS.
2.1.4.4 Research and Development Expenses. 
Research and development expenses decreased by 3.9%, from € 2.9 billion for 2020 to € 2.7 billion for 2021. In addition, an amount of € 152 million of development costs has been capitalised, mainly linked to Defence and Space programmes. See “– 2.1.2.2 Capitalised Development Costs”.
For 2020, research and development expenses decreased by 14.9%, from € 3.4 billion for 2019 to € 2.9 billion for 2020, mainly reflecting cash containment measures in response to the COVID-19 pandemic. In addition, an amount of € 101 million of development costs has been capitalised, mainly linked to Airbus programmes.
2.1.4.5 Other Income 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 € 393 million net as compared to € -1,326 million net for 2020. The increase includes the gain of € 122 million for the divestment of one of its sites in France to a 50% joint venture. In 2020, it included the COVIDrelated restructuring provision, see “–2.1 Operating and Financial Review”.
For 2020, other income and other expenses was € -1,326 million net as compared to € 14 million net for 2019. The decrease is driven by the restructuring provision recorded in 2020 in response to the COVID-19 pandemic, see “–2.1 Operating and Financial Review”.
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 € 116 million in share of profit from investments accounted for under the equity method and other income from investments as compared to € 152 million for 2020.
For 2020, the Company recorded € 152 million in share of profit from investments accounted for under the equity method and other income from investments as compared to € 303 million for 2019.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review 142 Airbus / Registration Document 2021 2.1.4.7 Interest Result. 
Interest result reflects the net of interest income and expense arising from financial assets and liabilities, including the interest expense on refundable advances provided by European governments to finance R&D activities. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 16: Total Financial Result”.
The Company recorded a net interest expense of € -246 million, as compared to € -271 million for 2020.
For 2020, the Company recorded a net interest expense of € -271 million, as compared to € -111 million for 2019. This was principally due to lower level of securities and higher financing liabilities due to the issuance of new bonds.
2.1.4.8 Other Financial Result. 
Other financial result includes the impact from the revaluation of financial instruments, the effect of foreign exchange valuation of monetary items and the unwinding of discounted provisions. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 16: Total Financial Result” and “– Note 25: Other Financial Assets and Other Financial Liabilities”.
Other financial result changed from € -349 million for 2020 to € -69 million for 2021. This is driven by the positive impact from the revaluation of certain equity investments, compensated by a negative impact from the revaluation of financial instruments. In 2020, it included the European governments’ refundable advances impact related to the A350 XWB programme.
For 2020, other financial result decreased from € -164 million for 2019 to € -349 million for 2020. This reflects the € -155 million European governments’ refundable advances impact mainly related to the A350 XWB programme and the net € -147 million related to Dassault Aviation financial instruments. The change in other financial result also includes a positive impact from the revaluation of financial instruments of € +43 million and foreign exchange valuation of monetary items of € +41 million.
2.1.4.9 Income Taxes. 
Income tax expense was € -853 million as compared to € -39 million for 2020, and corresponds to an effective income tax rate of 17%. The higher tax expense was mainly driven by the income before tax in 2021 of € 5,027 million as compared to the loss before tax in 2020 of € -1,130 million, partly compensated by a net release of deferred tax asset impairments mainly due to an updated business outlook in 2021 in comparison to deferred tax impairments in 2020. Management will continue to assess its tax contingencies going forward, whose outcome could result in further financial impacts.
For 2020, income tax expense was € -39 million as compared to € -2,389 million for 2019. The decrease was mainly driven by the loss before tax in 2020 (€ -1,130 million) as compared to the income before tax in 2019 (€ 1,064 million), and the nondeductibility of the penalties accounted for in the 2019 accounts next to more favourable impacts on tax risk updates.
Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 17: Income Taxes”.
2.1.4.10 Non-Controlling Interests. 
For 2021, loss for the period attributable to non-controlling interests was € -39 million, as compared to loss of € -36 million for 2020.
2.1.4.11 Profit for the Period Attributable to Equity Owners of the Parent (Net Income)
As a result of the factors discussed above, the Company recorded a net income of € 4,213 million for 2021, as compared to the net loss of € -1,133 million for 2020.
2.1.4.12 Earnings per Share. 
Basic earnings were € 5.36 per share in 2021, as compared to € -1.45 per share in 2020. The denominator used to calculate earnings per share was 785,326,074 shares (2020: 783,178,191), reflecting the weighted average number of shares outstanding during the year. In 2019, the Company reported basic earnings of € -1.75 per share, based on a denominator of 777,039,858 shares.
2021 2020 2019. 
Profit (Loss) for the period attributable to equity owners of the parent (Net income) € 4,213 million € (1,133) million € (1,362) million. 
Weighted average number of ordinary shares 785,326,074 783,178,191 777,039,858. 
Basic earnings per share € 5.36 € (1.45) € (1.75)


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2
2.1 Operating and Financial Review 143 Airbus / Registration Document 2021 2.1.5 Changes in Total Equity (Including Non-Controlling Interests)
The following table sets forth a summary of the changes in total equity for the period 1 January 2021 through 31 December 2021.
(In € million)
Balance at 1 January 2021 6,456. 
Profit for the period 4,174. 
Other comprehensive income (1,327) thereof foreign currency translation adjustments 197. 
Capital increase 115. 
Equity transactions (IAS 27) 10. 
Share-based payment (IFRS 2) 61. 
Change in treasury shares (3)
Balance at 31 December 2021 9,486. 
The number of shares issued as of 31 December 2021 was 786,083,690. Please refer to the “Airbus SE IFRS Consolidated Financial Statements – IFRS Consolidated Statements of Changes in Equity for the years ended 31 December 2021 and 2020” and to the “Notes to the IFRS Consolidated Financial Statements – Note 34: Total Equity”.
Diluted earnings were € 5.36 per share in 2021, as compared to € -1.45 per share in 2020. The denominator used to calculate diluted earnings per share was 785,902,000 (2020: 783,178,191). As there was a net loss in 2020 and 2019, the effect of potentially dilutive ordinary shares is anti-dilutive. In 2019, the Company reported diluted earnings of € -1.75 per share, based on a denominator of 777,039,858 shares, reflecting the weighted average number of shares outstanding during the year, adjusted to assume the conversion of all potential ordinary shares.
2021 2020 2019. 
Profit (Loss) for the period attributable to equity owners of the parent (Net income), adjusted for diluted calculation € 4,213 million € (1,133) million € (1,362) million. 
Weighted average number of ordinary shares (diluted)(1) 785,902,000 783,178,191 777,039,858. 
Diluted earnings per share € 5.36 € (1.45) € (1.75) (1) In 2021, dilution assumes conversion of all potential ordinary shares.
For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 18: Earnings per Share”.
2.1.5.1 Cash Flow Hedge Related Impact on AOCI. 
As of 31 December 2021, the notional amount of the Company’s portfolio of outstanding Cash Flow hedges amounted to US$ 88.3 billion, hedged against the euro and the pound sterling. The year-end mark to market valuation of this portfolio resulted in a negative pre-tax accumulated other comprehensive income (“AOCI”) valuation change of € -5.1 billion as of 31 December 2021 compared to 31 December 2020, based on a closing rate of €/US$ 1.13 as compared to a positive pre-tax AOCI valuation change of € 3.7 billion as of 31 December 2020 compared to 31 December 2019, based on a closing rate of €/US$ 1.23. For further information on the measurement of the fair values of financial instruments, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 37: Financial Instruments”.
Positive pre-tax mark to market values of Cash Flow hedges are included in other financial assets, while negative pre-tax mark to market values of Cash Flow hedges are included in other financial liabilities. Year-to-year changes in the mark to market value of effective Cash Flow hedges are recognised as adjustments to AOCI. These adjustments to AOCI are net of corresponding changes to deferred tax assets (for Cash Flow hedges with negative mark to market valuations) and deferred tax liabilities (for Cash Flow hedges with positive mark to market valuations).


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review 144 Airbus / Registration Document 2021. 
The following graphic presents the Cash Flow hedge related movements in AOCI over the past three years. The mark to market of the backlog is not reflected in the accounts whereas the mark to market of the hedge book is reflected in AOCI.
CASH FLOW HEDGE RELATED MOVEMENTS IN AOCI IN € MILLION (BASED ON YEAR-END EXCHANGE RATES)(1) -86 341 -4,779 255 -3,456 -2,530 1,323 -3,360 830. 
OCI Net Asset. 
Net Deferred Taxes. 
Net Equity OCI 31 December 2019: US$ 1.12 31 December 2020: US$ 1.23 31 December 2021: US$ 1.13 (1) Cash Flow hedge in AOCI in total equity (including non-controlling interests).
As a result of the negative change in the fair market valuation of the Cash Flow hedge portfolio in 2021, AOCI amounted to a net liability of € -4.8 billion for 2021, as compared to a net asset of € +0.3 billion for 2020. The corresponding € +1.4 billion tax effect led to a net deferred tax asset of € 1.3 billion as of 31 December 2021 as compared to a net deferred tax liability of € -0.1 billion as of 31 December 2020.
For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 37.5: Financial Instruments – Derivative Financial Instruments and Hedge Accounting Disclosure”.
2.1.5.2 Foreign Currency Translation Adjustment Impact on AOCI. 
The € 197 million currency translation adjustment related impact on AOCI in 2021 mainly reflects the effect of the variations of the US dollar and the pound sterling.
2.1.6 Liquidity and Capital Resources. 
The Company’s objective is to generate sufficient operating Cash Flow in order to invest in its growth and future expansion, honour the Company’s dividend policy and maintain financial flexibility while retaining its credit rating and competitive access to capital markets.
The Company defines its consolidated net cash position as the sum of (i) cash and cash equivalents and (ii) securities, minus (iii) financing liabilities (all as recorded in the Consolidated Statements of Financial Position). Net cash position is an alternative performance measure and an indicator that allows the Company to measure its ability to generate sufficient liquidity to invest in its growth and future expansion, honour its dividend policy and maintain financial flexibility. The net cash position as of 31 December 2021 was € 7.6 billion (€ 4.3 billion as of 31 December 2020).
As of 31 December 2021, the total liquidity amounted to € 28.7 billion and it was secured by the € 22.7 billion gross cash and the € 6 billion revolving syndicated credit facility, the maturity of which has been extended to 21 October 2024. The Company can raise further liquidity through its € 12 billion Euro Medium Term Note programme (of which € 9 billion have already been issued), its € 11 billion Negotiable European Commercial Paper programme, its € 4 billion Euro Commercial Paper programme and its $ 3 billion US commercial paper programme. See “– Risk Factors – 1. Financial Market Risks – Liquidity” and “– 2.1.6.3 Financing Liabilities”. Please also refer to the “Notes to the IFRS Consolidated Financial Statements – Note 36: Net Cash” and “– Note 37.1: Financial Instruments – Financial Risk Management”. The factors affecting the Company’s cash position, and consequently its liquidity risk, are discussed below.
For information on Airbus SE’s credit ratings, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 35: Capital Management”.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2
2.1 Operating and Financial Review 145 Airbus / Registration Document 2021 2.1.6.1 Cash Flows. 
The Company generally finances its manufacturing activities and product development programmes, and in particular the development of new commercial aircraft, through a combination of flows generated by operating activities, customer advances, risk-sharing partnerships with subcontractors and European governments’ refundable advances. In addition, the Company’s military activities benefit from government-financed research and development contracts. If necessary, the Company may raise funds in the capital markets.
The following table sets forth the variation of the Company’s consolidated net cash position over the periods indicated.
(In € million) 2021 2020 2019. 
Net Cash position at 1 January 4,312 12,534 13,281. 
Initial application impact of IFRS 16 0 0 (1,352)
Gross Cash Flow from operations(1) 4,078 3,061 3,391. 
Changes in other operating assets and liabilities (working capital)(2) 984 (8,197) 2,176. 
Cash used for investing activities(3) (1,551) (2,226) (2,092) thereof industrial capital expenditures (1,928) (1,759) (2,340)
Free Cash Flow(4) 3,511 (7,362) 3,475 thereof M&A transactions (32) (551) (92)
Free Cash Flow before M&A(5) 3,543 (6,811) 3,567 thereof Cash Flow from customer financing (net) 28 124 58. 
Free Cash Flow before customer financing 3,483 (7,486) 3,417. 
Free Cash Flow before M&A and customer financing 3,515 (6,935) 3,509. 
Cash distribution to shareholders / non-controlling interests 0 0 (1,280)
Contribution to plan assets of pension schemes(6) (533) (314) (1,752)
Changes in capital and non-controlling interests 138 89 194. 
Change in treasury shares / share buyback (22) (4) (31)
Others 237 (631) (1)
Net Cash position at 31 December 7,643 4,312 12,534 (1) Represents cash provided by operating activities, excluding (i) changes in other operating assets and liabilities (working capital), (ii) contribution to plan assets of pension schemes and (iii) realised foreign exchange results on treasury swaps (€ 27 million in 2021, € 70 million in 2020, € 102 million in 2019). It is an alternative performance measure and an indicator used to measure its operating cash performance before changes in other operating assets and liabilities (working capital). (2) Including customer financing, excluding some perimeter change impacts from changes in consolidation. (3) Does not reflect change in securities (net investment of € -1,186 million in 2021, net disposal of € 6,303 millio in 2020, net investment of € -397 million in 2019), which are classified as cash and not as investments solely for the purposes of this net cash presentation. Excluding bank activities. (4) Does not reflect change of securities, change in cash from changes in consolidation, contribution to plan assets of pension schemes and realised foreign exchange results on treasury swaps. Excluding bank activities. Free Cash Flow is an alternative performance measure and indicator that reflects the amount of Cash Flow generated from operations after cash used in investing activities. (5) Free Cash Flow before M&A refers to Free Cash Flow adjusted for net proceeds from disposals and acquisitions. It is an alternative performance measure and indicator that reflects Free Cash Flow excluding those Cash Flows from the disposal and acquisition of businesses. (6) In 2020, thereof € 331 million contributions for retirement and deferred compensation plans.
The net cash position as of 31 December 2021 was € 7.6 billion, a 77.2% increase from 31 December 2020. Please see further details below.
Gross Cash Flow from Operations. 
Gross Cash Flow from operations is an alternative performance measure and an indicator used by the Company to measure its operating cash performance before changes in working capital. Gross Cash Flow from operations increased to € 4.1 billion for 2021, which mainly reflects higher EBIT Adjusted and includes a € 0.6 billion provision consumption related to the restructuring plan.
Changes in Other Operating Assets and Liabilities (Working Capital)
Changes in other operating assets and liabilities (working capital), comprises inventories, trade receivables, contract assets and contract liabilities (including customer advances), trade liabilities, and other assets and other liabilities. They resulted in a positive working capital variation of € 1.0 billion for 2021, versus a negative impact of € -8.2 billion for 2020.
In 2021, the contributors to the positive working capital variation from 2020 to 2021 were the change in trade liabilities (€ +5.7 billion), which reflected the production adaptation plan set out in April 2020 in response to the COVID-19 pandemic, the change in other assets and liabilities (€ +4.5 billion), mainly due to the negative impact of the payment of penalties in 2020, and the change in inventories (€ +2.3 billion), which reflected


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review 146 Airbus / Registration Document 2021 the reduction in inventory in 2021, with the deliveries of the last A380 aircraft and the reduction in the inventory of widebody aircraft. This was partially offset by the change in contract assets and contract liabilities (€ -3.2 billion).
European governments’ refundable advances. As of 31 December 2021, 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 2021 as compared to 2020. 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 € -1.6 billion for 2021, to € -2.2 billion for 2020, and to € -2.1 billion for 2019.
Capital expenditure. Capital expenditure includes productrelated 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 € -1.9 billion for 2021, € -1.8 billion for 2020 and € -2.3 billion for 2019.
In 2020, the decrease of capital expenditure reflected the prioritisation of projects.
M&A transactions. In 2021, there were no significant M&A transactions.
In 2020, the € -0.6 billion figure mostly relates to the acquisition of Bombardier’s additional 29.64% shares in Airbus Canada.
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”.
Free Cash Flow. 
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 that is important in order 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 € 3.5 billion for 2021 as compared to € -7.4 billion for 2020 and € 3.5 billion for 2019.
Free Cash Flow before M&A. 
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. 
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.
Cash Distribution to Shareholders / Non-Controlling Interests. 
For the fiscal year 2021, the Company’s Board of Directors proposes a cash distribution to shareholders of € 1.50 per share.
Given the global business environment, there was no cash distribution to shareholders proposed for the fiscal year 2020. This decision aimed at strengthening the Company’s financial resilience by protecting the net cash position and supporting its ability to adapt as the situation evolved.
On 23 March 2020, the Company decided to withdraw the € -1.3 billion cash distribution to shareholders initially proposed for the fiscal year 2019, in response to the COVID-19 pandemic. Consequently, there was no cash distribution to shareholders in 2020.
Contribution to Plan Assets of Pension Schemes. 
The cash outflows of € -0.5 billion, € -0.3 billion and € -1.8 billion in 2021, 2020 and 2019, respectively, primarily relate to contributions to the Contractual Trust Arrangement (“CTA”) in Germany for allocating and generating pension plan assets in accordance with IAS 19, as well as to pension schemes and plan assets in the UK, Canada and to French benefit funds. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 31: Post-Employment Benefits”.
Change in Treasury Shares / Share Buyback. 
Change in treasury shares amounted to € -22 million for 2021, to € -4 million for 2020 and to € -31 million for 2019. As of 31 December 2021 and 2020, the Company held 454,735 and 432,875 treasury shares, respectively.
2.1.6.2 Cash and Cash Equivalents and Securities. 
The cash and cash equivalents and securities portfolio of the Company is invested mainly in non-speculative financial instruments, mostly highly liquid, such as certificates of deposit, overnight deposits, commercial papers, other money market instruments and bonds. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 37.1: Financial Instruments – Financial Risk Management”.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2
2.1 Operating and Financial Review 147 Airbus / Registration Document 2021 2.1.6.3 Financing Liabilities. 
The outstanding balance of the Company’s consolidated financing liabilities decreased from € 17.1 billion as of 31 December 2020 to € 15.0 billion as of 31 December 2021. The decrease is due to the pre-payment of a US$1 billion bond issued on 9 April 2013 in the US institutional market with an original maturity of ten years and the repayment of € 1.0 billion exchangeable bonds to be convertible into Dassault Aviation shares issued on 14 June 2016. For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 36.3: Net Cash – Financing Liabilities”.
Evolution of Airbus Gross Exposure during 2021 in US$ million -366 -84 413 524 339 31 December 2020. 
Additions. 
Disposals. 
Amortisation 31 December 2021. 
Airbus gross customer financing exposure as of 31 December 2021 is distributed directly over 19 aircraft, operated by approximately seven airlines. In addition, the level of exposure may include other aircraft-related assets, such as spare parts.
Over the last three years (2019 to 2021), the average number of aircraft delivered in respect of which direct financing support has been provided by Airbus amounted to around 1% of the average number of deliveries over the same period, i.e. seven aircraft financed per year out of 680 deliveries per year on average.
Airbus Helicopters’ gross customer financing exposure amounted to € 58 million as of 31 December 2021. This exposure is distributed over 14 helicopters, operated by approximately six companies.
For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 27: Sales Financing Transactions”.
2.1.6.4 Sales Financing. 
The Company favours cash sales and encourages independent financing by customers, in order to avoid retaining credit or asset risk in relation to delivered products. However, in order to support product sales, primarily at Airbus and Airbus Helicopters, the Company may agree to participate in the financing of customers, on a case-by-case basis, directly or through guarantees provided to third parties.
The financial markets remain unpredictable, which may cause the Company to increase its future outlays in connection with customer financing of commercial aircraft and helicopters, mostly through finance leases and secured loans and if deemed necessary through operating lease structures. Nevertheless, the Company intends to keep the amount as low as possible.
Dedicated and experienced teams structure such financing transactions and closely monitor total finance and asset value exposure of the Company and its evolution in terms of quality, volume and intensity of cash requirements. The Company aims to structure all financing it provides to customers in line with market-standard contractual terms so as to facilitate any subsequent sale or reduction of such exposure.
The Company has a partially automated cross-border and domestic cash pooling system in all countries with major group presence and whenever country regulations allow such practice (among others, this includes mainly France, Germany, Spain, the Netherlands, the UK and the US). The cash pooling system enhances management’s ability to assess reliably and instantaneously the cash position of each subsidiary within the Company and enables management to allocate cash optimally within the Company depending upon shifting shortterm needs.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.2 Financial Statements 148 Airbus / Registration Document 2021 2.2 Financial Statements 2.3 Statutory Auditor Fees. 
The IFRS Consolidated Financial Statements and the Company Financial Statements of Airbus SE for the year ended 31 December 2021, together with the related notes, appendices and independent auditors’ report, shall be deemed to be incorporated in and form part of this Registration Document.
In addition, the following documents shall be deemed to be incorporated by reference in and form part of this Registration Document: – The IFRS Consolidated Financial Statements and the Company Financial Statements of Airbus SE for the year ended 31 December 2020, together with the related notes, appendices and independent auditors’ report, as incorporated by reference in the Registration Document filed in English with the AFM on 26 March 2021 without prior approval and filed in English with the Chamber of Commerce of The Hague. – The IFRS Consolidated Financial Statements and the Company Financial Statements of Airbus SE for the year ended 31 December 2019, together with the related notes, appendices and independent auditors’ report, as incorporated by reference in the Registration Document filed in English with the AFM on 23 March 2020 without prior approval and filed in English with the Chamber of Commerce of The Hague.
Copies of the AFM-filed documents are available free of charge upon request in English at the registered office of the Company and on www.airbus.com (Investors > Financial Results & Annual Reports).
The above-mentioned Financial Statements are also available in English for inspection at the Chamber of Commerce of The Hague.
The Company confirms that the reports of the auditors incorporated by reference herein have been accurately reproduced and that as far as the Company is aware and is able to ascertain from the information provided by the auditors, no facts have been omitted which would render such reports inaccurate or misleading.
Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 39: Auditor Fees” 2.4 Information Regarding the Statutory Auditors. 
Date of first appointment Expiration of current term of office(1)
Ernst & Young Accountants LLP Boompjes 258 – 3011 XZ Rotterdam Postbus 488 – 3000 AL Rotterdam The Netherlands Represented by N.M. Pul 28 April 2016 12 April 2022 (1) A resolution will be submitted to the Annual General Meeting of Shareholders in 2022, in order to appoint Ernst & Young Accountants LLP as the Company’s auditors for the 2022 financial year.
Ernst & Young Accountants LLP has a licence from the AFM to perform statutory audits for Public Interest Entities and its representative is member of the NBA (Koninklijke Nederlandse Beroepsorganisatie van Accountants – the Royal Netherlands Institute of Chartered Accountants). The NBA is the professional body for accountants in the Netherlands.


2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2
149 Airbus / Registration Document 2021


3. 
Chapter Chapter 150 Airbus / Registration Document 2021


3. 
General Description of the Company and its Share Capital 3.1 General Description of the Company 152 3.1.1 Commercial and Corporate Names, Seat and Registered Office 152 3.1.2 Legal Form 152 3.1.3 Governing Laws and Disclosures 152 3.1.4 Date of Incorporation and Duration of the Company 153 3.1.5 Objects of the Company 154 3.1.6 Commercial and Companies Registry 154 3.1.7 Inspection of Corporate Documents 154 3.1.8 Financial Year 154 3.1.9 Allocation and Distribution of Income 154 3.1.10 General Meetings 155 3.1.11 Disclosure of Holdings 156 3.1.12 Mandatory Disposal 157 3.1.13 Mandatory Offers 158 3.2 General Description of the Share Capital 159 3.2.1 Issued Share Capital 159 3.2.2 Authorised Share Capital 159 3.2.3 Modification of Share Capital or Rights Attached to the Shares 159 3.2.4 Securities Granting Access to the Company’s Share Capital 160 3.2.5 Changes in the Issued Share Capital 160 3.3 Shareholdings and Voting Rights 161 3.3.1 Shareholding Structure at the End of 2021 161 3.3.2 Relationships with Principal Shareholders 162 3.3.3 Form of Shares 165 3.3.4 Changes in the Shareholding of the Company 165 3.3.5 Persons Exercising Control over the Company 165 3.3.6 Simplified Group Structure Chart 165 3.3.7 Purchase by the Company of its Own Shares 167 3.4 Dividends 169 3.4.1 Dividends and Cash Distributions Paid 169 3.4.2 Dividend Policy of the Company 169 3.4.3 Unclaimed Dividends 169 3.4.4 Taxation 169 151 Airbus / Registration Document 2021


3. General Description of the Company and its Share Capital / 3.1 General Description of the Company 152 Airbus / Registration Document 2021 3.1 General Description of the Company 3.1.1 Commercial and Corporate Names, Seat and Registered Office. 
Commercial Name: Airbus. 
Statutory Name: Airbus SE. 
Registered Office: Mendelweg 30, 2333 CS Leiden, The Netherlands. 
Seat (statutaire zetel): Amsterdam. 
Tel: +31 (0)71 5245 600. 
Fax: +31 (0)71 5232 807 3.1.2 Legal Form. 
The Company is a European public company (Societas Europaea), with its corporate seat in Amsterdam, the Netherlands and registered with the Dutch Commercial Register (Handelsregister) under number 24288945. The Company’s legal identifier (LEI) is MIN079WLOO247M1IL051. As a company operating worldwide, the Company is subject to, and operates under, the laws of each country in which it conducts business.
3.1.3 Governing Laws and Disclosures. 
The Company is governed by the laws of the Netherlands (in particular Book 2 of the Dutch Civil Code and the Dutch Corporate Governance Code) and by its Articles of Association (the “Articles of Association”).
The Company is subject to various legal provisions of the Dutch Financial Supervision Act (Wet op het financieel toezicht) (the “WFT”). In addition, given the fact that its shares are admitted for trading on a regulated market in France, Germany and Spain, the Company is subject to certain laws and regulations in these three jurisdictions. A summary of the main regulations applicable to the Company in relation to information to be made public in these three jurisdictions, as well as the Netherlands, is set out below.
3.1.3.1 Periodic Disclosure Obligations. 
Pursuant to Directive 2004/109/EC on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market (as amended, the “Transparency Directive”), the Company is required to disclose certain periodic and ongoing information (the “Regulated Information”).
Pursuant to the Transparency Directive, the Company must disseminate such Regulated Information throughout the European Community in a manner ensuring fast access to such information on a non-discriminatory basis. For this purpose, the Company may use a professional service provider (wire). In addition, Regulated Information must be filed at the same time with the relevant competent market authority. The Company must then ensure that Regulated Information remains publicly available for at least ten years.
Finally, Regulated Information must be made available for central storage by a mechanism that is officially designated by the Company’s home Member State.
Dutch Regulations. 
For the purpose of the Transparency Directive, supervision of the Company is effected by the Member State in which it maintains its corporate seat, which is the Netherlands. The competent market authority that assumes final responsibility for supervising compliance by the Company in this respect is the AFM.
Under the Transparency Directive as implemented under Dutch law, the Company is subject to a number of periodic disclosure requirements, such as: – publishing an Annual Financial Report, together with an audit report drawn up by the Statutory Auditors, within four months after the end of each financial year; and – publishing a semi-Annual Financial Report, within three months after the end of the first six months of the financial year.
In addition, the Company must file with the AFM, within five days following their adoption by the Company’s shareholders, its audited annual Financial Statements (including the consolidated ones), the management report, the Auditors’ report and other information related to the Financial Statements.
French Regulations. 
In accordance with the requirement set forth in the Transparency Directive to disseminate Regulated Information throughout the European Community, the Company is required to provide simultaneously in France the same information as that provided abroad.


3. General Description of the Company and its Share Capital / 3
3.1 General Description of the Company 153 Airbus / Registration Document 2021. 
German Regulations. 
Due to the listing of the Company’s shares in the Prime Standard sub-segment of the Regulated Market (regulierter Markt) of the Frankfurt Stock Exchange, the Company is subject to certain post-listing obligations as described below. The Company is included inter alia in the selection index DAX of Deutsche Börse AG.
Pursuant to the Exchange Rules (Börsenordnung) of the Frankfurt Stock Exchange, the Company is required to publish consolidated annual and semi-annual Financial Statements as well as consolidated quarterly reports which may be prepared in English only. In addition, pursuant to the Exchange Rules, the Company is required to publish a financial calendar at the beginning of each financial year in German and English. The Company is also required to hold an analysts’ meeting at least once per year in addition to the press conference regarding the annual Financial Statements.
Spanish Regulations. 
In accordance with the requirement set forth in the Transparency Directive to disseminate Regulated Information throughout the European Community, the Company is required to provide simultaneously in Spain the same information as that provided abroad.
3.1.3.2 Ongoing Disclosure Obligations. 
Pursuant to the Transparency Directive, Regulated Information includes in particular “inside information” as defined pursuant to Article 7 of EU Regulation No. 596-2014 on market abuse (the “Market Abuse Regulation” or “MAR”). Such information must be disseminated throughout the European Community (see introduction to Section “– 3.1.3.1 Periodic Disclosure Obligations”).
Inside information consists of information of a precise nature which has not been made public, relating, directly or indirectly, to one or more issuers or to one or more financial instruments and which, if it were made public, would be likely to have a significant effect on the prices of those financial instruments or on the price of related derivative financial instruments.
Inside information must be disclosed to the markets as soon as possible. However, an issuer may under its own responsibility delay the public disclosure of inside information so as not to prejudice its legitimate interests provided that such delay would not be likely to mislead the public and provided that the issuer is able to ensure the confidentiality of that information.
Dutch Regulations. 
Following the implementation of the Transparency Directive into Dutch law, the Company must publicly disclose Regulated Information and also file Regulated Information with the AFM, which will keep all relevant Regulated Information in a publicly available register. The Company will, whenever it discloses inside information pursuant to applicable mandatory law as part of the Regulated Information, disclose and disseminate throughout the European Community any such information.
Under Dutch law, the Company must also publish any change in the rights attached to its shares, as well as any changes in the rights attached to any rights issued by the Company to acquire Airbus shares.
French Regulations. 
Any inside information as defined above will be disclosed in France by means of dissemination throughout the European Community, as it is organised under Dutch law implementing the Transparency Directive so as to provide simultaneously in France equivalent information to that provided abroad.
German Regulations. 
Any inside information as defined above will be disclosed in Germany by means of dissemination throughout the European Community, as it is organised under Dutch law implementing the Transparency Directive so as to provide simultaneously in Germany equivalent information to that provided abroad.
Spanish Regulations. 
Any inside information as defined above will be disclosed simultaneously in Spain by notifying it to the CNMV which shall, in turn, make it public through its webpage.
Any other information of a financial or corporate nature which the Company is required by law to make public in Spain or which the Company deems necessary to disclose to investors shall be also notified to the CNMV which shall also publish it through its webpage.
Pursuant to the Spanish securities rules and regulations, the Company is also required to make available to shareholders and file with the CNMV a Corporate Governance Report in the Spanish language or in a language customary in the sphere of international finance on an annual basis.
3.1.4 Date of Incorporation and Duration of the Company. 
The Company was incorporated on 29 December 1998 for an unlimited duration.


3. General Description of the Company and its Share Capital / 3.1 General Description of the Company 154 Airbus / Registration Document 2021 3.1.7 Inspection of Corporate Documents 3.1.5 Objects of the Company. 
Pursuant to its Articles of Association, the objects of the Company are to hold, co-ordinate and manage participations or other interests and to finance and assume liabilities, provide for security and/or guarantee debts of legal entities, partnerships, business associations and undertakings that are involved in: – the aeronautic, defence, space and/or communication industry; or – activities that are complementary, supportive or ancillary thereto.
3.1.6 Commercial and Companies Registry. 
The Company is registered with the Dutch Commercial Register (Handelsregister) under number 24288945.
The Articles of Association are available for inspection in Dutch at the Chamber of Commerce.
In France, the Articles of Association are available at the operational headquarters of the Company (2, rond-point Emile Dewoitine, 31700 Blagnac, France, Tel.: +33 5 81 31 75 00).
In Germany, the Articles of Association are available at the Munich office of the Company (Willy-Messerschmitt-Strasse 1, 82024 Ottobrunn, Germany, Tel.: +49 89 60 70).
In Spain, the Articles of Association are available at the CNMV and at the Madrid office of the Company (Avenida de Aragón 404, 28022 Madrid, Spain, Tel.: +34 91 585 70 00).
The documents incorporated by reference into this Registration Document are available on www.airbus.com.
3.1.8 Financial Year. 
The financial year of the Company starts on 1 January and ends on 31 December of each year.
3.1.9 Allocation and Distribution of Income 3.1.9.1 Dividends. 
The Board of Directors shall determine which part of the profits of the Company shall be attributed to reserves. The remaining distributable profit shall be at the disposal of the shareholders’ meeting.
The shareholders’ meeting may resolve (if so proposed by the Board of Directors) that all or part of a distribution on shares shall be paid in Airbus shares or in the form of assets as opposed to cash.
The declaration of a dividend, an interim dividend or another distribution to the shareholders shall be made known to them within seven days after such declaration. Declared dividends, interim dividends or other distributions shall be payable on such date(s) as determined by the Board of Directors.
Dividends, interim dividends and other distributions on shares shall be paid by bank transfer to the bank or giro accounts designated in writing to the Company by, or on behalf of, shareholders at the latest 14 days after their announcement.
The persons entitled to a dividend, interim dividend or other distribution shall be the shareholders as at a record date to be determined by the Board of Directors for that purpose, which date may not be a date prior to the date on which such dividend, interim dividend or other distribution is declared.
3.1.9.2 Liquidation. 
In the event of the dissolution and liquidation of the Company, the assets remaining after payment of all debts and liquidation expenses shall be distributed amongst the holders of the shares in proportion to their shareholdings.


3. General Description of the Company and its Share Capital / 3
3.1 General Description of the Company 155 Airbus / Registration Document 2021 3.1.10 General Meetings 3.1.10.1 Calling of Meetings. 
Shareholders’ meetings are held as often as the Board of Directors deems necessary, when required under the Dutch Civil Code (as a result of a decrease of the Company’s equity to or below half of the Company’s paid up and called up capital) or upon the request of shareholders holding, individually or together, at least 10% of the total issued share capital of the Company. The AGM of Shareholders of the Company is held within six months of the end of the financial year.
The Board of Directors must give notice of shareholders’ meetings through publication of a notice on the Company’s website (www. airbus.com), which will be directly and permanently accessible until the shareholders’ meeting. The Company must comply with the statutory rules providing for a minimum convening period, which currently require at least 42 days of notice. The convening notice must state the items required under Dutch law.
Shareholders’ meetings are held in Amsterdam, The Hague, Rotterdam or Haarlemmermeer (Schiphol Airport). The Board of Directors may decide that shareholders’ meetings may be attended by means of electronic or video communication devices from the locations mentioned in the convening notice.
The Board of Directors must announce the date of the AGM of Shareholders at least ten weeks before the Meeting. A matter which one or more shareholders or other parties with meeting rights collectively representing at least the statutory threshold (which is currently 3% of the issued share capital) have requested in writing to be put on the agenda for a General Meeting of Shareholders shall be included in the convening notice or shall be announced in the same fashion, if the substantiated request or a proposal for a resolution is received by the Company no later than the 60th day before the general meeting. When exercising the right to put a matter on the agenda for a General Meeting of Shareholders, the respective shareholder or shareholders are obliged to disclose their full economic interest to the Company. The Company must publish such disclosure on its website.
A request as referred to in the preceding paragraph may only be made in writing. The Board of Directors can decide that in “writing” is understood to include a request that is recorded electronically.
3.1.10.2 Right to Attend Shareholders’ Meetings. 
Each holder of one or more shares may attend shareholders’ meetings, either in person or by written proxy, speak and vote according to the Articles of Association. See “– 3.1.10.4 Conditions of Exercise of Right to Vote”. However, under (and subject to the terms of) the Articles of Association these rights may be suspended under certain circumstances. A shareholder, or another person who has the right to attend a shareholders’ meeting, can be represented by more than one proxy holder, provided that only one proxy holder can exercise the rights attached to each share.
The persons who have the right to attend and vote at shareholders’ meetings are those who are on record in a register designated for that purpose by the Board of Directors on the registration date referred to in the Dutch Civil Code which is currently the 28th day prior to the day of the shareholders’ meeting (the “Registration Date”), irrespective of who may be entitled to the shares at the time of that meeting.
As a prerequisite to attending the shareholders’ meeting and to casting votes, the Company, or alternatively an entity or person so designated by the Company, should be notified in writing by each holder of one or more shares and those who derive the aforementioned rights from these shares, not earlier than the Registration Date, of the intention to attend the meeting in accordance with the relevant convening notice.
Shareholders holding their Company shares through Euroclear France S.A. who wish to attend general meetings will have to request from their financial intermediary or accountholder an admission card and be given a proxy to this effect from Euroclear France S.A. in accordance with the relevant convening notice. For this purpose, a shareholder will also be able to request that its shares be registered directly (and not through Euroclear France S.A.) in the register of the Company. However, only shares registered in the name of Euroclear France S.A. may be traded on stock exchanges.
In order to exercise their voting rights, the shareholders will also be able, by contacting their financial intermediary or accountholder, to give their voting instructions to Euroclear France S.A. or to any other person designated for this purpose, as specified in the relevant convening notice.
Pursuant to its Articles of Association, the Company may provide for electronic means of attendance, speaking and voting at the shareholders’ meetings in such circumstances and subject to such conditions as determined by the Board of Directors.
3.1.10.3 Majority and Quorum. 
All resolutions are adopted by means of a simple majority of the votes cast except when a qualified majority is prescribed by the Articles of Association or by Dutch law. No quorum is required for any shareholders’ meeting to be held except as required under applicable law for a very limited number of resolutions of an extraordinary nature. Dutch law requires a special majority for the passing of certain resolutions: inter alia, capital reduction, exclusion of pre-emption rights in connection with share issues, statutory mergers or statutory de-mergers; the passing of such resolutions requires a majority of two-thirds of the votes cast if 50% of the share capital with voting rights is not present at the shareholders’ meeting (or otherwise a simple majority). In addition, resolutions to amend the Articles of Association or to dissolve the Company may only be adopted with a majority of at least two-thirds of the valid votes cast at a shareholders’ meeting, whatever the quorum present at such meeting, and resolutions to amend certain provisions of the Articles of Association may only be adopted with a majority of at least 75% of the valid votes cast at a shareholders’ meeting, whatever the quorum present at such meeting.


3. General Description of the Company and its Share Capital / 3.1 General Description of the Company 156 Airbus / Registration Document 2021 3.1.10.4 Conditions of Exercise of Right to Vote. 
In all shareholders’ meetings, each shareholder has one vote in respect of each share it holds. The major shareholders of the Company – as set forth in “– 3.3.2 Relationships with Principal Shareholders” – do not enjoy different voting rights from those of the other shareholders.
A shareholder whose shares are subject to a pledge or usufruct shall have the voting rights attaching to such shares unless otherwise provided by law or by the Articles of Association or if, in the case of a usufruct, the shareholder has granted voting rights to the usufructuary. Pursuant to the Articles of Association and subject to the prior consent of the Board of Directors, a pledgee of shares in the Company may be granted the right to vote in respect of such pledged shares.
According to the Articles of Association, no vote may be cast at the General Meeting on a share that is held by the Company or a subsidiary, nor for a share in respect of which one of them holds the depository receipts. Usufructuaries and pledgees of shares that are held by the Company or its subsidiaries are, however, not excluded from their voting rights, in case the right of usufruct or pledge was vested before the share was held by the Company or its subsidiary.
3.1.11 Disclosure of Holdings. 
Pursuant to the WFT, any person who, directly or indirectly, acquires or disposes of an (actual or deemed) interest in the capital, voting rights or gross short position of the Company must immediately give written notice to the AFM by means of a standard form, if, as a result of such acquisition or disposal, the percentage of capital interest or voting rights held by such person meets, exceeds or falls below the following thresholds: 3%, 5%, 10%, 15%, 20%, 25%, 30%, 40%, 50%, 60%, 75% and 95%. Any person whose interest in the capital, voting rights or gross short position in the Company meets, exceeds or falls below one or several of the above-mentioned thresholds due to a change in the Company’s outstanding capital, or in voting rights attached to the shares as notified to the AFM by the Company, should notify the AFM no later than the fourth trading day after the AFM has published the notification by the Company. Among other things, the Company is required to notify the AFM immediately if its outstanding share capital or voting rights have changed by 1% or more since the Company’s previous notification. Additional disclosure and/or publication obligations apply under European regulations for net short positions in respect of the Company.
If at the end of a calendar year the composition of a shareholder’s holding differs from its previous disclosure as a result of the conversion of certain types of securities or following the exercise of rights to acquire voting rights, this shareholder must then provide an update of its previous disclosure within four weeks of the end of each calendar year by giving written notice thereof to the AFM. The disclosures are published by the AFM on its website (www.afm.nl).
Pursuant to the Articles of Association, shareholders must notify the Company when meeting or crossing the thresholds above. The Articles of Association also contain disclosure obligations for shareholders that apply when their interests in the Company reach or cross certain thresholds.
Under the Articles of Association, the disclosure obligations of shareholders are enhanced in several ways beyond what is required under the WFT, including by requiring the disclosure of additional information, tying the disclosure obligations to a broader range of interests in the capital or voting rights of the Company and by requiring a shareholder to notify the Company if his or her interest reaches, exceeds or falls below the Mandatory Disposal Threshold (as defined below) or if the interest of a shareholder (alone or a member of a concert) which is above such Mandatory Disposal Threshold changes in its composition, nature and/or size.
Failure to comply with the legal obligation to notify a change in shareholding under the WFT is a criminal offence punishable by criminal and administrative penalties as well as civil law penalties, including the suspension of voting rights. Failure to comply with a notification under the Articles of Association can lead to a suspension of meeting and voting rights.
Disclosure Requirements for Members of the Board of Directors and the Executive Committee. 
Disclosure of Holdings. 
In addition to the requirements under the WFT regarding the disclosure of holdings in case the specified thresholds are met or exceeded or if holdings fall below these thresholds, Members of the Board of Directors must report to the AFM the number of shares in the Company and attached voting rights(1) held by him or an entity controlled by him, within two weeks following his appointment as Director, whether or not such shareholdings meet or exceed any of the specified thresholds. Subsequently, any Member of the Board of Directors is required to notify the AFM of any changes in such number of shares in the Company and attached voting rights.
(1) In this context, the term “shares” also includes for example depositary receipts for shares and rights resulting from an agreement to acquire shares or depositary receipts for shares, specifically call options, warrants, and convertible bonds. Equally, the term “voting rights” also includes actual or contingent rights to voting rights (e.g., embedded in call options, warrants or convertible bonds).


3. General Description of the Company and its Share Capital / 3
3.1 General Description of the Company 157 Airbus / Registration Document 2021. 
Disclosure of Transactions Carried Out on Any Securities Issued by the Company. 
Based on the Market Abuse Regulation, certain persons discharging managerial or supervisory responsibilities within the Company as well as persons closely associated with them (together “Insiders”, as defined below), are required to notify the Company and the AFM within three trading days of all transactions conducted for their own account involving shares of the Company, or derivatives or other financial instruments related to such shares, unless the aggregate amount of such transactions does not exceed € 5,000 in respect of all transactions in a calendar year.
“Insiders” for the Company include (i) Members of the Board of Directors and the Executive Committee of the Company as well as certain other senior executives who are not members of these bodies and who have regular access to inside information relating directly or indirectly to the Company and power to take managerial decisions affecting the future developments and business prospects of the Company, (ii) persons closely associated with any person mentioned under category (i) (including their spouses, life partners or any partner considered by national law as equivalent to the spouse, dependent children and other relatives who have shared the same household), and (iii) legal entities, trusts or partnerships whose managerial responsibilities are discharged by any person referred to in categories (i) or (ii) or which are directly or indirectly controlled by such a person, or that have been set up for the benefit of such a person, or whose economic interests are substantially equivalent to those of such a person.
The Company has adopted specific internal insider trading rules (the “Insider Trading Rules”) in order to ensure compliance with the above requirements and with other share trading regulations applicable in the Netherlands, France, Germany and Spain. The Insider Trading Rules are available on the Company’s website, and provide in particular that: (i) all employees and Directors are prohibited from conducting transactions in the Company’s shares or stock options if they have inside information, and (ii) certain persons are only allowed to trade in the Company’s shares or stock options within very limited periods and have specific information obligations to the ITR Compliance Officer of the Company and the competent financial market authorities with respect to certain transactions. The ITR Compliance Officer is responsible for the implementation of the Insider Trading Rules.
Pursuant to the Market Abuse Regulation, the Company must maintain a list of all persons working for it by virtue of a labour relationship or otherwise, who may have access to inside information.
3.1.12 Mandatory Disposal 3.1.12.1 Notification Requirements and Mandatory Disposal Threshold Restricting Ownership to 15%
Under the Articles of Association, each shareholder must notify the Company when it (or another party in respect of its interest in the Company) must make a notification to the AFM of a substantial interest or short position with respect to the Company, when its interest (alone or with concert parties) reaches or crosses the Mandatory Disposal Threshold (as defined below) or subject to certain conditions and exemptions, when changes occur in the composition, nature and/or size of any interest held by it or by its concert parties in excess of the Mandatory Disposal Threshold (as defined below). Failure to comply with these obligations may, subject to a prior notification by the Company, result in the suspension of voting and attendance rights until the shareholder has complied with its obligations.
The Articles of Association prohibit any shareholder from holding an interest of more than 15% of the share capital or voting rights of the Company, acting alone or in concert with others (the “Mandatory Disposal Threshold”). An interest (“Interest”) includes not only shares and voting rights, but also other instruments that cause shares or voting rights to be deemed to be at someone’s disposal pursuant to the WFT, and must be notified to the Dutch regulator, the AFM, if certain thresholds are reached or crossed. Any shareholder having an interest of more than the Mandatory Disposal Threshold must reduce its interest below the Mandatory Disposal Threshold, for instance by disposing of its Excess Shares, within two weeks after such notification by the Company. Upon receipt of such notification, the voting, attendance and dividend rights attached to the Excess Shares shall be suspended. The same applies to concerts of shareholders and other persons who together hold an interest exceeding the Mandatory Disposal Threshold. Should such shareholder or concert not comply with not exceeding the 15% Mandatory Disposal Threshold by the end of such two-week period, the voting, attendance and dividend rights attached to all shares held by such shareholder or concert shall be suspended, and their Excess Shares would be transferred to a Dutch law foundation (“Stichting”), which can, and eventually must, dispose of them. The suspension of shareholder rights described above shall be lifted once a shareholder or concert complies with its obligations under the Articles of Association. The Dutch law foundation would issue depositary receipts to the relevant shareholder in return for the Excess Shares transferred to the foundation, which would entitle the relevant shareholder to the economic rights, but not the voting rights, attached to such Company shares. The foundation’s Articles of Association and the terms of administration governing the relationship between the foundation and the depositary receipt holders provide, inter alia, that: – the Board Members of the foundation must be independent from the Company, any grandfathered persons and their affiliates (see “– 3.1.12.2 Exemptions from Mandatory Disposal Threshold”) and any holder of depositary receipts and their affiliates (there is an agreement under which the Company will, inter alia, cover the foundation’s expenses and indemnify the Board Members against liability); – the Board Members are appointed (except for the initial Board Members who were appointed at incorporation) and dismissed by the Management Board of the foundation (the Company may however appoint one Board Member in a situation where there are no foundation Board Members);


3. General Description of the Company and its Share Capital / 3.1 General Description of the Company 158 Airbus / Registration Document 2021 – the foundation has no discretion as to the exercise of voting rights attached to any of the Company shares held by it and will in a mechanical manner vote to reflect the outcome of the votes cast (or not cast) by the other shareholders, and the foundation will distribute any dividends or other distributions it receives from the Company to the holders of depositary receipts; and – no transfer of a depositary receipt can be made without the prior written approval of the foundation’s Board.
For any shareholder or concert, the term “Excess Shares”, as used above, refers to such number of shares comprised in the interest of such shareholder or concert exceeding the Mandatory Disposal Threshold which is the lesser of: (i) the shares held by such shareholder or concert which represent a percentage of the Company’s issued share capital that is equal to the percentage with which the foregoing interest exceeds the Mandatory Disposal Threshold; and (ii) all shares held by such person or concert.
This restriction is included in the Articles of Association to reflect the Company’s further normalised governance going forward, aiming at a substantial increase of the free float and to safeguard the interests of the Company and its stakeholders (including all its shareholders), by limiting the possibilities of influence above the level of the Mandatory Disposal Threshold or takeovers other than a public takeover offer resulting in a minimum acceptance of 80% of the share capital referred to below.
3.1.12.2 Exemptions from Mandatory Disposal Threshold. 
The restrictions pursuant to the Mandatory Disposal Threshold under the Articles of Association do not apply to a person who has made a public offer with at least an 80% acceptance (including any Airbus shares already held by such person). These restrictions also have certain grandfathering exemptions for the benefit of shareholders and concerts holding interests exceeding the Mandatory Disposal Threshold on 2 April 2013 (the “Exemption Date”), which is the date of first implementation of the Mandatory Disposal Threshold.
Different grandfathering regimes apply to such shareholders and concerts, depending on the interests and the nature thereof held by each such shareholder or concert on the Exemption Date.
The Company has confirmed that: (i) the specific exemption in Article 16.1.b of the Articles of Association applies to Société de Gestion de Participations Aéronautiques (“Sogepa”), as it held more than 15% of the outstanding Company voting rights and shares including the legal and economic ownership thereof on the Exemption Date; and (ii) the specific exemption in Article 16.1.c of the Articles of Association applies to the concert among Sogepa, Gesellschaft zur Beteiligungsverwaltung GZBV mbH & Co. KG (“GZBV”) and Sociedad Estatal de Participaciones Industriales (“SEPI”), as they held more than 15% of the outstanding Company voting rights and shares including the legal and economic ownership thereof on the Exemption Date.
3.1.13.1 Takeover Directive. 
The Directive 2004/25/EC on takeover bids (the “Takeover Directive”) sets forth the principles governing the allocation of laws applicable to the Company in the context of a takeover bid for the shares of the Company. The Takeover Directive refers to the rules of the Netherlands and the rules of the European Union Member State of the competent authority that must be chosen by the Company from among the various market authorities supervising the markets where its shares are listed.
For the Company, matters relating to, inter alia, the consideration offered in the case of a bid, in particular the price, and matters relating to the bid procedure, in particular the information on the offeror’s decision to make a bid, the contents of the offer document and the disclosure of the bid, shall be determined by the laws of the European Union Member State having the competent authority, which will be selected by the Company at a future date.
Matters relating to the information to be provided to the employees of the Company and matters relating to company law, in particular the percentage of voting rights which confers control and any derogation from the obligation to launch a bid, the conditions under which the Board of Directors of the Company may undertake any action which might result in the frustration of the bid, the applicable rules and the competent authority will be governed by Dutch law (see “– 3.1.13.2 Dutch Law”).
3.1.13.2 Dutch Law. 
In accordance with the Dutch act implementing the Takeover Directive (the “Takeover Act”), shareholders are required to make a public offer for all issued and outstanding shares in the Company’s share capital if they – individually or acting in concert (as such term is defined in the Takeover Act), directly or indirectly – have 30% or more of the voting rights (significant control) in the Company. In addition to the other available exemptions that are provided under Dutch law, the requirement to make a public offer does not apply to persons, who at the time the Takeover Act came into force, already held – individually or acting in concert – 30% or more of the voting rights in the Company. In the case of such a concert, a new Member of the concert can be exempted if it satisfies certain conditions.
3.1.13 Mandatory Offers


3. General Description of the Company and its Share Capital / 3
3.2 General Description of the Share Capital 159 Airbus / Registration Document 2021 3.2 General Description of the Share Capital 3.2.1 Issued Share Capital. 
As of 31 December 2021, the Company’s issued share capital amounted to € 786,083,690, consisting of 786,083,690 fully paid-up shares of a nominal value of € 1 each.
3.2.2 Authorised Share Capital. 
As of 31 December 2021, the Company’s authorised share capital amounted to € 3 billion, consisting of 3 billion shares of € 1 each.
3.2.3 Modification of Share Capital or Rights Attached to the Shares. 
The shareholders’ meeting has the power to authorise the issuance of shares. The shareholders’ meeting may also authorise the Board of Directors, for a period of no more than five years, to issue shares and to determine the terms and conditions of share issuances.
Holders of shares have a pre-emptive right to subscribe for any newly issued shares in proportion to the aggregate nominal value of shares held by them, except for (i) shares issued for consideration other than cash, (ii) shares issued to employees of Airbus and (iii) shares issued pursuant to a previously granted right to subscribe for those shares. For the contractual position as to pre-emption rights, see “– 3.3.2 Relationships with Principal Shareholders”.
The shareholders’ meeting also has the power to limit or to exclude pre-emption rights in connection with new issuances of shares, and may authorise the Board of Directors for a period of no more than five years, to limit or to exclude pre-emption rights. All resolutions in this context must be approved by a two-thirds majority of the votes cast during the shareholders’ meeting in the case where less than half of the capital issued is present or represented at said meeting.
However, the Articles of Association provide that the shareholders’ meeting is not authorised to pass any shareholders’ resolution to issue shares or to grant rights to subscribe for shares if the aggregate issue price is in excess of € 500 million per share issuance, and no preferential subscription rights exist in respect thereof (by virtue of Dutch law, or because they have been excluded by the competent corporate body). The same limitation applies if the shareholders’ meeting wishes to designate the Board of Directors to have the authority to resolve on such share issuance or granting of rights. These limitations in the Articles of Association can only be changed by the shareholders’ meeting with a 75% voting majority.
Pursuant to the shareholders’ resolutions adopted at the AGM held on 14 April 2021, the powers to issue shares and to grant rights to subscribe for shares and to limit or exclude preferential subscription rights for existing shareholders have been delegated to the Board of Directors for the purpose of: 1. Employee Share Ownership Plans and share-related Long-Term Incentive Plans, provided that such powers shall be limited to 0.14% of the Company’s authorised share capital; and 2. funding the Company and any of its subsidiaries, provided that such powers shall be limited to 0.3% of the Company’s authorised share capital.
Such powers have been granted for a period expiring at the AGM to be held in 2022, and shall not extend to issuing shares or granting rights to subscribe for shares if (i) there is no preferential subscription right (by virtue of Dutch law, or because it has been excluded by means of a resolution of the competent corporate body) and (ii) it concerns an aggregate issue price in excess of € 500 million per share issuance.
At the AGM held on 14 April 2021, the Board of Directors was authorised, for a period of 18 months from the date of such AGM, to repurchase shares of the Company, by any means, including derivative products, on any stock exchange or otherwise, as long as, upon such repurchase, the Company would not hold more than 10% of the Company’s issued share capital, and at a price per share not less than the nominal value and not more than the higher of the price of the last independent trade and the highest current independent bid on the trading venues of the regulated market of the country in which the purchase is carried out.
The shareholders’ meeting may reduce the issued share capital by cancellation of shares, or by reducing the nominal value of the shares by means of an amendment to the Articles of Association. The cancellation of shares requires the approval of a two-thirds majority of the votes cast during the shareholders’ meeting in the case where less than half of the capital issued is present or represented at said meeting; the reduction of nominal value by means of an amendment to the Articles of Association requires the approval of a two-thirds majority of the votes cast during the shareholders’ meeting (unless the amendment to the Articles of Association also concerns an amendment which under the Articles of Association requires a 75% voting majority).
At the AGM held on 14 April 2021, the Board of Directors and the Chief Executive Officer were authorised, with powers of substitution, to implement a cancellation of shares held or repurchased by the Company, including the authorisation to establish the exact number of the relevant shares thus repurchased to be cancelled.


3. General Description of the Company and its Share Capital / 3.2 General Description of the Share Capital 160 Airbus / Registration Document 2021 3.2.4 Securities Granting Access to the Company’s Share Capital. 
There are no securities that give access, immediately or over time, to the share capital of Airbus SE (see “Notes to the IFRS Consolidated Financial Statements – Note 36.3: Financing Liabilities”).
3.2.5 Changes in the Issued Share Capital. 
Date Nature of Transaction. 
Nominal value per share. 
Number of shares issued / cancelled Premium(1)
Total number of issued shares after transaction. 
Total issued capital after transaction 20 June 2013. 
Cancellation of shares upon authorisation granted by the Extraordinary General Meeting held on 27 March 2013 € 1 47,648,691 -779,719,254 € 779,719,254 29 July 2013 Issue of shares for the purpose of an employee offering € 1 2,113,245 € 57,580,650 781,832,499 € 781,832,499 27 September 2013. 
Cancellation of shares upon authorisation granted by the Extraordinary General Meeting held on 27 March 2013 € 1 3,099,657 -778,732,842 € 778,732,842 27 September 2013. 
Cancellation of shares upon authorisation granted by the Annual Shareholders’ Meeting held on 29 May 2013 € 1 2,448,884 -776,283,958 € 776,283,958. 
In 2013 Issue of shares following exercise of options granted to employees(2) € 1 6,873,677 € 176,017,918 783,157,635 € 783,157,635. 
In 2014 Issue of shares following exercise of options granted to employees(2) € 1 1,871,419 € 50,619,684 784,780,585 € 784,780,585. 
In 2015. 
Cancellation of shares upon authorisation granted by the Annual Shareholders’ Meeting held on 27 May 2015 € 1 2,885,243 -785,333,784 € 785,333,784. 
In 2015 Issue of shares following exercise of options granted to employees(2) € 1 1,910,428 -785,344,784 € 785,344,784. 
In 2016 Cancellation of treasury shares € 1 14,131,131 -771,213,653 € 771,213,653. 
In 2016 Issues of shares for the purpose of an employee offering € 1 1,474,716 -772,688,369 € 772,688,369. 
In 2016 Issue of shares following exercise of options granted to employees(2) € 1 224,500 -772,912,869 € 772,912,869. 
In 2017 Issues of shares for the purpose of an employee offering € 1 1,643,193 -774,556,062 € 774,556,062. 
In 2017 Issues of shares for the purpose of an employee offering € 1 1,643,193 -774,556,062 € 774,556,062. 
In 2018 Issues of shares for the purpose of an employee offering € 1 1,811,819 -776,367,881 € 776,367,881. 
In 2019 Issues of shares for the purpose of an employee offering € 1 1,784,292 -778,152,173 € 778,152,173. 
In 2019 Issue of shares under the convertible bond € 1 5,020,942 -783,173,115 € 783,173,115. 
In 2020 Issue of shares for the purpose of an employee offering € 1 976,155 -784,149,270 € 784,149,270. 
In 2021 Issue of shares for the purpose of an employee offering € 1 1,934,420 -786,083,690 € 786,083,690 (1) The costs (net of taxes) related to the initial public offering of the shares of the Company in July 2000 have been offset against share premium for an amount of € 55,849,772. (2) For information on Stock Option Plans under which these options were granted to the Company’s employees, see “– Corporate Governance – 4.3.3 Long-Term Incentive Plans”.
In the course of 2021, a total number of 1,934,420 new shares were issued, all of which were issued in the framework of the Employee Share Ownership Plan (“ESOP”).
During 2021 (i) Airbus SE repurchased 220,000 shares and (ii) none of the treasury shares were cancelled. As of 31 December 2021, Airbus SE held 454,735 treasury shares.


3. General Description of the Company and its Share Capital / 3
3.3 Shareholdings and Voting Rights 161 Airbus / Registration Document 2021 3.3 Shareholdings and Voting Rights 3.3.1 Shareholding Structure at the End of 2021. 
As of 31 December 2021, the French State held 10.92% of the outstanding Company shares through Sogepa, the German State held 10.90% through GZBV, a subsidiary of Kreditanstalt für Wiederaufbau (“KfW”), a public law institution serving domestic and international policy objectives of the Government of the. 
Federal Republic of Germany, and the Spanish State held 4.11% through SEPI. The public (including the Company’s employees) and the Company held, respectively, 74.01% and 0.06% of the Company’s share capital.
The diagram below shows the ownership structure of the Company as of 31 December 2021 (% of capital and of voting rights (in parentheses)). See “– Corporate Governance – 4.3.3 Long-Term Incentive Plans”.
Ownership Structure of Airbus SE as of 31 December 2021 84.31% 15.69%
FRENCH STATE. 
AIRBUS SE. 
GZBV(2)
OTHER GERMAN PUBLIC ENTITIES. 
SPANISH STATE GERMAN STATE. 
Share subject to Shareholders’ Agreement. 
PUBLIC. 
SOGEPA SEPI 4.11% (4.12%) 10.92% (10.93%) 10.90% (10.91%)
KfW 74.01%(1) (74.05%) (1) Including shares held by the Company itself (0.06%). (2) KfW & other German public entities.
According to the AFM register on substantial holdings, the below listed entities have notified the AFM of their substantial interest in the Company as per 16 March 2022: – BlackRock, Inc. (3.06% of the share capital and 3.85% of the voting rights); – Capital Research and Management Company (9.90% of the voting rights); – EuroPacific Growth Fund (3.01% of the share capital and 3.01% of the voting rights); – The Goldman Sachs Group Inc. (2.70% of the share capital and 2.70% of the voting rights).


3. General Description of the Company and its Share Capital / 3.3 Shareholdings and Voting Rights 162 Airbus / Registration Document 2021 3.3.2 Relationships with Principal Shareholders. 
In 2013, GZBV, Sogepa and SEPI entered into a shareholders’ agreement (the “Shareholders’ Agreement”). The Shareholders’ Agreement, further details of which are set out below, does not give the parties to it any rights to designate Members of the Board of Directors or management team or to participate in the governance of the Company. The Company has also entered into state security agreements with each of the French State and German State, which are also described in more detail below.
3.3.2.1 Corporate Governance Arrangements. 
Corporate governance arrangements of the Company were substantially changed in 2013, resulting in changes in the composition of the Board of Directors and its internal rules, as well as amendments to the Articles of Association of the Company. These changes were intended to further normalise and simplify the Company’s corporate governance, reflecting an emphasis on best corporate governance practices and the absence of a controlling shareholder group. Changes to the Company’s corporate governance arrangements in the Articles of Association, included (i) disclosure obligations for shareholders that apply when their interests in the Company reach or cross certain thresholds and (ii) ownership restrictions prohibiting any shareholder from holding an interest of more than 15% of the share capital or voting rights of the Company, acting alone or in concert with others. See Sections 3.1.11 and 3.1.12 above and Section 4 below.
3.3.2.2 Shareholder Arrangements. 
Grandfathering Agreement. 
At the Consummation, the French State, Sogepa, the German State, KfW and GZBV (all parties together the “Parties” and each, individually, as a “Party”) entered into an agreement with respect to certain grandfathering rights under the Articles of Association. Below is a summary of such agreement.
Individual Grandfathering Rights. 
A Party that is individually grandfathered pursuant to Article 16.1.b of the Articles of Association (such Party holding “Individual Grandfathering Rights”) shall remain individually grandfathered in accordance with the Articles of Association if the new concert with respect to the Company (the “Concert”) is subsequently terminated (for instance by terminating the Shareholders’ Agreement) or if it exits the Concert.
Loss of Individual Grandfathering Rights. 
A Party holding Individual Grandfathering Rights as well as any of its affiliates who are grandfathered pursuant to Article 16.1.b in conjunction with Article 16.3 of the Articles of Association (such affiliates holding “Derived Grandfathering Rights”, and the Individual Grandfathering Rights and the Derived Grandfathering Rights, together, the “Grandfathering Rights”) shall all no longer be entitled to exercise their Grandfathering Rights in the event: – the Concert is terminated as a result of it or any of its affiliates having actually or constructively terminated such Concert; or – it or its relevant affiliate(s) exit(s) the Concert; – and such termination or exit is not for good cause and is not based on material and ongoing violations of the Concert arrangements, including, without limitation, of the Shareholders’ Agreement, by the other principal Member of the Concert.
In the event that in the future the voting rights in the Company of the other principal Member of the Concert together with those of its affiliates would for an uninterrupted period of three months represent less than 3% of the outstanding aggregate voting rights of the Company, the Grandfathering Rights of the Party including its affiliates which were no longer entitled to use their Grandfathering Rights shall from then on revive and Sogepa and GZBV shall jointly notify the Company to that effect.
Notification to the Company. 
The Company will not be required to take any of the actions provided for in Article 15 of the Articles of Association pursuant to the post-concert Grandfathering Agreement unless and until it receives (i) a joint written instruction from Sogepa and GZBV with respect to the taking of any of the actions provided for in Article 15 of the Articles of Association pursuant to the postconcert Grandfathering Agreement, or (ii) a copy of a binding advice rendered by three independent, impartial and neutral Expert Adjudicators in order to settle any dispute between the Parties arising out of or in connection with the post-concert Grandfathering Agreement.
Actual interests may differ as the holder of a substantial interest is only obliged to notify the AFM of any change in the percentage of share capital and/or voting rights if such holder, directly or indirectly, reaches, exceeds or falls below any of the following thresholds: 3%, 5%, 10%, 15%, 20%, 25%, 30%, 40%, 50%, 60%, 75% and 95%.
Except as described above, the Company is not aware of any other person or legal entity that, as of the date of this Registration Document, has a capital or voting interest in the Company of 3% or more. For further details, please refer to the website of the AFM at: www.afm.nl. 
As of 31 December 2021, the Company held, directly or indirectly through another company in which the Company holds directly or indirectly more than 50% of the share capital, 454,735 of its own shares, equal to 0.06% of the issued share capital. The treasury shares owned by the Company do not carry voting rights.
For the number of shares and voting rights held by Members of the Board of Directors and Executive Committee, see “– Corporate Governance – 4.2.1 Remuneration Policy”.
Approximately 2.21% of the share capital (and voting rights) was held by the Company’s employees as of 31 December 2021.


3. General Description of the Company and its Share Capital / 3
3.3 Shareholdings and Voting Rights 163 Airbus / Registration Document 2021. 
The Company will not incur any liability to any of the Parties by taking such actions following receipt of any such joint instruction or binding advice and the Company will not be required to interpret the post-concert Grandfathering Agreement or any such joint instruction or binding advice.
Notwithstanding the description under “Various provisions – Jurisdiction” below, the courts of the Netherlands will have exclusive jurisdiction to resolve any dispute, controversy or claim affecting the rights or obligations of the Company under the post-concert Grandfathering Agreement.
Various Provisions. 
Termination. The post-concert Grandfathering Agreement terminates only if either the French State and its affiliates or the German State and its affiliates no longer hold shares in the Company.
Governing law. Laws of the Netherlands.
Jurisdiction. The courts of the Netherlands shall have exclusive jurisdiction. This is binding advice for any dispute, controversy or claim arising out of or in connection with the post-concert Grandfathering Agreement in accordance with the procedure set forth in the post-concert Grandfathering Agreement; provided, however, that application to the courts is permitted to resolve any such dispute controversy or claim.
Shareholders’ Agreement. 
Below is a further description of the Shareholders’ Agreement, based solely on a written summary of the main provisions of the Shareholders’ Agreement that has been provided to the Company by Sogepa, GZBV and SEPI (all parties together the “Shareholders”).
Governance of the Company. 
Appointment of the Directors. The shareholders shall vote in favour of any draft resolution relating to the appointment of Directors submitted to the shareholders’ meeting of the Company in accordance with the terms and conditions of the German State Security Agreement and the French State Security Agreement (as described below). If, for whatever reason, any person to be appointed as a Director pursuant to the German State Security Agreement or the French State Security Agreement is not nominated, the shareholders shall use their best endeavours so that such person is appointed as a Director.
Sogepa and GZBV shall support the appointment of one Spanish national that SEPI may present to them as Member of the Board of Directors of the Company, provided such person qualifies as an Independent Director pursuant to the conditions set forth in the Board Rules, and shall vote as shareholders in any shareholders’ meeting in favour of such appointment and against the appointment of any other person for such position.
If, for whatever reason, the French State Security Agreement and/or the German State Security Agreement has / have been terminated, KfW or Sogepa, as the case might be, shall propose two persons, and the shareholders shall exercise their best endeavours so that these persons are appointed as Directors. Directors can be dismissed by the General Meeting at all times.
Modification of the Articles of Association. Sogepa and GZBV shall consult each other on any draft resolution intending to modify the Board Rules and/or the Articles of Association.
Unless Sogepa and GZBV agree to vote in favour together of such draft resolution, the shareholders shall vote against such draft resolution. If Sogepa and GZBV reach a mutual agreement on such draft resolution, the shareholders shall vote in favour of such draft resolution.
Reserved Matters. With respect to the matters requiring the approval of a Qualified Majority at the Board level (“Reserved Matters”), all the Directors shall be free to express their own views. If the implementation of a Reserved Matter would require a decision of the shareholders’ meeting of the Company, Sogepa and GZBV shall consult each other with a view to reaching a common position. Should Sogepa and GZBV fail to reach a common position, Sogepa and GZBV shall remain free to exercise on a discretionary basis their votes.
Prior consultation. Sogepa and GZBV shall consult each other on any draft resolution submitted to the shareholders’ meeting other than related to Reserved Matters and the Board Rules.
Balance of Interests. 
The shareholders agree their common objective to seek a balance between themselves of their respective interest in the Company as follows: – to hold as closely as reasonably possible to 12% of the voting rights for Sogepa, together with any voting rights attributable to Sogepa and/or to the French State, pursuant to Dutch takeover rules except for voting rights attributable due to acting in concert with the other parties; – to hold as closely as reasonably possible to 12% of the voting rights for GZBV, together with any voting rights attributable to GZBV and/or to the German State, pursuant to Dutch takeover rules except for voting rights attributable due to acting in concert with the other parties; – to hold as closely as reasonably possible to 4% of the voting rights for SEPI, together with any voting rights attributable to SEPI and/or to the Spanish State, pursuant to Dutch takeover rules except for voting rights attributable due to acting in concert with the other parties.
Mandatory Takeover Threshold. 
The total aggregate voting rights of the shareholders shall always represent less than 30% of the voting rights of the Company, or less than any other threshold the crossing of which would trigger for any shareholder a mandatory takeover obligation (the “MTO Threshold”). In the event that the total aggregate voting rights of the shareholders exceed the MTO Threshold, the shareholders shall take all appropriate actions as soon as reasonably practicable, but in any event within 30 days, to fall below the MTO Threshold.
Transfer of Securities. 
Permitted transfer. Transfer of securities by any shareholder to one of its affiliates.
Pre-emption right. Pro rata pre-emption rights of the shareholders in the event any shareholder intends to transfer any of its securities to a third party directly or on the market.
Call-option right. Call option right for the benefit of the shareholders in the event that the share capital or the voting rights of any shareholders cease to be majority owned directly or indirectly by the French State, the German State or the Spanish State as applicable.


3. General Description of the Company and its Share Capital / 3.3 Shareholdings and Voting Rights 164 Airbus / Registration Document 2021. 
Tag-along right. Tag-along right for the benefit of SEPI in the event that Sogepa, the French State or any of their affiliates and any French public entity and GZBV, the German State or any of their affiliates and any public entity propose together to transfer all of their entire voting rights interests.
Various Provisions. 
Termination. The Shareholders’ Agreement may cease to apply in respect of one or more Shareholders and/or their affiliates, subject to the occurrence of certain changes in its or their shareholding interest in the Company or in its or their shareholders.
Governing law. Laws of the Netherlands.
Jurisdiction. Arbitration in accordance with the Rules of Arbitration of the International Chamber of Commerce, with the seat of arbitration in The Hague (the Netherlands).
3.3.2.3 Undertakings with Respect to Certain Interests of Certain Stakeholders. 
The Company has made certain undertakings and entered into certain agreements in connection with certain interests of its former core shareholders and the German State.
State Security Agreements and Related Undertakings and Negotiations. 
The Company and the French State have entered into an amendment to the existing convention between them relating to the Company’s ballistic missiles business (as so amended, the “French State Security Agreement”). Under the French State Security Agreement, certain sensitive French military assets are held by a Company subsidiary (the “French Defence Holding Company”). The French State has the right to approve or disapprove of – but not to propose or appoint – three outside Directors to the Board of Directors of the French Defence Holding Company (the “French Defence Outside Directors”), at least two of whom must qualify as Independent Directors under the Board Rules if they were Members of the Board of Directors. Two of the French Defence Outside Directors are required also to be Members of the Board of Directors of the Company. French Defence Outside Directors may neither (i) be employees, managers or corporate officers of a company belonging to the Company (although they may be Members of the Board of Directors of the Company) nor (ii) have material ongoing professional relationships with Airbus SE.
The Company and the German State have entered into an agreement relating to the protection of essential interests to the German State’s security (the “German State Security Agreement”). Under the German State Security Agreement, certain sensitive German military activities are pursued directly or indirectly by a Company subsidiary (the “German Defence Holding Company”). The German State has the right to approve or disapprove of – but not to propose or appoint – three outside Directors to the Supervisory Board of the German Defence Holding Company (the “German Defence Outside Directors”), at least two of whom must qualify as Independent Directors under the Board Rules if they were Members of the Board of Directors. Two of the German Defence Outside Directors are required to also be Members of the Board of Directors. The qualifications to serve as a German Defence Outside Director are comparable to those to serve as a French Defence Outside Director.
In February 2021, the Company and the Spanish State entered into an agreement relating to the protection of essential security interests to the Spanish State (the “Spanish State Security Agreement”). Under the Spanish State Security Agreement, certain sensitive Spanish military assets are held by a Company’s subsidiary (the “Spanish Defence Holding Company”). Pursuant to the Spanish State Security Agreement, the Company granted the Spanish State a pre-emption right to acquire the sensitive assets as defined under the Spanish State Security Agreement. The pre-emption right applies in case the Spanish Defence Holding Company wishes to sell the sensitive assets to an entity outside Airbus or outside Spain’s territory. In such case, the Spanish State has the right to acquire the sensitive assets.
Dassault Aviation. 
The Company entered into an agreement with the French State pursuant to which the Company: – grants the French State a right of first offer in case of the sale of all or part of its shareholding in Dassault Aviation; and – commits to consult with the French State prior to making any decision at any shareholders’ meeting of Dassault Aviation.
The Company holds 9.90% of Dassault Aviation’s share capital.
For more information about Dassault Aviation, see “– Information on the Company’s Activities – 1.1.5 Investments”.
Stock Exchange Listings. 
The Company has undertaken to the parties to the Shareholders’ Agreement that for the duration of the Shareholders’ Agreement the Company’s shares will remain listed exclusively in France, Germany and Spain.
Specific Rights. 
French State: Pursuant to the “French State Security Agreement”, the Company has granted to the French State: (a) a veto right, and subsequently, a call option on the shares of the Company performing the ballistic missiles activity exercisable under certain circumstances, including if (i) a third party acquires, directly or indirectly, either alone or in concert, more than 15% or any multiple thereof of the share capital or voting rights of the Company, or (ii) the sale of the shares of such companies carrying out such activity is considered, and (b) a right to oppose the transfer of any such shares.
German State: Pursuant to the “German State Security Agreement”, the Company and the German Defence Holding Company have granted to the German State a pre-emption right to acquire the sensitive activities, as defined under the German State Security Agreement. The pre-emption right applies in case the German Defence Holding Company wishes to sell the sensitive activities to an entity outside the Company, or outside the German territory, or the shares of a controlled entity which hosts sensitive activities. In such a case, the German State may acquire the shares of such a controlled entity. Furthermore, the German State has the right to acquire the sensitive activities in case the Company intends to allocate the sensitive activities outside Germany or to give-up the sensitive activities.


3. General Description of the Company and its Share Capital / 3
3.3 Shareholdings and Voting Rights 165 Airbus / Registration Document 2021 3.3.3 Form of Shares. 
The shares of the Company are in registered form. The Board of Directors may decide with respect to all or certain shares, on shares in bearer form.
Shares shall be registered in the shareholders’ register without the issue of a share certificate or should the Board of Directors so decide, with respect to all or certain shares, with the issue of a certificate. Share certificates shall be issued in such form as the Board of Directors may determine. Registered shares shall be numbered in the manner to be determined by the Board of Directors.
3.3.4 Changes in the Shareholding of the Company. 
The evolution in ownership of the share capital and voting rights of the Company over the past three years is set forth in the table below:
Shareholders. 
Position as of 31 December 2021. 
Position as of 31 December 2020 Position as of 31 December 2019 % of capital % of voting rights Number of shares % of capital % of voting rights Number of shares % of capital % of voting rights Number of shares. 
SOGEPA 10.92% 10.92% 85,835,477 10.95% 10.95% 85,835,477 10.96% 10.97% 85,835,477. 
GZBV(1) 10.90% 10.91% 85,709,822 10.93% 10.94% 85,709,822 10.94% 10.96% 85,709,822. 
SEPI 4.11% 4.11% 32,330,381 4.12% 4.13% 32,330,381 4.13% 4.13% 32,330,381. 
Sub-total New Shareholder Agt. 25.93% 25.94% 203,875,680 26.00% 26.01% 203,875,680 26.03% 26.06% 203,875,680. 
Foundation “SOGEPA” 00.0% 0.00% 0 0.00% 0.00% 0 0.00% 0.00% 0. 
Public(2) 74.01% 74.05% 581,973,275 73.94% 73.99% 579,840,715 73.86% 73.94% 578,434,825. 
Own share buyback(3) 0.03% -234,735 0.06% -432,875 0.11% -862,610. 
Total 100% 100% 786,083,690 100% 100% 784,149,270 100% 100% 783,173,115 (1) KfW & other German public entities. (2) Including Company employees. As of 31 December 2021, the Company’s employees held approximately 2.21% of the share capital (and voting rights). (3) The shares owned by the Company do not carry voting rights.
To the knowledge of the Company, there are no pledges over the shares of the Company.
The Company requested disclosure of the identity of the beneficial holders of its shares held by identifiable holders (titres au porteur identifiables) holding 2,000 or more shares each. The study, which was completed on 31 December 2021, resulted in the identification of 2,331 shareholders holding a total of 571,485,155 Company shares (including 2,186,945 shares held by Iberclear on behalf of the Spanish markets and 24,597,254 shares held by GZBV on behalf of the German market).
The shareholding structure of the Company as of 31 December 2021 is as shown in the diagram in “– 3.3.1 Shareholding Structure at the end of 2021”.
3.3.5 Persons Exercising Control over the Company. 
See “– 3.3.1 Shareholding Structure at the end of 2021” and “– 3.3.2 Relationships with Principal Shareholders”.
3.3.6 Simplified Group Structure Chart. 
The following chart illustrates the simplified organisational structure of Airbus as of 1 January 2022, comprising the Divisions and the main Business Units. See “– Information on the Company’s Activities – 1.1.1 Overview – Organisation of the Company’s Businesses”. For ease of presentation, certain intermediate holding companies have been omitted.


3. General Description of the Company and its Share Capital / 3.3 Shareholdings and Voting Rights 166 Airbus / Registration Document 2021 95.96%
AIRBUS SE (The Netherlands)
Airbus Defence and Space GmbH (Germany)
Elbe Flugzeugwerke GmbH (Germany)
Premium Aerotec GmbH (Germany)
Airbus Defence and Space Limited (UK)
Airbus Operations SAS (France)
Airbus Operations Limited (UK)
Airbus Operations GmbH (Germany)
Airbus Operations, S.L. (Spain)
Airbus Helicopters (France)
Airbus Defence and Space, S.A. (Spain)
Computadoras, Redes e Ingenieria, S.A. (Spain)
Airbus Helicopters España, S.A. (Spain)
Airbus Helicopters UK Limited (UK)
Airbus Helicopters Deutschland GmbH (Germany) 95.78% 45% 88.71% 11.29% 4.04% 4.22%
Airbus Americas, Inc. (USA)
Airbus Group Inc. (USA)
Airbus SAS (France)
Stelia Aerospace until 31.12.2021 / Airbus Atlantic as of 01.01.2022 
(France) 75%*
Airbus Canada Limited Partnership (Canada) 50%*
ATR GIE (France)
Airbus DS Holding SAS (France)
MBDA (France)
Airbus Defence and Space SAS (France)
Airbus Defence and Space Holding France SAS (France)
Ariane Group 50%* 99.99% 37.5%*
Airbus Defence and Space. 
Airbus Helicopters. 
Ariane Group. 
MBDA Group. 
Subsidiaries held with no indication of ownership percentage are 100% owned. * Indirectly Legal forms are indicated for information purposes and are not always part of the legal name.


3. General Description of the Company and its Share Capital / 3
3.3 Shareholdings and Voting Rights 167 Airbus / Registration Document 2021 3.3.7 Purchase by the Company of its Own Shares 3.3.7.1 Dutch Law and Information on Share Repurchase Programmes. 
Under Dutch civil law, the Company may acquire its own shares, subject to certain provisions of the law of the Netherlands and the Articles of Association, if (i) the shareholders’ equity less the payment required to make the acquisition does not fall below the sum of paid-up and called portion of the share capital and any reserves required by the law of the Netherlands and (ii) the Company and its subsidiaries would not thereafter hold or hold in pledge shares with an aggregate nominal value exceeding one-half (50%) of the Company’s issued share capital. Share acquisitions may be effected by the Board of Directors only if the shareholders’ meeting has authorised the Board of Directors to effect such repurchases. Such authorisation may apply for a maximum period of 18 months.
For the authorisations granted to the Board of Directors at the AGM of Shareholders held on 14 April 2021, see “– 3.2.3 Modification of Share Capital or Rights Attached to the Shares”.
3.3.7.2 European Regulation. 
Pursuant to the Market Abuse Regulation and EU Delegated Regulation no. 2016/1052, the Company is subject to conditions for share repurchase programmes and disclosure relating thereto. In particular, prior to implementing the share repurchase programme, the Company must ensure adequate disclosure of the following information: the purpose of the programme, the maximum pecuniary amount allocated to the programme, the maximum number of shares to be acquired, and the duration of the programme.
In addition, the Company must report to the competent authority of each trading venue on which the shares are admitted to trading or are traded no later than by the end of the seventh daily market session following the date of execution of the transaction, all the transactions relating to the buy-back programme and ensure adequate disclosure of that certain information relating thereto within the same time frame. These transactions must be posted on the Company’s website and be made available to the public for at least a five-year period from the date of adequate public disclosure.
3.3.7.3 French Regulations. 
As a result of its listing on a regulated market in France, the Company is subject to the European regulations summarised above in 3.3.7.2 (European Regulation).
In addition, the Autorité des marchés financiers (“AMF”) General Regulations and AMF guidelines n°2017-04 define the conditions for a company’s trading in its own shares to be valid in accordance with the Market Abuse Regulation and EU Delegated Regulation no. 2016/1052.
Moreover, the Company must report to the AMF, on at least a monthly basis, all the specified information regarding such purchases previously published on its website and information concerning the cancellation of such repurchased shares.
3.3.7.4 German Regulations. 
As a foreign issuer, the Company is subject to German rules on repurchasing its own shares only to a limited extent, since German rules refer to the law of the Member State in which the Company is domiciled. In addition, general principles of German law on equal treatment of shareholders are applicable.
The European regulations summarised above in 3.3.7.2 (European Regulation) also applies to the Company in Germany.
3.3.7.5 Spanish Regulations. 
As a foreign issuer, the Company is not subject to Spanish rules on trading in its own shares, which only apply to Spanish issuers. The European regulations summarised above in 3.3.7.2 (European Regulation) also applies to the Company in Spain.


3. General Description of the Company and its Share Capital / 3.3 Shareholdings and Voting Rights 168 Airbus / Registration Document 2021 3.3.7.6 Description of the Share Repurchase Programme to Be Authorised by the Annual General Meeting of Shareholders to Be Held on 12 April 2022. 
Pursuant to Articles 241-2-I and 241-3 of the French AMF General Regulations, below is a description of the share repurchase programme (descriptif du programme) to be implemented by the Company: – date of the shareholders’ meeting to authorise the share repurchase programme: 12 April 2022; – intended use of the Airbus SE shares held by the Company as of the date of this document: the owning of shares for the performance of obligations related to employee share option programmes or other allocations of shares to employees of Airbus and Airbus’ companies; – purposes of the share repurchase programme to be implemented by the Company (by order of decreasing priority, without any effect on the actual order of use of the repurchase authorisation, which will be determined on a case-by-case basis by the Board of Directors based on need): – the reduction of share capital by cancellation of all or part of the repurchased shares, it being understood that the repurchased shares shall not carry any voting or dividend rights, – the owning of shares for the performance of obligations related to (i) debt financial instruments convertible into Airbus SE shares, or (ii) employee share option programmes or other allocations of shares to employees of Airbus and Airbus’ companies, – the purchase of shares for retention and subsequent use for exchange or payment in the framework of potential external growth transactions, and – the liquidity or dynamism of the secondary market of the Airbus SE shares carried out pursuant to a liquidity agreement to be entered into with an independent investment services provider in compliance with the decision of the AMF dated 1 October 2008 (as amended) related to approval of liquidity agreements recognised as market practices by the AMF; – procedure: – maximum portion of the issued share capital that may be repurchased by the Company: 10%, – maximum number of shares that may be repurchased by the Company: 78,608,369 shares, based on an issued share capital of 786,083,690 shares as of 16 February 2022, – the amounts to be paid in consideration for the purchase of the treasury shares must be, in accordance with applicable Dutch law, a price per share not less than the nominal value and not more than the higher of the price of the last independent trade and the highest current independent bid on the trading venues of the regulated market of the country in which the purchase is carried out; – the Company undertakes to maintain at any time a sufficient number of shares in public hands to meet the thresholds of Euronext, shares may be bought or sold at any time (including during a public offering) to the extent authorised by the stock exchange regulations and by any means, including, without limitation, by means of block trades and including the use of options, combinations of derivative financial instruments or the issue of securities giving rights in any way to Airbus SE shares within the limits set out in this document; – the portion of shares repurchased through the use of block trades may amount to all the shares to be repurchased in the context of this programme. In addition, in the event that derivative financial instruments are used, the Company will ensure that it does not use mechanisms which would significantly increase the volatility of the shares in particular in the context of call options, characteristics of the shares to be repurchased by the Company: shares of Airbus SE, a company listed on Euronext Paris, on the regulierter Markt of the Frankfurt Stock Exchange and on the Madrid, Bilbao, Barcelona and Valencia Stock Exchanges; – maximum purchase price per share: not less than the nominal value and not more than the higher of the price of the last independent trade and the highest bid on the trading venues of the regulated market of the country in which the purchase is carried out; – term of the share repurchase programme and other characteristics: this share repurchase programme shall be valid until 12 October 2023 inclusive, i.e. the date of expiry of the authorisation requested from the AGM of Shareholders to be held on 12 April 2022.
As of the date of this document, the Company has not entered into any liquidity agreement with an independent investment services provider in the context of the share repurchase programme.
Share Repurchase Programme 2021. 
In December 2021, the Company started implementing a share buyback programme that was conferred by Board of Directors on 14 April 2021 following the authorisation by the Company’s Annual General Meeting of shareholders on 14 April 2021. This share buyback programme is reported in accordance with the Market Abuse Regulation.


3. General Description of the Company and its Share Capital / 3
3.4 Dividends 169 Airbus / Registration Document 2021 3.4 Dividends 3.4.1 Dividends and Cash Distributions Paid. 
Cash distributions paid to the shareholders are set forth in the table below:
Financial year Date of the cash distribution payment Gross amount per share(1) Adjusted amount per share(2) 2016 20 April 2017 € 1.35 € 1.332 2017 18 April 2018 € 1.50 € 1.483 2018 17 April 2019 € 1.65 € 1.636 2019 N/A € 0 € 0 2020 N/A € 0 € 0 (1) Note: figures take into account the number of shares outstanding at the date of payment. (2) Note: amounts per share adjusted to the current number of shares outstanding as of 31 December 2021.
3.4.2 Dividend Policy of the Company. 
In December 2013, Airbus formalised a dividend policy demonstrating a strong commitment to shareholder returns. This policy targets sustainable growth in the dividend within a pay-out ratio of 30%-40%.
However, in 2020, the COVID-19 pandemic has severely disrupted the Company’s business operations and financial performance. As a result, no dividend was proposed for 2020.
Based on the strong 2021 financial performance, the Board of Directors proposes to reintroduce a dividend payment and will propose to the Annual General Meeting the payment to shareholders on 21 April 2022 of a dividend of € 1.50 per share.
This dividend proposal reflects our Net Income of € 4.2 billion together with our strengthening Net Cash position of € 7.6 billion.
It highlights our ongoing commitment towards sustained dividend growth and increasing shareholder returns. The record date should be 20 April 2022.
3.4.3 Unclaimed Dividends. 
Pursuant to the Articles of Association, the claim for payment of a dividend or other distribution approved by the shareholders’ meeting shall lapse five years after the day on which such claim becomes due and payable. The claim for payment of interim dividends shall lapse five years after the day on which the claim for payment of the dividend against which the interim dividend could be distributed becomes due and payable.
3.4.4 Taxation. 
The statements below represent a broad analysis of the current tax laws of the Netherlands. The description is limited to the material tax implications for a holder of the Company’s shares (the “Shares”) who is not and is not deemed to be resident in the Netherlands for any Dutch tax purposes (a “Non-Resident Holder”). Certain categories of holders of the Company’s shares may be subject to special rules which are not addressed below and which may be substantially different from the general rules described below. Investors who are in doubt as to their tax position in the Netherlands and in their state of residence should consult their professional advisors. Where the summary refers to “the Netherlands” or “Netherlands” or “Dutch”, it refers only to the European part of the Kingdom of the Netherlands.


3. General Description of the Company and its Share Capital / 3.4 Dividends 170 Airbus / Registration Document 2021. 
Withholding Tax on Dividends. 
In general, a dividend distributed by the Company in respect of Shares will be subject to Dutch withholding tax at a statutory rate of 15%. Dividends include inter alia dividends in cash or in kind, deemed and constructive dividends, (partial) repayments of paid-in capital not recognised as capital for Dutch dividend withholding tax purposes, and liquidation proceeds in excess of the average paid-in capital recognised as capital for Dutch dividend withholding tax purposes. Stock dividends paid out of the Company’s paid-in-share premium, recognised as capital for Dutch dividend withholding tax purposes, will not be subject to this withholding tax.
A Non-Resident Holder of Shares can be eligible for a partial or complete exemption or refund of all or a portion of the above withholding tax pursuant to domestic rules or under a tax convention that is in effect between the Netherlands and the Non-Resident Holder’s country of residence for tax purposes. The Netherlands has concluded such conventions with the US, Canada, Switzerland, Japan, almost all European Union Member States and other countries.
Withholding Tax on Sale or Other Dispositions of Shares. 
Payments on the sale or other dispositions of Shares will not be subject to Dutch withholding tax, unless the sale or other disposition is, or is deemed to be, made to the Company or a direct or indirect subsidiary of the Company. In principle, a redemption or sale to the Company or a direct or indirect subsidiary of the Company will be deemed to be a dividend and will be subject to the rules set forth in “Withholding Tax on Dividends” above.
Taxes on Income and Capital Gains. 
A Non-Resident Holder who receives dividends distributed by the Company on Shares or who realises a capital gain derived from Shares, will not be subject to Dutch taxation on income or a capital gain unless: – the income or capital gain is attributable to an enterprise or part thereof which is either effectively managed in the Netherlands or carried on through a permanent establishment (vaste inrichting) or permanent representative (vaste vertegenwoordiger) taxable in the Netherlands and the holder of Shares derives profits from such enterprise (other than by way of the holding of securities); or – the Non-Resident Holder is an entity and has, directly or indirectly, a substantial interest (aanmerkelijk belang) or a deemed substantial interest in the Company and such interest is held by the Non-Resident Holder with the main purpose of or one of the main purposes of avoiding personal income tax for another person; or – the Non-Resident Holder is an individual and such holder or a connected person to such holder (verbonden persoon) has, directly or indirectly, a substantial interest (aanmerkelijk belang) or a deemed substantial interest in the Company which is not attributable to an enterprise; or – the income or capital gain qualifies as income from miscellaneous activities (belastbaar resultaat uit overige werkzaamheden) in the Netherlands as defined in the Dutch Income Tax Act 2001 (Wet inkomstenbelasting 2001), including without limitation, activities that exceed normal, active portfolio management (normaal actief vermogensbeheer).
Generally, a Non-Resident Holder of Shares will not have a substantial interest in the Company’s share capital, unless the Non-Resident Holder, alone or together with certain related persons holds, jointly or severally directly or indirectly, Shares in the Company, or a right to acquire Shares in the Company representing 5% or more of the Company’s total issued and outstanding share capital or any class thereof. Generally, a deemed substantial interest exists if all or part of a substantial interest has been or is deemed to have been disposed of with application of a roll-over relief.
Gift or Inheritance Taxes. 
Dutch gift or inheritance taxes will not be levied on the occasion of the transfer of Shares by way of gift by, or on the death of, a Non-Resident Holder, unless the transfer is construed as an inheritance or gift made by or on behalf of, a person who, at the time of the gift or death, is or is deemed to be resident in the Netherlands for the purpose of the relevant provisions.
Value Added Tax. 
There is no Dutch value added tax payable by a holder of Shares in respect of dividends on the Shares or on the transfer of the Shares.
Other Taxes and Duties. 
There is no Dutch registration tax, stamp duty or any other similar tax or duty other than court fees payable in the Netherlands by a holder of Shares in respect of or in connection with the execution, delivery and/or enforcement by legal proceedings (including any foreign judgement in the courts of the Netherlands) with respect to the dividends on the Shares or on the transfer of the Shares.
Residence. 
A Non-Resident Holder will not become resident, or be deemed to be resident, in the Netherlands solely as a result of holding a Share or of the execution, performance, delivery and/or enforcement of rights in respect of the Shares.


3. General Description of the Company and its Share Capital / 3
171 Airbus / Registration Document 2021


4. 
Chapter 172 Airbus / Registration Document 2021


4. 
Corporate Governance 4.1 Management and Control 174 4.1.1 Corporate Governance Arrangements 174 4.1.2 Dutch Corporate Governance Code, “Comply or Explain” 197 4.1.3 Enterprise Risk Management System 198 4.1.4 Internal Audit 200 4.2 Interests of Directors and Principal Executive Officers 201 4.2.1 Remuneration Policy 201 4.2.2 Long-Term Incentives Granted to the Chief Executive Officer 214 4.2.3 Related Party Transactions 215 4.3 Employee Success Sharing and Incentive Plans 215 4.3.1 Employee Success Sharing and Incentive Agreements 215 4.3.2 Employee Share Ownership Plans 215 4.3.3 Long-Term Incentive Plans 216 173 Airbus / Registration Document 2021


4. Corporate Governance / 4.1 Management and Control 174 Airbus / Registration Document 2021 4.1 Management and Control. 
The corporate governance arrangements of the Company were substantially changed pursuant to the Multiparty Agreement, including changes in the composition of the Board of Directors and the rules governing its internal affairs (the “Board Rules”). These changes are intended to further normalise and simplify the Company’s corporate governance, reflecting an emphasis on best corporate governance practices and the absence of a controlling shareholder group. Below is a summary description of such changes.
4.1.1 Corporate Governance Arrangements 4.1.1.1 Board of Directors a) Composition, Powers and Rules. 
Under the Articles of Association, the Board of Directors consists of at most 12 Directors. Under the Board Rules, each Board Director shall retire at the close of the AGM held three years following his or her appointment, unless the said mandate is renewed. Under the Board Rules, at least a majority of the Members of the Board of Directors (i.e. 7/12) must be European Union (“EU”; any reference in the Board Rules to the EU includes the UK, notwithstanding the withdrawal of the UK from the EU) nationals (including the Chairman of the Board of Directors) and a majority of such majority (i.e. 4/7) must be both EU nationals and residents. No Director may be an active civil servant. The Board of Directors has one Executive Director and 11 NonExecutive Directors. While the Board of Directors appoints the Chief Executive Officer of the Company (the “CEO”), the CEO is required to be an Executive Director and must be an EU national and resident; therefore it is anticipated that the Board of Directors will appoint as CEO the person appointed by the shareholders as an Executive Director. At least nine of the NonExecutive Directors must be “Independent Directors” (including the Chairman of the Board of Directors).
Under the Board Rules, an “Independent Director” is a NonExecutive Director who is independent within the meaning of the Dutch Corporate Governance Code (the “Dutch Code”) and meets additional independence standards. Specifically, where the Dutch Code would determine non-independence, in part, by reference to a Director’s relationships with shareholders who own at least 10% of the Company, the Board Rules determine such Director’s non-independence, in relevant part, by reference to such Director’s relationships with shareholders who own at least 5% of the Company. According to the criteria of the Dutch Code and the Board Rules, all Non-Executive Directors (including the Chairman) presently qualify as an “Independent Director”.
The Remuneration, Nomination and Governance Committee of the Board of Directors (the “RNGC”) is charged with recommending to the Board of Directors the names of candidates to succeed active Board Members after consultation with the Chairman of the Board of Directors and the CEO.
The Board of Directors, deciding by simple majority vote, proposes individuals to the shareholders’ meeting of the Company for appointment as Directors by the shareholders’ meeting. No shareholder or group of shareholders, or any other entity, has the right to propose, nominate or appoint any Directors other than the rights available to all shareholders under Dutch law.
In addition to the membership and composition rules described above, the RNGC, in recommending candidates for the Board of Directors, and the Board of Directors in its resolutions proposed to the shareholders’ meeting regarding the renewal or appointment of Directors, are both required to apply the following principles: – the preference for the best candidate for the position; – the preference for gender diversity between equal profiles; – the maintenance of appropriate skills mix and geographical experience; – the maintenance, in respect of the number of Members of the Board of Directors, of the observed balance among the nationalities of the candidates in respect of the location of the main industrial centres of the Company (in particular among the nationals of France, Germany, Spain and the United Kingdom, where these main industrial centres are located); and – at least a majority of the Members of the Board of Directors (i.e. 7/12) shall be EU nationals (including the Chairman), and a majority of such majority (i.e. 4/7) shall be both EU nationals and residents (including the UK and its constituent countries, notwithstanding a withdrawal of the UK from the EU).
In accordance with these principles the Board of Directors shall continue to seek greater diversity with respect to gender, age, geography, education, profession and background.
No changes were made to the membership of the Board of Directors in 2021.
It was in September 2021 that Mr. Carlos Tavares announced he will not seek reelection at the AGM 2022 as Member of the Board of Directors.
At the end of 2021, the average age of the Members of the Board of Directors was 60. The proportion of female representatives is today at 25%. The Board of Directors composition shows a balanced mix of experience with, for example, six Members having aerospace industry skills, six having geopolitical skills, nine having finance skills, four having information or data management skills, four having manufacturing and production skills and five having sustainability skills. More details about the diversity of the Members of the Board of Directors are available in the table entitled Airbus SE Board of Directors until AGM 2022.


4. Corporate Governance / 4.1 Management and Control 175 Airbus / Registration Document 2021 4. 
The Board of Directors is required to take into account, in the resolutions proposed in respect of the renewal or nomination of Directors presented to the shareholders’ meeting, the undertakings of the Company to the French State, pursuant to the amendment to the French State Security Agreement, and to the German State, pursuant to the German State Security Agreement, in each case as described more fully above. In practice, this means that at all times the Board of Directors needs to have: (i) two Directors who should also be French Defence Outside Directors (as defined above) of the French Defence Holding Company (as defined above) who have been proposed by the Company and consented to by the French State and (ii) two Directors who should also be German Defence Outside Directors (as defined above) of the German Defence Holding Company (as defined above) who have been proposed by the Company and consented to by the German State.
The RNGC endeavours to avoid a complete replacement of outgoing Directors by new candidates, and draws up an appointment and reappointment schedule for the Directors after consultation with the Chairman and the CEO. In drawing up such a schedule, the RNGC considers the continuity of companyspecific knowledge and experience within the Board of Directors, also taking into account that a Director should at the time of his/ her appointment or re-appointment not be older than 75 years and ensuring that at least one third of Directors’ positions are either renewed or replaced every year for a term of three years. This is to avoid large block replacements of Directors at one single AGM, with the corresponding loss of experience and integration challenges, provided that exceptions to these rules may be agreed by the Board of Directors if specific circumstances provide an appropriate justification for such exceptions.
b) Role of the Board of Directors. 
Most Board of Directors’ decisions can be made by a simple majority of the votes cast by the Directors (a “Simple Majority”), but certain decisions must be made by a two-thirds majority (i.e. eight favourable votes) of votes cast by the Directors regardless of whether they are present or represented in respect of the decision (a “Qualified Majority”). In addition, amendments to certain provisions of the Board Rules require the unanimous approval of the Board of Directors, with no more than one Director not being present or represented (including provisions relating to nationality and residence requirements with respect to Members of the Board of Directors and the Executive Committee). However, no individual Director or class of Directors has a veto right with respect to any Board of Directors’ decisions.
The Board Rules specify that in addition to the Board of Directors’ responsibilities under applicable law and the Articles of Association, the Board of Directors is responsible for certain enumerated categories of decisions. Under the Articles of Association, the Board of Directors is responsible for the management of the Company. Under the Board Rules, the Board of Directors delegates the execution of the strategy as approved by the Board of Directors and the day-to-day management of the Company to the CEO, who, supported by the Executive Committee and its executive leadership team, makes decisions with respect to the management of the Company. However, the CEO should not enter into transactions that form part of the key responsibilities of the Board of Directors, unless these transactions have been approved by the Board of Directors.
Matters that require Board of Directors’ approval include among others, the following items (by Simple Majority unless otherwise noted): – approving any change in the nature and scope of the business of the Company; – debating and approving the overall strategy and the strategic plan of the Company; – approving the operational business plan of the Company (the “Business Plan”) and the yearly budget of the Company (the “Yearly Budget”), including the plans for investment, research and development (“R&D”), Employment, Finance and, as far as applicable, major programmes; – nominating, suspending or revoking the Chairman of the Board of Directors and the CEO (Qualified Majority); – approving of all of the members of the Executive Committee as proposed by the CEO and their service contracts and other contractual matters in relation to the Executive Committee and deciding upon the appointment and removal of the Secretary to the Board of Directors on the basis of the recommendation of the RNGC; – approving the relocation of the headquarters of the principal companies of the Company and of the operational headquarters of the Company (Qualified Majority); – approving decisions in connection with the location of new industrial sites material to the Company or the change of the location of existing activities that are material to the Company; – approving decisions to invest and initiate programmes financed by the Company, acquisition, divestment or sale decisions, in each case for an amount in excess of € 300 million; – approving decisions to invest and initiate programmes financed by the Company, acquisition, divestment or sale decisions, in each case for an amount in excess of € 800 million (Qualified Majority); – approving decisions to enter into and terminate strategic alliances at the level of the Company or at the level of one of its principal subsidiaries (Qualified Majority); – approving matters of shareholder policy, major actions or major announcements to the capital markets; and – approving decisions in respect of other measures and business of fundamental significance for the Company or which involves an abnormal level of risk.
The Board of Directors must have a certain number of Directors present or represented at a meeting to take action. This quorum requirement depends on the action to be taken. For the Board of Directors to make a decision on a Simple Majority matter, a majority of the Directors must be present or represented. For the Board of Directors to make a decision on a Qualified Majority matter, at least ten of the Directors must be present or represented. If the Board of Directors cannot act on a Qualified Majority Matter because this quorum is not satisfied, the quorum would decrease to eight of the Directors at a new duly called meeting.
In addition, the Board Rules detail the rights and duties of the members of the Board of Directors and set out the core principles which each member of the Board of Directors shall comply with and shall be bound by, such as acting in the best interest of the Company and its stakeholders, devoting necessary time and attention to the carrying out of his/her duties and avoiding any and all conflicts of interest.


4. Corporate Governance / 4.1 Management and Control 176 Airbus / Registration Document 2021 c) The Board of Directors (i) Composition of the Board of Directors in 2021. 
Committee attendance Board member Age*, Gender, Nationality Status Since Term expires Primary occupation & Other mandates Director expertise Board attendance Audit RNGC ECSC. 
René OBERMANN 58, M, German Independent 2018, previous re-election in 2021 2024. 
Chairman of the Board of Directors of Airbus SE and Managing Director of Warburg Pincus Deutschland GmbH 7/7. 
Guillaume FAURY** 53, M, French Executive 2019 2022. 
Chief Executive Officer of Airbus SE, Member of the Board of Directors of AXA SA 
7/7. 
Victor CHU 64, M, Chinese / British. 
Independent 2018, previous re-election in 2021 2024. 
Chairman and CEO of First Eastern Investment Group and member of the Board of Nomura Holdings Inc.
7/7 5/5. 
Jean-Pierre CLAMADIEU 63, M, French Independent 2018, previous re-election in 2021 2024 Chairman of the Board of Engie and member of the Board of AXA SA 7/7 5/5 6/6. 
Ralph D. CROSBY, Jr. 74, M, American Independent 2013, previous re-election in 2020 2023 Member of the Board of Directors of Excelitas Holdings, LP 7/7 1/2 (until AGM) 3/4 (post AGM)
Lord DRAYSON (Paul) 61, M, British Independent 2017, previous re-election in 2020 2023. 
Founder & CEO of Sensyne Health plc and Co-Founder & Chairman of Sensyne Health Holdings Ltd 7/7 5/5 5/6. 
Mark DUNKERLEY 58, M, British Independent 2020 2023 Member of the Board of Spirit Airlines Inc. and Volotea Airlines 7/7 5/5. 
Stephan GEMKOW 62, M, German Independent 2020 2023. 
Member of the Board of Amadeus IT Group and Flughafen Zürich AG 7/7 5/5. 
Catherine GUILLOUARD** 57, F, French Independent 2016, previous re-election in 2019 2022. 
Chairwoman and Chief Executive Officer of RATP and member of the Supervisory Board of KPN 7/7 5/5 6/6. 
Amparo MORALEDA 57, F, Spanish Independent 2015, previous re-election in 2021 2024. 
Member of the Board of Directors of A.P. Moller – Maersk A/S, CaixaBank SA and Vodafone PLC 6/7 5/5 5/6. 
Claudia NEMAT** 53, F, German Independent 2016, previous re-election in 2019 2022 Member of the Board of Management of Deutsche Telekom AG 7/7 5/5. 
Carlos TAVARES*** 63, M, Portuguese. 
Independent 2016, previous re-election in 2019 2022 Chief Executive Officer of Stellantis N.V. 6/7. 
Board and Committee meetings in 2021 7 5 5 6. 
Average attendance rate in 2021 98% 95% 100% 89% * As of 16 February 2022. Chair ** Proposed for re-election in 2022. *** Will not seek renewal of his mandate at AGM 2022. The professional address of all Members of the Board of Directors for any matter relating to Airbus SE is Mendelweg 30, 2333 CS Leiden, The Netherlands.
Global Business. 
Engineering & Technology. 
Manufacturing & Production. 
Aerospace Industry. 
Finance & Audit. 
Geopolitical Economics. 
Defence Industry. 
Information & Data Management. 
Asia Sustainability


4. Corporate Governance / 4.1 Management and Control 177 Airbus / Registration Document 2021 4
(ii) Curriculum Vitae and Other Mandates and Duties Performed in any Company by the Members of the Board of Directors in 2021. 
The Company has not appointed observers to the Board of Directors. Pursuant to applicable Dutch law, the employees are not entitled to elect a Director. There is no minimum number of shares that must be held by a Director.
René OBERMANN. 
CURRICULUM VITAE René Obermann is Co-Head of Europe and Managing Director of Warburg Pincus Deutschland GmbH, a leading global private equity firm that he joined in 2015. In addition, he is Deputy Chairman of the Supervisory Board at 1&1 IONOS Holding SE, a leading European web hosting and cloud company, and a Member of the Board of Directors at Inmarsat, a satellite network provider. René Obermann previously served as a member of the Board of various companies including Allianz Deutschland AG, Spotify and Telenor. René worked as CEO of Ziggo BV in The Netherlands in 2014 until the merger with LibertyGlobal’s UPC in November. Prior to Ziggo, René worked at Deutsche Telekom Group (DT) from 1998 until 2013. After running DT’s mobile Division (T-Mobile International), he was appointed as CEO of Deutsche Telekom AG in November 2006, where he remained until December 2013. René began his career with a business traineeship at BMW AG in Munich. Next, he founded his own business in 1986: ABC Telekom, a company distributing telecommunication equipment and providing technical services. After the acquisition of ABC Telekom by Hutchison Whampoa in 1991, René became Managing Partner of the resulting company: Hutchison Mobilfunk GmbH. Between 1993 and 1998, he was CEO of that company. From 2007-2013, René also served as Vice-President of the German Association for Information Technology, Telecommunications and New Media (BITKOM).
58 years old. 
Director since 2018, Re-elected in 2021. 
Independent. 
CURRENT MANDATES - Chairman of the Board of Directors of Airbus SE; - Co-Head of Europe, Managing Director and Head of Warburg Pincus Deutschland GmbH; - Deputy Chairman of the Supervisory Board of 1&1 IONOS Holding SE; - Member of the Board of Directors of Inmarsat.
FORMER MANDATES FOR THE LAST FIVE YEARS - Chairman of the Supervisory Board of 1&1 IONIS SE (until September 2021); - Member of the Supervisory Board of Allianz Deutschland AG (until March 2020); - Member of the Supervisory Board of Inexio Informationstechnologie und Telekommunikation KGaA (until September 2019); - Member of the Board of Directors of Telenor ASA (until August 2019); - Member of the Board of Directors of ThyssenKrupp AG (until August 2018); - Managing Director of Warburg Pincus LLC, London (until July 2018); - Member of the Supervisory Board of Compugroup Medical SE (until December 2017).


4. Corporate Governance / 4.1 Management and Control 178 Airbus / Registration Document 2021. 
Guillaume FAURY. 
CURRICULUM VITAE Guillaume Faury was appointed Airbus Chief Executive Officer (CEO) in April 2019 and leads the Company’s Executive Committee. He was previously President of Airbus’ commercial aircraft business, a role he had held since February 2018. Additionally, since April 2021, Guillaume is a member of the Board of Directors of AXA SA and since July 2021 he is the President of the Groupement des Industries Françaises de l’Aéronautique et du Spatial (GIFAS), the French aerospace industries association. Prior to this, Guillaume was Chief Executive Officer of Airbus Helicopters (2013-2018), where his achievements included restructuring its manufacturing system and introducing new technologies. Before that, he enjoyed a four-year spell in the car industry at Peugeot (2009-2013), the French automotive manufacturer, rising to become the Executive Vice-President for research and development and a member of the company’s management board. He presided over significant advances in Peugeot’s lower-emissions hybrid-engine technology and the overhaul of the company’s product range, among other accomplishments. Between 1998 and 2008, he held various leadership positions in engineering, programmes and flight testing in Airbus’ helicopter business, which at the time operated under the name of Eurocopter. He became Executive-Vice President for Programmes and a member of the Eurocopter Executive Committee, before being appointed as Executive Director for research and development. Guillaume began his career in 1992 as a flight-test engineer for the Eurocopter Tiger helicopter in the Direction Générale de l’Armement (DGA), the French government agency responsible for the development and purchase of defence systems for the French armed forces. He graduated from the École polytechnique in Paris in 1990 and, subsequently, from the École nationale supérieure de l’aéronautique et de l’espace in Toulouse. Guillaume’s love of flying and aviation dates back to his childhood. He is a qualified light-aircraft pilot and helicopter flight-test engineer with 1,300 hours of flying experience. He was born in 1968 in Cherbourg, Normandy, and is married with three children.
54 years old. 
Director since 2019. 
Executive. 
CURRENT MANDATES - Chief Executive Officer, Member of the Board of Directors and of the Executive Committee of Airbus SE; - President of Airbus SAS; - Member of the Advisory Board of AIRBUS GROUP VENTURES FUND II, L.P.; - Vice Chairman of the Board of Directors of AeroSpace and Defence Industries Association of Europe; - President of Groupement des Industries Françaises Aéronautiques et Spatiales (GIFAS); - Member of the Board of Directors of AXA SA.
FORMER MANDATES FOR THE LAST FIVE YEARS - Chairman of the Board of Directors of Airbus Canada Managing GP Inc. (until December 2021); - Chairman of the Board of Directors of Airbus US A220, Inc. (until December 2021); - Chairman of the Supervisory Board of Airbus Operations GmbH (until June 2020); - Chairman of the Board of Directors of Airbus Corporate Foundation (until April 2020); - Chairman of the Board of Directors of Airbus (China) Enterprise Management and Services Co. Limited (until November 2019); - Member of the Board of Directors of Airbus Africa and Middle east FZE (until November 2019); - Member of the Board of Directors of Airbus Americas, Inc. (until October 2019); - Member of the Board of Directors of Tallano Technologies SAS (until September 2019); - Chairman of the Board of Directors of Airbus Helicopters España, SA (until July 2018); - Member of the Supervisory Board of Airbus Helicopters Deutschland GmbH (until May 2018); - Managing Director (Directeur Général) of Airbus SAS (until April 2018); - President of Airbus Helicopters (SAS) (until April 2018); - President of Airbus Helicopters Holding (SAS) (until April 2018); - Chairman of the Board of Directors of Airbus Helicopters, Inc. (until April 2018); - Member of the Board of Directors of Airbus Defense and Space, Inc. (until February 2017).


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Victor Chu. 
CURRICULUM VITAE Victor Chu graduated as a lawyer in London. He was admitted to practice law in England and Hong Kong. After completing his training with Herbert Smith, the City law firm, Victor moved back to Hong Kong in 1982 with Herbert Smith. He has since handled a wide array of mandates in the field of corporate, commercial and securities law, with special emphasis on China and regional investment transactions. In late 1985, he founded Victor Chu & Co., which has become one of the leading law firms in Hong Kong. In 1988, Victor Chu created the First Eastern Investment Group, a Hong Kong based international investment firm which he leads since then as Chairman and CEO. First Eastern specialises in private equity investments, venture capital investments and investments in the expansion stage of business development. Victor Chu was part of the first wave of specialists in the Chinese market. He penetrated China early and built a lot of relationships at the highest level in the country. Victor Chu has been instrumental in gaining the confidence of major international investors and institutions ready to co-invest with First Eastern Investment Group. Key projects have included toll roads, water treatment operations, property and manufacturing industries and FinTech, as well as the launch of Japanese budget airline Peach Aviation. Victor Chu is an extremely respected business figure in Hong Kong and Asia. In addition to his business activities, he has been very active with several international institutions such as The World Economic Forum and The Royal Institute of International Affairs. He is also a generous philanthropist in the field of environmental protection (having served on Global Ocean Commission and WWF) and education (currently Chair of Council at University College London).
64 years old. 
Director since 2018, Re-elected in 2021. 
Independent. 
CURRENT MANDATES - Member of the Board of Directors of Airbus SE; - Chairman and CEO of First Eastern Investment Group; - Member of the Board of Grand Harbour Marina PLC; - Member of the Board of Camper & Nicholsons Marina Investments; - Member of the Board of FE Securities; - Member of the Board of Peach Aviation; - Member of the Board of Evolution Securities Asia; - Member of the Board of Sustainable Development Capital; - Co-Chair of the International Business Council (by World Economic Forum); - Senior Partner of Victor Chu & Co.
FORMER MANDATES FOR THE LAST FIVE YEARS - Alternate Member of the Board of China Merchants China Direct (until September 2021); - Member of the Board of China Merchants China Direct (until April 2020).


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Jean-Pierre Clamadieu. 
CURRICULUM VITAE Jean-Pierre Clamadieu graduated from École Nationale Supérieure des Mines de Paris before becoming Chief Engineer of the Corps of Mines. Between 1981 and 1993, he worked mainly for the French Ministry of lndustry and as Technical Advisor to the Minister of Labor. In 1993, Jean-Pierre Clamadieu joined RhônePoulenc to develop new activities in the field of automobile pollution control. ln the following years, he held several executive positions in the Rhodia group, as President of Rhodia’s Chemicals in Latin America, President of Rhodia Eco Services, Senior Vice-President for Rhodia Corporate Purchasing, President of Rhodia Organic Fine Chemicals Division and President of Rhodia Pharmaceuticals & Agrochemicals Division. In October 2003, Mr Clamadieu was appointed CEO of Rhodia, and became its Chairman & CEO in March 2008. Following a merger between Rhodia and the Belgian chemical group Solvay in 2011, Mr Clamadieu was appointed Chairman of the Executive Committee and CEO of the new Solvay group. Since his appointment, Jean-Pierre Clamadieu led the integration of the new group and its transformation into a major player in the field of specialty chemicals and advanced materials, which combines industrial competitiveness with the quest for sustainable solutions for its clients. His mandate at Solvay SA ended in March 2019. Since May 2018, Mr Clamadieu serves as Chairman of the Board of Directors of ENGIE, a French energy company. He also serves as a Member of the Board of Directors at AXA SA. Jean-Pierre Clamadieu also promotes an ambitious and coordinated European energy policy.
63 years old. 
Director since 2018, Re-elected in 2021. 
Independent. 
CURRENT MANDATES - Member of the Board of Directors of Airbus SE; - Chairman of the Board of ENGIE; - Member of the Board of Directors of AXA SA; - Chairman of the Board of Opéra National de Paris.
FORMER MANDATES FOR THE LAST FIVE YEARS - Chairman of the Executive Committee and CEO of Solvay SA (until March 2019); - Member of the Board of Solvay Specialty Chemicals Asia Pacific Pte. Ltd (Singapore) (until March 2019); - Director of Cytec Industries Inc. (until March 2019); - Director Cytec UK Holding Inc. (until March 2019); - Member of the Board of Solvay Finances SA (Luxembourg) (until March 2018); - Member of the Board of Faurecia SA (France) (until February 2018).


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Ralph Dozier Crosby, Jr.
CURRICULUM VITAE Ralph Crosby is a Member of the Board of Directors of Excelitas Holdings, LP, headquartered in Boston. Previously, he served until May 2021 as an Independent Director of American Electric Power headquartered in Columbus, Ohio, where he chaired the Human Resources Committee. He was Member of the Executive Committee of EADS from 2002 -2012 as well as Chairman and CEO of EADS North America from 2002 – 2009. Prior to joining EADS, Mr Crosby was an Executive within Northrop Grumman Corporation, where he had served as a Member of the Corporate Policy Council with positions including President of the Integrated Systems Sector, Corporate Vice President and General Manager of the company’s Commercial Aircraft Division and of the B-2 Division. Prior to his industry career, Mr Crosby served as an officer in the US Army, where his last military assignment was as military staff assistant to the Vice President of the United States. Mr Crosby is a graduate of the US Military Academy at West Point, and holds Master’s degrees from Harvard University, and the University of Geneva, Switzerland. He is the recipient of the James Forrestal Award from the National Defense Industrial Association and has been awarded Chevalier of the Légion d’Honneur of France.
74 years old. 
Director since 2013, Re-elected in 2020. 
Independent. 
CURRENT MANDATES - Member of the Board of Directors of Airbus SE; - Member of the Board of Directors of Excelitas Holdings, LP.
FORMER MANDATES FOR THE LAST FIVE YEARS - Member of the Board of Directors of Excelitas Holdings, LP (until May 2021); - Member of the Board of Directors and of the Executive Committee of the Atlantic Council of the United States (until August 2018); - Member of the Board of Directors (Supervisory Board) of Serco Group plc (until June 2017).


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Lord Drayson (Paul)
CURRICULUM VITAE Lord Drayson graduated as an engineer and finished his PhD in 1985 at Aston University. In 1987 he became Managing Director of The Lambourn Food Company Limited, a subsidiary of the Trebor Group and after a management buy-out of the Company in 1989, completed its sale to a third party in 1991. The same year, he founded Genisys Development Limited, a consultancy company for new products development and management. In 1993, he co-founded PowderJect Pharmaceuticals Plc and led its business as Chairman and CEO until it was sold to Chiron Corporation, a US company, in 2003. He co-founded Drayson Racing Technologies LLP in 2007. In 2014 he set up Drayson Technologies Ltd (currently named Sensyne Health Holdings Ltd), a biometric smart-card company of which he currently is the Chairman and which subsequently led to the spin-out of Sensyne Health plc, a clinical AI company of which he is the CEO. Lord Drayson was also elected Chairman of the UK BioIndustry Association in 2001 and was appointed to the House of Lords and a Member of the Science and Technology Committee of the House of Lords in 2004. He was then appointed Parliamentary under Secretary of State for Defence Procurement in 2005 and became Minister of State for Defence Equipment & Support in 2006 and Minister of State for Science & Innovation in 2008.
61 years old. 
Director since 2017, Re-elected in 2020. 
Independent. 
CURRENT MANDATES - Member of the Board of Directors of Airbus SE; - Founder and CEO of Sensyne Health plc; - CEO of Sensyne Health Holdings Ltd; - Chairman of Freevolt Group Ltd; - Co-founder and Trustee of the Drayson Foundation; - Science Entrepreneur in Residence of Magdalen College, Oxford; - Supernumerary Fellow of St. John’s College, Oxford; - Member of Her Majesty’s Privy Council; - Member of House of Lords; - Honorary Fellow of the Academy of Medical Sciences.
FORMER MANDATES FOR THE LAST FIVE YEARS - Director of Drayson Racing Technologies Limited (until September 2021); - Member of Project of the “Oxfordshire Innovation Engine” Project (until February 2018); - Trustee and External Member of Council at University of Oxford (until December 2017); - Chairman of the Executive Committee at OUC (Oxford University Clinic) Centres of Excellence LLP (until December 2017); - Non-Executive Director and Board Member of the Royal Navy (until November 2017).


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Mark DUNKERLEY. 
CURRICULUM VITAE Mark Dunkerley received his B.S. in Economics from The London School of Economics and Political Science and his M.S. in Air Transport Management from Cranfield University in the UK. Between 1989-1999, he held various senior positions at British Airways Plc. in a corporate strategy capacity as well as in regional roles in Europe and the USA encompassing notably the management of sales, marketing, customer services, operations, finance, industrial relations, human resources and alliances. Thereafter, Mr Dunkerley successively served as President and COO of Worldwide Flight Services, a leading multinational ground handling business, as Executive Vice-President at the San Francisco-based aviation consultancy firm, Roberts Roach & Associates and as COO at Sabena Airlines Group. In 2002, Mark Dunkerley joined Hawaiian Airlines, first as President and COO and from 2005 as President and CEO (including of the parent company, Hawaiian Holdings, Inc.) where he led the transformation of the company from bankruptcy into one of the world’s most successful airlines from which he retired in 2018. Mr Dunkerley currently serves as Non-Executive Director of Spirit Airlines Inc., a NASDAQ listed US airline and of Volotea Airlines, a privately-owned low-cost airline operating in Europe.
58 years old. 
Director since 2020. 
Independent. 
CURRENT MANDATES - Member of the Board of Directors of Airbus SE; - Member of the Board of Directors of Spirit Airlines Inc.; - Member of the Board of Directors of Volotea Airlines; - Member of the Board of Directors of Smithsonian Institution, National Air & Space Museum.
FORMER MANDATES FOR THE LAST FIVE YEARS - President, CEO and Board Member of the Board of Directors of Hawaiian Airlines Inc. (until March 2018); - President, CEO and Board Member of the Board of Directors of Hawaiian Holdings Inc. (until March 2018); - Member of the Board of Governors of IATA (until March 2018); - Member of the Board of Directors of Airlines of America (until March 2018); - Member of the Board of Directors of Hawaii Chamber of Commerce and Business Roundtable (until March 2018); - Member of the Board of Directors of Outrigger Enterprises (until January 2017).


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Stephan GEMKOW. 
CURRICULUM VITAE Stephan Gemkow (1960) studied business administration at the University of Paderborn and at the St. Olaf College in Minnesota, USA. From 1988 to 1990 he worked as a management consultant at BDO Deutsche Warentreuhand AG in Hamburg. Between 1990 and 2012, he held various management positions at Deutsche Lufthansa AG in Frankfurt and Washington, such as Sales Manager, Head of Investors Relations, Head of Corporate Finance and Human Resources for the Cargo Division which he accompanied through a major reorganisation. From 2006 to 2012, Mr Gemkow served as Chief Financial Officer and a member of the Management Board of Deutsche Lufthansa AG which he successfully lead through growth, global expansion as well as the financial crisis. In 2012, he took the position of Chief Executive Officer and Chairman of the Board of Directors of Franz Haniel & Cie, one of the largest family-owned investment holdings, based in Germany, where he drove the company through important restructuring and investment phases in a complex stakeholder management context and where he remained until June 2019. Mr Gemkow furthermore served as Chairman on the Supervisory Boards of TAKKT AG and Celesio AG (now known as McKesson Europe AG), and as member of the Supervisory Board of Evonik Industries AG. Stephan Gemkow currently holds positions as non-executive member in the Board of Directors of Amadeus IT Group, Flughafen Zürich AG and C.D. Waelzholz GmbH & Co. KG. Stephan Gemkow currently serves as senior advisor to BNP Paribas Group Germany since May 2021.
62 years old. 
Director since 2020. 
Independent. 
CURRENT MANDATES - Member of the Board of Directors of Airbus SE; - Member of the Board of Directors of Amadeus IT Group S.A.; - Member of the Board of Directors of Flughafen Zürich AG; - Member of the Board of Directors of C.D. Waelholz GmbH & Co. KG.
FORMER MANDATES FOR THE LAST FIVE YEARS - Member of the Board of Directors of JetBlue Airways Corporation (until March 2020); - CEO and Chairman of the Board of Directors of Franz Haniel & Cie. GmbH (until June 2019); - Chairman of the Supervisory Board of TAKKT AG (until May 2019); - Member of the Supervisory Board of Evonik Industries AG (until May 2017).


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Catherine Guillouard. 
CURRICULUM VITAE Catherine Guillouard began her career in 1993 at the Ministry of Economy in the French Treasury working for the department in charge of the Africa – CFA zone and later in the Banking Affairs Department. She joined Air France in 1997 as IPO Senior Project Manager. She was subsequently appointed Deputy Vice-President Finance Controlling in 1999, Senior Vice-President of Flight Operations in 2001, Senior Vice-President of Human Resources and Change Management in 2003 and Senior Vice-President of Finance in 2005. In September 2007, she joined Eutelsat as Chief Financial Officer and member of the Group Executive Committee. Ms Guillouard joined Rexel in April 2013 as Chief Financial Officer and Group Senior Vice-President. Between May 2014 and February 2017 she has been Deputy Chief Executive Officer of Rexel. On 2 August 2017, Ms Guillouard was appointed Chairwoman and Chief Executive Officer of RATP Group, the third largest urban transportation operator in the world with nearly 16 million daily passengers in 14 countries and 4 continents, a workforce of nearly 69,000 employees worldwide and a revenue of € 5.5 billion in 2020. In April 2020, Ms Guillouard became a member of the Supervisory Board of KPN, one of the leading telecommunications and IT providers, market leader in the Netherlands. Catherine Guillouard, born in 1965, is a graduate of the Institute of Political Studies of Paris and the École Nationale d’Administration and she has a PhD of European laws (Panthéon-Sorbonne).
57 years old. 
Director since 2016, Re-elected in 2019. 
Independent. 
CURRENT MANDATES - Member of the Board of Directors of Airbus SE; - Chairwoman and Chief Executive Officer of RATP Group; - Chairwoman of the Supervisory Board of RATP DEV; - Member of the Supervisory Board of KPN.
FORMER MANDATES FOR THE LAST FIVE YEARS - Member of the Supervisory Board of Systra (until July 2021); - Member of the Board of Directors of ENGIE (until May 2019); - Deputy Chief Executive Officer of Rexel (until February 2017).


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María Amparo Moraleda Martínez. 
CURRICULUM VITAE Amparo Moraleda graduated as an industrial engineer from the ICAI (Escuela Técnica Superior de Ingeniería Industrial) Madrid and holds a PDG from IESE Business School in Madrid. Between January 2009 and February 2012, she was Chief Operating Officer of Iberdrola SA’s International Division with responsibility for the United Kingdom and the United States. She also headed Iberdrola Engineering and Construction from January 2009 to January 2011. Previously, she served as General Manager of IBM Spain and Portugal (2001-2009). In 2005 her area of responsibility was extended to encompass Greece, Israel and Turkey as well. Between 2000 and 2001, she was executive assistant to the Chairman and CEO of IBM Corporation. From 1998 to 2000, Ms Moraleda was General Manager of INSA (a subsidiary of IBM Global Services). From 1995 to 1997, she was HR Director for EMEA at IBM Global Services and from 1988 to 1995 held various professional and management positions at IBM España. Ms Moraleda is also a member of various boards and trusts of different institutions and bodies. She is member of the academy of “Ciencias Sociales y del Medio Ambiente” of Andalucía (Spain), member of the Board of Trustees of MD Anderson Cancer Centre in Madrid, CurArte Foundation in Madrid, member of the International Advisory Board of Instituto de Empresa Business School and member of the Board of the global alumni association of IESE Business School. In May 2017 she was inducted as a member of the Spanish Royal Academy of Economic and Financial Sciences.
57 years old. 
Director since 2015, Re-elected in 2021. 
Independent. 
CURRENT MANDATES - Member of the Board of Directors of Airbus SE; - Member of the Board of Directors of Vodafone plc; - Member of the Board of Directors of Caixabank SA; - Member of the Supervisory Board of CSIC (Consejo Superior d’Investigaciones Cientificas); - Member of the Advisory Board of SAP Spain; - Member of the Advisory Board of Spencer Stuart Spain; - Member of the Board of Directors of Airbus Foundation; - Member of the Board of Trustees of Vodafone Foundation; - Member of the Board of Directors of A.P. Møller - Mærsk A/S.
FORMER MANDATES FOR THE LAST FIVE YEARS - Member of the Board of Directors of Solvay SA (until May 2021); - Member of the Board of Directors of Faurecia SA (until October 2017); - Member of the Advisory Board of KPMG Spain (until June 2017).


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Claudia Nemat. 
CURRICULUM VITAE Claudia Nemat has been a member of Deutsche Telekom’s Board of Management since 2011. She was responsible for the Board area Europe and Technology until the end of 2016 and has been responsible for Technology and Innovation since January 2017. Before joining Deutsche Telekom AG, Claudia Nemat spent 17 years working McKinsey&Company where she was elected Partner in 2000, and Senior Partner in 2006. She co-led McKinsey’s global Technology Sector and had a number of interim management roles with global IT clients, ensuring disaster recovery of large IT projects, and acting as interim CEO. She focuses on digital transformation, the impact of new technologies like artificial intelligence on business models, our work and lives, technology and product innovation, as well as IT transformation, security and crisis management. She has worked in different European countries as well as the United States and was a member of the Supervisory Board of Lanxess for several years. Since 2016, she has been a member of the Board of Airbus, as well as the Supervisory Board of Airbus Defence. Claudia Nemat studied physics at the University of Cologne and taught at the Institute of Mathematics and Theoretical Physics.
53 years old. 
Director since 2016, Re-elected in 2019. 
Independent. 
CURRENT MANDATES - Member of the Board of Directors of Airbus SE; - Member of the Board of Directors of Airbus Defence and Space GmbH; - Member of the Management Board of Deutsche Telekom AG; - Chairperson of the Supervisory Board of Deutsche Telekom IT GmbH; - Member of the University Council of University of Cologne; - Member of the Executive Committee of Deutsche Gesellschaft für Auswärtige Politik e.V.; - Member of the Supervisory Board of T-Systems International GmbH; - Vice-Chairwoman of the Supervisory Board of Deutsche Telekom Security GmbH.
FORMER MANDATES FOR THE LAST FIVE YEARS - Chairperson and Member of the Board of Buyln (related to Deutsche Telekom) (until January 2017); - Member of the Board of OTE (related to Deutsche Telekom) (until January 2017).


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Carlos Tavares. 
CURRICULUM VITAE Carlos Tavares is a graduate of École Centrale Paris. He held a number of different positions with the Renault Group from 1981 to 2004 before joining Nissan. In 2009, he was appointed Executive Vice-President, Chairman of the Management Committee Americas and President of Nissan North America. He was named Group Chief Operating Officer of Renault in 2011. Since 1 January 2014, he has joined the Managing Board of PSA Peugeot Citroën. He was named Chairman of the Managing Board since 31 March 2014. On 16 January 2021, Peugeot SA merged into Stellantis N.V. and Mr Tavares was appointed as Chief Executive Officer of Stellantis N.V. Mr. Tavares does not seek renewal of his mandate as Member of the Board of Directors of Airbus SE at the AGM 2022. 63 years old. 
Director since 2016, Re-elected in 2019. 
Independent. 
CURRENT MANDATES - Member of the Board of Directors of Airbus SE; - Chief Executive Officer of Stellantis N.V.
FORMER MANDATES FOR THE LAST FIVE YEARS - Chairman of the Managing Board of Peugeot SA (until merger January 2021); - Member of the Board of Directors of Total SA (until May 2020); - Director of Faurecia SA (until October 2018).


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Independent Directors The Independent Directors appointed pursuant to the criteria of independence set out above are René Obermann, Ralph Crosby Jr., Catherine Guillouard, Victor Chu, Lord Paul Drayson, Maria Amparo Moraleda Martinez, Claudia Nemat, Carlos Tavares, Jean-Pierre Clamadieu, Mark Dunkerley and Stephan Gemkow.
Prior Offences and Family Ties To the Company’s knowledge, none of the Directors (in either their individual capacity or as Director or senior manager of any of the entities listed above) has been convicted in relation to fraudulent offences, been the subject of any bankruptcy, receivership or liquidation, or companies put into administration nor been the subject of any official public incrimination and/or sanction by a statutory or regulatory authority, nor been disqualified by a court from acting as a Member of the administrative, management or supervisory bodies of any issuer or conduct of affairs of any company, during at least the last five years. As of the date of this document, there are no family ties among any of the Directors.
(iii) Operation of the Board of Directors in 2021. 
Board of Directors Meetings Seven Board of Directors (the “Board”) meetings were held in 2021. The average attendance rate at these meetings was 98%. In addition, informal meetings and ad hoc calls took place on specific matters, such as Enterprise Risk Management (“ERM”) and certain programmes and the Board was regularly informed of developments through reports from the CEO, including the evolution of the COVID-19 situation at Airbus, the impact of the geopolitical developments and the progress made on major projects, strategic plan implementation and operational activities.
In 2021, an important part of the Board’s activities remained directly or indirectly related to the COVID-19 crisis, notably looking into the definition of the post COVID-19 priorities. The Board continued to review and discuss the operational and commercial situation of programmes, as well as the overall financial situation of the Company. In order to ensure the necessary financial flexibility in view of potential and significant cash requirements related to the COVID-19 crisis, the Board decided that no dividend proposal would be submitted to the 2021 AGM as it was the case in 2020.
In relation to Commercial Aircraft, the Board’s activities comprised inter alia regular reviews of market developments, sales, supply chain matters, production status and ramp-up planning, as well as discussions and decisions concerning the launch of the new A350 Freighter derivative in July 2021. In addition, a particular focus was put on the aerostructure assembly industrial restructuring initiative.
For Defence and Space, the Board activities concerned notably the progress of the Future Combat Air System and Eurodrone programmes, and the challenges and opportunities of the Company in the Space businesses.
With regards to Helicopters, the Board focused its review on the overall market situation, the developments in military projects and on urban air mobility.
The Board dedicated a full session in 2021 to the reviewing of key aspects of the Company’s strategy, (and decided to carry out additional and focused strategy sessions for the Defence and Space division in 2022). During this strategy off-site Board meeting, held in Airbus Helicopters’ premises in Donauworth, the Board also visited the industrial site including the Urban Air Mobility development centre, the H135 and H145 assembly lines, and the aircraft doors production site.
Throughout the year, the Board reviewed the Company’s financial results and, its forecasts, as well as maintaining an emphasis on both ERM and internal controls.
The Board also reviewed and discussed a number of sustainability matters of major importance to the Company such as safety, notably with the formalisation of a protocol for the sharing of product safety-related information with the Board. Another example is the Greenhouse Gas Scope 3 emissions disclosure which was included, for the first time, in the 2020 Non-Financial Statement.
Human capital matters such as required skills and competences, remuneration and retention schemes, employer attractiveness etc. were frequently addressed or discussed. The Board worked on succession planning of Board Members in general, prepared specifically for the appointment of a new non-Executive Director in 2022 and discussed a talent pipeline for future changes within the Board with a strong focus on improving (gender) diversity. In 2021, the Board of Directors also played a key role in management succession planning resulting in the implementation of a number of changes within the Executive Committee of the Company, including the nomination of Sabine Klauke, Chief Technical Officer, Catherine Jestin, EVP Digital and Transformation Management and Alberto Gutierrez, Chief Operating Officer for the Commercial Aircraft business. Following these changes three of the Executive Committee’s 12 members are female. In parallel,
There are no changes in the composition of the Board in the course of 2021.
CHANGES IN THE BOARD COMMITTEE IN THE COURSE OF 2021. 
Until 2021 AGM From 2021 AGM(1)
Committee Name Status Name Status. 
Audit Committee Mr. Ralph D. CROSBY, Jr. Member N/A. 
Ethics, Sustainability & Compliance Committee. 
N/A Mr. Ralph D. CROSBY, Jr. Member (1) Further information on the Committee members can be found in the above tables “Airbus SE Board of Directors until AGM 2022” and “Changes in the Board Committee composition in the course of 2021”.


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Following the settlements reached with the French, UK and US authorities in January 2020 in relation to the Serious Fraud Office / Parquet National Financier / US Department of Justice / US Department of State investigations, the Board of Directors and its Ethics, Compliance and Sustainability Committee remained fully committed and provided full support throughout the year to the post-settlement activities. The Board continued (and will continue) to pay close attention to the Company’s active engagement with its shareholders, so that Airbus’ approach to governance, compliance and sustainability is well understood and reflects shareholders’ expectations to the extent possible.
Board Evaluation 2021 The Board of Directors implemented a continuous evaluation process based on a three-year cycle. As part of this process, every three years, a formal evaluation of the functioning of the Board of Directors and its Committees is conducted with the assistance of a third-party expert. In the year succeeding such an outside evaluation, the Board of Directors performs a selfevaluation and focuses on the implementation of the improvement action plan resulting from the third-party assessment. In the intervening second year, the General Counsel, being also the Secretary of the Board, issues a questionnaire and consults with Board Members to establish an internal evaluation which is then discussed with them.
Following the decision in 2020 to extend the Board Review cycle for one more year, due to the changes to the Board during 2019 and 2020, the year 2021 was the beginning of a new threeyear cycle. The review was carried out between September and December 2021 by an external advisor, Korn Ferry, based on an extensive questionnaire and detailed interviews with each Director. The questionnaire covered Board and Committee processes, Board composition and structure, culture and dynamics, the relationship between the Board and Management, the role of the Chairman, the contribution of the Directors, the strategic alignment of the Board and the value it adds.
The review confirmed the Board’s overall strong performance. Directors were found to be committed, experienced and of high calibre, and the Board to be well supported by the Corporate Secretary. Furthermore, the Board is continuing to develop and enhance its capabilities. Its membership offers a diverse mix of experience, business leadership, functional and technical experience, and nationality. The relationships between the Directors themselves and between the Directors and Management have created an environment of constructive challenge as well as direct and straightforward interaction and debate, and the culture is collegiate and collaborative. The Chairman is proactively leading the strategic agenda of the Board and promoting a collaborative culture. He has developed an open, transparent and effective working relationship with the CEO that has been instrumental in improving the impact of the Board. All the Committees are operating well, integrate properly with the governance accountability of the Board, and are led by effective and experienced Committee Chairs.
Notwithstanding this favourable feedback, the review identified some opportunities for the Board to further improve its effectiveness and contribution. These were primarily in the areas of rebalancing the agenda to provide greater scope for strategic debate, improving analysis provided to the Board in support of strategic decision making and portfolio management, including meeting materials, and maximising the value contributed by the Board through deeper engagement and alignment with Management. Also highlighted was the value of providing the Board with access to deeper insights across a range of topics, including geopolitics, technological developments, energy transition and industrial transformation, ESG issues, the competitive environment and management succession planning. Finally, continuous efforts should be made to enhance the diversity of the Board across multiple perspectives in order to embrace the challenges of the future.
4.1.1.2 Board Committees a) The Audit Committee. 
The Audit Committee has four (4) Members and is chaired by an Independent Director who is not the Chair of the Board of Directors or a current or former Executive Director of the Company. The Chair of the Audit Committee shall be, and the other members of the Audit Committee may be, financial experts with relevant knowledge and experience of financial administration and accounting for listed companies or other large legal entities.
Pursuant to the Board Rules, the Audit Committee, which is required to meet at least four times a year, makes recommendations to the Board of Directors on the approval of the annual financial statements and the interim accounts (Q1, H1, Q3), as well as the appointment of external auditors and the determination of their remuneration. Moreover, the Audit Committee has responsibility for verifying and making recommendations to the effect that the internal and external audit activities are correctly directed, that internal controls are duly exercised and that these matters are given due importance at meetings of the Board of Directors. Thus, it discusses with the auditors their audit programme and the results of the audit of the financial statements, and it monitors the adequacy of the Company’s internal controls, accounting policies and financial reporting. It also oversees the operation of the Company’s ERM system and keeps a strong link to the Ethics, Compliance and Sustainability Committee. For further details in this regard, see “– 4.5: Enterprise Risk Management System”. Please refer to Annex E of the Board Rules for a complete list of responsibilities of the Audit Committee.
The Chairman of the Board of Directors and the CEO are invited to the Audit Committee meetings. The CFO and the Head of Accounting Record to Report are requested to attend meetings to present management proposals and to answer questions. Furthermore, the Head of Corporate Audit & Forensic and the Chief Ethics & Compliance Officer are requested to report to the Audit Committee on a regular basis.
In 2021, this Committee met five times with an average attendance rate of 95%. It fully performed all of the duties and discussed all of the items described above. In particular, it performed reviews of internal controls, corporate audit (including major findings and audit plan for 2021), accounts (i.e. 2020 full year accounts, 2021 Q1, H1 and Q3 accounts, specific provisions and accounting items, operative planning and forecasts) and independence of external auditors. In addition, regular ERM, legal and compliance updates were presented to the Audit Committee and discussed in meetings. The inclusion of Airbus within the German DAX 40 was also addressed.


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b) The Ethics, Compliance and Sustainability Committee. 
To reinforce the role and involvement of the Board of Directors on sustainability-related topics, the remit of the former Ethics & Compliance Committee established in 2017 was extended to sustainability matters in July 2020. The Committee was renamed the Ethics, Compliance and Sustainability Committee (“EC&S Committee” or “ECSC”) and the Board Rules have been amended accordingly. The main mission of the EC&S Committee is to assist the Board of Directors in overseeing the Company’s culture and commitment to ethical business, integrity and sustainability. The EC&S Committee is empowered to monitor the Company’s Ethics & Compliance programme, organisation and framework in order to make sure that the Company’s Ethics & Compliance governance is effective (including all associated internal policies, procedures and controls). This includes the areas of money laundering and terrorist financing, fraud, bribery and corruption, trade sanctions and export control, data privacy, procurement and supply chain compliance and anti-competitive practices.
The EC&S Committee is also empowered to oversee the Company’s sustainability strategy and effective governance and ensure that sustainability related topics are taken into account in the Company’s objectives and strategy.
The EC&S Committee makes recommendations to the Board of Directors and its Committees on all Ethics, Compliance or Sustainability-related matters, and is responsible for providing to the Audit Committee any necessary disclosures on issues or alleged ethical and compliance breaches that are financial and accounting-related. The EC&S Committee maintains a reporting line with the Chief Ethics & Compliance Officer, who is requested to provide periodic reports on its activities.
The Chairman of the Audit Committee and the Chairman of the RNGC are members of the EC&S Committee. Unless otherwise decided by the EC&S Committee, the CEO and the Chairman of the Board of Directors are invited to attend the meetings. From time to time, independent external experts are also invited to attend EC&S Committee meetings.
The EC&S Committee is required to meet at least four times a year. In 2021, the EC&S Committee met in total six times with an average attendance rate of 89%. All of the above described items were discussed during the meetings and the EC&S Committee fully performed all the above described duties. In particular, following the settlements reached with the French, UK and US authorities in January 2020 in relation to the Serious Fraud Office / Parquet National Financier / US Department of Justice / US Department of State investigations, the Committee performed regular reviews of the post settlements activities (including compliance and export control updates). Notably, regular updates on the activities of the ITAR Special Compliance Officer, appointed in 2020 under the Consent Agreement with the US State Department and on the monitoring of the Agence Française Anti-Corruption (AFA) were provided. The Committee also held discussions on the management of data privacy at Airbus. Regarding Sustainability, the EC&S Committee discussed the Scope 3 disclosure included for the first time in the 2020 Non-Financial Statement and reviewed the 2021 key priorities, Sustainability roadmaps, dashboard and KPIs. In addition, the EC&S Committee reviewed stakeholders’ expectations on Sustainability issues including climate and reporting standards.
c) The Remuneration, Nomination and Governance Committee. 
Pursuant to the Board rules, besides its role described in section 4.1.1 above, the RNGC consults with the Chairman and the CEO with respect to proposals for the appointment of the members of the Executive Committee, and makes recommendations to the Board of Directors regarding the appointment of the Secretary to the Board of Directors. The RNGC also makes recommendations to the Board of Directors regarding succession planning (at Board of Directors, Executive Committee and Senior Management levels), remuneration strategies and long-term remuneration plans. Furthermore, the RNGC oversees contractual matters in relation to the members of the Board and the Executive Committee, including the terms and conditions of the relevant contracts, and the preparation of the remuneration policy for approval by the Board. The rules and responsibilities of the RNGC have been set out in the Board rules.
In addition, the RNGC reviews the Company’s top talent, discusses measures to improve engagement and to promote diversity, as well as reviewing the remuneration of the Executive Committee members, the Long-Term Incentive Plans (“LTIP”), and the variable pay for the previous year.
Finally, the RNGC performs regular evaluations of the Company’s corporate governance and makes proposals for changes to the Board Rules or the Articles of Association.
Unless otherwise decided, the Chairman of the Board of Directors and the CEO are invited to attend meetings of the RNGC. The Chief Human Resources Officer (“CHRO”) is requested to attend meetings to present management proposals and to answer questions. The CEO leaves the meetings when the RNGC discusses his / her remuneration or personal situation.
Pursuant to the Board Rules, the Chair of the RNGC automatically fulfils the function of “Lead Independent Director”. In this role he / she is responsible for (i) replacing the Chairman in his / her absence at meetings of the Board of Directors, (ii) organising the annual appraisal of the Chairman’s performance by the Board of Directors and (iii) acting as an intermediary for and between the other Directors when necessary.
The RNGC is required to meet at least four times a year. In 2021, it met five times with an attendance rate of 100%. It discussed all of the above described items during the meetings and it fully performed all of the above described duties. In particular, the RNGC further discussed the adaptation of the remuneration strategy to properly address the emerging risks of attracting and retaining key talent. The RNGC also continued to work on a 360 feedback exercise for the CEO and to perform reviews of the top management succession plan and, more generally, of key talents. Changes within the Executive Committee were discussed in meetings and implemented in 2021 (see above in the Board of Directors operations section). The Committee held regular discussions on diversity, including gender diversity, in particular at Board and top management levels. The RNGC also worked on the Board of Directors succession plan, with a strong focus on gender diversity.


4. Corporate Governance / 4.1 Management and Control 192 Airbus / Registration Document 2021 4.1.1.3 The Executive Committee a) Nomination and Composition. 
The Executive Committee of Airbus (the “Executive Committee”) is chaired by the Chief Executive Officer and its members are appointed on the basis of their performance of their individual responsibilities as well as their respective contribution to the overall interest of Airbus.
The CEO proposes all of the Members of the Executive Committee for approval by the Board of Directors, after consultation with (i) the Chairman of the RNGC and (ii) the Chairman of the Board of Directors, applying the following principles: – the preference for the best candidate for the position; – the maintenance, in respect of the number of Members of the Executive Committee, of the observed balance among the nationalities of the candidates in respect of the location of the main industrial centres of the Company (in particular among the nationals of France, Germany, Spain and the United Kingdom, where these main industrial centres are located); and – at least two-thirds of the Members of the Executive Committee, including the CEO and the CFO, being EU nationals and residents.
The Board of Directors determines, by simple majority vote, whether to approve all of the Members of the Executive Committee as proposed by the CEO.
b) Role of the CEO and Executive Committee. 
The CEO is responsible for executing the strategy, as approved by the Board of Directors, and for managing the day-to-day operations of the Company’s business with the support of the Executive Committee (“EC”) and its executive leadership team through Executive Leadership Meetings (“ELM”) in which the EC members participate. The CEO shall be accountable for the proper execution of the day-to-day operations of the Company’s business.
ELMs are held on a regular basis and aim at advising the CEO on his day-to-day role, as well as ensuring that EC members report back on business progress, updates and concerns, addressing Company-wide topics including corporate matters, approving all vacancies and promotions above certain levels.
The EC further supports the CEO in performing these tasks. Under the leadership of the CEO, the EC is responsible for business strategy as well as organisational matters and management of the business, monitoring key projects / products and major investments, overseeing performance targets, whether it be financial, individual, programmes or support functions, outlining policies to motivate, recruit and retain employees. It is also accountable for regulatory and statutory obligations along with policy matters, communications and market disclosures. It is also the forum where the information or requests for approval destined for the Board of Directors are discussed and approved. The EC members shall jointly contribute to the overall interests of the Company, in addition to each member’s individual operational or functional responsibility within the Company.
The EC comprises the heads of the Divisions and key functions of the Company.
The CEO is the only Executive Director within the Board of Directors and represents the Company on the Board of Directors. Depending on the topic, he usually asks the responsible EC member to join him at Board meetings to present the financials (CFO), programme / product topics (Division heads), HR matters (CHRO) or any other topic where a specialist is needed. This approach allows the Board Members to get to know the EC members and equips them to make judgements when it comes to decisions about key positions.
c) The Executive Committee in 2021. 
The EC comprises the heads of the Divisions and key functions of the Company. The CEO is the only Executive Director within the Board of Directors and represents the Company on the Board of Directors. Depending on the respective topic, he usually asks the responsible EC Member to join him in the Board for presenting the financials (CFO), programme / product topics (Division head), HR matters (CHRO) or any other topic where a specialist is needed. This approach allows Board Members to get to know the EC members and equips them to make judgements when it comes to decisions about key positions.
The Executive Committee met four times during 2021.


4. Corporate Governance / 4.1 Management and Control 193 Airbus / Registration Document 2021 4. 
COMPOSITION OF THE EXECUTIVE COMMITTEE AS OF 31 DECEMBER 2021. 
Name Start of term Principal Occupation. 
Guillaume Faury 2018 Chief Executive Officer Airbus. 
Dominik Asam 2019 Chief Financial Officer. 
Thierry Baril 2012 Chief Human Resources Officer. 
Bruno Even 2018 Chief Executive Officer Airbus Helicopters. 
Alberto Gutiérrez 2021 Chief Operating Officer. 
John Harrison 2015 General Counsel. 
Catherine Jestin 2021 Executive Vice President Digital and Information Management. 
Julie Kitcher 2019 Executive Vice-President Communications and Corporate Affairs. 
Sabine Klauke 2021 Chief Technical Officer. 
Philippe Mhun 2019 Executive Vice-President Programmes and Services. 
Christian Scherer 2019 Chief Commercial Officer and Head of Airbus International. 
Michael Schöllhorn 2019 Chief Executive Officer Airbus Defence and Space. 
Antoine Bouvier 2019 Head of Strategy, Mergers & Acquisitions and Public Affairs. 
C. Jeffrey Knittel 2021 Chairman and Chief Executive Officer Airbus Americas. 
George Xu 2018 Chief Executive Officer Airbus China. 
Note: Status as per 31 December 2021. The professional address of all Members of the Executive Committee for any matter relating to Airbus is Mendelweg 30, 2333 CS Leiden, The Netherlands.
Guillaume Faury – Chief Executive Officer Airbus (see above under “– 4.1.1.1 Board of Directors”)
Dominik Asam – Chief Financial Officer. 
Dominik Asam is Chief Financial Officer (CFO) of Airbus and a Member of the Executive Committee.
Dominik Asam joined Airbus in April 2019 from Munich-based Infineon Technologies AG, where he had been CFO since 2011. During eight years he was responsible for functions including Group Controlling, IT, Treasury, Investor Relations, Compliance & Risk Management, Export Control and Sustainability and Business Continuity.
Previously, Dominik Asam was Head of Group Controlling at RWE AG in 2010.
Between 2005 and 2010 he held various positions at Siemens AG such as CEO of Siemens Financial Services and Corporate VicePresident and Treasurer.
From 2003 to 2005, Asam headed Investor Relations, Mergers & Acquisitions and Strategy at Infineon Technologies.
Dominik Asam began his professional career in 1996 in the Investment Banking Division of Goldman Sachs Inc. with postings in Frankfurt, London and New York.
A graduate in Mechanical Engineering from the Technical University of Munich and the École Centrale Paris, Dominik Asam holds a Master’s in Business Administration from INSEAD (European Institute of Business Administration).
Thierry Baril – Chief Human Resources Officer. 
Thierry Baril was appointed Chief Human Resources Officer of Airbus on 1 June 2012.
Thierry Baril joined Airbus Commercial Aircraft in 2007 as Executive Vice-President, Human Resources, and Member of the Airbus Commercial Aircraft Executive Committee, with responsibility for defining and implementing a company-wide Human Resources strategy, enhancing integration and employee engagement. He oversaw the development of key skills and competences to support business growth and greater internal mobility. One of his main achievements was the transformation of the Company in the areas of leadership culture and diversity, having played a key role in the implementation of “Power8” and Airbus’ internationalisation strategy.
Prior to this, Thierry Baril was Executive Vice-President Human Resources at Eurocopter – now Airbus Helicopters – and member of the Eurocopter Executive Committee from January 2003. In this position, Thierry Baril managed the Company’s Human Resources activities globally, including the implementation of Human Resources policies across Eurocopter’s European sites and its 15 subsidiaries worldwide. He was instrumental in the implementation of “Vital”, a programme which transformed Eurocopter as a business.
Thierry Baril started his career in 1988 as Deputy Human Resources Director at Boccard SA, and transferred to Laborde & Kupfer-Repelec, a subsidiary of GEC ALSTHOM, as Human Resources Manager in 1991.
From 1995, Thierry Baril held roles as Human Resources Director of the Alstom Energy Belfort site and Vice-President of Human Resources of the Alstom Energy Group.


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Following on from his experience at Alstom Energy, in 1998 Thierry Baril became Managing Director of Human Resources for Europe for GE (General Electric) at their Belfort Headquarters, followed by Vice-President of Human Resources at Alcatel Space’s Headquarters in Toulouse from 2000.
Thierry Baril holds a University Degree in Personnel Management (Diplôme Universitaire de Technologie en Gestion des Entreprises et des Administrations), as well as a Business Page 2 of 2 Degree in Human Resources Management and Development from the Institut de Gestion Sociale (IGS) in Paris.
Thierry Baril was born in February 1965 in Suresnes, France. In 2007, he was appointed as a Chevalier de l’Ordre National du Mérite and was further commended as a Chevalier de l’Ordre National de la Légion d’Honneur in 2012. In 2013, he was named HR Director of the year by Hudson, Le Figaro Economie and Cadremploi Group.
Bruno Even – Chief Executive Officer – Airbus Helicopters. 
Bruno Even was appointed Chief Executive Officer (CEO) of Airbus Helicopters as of 1 April 2018. He is a Member of the Airbus Executive Committee.
He joined the Company from Safran, where he held various management positions at the Helicopter Engines and Electronic & Defence businesses. Since 2015, he served as Chief Executive Officer of Safran Helicopter Engines (ex-Turbomeca). Prior to that position, he was CEO of Safran Electronics & Defence (exSagem).
Bruno Even graduated from the École Polytechnique and began his professional career in 1992 at the French Ministry of Defence, where he was in charge of developing the space component for the Helios II satellite.
In 1997, he transferred to the Ministry of Foreign Affairs to become technical advisor for the Director of Strategic Affairs, Security and Disarmament. He moved to the private sector and joined Safran in 1999.
Alberto Gutiérrez – Chief Operating Officer. 
Alberto Gutiérrez has been Chief Operating Officer (COO) of Airbus since 1 July 2021 and is a member of the Company’s Executive Committee.
He leads the production, quality and procurement organisations. His overriding goal is to ensure the speed, efficiency and quality of aircraft production at Airbus.
As the Company embarks on an era of digital and series manufacturing, Alberto’s role is to implement continuous operational excellence and to develop the production system of the future. In addition, he is Head of Airbus Spain, in charge of overseeing the Company’s overall business activities in the country.
He was previously Head of Military Aircraft within Airbus Defence and Space and a member of the Division’s Executive Committee since 1 January 2019, after having led Operations for Airbus Military Aircraft since July 2017, and Combat Air Systems since January 2016.
He was CEO for Eurofighter GmbH from 2013 to 2015, and Chief Operating Officer (COO) for Airbus Military from 2007 to 2013.
In this role he was responsible for the worldwide operations of the military aircraft business, including manufacturing and production in all the different sites of the company, setting up the A400M Final Assembly Line in Seville, the A330 Tanker Conversion Centres in Madrid, Brisbane (Australia) and Bournemouth (UK), the revitalisation of the Indonesian Aerospace Industry and the restructuring of the company’s Polish subsidiary in Warsaw PZL as well as the defence business in Portugal through the Portuguese Company OGMA.
Alberto Gutiérrez´s career started in 1985 as a young engineer in the former CASA in Getafe, working and gaining experience in different positions in Manufacturing and Production, IT, Planning and Programmes.
Alberto Gutiérrez has a Telecommunications Engineering degree from the Universidad Politécnica of Madrid and holds a master in Information System Management.
John Harrison – General Counsel. 
John Harrison has been General Counsel since June 2015 and he is a member of the Airbus Executive Committee.
Solicitor of the Supreme Court of England & Wales, John Harrison completed his academic studies at the University of McGill, Montréal, Canada. He holds a Bachelor LLB (Hons) and Masters LLM of Laws degree.
John Harrison began his career in 1991 at the international law firm Clifford Chance, working consecutively in their London, New York and Paris offices.
He joined Airbus then Technip S.A. where he served as Group General Counsel and Member of the Executive Committee from 2007 to 2015.
Prior to joining Technip, Mr Harrison fulfilled various senior legal positions in Airbus companies over a ten year period culminating his tenure from 2003 to 2007 as General Counsel of the EADS Defence Division.
John Harrison was born on 12 July 1967 in the United Kingdom.
Catherine Jestin – Executive Vice President Digital and Information Management. 
Catherine Jestin has been Executive Vice President Digital and Information Management at Airbus since 1 July 2021 and is a member of the Company’s Executive Committee.
The main focus of Catherine’s organisation is to foster digital innovation across Airbus’ industrial ecosystem and its products and services portfolio, accelerating data analytics, artificial intelligence, automation and services for customers as well as digital security for the Company.
Catherine works to reinforce the transversal cooperation across Airbus functions company-wide in order to continue the successful deployment of the Digital Design, Manufacturing & Services (DDMS) programme, established to enable co-design capabilities and digital continuity system-wide.
Catherine had previously held the position of Chief Information Officer (CIO) at Airbus since March 2020. In this role, she was responsible for driving state-of-the-art Information Technology systems and solutions in support of Airbus employees, customers and suppliers.


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Prior to this position, Catherine was Chief Information Officer at Airbus Helicopters, a role that she held from July 2013 to February 2020.
Before joining Airbus, Catherine held a variety of positions, between 2007 and 2013, at Rio Tinto in Montreal, Canada within the field of Information Systems & Technology (IS&T). Catherine also spent 17 years at Accenture and was nominated Partner in 2002, a position that she held for five years. 
Julie Kitcher – Executive Vice-President Communications and Corporate Affairs. 
Julie Kitcher is EVP Communications and Corporate Affairs of Airbus and a member of the Executive Committee, reporting to the CEO. Julie also serves as the Chief of Staff to the CEO.
Julie heads Communications. In addition, she drives Airbus ambition and contribution to sustainable aerospace. Her role also oversees and coordinates the transformation agenda of Airbus, Performance Management, Corporate Audit and Internal Controls.
Julie has over 20 years of experience at Airbus. She has held a number of roles in Finance including Financial Analyst, Corporate Planning and Business Controlling.
Most recently and prior to her current position, Julie was the Head of Investor Relations and Financial Communication. Under Julie’s leadership, Airbus was awarded the “Most Honoured Company” status in the Institutional Investor All Europe Executive Team survey four years in a row -2015 to 2018. As part of this recognition, Julie was named “Best Investor Relations Professional” in the Aerospace & Defence sector for the same period.
She also previously held a role in GE Capital Equipment Finance in the UK. Julie is a Chartered Management Accountant (CIMA) with an MSc from ESC Skema (Lille).
Sabine Klauke – Chief Technical Officer. 
Sabine Klauke has been Chief Technical Officer at Airbus since 1 July 2021 and is a member of the Company’s Executive Committee.
In this role, Sabine drives the Company’s ambition behind delivering bold and breakthrough technologies to build the future of aerospace. She also leads a team of more than 11,000 Airbus engineers across the globe who design, develop, certify and ensure continuing airworthiness of all Commercial Aircraft products and services.
Previously, Sabine was Head of Engineering within Airbus Defence and Space and a member of the Division’s Executive Committee. In this capacity, she was responsible for all engineering activities within the Defence and Space division and in charge of its product and services portfolio. By managing the technology, development and innovation roadmap, she played a key role in preparing the future of Airbus Defence and Space.
Prior to this position, she served as Head of Programmes Customer Services: a responsibility she held for the A330/ A340 programmes since 2015. Sabine joined Airbus in 2002, where she has held positions of increasing responsibility within manufacturing engineering, production, product development programmes, development processes and change and innovation projects within the Airbus Commercial Aircraft division.
From 1998 to 2002 Sabine worked at DELMIA, a brand of Dassault Systèmes, where she carried out the deployment of digital manufacturing software and supported the development of the consulting and services department with customers in the automotive and the aerospace industries.
Sabine has a PhD in Mechanical Engineering from the University of Technology (TU) in Dresden and is a graduate of the INSA Hauts de France (formerly known as École Nationale Supérieure d’Ingénieurs en Mécanique Énergétique in Valenciennes (ENSIMEV)).
Philippe Mhun – Executive Vice-President Programmes and Services. 
Philippe Mhun was appointed as Chief Programmes & Services Officer for Airbus Commercial Aircraft, effective 1 January 2019, and a Member of the Company’s Executive Committee.
In his previous role as Head of Customer Services since October 2016, Philippe Mhun was responsible for all Airbus support and services activities for airline customers, lessors, MROs and operators, ranging from maintenance and engineering to training, upgrades and flight operations but also material management and logistical support. This included the supervision of the Services Business Unit and affiliated subsidiaries, such as Satair, Navblue, Airbus Interiors Services and Sepang. For the past two years, Philippe has initiated and implemented a major transformation programme focusing on Customer Satisfaction, Services development and digital enablers such as Skywise applications.
Prior to this assignment, Philippe was Senior Vice-President Procurement for Equipment, Systems and support, a position he held since 2013.
Philippe joined Airbus in November 2004 as Vice-President A380 Programme within Customer Services to prepare and support the A380 entry-into-service. He then became Vice-President Programmes in Airbus Customer Services leading Single Aisle, Long Range, Widebody, A380 and A350 Programmes together with e-operations and supplier support activities.
Before joining Airbus, Philippe held various positions within UTA and following the merger in 1993, within Air France, starting as a Structure Engineer for Boeing 747 at UTA all the way up to becoming the Head of Long-Haul Fleet Engineering and Maintenance in Air France. From 1986 to 2004, Philippe was involved in new programmes’ entry-into-service, engineering and maintenance at all levels of the Company.
Philippe Mhun holds a degree from the Applied Sciences National Institute (INSA Lyon) as a mechanical engineer.
Christian Scherer – Chief Commercial Officer and Head of Airbus International. 
Christian Scherer was appointed Airbus Chief Commercial Officer in September 2018 and is a Member of the Company’s Executive Committee. He is also heading Airbus International.
He was previously Chief Executive Officer of ATR, a position he held since November 2016.
Prior to this, Christian was Executive Vice-President and Head of Airbus Group International, responsible for driving the overall Airbus Group internationalisation strategy.


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Christian started his professional career in 1984 when he joined Airbus Industrie as a Commercial Contracts Manager. He was seconded to the US between 1987 and 1994 as Vice-President Contracts of Airbus North America, responsible for pricing, financial performance, negotiation and implementation of all sales transactions in North America.
On his return to headquarters, as Vice-President Leasing Markets, he developed and managed an integrated sales division covering all commercial activities dealing with operating leasing companies and other financial institutions worldwide.
In 1999, he was appointed Vice-President Contracts and Pricing worldwide while retaining leadership of the Leasing Markets Division and in 2003 he also became the Deputy Head of Commercial.
Following his time in Commercial, he became Head of Strategy and Future Programs at Airbus, responsible for defining Airbus’ long-term strategic objectives and for driving the genesis of future aircraft product offerings and programmes, such as the A320neo, as well as Airbus’ international development in terms of the US final assembly lines.
In 2012, he was appointed Head of Sales & International Operations at Cassidian in Munich, Germany, responsible for Sales, Marketing, Strategy and Cassidian’s International Subsidiaries including Brazil, India, KSA, UAE, UK and US.
Upon integration of Airbus’ Defence, Space and Military aircraft businesses, he became the Head of Marketing & Sales of Airbus Defence and Space and Managing Director of Airbus Defence and Space GmbH. In that role, he held the overall responsibility for all Sales & Marketing activities. He also chaired BDLI’s defence and security forum whilst being a member of the BDLI presidium.
Born in 1962 in Duisburg, Germany, and raised in Toulouse, France, Christian Scherer holds an MBA from the University of Ottawa and graduated from the Paris Business School (ESCP) in 1984.
Michael Schöllhorn – Chief Executive Officer Airbus Defence and Space. 
Michael Schoellhorn has been Chief Executive Officer (CEO) of Airbus Defence and Space since 1 July 2021 and is a member of Airbus’ Executive Committee, responsible for Airbus’s defence, space, unmanned air services and connected intelligence activities.
Previously, he was Airbus Chief Operating Officer (COO) and a member of the Company’s Executive Committee. In this position, he led the production, quality, procurement and information management organisations, transforming and building the production system of the future.
Michael joined Airbus in February 2019 from BSH Home Appliances GmbH in Munich, where he was COO and a member of the BSH Management Board from 2015.
Michael began his career in 1984 in the German armed forces, where he served as an officer and a helicopter pilot until 1994, with assignments in Germany and the US. Michael worked in academia as a research assistant at the Helmut Schmidt University (University of the German armed forces) in Hamburg (1994-1999). He started out his career with Bosch in 1999 and held various senior management positions in the automotive sector in the US, the Czech Republic and Germany before being appointed EVP for Manufacturing and Quality in 2012.
Michael is President of BDLI, the association of the German aviation industry as well as a presidium member of BDI, the association of the German Industry.
He is Chairman of the Supervisory Board of Airbus Operations GmbH, Managing Director of Airbus Defence and Space GmbH, member of the Board of Directors of Airbus Defence and Space Inc. US and member of the Board of Directors of Stratasys Ltd (NASDAQ: SSYS).
Michael Schöllhorn holds a degree in Mechanical Engineering and a PhD in Control Engineering from the Helmut Schmidt University.
Antoine Bouvier – Head of Strategy, Mergers & Acquisitions and Public Affairs. 
Antoine Bouvier has been appointed Head of Strategy, Mergers & Acquisitions and Public Affairs Airbus, effective 1 June 2019.
Antoine Bouvier joins Airbus from MBDA where he had been Chief Executive Officer (CEO) since June 2007.
From January 2002 to June 2007, he was CEO of Astrium Satellites (now part of Airbus Defence and Space).
Previously, he was Executive Vice-President in charge of the Commercial Helicopter Division of Eurocopter (now Airbus Helicopters).
In 1990, Antoine Bouvier joined Aérospatiale as Assistant to the Director of the company’s Civil Aircraft Division. In 1991, he became Director of the Division’s Department of Strategic Analysis.
From 1992 until 1994, he was Secretary General and Industrial Director of ATR GIE. From 1994 until 1998, he was Vice-President Operations of ATR, going on to become President of ATR GIE between 1998 and 2001.
Antoine Bouvier started his career as an auditor at the Cour des Comptes. He graduated from the École Polytechnique (19811984) and of the École Nationale d’Administration (1984 -1986).
C. Jeffrey Knittel – Chairman and Chief Executive Officer Airbus Americas. 
C. Jeffrey (Jeff) Knittel is the Chairman and CEO of Airbus Americas, Inc. In addition, he is the Head of Region for the Americas and as such reports directly to the Airbus CEO. He is responsible for Airbus’ commercial aircraft business throughout the Americas, as well as for providing leadership for the company’s market leading helicopter business and its space and defence unit in North America.
Additionally, Knittel chairs A3 by Airbus, the company’s Silicon Valley-based innovation arm; is a Board Member of Airbus Ventures, which scouts and invests in early stage technologies across the globe; and a member of the Airbus Canada Limited Partnership Board – a multibillion dollar joint venture of Airbus, Bombardier, and the Province of Quebec to procure parts, assemble, and market the world’s most modern commercial aircraft, the A220.
With more than 5,000 employees, Airbus Americas encompasses the regional corporate offices, engineering and innovation centers, training facilities, MROs and spare parts distribution centers, imagery and drone services, as well as large scale manufacturing facilities producing commercial aircraft, helicopters, and satellites.


4. Corporate Governance / 4.1 Management and Control 197 Airbus / Registration Document 2021 4. 
In accordance with Dutch law and with the provisions of the Dutch Code as amended in 2016, which includes a number of non-mandatory recommendations, the Company either complies with the provisions of the Dutch Code or if applicable, explains and gives sound reasons for their non-application.
On 8 December 2016, the Dutch Code was revised; its updated recommendations apply to financial years starting on or after 1 January 2017.
The Company welcomed the updates to the Dutch Code and continues supporting the emphasis of the revised Dutch Code on topics such as long-term value creation and the importance of culture.
While the Company, in its continuous efforts to adhere to the highest standards, complies with nearly all of the current recommendations of the Dutch Code, it must, in accordance with the “comply or explain” principle, provide the explanations below.
For the full text of the Dutch Code as well as the New Code, please refer to www.mccg.nl.
For the financial year 2021 and in respect of compliance with the Dutch Code, the Company states the following: 1. Securities in the Company as Long-Term Investment. 
Provision 3.3.3 of the Dutch Code recommends that NonExecutive Directors who hold securities in the Company should keep them as a long-term investment.
Although Non-Executive Directors are welcome to own shares in the share capital of the Company, the Company does not require its Non-Executive Directors who hold shares to keep such shares as a long-term investment. The Company considers it is altogether unclear whether share ownership by Non-Executive Directors constitutes a factor of virtuous alignment with stakeholder interest or may be a source of bias against objective decisions.
Provision of 3.1.2 vi of the Dutch Code recommends that the shares awarded to the CEO are held for at least five years after they are awarded. The rules applicable within the Company (as described Section 4.4.2 B e) below) do not impose a minimum of five year holding of awarded shares, however, the Company believes that potential deviations from this recommendation are significantly limited by the share ownership 4.1.2 Dutch Corporate Governance Code, “Comply or Explain”
Knittel has more than 35 years of experience in aerospace and transportation finance. Before joining Airbus, Knittel was Chief Executive Officer of C2 Aviation Capital (C2), a global leasing company focused on acquiring, leasing and managing commercial aircraft. Prior to leading C2 Aviation Capital, Mr. Knittel served since 1986 in a series of senior leadership positions at CIT Group Inc. – most recently as President of CIT Transportation Finance, a $21 billion diversified organisation that provided leasing and financing solutions for the aerospace, rail and maritime industries, including commercial airlines, business aircraft operators, railroads and shippers.
Knittel is currently a member of the Board of the National Air and Space Museum, the Board and Chair of the Finance Committee of the USO of Metropolitan New York, the Board of Trustees of the National World War II Museum, and a member of the Board and Executive Committee of the Atlantic Council. He is a former President and an emeritus member of the Board of Governors of the Wings Club. He is a former Chairman of the Board of Just One Break, a not-for-profit institution founded by Eleanor Roosevelt for the disabled and later merged with The Viscardi Center.
Mr. Knittel holds a bachelor’s degree in aviation management from Embry-Riddle Aeronautical University. In addition, he graduated from the Advanced Management Program at the University of Pennsylvania’s Wharton School of Business.
George Xu – Chief Executive Officer Airbus China. 
George Xu has been appointed CEO of Airbus China effective 8 January 2018. As country head of Airbus China, he is responsible for all Airbus Commercial Aircraft business activities and providing leadership to the company’s Helicopters and Defence and Space businesses in China.
In 1995, George Xu worked for the Tianjin Economic and Technology Development Area Administrative Committee. He was nominated Deputy Director of the Investment Promotion Bureau of Tianjin Free Trade Zone in 2003 and was promoted as its Director in 2005, when he started to actively participate in the Airbus A320 Family Final Assembly Line project including site selection, and negotiation and set-up of the joint venture.
From 2008 to 2011, George Xu was Deputy GM of Airbus Tianjin A320 Family Final Assembly Line and in parallel Director of the Investment Promotion Bureau of Tianjin Free Trade Zone Administrative Committee and Deputy Chairman of Avicopter.
In 2011, he was appointed Chairman of Board of Airbus Tianjin Final Assembly Line and Vice President of Tianjin Free Trade Zone Administrative Committee.
In 2014, George Xu was nominated and worked full time as Party Secretary of Tianjin Youth League until 2017. George Xu was a member of the Standing Committee of Tianjin Municipal People’s Congress from 2015 to 2017.
George Xu was born in 1972 in Suzhou, Jiangsu Province. George Xu received a Bachelor of Engineering degree in Information Management System from Tianjin University and Master of Business Administration from Roosevelt University of Chicago. He also received a Doctorate degree in Economics from Nankai University.
George Xu is married and in his spare time, he likes football, hiking and reading.


4. Corporate Governance / 4.1 Management and Control 198 Airbus / Registration Document 2021 4.1.3 Enterprise Risk Management System. 
The long-term development and production cycles of the Company’s products and services make ERM a crucial mechanism to both mitigate risks faced by the Company and to identify and enhance potential opportunities.
Applied across the Company and its main subsidiaries, ERM is a permanent top-down and bottom-up process, which is executed across Divisions at each level of the organisation. It is designed to identify and manage risks and opportunities. A strong focus is put on the operational dimension due to the importance of programmes and operations for the Company. External factors are also well considered in our approach.
ERM is an operational process embedded into the day-today management activities of programmes, operations and functions. The top risks and their mitigations are reported to the Board of Directors through a reporting synthesis, consolidated on a quarterly basis.
The ERM system relies on five pillars: – anticipation: early risk reduction and attention to emerging risks; – speak-up & early warnings; – robust risk mitigations; – opportunities; and – strong Governance.
4.1.3.1 ERM Process. 
The objectives and principles for the ERM system, as endorsed by the Board of Directors, are set forth in the Company’s ERM Policy and communicated throughout the Company. The Company’s ERM Policy is supplemented by directives, manuals, guidelines, handbooks, and other supporting documents. External standards which contribute to the Company’s ERM system inclue the ISO 31000 defined by the International Organization for Standardization (“ISO”).
The ERM process consists of three elements: – a strong operational dimension - derived from ISO 31000 - to enhance operational risk and opportunity management, looking in particular at identifying and mitigating single points of failure (SPOF); guideline set-forth in Section 4.4.2 B f) under which the CEO is expected to hold throughout his/her tenure Airbus shares with a value equal to 200% of his/her Base Salary.
2. Dealings with Analysts. 
Provision 4.2.3 of the Dutch Code recommends meetings with analysts, presentations to analysts, presentations to investors and institutional investors and press conferences shall be announced in advance on the Company’s website and by means of press releases. In addition, it recommends that provisions shall be made for all shareholders to follow these meetings and presentations in real time and that after the meetings the presentations shall be posted on the Company’s website.
The Company does not always allow shareholders to follow meetings with analysts in real time. However, the Company ensures that all shareholders and other parties in the financial markets are provided with equal and simultaneous information about matters that may influence the share price.
3. Gender Diversity. 
On 1 January 2022, new diversity measures entered into force in the Netherlands as laid down in the Dutch Civil Code. Pursuant to article 2:166 of the Dutch Civil Code, the Company is required to set an appropriate and ambitious target in the form of a target figure (at the Company’s own discretion), to promote well-balanced gender diversity on the Board of Directors, among senior management, as well as a plan to achieve that target. In case of her approval at the AGM 2022, four Members of the Board of Directors will be female. The proportion of the female representation on the Board of Directors is currently at 25% and will thus be increased to approximately 33%. The Company will in any event continue to promote gender diversity within its Board of Directors in accordance with the principles mentioned in Section 4.1.1 above. In addition, the Company will continue to give due consideration to any applicable gender targets in its search to find suitable Board candidates and to actively seek female candidates. However, the Company believes that candidates should not be recruited based on their gender alone; the capabilities and skills of potential candidates are most important in this respect.
Therefore, the importance of diversity, in and of itself, should not set aside the overriding principle that someone should be recommended, nominated and appointed for being “the right person for the job”.
The Company values diversity in the broadest sense, ranging from gender to ethnicity. To this end, the Company is committed to promoting, supporting and leveraging initiatives to increase the diversity within its workforce, as well as at top management and Board levels. With the support of stakeholder input, the Company is diligently working on building a pipeline of suitable candidates. Through these dedicated programmes, the Company is confident of notably improving gender diversity within a reasonable timeframe. Although the Company has not set specific targets with respect to particular elements of diversity, except for the principles described in “– 4.1.1 Composition, powers and rules” and those targets which apply by law, the Company considers attributes such as personal background, age, gender, national origin, experience, capabilities and skills when evaluating new candidates in the best interests of the Company and its stakeholders.


4. Corporate Governance / 4.1 Management and Control 199 Airbus / Registration Document 2021 4
– a reporting dimension (bottom up and top down), which contains procedures for the status reporting of the ERM system and the risk/opportunity situation; and – an ERM confirmation dimension, which comprises procedures to assess the effectiveness of the ERM system.
The ERM process applies to all relevant sources of risks and opportunities that potentially affect the Company’s activities, its businesses and its organisation in the short-, mid- and longterm. The ERM process is part of the management process and inter-related with the other processes.
All Airbus organisations, including Divisions, subsidiaries and controlled participations, commit to and confirm the effective implementation of the ERM system. The annual ERM Confirmation Letter issued by each organisation is the formal acknowledgement about the effectiveness of the ERM system.
For a discussion of the main risks to which the Company is exposed, see “– Risk Factors”.
4.1.3.2 ERM Governance and Responsibility. 
The governance structure and related responsibilities for the ERM system are as follows: – the Board of Directors with support of the Audit Committee supervises the strategy and business risks and opportunities, as well as design and effectiveness of the ERM system; – the CEO authorises the reports escalated to the Board of Directors. The CFO is accountable for an effective ERM system and supervises the Head of ERM, and the ERM system design and process implementation; – the Head of ERM has primary responsibility for the ERM strategy, priorities, system design, culture development and reporting tool. He supervises the operation of the ERM system and is backed by a dedicated risk management organisation in the Company, focusing on the operational dimension, early warning and anticipation culture development, while actively seeking to reduce overall risk criticality by challenging the business. The risk management organisation is structured as a cross-divisional Centre of Competence (“CoC”) and pushes for a proactive risk management; – the management at executive levels has responsibility for the operation and monitoring of the ERM system in its respective areas of responsibility, and for the implementation of appropriate response activities to reduce risks and seize opportunities, considering the recommendations of the internal and external auditors.
4.1.3.3 ERM Effectiveness. 
The ERM effectiveness is analysed by: – ERM CoC, based on ERM reports, confirmation letters, in situ sessions (e.g. risk reviews), participation to key controls (e.g. major programme maturity gate reviews); – ERM key performance indicators measuring maturity and effectiveness of the ERM process in the programmes and functions; – Risk & opportunity deep dives proposed by the ERM CoC and performed by the functions with the involvement and support of the ERM CoC; and – Corporate Audit, based on internal Corporate Audit reports and on an annual survey towards heads of programmes and functions and towards the ERM network.
The combination of the following controls is designed to achieve reasonable assurance about ERM effectiveness:
Organisation Explanations. 
Board of Directors / Audit Committee. 
Regular monitoring The Board of Directors and the Audit Committee review, monitor and supervise the ERM system. Any material failings in, material changes to, and/or material improvements of the ERM system which are observed, made and/or planned are discussed with the Board of Directors and the Audit Committee.
Top Management. 
ERM as part of the regular divisional business reviews Results of the operational risk and opportunity management process, self-assessments and confirmation procedures are presented by the Divisions or other Airbus’ organisations to top management. ERM working sessions at Executive Leadership Meeting twice a year.
Management ERM confirmation letter procedure Entities and department heads that participate in the annual ERM compliance procedures must sign ERM Confirmation Letters.
ERM CoC ERM effectiveness measurement Assess ERM effectiveness by consideration of ERM performance KPI, ERM reports, ERM confirmations, in situ sessions (risk reviews etc.), participation to key controls (e.g., major Programme Maturity Gate Reviews).
Corporate Audit Audits on ERM Provide independent assurance to the Audit Committee on the effectiveness of the ERM system; annual survey.
E&C Alert System Detects deficiencies regarding conformity to applicable laws and regulations as well as to ethical business principles.


4. Corporate Governance / 4.1 Management and Control 200 Airbus / Registration Document 2021 4.1.3.4 Board Declaration. 
Based on the Company’s current state of affairs, the reports made directly available to the Board of Directors, coming from different processes, audits and controls and the information it received from management, the Board of Directors believes to the best of its knowledge that: – the internal risk management and control systems provide reasonable assurance that the financial reporting does not contain any material inaccuracies; – this report provides sufficient insight into any material failings in the effectiveness of the internal risk management and control systems; – it is justified that the Financial Statements have been prepared on a going concern basis; and – this report states the material risks and uncertainties that are relevant to the expectation of the Company’s continuity for the period of 12 months after the preparation of the report.
It should be noted that no matter how well designed, the internal risk management and control system has inherent limitations, such as vulnerability to circumvention or overrides of the controls in place. Consequently, no assurance can be given that the Company’s internal risk management and system and procedures are or will be, despite all care and effort, entirely effective.
4.1.4 Internal Audit. 
In accordance with Principle 1.3 of the Dutch Corporate Governance Code, Airbus Corporate Audit & Forensic engages in the independent and objective corporate assurance activities of internal auditing, consulting activities, and forensic investigations. It supports the Company in improving its operations and accomplishing its objectives by bringing a systematic and disciplined approach to evaluate and improve the design and effectiveness of the organisation’s governance, risk management, and internal controls. Its mandate is set out in the Airbus Corporate Audit and Forensic Charter. The department’s independence is established by direct reporting to the Audit Committee and by access to the CEO.
Corporate Audit activities are independently assessed by IFACI (Institut Français de l’Audit et du Contrôle Internes). IFACI certifies that Corporate Audit adheres to and fulfils the requirements of the IFACI Internal Audit Professional Framework 2020 and the International Professional Practices Framework of the Global Institute of Internal Auditors. The Certification was renewed on the 29 November 2021 for a period of three years.


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 201 Airbus / Registration Document 2021 4
4.2 Interests of Directors and Principal Executive Officers 4.2.1 Remuneration Policy. 
The Remuneration Policy covers all members of the Board of Directors: the CEO (who is the only Executive Director) and the other members of the Board of Directors (who are the NonExecutive Directors).
Pursuant to a resolution to that effect, the general meeting may (re)adopt, amend or supplement the Remuneration Policy on the basis of a proposal by the Board of Directors at the recommendation of the RNGC.
The Board of Directors, at the recommendation of the RNGC, may decide to deviate temporarily (and ultimately until the General Meeting adopts an amended version of the Remuneration Policy following the occurrence of such deviation) from any element of the Remuneration Policy as outlined below, if this is necessary to serve the long-term interests and sustainability of the Company or to assure its viability.
The Remuneration Policy in the form set out below in this chapter 4.2.1 has been adopted by the AGM held in 2020 with effect as of 1 January 2020.
Given the positive outcome (with a very high score) of the most recent vote of the Company’s general meeting on the current Remuneration Policy, as well as the feedback received from shareholders during dedicated engagements notably on sustainability matters, the Board of Directors does not believe that any amendment to the Remuneration Policy is required this year. The Board of Directors believes that the Remuneration Policy is robust and drives the desired outcome. The Remuneration Policy shall be posted on the Company’s website as part of the Company’s annual report of the Board of Directors.
4.2.1.1 Executive Remuneration – Applicable to the CEO a) Remuneration Philosophy. 
The Company’s remuneration philosophy aims to provide remuneration that will attract, retain and motivate high-calibre executives, whose contribution will ensure that the Company achieves its strategic and operational objectives, thereby delivering long-term sustainable returns for all shareholders and other stakeholders in a manner consistent with the Company’s identity, mission and corporate values.
The Board of Directors and the RNGC are committed to making sure that the executive remuneration structure (i) is transparent and comprehensive for all stakeholders; (ii) is consistent and aligned with the interests of long-term shareholders, also taking into consideration the employment conditions of the Company’s employees; and (iii) incentivises further the Company’s corporate values by basing variable remuneration components also on the achievement of non-financial targets and metrics using environmental, social or governance criteria via the sustainability performance measure.
Before setting the targets to be proposed for adoption by the Board of Directors, the RNGC considers the financial outcome scenarios of meeting performance targets, including achieving maximum performance thresholds, and how these may affect the level and structure of the executive remuneration, as well as potential risks for the Company’s business which may result from variable compensation. The Board of Directors shall also consider these aspects, based on the RNGC’s recommendations.
Also, before making a recommendation relating to the remuneration of the CEO, the RNGC and the Board of Directors shall take note of the views of the CEO with regard to the amount, level and structure of his or her remuneration.
b) Total Direct Compensation and Peer Group. 
The CEO’s total direct compensation (“Total Direct Compensation”) comprises a base remuneration (“Base Salary”), an annual variable short-term remuneration (“Annual Variable Remuneration” or “VR”) and an award under the long-term incentive plan (“LTIP”). The three elements of the Total Direct Compensation are each intended to comprise one third of the total, assuming the achievement of performance conditions is 100% of the applicable targets. The level of the Total Direct Compensation for the CEO (Base Salary, VR and LTIP) is set by reference to the median of an extensive peer group (as described in paragraph 4.4.3 item a) below) and takes into account the scope of the role of the CEO, and the level and structure of executive rewards within the Company. The benchmark is regularly reviewed by the RNGC, with the support of an independent consultant, and is based on a peer group which comprises: – global companies in the Company’s main markets (France, Germany, UK and US), excluding financial institutions; and – companies operating in the same industries as the Company worldwide.


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 202 Airbus / Registration Document 2021. 
The elements of the Total Direct Compensation are described below:
Remuneration Element Main Drivers Performance Measures Target and Maximum. 
Base Salary (in €)
Reflects market value of position. Not applicable 1/3 of Total Direct Compensation (when performance achievement is 100% of target).
Variable Remuneration (in €)
Rewards annual performance based on achievement of Company performance measures and individual objectives.
Collective (50% of VR): divided between EBIT(1) (40%); Free Cash Flow(2) (40%) and Sustainability (20%). The VR is targeted at 100% of Base Salary for the CEO and depending on the performance assessment, ranges from 0% to 200% of target. The VR is capped at 200% of Base Salary. Individual (50% of VR): Achievement of annual individual objectives, divided between Outcomes and Behaviour.
LTIP (in Units and/or Shares)
Rewards long-term commitment and Company performance, and engagement based on financial targets aligned with long-term objectives subject to cumulative performance over a three-year period.
Vesting, subject to performance over a three-year period. In principle, no vesting if cumulative EBIT is negative. If cumulative EBIT is positive, vesting from 50% to 150% of grant based on EPS (75%) and Free Cash Flow (25%).
The original allocation to the CEO is capped at 100% of Base Salary at the time of grant. Vesting capped at 150% of initial grant (in number of Performance Shares and/or Units). In addition, for the vesting of Performance Units: -- overall pay-out is capped at 250% of the original value at the date of grant; -- the value that could result from share price increases is capped at 200% of the reference share price at the date of grant.
(1) The Company continues to use the term EBIT (earnings before interest and taxes). It is identical to Profit before finance cost and income taxes as defined by IFRS Rules. (2) Airbus defines the alternative performance measure FCF as the sum of (i) cash provided by operating activities and (ii) cash used for investing activities, less (iii) change of securities, (iv) contribution to plan assets for pension schemes, (v) realised treasury swaps and (vi) bank activities. It is a key indicator which allows the Company to measure the amount of Cash Flow generated from operations after cash used in investing activities.
The following graphic depicts three relevant scenarios for the outcome of the Total Direct Compensation:
Below Threshold. 
Target. 
Maximum. 
Base Salary Variable Remuneration (VR) LTI paid in cash LTI paid in shares 0 1 2 3 4 5 6 7 8. 
Indications assume a Base Salary of € 1.35 million, but the Board of Directors may revise the Base Salary based on the recommendations of the RNGC.
“Below Threshold” includes annual Base Salary; VR at 0%; LTIP not vesting.
“Target” includes Base Salary, VR at target and LTIP grant face value in cash and/or in shares.
“Maximum” includes Base Salary; maximum VR value (200% of VR at target); maximum LTIP cash grant projected at vesting date (250% of grant value); maximum performance applicable to the number of shares granted (150%). The final value of Performance Shares depends on the share price development which is not capped.
Illustrative table for a theoretical grant of 50% Shares / 50% Units.
c) Base Salary. 
The CEO’s Base Salary is determined by the Board of Directors, taking into account the peer group analysis mentioned above.


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 203 Airbus / Registration Document 2021 4
d) Annual Variable Remuneration. 
The Variable Remuneration is a cash payment that is paid following the end of each financial year, depending on the achievement of specific and challenging performance targets as determined at the beginning of each financial year. The level of the CEO’s variable remuneration is targeted at 100% of the Base Salary; it is capped at a maximum level of 200% of the Base Salary. The entire Variable Remuneration is at-risk, and therefore if performance targets are not achieved as per the defined objectives agreed by the Board of Directors, it may mean that no variable remuneration is paid at all.
The performance measures that are considered when awarding the variable remuneration to the CEO are split between common collective performance measures and individual performance measures.
Common Collective Component. 
The common collective component is based on earnings before interest and taxes (“EBIT”) (40%), Free Cash Flow (40%) and sustainability (20%) objectives (the “Common Collective Component”). At the beginning of each year, the Board of Directors sets the targets for these key value drivers at Company and Division levels. The common collective targets relate closely to internal planning and to guidance given to the capital markets (although there may be variations from these). The key value drivers that form the sustainability component will be determined by the Board of Directors and disclosed in the implementation section of the Company’s remuneration report for the relevant financial year. They can be related to matters such as health & safety, climate and/or people.
To calculate the common collective annual achievement levels, actual EBIT, Free Cash Flow and sustainability performance are compared against the targets that were set for the year. This comparison forms the basis for computing achievement levels, noting that the actual EBIT, Free Cash Flow levels are occasionally normalised for a limited number of factors which are outside management’s control (such as certain foreign exchange impacts or unplanned merger and acquisition activities). The RNGC’s intention is to ensure ambitious financial and sustainability targets, and to incentivise the CEO’s commitment to meeting these targets.
The graphic below illustrates the Common Collective Component, how it is measured and what the key value drivers are:
Airbus Executives common collective financial targets. 
FCF (Free Cash Flow) Annual, M€ (40%)
Measures cash generation Driven by cash provided by/used for operating and investment activities. 
EBIT (Earnings before Interest & Tax) Annual, M€ (40%)
Measures operational profitability Driven by revenues and operating expenses. 
Criteria giving effect to the Sustainability component could be related to health & safety, climate and/or people. 
Sustainability Annual, % (20%)
Individual Component. 
The individual element (“Individual Component”) focuses on outcomes and behaviour (as defined below). Individual performance is assessed in these two important dimensions, which both contribute to the Company’s remuneration philosophy. Among other matters, corporate social responsibility and the Company’s corporate values are considered as part of this assessment.
– Outcomes encompass various aspects of what the CEO can do to contribute to the success of the business: specific business results he achieves, projects he drives and processes he improves. The individual targets of the CEO are comprehensive and shared with all employees via the top company objectives. – Behaviour refers to the way results have been achieved, which is also critical for long-term success: how the CEO and the Board of Directors work as a team, how the CEO leads the Executive Committee, quality of communication, encouragement of innovation, etc. A specific part of the behaviour assessment relates to ethics, compliance, quality and other sustainability matters.
The performance of the Individual Component is measured by the RNGC for the CEO and for all the other members of the Executive Committee.


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 204 Airbus / Registration Document 2021. 
The RNGC discusses the level of achievement of every single target and derives a combined target achievement level for the outcomes. The behavioural part of the Individual Component is also discussed by the RNGC and constitutes an adjustment factor for the target achievement of the outcomes. Finally, the RNGC proposes to the Board of Directors the compound Individual Component of the CEO target achievement made up from the outcomes and behavioural achievements.
e) Long-Term Incentive Plan. 
The CEO participates in the Company’s LTIP in order to increase the alignment with shareholders’ interests. The LTIP allows the award of Performance Units (“Performance Units” or “Units”) and/or Performance Shares (“Performance Shares” or “Shares”).
The value of the CEO’s LTIP allocation is capped at 100% of the Base Salary at the date of grant and subject to performance conditions. The achievement of the performance criteria is assessed by the RNGC after a three-year period, based on relevant financial criteria during this period of three years with stringent targets set in advance and agreed by the Board of Directors at the recommendation of the RNGC.
At the end of this three-year period, the grant is subject to a performance calculation to determine whether and to what extent it should vest. Depending on this calculation (i) Performance Units will vest in two tranches, the payment of which takes place approximately six and 18 months following the end of the performance period and (ii) Performance Shares will vest in one tranche, approximately six months following the end of the performance period. This is depicted in the graphic below:
Performance period 3 years. 
Y Y+1 Y+2 Y+3 Y+4. 
X X. 
X
Y+5. 
GRANT DATE Face value at grant date Allocation policy. 
Performance calculation determines the number of Units and Shares that may vest. 
Vesting in SHARES. 
Vesting in CASH. 
The level of vesting of Performance Shares and Units is subject to the following performance measures: – 0-50% of the allocation: In principle, this element of the Performance Unit / Share award will not vest if the Company reports negative cumulated EBIT results. Nonetheless, in case the Company’s EBIT results are impacted by exceptional and unpredictable circumstances, the Board of Directors, upon recommendation of the RNGC, may decide that a maximum portion of 50% of the allocation will vest; – 50-150% of the allocation: This element of the Performance Unit / Shares vests based on the two following performance criteria: average earnings per share (75%) (“Earnings per Share” or “EPS”) and cumulative Free Cash Flow (25%).
Measures profitability. 
Driven by net income and number of shares. 
Earnings per Share (75%) Average over 3 years, €
Measures cash generation. 
Driven by cash provided by/used for operating and investment activities. 
Free Cash Flow (25%) Cumulated over 3 years, M€
The vesting of Performance Units and Shares is subject to the following maximum cap: – the maximum level of vesting is 150% of the number of Units/Shares granted.
The vesting of Performance Units is subject to the following maximum caps: – the value that could result from share price increases is capped at 200% of the reference share price at the date of grant; and – the overall pay-out is capped at 250% of the value at the date of grant.
Performance Units and Performance Shares that vest in accordance with the terms and conditions applicable to them are settled without further action being required by the beneficiary.
For each payment in cash, one Unit is equal to the value of one Airbus SE share at the time of vesting. The Airbus SE share value is the average of the opening share price, on the Paris Stock Exchange, during the 20 trading days preceding and including the respective vesting dates.


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 205 Airbus / Registration Document 2021 4
f) Share Ownership Guideline. 
The Board of Directors has established a share ownership guideline pursuant to which the CEO is expected to acquire Airbus SE shares with a value equal to 200% of the Base Salary and to hold them throughout his or her tenure.
g) Benefits. 
The benefits offered to the CEO are similar to the benefits granted to other executives of the Company and comprise, among other matters, medical, death and disability coverage (both through a social security system or a company plan, depending on the contractual agreement with the CEO), a company car and usual facilities.
Unless the law provides otherwise, the costs and expenses of the CEO are covered, including reasonable costs of defending claims, under the conditions set forth in the insurance policy subscribed by the Company. Under circumstances excluded by the insurance policy, such as an act or failure to act by the CEO that can be characterised as intentional, intentionally reckless, or seriously culpable, there will be no entitlement to any coverage.
h) Retirement. 
The CEO is entitled to retirement benefits through mandatory applicable state and collective pension plans.
The CEO participates also in a Company pension contributions based plan. This plan consists of an annual pension contribution of 20% of the annual pensionable remuneration (as described in paragraph 4.2.1.3.B item h) below) subject to applicable local practices (if any).
i) Clawback. 
In accordance with Dutch law, the Board of Directors may adjust a “bonus” (as defined under Dutch law, including shortterm remuneration and awards under the Long-Term Incentive Plan subject to performance criteria) awarded to the CEO to a suitable level, if payment or satisfaction of that bonus would be unacceptable under the standards of reasonableness and fairness. Also, the Company may reclaim a bonus already paid, in whole or in part subject to applicable local legal requirements, if any, to the extent that such payment was made on the basis of incorrect information regarding the achievement of the targets, objectives and/or conditions underlying the bonus or regarding the circumstances on which the bonus was dependent. The Non-Executive Directors, or a special representative designated by the general meeting, may demand such repayment on the Company’s behalf.
Any such adjustment or clawback will be reported in the notes of the relevant Financial Statements of the Company.
j) Loans. 
The Company does not provide loans or advances to the CEO.
k) Severance. 
In case of termination of the CEO’s duties at the initiative of the Board of Directors, the CEO shall be entitled to an indemnity equal to one (1) time the last Total Annual Remuneration (defined as Base Salary and VR most recently paid) subject to applicable local legal requirements if any, and provided that the performance conditions (as described in paragraph 4.4.3 item k) below) assessed by the Board of Directors have been fulfilled. If the CEO’s appointment as member of the Board of Directors terminates within a period of 12 months or less prior to his retirement date, the termination indemnity will be limited by pro-rating its amount. This will not apply if the CEO’s mandate is terminated for cause (misconduct), in case of resignation or termination on or after his retirement date.
The CEO’s appointment terms and conditions include a noncompete clause, which applies for a maximum of one year. The compensation under the non-compete clause is equal to 50% of the last total annual remuneration (defined as Base Salary and VR most recently paid), subject to applicable local legal requirements if any and paid in monthly instalments.
Past LTIP awards may be maintained, in such cases as retirement or if a mandate is not renewed by the Company for a reason other than cause (misconduct). The vesting of past LTIP awards follows the rules and regulations of the LTIP including performance conditions and is not accelerated in any case. LTIP awards are forfeited for executives who leave the Company at their own initiative, but this is subject to review by the Board of Directors.
The term of the CEO’s appointment is linked to his or her mandate as a member of the Board of Directors. The termination of the CEO’s appointment may be subject to a notice period of six months, except if the CEO’s appointment is terminated for cause (misconduct), in which case the CEO’s appointment may be terminated immediately, or in case of non-renewal of the CEO’s mandate by the general meeting.
4.2.1.2 Non-Executive Remuneration – Applicable to Non-Executive Directors. 
The Company’s Remuneration Policy with regard to NonExecutive Directors aims at ensuring fair compensation and protecting the independence of the Board’s Members. Their remuneration should be commensurate to the time spent and the responsibilities of their role on the Board of Directors.
Fees and Entitlements. 
Non-Executive Directors are entitled to the following remuneration components: – a base fee for membership or chair of the Board of Directors; – a Committee fee for membership or chair on each of the Board’s Committees; – an attendance fee for the attendance of Board meetings (subject to such conditions as may be imposed by the Board of Directors at the recommendation of the RNGC); and – an attendance fee for the attendance of Committee meetings if and when such Committees would have more than four Committee meetings per year (whether these meetings are held physically or by phone).
Each of these fees is a fixed amount that is determined by the Board of Directors from time to time, at the recommendation of the RNGC.
Committee chairmanship and Committee membership fees are cumulative if the concerned Non-Executive Director belongs to two different Committees. Fees are paid twice a year at the end of each semester (as close as possible to the Board meeting dates).


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 206 Airbus / Registration Document 2021. 
Non-Executive Directors do not receive any performance or equity- related compensation, and do not accrue pension rights with the Company in the frame of their mandate, except what they would receive in the frame of a current or past executive mandate. These measures are designed to ensure the independence of Board Members and strengthen the overall effectiveness of the Company’s corporate governance.
The Company does not encourage Non-Executive Directors to purchase Airbus SE shares.
The Company does not provide loans or advances to the NonExecutive Directors.
Unless the law provides otherwise, the Non-Executive Directors shall be reimbursed by the Company for various costs and expenses, including reasonable costs of defending claims. Under certain circumstances, such as an act or failure to act by a Member of the Board of Directors that can be characterised as intentional, intentionally reckless, or seriously culpable, there will be no entitlement to this reimbursement.
4.2.1.3 Implementation of the Remuneration Policy in 2021: CEO. 
This paragraph 4.2.1.3 describes how the Remuneration Policy was implemented in 2021 with respect to the CEO (Mr Guillaume Faury). As a reminder, the AGM held in 2020 approved the Remuneration Policy through resolution five with a very high level of support.
In line with the Remuneration Policy and the expectation of the RNGC and the Board of Directors, the philosophy of the remuneration policy aims to provide remuneration that will attract, retain and motivate high-calibre executive, while taking into account best practices as well as employee and shareholder considerations. It should help to ensure that the Company achieves its strategic and operational objectives, thereby delivering sustainable returns for all shareholders and other stakeholders in a manner consistent with the Company’s identity, mission and corporate values.
a) Benchmarking. 
The latest benchmark was performed in July 2021 at RNGC and Board of Directors request.
The new relevant peer group from this last benchmark, based on Willis Towers Watson database, is composed of 55 companies(1) selected from CAC40 in France, DAX 40 (formerly DAX 30) in Germany, FTSE 100 in the UK, IBEX 35 in Spain and DJ 30 in the US having comparable economic indicators such as revenues, number of employees and market capitalisation and providing perspective on compensation practices from direct or indirect competitors. Financial institutions were excluded from this peer group.
Based on the conclusion of the independent expert who ran the benchmark, the total direct compensation (TDC) of the CEO is below the median level of the peer group.
In line with the Company’s Remuneration philosophy, the conclusion of this benchmarking exercise was duly taken into account by the RNCG and the Board of Directors when setting the remuneration of the CEO.
In addition to external benchmark, the RNGC considers also the remuneration of employees through the review of the evolution of the pay-ratio (see 4.2.1.3 item (j)).
b) Base Salary. 
The 2021 CEO Base Salary level on a full year basis is unchanged compared to 2020 and amounts to € 1,350,000 (lowered from the Base Salary of the former CEO: € 1,500,000 in 2019).
(1) France: Total, Sanofi, Safran SA, Air Liquide, Stellantis, Danone, Schneider Electric, Saint-Gobain, Vinci, Engie, Thales, Dassault systèmes.
Germany: Bayer, Volkswagen, Daimler, BASF, Deutsche Telekom, Siemens, BMW, Continental, E.ON, Henkel, Deutsche Post, SAP.
Spain: Iberdrola, Endesa, Siemens Gamesa, Santander, Telefónica, Naturgy, Repsol, Banco Bilbao, Inditex, Ferrovial SA.
UK: Shell, BP, BAT, GSK, Rio Tinto, Vodafone, Bae Systems, Rolls Royce, Diageo, Unilever, Tesco.
US: Boeing, Lockheed, Raytheon, General Dynamics, Northrop Grumm, GE, Caterpillar, 3M, IMB, Fedex.


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c) Annual Variable Remuneration. 
As stipulated in the Company’s Remuneration Policy, the CEO’s VR is targeted at 100% of the Base Salary and capped at 200% of the Base Salary. It is subject to the fulfilment of collective and individual performance targets.
For 2021, the VR of the CEO amounts to an aggregate of € 2,241,000 composed of € 1,296,000 (192%) for the Common Collective Component and € 945,000 (140%) for the Individual Component.

Individual part: € 945,000 Achievement: 140% 
Variable Remuneration of CEO in 2021: € 2,241,000. 
Common Collective Component: € 1,296,000 Achievement: 192%
Performance Achievement – Common Collective Component. 
According to the policy applicable for the financial year 2021, the Common Collective Component for the Company consolidated achievement amounts to 192%. It is based on an achievement of 200% of target EBIT, 200% of target Free Cash Flow, and 161% of target sustainability (which is based on achievement of 200% of target reduction of CO2 emissions and 122% of target reduction of FR1). These criteria apply to all executives having a Common Collective Component in their variable remuneration.
Minimum Achievement 0%
Maximum Achievement 200%
Financial 80%
Sustainability 20% 
200% 200%
CO2 10%
FR1 10% 122% 200%
EBIT 40%
FCF 40% = 192%
Maximum level of achievement for EBIT / Free Cash Flow was driven by Airbus Commercial very strong performance and good performance of Airbus Helicopters and Airbus Defence & Space in a context of quicker than expected post COVID-19 recovery. Normalisations were made to exclude exceptional financial impacts such as currency exchange differences.
Sustainability targets are measured by two criteria: the rolling lost time injury frequency rate (“FR1”) which is the monthly number of lost time injuries per million worked hours averaged over 12 months) and the reduction in CO2 emissions (“CO2 Avoidance”), each weighted for 10% of the Common Collective Performance.
– In 2021, the consolidated rolling FR1 decreased from 3.61(1) to 3.06 leading to an overall achievement of 122%(2) – In 2021, the CO2 emission decreased by 6% (762 ktons), which is above the targeted reduction of 3%, leading to an achievement of 200%
The high level of reduction in FR1 and CO2 emissions at group level is confirming the successful and faster than anticipated year over year reduction target.
For 2022, the Board of Directors decided to maintain the sustainability component as follows: FR1 for 50% and CO2 avoidance for 50%. The target for 2022 is a reduction of FR1 by 15% in Airbus Commercial and 10% in Airbus Defence and Space and 10% at Airbus Helicopters versus our actuals 2021 rolling FR1 and a reduction of CO2 emissions of our industrial sites and operations by 5%.
(1) Restatement of 2020/2021 actual figures of 3.81/3.21 respectively due to increased scope.
(2) Based on the weight of each business.


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 208 Airbus / Registration Document 2021. 
Performance Achievement – Individual Component. 
The Individual Component in 2021 results from an achievement level of 140%, assessed by the RNGC and approved by the Board of Directors on the basis of achievement demonstrated on different criteria defined at the beginning of the year, as summarised in the table below:
OBJECTIVE TARGET Weight (%) Achievements (%)
Outcomes element 2021 Top Company Objectives -- Customer -- Industrial Performance -- People -- B137 Sustainability -- Enable the Future 30% 128%
Personal Objectives -- Prepare Airbus for post COVID-19 -- Consolidate our market position in commercial aviation -- Secure /Finalise the key strategic military programmes -- Environment, Social and Governance -- Set Airbus D133 onto the right trajectory for the Future 40% 150%
Behaviour element. 
Personal Focus -- Ethics & Compliance -- Personal Development -- Leadership Team Development 30% 140% 100% 140%
The Individual component has been assessed according three sets of complementary objectives: – Top Company Objectives Assessment – accounting for 30% of the total Individual Component – CEO Personal objectives – accounting for 40% of the total Individual Component – CEO Personal Focus – accounting for 30% of the total Individual Component. 
I. Outcomes element. 
A. 2021 Top Company Objectives They have been defined, structured around five clusters: – Customer; – Industrial Performance; – Financial Performance; – People; – Sustainability; – Enable the Future.
A series of KPIs and associated targets have been set at the beginning of the year, for each of the clusters.
Each of the KPIs have been measured and compared to target, leading to a global measurement of the TCOs achievement at 128% of the targets, as per details shown on the table “summary CEO achievement – Individual Component” at the beginning of this chapter.
B. CEO Personal Objectives Consistently with the TCOs, Individual Objectives have been set up specifically for the CEO.
They are structured around five priorities, detailed below.
Each of the priorities have been assessed by the RNGC leading to a global achievement of 150% for the Personal Objectives, as per details shown on the table “summary CEO achievement – Individual Component”.
The main and most noticeable factors for each of the five priorities determining the achievement level of CEO Personal Objectives included, but not limited to: 1. Prepare Airbus for post COVID-19 – Despite disruption within the Supply Chain, achieved a strong alignment to secure single aisle family ramp up; – A total of 611 commercial aircraft were successfully delivered, in line with 2021 delivery Guidance; – Restructuring of our industrial set up, as an enabler of increased competitiveness.
2. Consolidate our market position in commercial aviation – A strong single aisle market position achieved with 49% of market share and 24% of widebody market share including the launch of the A350 Freighter programme; – Gross commercial aircraft orders totalled 771 with net orders of 507 aircraft after cancellations; – This year, the WTO dispute has been settled, putting an end to 17 years discussions with the US.


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3. Secure / Finalise the key strategic military programmes – Eurodrone’s negotiations successfully completed in 2021 resulting in a signature of the contract in February 2022; – Tiger MKIII contract signed; – Future Combat Air System (“FCAS”), negotiations with the partner companies and customers are ongoing.
4. Environment, Social and Governance – Leading the decarbonisation of the aerospace sector aiming to bring the first zero emission commercial aircraft to market by 2035. To this end, the Company’s CO2 emissions decreased by 6% (762 ktons), which is above of the targeted reduction of 3%; – Enhancing the current product and services portfolio contributing positively to climate change mitigation and adaptation; – Strong focus to push our Health and Safety standards towards industry benchmarks, through standard processes deployment, and extensive training tailored to different population. As a result, FR1 target over-achieved; – My Working Environment Survey in order to measure engagement of our employees, and roadmap defined in order to tackle main pain points (see details in Chapter 6).
5. Set Airbus on the right trajectory for the future – Internal Transformation Programme has been (re)launched, and reset in a Post COVID-19 world. “Next Chapter Rewired” is focusing on creating the conditions for next generation digital and decarbonised products and services.
II. Behaviour element The “behaviour element” accounts for 30% of the total Individual Component and has been assessed around three axis: – Ethics & Compliance; – Personal Development; – Leadership Team Development.
Each of the priorities have been assessed by the RNGC leading to a global achievement of 140% for the Personal focus Objectives, as per details shown on the table “summary CEO achievement – Individual Component”.
A. Ethics & Compliance Ethics & Compliance (E&C) continues to be a key focus area for the Company and the way the business is done: – Dedicated E&C focus during monthly executive and leadership meetings in February 2021, May 2021 and December 2021. – Dedicated Export Control session during the February Executive Committee. – Dedicated E&C workshop in December at Executives Leadership Meeting (ELM).
From 1 October 2020 to 30 September 2021, the Company’s employees followed 284,774 Ethics & Compliance e-learning sessions. In 2021, 90% higher risk third parties were trained on Ethics & Compliance requirements and expectations.
B. Personal Development The CEO is leading by example and has set axis of development supported by a coach following feedback sessions performed with his team members.
C. Leadership Team Development – The new composition of the Executive Committee has been implemented, including the nomination of Sabine Klauke, Chief Technical Officer, Catherine Jestin, EVP Digital and Transformation Management and Alberto Gutierrez, Chief Operating Officer for the Commercial Aircraft business. Furthermore, internal succession plans and training opportunities were reviewed to ensure that the strength of the Company’ internal talent remains engaged and monitored.
d) Long-Term Incentive Plan 2021 Grant. 
In 2021, under the Company’s LTIP, the Board decided to grant only Performance Shares, and no Performance Units. This applies to the CEO as well as to all beneficiaries of LTIP. The value of the Performance Share award has been capped at 100% of the Base Salary, in line with the current Remuneration Policy as validated by the AGM 2020, which then represents one third of the CEO’s target Total Direct Compensation. The table below gives an overview of the Performance Shares granted to the CEO in 2021 pursuant to the LTIP:
SHARE PLAN: NUMBER OF PERFORMANCE SHARES. 
Granted in 2021 Vesting dates. 
Guillaume Faury 12,121 Vesting schedule is made up of one tranche expected in May 2025. 
The grants in 2021 were performed in compliance with the performance measures (average EPS (75%) and cumulative FCF (25%)) described in paragraph 4.2.1.1 item e). As per the current Remuneration Policy, the Performance Shares granted in 2021 will vest in one tranche (in May 2025).


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 210 Airbus / Registration Document 2021. 
Vesting Values in 2021. 
In 2021, the CEO received both cash payments and vested shares in connection with the vesting of 2016 and 2017 LTIP awards: – Cash: the total cash payment to the CEO amounted to € 324,509 in 2021. – Shares: in connection with the 2017 LTIP award, the CEO received 2,202 vested shares on 5 May 2021.
LTIP overview: granting and vesting. 
Date of grants Grant Type Number Share price at grant date Value at grant date Performance achievement. 
Units with performance achievement Dates of vesting Share value at vesting dates(*) 2016 Units 5,696 € 52.67 € 300,008 75% 4,272 2 vestings in 2020 -2021 1st vesting 7 May 2020 € 56.27 2nd vesting 5 May 2021 € 100.25 2016 Shares 5,696 € 52.67 € 300,008 75% 4,272 1 vesting in 2020 7 May 2020 € 53.80 2017 Units 4,404 € 73.81 € 325,059 50% 2,202 2 vestings in 2021 -2022 1st vesting 5 May 2021 € 100.25 2017 Shares 4,404 € 73.81 € 325,059 50% 2,202 1 vesting in 2021 5 May 2021 € 97.58 2018 Units 4,208 € 106.94 € 450,004 50% 2,104 2 vestings in 2022 -2023 Not yet known 2018 Shares 4,208 € 106.94 € 450,004 50% 2,104 1 vesting in 2022 Not yet known 2019 Units 5,530 € 122.06 € 674,992 Not yet known Not yet known 2 vestings in 2023 -2024 Not yet known 2019 Shares 5,530 € 122.06 € 674,992 Not yet known Not yet known 1 vesting in 2023 Not yet known 2020 Units 9,920 € 68.04 € 674,957 Not yet known Not yet known 2 vestings in 2024 - 2025 Not yet known 2020 Shares 9,920 € 68.04 € 674,957 Not yet known Not yet known 1 vesting in 2024 Not yet known 2021 Shares 12,121 € 111.38 € 1,350,037 Not yet known Not yet known 1 vesting in 2025 Not yet known. 
Calculations may involve rounding to the nearest unit. * Vesting will occur according to the respective rules and regulations of each plan. 100% of units and shares granted since 2016 are conditional to the achievement of performance conditions.
NOTE: 2016 to 2018 awards were granted to Mr Faury before his appointment as CEO and should vest during his mandate.
Performance Conditions of LTIP 2017: – The performance conditions for LTIP 2018 were determined as follows: if the Company reports a positive cumulative EBIT, a minimum portion of 50% of the Performance Units / Shares vest. If the Company reports a negative cumulative EBIT resulting from exceptional circumstances, the Board of Directors can decide at its sole discretion to vest a maximum portion of 50% of the Performance Units / Shares. – 50% to 150% of the allocation would be granted depending on the compounded achievement of the two following performance criteria: – 75% of average EPS (“Ave EPS”): determined on a linear basis depending on three-year Ave EPS for the 2018, 2019 and 2020 fiscal years, with the three-year Ave EPS target for an allocation of 100% equal to € 6.73; and – 25% of cumulative FCF (“Cum FCF”): determined on a linear basis depending on three-year Cum FCF for the 2018, 2019 and 2020 fiscal years, with the three-year Cum FCF target for an allocation of 100% equal to € 13,000 million.


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 211 Airbus / Registration Document 2021 4. 
Based on the above, the ratio between the fixed part of the remuneration of the CEO in 2021 (Base Salary, annual contribution to the Company’s defined contribution pension plan and benefits) and the variable part of the remuneration (Variable Remuneration related to 2021 paid-out in 2022 and LTIP vesting in 2021) is 41% / 59% (versus 49% / 51% in 2020).
Based on the above, the ratio between the fixed part of the remuneration of the CEO in 2021 (Base Salary, annual contribution to the Company’s defined contribution pension plan and benefits) and the variable part of the remuneration (Variable Remuneration related to 2021 paid-out in 2022 and LTIP vesting in 2021) is 41% / 59% (versus 49% / 51% in 2020).
e) Share Ownership. 
The CEO owned 24,495 Airbus SE shares on 31 December 2021. The CEO has reached the target of 200% of the Base Salary in 2021 thanks to a personal investment plan in Airbus SE shares.
Please refer to the AFM website www.afm.nl for any further information related to the transactions of the CEO.
f) Employee Share Ownership Plan (ESOP)
In March 2021, the Company offered all eligible employees the opportunity to subscribe to a share matching plan, through which the Company matches a certain number of directly acquired shares with a grant of matching shares. This ratio varies depending on the number of shares acquired at fair market value by the employees, with a maximum discount of 44%. The total offering was up to 2.2 million shares of Airbus SE, open to all qualifying employees. Information about the plan can be found on the Company’s website.
Under the umbrella of the ESOP 2021, a dedicated UK tax advantageous Share Incentive Plan (“SIP”) was also deployed in March 2021.
Although the CEO was eligible for the plan, he did not participate in the ESOP 2021 plan leaving more shares for employees in order to favour the development of employee shareholding.
g) Benefits. 
Costs of benefits provided through applicable mandatory collective and social security plans are accounted for among social charges (please refer to Note 34 to the IFRS Consolidated Financial Statements for further details). The monetary value of other benefits provided to the CEO in 2021 amounts to € 32,479 (vs € 33,790 in 2020).
h) Retirement. 
Until the end of 2019, the retirement benefit of the CEO accrued through a defined benefit commitment. Following the Board of Directors decision approved in the AGM 2020, the accrued pension rights under this commitment have been frozen based on the seniority of the CEO as Executive Committee member at the end of 2019. A replacement target ratio has therefore been set at 52% of his Base Salary (i.e. 26% of the sum of his Base Salary and his target VR) and will no longer accrue. The pension rights under this commitment remain unvested until the retirement date of the CEO.
The pension rights arising from the Company’s defined contribution plan (i.e. contribution of 20% of the pensionable remuneration, which is the Base Salary and the most recently paid VR) are deducted from the frozen pension rights described above.
Review of Achievement of Performance Conditions:
On 16 February 2022, the Board of Directors noted the achievement of the performance conditions of the 2018 plan, i.e. for the 2019, 2020 and 2021 fiscal years. The three-year average EPS was € 2.27 and the three-year Cum FCF was € 3,230 million, after normalisation to align them with policies in force when setting the target (notably IFRS 15 and A220 impacts).
The cumulative EBIT for the 3-year period is positive, leading, according to the policy, to the vesting of 50% of Performance Shares and Units. The positive performances of 2019 and 2021 exercises did not mitigate the 2020 exercise strongly impacted by the sanitary crisis leading to no vesting above 50%.
For reasons of confidentiality, the precise targets set for the average EPS and cumulative Free Cash Flow, even though they have been properly established and validated in a suitable manner, cannot be publicly disclosed as these objectives are considered as competitive sensitive information. Nonetheless, in the spirit of providing the highest level of transparency to our shareholders and to adhere to best practices, retrospective information demonstrating the stringency of the targets set by the Board of Directors is provided for the previous LTIP, as follows:
Date of grants KPI Number of units. 
Target for a 100% allocation Achieved. 
Performance achievement in percentage. 
Compounded performance achievement in percentage. 
Resulting vesting in number. 
For comparison, average EPS for the last 3 reported years at the date of grant 2016 Ave EPS 11,392 € 4.40 € 3.35 50% 75% 8,544 € 2.76(1) Cum FCF € 5,774m € 11,218m 150% 2017 Ave EPS 8,808 € 6.00 € 1.83 50% 50% 4,404 € 2.28(2) Cum FCF € 9,339m € 4,331m 50% 2018 Ave EPS Cum FCF 8,416 € 6.73 € 13,000m € 2.27 € 3,230m 50% 50% 50% 4,208 € 2.81(3) (1) Average EPS of 2015, 2014 and 2013. (2) Average EPS of 2016, 2015 and 2014. (3) Average EPS of 2017, 2016 and 2015.


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 212 Airbus / Registration Document 2021. 
The present value of the remaining CEO’s pension obligation related to the frozen defined benefit commitment is estimated annually by an independent actuarial firm according to the international accounting standard IAS19 as applied by the Company for post-employment benefits. As of 31 December 2021, the defined benefit obligation amounted to € 9,046,433 (€ 9,423,777 in 2020). This obligation has been accrued in the 2021 Consolidated Financial Statements and will be updated annually up to the retirement date of the CEO considering future changes on economic assumptions or other factors like salary increase.
For the fiscal year 2021, the cost related to the CEO’s pension rights accrued under Company’s plans during the year represented an expense of € 1,138,794 (versus € 1,179,332 in 2020)).
The annual cost of pension rights accrued under applicable mandatory collective and state pension plans are accounted for among social charges (please refer to Note 34 to the IFRS Consolidated Financial Statements for further details).
i) Clawback. 
The Board of Directors did not apply any clawback in 2021.
j) Pay Ratio. 
The Dutch Corporate Governance Code recommends that the Company provides a ratio comparing the compensation of the CEO and that of a “representative reference group” determined by the Company.
The Company’s pay ratio is calculated by comparing the compensation of the CEO with the average compensation of fulltime equivalent permanent employees from France, Germany, the UK and Spain for the Company, excluding subsidiaries (encompassing around 99,000 employees).
Taking into account stakeholders expectations, the aggregate compensation over the fiscal year that was used as a reference amount has changed to calculate the 2021 ratio: in addition to the gross sum of the Base Salary, annual bonus, profit and success sharing, overtime, premium for work conditions and other premiums that was taken into account in previous calculations, the social charges, the value of benefits and pension contributions and the face value of LTIP at grant date have been included.
Based on this new methodology, the ratio between the compensation of the CEO (including base salary, variable remuneration, social charges, benefits, pension contributions and LTIP grant face value) and the average compensation of full-time equivalent permanent employees for the fiscal year to which this report relates is 59 (for 2020: 58 based on the new methodology as described above) (rounded to the nearest integer).
Note for information: The evolution of the pay-ratio between 2020 and 2021 based on the new methodology has been considered by the RNGC when discussing the CEO remuneration for 2022.
k) Severance. 
No payment has been made to the CEO in 2021 related to severance or other termination indemnity.
Under the current CEO’s appointment terms and conditions, the payment of an indemnity in case of termination would be subject to performance conditions. These conditions would be fulfilled if the collective and individual components of the VR for the last two financial years preceding the financial year during which the termination occurs have been assessed by the Board of Directors at 100% or more.


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 213 Airbus / Registration Document 2021 4
l) Development of the compensation. 
The table below provides an overview of the development of the direct cash compensation paid to the CEO during a financial year composed by the Base Salary plus the VR (as defined below) and of the Employee Compensation (as defined below).
Financial year 2021 2020 2019 2018 2017. 
I. CEO’s direct cash compensation. 
Annual Base Salary (in € thousand) 1,350 1,350 1,392(1) 1,500 1,500. 
VR (in € thousand)(2) 1,404 1,553 2,318 2,168 1,913. 
Total 2,754 2,903 3,710 3,668 3,413. 
Annual Variation -5.1% -21.8%% +1.1% +7.5% -0.6%
II. Long-Term Incentive Plan (in € thousand)(3) 1,350 1,350 1,350 -1,500. 
III. Company Performance. 
EBIT Adjusted (in € million) 4,865 1,706 6,946 5,834 4,253. 
Annual Variation +185% -75% +19% +37% +8%
FCF before M&A and customer financing (in € million) 3,515 (6,935) 3,509 2,912 2,949. 
Annual variation n.a -298% +21% -1% +109%
IV. Employee Compensation (in € thousand)(4) 73.4 72.0 75.1 73.6 71.0. 
Annual Variation +2.0% -4.1% +2.0% +3.6% 0.0% (1) Base salary 2019 relates to the former CEO up to 10 April 2019 and to the current CEO from 10 April 2019. (2) VR paid during the financial year at stake in relation to the previous financial year. In 2020, the VR paid is related to the former CEO from 1 January 2019 up to 10 April 2019 (based on target) and to the current CEO from 10 April 2019 up to the end of the year 2019. As a reminder, the current CEO decided in 2020 to donate the equivalent to his VR related to 2019 to non-governmental organisations and humanitarian organisations. (3) Face value of LTIP granted in the financial year. No LTIP was granted in 2018 to the former CEO due to his future departure. (4) Average compensation of full-time equivalent permanent employees from France, Germany, the UK and Spain for the Company, excluding subsidiaries, composed by gross sum of the Base Salary, annual bonus, profit and success sharing, overtime, premium for work conditions and other premiums. For the 2020 financial year, the amount presented has been adjusted based on final figures. For the 2020 financial year, the amount presented has been adjusted based on final figures excluding impact on non-active workforce related to the sanitary crisis. For the 2021 financial year, the amount presented is still an estimate and will be adjusted next year.
4.2.1.4 Implementation of the Remuneration Policy in 2021: Non-Executive Directors. 
This section describes how the Remuneration Policy was implemented in 2021 in respect of the Non-Executive Directors. In line with the Remuneration Policy, the implementation thereof with regard to the Non-Executive Directors aims at ensuring fair compensation and protecting the independence of the Board’s Members. Their remuneration should be commensurate to the time spent and the responsibilities of their role on the Board of Directors.
The last review of the Board remuneration was undertaken in 2018 with the support of an independent consultant. The Board remuneration is in line with market practice, incentivises attendance and recognises the strategic role played by the Board of Directors in the Company’s developments. The CEO is the only Member of the Board of Directors who is not entitled to any Board membership fee.
In 2021, Non-Executive Members of the Board of Directors were entitled to the following fees: a) Board fees: – fixed fee for membership of the Board of Directors (EUR/year): – Chairman of the Board: 210,000, – Member of the Board: 80,000; – attendance fees (EUR / Board meeting): – Chairman: 15,000, – Member: 10,000.
Attendance fees shall decrease by 50% in case of an attendance by phone or a Board meeting held by phone.
b) Committee fees: – fixed fee for membership of a Committee (EUR/year): – Chairman: 30,000, – Member of a Committee: 20,000; – attendance fee for membership of a Committee applicable to chair and members (EUR / additional meeting above four meetings per Committee per year, whether these meetings were held physically or by phone): – physical participation: 3,000 if the Chair or Member is based in Europe and double attendance fee amount, i.e. 6,000 if the Chair or Member is based outside Europe, – participation by phone (whether the meeting is held physically or by phone): 1,500.


4. Corporate Governance / 4.2 Interests of Directors and Principal Executive Officers 214 Airbus / Registration Document 2021. 
The remuneration of the Non-Executive Members of the Board of Directors was as follows: (In €) 2021 2020. 
Fixum(1) Attendance Fees(2) Total Fixum(1) Attendance Fees(2) Total. 
Non-Executive Board Members. 
René Obermann(3) 210,000 90,000 300,000 117,738 76,250 193,988. 
Victor Chu 100,000 43,000 143,000 100,000 78,000 178,000. 
Jean-Pierre Clamadieu(4) 130,000 67,500 197,500 127,087 90,000 217,087. 
Ralph D. Crosby Jr. 100,000 61,000 161,000 100,000 83,000 183,000. 
Lord Drayson 120,000 49,500 169,500 120,000 80,000 200,000. 
Mark Dunkerley(5) 100,000 66,000 166,000 70,879 48,000 118,879. 
Stephan Gemkow(5) 100,000 63,000 163,000 70,879 58,000 128,879. 
Catherine Guillouard 130,000 67,500 197,500 130,000 93,000 223,000. 
María Amparo Moraleda Martínez 130,000 54,500 184,500 130,000 85,000 215,000. 
Claudia Nemat 100,000 56,500 156,500 100,000 80,000 180,000. 
Carlos Tavares 80,000 45,000 125,000 80,000 70,000 150,000. 
Former Non-Executive Board Members. 
Denis Ranque(6) N/A 61,731 35,000 96,731. 
Hermann-Josef Lamberti(7) N/A 35,274 35,000 70,274. 
Total 1,300,000 663,500 1,963,500 1,243,588 911,250 2,154,838 (1) Fixum includes a base fee for Board membership and Committee membership within the Audit Committee, the Remuneration, Nomination and Governance Committee (“RNGC”) and/or the Ethics, Compliance and Sustainability Committee (“ECSC”) as the case may be. The fixum for the year 2021 was paid 50% in January 2021 and 50% in July 2021. The fixum for the year 2020 was paid 50% in January 2020 and 50% in July 2020. (2) 2021 attendance fees include the Board attendance fees and the fees in relation to Audit Committee, RNGC and ECSC meetings. The Board attendance fees related to the first semester 2021 were paid in July 2021, those related to the second semester 2021 were paid in January 2022. The Committees’ attendance fees related to full year 2021 were paid in January 2022. (3) Chairman of the Board of Directors since 16 April 2020. Member of the Audit Committee until 16 April 2020. Member of the former Ethics & Compliance Committee between 30 July 2019 and 16 April 2020. As a reminder, René Obermann waived half of his 2020 remuneration (including fixum and attendance fees as Chairman of the Board). (4) Member of the former Ethics & Compliance Committee until 16 April 2020. Chair of the ECSC since then. (5) Member of the Board of Directors and of the Audit Committee since 16 April 2020. (6) Chairman of the Board of Directors and of the former Ethics & Compliance Committee until 16 April 2020. (7) Member of the Board of Directors and of the Audit Committee until 16 April 2020.
The total aggregated remuneration (i.e. fixum and attendance fee) of the Non-Executive Members of the Board of Directors was respectively € 2,350,176 in 2019, € 2,010,910 in 2018 and € 2,080,403 in 2017.
The applicable fixum for Board chair(wo)manship as well as the applicable attendance fees for Board membership and chair(wo)manship remain unchanged since 1 January 2016 (first comprehensive revision since 2007) following the decision made at the 2016 AGM to increase the remuneration of the Chair (fixum by € 30,000 and attendance fees by € 5,000) and double (to € 10,000) the attendance fees of the non-executive Board Members in order to be in line with market practice, incentivise attendance and recognise the strategic role played by the Board of Directors in the Company developments. The applicable fixum for Board membership as well as Committee membership and chair(wo)manship remain unchanged since 2007.
The applicable attendance fees for Committee membership remain unchanged since 1 January 2019 following the decision made at the 2019 AGM to allocate an attendance fee above four meetings per Committee per year in order to take into account Directors’ attendance at a greater number of Committee meetings when the workload substantially intensifies due to exceptional circumstances.
4.2.1.5 Miscellaneous. 
Policy for Loans and Guarantees Granted. 
The Company’s general policy is not to grant any loan to the members of the Board of Directors. Unless the law provides otherwise, the members of the Board of Directors shall be reimbursed by the Company for various costs and expenses, like reasonable costs of defending claims. Under certain circumstances, such as an act or failure to act by a member of the Board of Directors that can be characterised as intentional, intentionally reckless, or seriously culpable, there will be no entitlement to this reimbursement. The Company has also taken out liability insurance (“D&O” – Directors & Officers) for the persons concerned.
See “– 4.3.3 Long-Term Incentive Plans”.
4.2.2 Long-Term Incentives Granted to the Chief Executive Officer


4. Corporate Governance / 4.3 Employee Success Sharing and Incentive Plans 215 Airbus / Registration Document 2021 4
4.2.3 Related Party Transactions. 
Reflecting Article 2:129(6) of the Dutch Civil Code, Article 18.5 of the Articles of Association provides that “a Director shall not take part in the deliberations or decision-making if he has a direct or indirect personal interest which conflicts with the interests of the Company and of the enterprise connected with it. If as a result thereof no resolution of the Board of Directors can be adopted, the resolution is adopted by the General Meeting”.
During the years 2019, 2020 and 2021, no agreement was entered into by the Company with one of its Directors or principal officers or a shareholder holding more than 5% of the voting rights of the Company outside the ordinary course of business and in conditions other than arm’s length conditions. For more information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 10: Related party transactions” for the year-ended 31 December 2021, “Notes to the IFRS Consolidated Financial Statements – Note 10: Related party transactions” for the year-ended 31 December 2020, “Notes to the IFRS Consolidated Financial Statements – Note 9: Related party transactions” for the year-ended 31 December 2019, as incorporated by reference herein.
For a description of the relationships between the Company and its principal shareholders, see “– General Description of the Company and its Shareholders – 3.3.2 Relationships with Principal Shareholders”. Other than the relationships between the Company and its principal shareholders described therein, there are no potential conflicts of interest between the duties to the Company of the Directors and their respective private interests or other duties.
4.3 Employee Success Sharing and Incentive Plans 4.3.1 Employee Success Sharing and Incentive Agreements. 
The Company’s remuneration policy is strongly linked to the achievement of individual and Company objectives, both for each Division and for the overall Company. Since 2012, an annual Performance and Restricted Unit plan has been established for the senior management of Airbus (see “– 4.3.3 Long-Term Incentive Plans”), and employees are offered shares at favourable conditions within the context of an Employee Share Ownership Plan (see “– 4.3.2 Employee Share Ownership Plans”).
Success sharing schemes which are implemented in the Company in more than 30 countries, including France, Germany, Spain and the UK, follow one set of common rules, ensuring a consistent application across the group.
4.3.2 Employee Share Ownership Plans. 
Enabling employees to participate in the results of the Company is a key element in the Airbus benefits policy. Since its creation, the Company has developed a philosophy based on sharing the added value created by the Company with all employees (including the CEO). Therefore, the Company has regularly offered qualifying employees the opportunity to purchase shares on favourable terms through the ESOP.
According to shareholders’ resolutions adopted at the AGM, the powers to issue shares and to set aside preferential subscription rights of existing shareholders have been granted to the Board of Directors at the 2021 AGM. Such powers include the approval of ESOP.
The following table summarises the main terms of the ESOPs conducted over the last three years:
Year Price per share Nominal value per share Number of shares issued Date of issuance 2019 € 97.76(1) / € 104.38(2) / € 134.40(3) € 1 € 1 1,728,800 55,452 2 May 2019 19 November 2019 2020 € 136.00(1) / € 136.60(2) / € 90.09(3) € 1 € 1 891,633 84,522 4 May 2020 18 November 2020 2021 € 89.52(1) / € 93.90(2) / € 114.90(3) € 1 € 1 1,871,546 62,874 18 March 2021 18 October 2021 (1) Shares purchased within context of French group employee savings plan. (2) Shares purchased directly. (3) Under the umbrella of the ESOP, a dedicated UK tax advantageous Share Incentive Plan, SIP, was also deployed in 2018, 2019 and 2020.


4. Corporate Governance / 4.3 Employee Success Sharing and Incentive Plans 216 Airbus / Registration Document 2021. 
In 2021, the Board of Directors approved a new ESOP scheme. Eligible employees were able to purchase a fixed number of previously unissued shares at fair market value (5, 10, 15, 30, 60 or 100 shares). Airbus matched each fixed number of shares with a number of the Company free shares based on a determined ratio (5, 9, 12, 20, 35 and 55 free shares). During a custody period of at least one year, employees are restricted from selling the shares, but have the right to receive all dividends paid. Employees who directly purchased the Company shares have, in addition, the ability to vote at the Annual Shareholder Meetings. The subscription price was equal to the closing price at the Paris stock exchange on 14 February 2021 and amounted to € 93.90. Investing through a mutual fund led to a price which corresponds to the average price at the Paris stock exchange during the 20 trading days immediately preceding 12 February 2020 (2018: 13 February 2019), resulting in a price of € 89.52. In 2021, the Company issued and sold 1,442,645 ordinary shares with a nominal value of € 1.00 each. In 2021, the Company issued and distributed 491,775 matching ordinary shares with a nominal value of € 1.00 each. Compensation expense (excluding social security contributions) of € 49 million was recognised in connection with ESOP. The Company intends to implement an ESOP in 2022, subject to approval by the Board of Directors, open to all qualifying employees (including the CEO). With future ESOP, the Company intends to offer shares to eligible employees through the issuance of shares or free distribution of shares or other existing or new securities giving access to the capital as a matching contribution. This plan would aim at favouring the development of employee shareholding.
4.3.3 Long-Term Incentive Plans. 
In 2014 and 2015, based on the authorisation granted to it by the shareholders’ meetings (see dates below), the Board of Directors approved the granting of LTIP Performance Units and Restricted Units in the Company. The grant of so-called “units” will not physically be settled in shares but represents a cash-settled plan in accordance with IFRS 2. Since 2016, the Board of Directors approved an LTIP Performance Units and Performance Shares Plan.
The principal characteristics of these Performance and Restricted Units and Performance Shares as of 31 December 2021 are set out in the “Notes to the IFRS Consolidated Financial Statements – Note 33: Share-based payment”. They are also summarised in the tables below:
Sixteenth tranche. 
Date of Board of Directors meeting (grant date) 13 November 2014. 
Performance and Restricted Unit plan. 
Performance Units Restricted Units. 
Number of units granted(1) 1,114,962 291,420. 
Number of units outstanding --
Units granted to: -- Mr Guillaume Faury* 12,640 --- the ten employees having being granted the highest number of units during the year 2014 (sixteenth tranche) 176,460 -
Total number of eligible beneficiaries 1,621. 
Vesting dates. 
The Performance and Restricted Units will vest if the participant is still employed by an Airbus company at the respective vesting dates and in the case of Performance Units, upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years: -- 50% expected in June 2018; -- 50% expected in June 2019.
Number of vested units 814,238 271,275 (1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition). * For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.


4. Corporate Governance / 4.3 Employee Success Sharing and Incentive Plans 217 Airbus / Registration Document 2021 4. 
Seventeenth tranche. 
Date of Board of Directors meeting (grant date) 29 October 2015. 
Performance and Restricted Unit plan. 
Performance Units Restricted Units. 
Number of units granted(1) 926,398 240,972. 
Number of units outstanding 340,239 113,086. 
Units granted to: -- Mr Guillaume Faury* 10,656 --- the ten employees having being granted the highest number of units during the year 2015 (seventeenth tranche) 156,446 -
Total number of eligible beneficiaries 1,564. 
Vesting dates. 
The Performance and Restricted Units will vest if the participant is still employed by an Airbus company at the respective vesting dates and in the case of Performance Units, upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years: -- 50% expected in June 2019; -- 50% expected in June 2020.
Number of vested units 311,473 113,711 (1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition). * For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.
Eighteenth tranche. 
Date of Board of Directors meeting (grant date) 25 October 2016. 
Performance Units and Performance Shares plan. 
Performance Units Performance Shares. 
Number of units/shares granted(1) 615,792 621,198. 
Number of units/shares granted through Equity Pool(2) 1,762 1,762. 
Number of units/shares outstanding 432,617 436,694. 
Units/shares granted to: -- Mr Guillaume Faury* 5,696 5,696 -- the ten employees having being granted the highest number of units/shares during the year 2016 (eighteenth tranche) 79,504 85,200. 
Total number of eligible beneficiaries 1,671. 
Vesting dates. 
The Performance Units and Shares will vest if the participant is still employed by an Airbus company at the respective vesting dates and in the case of Performance Units and Shares, upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years: -- Performance Units: -- 50% expected in May 2020, -- 50% expected in May 2021; -- Performance Shares: 100% expected in May 2020. 
Number of vested units 654 654 (1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition). (2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions. * For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.


4. Corporate Governance / 4.3 Employee Success Sharing and Incentive Plans 218 Airbus / Registration Document 2021. 
Nineteenth tranche. 
Date of Board of Directors meeting (grant date) 30 October 2017. 
Performance Units and Performance Shares plan. 
Performance Units Performance Shares. 
Number of units/shares granted(1) 421,638 425,702. 
Number of units/shares granted through Equity Pool(2) 1,898 1,898. 
Number of units/shares outstanding 402,925 406,989. 
Units/shares granted to: -- Mr Guillaume Faury* 4,404 4,404 -- the ten employees having being granted the highest number of units/shares during the year 2017 (nineteenth tranche) 53,808 57,872. 
Total number of eligible beneficiaries 1,601. 
Vesting dates. 
The Performance Units and Shares will vest if the participant is still employed by an Airbus company at the respective vesting dates and in the case of Performance Units and Shares, upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years: -- Performance Units: -- 50% expected in May 2021, -- 50% expected in May 2022; -- Performance Shares: 100% expected in May 2021. 
Number of vested units 94 94 (1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition). (2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions. * For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.
Twentieth tranche. 
Date of Board of Directors meeting (grant date) 30 October 2018. 
Performance Units and Performance Shares plan. 
Performance Units Performance Shares. 
Number of units/shares granted(1) 278,376 281,181. 
Number of units/shares granted through Equity Pool(2) 6,664 6,664. 
Number of units/shares outstanding 281,306 284,111. 
Units/shares granted to: -- Mr Guillaume Faury* 4,208 4,208 -- the ten employees having being granted the highest number of units/shares during the year 2018 (twentieth tranche) 23,578 26,383. 
Total number of eligible beneficiaries 1,626. 
Vesting dates. 
The Performance Units and Shares will vest if the participant is still employed by an Airbus company at the respective vesting dates and in the case of Performance Units and Shares, upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years: -- Performance Units: -- 50% expected in May 2022, -- 50% expected in May 2023; -- Performance Shares: 100% expected in May 2022. 
Number of vested units -- (1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition). (2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions. * For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.


4. Corporate Governance / 4.3 Employee Success Sharing and Incentive Plans 219 Airbus / Registration Document 2021 4. 
Twenty-first tranche. 
Date of Board of Directors meeting (grant date) 29 October 2019. 
Performance Units and Performance Shares plan. 
Performance Units Performance Shares. 
Number of units/shares granted(1) 247,508 247,508. 
Number of units/shares outstanding 247,508 247,508. 
Units/shares granted to: -- Mr Guillaume Faury* 5,530 5,530 -- the ten employees having being granted the highest number of units/shares during the year 2019 (twenty-first tranche) 28,058 28,058. 
Total number of eligible beneficiaries 1,576. 
Vesting dates. 
The Performance Units and Shares will vest if the participant is still employed by an Airbus company at the respective vesting dates and in the case of Performance Units and Shares, upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years: -- Performance Units: -- 50% expected in May 2023, -- 50% expected in May 2024; -- Performance Shares: 100% expected in May 2023. 
Number of vested units -- (1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition). * For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.
Twenty-second tranche. 
Date of Board of Directors meeting (grant date) 28 October 2020. 
Performance Units and Performance Shares plan. 
Performance Units Performance Shares. 
Number of units/shares granted(1) 420,004 420,004. 
Number of units/shares outstanding 420,004 420,004. 
Units/shares granted to: -- Mr Guillaume Faury* 9,920 9,920 -- the ten employees having being granted the highest number of units/shares during the year 2020 (twenty-second tranche) 48,610 48,610. 
Total number of eligible beneficiaries 1,602. 
Vesting dates. 
The Performance Units and Shares will vest if the participant is still employed by an Airbus company at the respective vesting dates and in the case of Performance Units and Shares, upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years: -- Performance Units: -- 50% expected in June 2024, -- 50% expected in June 2025; -- Performance Shares: 100% expected in May 2024. 
Number of vested units -- (1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of Airbus) during the performance period, the Board of Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition). * For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 34: Remuneration”.


4. Corporate Governance / 4.3 Employee Success Sharing and Incentive Plans 220 Airbus / Registration Document 2021. 
The information in respect of stock options and performance and restricted shares cancelled and exercised during the year are set out in “Notes to the IFRS Consolidated Financial Statements – Note 32: Share-based payment”.
SHAREHOLDING IN THE COMPANY OF THE MEMBERS OF THE BOARD OF DIRECTORS AT THE END OF 2021. 
Member of the Board of Directors Shareholding -- Mr Guillaume Faury 24,495 ordinary shares -- Mr Jean-Pierre Clamadieu 2,000 ordinary shares -- Ms. Amparo Moraleda 1,700 ordinary shares -- Mr Mark Dunkerley 151 ordinary shares(1) -- Ms. Catherine Guillouard 185 ordinary shares -- Mr Ralph Dozier Crosby, Jr. 10 ordinary shares (1) Indirect shareholding through a legal entity.
No other Member of the Board of Directors holds shares or other securities in the Company.


4. Corporate Governance / 221 Airbus / Registration Document 2021 4


5. 
Chapter 222 Airbus / Registration Document 2021


5. 
General Information 5.1 Entity Responsible for the Universal Registration Document 224 5.2 Statement of the Entity Responsible for the Universal Registration Document 224 5.3 Information Policy 224 5.4 Undertakings of the Company regarding Information 225 5.5 Significant Changes 225 5.6 Statement on Approval 225 223 Airbus / Registration Document 2021


5. General Information / 5.1 Entity Responsible for the Universal Registration Document 224 Airbus / Registration Document 2021 5.1 Entity Responsible for the Universal Registration Document 5.2 Statement of the Entity Responsible for the Universal Registration Document. 
Airbus SE. 
The Company declares that, having taken all reasonable care to ensure that such is the case, the information contained in the document is, to the best of the Company’s knowledge, in accordance with the facts and contains no omission likely to affect its import.
The legal person responsible for the information in the Universal Registration Document is Airbus SE. The registered office of Airbus SE is Mendelweg 30, 2333 CS Leiden, The Netherlands.
Airbus SE represented by:
Guillaume Faury. 
Chief Executive Officer – Contact details for information: Mrs Helene Le Gorgeu Head of Investor Relations and Financial Communication, Airbus SE 2 rond-point Émilie Dewoitine BP 90112 31703 Blagnac France Telephone: +33 5 82 05 53 01 E-mail: ir@airbus.com – Special toll-free hotlines are available to shareholders in France (0 800 01 2001), Germany (00 800 00 02 2002) and Spain (00 800 00 02 2002). An international number is also available for the rest of the world (+33 800 01 2001).
– An e-mail box is dedicated to shareholders’ messages: ir@airbus.com.
A website, www.airbus.com, provides a wide range of information on the Company, including the Board of Directors’ report. Additionally, for the life of this Registration Document, copies of: – the Company’s Articles of Association; – the Registration Document filed in English with, and approved by, the AFM on 29 July 2019; – the Registration Document filed in English with the AFM without prior approval on 23 March 2020; – the Registration Document filed in English with the AFM without prior approval on 26 March 2021; and – the Consolidated Financial Statements (IFRS) and the Company Financial Statements of Airbus SE for the years ended 31 December 2019, 2020 and 2021, together with the related Auditors’ reports, may be inspected at the Company’s registered office at: Airbus SE, Mendelweg 30, 2333 CS Leiden, the Netherlands, Seat (statutaire zetel) Amsterdam, Tel.: +31 (0)71 5245 600.
The information on the website of the Company has not been scrutinised or approved by the competent authority and does not form part of the Registration Document unless that information is incorporated by reference into the Registration Document.
5.3 Information Policy


5. General Information / 5.4 Undertakings of the Company regarding Information 225 Airbus / Registration Document 2021 5
5.4 Undertakings of the Company regarding Information. 
Given the fact that the shares of the Company are listed on Euronext Paris, on the regulierter Markt (in the sub-segment Prime Standard) of the Frankfurt Stock Exchange and on the Madrid, Bilbao, Barcelona and Valencia Stock Exchanges, the Company is subject to certain laws and regulations applicable in France, Germany and Spain in relation to information, the main ones of which are summarised in “General Description of the Company and its Share Capital – 3.1.3 Governing Laws and Disclosures”.
5.5 Significant Changes 5.6 Statement on Approval. 
As of the date of the Registration Document, there has been no significant change in the Company’s financial performance and there has been no significant change in the Company’s Financial Position since 31 December 2021.
This Registration Document has been filed with the AFM on 6 April 2022 in its capacity as competent authority under the Prospectus Regulation without prior approval pursuant to Article 9 of the Prospectus Regulation. This Registration Document may be used for the purposes of an offer to the public of securities or admission of securities to trading on a regulated market if approved by the AFM together with any amendments, if applicable, and a securities note and summary approved in accordance with the Prospectus Regulation.


226 Airbus / Registration Document 2021


Contact Airbus at: 2 rond-point Dewoitine BP 90112 31703 Blagnac Cedex France


Airbus SE Mendelweg 30 2333 CS Leiden The Netherlands