Airbus SE Report of the Board of Directors 2024 (Issued as of 19 February 2025)
Contents 1 Information on the Company’s Activities 3 1.1 Overview 3 1.2 Airbus (Commercial Aircraft) 8 1.3 Airbus Helicopters 20 1.4 Airbus Defence and Space 27 1.5 Other Corporate Activities 38 2 Corporate Governance 47 2.1 Board of Directors 47 2.2 Executive Committee 59 2.3 Remuneration Report 60 2.4 Dutch corporate governance code 78 2.5 Miscellaneous 80 3 Risk Management and Internal Controls 81 3.1 Risk factors 81 3.2 Enterprise Risk Management System 96 3.3 Insurance 99 3.4 Internal Control 100 3.5 Internal Audit 101 4 General Information on the Company and its Share Capital 102 4.1 Description of the Share Capital 102 4.2 Shareholding and voting rights 104 4.3 Share price performance 2024 115 4.4 Dividends 116 4.5 Taxation 117 5 Financial Information 119 5.1 Financial Performance 120 5.2 Information on Airbus SE auditors 125 6 Non-Financial Information: Sustainability Statement 126 6.1 General Information 127 6.2 Environmental information 163 6.3 Social information 209 6.4 Governance information 242 7 Vigilance Plan 252 Airbus SE/ Report of the Board of Directors 2024 1
Dear shareholders, This is the Report of the Board of Directors (the "Board Report") on the activities of Airbus SE during the 2024 financial year, prepared in accordance with Dutch law. Airbus SE is a European public limitedliability company (Societas Europaea) with its seat in Amsterdam, the Netherlands, its registered address at Mendelweg 30, 2333 CS Leiden, the Netherlands, and it is registered with the Dutch Commercial Register (Handelsregister) under number 24288945. Airbus SE, together with its subsidiaries, is referred to herein as the "Company" or “Airbus”. Airbus SE is listed in France, Germany and Spain. The Company operates in three segments: Airbus (which includes the Commercial Aircraft business) and the two divisions, Airbus Defence and Space and Airbus Helicopters. In this Board Report “Airbus” may be used to refer to the Company, and in context it may refer specifically to the Airbus segment. Airbus SE itself does not engage in the core aerospace, defence or space business of the Company, however 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, Airbus SE sets and controls objectives and approves major decisions of the Company, including by coordinating related businesses, providing services or procuring the provision of services to its subsidiaries, and pursuing financing activities in support of the business activities and strategy of the Company. For a visual overview of the Company’s organisation, please refer to the simplified structure chart in the “Appendix” to the Notes to the Financial Statements. For further information regarding the Company's business and operations, finances and results, risks, please refer to the Company’s IFRS Consolidated Financial Statements published 19 February 2025 and the Company’s other annual, quarterly and ad-hoc announcements and releases relating to the Company’s business, operations, finances and results, in each case available through the Company's website: www.airbus.com. References to the “IFRS Consolidated Financial Statements” or “Financial Statements” and the “Notes to the IFRS Consolidated Financial Statements” or “Notes to the Financial Statements” respectively refer to the Company’s consolidated financial information prepared in accordance with International Reporting Standards, and the accompanying notes thereto, published 19 February 2025, and available through the “investors” section of the Company’s website: https://www.airbus.com/en/investors. This Board Report includes forward-looking statements. Words such as “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”, “targets”, “projects”, “may” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements made about the Company’s strategy, introduction of new products and services, market expectations, production ramp-up and delivery schedules and other developments, as well as statements regarding the Company’s future performance, prospects and outlook. Forward-looking statements may be based on analyses or forecasts of future results and estimates of amounts not yet determinable. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. 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 Board Report 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, the factors described under Section 3.1 “Risk Factors”, and other facts or future developments or conditions not presently known to the Company. 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 contained herein have been based on the Company’s internal information sources, unless another source has been specified. All statements made in this Board Report are made as of the date hereof, unless specifically otherwise noted. The information included and presented in this Board Report is believed by the Company to be accurate and complete as of the date hereof, and the Company disclaims any obligation to update such information, except as may be otherwise required by law. Due to rounding, numbers presented throughout this Board Report and other documents may not add up precisely to the totals provided, and percentages may not precisely reflect the absolute figures. Airbus SE/ Report of the Board of Directors 2024 2
1 Information on the Company’s Activities 1.1 Overview 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 designs and manufactures modern and fuel-efficient airliners and associated services. Airbus is also a European leader in space systems, defence and security. In helicopters, Airbus provides efficient civil and military rotorcraft solutions and services worldwide. 2024 was a testing year for the Company, in which it adapted to challenging circumstances and refocused its efforts on key priorities, such as the commercial aircraft production ramp-up and the transformation of Defence and Space. The Company achieved a strong level of order intake across its businesses in 2024, and continues to focus on profitable growth and its decarbonisation ambition. 1.1.1 Strategy 1.1.1.1 Navigating a complex environment In recent years, the global economy encountered a series of unprecedented challenges, beginning with the global coronavirus pandemic in 2020. Since then, the world has transitioned into a period characterised by increasing complexity and heightened uncertainty. This new phase has been shaped by a convergence of several factors: shifting geopolitical dynamics, economic instability and political uncertainty. First, geopolitical tensions have intensified globally, with a resurgence of armed conflicts, such as Russia’s invasion of Ukraine in 2022 and conflicts in the Middle East. These tensions, combined with the lingering impacts of the COVID-19 pandemic have led to greater economic volatility, marked by inflationary pressures and new tensions in supply chains. Finally, political uncertainty is rising in western countries with increasingly polarised political landscapes in many nations, and an increased fragmentation of the world. Collectively, these forces have created an environment that demands agility, resilience and innovative strategies. 1.1.1.2 Addressing new strategic challenges Delivering on a record order book Airbus' backlog reached a record level of 8,658 commercial aircraft at the end of 2024, reflecting continued strong market demand and customer trust. It is Airbus' responsibility to now meet these commitments, in a timely manner, through a disciplined ramp-up and delivery excellence. Remaining a leader in innovation in aerospace and defence The Company strives to develop and bring innovative solutions to market. In the commercial aerospace market, innovation is needed to continue to make aviation safer and more competitive, while reducing its climate impact. In defence, accelerated changes in the operating environment, new threats, and the fast progress of technologies such as AI, autonomy, quantum systems and advanced materials all call for new generations of products and major upgrades of the Company’s core platforms. The need for a united Europe Europe needs to invest in its defence and security against greatly increased threats, and needs sovereign capabilities to have the strategic autonomy to defend its people, interests and values. Large and complex capabilities can be more efficiently developed and built at a European scale, yet the European defence and space segment remains largely fragmented. If aggregated, European countries’ defence spending would represent the second largest defence budget in the world, but its dispersion at the national level does not allow for effective scaling in the industry. As emphasised by former Airbus SE/ Report of the Board of Directors 2024 3
ECB President and Italian Prime Minister Mario Draghi in the “Report on the future of European competitiveness” (September 2024), consolidation of spending and selective integration of industrial capacity would support scaling up, and would foster standardisation and interoperability. The Company is eager to support the development of multi-national collaborations, and to contribute to their success and their contribution to European sovereignty in a similar vein to MBDA, NHIndustries and ArianeGroup. 1.1.1.3 Focusing on value creation To build a resilient business, Airbus focuses its efforts, in all areas of the organisation, on value creation for all stakeholders: customers, employees and partners, shareholders, and society at large. Through these strategic axes, Airbus is positioned to not only navigate current challenges but also to set a trajectory for sustained growth, bold innovation, and positive impact in the years ahead. Enhancing value for customers The commitment to deliver excellence to customers is a primary driver of the Company’s approach. In pursuit of this commitment, Airbus is scaling up production and boosting industrial resilience, while continuing to deliver best-in-class products and customer services that it continually works to improve, while continuing to give the highest priority to aviation safety and security. Enhancing value for employees and partners No company can achieve its objectives without the passion, creativity and dedication of its employees, as well as the important contributions of its suppliers and industrial partners. As Airbus works to build further on what has been achieved so far, continuing to deliver quality products and services in line with customers’ demands and constantly striving for improvement is not only a guiding principle, but also fosters an environment that serves to attract and retain the talents needed to continue this trajectory. Airbus is aiming to provide these individuals with the opportunity to contribute to exciting and cutting-edge projects, and to pursue the future of aerospace while experiencing varied and fulfilling careers in a safe and inclusive environment. Enhancing value for shareholders In the context of the production ramp up, the Company is targeting sustainable growth in earnings and cash flows, and to increase shareholder returns, while continuing to invest in preparing the future with continued support from its shareholders. Enhancing value for society As an industry leader, Airbus has a responsibility to drive social value and social impact. This commitment shapes its approach to sustainability, ethics, and people by championing a sustainable aerospace industry, upholding integrity, safety, quality, compliance and security, and empowering people as its core strength. 1.1.1.4 Focusing on five core strategic priorities As a result of the various challenges and evolutions mentioned above, while Airbus' purpose remains to pioneer sustainable aerospace for a safe and united world, the Company has refined five core strategic priorities. These priorities are designed to effectively address these challenges while ensuring that value creation for all the stakeholders remains at the heart of everything Airbus does: Resilience (a robust industrial system and broad profit base) Innovation (improve existing products, develop next generation) Sustainability (continue to pioneer sustainable aerospace) Focus (on core strengths and synergies) Scale (leverage the Company’s leading position in European aerospace) Airbus SE/ Report of the Board of Directors 2024 4
Resilience: a robust industrial system and broad profit base Strengthen the industrial system Consistently and efficiently meeting rising demand for Airbus products requires both further optimising and de-risking of end-to-end production processes and increasing overall operational robustness. In addition, Airbus introduces new automation technologies when these technologies can enhance safety, increase throughput and improve competitiveness. Scaling up commercial aircraft production to reach the targeted monthly production rates is a central objective for the Company. As these efforts naturally depend on the performance of the entire supply chain, the Company is committed to continue supporting it. Ensure that all Airbus businesses support the profit base Besides improving its industrial performance, the Company also aims to improve its economic resilience. All programmes and businesses across the three divisions must contribute to the overall profit base. Additionally, the Company believes that services activities, which are naturally linked to the Company’s products, can evolve to contribute more significantly toward the Company’s economic performance over the coming years. Innovation: improve existing products, develop next generation Keep improving on success Airbus continuously enhances its existing products to better align with customers’ expectations. Additionally, it expands its portfolio by introducing new variants to its best-selling products, broadening their applications and ensuring a better fit for diverse customer needs. For an overview of recent improvements in the Company’s various products, please refer to Sections 1.2 “Airbus (Commercial Aircraft)”, 1.3 “Airbus Helicopters”, 1.4 “Airbus Defence and Space” and 1.5.2 “Research and Technology”. Develop breakthrough next generation products At the heart of its product evolution, the Company is targeting the development of a next generation single-aisle aircraft, aiming to deliver increased efficiency and to further optimise performance. In parallel, the Company continues to invest towards maturing the technologies necessary to eventually bring a commercially viable, fully electric, hydrogen-powered commercial aircraft into service. To maintain a leadership position across all segments, the Company’s goal of pioneering next generation products and solutions also applies to helicopters and defence and space capabilities. Initiatives such as the Next Generation Rotorcraft Capability, Unmanned Aerial Systems and the Future Combat Air System illustrate the Company’s focused pursuit toward developing and applying technological advancements in aerospace. For further information on these topics please refer to Sections 1.2 “Airbus (Commercial Aircraft)”, 1.3 “Airbus Helicopters”, 1.4 “Airbus Defence and Space” and 1.5.2 “Research and Technology”. Sustainability: continuing to pioneer sustainable aerospace Airbus’ commitment to sustainability Airbus is driven by its purpose: to pioneer sustainable aerospace for a safe and united world. This pioneering spirit has powered the Company for more than fifty years, propelling it to a leading position in the aerospace industry and positioning Airbus for the long-term. Airbus takes a holistic approach to sustainability, recognising the interconnectedness of environmental and social matters, as well as their impact on the wider economy. In line with its purpose, the Company aims to pioneer solutions toward helping to reduce the environmental impact of aerospace. Airbus is working to contribute to the decarbonisation of the aerospace industry, by constantly innovating to create more fuel efficient products, and working toward their effective deployment. The Company continues to progress towards its targeted reductions in Scope 1 and 2 emissions, as well as the portion of Scope 3 emissions which are under its direct control. Airbus’ high5+ programme aims to reduce the Company’s environmental footprint in its manufacturing activities. The Company’s targets include reducing purchased energy by 20%, reducing the amount of waste produced by 20%, reducing water withdrawal by 25%, and keeping the Company’s emissions of volatile organic compounds (VOC) at current levels (even as the industrial ramp-up progresses). All targets are for 2030, against a 2015 baseline. Progress against these Airbus SE/ Report of the Board of Directors 2024 5
targets, which track CO2 emissions, energy consumption, water withdrawal, air emissions and waste can be found below in Section 6.2.2.6 “Sustainability Statement -ESRS E1 Climate change - Targets (E1-4)”. An overview of the Company’s decarbonisation levers can be found under Section 6.2.2.5 “Sustainability Statement -Action and resources (E1-3) - Mitigation”. Airbus’ commitment to society, which includes acting ethically and fairly as an employer, within the Company’s own supply chain and in the wider communities where it has an impact, is intrinsically linked to the aforementioned environmental considerations. The products and services Airbus offers to governments and public bodies allow its customers to protect citizens, defend sovereignty and advance global security. Airbus is committed to upholding robust internal governance standards, supported by clear targets and transparent reporting to create accountability. The Company believes that responsible business practices are central to building a robust and resilient business that can thrive over the long term. Making targeted catalyst investments in alternative fuels While the sustainable aviation fuel (“SAF”) ecosystem is still in its infancy (2024 production reached over 1.3 billion litres, yet only represented 0.3% of all aviation fuel), the Company believes that SAF has the potential to contribute significantly to the aviation sector’s long-term aspirational decarbonisation goal of reaching “net zero carbon emissions by 2050”. The Company is engaged in promoting the use of SAF, to facilitate the eventual emergence of an end-to-end SAF ecosystem. To this end the Company is using SAF in its own operations and working to create supply and stimulate demand, to support customers in embracing SAF in their operations, and to facilitate the emergence of new SAF production technologies. Paving the way towards hydrogen-powered commercial aviation Airbus believes hydrogen based propulsive technology holds promise to contribute to the decarbonisation of aerospace over the longer term. The Company continues to invest in maturing the key technologies of a future hydrogen powered aircraft, and continues to work to develop the ecosystem toward a maturity level that would eventually permit its ambition to bring a commercially viable, fully electric, hydrogen-powered commercial aircraft into service. For further information on this topic please refer to Section 1.2 “Airbus (Commercial Aircraft) –Strategy”. Addressing the full life cycle of the Company’s products Airbus was among the first to embrace aircraft decommissioning and recycling. As a shareholder in Tarmac Aerosave, the Company helped to establish proven methods for decommissioning, dismantling and recycling its entire product range, with up to 90% of an airplane eligible for reuse or recycling. Building on its leadership position, Airbus continued in 2024 to expand its end-of-life services with the opening of the Airbus Lifecycle Services Centre in Chengdu (China). Focus: on Airbus’ aerospace DNA and foster cross-divisional synergies While staying true to the core competencies of aerospace, where the Company focuses its resources, innovation and development, adjacent areas and businesses (such as, for example, digital technologies) enable the pursuit of further innovations. The Company aims to continue to leverage synergies among its three main businesses and at programme level, to introduce new or updated products that meet customer demand in a similar vein to the A330 Multi Role Tanker Transport (MRTT) which is a striking symbol of what the Company can achieve by combining the full span of its internal strengths. By mobilising existing expertise across its divisions, by developing new competencies, and by offering career opportunities to attract and retain the right talent, the Company aims to continue to build on its strengths. Scale: Leverage European scale Since the 1970s, Airbus has established itself as a benchmark in the commercial aircraft industry, setting the standard for innovation and collaboration while championing the vision of a united Europe. This was exemplified in the 1990s with the creation of Eurocopter in the rotorcraft segment. For both commercial aircraft and helicopters, Europe has produced industry leaders with the capability and resources to compete globally. As the major European defence and space player, Airbus has a role to play in unifying Europe in these fields as it has done in the commercial aircraft industry and in rotorcraft. Airbus SE/ Report of the Board of Directors 2024 6
1.1.2 Organisation of the Company’s businesses The Company’s business is organised into the following three operating segments: (i) Airbus (including the Commercial Aircraft business), (ii) Helicopters and (iii) Defence and Space. Airbus (Commercial Aircraft) Airbus is one of the world’s leading aircraft manufacturers of passenger and freighter aircraft and related services. In 2024, Airbus delivered 766 aircraft (compared to 735 deliveries in 2023) and received 878 gross orders (compared to 2,319 gross orders in 2023). After accounting for cancellations, net order intake for 2023 was 826 aircraft (compared to 2,094 aircraft in 2022). As of 31 December 2024, the backlog of commercial orders was 8,658 aircraft (compared to 8,598 aircraft in 2023). In 2024, Airbus (Commercial Aircraft) recorded total revenues of € 50.6 billion – representing approximately 73% of the Company’s revenues. For further information please refer to Section 1.2 “Information on the Company’s Activities -Airbus (Commercial Aircraft)”. 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 intermediate single-engine, light twin-engine, medium, and medium-heavy rotorcraft and drones which are adaptable to all kinds of mission types based on customer needs. Airbus Helicopters delivered 361 helicopters in 2024 (compared to 346 in 2023). The following table presents a breakdown by product type for the past two years. (In units) 2024 2023 Light 170 179 Medium 165 132 Heavy 26 35 thereof NH90 12 19 Total 361 346 Airbus Helicopters received 450 net orders in 2024 (compared to 393 net orders in 2023). Order intake amounted to €10.1 billion in 2024 (2023: € 8.6 billion). Military contracts accounted for 43% of this order volume, with civil sales representing the remaining 57%. At the end of 2024, Airbus Helicopters' order book stood at 893 helicopters (compared to 804 helicopters in 2023). In 2024, Airbus Helicopters recorded total revenues of €7.9 billion, representing approximately 11% of the Company’s revenues. For further information, please refer to Section 1.3 “Information on the Company’s Activities -Airbus Helicopters”. Defence and Space Airbus Defence and Space shapes and leads the European ecosystem of defence aerospace. In 2024, Airbus Defence and Space was organised in three main segments: Air Power, Space Systems and Connected Intelligence. 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 2024, Airbus Defence and Space recorded total revenues of € 12.1 billion, representing approximately 17% of the Company’s revenues. For further information, please refer to Section 1.4 “Information on the Company’s Activities -Airbus Defence and Space”. Airbus SE/ Report of the Board of Directors 2024 7
1.2 Airbus (Commercial Aircraft) Airbus is one of the world’s leading manufacturers of large commercial aircraft and provider of related services. Airbus develops and industrialises innovative technological solutions and pursues the most efficient sourcing and manufacturing possible, enabling people to connect and airlines to grow. The Airbus product line comprises successful families of jetliners ranging in capacity from 100 to more than 400 seats: the A220; the A320, civil aviation’s best-selling product line; the A330 and the A350 (including the freighter derivative the A350F). Across its portfolio, Airbus prioritises high commonality in airframes, on-board systems, cockpits and handling characteristics which significantly reduces operating costs for its customers. Airbus’ global industrial presence includes activities in Europe (France, Germany, Spain and the UK), as well as in Canada, the US, China, Japan, more widely in the Asia-Pacific region, India and the Middle East. Airbus also has field service stations, spares, support and logistics centres as well as engineering centres worldwide. Airbus benefits from industrial co-operation and partnerships with major companies and an extensive network of suppliers from around the world. See Section 1.1 “Information on the Company’s Activities -Overview” for a further introduction to Airbus. In 2024 Airbus served 86 customers with 766 deliveries of aircraft, an increase of approximately four percent compared to 2023. This was in line with guidance, and was achieved despite the complex and fast-changing operating environment (including a challenging supply chain situation and geopolitical tensions). Airbus continues to ramp-up to serve the strong demand for its commercial aircraft product portfolio, as reflected by the order backlog being at unprecedented levels (currently over 8600 aircraft). As part of the ramp up effort, Airbus has enabled all of its A320 assembly sites to be capable of producing the popular A321 model, thereby enabling the A321 to represent a bigger share of deliveries. The A320 Family programme continues to ramp up towards a rate of 75 aircraft per month in 2027. The Company is now stabilising monthly A330 production at around rate 4. Specific supply chain challenges, notably with Spirit AeroSystems, are currently putting pressure on the ramp up of the A350 and the A220. On the A350, the Company continues to target rate 12 in 2028 and is adjusting the entry-into-service of the A350 freighter variant which is now expected in H2 2027. On the A220, the Company continues to target a monthly production rate of 14 aircraft in 2026. As part of the effort to address its specific supply chain challenges, as announced on 1 July 2024 the Company signed a binding term sheet to acquire certain Airbus work packages from Spirit AeroSystems. Over the intervening period the due diligence process has continued and the assessment of the integration of the relevant production sites into the Company’s operations has progressed. Closing this acquisition and commencing the integration of these businesses is a key priority over the coming year. Strategy Airbus operates in a complex and fast changing environment, with 2024 having been a testing year. As 2024 unfolded, Airbus worked to adapt to the challenges presented, refocusing on key priorities such as the production ramp up and managing specific supply chain challenges (notably with Spirit AeroSystems), which are currently putting pressure on the ramp up of the A350 and the A220. Against this backdrop, Airbus continues to focus on profitable growth and aims to build a long-term sustainable competitive advantage, with emphasis on three areas in which Airbus invests today to prepare for tomorrow. First, Airbus aims to keep its commercial aircraft portfolio competitive and suited to evolving customer expectations, through incremental developments of current programmes and the preparation of disruptive next-generation aircraft. By endeavouring to provide excellent services to its customers, Airbus aims to remain their trusted partner across the product lifecycle. Second, Airbus is investing in protecting and improving its ability to design, develop and deliver aircraft. Airbus intends to continue to support its supply chain, strengthen its value chain presence and prepare its future industrial system. Third, Airbus’ ambition is to be at the forefront of the commercial aviation sector’s decarbonisation. The Company has set itself targets (in line with the Science-Based Targets initiative) to reduce its greenhouse gas emissions and those of the commercial aircraft Airbus produces. Fleet replacement is an immediate contributor to the commercial aviation sector’s decarbonisation effort, as the current generation of aircraft offers increased efficiency over those of previous generations. Airbus also continues to invest in enhancing existing technologies and in pursuit of further breakthroughs, in search of incremental efficiency gains for its current products and to enable the launch of a next-generation single-aisle aircraft, targeted from the middle of the next decade. Decarbonisation will also happen through new energy vectors. First, Airbus is working to encourage the development of the Sustainable Aviation Fuels (“SAF”) ecosystem through strategic partnerships and other efforts on production pathways, as Airbus SE/ Report of the Board of Directors 2024 8
Airbus believes it offers the quickest way to decarbonise current and future products. Second, Airbus has the ambition to bring a commercially viable, fully electric, hydrogen-powered commercial aircraft into service. Airbus believes fuel cell technology to be the most promising to fulfil this ambition, which would significantly reduce emissions when compared to conventional jet engine configurations. The scaling up of the hydrogen ecosystem is challenging, and is progressing at a slower pace than previously anticipated. The scalability of fuel cell technologies towards a commercially viable product will also require more time. A commercially viable product is now expected to come later than 2035. Airbus will use this additional time to further develop the performance of the fuel cell propulsion and liquid hydrogen system technologies that are expected to enable the development of the Company's first fully electric commercial aircraft, as part of its ambition to pioneer sustainable aerospace. Market 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 Section 3.1.2 “Business and Operations-related Risks -Commercial Aircraft and Helicopter Market Factors”. Demand for air transport Air transport enables highly-efficient physical links between people and the distribution of goods at a global scale, and the fundamental drivers for demand remain unchanged. The long-term market for passenger aircraft depends essentially on passenger demand for air travel, which is primarily driven by macro-economic factors (GDP, Trade), fare levels and demographic growth. Measured in Revenue Passenger Kilometres (“RPK”), 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. During the 2000s, demand for air transportation proved resilient, with passenger traffic having an average annual growth rate of 3.8% per annum despite successive shocks (including 9/11, SARS in Asia and the 2008 global financial crisis) which dampened demand. From 2010 until the COVID-19 pandemic, passenger traffic grew at an average annual growth rate of 6.0% per annum. The post-COVID air transport recovery continued strongly in 2024, with demand for air transport being mainly driven by macroeconomics and demographics, while the impact of fuel price and inflationary pressures remained measured. In 2024, IATA reported traffic (RPK) globally at 103.8% of 2019 volumes, compared to 94.1% in 2023. Average passenger load factors increased to 83.5%, a new record. Those markets which still remain below 2019 levels are essentially long-haul and international markets to/from China, which continue to improve slowly but steadily. 2024 saw heightened geopolitical tensions in the Middle East, in addition to the continuation of the war following Russia's invasion of Ukraine. The Russian market remains closed to western suppliers, and closure of Russian airspace creates an economic imbalance in favour of airlines from countries not applying sanctions, who are still able to overfly it. Closures of airspace in the Middle East have so far been largely limited to those territories directly engaged in hostilities, however air transport could be more broadly impacted if airspace closure were to affect large Middle East hubs. Beyond the impact on air traffic, the overall geopolitical situation added pressure on global supply chains and logistics. The effort to decarbonise air transport is impacting the market, with further public policy actions and regulatory measures (potentially including incentives or disincentives such as through tax policy) having effect or potentially coming to bear in the future. This may increase the cost of energy for the sector and the degree of differentiation between the costs of operation of more or less fuel-efficient aircraft. Aviation growth has been driven by consistently strong improvements in efficiency, and past increases in fuel prices have been largely passed through to consumers, although regional differences may be observed. It is possible that future ticket price increases may have a dampening effect on demand growth, but any such effect is likely to be gradual on a global basis. Air cargo market Although air cargo represents only 1% of world freight volume, it accounts for approximately 33% by value of shipments. After a period of exceptionally high demand and high yields during COVID recovery and a weak 2023 where supply grew Airbus SE/ Report of the Board of Directors 2024 9
faster than demand, air cargo market volumes consolidated during 2024 with growth of capacity and recovery of load factors and worldwide capacity above pre-COVID levels. Belly cargo capacity has been returning to the market as stored Widebody aircraft continue to re-enter service. At the end of 2024 around 100 more Widebody aircraft remained stored compared to 2019, with most expected to return to service over the next two years. Freighter conversion activity peaked during 2023. With the post-COVID rebound in passenger travel happening against the backdrop of a constrained supply of new passenger aircraft, many aircraft designated for conversion were shifted to passenger service. This trend, which has been particularly notable with respect to Single Aisle aircraft, may continue until targeted production ramp-ups of new aircraft are realised. The freighter fleet contains a higher proportion of older aircraft, and consequently future deliveries are expected to be more for replacement than growth. E-commerce growth is expected to continue to be a strong driving force and to take an increasing share of the air cargo market. Short-term headwinds include inflation, the strength of the US dollar, the impact of tariffs and trade disruption. Short-term tailwinds include pricing increases in response to container ship capacity shortage and/or geopolitical constraints to ocean transportation. Airline network development: “hub” and “point-to-point” networks Following deregulation, major airlines continued to adapt their route networks and fleets to the ongoing evolution in customer demand. Where origin-to-destination demand is sufficiently strong, airlines provide direct “point-to-point” route services, and alternatively, 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, with price competition across networks through rival airline hubs. The chosen system of route networks in turn affects aircraft demand. Airbus believes that it is well positioned to meet current and future market requirements given its complete family of products. The Entry-Into-Service of the world’s longest range single aisle aircraft, A321XLR in 2024 provides greater opportunity to airlines to open new non-stop routes, while the operating range flexibility of Airbus A350 models provide resilience in the face of airspace closures and longer flight routings. Overall growth of commercial aircraft demand Reduction of aircraft production from all suppliers due to the COVID-19 pandemic and subsequent industrial and supply chain challenges led to approximately 4,000 fewer new aircraft being delivered over the last five years than the industry had previously planned to produce. This led to longer retention of older aircraft in airline fleets, lower short-term rates of replacement and a strengthened demand for the latest fuel-efficient aircraft. Currently the industry faces a certain imbalance, as the shortage of new aircraft has triggered maintenance investment in older aircraft, which are staying in service until they can be physically replaced. Overall, the market for new commercial aircraft has evolved from a situation of oversupply during the COVID-19 pandemic to one of undersupply. The Company anticipates this supply-demand mismatch will endure as long as industry production rate and supply-chain challenges persist. In the long term, the Company's assessment is that the pandemic has not structurally changed the market for commercial aircraft. Airbus’ 2024 Global Market Forecast projects that demand for passenger traffic will continue to grow strongly until 2027 before settling towards a lower rate of approximately a 3.6% Compounded Annual Growth Rate (“CAGR”) between 2027 and 2043, with demand for air cargo growing by an approximate 3.1% CAGR over the same period. The forecast is based on macroeconomic assumptions from information services provider S&P Global and energy price projections considering the European Union Emissions Trading System (“EU-ETS”), the Carbon Offsetting and Reduction Scheme for International Aviation (“CORSIA”) and stated environmental policies of sovereign states. The forecast explored thousands of sensitivities around future energy prices, SAF penetration rates, GDP, fuel efficiency gains, etc. and reflects the median outcome of these scenarios. The forecast assumes the continued liberalisation of air transport markets, and investment in air transport infrastructure tracking growth of demand locally and regionally. Upside factors to this forecast would include stronger economic development and trade growth between nations. Downside factors to the forecast would include prolonged and significant shifts in global trade policies, travel restrictions or public policy changes that might impact economic growth or otherwise restrict air transport. Airbus forecasts a demand for approximately 42,430 new passenger and freighter aircraft deliveries over the next 20 years, of which approximately 33,510 (roughly 80%) would usually be Single Aisle and approximately 8,920 (roughly 20%) Widebody. Around 18,460 of these aircraft would replace existing aircraft. The demand for Freighters is expected to reach approximately 2,470 aircraft over the next 20 years, with roughly 940 of these being newly built aircraft and the remainder converted from the in-service passenger fleet. The centre of gravity of global air transport is expected to continue to shift towards Asia, with the overall strongest growth markets expected to be those accessing and within India and China. Airbus SE/ Report of the Board of Directors 2024 10
Airbus is focused on providing more fuel-efficient aircraft for fleet replacement and growth. Currently around 34% of the world fleet consists of the latest-generation aircraft typified by Airbus’ current portfolio. Based on its analysis Airbus continues to believe in the long-term growth potential of the industry. Market Structure and Competition Market segments: Airbus competes in the three principal market segments for aircraft with more than 100 seats Single-Aisle and Widebody aircraft each have a large breadth of application to route networks. Single-Aisle aircraft typically fly on shorter routes but may also fly on medium-to-long-haul routes. Widebody aircraft typically fly on medium-to-long-haul routes but may equally fly on short-haul sectors where airline network efficiencies, cargo demand or slot constraints favour such use. Airbus’ annual Global Market Forecast is a 20-year demand forecast for aircraft of 100 seats and above clustered by generic sizes, recognising that the size and range characteristics of future products in the industry are not fixed. In Airbus’ 2024 Global Market Forecast this demand has been clustered simply into two categories: “Typically Single-Aisle” and “Typically Widebody” but the forecast recognises a degree of permeability between these two demand categories, as illustrated by the A321XLR’s reach into longer-haul markets and the appeal of A330neo in the Middle East and Asia. Freight aircraft, such as the A350 Freighter, form a third segment, which comprises a combination of newly built and converted ex-passenger aircraft. This can provide an economical ‘second life’ for in-service aircraft from the A320 and A330 families. Small and medium sized freighters such as the A321P2F and A330P2F are mainly used in the express market (i.e. next day delivery). Larger freighters such as the A350F, launched in response to customer demand in this sector, are mainly employed in the general cargo market. The addition of this freighter variant is also expected to contribute to a greater resilience of the A350 Programme to future market fluctuations. The Airbus Global Market Forecast sees world air cargo traffic doubling by 2043 resulting in the world freighter fleet growing from 2,220 aircraft to 3,360, which includes 1,330 aircraft replacing those retired and 1,140 as a result of growth. The resulting freighter demand is 970 small (10t-40t payload, e.g. A321 size), 880 medium (40t-80t payload, e.g. A330-size) and 620 large (>80t payload, e.g. A350F-size). With the ACJ, Airbus also competes in the governmental, corporate and private jet market. The ACJ portfolio is composed of the ACJ319neo, the ACJ320neo, the ACJ330neo and the ACJ350 to compete in the bizliner segment. The ACJ TwoTwenty is the first ACJ purposely-developed business jet, extending the ACJ family, opening a new market: the Xtra Large bizjet, effectively bridging between traditional business jets and bizliners. Geographic differences The high proportion of single aisle aircraft in use in North America and Europe reflects the predominance of domestic short-range and medium-range flights, also resulting from the expansion of low-cost carriers and, particularly, in North America from development of hubs following deregulation. In comparison with North America and Europe, the Asia-Pacific region uses a greater proportion of twin-aisle aircraft, as populations tend to be more concentrated in large urban centres. The use of twin-aisle 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 flight frequency. These constraints lead to 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 will continue their growth and low-cost carriers continue to develop in the region. Competition In recent decades, 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. Notably, these competitors include Embraer, whose primary focus has been on the regional market (where its largest E2-jet product overlaps with the smallest Airbus aircraft), and the Chinese manufacturer COMAC, who in December 2022 delivered the first C919 airliner, a direct competitor to the A320neo. With deliveries of the C919 increasing and with the manufacturer having committed to future variants (including an eventual widebody), the period of a duopoly in the mainline commercial aircraft market has ended. Airbus considers that COMAC’s progression will be measured, determined, and paced by their industrial ramp-up as well as the time needed to build a reputation for reliability, support, and locally made aircraft systems. Consequently, Airbus considers the likely market penetration of this competitor to be a more significant risk in the 2030s. Airbus SE/ Report of the Board of Directors 2024 11
Customers As of 31 December 2024, Airbus had 448 customers and a total of 24,621 aircraft had been ordered, of which 15,963 aircraft had been delivered to operators worldwide. The net backlog stood at 8,658 aircraft. The table below shows Airbus’ largest firm orders by customer during the year 2024 (minimum 50 units). Customers Firm orders (1) AIR INDIA 100 AMERICAN AIRLINES 86 CDB LEASING 80 CEBU PACIFIC 70 RIYADH AIR 60 SAUDI 51 (1) Options are not included. Products The Family Concept – Commonality across the Fleet Airbus’ aircraft families promote fleet commonality. This proposition 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 a reduced need for additional training. Cross-crew qualification across families of aircraft enhances airlines' operational flexibility. In addition, the emphasis on fleet commonality permits aircraft operators to benefit from 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 an important 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. A220 Family. Complementing the A320 Family, the A220-100 and A220-300 models cover the segment up to 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, 2022 saw the first delivery of the ACJ TwoTwenty business jet, based on the A220-100, combining an intercontinental capability of over 12 hours flight duration with unmatched personal space and comfort (outfitting of the first cabin was completed in 2023). 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 2024, Airbus received 17 gross orders for the A220 Family of aircraft, with 75 aircraft having been delivered. A220 FAMILY TECHNICAL FEATURES Model Entry-into-service Typical seating (1) Range (km) Length (metres) Wingspan (metres) Airbus SE/ Report of the Board of Directors 2024 12
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. A320 Family. With more than 19,075 aircraft sold, and over 11,860 delivered by the end of 2024, the A320 Family of single aisle 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 cross-section. At 3.95 meters diameter, the A320 Family has a wider fuselage than the 737 MAX. 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 competitors are the Boeing 737 series and Comac C919. Airbus continues to invest in improvements across the product line, as exemplified by the development of the A320neo family, including the A319neo, A320neo and A321neo, and ACJ variants of the A319neo and A320neo, and most recently the A321XLR. The A320neo Family incorporates many innovations including latest generation engines and cabin improvements which together deliver up to 20% in fuel savings per seat compared with earlier A320 family aircraft. The A320neo with Pratt & Whitney engines was the first variant to receive Type Certification, from the European Union Aviation Safety Agency (“EASA”) and the United States Federal Aviation Administration (“FAA”), in November 2015, followed by the A320neo with CFM engines in May 2016. 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. 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 7,280km (4,000nm) range capable A321LR. The A321XLR, which was delivered to its launch customer, Iberia, in October 2024 is 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 with 8,700km (4,700nm) range. Since its launch in December 2010, the A320neo Family has received 11,069 firm orders from more than 140 customers, with a total of 3,765 aircraft delivered through the end of 2024. A320neo deliveries commenced in February 2016 followed by the first A321neo in April 2017 and in August 2019 the first A319neo. As against the Boeing 737 MAX Family, the A320neo family retains an approximate 60% market share of the single aisle backlog. Elbe Flugzeugwerke GmbH (“EFW”), a partnership between Airbus and Singapore-based ST Aerospace Ltd. (“STA”) offers passenger-to-freighter (“P2F”) conversion solutions for its A320 and A321 aircraft. With its freighter conversion programmes (the A330P2F, A321P2F and A320P2F), EFW is driving the development of the Airbus freighter family. At the end of 2024, a total of 50 A330P2F have been re-delivered (since 2017). In 2024, 21 further 321P2F were re-delivered, with more than 50 having been delivered since 2020. During 2024, Airbus received 637 gross orders for the A320 Family of aircraft and 615 net orders, with 602 aircraft having been delivered. 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) Airbus SE/ Report of the Board of Directors 2024 13
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 2024 206 to 220 8,700 44.5 35.8 (1) Two-class layout. (2) With sharklets. A330 Family. With 1,853 aircraft sold (of which 374 A330neo) and 1,623 delivered, the A330 Family covers all market segments with two twin-engine aircraft types 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. A passenger-to-freighter conversion is offered by EFW for both the A330-200 and A330-300, meeting the logistical needs of the rapidly growing e-commerce market. The competitors of the A330 Family are the Boeing 767 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. In October 2020 Airbus certified an improved MTOW (Maximum Take-Off Weight) of 251t on the A330-900 bringing a range increase of 1180 km (650 nm). 251t MTOW was also certified for the A330-800 in mid-2022. During 2024, Airbus received 82 gross orders for the A330 Family of aircraft (of which 4 military variants) and recorded 82 net orders 32 aircraft having been delivered (of which 2 military variants). 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 A330-300 1993 250 to 290 11,750 63.7 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 Family. The A350 is a family of wide-body aircraft, both passenger and freighter designed to typically accommodate between 300 and 410 passengers and up to 111t as a large freighter. The A350 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’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. Airbus SE/ Report of the Board of Directors 2024 14
With the Ultra-Long Range (ULR) version of the A350-900 launched in 2015, the A350 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 350-410 seat capacity market. Airbus launched the A350F freighter to compete in both the general freight and express cargo markets. With efficiency in terms of economics, fuel burn and CO 2 emissions, the A350F is the first freighter capable of meeting the latest ICAO CO 2 requirements. As of end December, the A350 secured in 2024 137 orders for passenger A350 and 5 A350F orders. 642 A350s have been delivered so far, with a total orders of 1,344 A350s (55 freighters, 1,289 pax) A350 FAMILY TECHNICAL FEATURES Model Entry-into-service Typical seating (1) or payload Maximum range (km) Length (metres) Wingspan (metres) A350-900 2014 300 to 350 15,740 66.8 64.8 A350-1000 2018 350 to 410 16,500 73.8 64.8 A350F 111 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. While the final five deliveries of the A380 took place during 2021, some customer airlines are investing in updating their cabins, and the aircraft is likely to remain in service well into the next decade. 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 Following the trends of the air transport market, the demand for aircraft customer services continues growing . In 2024, the aftermarket players served more than 27,000 (passenger aircraft above 100 seats and freighters with a payload above 10t). Airbus Customer Services competes in this market with the aim of being the customers’ companion in fleet management and operation all along the aircraft lifecycle, acting together for safe and sustainable aerospace. Airbus provides a wide range of customer centric and value-added services, and is well positioned to answer today’s and future services needs in order to support the industry. Here are some examples: Airbus SE/ Report of the Board of Directors 2024 15
Satair, the Airbus subsidiary for material distribution, inaugurated a new warehouse facility in Hamburg. It has become the biggest Airbus Group warehouse in Europe offering 56,500 m² of space to primarily manage tools and large parts (Long Term Storage and Kits), and targets helping to increase reactivity and spares availability for customers. Airbus inaugurated the new Airbus Customer Care Centre in Toulouse, increasing capacity to respond to and attend airline Aircraft On Ground situations. Airbus inaugurated an Airbus Lifecycle Services Centre in China, which covers a full range of activities including maintenance, upgrades, conversions, dismantling and recycling services. Airbus entered into a 50:50 joint venture with the Tata-owned Air India to launch a world-class pilot training centre in Gurugram, Haryana. Liebherr joined and strengthened the Digital Alliance. Boosted by its new partner, the Alliance intends to extend predictive maintenance to the A220 and A350, with the same product value delivered today on the A320 and A330. Airbus delivered to Emirates and Ethiopian brand new A350 aircraft equipped with High Bandwidth Connectivity plus (“HBCplus”). HBCplus provides satcom based off-board connectivity for the Airspace Link open ecosystem, available both in linefit and retrofit. Airbus Customer Services’ priority continues to be supporting customers by offering a range of solutions intended to help reduce operating costs, increase aircraft availability, and enhance the quality of operations and passenger experience. With a worldwide network of 8.000 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; 260 field service representatives positioned in over 60 countries for on-site assistance to operators, and a 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, Customer Services intends to continue working on the transformation plan based on three pillars (customer value, customer experience and sustainability) through optimisation and simplification of products and the further industrialisation of activities to decrease costs and increase efficiency, with an aim to continue contributing to the success of Airbus. Aircraft Trading and Financing Airbus favours cash sales, and does not pursue 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 times of crisis. Any 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 provides financing to 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. Airbus’ customer financing transactions are designed to facilitate subsequent sell-down of the exposure to the financial markets, third-party lenders or lessors. In 2024, Airbus continued to benefit from strong market appetite for both aircraft financing and sale and leaseback lessor opportunities, supported by sustained liquidity in the markets. Airbus customer financing exposure therefore remained limited. In the future, Airbus intends to continue providing direct aircraft financing support as it deems necessary. Management believes, based on its experience, that the level of provisioning toward potential default costs is adequate and consistent with standards and practice in the aircraft financing industry. For further information please refer to the “Notes to the IFRS Consolidated Financial Statements - Note 27: Sales Financing Transactions” and Section 3.1.2 “Business and Operations-related Risks -Sales Financing Arrangements”. Airbus also participates in trading activities, which consist mainly of (i) supporting new aircraft sales campaigns through the trading (cradle to grave) and the placement of all types of used aircraft (sale or lease), (ii) assisting Airbus entities/internal departments in finding/placing aircraft assets on the market (iii) managing and assisting in the remarketing of aircraft held in inventory and (iv) acting as a remarketing agent for airlines or financiers to remarket their aircraft. Trading activity also Airbus SE/ Report of the Board of Directors 2024 16
involves the sell-down of leases and loans (secured and unsecured) and the facilitation of structured lease solutions for customers. Operations Industrial Organisation Airbus’ industrial organisation reflects the end-to-end industrial flow across all Airbus commercial aircraft programmes. The industrial value streams flow from the supply chain, through Airbus’ two Aerostructures companies, the constituent and major component assembly (wing, forward and aft fuselage, and nose and centre fuselage) and to the final assembly in Toulouse, Hamburg, Tianjin, Mirabel and Mobile. Aircraft are then handed over to programme management for delivery to customers. The industrial flow is enabled by Quality and 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 and prevention 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 raw materials, parts and services are delivered at competitive conditions, on time, cost and quality. A dedicated Procurement Operations team manages the delivery stream from the supply chain to enable the production flow. Adherence to quality standards and internal processes throughout the flow facilitates compliance with safety requirements, and enables a seamless production. These standards are controlled through internal audits and operational surveillance, by delegation from EASA, by the Quality function. Thanks to external audits, Airbus is granted all necessary EASA approvals, Production Organisation Approvals (“POA”), Design Organisation Approvals (“DOA”), Maintenance Organisation Approvals (“MOA”) and EN9100 certification to design, produce, deliver and maintain its products. A two year internal surveillance cycle was closed in 2023, demonstrating full compliance to EASA part 21G (requirements for Production activities). Striving for further improvement has motivated the launch of the Quality Transformation programme. Its aim is to reinforce risk prevention activities as well as problem solving competencies throughout the end to end value stream. By promoting a strong ethos of collaboration in the service of customers across the value chain, Airbus enhances responsiveness and adaptability while pursuing the highest safety and quality standards. Technology & Engineering Airbus Technology & Engineering is a global organisation leading and managing Airbus product certification and continued airworthiness, as well as supporting in-series production and in-service modifications, non-conformities and continuous improvements. The Technology & Engineering organisation has the mission to: develop and deliver new aircraft architecture and design regarding safety, manufacturability, operability, maintainability, fuel-efficiency and environmental compliance; support the in-series products manufacturing and in-service operations by delivering definition dossiers and answers to technical queries; Foster the competitiveness of Airbus’ product and service portfolio in the medium- and long-term, and drive a company-wide synergetic approach to technologies, leveraging on Airbus’ unique history, DNA and product culture to shape the future of aerospace. The team operates transnationally, with employees located in France, Germany, the UK, Spain, the US, Canada, India, China and Singapore. 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, aircraft systems, flight physics, propulsion, cabin and cargo. The flight and integration test center supports both the development of new aircraft programmes and the deliveries of the in-series products, thanks to their flying and non-flying teams. 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, while acting as the home base of the certification and continued airworthiness delegates. The strategy and transversal integration centre ensures consistency between engineering and corporate strategy, acts as the referent for Airbus SE/ Report of the Board of Directors 2024 17
configuration management, process, methods and tools for engineering, and drives the forward looking transformation of the function. The in-service engineering, acting in close cooperation with customer services, is providing skilled resources to handle customer technical queries, such as repairs, as well as support the resolution on recurrent in-service issues. The R&T Programme 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. The Company-wide integration of R&T technology and alignment with institutional research partners is achieved through cross-portfolio 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. Aviation Safety 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 should mean it continues to become even safer by anticipating and responding to risks, threats and challenges. While 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 additional details on this topic, please refer to Section 6.3.4 “Sustainability Statement -ESRS S4 - Consumers and end-users”. Airbus Canada, Regional Aircraft, Aerostructures, Seats Airbus Canada Limited Partnership Airbus Canada Limited Partnership (“Airbus Canada”) was established on 1 July 2018 following the transaction between Airbus, Bombardier and Investment Quebec (“IQ”), which saw the sale, by Bombardier to Airbus, of the A220 aircraft program (formerly known as the C-series). In February 2020, Bombardier exited the partnership. At the end of 2024, the Airbus Canada shareholding structure was 75% Airbus and 25% IQ, with the IQ stake being redeemable by Airbus in 2035. There are two A220 final assembly lines, with one located in Mirabel (Quebec) and the other in Mobile (Alabama). In 2022, the Mirabel A220 site was expanded with the addition of a sub-assembly area, known as a pre-final assembly line (“pre-FAL”). In 2024, Airbus Canada delivered 75 aircraft (compared to 68 aircraft in 2023) and has a backlog of 516 aircraft as of December 2024. Through the end of December 2024, a total of 389 A220 have been delivered. For further information, please refer to Section 1.2 “Information on the Company’s Activities -Airbus (Commercial Aircraft) - Products - A220 Family” above. ATR ATR (Avions de Transport Régional) is the world leader in the market for regional turboprop aircraft, with its ATR 42 and 72 the best-selling aircraft in the less than 90 seats market segment. Thanks to the efficiency of the turboprop technology and the company’s focus on continuous innovation, ATR aircraft open 150 new routes on average every year, burn 45% less fuel and emit 45% less CO2 than regional jets. The aircraft family has over 200 operators in more than 100 countries. ATR is an equal partnership between Airbus and Leonardo, with Airbus’ 50% share managed by the Airbus ATR organisation. Airbus and Leonardo are also ATR’s main suppliers, building its wings and fuselage, respectively. Headquartered in Toulouse, as of December 31 2024 ATR employs 1,387 people. Since the start of the programme in 1981, ATR has registered net orders for 1,857 aircraft (524 ATR 42s and 1,303 ATR 72s). In 2024, ATR has delivered 35 new aircraft (compared to 36 in 2023) and recorded net firm orders for 32 new aircraft (compared to 41 in 2023). As of 31 December 2024, ATR had a secured backlog of 95 aircraft (compared to 111 in 2023). Through the end of 2024, a total of 1,717 ATR aircraft have been delivered. ATR has established a worldwide customer support organisation committed to supporting aircraft over their service life. There are 13 ATR sites across the globe, including commercial offices, customer services centres, spare parts warehouses, training centres and regional customer support offices, located in Toulouse, Paris, Miami, Singapore, Sao Paulo, Athens, Airbus SE/ Report of the Board of Directors 2024 18
Addis Ababa, Bangalore, Jakarta, Auckland, Bangkok, 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. Airbus Atlantic Established on 1 January 2022, Airbus Atlantic is a wholly-owned subsidiary of Airbus, specialised in aerostructure fabrication and assembly as well as aircraft seats. Airbus Atlantic is a global industrial leader, a key pillar of Airbus and a partner of choice for its customers around the world. Building on its highly skilled teams and its entrepreneurship mindset, Airbus Atlantic innovates, shapes new standards of industrial excellence and prepares the future for a sustainable and competitive aerospace industry. Counting more than 14,000 employees in five countries and three continents, including 10,000 employees in France and 4,000 worldwide (Canada, Tunisia, Morocco and Portugal), Airbus Atlantic is a global player in aerostructures, in pilot seats, and in First & Business Class seats 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. As such, Airbus Atlantic is an essential part of the Airbus value chain and plays a key-role in the whole aerostructures’ supply-chain with more than 500 suppliers on flying products and more than 2,000 on general procurement products. In terms of key activities and expertise, Airbus Atlantic, has a wide range of metallic and composite aerostructure capabilities, from Build-to-Print to Design & Build solutions. It is one of the few companies in the world able to deliver complete and fully equipped and tested aircraft sections (“Plug & Fly”), integrating hydraulic and electric systems. It also designs and manufactures luxury First Class and Business Seats for more than 50 airlines in the world (including Lufthansa, Singapore Airlines, China Airlines, Air France or Etihad Airways) and provides pilot seats, and offers support from design to production, including after-sales service. Airbus Aerostructures and Premium Aerotec Industry Besides Airbus Atlantic, the Airbus Aerostructures organisation is the other aerostructure subsidiary of Airbus, leveraging the Company’s competencies globally, keeping strategic flexibility for resource allocation and building an international company culture. The organisation of Airbus Aerostructures, together with Airbus Atlantic serves the Company’s strategy. Remaining detailed parts activities are concentrated under Premium AEROTEC Industry, within Airbus GmbH (which is the holding company for Airbus Operations GmbH and Airbus Aerostructures GmbH, the two main subsidiaries in Germany focused on commercial aircraft programmes). The legal integration of Premium AEROTEC Industry into Airbus Aerostructures has been decided and is being pursued. Airbus Aerostructures is a 100 percent owned Airbus subsidiary. Formal governance bodies and regular management meetings between both ensures business coordination. The company is an integrator for the commercial aircraft parts management. With around 12,000 employees, Airbus Aerostructures combines technology and innovation leadership to pioneer efficient aircraft production. Airbus Aerostructures includes four production sites in Germany: the headquarters in Hamburg with three other plants in Nordenham, Bremen and Stade where work goes on today on the aerostructures of tomorrow’s aircraft. Premium AEROTEC Industry delivers commercial and military aircraft structures and detail parts and is a partner in the major European international aerospace programmes. Premium AEROTEC Industry counts about 5,000 employees at various sites in Germany and Romania. Premium AEROTEC Industry 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. Premium AEROTEC Industry plays a significant role within new concepts regarding metallic and composite aerostructure activities or 3D-printing of aircraft components made of titanium or aluminium. Airbus SE/ Report of the Board of Directors 2024 19
1.3 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, drones and related services. This product range currently includes intermediate single-engine, light twin-engine, medium and medium-heavy rotorcraft, which are adaptable to all kinds of mission types based on customer needs. In addition, the VSR700 and the Flexrotor constitute two Uncrewed Aerial Systems (“UAS”) in the tactical domain. See Section 1.1 “Information on the Company’s Activities- Overview” for an introduction to Airbus Helicopters’ portfolio. Ambition and Strategy Airbus Helicopters’ ambition is to provide the most efficient vertical take-off and landing (“VTOL”) products and services solutions to its customers who serve, protect, save lives, connect communities and safely carry passengers in demanding environments. In this regard, the strategy of Airbus Helicopters is to grow in value in the Civil and Parapublic market and improve its market share and resilience in the military market, while building a combined offer of helicopters and drones with an extended portfolio of UAS and new teaming solutions in the tactical domain. The four strategic priorities support Airbus Helicopters’ business growth ambition: 1. Customer Loyalty: in pursuit of becoming the first choice of the market, Airbus Helicopters has put a major emphasis on the improvement of the fleet availability, specially for the NH90 and Tiger fleets. The catalogue of global contracts has also been reworked to be adapted to customers’ needs. Last but not least, Airbus Helicopters has invested in stock and spare parts and in new repair capacities to improve its performance and reliability. 2. Innovation: Airbus Helicopters has the objective of making helicopters and VTOL flight safer, simpler, more affordable and citizen friendly. To remain a true pioneer in this industry, Airbus Helicopters is committed to flying several demonstrators to unlock new technologies in fuel consumption, high speed, autonomy, electrification, connectivity, safety and predictive maintenance to name a few. In the meantime, Airbus Helicopters is strongly working on crewed-uncrewed teaming (CuC-T) solutions. 3. Defence and Security: Airbus Helicopters must act as a global player in the military market to reinforce its competitiveness and resilience in a global context, with rising tensions and geopolitical issues. The company is investing in key technologies to support home nations and is on track to execute key development contracts like the Joint Light Helicopter (hélicoptère interarmées léger – HIL) for France, the Tiger mid-life upgrade for France and Spain, or the H225 helicopters for the Bundespolizei. In addition, Airbus Helicopters continues to reinforce its presence and influence in export campaigns. The product policy of Airbus Helicopters is driven by the willingness to offer and maintain the broadest dual range of multi-role products. 4. Sustainability: Airbus Helicopters wants to accelerate its commitment to pioneering sustainable aerospace. In 2024, Airbus Helicopters has structured and asserted several roadmaps, and has connected most of them to the roadmaps at group level. The teams have worked in transversal coordination to promote and set the right level of ambition for the Division. In coherence with the group, Airbus Helicopters fosters a culture of environmental and social responsibility for all employees, along with promoting human rights, business integrity, aviation safety and quality, inclusion and diversity in its core values. Transformation The Company is pursuing its journey for its transformation. While maintaining its focus on aviation safety and quality, specific attention is put on performance improvement with lead time reduction and on time deliveries in order to enhance customer satisfaction and to position itself for sustained growth and resilience. This plan is combining projects aiming to make significant steps forward in performance in key areas (e.g. supply chain and spare parts) and implementing further continuous improvement initiatives. Airbus Helicopters also pursues leadership development initiatives ensuring teams are prepared to navigate the complexities of a dynamic business environment and to foster a culture of inclusion, collaboration and agility. Airbus SE/ Report of the Board of Directors 2024 20
Airbus Helicopters continues to deploy data governance and accelerate its digital transformation based on standard capabilities to deliver digital continuity for integrated data-driven processes. Going forward, data quality remains a top priority in order to have solid foundations to deploy new "data-driven" technologies and decision making. In line with the Company’s continuing evolution, Airbus Helicopters develops new digital capabilities such as Artificial Intelligence, Immersive Technologies, Connectivity or Scientific computing to create value for both platforms and services, as well as for business efficiency to enhance productivity while reducing turnaround time across key processes. In parallel Airbus Helicopters is looking ahead and preparing its next transformation phase beyond 2025. The aim is to anticipate and prepare the future in order to maintain a sustainable performance and to remain agile, with the purpose to ensure its competitiveness in the face of changing market and economic conditions, while retaining its ability to invest in the future. Commitment to Innovation In 2024, Airbus continued to invest in research and technology and product development for both the civil and military markets. The Racer, a high-speed helicopter demonstrator, developed in the context of the European Research Clean Sky 2 project, successfully completed its first flight, officially kickstarting the rotorcraft’s flight test campaign. Less than two months after this, the Racer exceeded its level speed objective of 407 km/h (220 kts) by reaching 420 km/h (227 kts) in its initial configuration. In just seven flights and about nine hours of flight testing, almost all of the flight envelope has been opened. Moreover, Airbus’ eVTOL prototype, CityAirbus NextGen, also performed its first flight in Donauwörth, Germany. This key technical milestone opens the flight campaign of the prototype. On the military side, the Company has focused on the development of crewed-uncrewed teaming (CuC-T), where crewed helicopters and Uncrewed Aerial Systems (UAS) fly simultaneously whilst connected to a single network. Crewed-uncrewed teaming aims to leverage interoperability to enhance a helicopter's mission capabilities during challenging operations. As part of a project funded by the European Union and code-named MUSHER, Airbus and its partners conducted a full-scale demonstration of a crewed-uncrewed teaming system in France and Italy. Mobilising the H130 FlightLab as a crewed platform and the VSR700 Uncrewed aerial system, the MUSHER demonstration experimented with various mission scenarios. Airbus Helicopters also introduced a new mission kit for the VSR700, dedicated to anti-submarine warfare, in partnership with Naval Group, Aresia, Thales and CAE. Aiming to support navies during critical operations, this mission kit can extend operators’ detection capabilities, including with sonars, a radar and electro-optical system, and enables the VSR700 to deploy new-generation sonobuoys and torpedoes. The VSR700 is fully compatible with crewed-uncrewed teaming, making for optimised submarine detection and attack when operated jointly with crewed helicopters. Following its integration as part of Airbus’ portfolio, the Flexrotor small tactical uncrewed aerial system took part in flight demonstrations, showcasing its agility. A lightweight asset, the Flexrotor enables customers to extend their mission capabilities thanks to its unique vertical takeoff and landing design, its exceptional endurance and compact design. Able to fly on average 14 hours, it is an ideal solution for military operators and parapublic agencies. In 2024, the company continued to develop activities related to the main demonstrators and roadmaps for key technologies for multiple platforms. The PioneerLab in Germany performed several flights to test environmental awareness functions such as a lidar-based cable detection system. In addition, a proof-of-concept nose panel made of acrylonitrile-derived biofibre was also flight-tested to demonstrate the airworthiness of alternative fibres. Airbus Helicopters also continued to progress on its decarbonisation roadmap. The Company continued to lead a SAF user group for its helicopter operators and industry partners as well as increasing the use of SAF for its own development test flights and training to nearly 20% in 2024. Focusing on Customers Airbus Helicopters’ top priority from a customer support and service perspective is to deliver the best possible customer experience, including availability and performance. The Company celebrated important fleet milestones this year, such as the worldwide fleet of H145s achieving 8 million flight hours and the H125 achieving 40 million flight hours. The French Navy’s H160 interim fleet hit the 3,000 flight hour milestone this year and has saved more than 120 people in their search and rescue missions. The first of up to 82 H145Ms was delivered to the German Armed Forces. The entry into service of the H160 is moving forward with a total of 40 units currently in service. The platform now has customers for all key mission segments it was designed to address: energy, private and business aviation, search and Airbus SE/ Report of the Board of Directors 2024 21
rescue, law enforcement and military. The H160 is now in service in the U.S., Canada, Brazil, Malaysia, Japan, Saudi Arabia, France, and other European countries. Airbus Helicopters has made significant effort and investment in addressing the supply chain situation that has been severely affected in succession by COVID, the consequences of Russia's invasion of Ukraine, the energy crisis and economic factors including elevated inflation rates. In this context, Airbus Helicopters has faced difficulties in meeting customers’ spare parts and repair needs, due to demand having grown much faster than predicted based on flight activity. Airbus Helicopters has significantly increased its working capital investments on spares and MRO parts. The Company has also invested in dual sources of supply and in helicopter buy-backs. The dismantling of complete helicopters enables the Company to access parts which are in short supply, especially for dynamic components. It also provided solutions for obsolescence and scarce parts. In addition, the company is constantly investing in product improvement, both in terms of safety, innovation, and competitiveness. This includes investments targeted at making its helicopters more reliable, with a reduced maintenance workload and with lower Direct Maintenance Costs (“DMC”). Many of these improvements are discussed and then prioritised with customers in the frame of various forums such as Customer Focus Groups and Reliability Data Groups. There are around 2,861 helicopters currently enrolled with parts-by-the-hour contracts. Air Center Helicopters, Inc. (ACHI) signed an Airbus HCare In-Service contract to support their fleet of 18 H225 helicopters for the next five years with the full-by-the-hour (FBH) programme. DRF Luftrettung is also adding up to ten H145 helicopters to its fleet-wide HCare Part Availability contract, which provides comprehensive parts-by-the-hour support. In parallel, the Japan Coast Guard’s (“JCG”) order for three additional H225s will also be covered by its HCare Fleet Availability contract which currently covers JCG’s entire H225 fleet. The company continued to make progress on helicopter connectivity and digital services in order to provide an end-to-end ecosystem through easy-to-use digital solutions fully integrated to Airbus Helicopters systems. These digital solutions leverage data generated by helicopter systems, such as flight data recorders and avionics systems, or maintenance software and applications used to manage fleets. The aim of the Company’s Connected Services offering is to enable more flight hours in a simple manner and to enhance safety, and ultimately to better support the Company’s customers in their operations. 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. The company’s ambition is to further reduce the accident rate of the Airbus helicopter fleet in service and 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; and continue to underscore its dedication to fostering a company-wide culture of safety and sustainability. This commitment to aviation safety is also reflected across all the internal activities related to the lifecycle of a helicopter, with a focus on meeting (and exceeding where possible) industry quality and safety standards. All this is based on continuously enhancing the strong safety culture in the Company. To continue raising aviation safety awareness, Airbus Helicopters inaugurated a dedicated Aviation Safety Centre in March 2024 at its Donauwörth site in Germany. Along with Marignane, where a centre was created in March 2023, they are the first two Airbus Helicopters sites to host Aviation Safety Centres, which aim to be replicated at other key locations of the Company’s global footprint. The centres are divided into several zones, four of which host the digital modules that form the core of the system. These digital modules cover four major themes for Aviation Safety: air accidents, organisational and human factors, FODs (Foreign Object Damage, i.e. foreign bodies that can cause damage) and risk management. The objective is that all employees, including apprentices, temporary workers and on-site subcontractors are trained in the Aviation Safety Centre. In Marignane, more than 4,500 employees and subcontractors have been trained, along with close to 190 customers and 160 suppliers, whilst Donauwörth’s Aviation Safety Centre has now hosted more than 2,000 employees for training sessions, to further demonstrate Airbus Helicopters’ commitment to a safe flying culture. Airbus SE/ Report of the Board of Directors 2024 22
Market Drivers Airbus Helicopters’ preliminary market data indicates that worldwide helicopter bookings for 2024, counting both the Civil and Parapublic (C&P) and Military markets, stood at 1,192 units (excluding the Chinese and Russian military markets). This, compared to 1,160 in 2023 represents +3% increase. Airbus Helicopters is leading the increasing C&P market (+10% in units and +32% in value vs 2023), securing 48% of the total units and 52% of the total value booked supported by all Airbus helicopters types (from H125 to H225) sales in units and mostly by H145 and H225 in value. Most of the increase in units is driven by Intermediate Singles with a total of 267 units sold (vs 193 in 2023). With 64 units booked, Super Medium's demand increased by +178% in comparison with 2023 (23 units). 47 bookings for Heavy helicopters were identified, to be compared with 10 bookings in 2023. The demand for Light-Twins (H135, AW109 and B429) increased by +39% (40 units sold vs 29 in 2023). After a record 2023 order intake for Intermediate-Twin (H145, AW169 and Ansat) with 175 units booked, the bookings in this class decreased by -42% (102 units). Medium bookings decreased by -24% in 2024 vs 2023 with a total of 84 units booked. Market increased in all segments but Private and Business Aviation (-5% vs 2023). The most dynamic segment was Energy (+30% vs 2023), supported by the demand for replacement of an ageing fleet translating mostly in Super Mediums bookings. Demand for Mediums in this segment decreased by -44% after two years of high level of bookings (mainly AW139). After several years of low order intake (driven by economical uncertainties), the demand for commercial operations increased by +29% in 2024 supporting Intermediate-Single sales. EMS market increased by +20% driven by the demand from the North American continent supporting demand for Intermediate-Singles and Light-Twins. The global demand for Public Services helicopters increased by +6% mostly driven by growing demand in the Asia Pacific Region. With 386 units booked in 2024 the military global market (excluding China and Russia) is -9% below 2023 order intake driven by low order intake from the US. Without North America the market would have grown by +5% as the demand for military helicopters has increased in all other regions. According to market forecasts produced by Airbus Helicopters, approximately 7,400 Civil and Parapublic helicopters and approximately 7,100 Military helicopters are expected to be delivered globally over the next 10 years. In this period, within the Civil and Parapublic Market (approximately 7,400 units over 10 years), almost 50% of the deliveries in units are expected to be single engine helicopters, but twin engine helicopters are anticipated to represent more than 80% of the value to be delivered. For the Intermediate Singles, the dominant customer types are expected to be commercial and private and business aviation (PBA). Whereas in the Light Twin segment, Helicopter Emergency Medical Services (HEMS) continue to be the dominant customer type, followed by Public Services and PBA. The continued resurgence of the energy market remains key for sales of the super medium class, as are Public Services for the Heavy helicopter market class. 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 year-to-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. Within the Military Market (anticipated demand of approximately 7,100 units over 10 years), approximately 34% of market sales (in units) are expected to come from the Heavy helicopter class, with a significant dominance in this sector coming from forces requiring heavy lift capabilities for troop and logistics transportation. The combination of Light, Medium and Super-Medium helicopters is expected to account for 30% of the future military helicopter deliveries in units. Competition Airbus Helicopters’ primary competitors in the civil and parapublic sector are Leonardo and Bell. In 2024 Airbus Helicopters led the Civil and Parapublic market, securing 48% of the total units and 52% of the total value booked supported by all Airbus helicopters types (from H125 to H225) sales in units and mostly by H145 and H225 in value. Airbus SE/ Report of the Board of Directors 2024 23
Airbus Helicopters’ main competitors in the military sector remain Boeing, Sikorsky and Leonardo. In 2024 Airbus secured 18% of the total market (excluding China and Russia) in units and 15% of the total market value (excluding China and Russia). Customers More than 3,850 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 approximately 57% of the worldwide market share-based on deliveries in 2024, 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 more than 5 seats). 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 & Armed Reconnaissance, Private & Business Aviation, Commercial Pax Transport & Aerial Work H130 Commercial Pax Transport & Multipurpose, Emergency Medical, Tourism, Private & Business Aviation Light Twin Engine H135 / H135M Private & Business Aviation, Military Utility & Armed Reconnaissance, Emergency Medical, Public Services (1) H145 / LUH (UH-72) / H145M Private & Business Aviation, Military Utility, Emergency Medical, Public Services (1) Medium and Super Medium H160 / H160M Oil & Gas, Public Services (1) , Private & Business Aviation, Emergency Medical, Military Utility & Transport, Special Operations, Naval H175 Oil & Gas, SAR, Public Services (1) , Private & Business Aviation, Emergency Medical, Military Utility & Transport, Special Operations Heavy H215 “Super Puma” / H215M “Cougar” Civil Utility (2) , Military Transport / SAR, Oil & Gas Airbus SE/ Report of the Board of Directors 2024 24
H225 / H225M SAR, Combat-SAR, Military Transport, Oil & Gas, Private & Business Aviation, Public Services (1) NH90 (TTH / NFH) SAR, Military Transport, Naval Attack Tiger Combat, Armed Reconnaissance / Escort Uncrewed aerial systems VSR700 Intelligence, Surveillance, Reconnaissance Flexrotor Intelligence, Surveillance, Reconnaissance (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. Civil Range Airbus Helicopters’ civil range includes intermediate single-engine, 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, the company invests in R&D investments, notably on: The certification of the H160 by EASA in July 2020; The improvement of the existing range (i.e. H145 certified by EASA and FAA in 2020 or the increased H125 performance certified in 2021 by EASA and FAA) in the field of performances and safety in order to meet customer’s requirements; The certification of the H160 by FAA in June 2023; The certification of the H175 by Civil Aviation Administration of China in July 2023; 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, derived respectively from the H145 and H225) as well as pure military platforms developed for armed forces (such as 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, was jointly developed by Airbus Helicopters, Leonardo of Italy and GKN Fokker 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%. By the end of 2024 more than 500 NH90 had been delivered. On the Combat segment, the mid-life upgrade of the Tiger helicopter will introduce state of the art mission systems, including crewed-uncrewed teaming, new avionics and next generation of weapons (anti tank / air to ground missile, laser guided rockets) in order to address future requirements of the French and Spanish armies. By the end of 2024 166 Tigers were in service. Airbus is also a major contractor to the US Army, having been chosen to supply the service’s UH-72A and UH-72B Lakota helicopters (more than 470 in service by the end of 2024). On the Uncrewed Aerial Systems domain, Airbus Helicopters is expanding its range in order to cover more missions. The company is focusing on the tactical drones market with the VSR700 mainly for Intelligence, surveillance, targeting and reconnaissance (ISTAR) missions, and through the acquisition of Flexrotor by Aerovel. Military helicopters can also be Airbus SE/ Report of the Board of Directors 2024 25
complemented by drones to offer Crewed-uncrewed teaming (CuC-T) an important area of development for Airbus Helicopters military range. Customer Services With more than 3,850 operators in over 150 countries, Airbus Helicopters has a large fleet of more than 12,650 in-service rotorcraft to support. As a result, customer service activities to support this large fleet generated approximately 46% of Airbus Helicopters’ revenues for 2024. 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. Industrial Model The roll-out of the new industrial model for Operations based on site specialisation, the introduction of an improved industrial architecture and the progressive deployment of flexible lines is now complete. The last internal transfer of activity in the context of the site specialisation was achieved in 2024 with the remaining transfer to Paris Le Bourget from Donauwörth. By concentrating the production sites in specific helicopter sections or technologies, the company expects to boost the competitiveness of its operations and to increase its overall performance, while improving the factories’ resilience to market fluctuations through the contribution of each site to the entire product range. Alongside site specialisation, the introduction of an improved industrial architecture is being deployed, with major sub-assemblies produced, assembled and tested in parallel, thus shortening the industrial cycle. The reduction of the lead-time, in particular in the final assembly lines, aims at decreasing the inventories and shortening the delivery time to Airbus Helicopters customers. The ability to adapt quickly to market evolution is also key. Therefore, the flexibility of the production lines to assemble different products is being developed so that the industrial system can be adjusted in a rapid manner to changing market requirements. A further key element in the enhancement of the logistic set-up supporting the new industrial model will be the entry into service of the “One Log” hub in Albacete, Spain. The hub will help to enable the rationalisation of logistics flows, moving from a “point to point” concept with spread flows, to a global logistics approach that will contribute to the competitiveness of operations. In parallel, Airbus Helicopters is increasing the focus on quality and operational performance through Centres of Excellence in key helicopter components, such as Rotors and Transmissions. The Centres of Excellence aim to unite all departments in the organisation – from Engineering, through Procurement and Supply chain, Quality and Production – to deliver best in class safety, quality and performance. The global industrial footprint continues to be developed to reduce the product cost in the “make” perimeter and to provide opportunities for the rationalisation of the supply base. While keeping more complex activities in the main sites in France, Germany and Spain, simpler work packages are allocated to the Divisions’ sites in “best cost countries”. In 2024, the facility in Querétaro, Mexico, specialised in aluminium machined parts, increased its workload. Additionally, the Division’s facility in Gyula, Hungary, inaugurated in 2022 and specialised in hard metals machining, delivered its first parts in 2023 and continued to grow in 2024. Airbus Helicopters also keeps a strong focus on the extended enterprise. Since the pandemic, supply chain monitoring and risk management has been strengthened, increasing the capacity to anticipate and mitigate potential disruptions and secure business continuity. The sourcing strategy is being implemented, reshaping Airbus Helicopters supply base to secure its current and future industrial performance, competitiveness and maturity, as an essential part of the overall helicopter industrial ecosystem. Considering the global lack of capacity in the supply chain, extending to “best cost countries” through the supply chain will continue to be a priority in the future. Furthermore, reducing the environmental footprint of the industrial activities is a paramount axis of Airbus Helicopters industrial model. Numerous projects supported by important investments are being developed in all the sites, focusing on the reduction of the CO 2 and volatile organic compounds (VOC) emissions, energy and water consumption, and also in the generation of waste. Finally, the Company is paying special attention to preparing the future of its factories, industrial processes and systems. In particular, ongoing digital transformation programmes are targeting a redefinition of the industrialisation and production of Airbus Helicopters products, which should enable a major reduction of industrialisation cycles, while raising efficiency and setting a new standard of quality, while safeguarding cybersecurity. Airbus SE/ Report of the Board of Directors 2024 26
1.4 Airbus Defence and Space Airbus Defence and Space (“ADS”) is a trusted partner to commercial and government customers worldwide, providing products and services that ensure mission success in the air, land, sea, space and cyber domains: Air Power designs, develops, delivers and supports manned and unmanned military air systems and services. It is the leading fixed-wing military aircraft supplier in Europe, and one of the global leaders in combat, mission, transport and tanker aircraft. Key products include the Eurofighter Typhoon, the A400M, the A330 Multi Role Tanker Transport (“MRTT”), the C295, the Eurodrone, and is developing the Future Combat Air System (“FCAS”) with partners. Missiles/effectors for Air and Ground based platforms are developed and manufactured by MBDA, in which Airbus Defence and Space has a 37.5% stake. 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 and commercial customers. It also manufactures orbital and space exploration systems, including human-rated modules. Space transportation capabilities (comprising launchers and services) are offered via ArianeGroup, a 50/50 Airbus-Safran joint venture. Connected Intelligence creates specific solutions for defence, governmental, civil and commercial customers under four main Programme Units: Space Digital, Public Safety and Security, Cyber and Defence Digital. It provides trusted intelligence and secure connectivity for mission- and business-critical communications, from radio to broadband and mobile, on land, at sea and in the air. Airbus Defence and Space is headquartered in the Munich region. The Division’s main engineering and production facilities are located in France (Paris region and South West France), Germany (Bavaria, Baden-Württemberg and Bremen), Spain (Madrid region and Andalusia) and the United Kingdom (South England and Wales). In addition, Airbus Defence and Space has affiliates and subsidiaries in some 40 countries around the globe. On 1 January 2024, Airbus Defence and Space implemented a new, simplified organisational structure consisting of three business lines: Air Power (merging Military Air Systems (“MiAS”) and FCAS, covering all air defence capabilities), Space Systems, and Connected Intelligence, with the operational elements of Engineering and Operations activities being incorporated into each of the three business lines. On 16 October 2024, Airbus Defence and Space presented a follow-up plan to further adapt its organisation and workforce in light of a continuing complex business environment (especially in the Space Systems segment), and in view of an acceleration of technical trends that require focused decision-making and execution as well as adaptability from each of its distinctly different businesses. Targeted measures include creating a more efficient and streamlined organisational structure for the Division, particularly with regard to functions outside the value stream, and with a further focus on over-arching tasks such as strategy, workforce development, sites and footprint development, finance and other support functions. In addition to reducing its cost base, through this adaptation Airbus Defence and Space is targeting operative end-to-end accountability for business lines, with the aim that they will eventually have operational responsibility for their performance and results. The social process covering this change as well as the announced workforce reduction across Airbus Defence and Space officially started on 4 December 2024. The aim is for the adjusted organisation to be operational by mid-2025. This organisational change is paralleled by an effort to fundamentally transform the ways of working and culture within Airbus Defence and Space, to be better equipped for a future defence and space landscape anticipated to be more commercially focused and information driven, with an expected influx of new, well-backed entrants from the wider technology space. Strategy The mission of Airbus Defence and Space is to support its customers to defend their democracies, prevent crises, protect life and restore damaged communities and ecosystems, providing safety and security and respecting the highest standards of human rights. To achieve this, the Company aims to shape and lead the Defence Aerospace industry in Europe across its three main business segments: Air Power is at the core of Airbus Defence and Space and encompasses Combat, Transport, Derivative and Mission Aircraft, in addition to Unmanned Aerial Systems, Services, and Aerostructures. To maintain its leading market position, Airbus Defence and Space is pursuing new European programme opportunities while continuing Airbus SE/ Report of the Board of Directors 2024 27
to evolve existing platforms and capabilities for long-term competitiveness (e.g. Eurofighter Typhoon, A330 MRTT, A400M, C-295, aircraft in service support). It also focuses on the future of Air Power, leading the development of the system-of-systems environment, of which FCAS is a cornerstone. as one of Europe’s space leaders, Space Systems aims to continue to create more competitive products, working with European governments and institutions to ensure the long-term health of the entire European space industrial base. Therefore, a transformation plan was initiated on 1 January 2024, with the aim of fostering a culture of performance and sustainable profit levels, as well as de-risking the business. In parallel, Airbus Defence and Space is actively working on sustainability solutions, such as climate change monitoring. In light of the increasing focus on defence activities in space, the Company is aiming to provide nations with technologies for information superiority and in-space operations. the Connected Intelligence business is active in cyber-defence (Cyber), information and decision superiority (Defence Digital), end-to-end space services (Space Digital) and critical communications (Public Safety and Security) markets. Airbus Defence and Space aims at being a key European player in Multi-Domain Operations. Multi-Domain Operations can be defined as the integration of multi-domain C2 (Command and Control) connectivity, information and decision superiority, analytics and cyber capabilities into connected systems of systems. This is intended to be the future digital backbone for Defence and Security customers. Globally, Airbus Defence and Space intends to leverage its existing products and services, to innovate in new offerings, and to build selected strategic partnerships, in order to strengthen its position in the market. Corporate Social Responsibility The Company is firmly committed to conducting its business based on responsible ethical standards, and in compliance with applicable laws and regulations. This includes the delivery of defence products in accordance with export control laws, which are made in full transparency and alignment with authorities and relevant stakeholders. Suppliers must also ensure that their business practices are in compliance with export control laws and regulations including the US, EU and any applicable national regulations, as well as compliance with sanctions and embargoes legislation. Furthermore, suppliers are required to provide truthful and accurate export control classification and information and obtain export control licences. Human rights play a key role in the way Airbus Defence and Space conducts its business activities. This includes the integration of human rights due diligence into the defence sales process with the aim of reducing the risk of misuse of its defence products. This takes into account country risk (based on publicly available indices) and intended product use and supports the decision to progress to the export control stage. Requirements for adherence to human rights laws, including the Geneva Conventions, are part of Airbus’ standard conditions of sale for defence products. Airbus Defence and Space is not involved in the development, production or support of banned weapons and it maintains policies and procedures to undertake due diligence on the sale of defence products. Market Airbus Defence and Space is active in governmental, institutional and commercial markets. As a general trend, defence budgets are forecast to grow globally, triggered by geopolitical shifts, heightened security risks and the impact of natural disasters. European defence budgets are forecast to grow due to major modernisation needs across countries and in order to meet NATO requirements. At the same time, defence and space programmes and other government activities (e.g. social welfare) compete for the same, finite national budgets. Moreover, an increase in the number of domestic and international defence contractors, as well as lower cost of access to defence and space markets, allows for new entrants and increased competition. Market access outside the Airbus home countries may continue to be subject to restrictions or preconditions such as national content, local industrial participation or the provision of export licences. Nevertheless, Airbus Defence and Space is well-positioned to benefit from the global growth in defence expenditure. Airbus SE/ Report of the Board of Directors 2024 28
Air Power Customers The Air Power Business Line, with its combat, military transport and mission aircraft and UAS, 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 the services business, often lasts for decades. Beyond a strong foothold in the home countries, the Company’s customer base is increasingly global, in particular due to the success of the A330 MRTT and C295 programmes. The volatile, uncertain, complex and ambiguous geopolitical situation is gradually leading to a greater importance of defence in Europe. A clear signal in this direction was the signature of FCAS, which has been progressing over the past five years. There is also notable momentum in Europe for cooperation in large UAS programmes. Beyond the Eurodrone, the Company’s unmanned aerial systems help solve challenges for commercial, government and military customers alike. Institutional and government customers are recognising the benefits of UAS for public services. An increasing number of applications require UAS solutions in areas such as law enforcement, fire-fighting, humanitarian assistance and disaster relief, border protection, emergency services and maritime surveillance. Civil and enterprise customer interest for UAS continues to grow, with the main focus being on smaller and tactical 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. The business encompasses the full set of services ranging from logistics, Maintenance, Repair and Overhaul (“MRO”) and data analytics offers, to traditional leasing into complete aircraft-as-a-service flight operations. Competitors The market for military aircraft is dominated by large- and medium-sized American and European companies capable of complex systems integration. Among the competitive factors are affordability, technical and management capability, and the ability to develop and implement complex integrated system architectures. The required skills for overall systems integration into an aircraft are extensive and the number of credible players in the world market is rather limited. In particular, dedicated mission aircraft such as heavy tankers, are derived from existing aircraft platforms. Adapting them requires thorough knowledge of the basic airframe, which generally only the aircraft manufacturer will possess, along with knowledge of systems architecture and integration. The main competitors in the military transport and mission aircraft market include Boeing, Dassault Aviation, Embraer, Leonardo, Northrop Grumman, Saab, Antonov, and the United Aircraft Corporation. 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. On Combat, the Company’s activities take place through the contribution to the Eurofighter Typhoon, jointly with BAE Systems and Leonardo. The main competitors in the segment include Boeing, Dassault Aviation, Lockheed Martin, Saab and UAC. With regards to UAS platforms, Israeli and US firms are well established, with European and Chinese companies gaining in relevance. Major competitors include AeroVironment, Baykar Technology, Boeing, Elbit Systems, General Atomics, Israel Aerospace Industries, Leonardo, Northrop Grumman and Turkish Aerospace Industries. The market is also seeing the emergence of new, smaller companies worldwide, addressing specific and/or national requirements. There is room and need for synergies and partnerships between smaller and larger UAS companies. Across all segments of the defence and space markets the Company continues to see and anticipate new entrants, largely from the Tech sector. These new entrants can be competitors, but may also be partners for Airbus Defence and Space, offering complementary skills and assets. Market Trend The sale of aircraft is expected to remain stable in the light and medium transport and special mission aircraft segments and could grow for the heavy transport segment. In combat, new collaborative programmes are underway for the development of new sixth-generation fighters. After-sales services are an important business for Air Power 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 and Tornado in-service support. On the unmanned aerial systems front, while defence remains the largest sector, civil and institutional markets are growing steadily, especially in the smaller UAS tactical categories. Services verticals are expected to offer increasingly interesting prospects as the market evolves. The governmental market especially for advanced UAS features strong growth with Airbus SE/ Report of the Board of Directors 2024 29
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. Products and services FCAS – Future Combat Air System: FCAS is being developed as a “system of systems” combining a manned new generation fighter teaming with unmanned remote carriers, collaborating with upgraded existing and new platforms (e.g. Eurofighter, A400M, MRTT, Eurodrone, etc.) orchestrated by a multi-domain combat cloud (“MDCC”). The journey to meet the doctrinal and technological challenges lying ahead will be step-by-step. As the largest and most ambitious European defence development for decades to come, the Company anticipates FCAS will be a key to Europe’s operational, technological and industrial sovereignty. FCAS should foster development of new technologies such as Artificial Intelligence (“AI”), cyber, cloud, and drones. It is anticipated that FCAS will deliver increasing operational effects by leveraging the collaborative capabilities of all connected platforms across domains (air, land sea, space and cyber) bringing the next level of air power. The goal is for FCAS to accentuate and unify multiple areas of the Airbus Defence and Space portfolio and its products. FCAS has been progressing with the execution and achievement of the Joint Concept Study and the Demonstrator Phase 1A by the three Air Forces in September 2021. The FCAS Demonstrator Phase 1B was signed on 16 December 2022. This phase covers the work on the demonstrator and its components for about three and a half years. Phase 2 would be the next step following Phase 1B, with flight demonstration being targeted towards the end of the decade. It is anticipated that Airbus military aircraft such as A400M, MRTT, Eurofighter and other manned and unmanned platforms will play key roles in the FCAS ecosystem. A400M – Heavy military transport: the A400M is 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. A total of 178 aircraft have been ordered so far. This includes the seven launch customer nations, Belgium, France, Germany, Luxembourg, Spain, Turkey, the UK, as well as three export customers, Malaysia, Kazakhstan and Indonesia. Further interest exists from various regions worldwide, including Asia, the Middle East and Latin America. Since 2013 (and through 31 December 2024), 130 units have been delivered to nine nations. The A400M has been deployed in operations since 2014, accumulating more than 205,000 flight hours in service. In October 2024, Airbus signed two strategic contracts with the Organisation for Joint Armament Cooperation (OCCAR), which manages the A400M programme on behalf of the launch customer nations. These new contracts are the so-called A400M Global Support Services (GSS3) and “Block Upgrade 0”, intended to enhance the aircraft’s capabilities. The A400M 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. A330 MRTT – Multi-role tanker transport: the A330 MRTT, a derivative of the Airbus A330-200 family, offers military strategic air transport as well as air-to-air refuelling capabilities. 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 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 refuelling systems, including an Aerial Refuelling Boom System (ARBS) and under-wing refuelling pods. It is the first and so far only aircraft in the world to perform automatic air-to-air refuelling (A3R) with a boom. At the end of 2024, 82 A330 MRTT have been ordered by 15 national operators (more than 94% market share over the past ten years, excluding the US), with 62 platforms already delivered and operating worldwide, accumulating more than 300,000 flight hours in operation. In 2024, the Kingdom of Saudi Arabia ordered four additional Airbus A330 MRTT for the Royal Saudi Arabia Air Force (RSAF).In 2024, Airbus announced the A330 MRTT+ programme as a natural evolution of the A330 MRTT. The A330-200 baseline aircraft will be replaced by the A330neo (A330-800), which is expected to reduce the aircraft's fuel burn by up to 8%, allowing for more range and/or offload capacity. Following a development phase, it is anticipated the A330 MRTT+ can be introduced to customers in the coming years. Airbus SE/ Report of the Board of Directors 2024 30
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. Eurofighter Jagdflugzeug GmbH is owned by Airbus Defence and Space (46%), BAE Systems (33%) and Leonardo (21%). With regards 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 centre 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. To date, 721 Eurofighters have been ordered by nine customers (UK, Germany, Italy, Spain, Austria, Saudi Arabia, Oman, Kuwait and Qatar). In December 2024, Spain ordered an additional 25 aircraft and Italy placed an order for up to 24 additional aircraft. By the end of 2024 a total of 609 aircraft were delivered. 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 a 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 and reconnaissance (“ISR”), among other missions. This family of aircraft has been in service for more than 20 years, and has proven to be robust, reliable, high-performing, efficient, flexible and easy to operate in any environment, and with low operating costs. More than 300 orders have been recorded for the C295 by 41 operators through the end of 2024. In October 2024, Tata Advanced Systems Limited (TASL) and Airbus inaugurated the Final Assembly Line (FAL) complex for the Airbus C295 aircraft in Vadodara, Gujarat in India, pioneering the ‘Make in India’ project to manufacture and assemble 40 C295 aircraft for the Indian Air Force (IAF). UAS - Unmanned Aerial Systems: in the field of UAS platforms, Airbus Defence and Space is active at both product (Eurodrone, Zephyr, Sirtap) and service levels, supplying robust and dependable solutions for customers across military, commercial and institutional markets. Solutions span from tactical UAS to stratospheric solar powered high altitude platform station (“HAPS”). Next generation air superiority programmes such as FCAS are planned to feature strong UAS components, spurring the development of different types of remote carriers, and leveraging manned-unmanned teaming (“MUM-T”) technologies. Eurodrone – Medium Altitude Long Endurance Remotely Piloted Aircraft System (“MALE RPAS”): is the first unmanned aerial system designed for flight in non-segregated airspace. This programme which is under development should give Europe its own unparalleled competencies in the field of UAS, offering advanced strategic performance capabilities, and with the aim to allow for mission modularity for ISR missions, contributing to European sovereignty. The Eurodrone contract between Airbus Defence and Space as industry prime (in partnership with Leonardo and Dassault), and OCCAR on behalf of the nations (Germany, France, Spain and Italy) provides for the delivery of 20 Eurodrone systems (with 3 drones and 2 ground stations each), along with an initial five-year package of in-service support. Eurodrone is anticipated to offer capabilities that facilitate international conflict prevention and crisis management during all phases of operation - especially in the field of Intelligence, Surveillance, Target Acquisition and Reconnaissance (“ISTAR”). As a four-nation project, Eurodrone should help to strengthen European sovereignty by establishing and expanding an independent technological base in the field of unmanned aviation. This programme reflects the initiative to increasingly rely on multinational armament projects. Development, procurement and operation are planned to be carried out jointly, which should save costs and increase efficiency. Eurodrone is designed to become one of the main pillars of any future combat air system, prepared for real integration into civil airspace based on minimal restrictions and easy transportability due to its modular design. The design aims to offer multi-mission capabilities and significant growth potential, for homeland operations, ISTAR and armed ISTAR, which can be conducted with full operational sovereignty. Japan, which joined the Eurodrone programme as an observer in 2023, continued its engagement in 2024. In 2024, the first contractual milestones for the Eurodrone programme (including the preliminary design review) were achieved. Zephyr – solar-electric stratospheric HAPS: is designed to be capable of flying continuously for months at a time at around 70,000ft, above weather and conventional air traffic. It remains the only fixed-wing HAPS to have demonstrated day/night longevity in the stratosphere. It offers a range of continuous surveillance, communications and monitoring services Airbus SE/ Report of the Board of Directors 2024 31
for both military and civil markets. In June 2024, a Japanese Consortium led by NTT DOCOMO, Inc. and Space Compass Corporation, together with Mizuho Bank Limited and the Development Bank of Japan Inc., committed to invest USD$100m in AALTO HAPS Limited (“AALTO”), which manufactures and operates Zephyr HAPS. Airbus Defence and Space will remain AALTO’s majority shareholder. SIRTAP – Sistema RPAS Táctico de Altas Prestaciones (or High Performance Remotely Manned System): is the next generation tactical fixed-wing UAS designed to meet the operational requirements of armed forces and governmental agencies around the world, providing extended endurance and a flexible payload in a range of capabilities adapted to fulfil ISR missions across military and civil markets. As it will be dual-use, it should be capable of carrying missions such as maritime surveillance, search and rescue, natural disaster relief, fire fighting support, as well as target identification, damage evaluation operations, ISTAR missions and convoy protection, among others. In 2024, following the contract signature with the Spanish Ministry of Defence for the development and acquisition of nine SIRTAP systems, SIRTAP’s Final Assembly Line kicked-off at Airbus in Getafe. Air Power Services: Airbus Defence and Space offers and provides various services for and related to military aircraft and UAS. Throughout the lifetime of its aircraft, the Company offers 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 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’s Airborne Warning and Control System (“AWACS”). Airbus Defence and Space provides a broad range of training services for pilots, engineers, maintenance and air crews. Covering the complete pilot training path, from initial training through the Airbus Flight Academy of Europe (“AFAE”), to type and conversion training through Airbus Defence and Space’s international training centre and training centres located at customers’ bases, as well as advanced mission training through other subsidiaries. Airbus Defence and Space continues to develop the training of the future, enabled by digital, collective simulation and live virtual constructive technologies. Airbus Defence and Space maintains a network of MRO centres strategically located throughout the world for greater proximity to the customer, for example in Europe, in Seville, Warsaw or Manching (Germany), in the US in Mobile, Alabama, or at subsidiaries in Saudi Arabia or Canada. Supporting more than 1,600 aircraft worldwide, the contribution of Services continues to grow. Airbus Defence and Space offers UAS services through Airbus DS Airborne Solutions GmbH, supporting FRONTEX (the European Border and Coast Guard Agency) for surveillance operations in the Mediterranean Sea. Space Systems Commercial Sector: Telecommunications Satellites, Space Infrastructure, Launch Services The commercial telecommunications satellite market is highly competitive – with customer decisions primarily based on price, technical expertise and track record. The main competitors for telecommunications satellites are (in the US) Boeing, Lockheed Martin, MAXAR Technologies and Northrop Grumman, (in Europe) Thales Alenia Space and OHB, and (in Asia) the China Aerospace Science and Technology Corporation, ISTRO and Melco. The commercial geostationary (“GEO”) telecommunications satellite market continues to stabilise. While the number of orders for traditional GEO satellites has declined, the demand for alternative solutions is high. In this context, software-defined satellites and small GEO are becoming more relevant, and large system integrators like Airbus are tapping into new market trends. For example, Airbus aims to participate as a key industrial supplier in Europe’s LEO constellation, known as the Infrastructure for Resilience, Interconnectivity and Security by Satellite (“IRIS²”) programme, which began in earnest with signature of a concession agreement between the European Union and the SpaceRISE industrial consortium at the end of 2024. Constellations beyond Europe are also gaining traction, with full funding confirmed for Telesat’s “Lightspeed” constellation in 2024, and Amazon anticipated to shortly launch its first satellites for Project Kuiper. These competitor constellations are expected to commence service delivery in the second part of this decade. The OneWeb global high-speed internet constellation was completed in 2023, with 600+ satellites now in orbit and full global service entry anticipated in the near-term. This endeavour required a full re-think of satellite design and manufacturing, to facilitate production at competitive costs and on relatively short timelines. Since January 2024, Airbus has been the sole owner of the former Airbus OneWeb Satellites manufacturing facility in Merritt Island, Florida, supplying commercial and US government contracts. In December 2024 Airbus Defence and Space was awarded a contract by Eutelsat to build an Airbus SE/ Report of the Board of Directors 2024 32
extension of the OneWeb Low Earth Orbit (LEO) constellation, with the first batch comprising 100 new satellites to be built at the Airbus site in Toulouse. The Airbus and Voyager Space joint venture, Starlab Space, has gained momentum over 2024 with new equity partners Mitsubishi Space and MDA Space joining the team. Starlab Space is set to develop, build, and operate Starlab, an industry-led space station that is planned to replace the International Space Station (which is due to conclude operations in 2030). The market for commercial launch services continues to evolve, with ongoing competitive pressure. Arianespace (a subsidiary of Airbus-Safran’s ArianeGroup joint venture) provides launch services with Ariane launchers and with Vega launchers (until Vega flight 29). Competitors for launch services include SpaceX, United Launch Alliance, Rocket Lab (for smaller payloads) and various national space agencies. 2024 marked the first flight of Europe’s new heavy-lift launcher, Ariane 6 and the last flight of the Vega launcher, while the new Vega-C launcher made a successful return to flight after a 2 year hiatus. For further information on the ArianeGroup joint venture, please see below under “ArianeGroup”. Governmental Sector: Satellites, Space Infrastructure, Launchers, Deterrence In the public market for Earth Observation (“EO”), navigation and science satellites, competition in Europe is organised on a national and multinational level, primarily through the European Space Agency (“ESA”), the European Commission and national space agencies. Space Systems remains a major player in the EO segment, involved in the 12 existing and future Copernicus environment missions. The Company was awarded a contract by ESA in 2024 for the development of the GRACE-C gravity-monitoring and Vigil space weather satellites. There is also continued export demand for Earth Observation systems. The export market is expected to continue growing over the medium-term, driven by demand from new governmental operators on top of the replacement of existing assets. Airbus Defence and Space is building on its re-established position on the navigation side, as it continues to work on the manufacturing of six Galileo second-generation satellites for Europe’s navigation system as well as the EGNOS V3 navigation overlay system, critical for aircraft navigation. The space exploration segment comprises scientific missions for solar system exploration and crewed space systems. Demand for space exploration systems originates solely from publicly funded space agencies, in particular from ESA, NASA, and JAXA (Japan). Such systems are typically built in cooperation with international partners. The predominant field of activity in this segment is to provide 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, with six modules under contract. In 2022, the Orion spacecraft successfully completed the first full test mission (Artemis I), with a trip around the moon. The Artemis II crewed mission is set for launch in 2026. 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 an important role in providing vehicles, platforms and services to support these ambitious endeavours. Against the current geopolitical backdrop, there is growing attention to military capabilities in Space. Airbus Defence and Space aims to support nations by providing connectivity, information superiority and in-space operations for defence. There is strong demand in the governmental satcom market in the Airbus home nations, as well as internationally. In 2024 the Company signed two major contracts for government needs: the first with Space 42 in the UAE for their new geostationary secure telecommunications satellites, Al Yah 4 and Al Yah 5. The second with the German Armed Forces for their next-generation secure military satellite system which includes geostationary satellites as well as covering ground segment, launch and operations for 15 years. The equipment business has benefited from a stable European market, with growth in the US materialising in 2024. Notable recent contracts to supply constellation equipment include: 200 Sparkwing solar arrays under direct contract to Airbus, and 800 laser terminals and 500 star trackers under contract respectively to the Company’s Tesat and Jena Optronik subsidiaries. There is potential for future growth arising from additional countries developing their space capabilities. ArianeGroup, a joint venture between the Company and Safran, is the lead contractor for Europe’s Ariane 6 launcher family, and responsible for the design, manufacture and marketing of launch services through its subsidiary, Arianespace. It is also responsible for the research, design, development, production and support of missiles for the French nuclear deterrent force (French Strategic Oceanic Force). These activities are compliant with the Treaty on the Non-Proliferation of Nuclear Weapons. The Company’s reported revenues do not include any revenues relating to these activities (accounted for using the equity-method) as it does not have exclusive control of the joint ventures. Airbus SE/ Report of the Board of Directors 2024 33
Products and Services Human space flight: Airbus has played an important role in human spaceflight, starting with the Spacelab reusable laboratory flown on the US Space Shuttle, followed by the development of the Columbus module and the Automated Transfer Vehicle (ATV) spacecraft for the ISS. Today, Airbus’ expertise is being applied to the European Service Module (“ESM”) powering Orion. Airbus is the prime contractor to ESA for the development and manufacturing of six ESMs, the first of which flew on NASA’s Artemis I mission in November 2022. Artemis II is currently scheduled to fly in April 2026. Looking to the future, Airbus is paving the way towards industry-led space stations, as the ISS approaches end of life at the turn of the decade. Along with Voyager Space, it was a founding member of Starlab Space LLC, a global joint venture between Voyager Space, Airbus, Mitsubishi Corporation and MDA Space that is designing, building, and will operate the Starlab commercial space station. Starlab will serve a global customer base of space agencies, researchers, and companies, ensuring a continued human presence in low-Earth orbit and a seamless transition of microgravity science and research from the International Space Station into the new commercial space station era. Airbus, on behalf of Starlab Space LLC, is responsible for the engineering of the overall Starlab system as well as for the construction and outfitting of its habitat. 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 was first to bring a reconfigurable satellite (OneSat product) to the telecommunications market. The Company has nine OneSats under contract; three for Inmarsat for the first of their next generation of geostationary Ka-band satellites, one for Optus (an Australian operator), two for Intelsat, one for SkyPerfect JSAT, one for Thaicom and one for an undisclosed customer. With regards to its new all-electric and customer oriented Eurostar Neo platform, manufacturing is ongoing for seven satellites for the UAE’s Space 42 as well as the Spanish, German and UK governments. Observation and scientific / exploration satellites: Airbus Defence and Space supplies Earth Observation satellite systems carrying optical and radar instruments and ground infrastructures for both civil and military applications. Customers can derive significant benefits from the common elements of the Company’s 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 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 and planetary exploration. Current projects under design and build for the European Space Agency include Earth Return Orbiter to bring the first ever Mars samples back to earth, the ExoMars rover, Ariel Europe’s next exo-planet mission, and SMILE, to image earth’s magnetic environment. Flagship inter-planetary missions include the JUICE spacecraft, ESA’s next life-tracker inside our solar system, and BepiColombo, Europe’s first mission to Mercury. Navigation satellites: Airbus Defence and Space is prime contractor for EGNOS V3, the next generation of the European Satellite Based Augmentation System, planned to provide the aviation community with advanced “safety of life services” and additional new services to maritime and land users. Airbus is also manufacturing the first of six satellites for the second generation of Europe’s Galileo, embarking on a new and enhanced payload that will open new possibilities for the navigation sector. 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, human spaceflight and launchers. Commercial launchers: ArianeGroup - an Airbus–Safran joint venture - manufactures launchers and performs research and development for the Ariane programme as well as the reusable Maia launcher. Member States, through ESA, fund the development costs for Ariane launchers and associated technology. For almost 20 years Airbus Defence and Space was the sole prime contractor for the Ariane 5 system, which completed its final flight in 2023. 2024 marked the first flight of Europe’s new heavy-lift launcher, Ariane 6. Only two years after the creation of MaiaSpace, almost all sub-systems of the Maia launcher have been produced and tested thanks to their iterative “test & learn” approach and pragmatic industrial footprint, with the commencement of commercial exploitation being targeted for 2026. Airbus SE/ Report of the Board of Directors 2024 34
French deterrence systems: ArianeGroup, as prime contractor, holds the contracts with the French State for its submarine-launched deterrence system family. Connected Intelligence Connected Intelligence is active in the cyber-defence, information and decision superiority, end-to-end space services and professional mobile radio markets. It’s divided into four Programme Units: Defence Digital, Cyber, Space Digital, and Public Safety & Security. Defence Digital: is “designed” to be the “digital light-house” for our defence customers, who demand fully interoperable, digitised and automated multi-domain solutions for changing defence conditions. Key users include Germany, France and UK as well as other NATO nations and international missions such as NATO AWACS (Airborne Warning and Control System) and NATO AGS (Alliance Ground Surveillance). Cyber: serves Europe and its allies as a trusted European cybersecurity provider, as a specialist in cybersecurity for Defence and Aerospace systems, assets and network and endpoint security. Its mission is to design, develop, integrate and deploy tailored and reliable cybersecurity products and solutions for defence, governmental, institutional and commercial customers as well as for critical national infrastructure. The Cyber Programme Unit is the home to the Division’s core cybersecurity competences and capabilities, with clear governance to support all business lines of Airbus Defence and Space. Space Digital: provides trusted Space Solutions, uniting Connected Intelligence’s space-related services and capabilities. Its customers are governmental, institutional, and commercial. In the geospatial domain, Space Digital offers a comprehensive range of geospatial data and services, including earth observation imagery, advanced products such as mosaics, elevation models, and 3D imagery, analytics and geospatial solutions catering to diverse industries, including defence, security, intelligence, environment, agriculture, maritime, oil & gas and more. These data and services are provided through a wide range of channels, from digital (e.g. the OneAtlas platform) to dedicated infrastructure (Direct Receiving Stations). The Programme Unit is also operating in governmental satellite communications and military space, offering multi-domain (land, sea and air) secure sovereign space solutions for national and global security, notably the UK, France, Germany, the US, European Institutions and NATO. Public Safety and Security: Public Safety and Security aims to deliver critical communications solutions to organisations - governmental, defence and private - which are responsible for the security and the protection of the population, critical infrastructures and environment. In this respect, Public Safety and Security is paving the way for the digital transformation of its customers. Products and Services Defence Digital: is a recognised actor in defence intelligence as well as a system house supplier for securely connected ISR (Intelligence, Surveillance and Reconnaissance), Air Defence and Land Command and Control solutions. Defence Digital provides multi-domain and cyber-resilient information superiority through real-time ISR data fusion and predictive analysis for military and governmental customers. It develops its solutions to support multi-domain operations, fostering a culture of proactive digitalisation within Airbus to meet the defence market demands. Airbus Defence and Space has supported the German Air Force for over 30 years with its AirC2 (a control and reporting centre) and ground-based air defence system. Developed according to NATO standards, these solutions ensure interoperability for collaborative NATO operations. Real-time ISR, data fusion, and predictive analysis capabilities are actively deployed in NATO missions and certain European Ministries of Defence. Cyber: the portfolio encompasses broad expertise in cyber project management, including crypto and key management systems, security gateways, network and endpoint protection, aerospace multi-messaging systems, detection and response chain, and cyber attack simulation platforms. Having protected Airbus Defence and Space complex systems and networks for over 30 years, this programme is leveraging the Airbus DNA to develop products and solutions for customers facing similar challenges, based on state-of-the-art trusted technologies. Cyber security is a very dynamic sector, and the Company’s strategy aims to ensure the group and its ecosystem benefit from the best possible protection. The Cyber Programme Unit consists of Cyber Programmes (including Infodas) and Stormshield. Stormshield provides standardised solutions for roughly 20,000 firewalls per year, comprising a range of 8 models from entry-level to high-end, while remaining an arm’s length affiliate due to its specific business model. Infodas was acquired by Airbus Defence and Space in September 2024. The Infodas portfolio comprises cross-domain cybersecurity solutions (security gateways, data diodes, data classification services), patch management for isolated networks, and cybersecurity / IT consulting services. Airbus SE/ Report of the Board of Directors 2024 35
Space Digital: The Geospatial business manages a fleet of satellites, including radar (TerraSAR-X, TanDEM-X and PAZ) and optical (2 Pléiades, 2 Pléiades Neo, SPOT 6, Vision 1) satellites. The Company is committed to delivering high quality earth observation services including high resolution satellite imagery to support various needs, including disaster relief for rescue operations. 2024 saw Space Digital's kick-off of the Pléiades Neo Next programme for the next generation of high resolution imagery. All satellite images are accessible on the OneAtlas platform with both optical and radar imagery available, ad-hoc analytics included. Space Digital provides satellite communications (satcom) and sovereign military space solutions for governments, defence, and international agencies. Building on the success of the UK’s Skynet 5 programme, the Programme Unit delivers end-to-end satcom systems and mission-critical space services for national and global security customers including France, Germany, UK, US, European Institutions and NATO. This includes the management and delivery of pioneering European Data Relay Satellite system (EDRS) high data throughput communications services. In 2024, Space Digital successfully launched a hosted payload on EUTELSAT 36D to provide Ultra High Frequency (UHF) military communications to European Ministries of Defence. Public Safety and Security: offers advanced mobile communication and collaboration solutions with the highest standards of security and reliability to Public Safety organisations and enterprises. Its portfolio of products and services evolves constantly to meet the changing requirements of public safety, defence, critical infrastructures and TUI sectors (transport, utilities and industry). To deliver the solutions which enhance situational awareness, improve user experience and safety, and optimise operational efficiency, Public Safety and Security integrates infrastructures, networks, devices, applications, software, and services, based on narrowband (TETRA, Tetrapol) and broadband (4G/5G) technologies. The Agnet solution is based on the latest 4G/5G broadband technologies and includes voice communication, messaging and multimedia sharing as well as interoperability with TETRA and Tetrapol technologies. In 2024, Public Safety and Security received various awards for the renewal and upgrade of its installed base all over the world, notably in Germany where all core network migrations were successfully achieved as part of the mid-life upgrade of the Bosnet VTS network. In France, Public Safety and Security and its partners completed several operational demonstrations of the Réseau Radio du Futur for the French Ministry of the Interior, with roll-out anticipated to follow in the near term. 2024 also marked the commercial launch of Agnet Turnaround, designed for communications among ground handling stakeholders at airports, and the receipt of awards for two new projects: EUCCS preparation, an EU-funded project which aims at demonstrating cross-border interoperability between broadband systems, and Air!5G whose objective is to demonstrate the complementarity between terrestrial and non-terrestrial 5G for defence and public safety purposes. In addition to these developments, Public Safety and Security’s solutions were extensively used by first responders during recent natural disasters, including the significant floods in Spain, Germany, France and Dubai. Finally, Public Safety and Security successfully supported several major sports and cultural events worldwide, including the Paris 2024 Summer Olympic Games. MBDA Airbus Defence and Space holds a 37.5% stake in MBDA (a joint venture with 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), as well as the battlefield engagement Akeron LP missile. The development of the Anglo-French joint venture for a FC/ASW (Future Cruise/ Anti-Ship Weapon) is under assessment. Recent product upgrades also include the Aster Block 1 NT (New Technology), the air and 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/Akeron MP missile for the battlefield of the two nations. Further activities include the preparation of hypersonic and direct energy applications/systems for future programmes such as FCAS and GCAP, the production of various aircraft packages for the Eurofighter Typhoon and Rafale existing programmes (including ASRAAM, MICA, and Meteor), as well as the production of ground based air defence packages Airbus SE/ Report of the Board of Directors 2024 36
(including CAMM, VL MICA and Mistral) and various packages for frigate and corvette systems/missiles (including Aster, CAMM, VL MICA, Marte ER and Otomat). ArianeGroup Airbus Defence and Space is active in the field of launchers and launch services through ArianeGroup, a joint venture with Safran. ArianeGroup is responsible for the coordination and programme management of civil activities of the launcher business and other adjacent activities, providing a complete range of launch services with Ariane launchers and with Vega launchers (until Vega flight 29). Airbus SE/ Report of the Board of Directors 2024 37
1.5 Other Corporate Activities 1.5.1 Digital and Information Management 1.5.1.1 Overview Digital transformation is no longer a supporting initiative but a fundamental pillar of the Company’s success. This section details the Company’s progress in 2024 in leveraging digital technologies to enhance efficiency, drive innovation, strengthen cybersecurity, and deliver value to customers. The Company remains focused on optimising its digital ecosystem, deploying cutting-edge technologies, and cultivating a digitally fluent and resilient workforce. 1.5.1.2 Digitally enabled end-to-end processes Digital Design, Manufacturing and Services (“DDMS”) DDMS is the Airbus group-wide programme accelerating the transformation of the Company’s processes, systems and skills to harness the potential of system engineering and digital technologies, like virtual twins and AI, enabling faster and better decision making along the lifecycle of the Company’s products. From understanding customers’ needs to the operation and servicing of the Company’s products, these innovations are driving new ways of working in all divisions, with digital-first approaches already having measurable benefits. With more than 11,000 people already using DDMS solutions (including within the Company’s supply chain), the key major achievements this year were the following: Single Aisle (A320 Family): after delivering the first A321neo designed and assembled using the complete suite of DDMS solutions earlier in 2024, Airbus is now applying the approach to all new A321neo aircraft. The DDMS suite of solutions for the A321neo includes full 3D integration and digital continuity – from offer through design and production to support and services. This has resulted in a significant reduction in quality issues, and has notably reduced design and production lead times for this aircraft. The DDMS on A320neo aircraft will soon be finalised. Future programmes in Commercial Aircraft: measurable efficiency gains and speed could be reached through the deployment of model-based system engineering, virtual twins and digital continuity on the A350 Freighter. Co-development principles, model based system engineering and digital thread are becoming standard in the design, manufacture and maintenance of future aircraft. Eurodrone and FCAS: Eurodrone development continues to depend on DDMS capabilities. A strong ramp-up of deployed capabilities happened in 2024 and enabled the preliminary design review. The ‘remote carrier’ demonstrator of FCAS will re-use the capabilities developed for Eurodrone. This is a strategic and major step towards common DDMS solutions for Airbus Defence and Space AirPower programmes under development. Helicopter Programmes: further progress has been made in deploying DDMS within Helicopter programmes. An advanced 3D viewer is now available for all helicopters’ programmes. Further, digital continuity has been established between the design teams and the shop floor for main gear box assembly, as well as for a new helicopter final assembly line. A digital simulation environment for product life cycle management has started to be deployed in several engineering lead functions, bringing significant progress in terms of quality and traceability between design and simulation, both being managed in synchronised configuration. Lastly, new capabilities between design and integrated logistics support have been developed to connect and automate 3D illustrations for logistics support activities. They are under final business acceptance tests, before their impending initial deployment on the H160 helicopter. Artificial Intelligence The Company has made AI a central focus. The initial success of the Company’s generative AI initiatives has spurred exploration across all businesses, identifying numerous opportunities for value creation. The overall AI strategy is multifaceted, aiming to optimise internal processes, better serve customers, enhance safety, efficiency and resilience, and empower the Company’s workforce. The Company’s ambition is for this strategy to meaningfully contribute to its business and results over the mid-to-long term. Airbus is working to actively shape the future of AI in aerospace by defining industry standards and streamlining internal governance. Key areas of focus include generative AI, decision-making AI, and Airbus SE/ Report of the Board of Directors 2024 38
computer vision, all supported by a commitment to secure, responsible and ethical AI practices. To support this commitment, a robust ‘return on investment’ framework is being implemented, secured AI data processing platforms are being deployed, and a transversal AI ‘center of excellence' will be established. A dedicated steering committee, sponsored by Executive Committee members, has been created to ensure that AI implementation respects the Company’s values of safe, responsible and ethical AI. Cyber security The Company made progress in its digital cybersecurity transformation by strengthening its secure connectivity model and core controls. It also increased the scope and coverage of active running services to protect its business. The recruitment and development of key skills and competences remains a top challenge, but the Airbus Cybersecurity School is beginning to help address this. In the future, the Company will continue to improve and mature its services, aiming to strengthen the resilience of its digital solutions to protect its business. Digital transformation at Defence and Space In Airbus Defence and Space, transformation activities are focused on streamlining the digital foundation, bringing efficiency and value for money, improving user experiences, preparing the future with new digital capabilities and upskilling employees. In 2024, the standardisation and simplification of the complex IT landscape progressed further. The overall number of legacy networks has started to be reduced, with further reductions planned in the near-term. A critical step has been the establishment and accreditation of the international restricted layer, which is designed to enable the exchange of restricted data across nations. Following a re-baselining to adapt the scope and deliverables, the major transformation programmes’ Enterprise Resource Planning (ERP) roadmap and DDMS went ahead, focusing on the Air Power business line. Finally, a data strategy for the division was defined, providing a roadmap for the coming years to pave the way towards an even more data-driven company. Digital transformation at Helicopters Airbus Helicopters is progressing with its plan to standardise and harmonise company processes across all its sites through key digital transformation programmes like new ERP and DDMS. A significant step will be the deployment of the latest SAP technology at the company's future international logistics hub in Albacete (Spain), setting a new standard for logistics processes. Previous efforts in data governance have enabled Helicopters to launch its effort to establish a center of excellence for data, which once deployed will improve data analytics and be crucial for the AI roadmap in the coming years. Digital transformation has also focused on strengthening digital foundations, aiming for high availability, efficiency, and the protection of digital assets and production means. It is also focusing on protecting helicopters from increasing cyber risks. 1.5.1.3 Digitally-enabled products and services Skywise At its origin in 2015, Skywise was launched to unlock data from the Company’s discrete legacy systems to make it accessible and actionable for day-to-day operations. Now fully industrialised, Skywise adoption is still expanding at a rapid pace, growing approximately 30% in 2024 to reach approximately 47,500 users across all of the Company’s functions and divisions. The strategy to place data at the heart of the Company’s digital transformation is yielding results. Over 2024, Skywise data architecture has been enriched with real-time digital continuity features that support end-to-end business processes. Skywise is the flagship platform for the aerospace industry's digital transformation, connecting Airbus, airline customers and some key aerospace suppliers. With Skywise directly supporting the operations and maintenance of more than 11,800 commercial aircraft (Airbus and other OEMs), it is allowing the airline industry to realise significant annual savings by leading to reduced flight delays and cancellations. The self-service usage of the Skywise platform has yielded increased operational efficiency for customers, and has accelerated overall aircraft operational availability. Approximately 54% of the Airbus fleet in service is now supported by Skywise platform as well as Skywise digital solutions developed by Airbus Customer Services such as S.Health Monitoring, S.Predictive Maintenance and S.Fleet Performance. Finally, in December 2024, Skywise received the ISO27001:2022 certification (from the International Organization for Standardisation (ISO)) demonstrating that the Airbus Information Security Management System has deployed the best practices and principles enshrined in this International Standard to keep cyber-security at the heart of its data analytics and workflows. Airbus SE/ Report of the Board of Directors 2024 39
Digitalise the aircraft In 2023, a dedicated team was established to develop a connected aircraft platform. It is tackling aircraft connectivity, ground services operations and passenger experience. As commercial aircraft become increasingly connected, this platform enables the Company’s fleet to seamlessly integrate into and interact with this evolving ecosystem. It will support a range of digital use cases, including “internet of things” (IoT) services, onboard applications ecosystem management, AI, live data, remote diagnostics, and over-the-air updates — all designed for deployment while in flight. In 2024 the architecture and industrial solution was defined, and the objective looking ahead is to fully develop and commercialise the solution in the coming years. Digital services for helicopters Digital transformation at Airbus Helicopters Support and Services continues to follow its multiyear roadmap, pursuing ambitious targets on aviation safety, fleet availability, competitiveness and innovation. Initiatives in Helicopter digital transformation are designed to contribute to those ambitions; from end-to-end data creation, to data collection and analytical exploitation. This enables Airbus Helicopters to not only increase efficiency but also to further extend the digital services offered to its customers. 1.5.1.4 Digitally enabled people Google Workspace deployment Google and Airbus continue to partner to further improve the functionalities of Google Workspace. After the development of data labelling and encryption with Airbus key functionalities, and the deployment at scale of Google Appscript and Appsheet, the next step will be the deployment and adoption of Gemini for all Airbus employees. The Company has also successfully engaged in discussions with French (ANSSI), German (BSI) and other European authorities to allow Dual Use Export Controlled and National Security Unclassified data to be stored in Google Workspace. Further discussions are being pursued to extend the perimeter to Military Export Control and National Classified documents, leveraging sovereign encryption solutions. Skills and upskilling The “Digital Academy” team identifies the core and critical skills and competences required to upskill and best utilise the opportunities arising from the ongoing digital transformation. In 2024, Airbus confirmed its strong investment in upskilling solutions on digital; from awareness up to expertise, enabling efficiency, competitiveness and innovation, enhanced by the competencies of the Company’s workforce. The key developments were as follows: 6,600 employees across Airbus are mapped to a digital job, and 57,000 employees have at least a competence / skill in their position linked to the digital world (+3% since 2023). 90% of these “digital” profiles in the Company can benefit from specific career path frameworks, designed for architects, technology specialists, developers, IT operation managers, IT product/service managers, data analysts/scientists, business analysts and innovation managers. Feedback from managers and employees has been very positive so far. The digital “eXperts” community continues to grow in key technologies and technical fields. 18,000 employees have been trained on digital upskilling solutions (from awareness to specialists). There are 5,300 active members in “communities of practice” (social learning) related to the Company’s digital jobs and capabilities, exchanging on best practices, “pain points”, and mentorship, and participating in events and seminars. 270 employees were certified in 2024 on data analytics, data science, cloud, information technology infrastructure, SAP and digital architecture skills. Airbus SE/ Report of the Board of Directors 2024 40
There were specific learning sessions for senior Airbus leaders, focused on expanding their knowledge of digital trends, to support the goal of embedding it further in manufacturing, quality control, supply chain and logistics and customer services. 1.5.1.5 Concluding thoughts and next challenges The successful deployment of DDMS across the A321neo and its ongoing integration into other programmes, coupled with advancements in AI capabilities, highlight the potential that strategic digital initiatives have to make a positive impact across the Company’s businesses. The growth of Skywise usage and its contribution to significant cost savings for airline customers demonstrate the powerful value creation potential of a data-driven approach. While challenges remain in the acquisition of talent with software engineering and digital skills and in maintaining robust cybersecurity against the backdrop of a constantly evolving threat landscape, the continuing investment in the Airbus Cybersecurity School and the strengthening of a secure connectivity model continue to contribute to mitigating these risks. Looking ahead, the Company’s ambition remains to further leverage the Company’s digital capabilities and continue to solidify the Company’s position at the forefront of the aerospace industry. 1.5.2 Research and Technology The Airbus Technology and Engineering department, led by the Chief Technology Officer (“CTO”), is orchestrating the acceleration of research and technology (“R&T”) and innovation, while fostering technology synergies across the divisions (Commercial Aircraft, Airbus Helicopters, Airbus Defence and Space), advancing expertise in cutting edge technologies. The department’s objective is to develop new technologies that enable Airbus to continuously enhance its product and services offerings, with specific priority given to technologies for next-generation aircraft, bringing together products, production systems and services. Each division has its own dedicated R&T function, to support and coordinate development of their respective businesses. These divisional functions primarily perform planning and technical arbitration within their perimeters. In order to foster continuity across the divisions, they are accountable for Technology, Engineering and Product Strategy. The Disruptive R&T Department delivers cross-divisional development of disruptive technologies and solutions to benefit the Company’s future endeavors. It focuses on both technology and business disruption, exploiting technology trends across geographies and delivering a set of services, competencies and capabilities, utilising the following pathways: Fast Tracks: the CTO is supported by “Fast Track” leaders, who serve as principal advisors working to ensure coherence of activities within the portfolio and fostering the rapid advancement of strategic priorities across the businesses. Current fast-track roadmaps cover the following technologies: AI, autonomy, connectivity, electrification, industrial systems and manufacturing, and materials. Central R&T (“CRT”): this cross-divisional R&T organisation 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. Group demonstrators (UpNext and FlightLab): the Company’s development of selected cutting-edge technologies is accelerated through these “demonstrators”, which employ rapid maturation methods. This function delivers, thanks to the Airbus UpNext subsidiary, flight and ground demonstrator projects that drive collaborative new ways of working, provide high levels of transparency and help to challenge the status quo. X-Labs: these provide test, conceptual design, simulation and rapid prototyping capabilities for the R&T portfolio and the engineering centres, in particular by addressing capabilities that do not otherwise exist within Airbus (e.g. electrification). Acubed: this research and innovation centre based in Silicon Valley focuses on accelerating AI and autonomy adoption in pursuit of competitive advantage. Acubed plays a central role in fast-tracking the maturation of key autonomy functions for the next generation commercial aircraft programme. More broadly, it connects the Company to Silicon Valley, providing intelligence insights and leveraging the unique expertise that is thereby accessible. Airbus SE/ Report of the Board of Directors 2024 41
Airbus China R&D and Innovation Centre (ACRI): accelerating “local for local” innovation by leveraging the local sustainability and digital innovation ecosystem to support local business growth and support the Company’s future competitiveness in China. Airbus India Innovation Centre: building disruptive products for all three divisions by leveraging the strong engineering and digital competencies residing within Airbus India, while also collaborating with the external innovation ecosystem in the country. Airbus Tech Hub: a global network of technology and innovation hubs which aims to foster collaboration with industry leaders, academia, knowledge institutes, government and start-ups to develop a strong network of communities pushing the boundaries in aerospace technology and preparing the future of aviation. Most recently established in Japan, the Netherlands and Singapore. Airbus Central Innovation (previously called Airbus Innovation X/Scale): leverages trends and engages ecosystems to impact current and future aerospace challenges by detecting the right trends, technologies, startups and new business opportunities. To perform this task, the team has a four-pronged structure: corporate innovation, global technology scouting, startup engagement, and incubator (development of new businesses). Additionally, to support a multi-division programme and to define the Airbus technologies roadmap, cross-portfolio technology planning, road mapping, and joint funding with public agencies are coordinated through a cross-divisional programme R&T integrated function. To help safeguard the benefits created for the Company through R&T, its intellectual property is protected, secured and defended through a central intellectual property function, responsible for patent applications, portfolio investigations and portfolio defence. Key progress in 2024 Central Research & Technology CRT pioneers the future of aerospace by exploring and delivering ambitious new technologies for the Company’s current and next-generation product and services portfolio for commercial aircraft, helicopters and spacecraft. In 2024, CRT ran more than 40 projects concurrently across its domains. Highlights from these activities are listed below. Materials technologies: significant technical advancement was achieved in the fields of materials circularity, materials informatics and digitalisation, functional and high-performance materials and product mission performance and competitiveness. Electrification technologies: contributed to progress on several aspects of electrification and electric propulsion technologies. For example, electromagnetic interference (EMI) filtering for high power chains and advanced power switches based on solid state technologies. Communication technologies: groundbreaking communication technologies both on the hardware and software side for the Company’s future flying platforms. New approaches to secure communication networks on the meta-data level have been explored and key demonstrations for free-space quantum-key-distribution were performed. Further, ultra-high speed optical free-space communication was advanced and the impact of the next generation mobile communication standard (6G) was assessed. Artificial intelligence: looking beyond the AI trend in 2024, the team has achieved great progress in fundamental AI research areas. Focus areas were trustworthy AI for the certification of systems embedding AI models, decision-making for complex planning problems, and augmented generation retrieval systems. Virtual product engineering: in 2024, the team explored methods to robustly assess complex trades at system and “system of systems” levels under uncertainties. This research follows results from work on interconnected systems within complex and dynamic environments (i.e. “systems of systems”). Furthermore the team developed software and methods to enable automated and flexible meshing in 3D simulation workflows. The team is also developing scientific machine learning methods to hybridise classical numerical solvers with AI. Quantum technology: implications of quantum technologies for aerospace and defence are extensive and include important applications in the fields of computing, communication, and sensing. The objective is to explore this emerging technology for the Company and to prepare for its early adoption within the portfolio. The Airbus BMW Airbus SE/ Report of the Board of Directors 2024 42
Group Quantum Computing Challenge was held in 2024, inviting the global quantum community to solve pressing mobility applications with relevance for both the aviation and automotive sectors. The challenge ran under the motto “The Quantum Mobility Quest” and was hosted by “The Quantum Insider” and supported by Amazon Web Services. Out of more than 100 proposals, winners were selected in five categories, with potential collaborations being considered from this initiative. BlueSky research: explores, validates and fosters early upstream technologies which are new to Airbus, which are of strategic nature, and which have the potential to push the boundaries of aerospace and potentially yield high business and societal impact. Key concepts that have been explored this year include disruptive energy generation for future low-carbon emission long-range aircraft and emerging “human enhancement” technologies (such as those exploring machine control interfaces and humanoid robotics), as well as the modeling of societal acceptance of technologies (including in relation to sustainability and transportation). Airbus demonstrators – Airbus UpNext In 2024, UpNext explored multiple technologies across all divisions of the Company. “Optimate” and “Cryoprop”: two new demonstrators which were revealed at the Vivatech Conference in Paris. Optimate is a “smart autonomy” demonstrator that explores how novel sensors and advanced system architectures can help improve pilots’ situational awareness in high-workload mission phases (such as taxiing), and Cryoprop takes superconducting and cryogenic technologies to the next maturity level for aerospace applications. Auto’Mate demonstrator closure: in the first quarter of the year, UpNext concluded the Auto’Mate demonstrator, which explored future autonomous formation flight and autonomous air-to-air refuelling (A4R) capabilities. With new flight control laws, it demonstrated a close formation flight of multiple DT25 aircraft, with three physical drones and two virtually simulated drones positioning autonomously at various positions around the A310 MRTT tanker aircraft. eXtra Performance Wing first flight test campaign: 2024 also saw the conclusion of the first flight test campaign of the eXtra Performance Wing demonstrators flight test bed aircraft, which can fly in representative flight conditions of a single aisle aircraft to accelerate and validate technologies that will improve and optimise wing aerodynamics and the performance for any future aircraft. In application, the eXtra Performance Wing - compatible with any propulsion solution and aircraft configuration - is aimed at reducing COemissions, thus contributing to Airbus’ decarbonisation roadmap. Hypower demonstrator: UpNext moved ahead with a ground test facility at its Madrid site for this demonstrator, exploring non-propulsive energy generation for commercial aircraft based on hydrogen systems. Acubed Acubed taps into Silicon Valley’s vibrant tech ecosystem, providing the Company with the means and know-how to capitalise on rapid technological advancements. Dedicated to pursuing competitive advantages for the Company, Acubed’s current focus is on accelerating the adoption of AI and autonomy within the Company’s commercial aircraft operations, from commercial flight functions to manufacturing, services and digital airspace management. Through an agile and collaborative approach, bolstered by strong AI expertise, Acubed injects substantial value into Airbus by de-risking future investments, building blueprints for new and strategically important topics, and partnering with the local ecosystem, all while closely monitoring transformative tech trends. Airbus China R&D and Innovation Centre ("ACRI") ACRI includes the Airbus China R&D and Innovation Centre in Suzhou, leveraging China’s industrial ecosystem to pursue the Company’s sustainability ambition in China. ACRI’s mission is to embed within China’s local sustainability and innovation ecosystem including through local talents, partners and resources. It aims to discover promising technologies, to identify solutions enabling new business, and to support local business growth. The ACRI has the following functions: the manufacturing innovation team is tasked to explore industry 4.0 technologies to improve efficiency and safety within final assembly line activities, as well as to use Airbus’ industrial sites in China for accelerated local testing and global dissemination. The team is working on computer vision, automated guided vehicles, 5G industrial connectivity, smart tooling, remote inspection, green factory and IoT. Various applications are handed over to the business and implemented in daily operation. Airbus SE/ Report of the Board of Directors 2024 43
the cabin experience team is providing connected, digital and material circularity innovation for current and future aircraft cabin and cargo business needs, by enhancing Airbus’ local cabin offering (local to local) and bringing value for Airbus global cabin products (local to global). the connectivity team is driving innovative 5G and IoT technologies for smart airports and cargo ground operators. the system/software development team is supporting project teams on software development for innovation projects across multiple domains, including advanced manufacturing, cabin and cargo, connectivity and others. Airbus India Innovation Centre Since its inauguration in February 2023, the Airbus India Innovation Centre (AIC) has achieved significant milestones: Delivered the first product, “SimulON”, which leverages AI to advance structural simulation. SimulON reduces simulation and analysis time by 70%, significantly enhancing airworthiness assessments. This solution has now been handed over to experts for testing with live data over the next year. Creation of Digital Protospace to enable rapid digital prototyping of engineering concepts. Launch of large language model prototype, an on-premises solution that leverages large language models to process a diverse range of documents and data points, to help ensure the secure handling of sensitive, dual-use and restricted data. “IKSANA” development, a seamless digital framework designed for quality assessment of aircraft surfaces during inspections in final assembly lines. Powered by AI-driven computer-vision algorithms, it enables efficient damage location, quantification, assessment, documentation, and reporting. Airbus Tech Hub Launched in 2024 as an extension of Airbus’ cross-divisional research and innovation activities established in the Company’s global footprint, the Tech Hub’s main mission is to capture superior technologies, talents and local funding, largely through cooperative arrangements. It is intended to support the Company’s research and innovation ambitions in pursuit of technological and business excellence. As a new addition to the Airbus global technology footprint, each hub is identified based on its key competences and technological advancement in these locations: Japan: composite materials, structures and industrial use; decarbonisation technologies such as hydrogen, fuel cells, electrification; and automation and robotics. One project approved to develop parts for superconductivity motors, and two memoranda of understanding signed for urban air mobility and hydrogen hub ecosystem development. the Netherlands: sustainable aerospace structures and materials; future energy technologies including hydrogen and electrification; and communications of the future. Three projects approved to (1) develop cryogenic technologies and systems, (2) studies on technology exploration and “systems of systems” for sustainable long range aircraft, and (3) “cabin of the future” in cooperation with KLM. Singapore: decarbonising aviation; maintenance, services and operations for and around the aircraft; and air traffic management solutions. Three projects approved, to develop cargo loading systems, cold spray technologies and advanced connectivity for lower airspace, and a memorandum of understanding signed to join the International Aviation Lab (regarding airport operations). Airbus Central Innovation Airbus Central Innovation is tasked with leveraging trends and engaging ecosystems to impact current and future aerospace challenges. The scope of the team is cross-divisional, strategically aligned with the central and divisional strategy teams focusing on delivering high added value through innovation. The team delivers four different services: Corporate innovation: drives the Company’s innovation culture by supporting an internal ecosystem focused on long-lasting impact. Promotes intrapreneurship and out-of-the-box thinking, and coordinates the Global Airbus Innovation Network. Airbus SE/ Report of the Board of Directors 2024 44
Global technology scouting: identifies emerging technologies worldwide to enhance the Company’s portfolio and sustainability objectives. Facilitates cooperative arrangements with startups and smaller companies to address future challenges. Startup engagement: accelerates adoption of startup solutions aligned with the Company's strategic priorities, focusing on mature solutions with high impact potential. Notable successful outcomes include: Atlas AI®, part of the Airbus Ventures portfolio, aids in air travel demand predictions, enhancing sales campaigns and product strategy. Videns Analytics® utilises machine learning and AI to optimise line balancing and productive planning within Airbus. Be my eyes® and RightHear® contribute to improving the travel experience for passengers with disabilities. Sans les plumes® a startup with whom Airbus is partnering to upcycle the fabric from five A350s into a limited edition range of footwear and luggage. Retrocausal® helps workers to minimise non conformities arising from human error. Incubator: anticipates and evaluates trends likely to disrupt the aerospace industry. Develops and validates business models leveraging the Company’s assets to support a sustainable aerospace future. Airbus Direct Air Capture (“DAC”) is a notable success. DAC is a venture that utilises direct air capture technology to provide sustainable solutions for agriculture, and aims to demonstrate a megaton carbon capture system for future application in the aerospace industry. This venture was nominated as one of three finalists for the German Future Prize in 2023, as well as for the World Sustainability Awards in 2024. Airbus Commercial Aircraft Airbus Commercial’s R&T activity continues to progress along the axes of safety, decarbonisation, operational efficiency for customers, Airbus industrial efficiency and resilience, and passengers’ experience. Technologies are delivered to current programmes, providing options to improve Airbus products and the industrial system. Technology that will support future programmes is also investigated and matured. Areas of investigation include propulsion, wings, aircraft systems, fuselage, tail elements (empennage), cabins, industrial (production) topics, maintenance topics and engineering capabilities generally. The technologies being developed will contribute to the Company’s future efficiency and resilience, and help to secure the Company’s future licence to operate. Development of these technologies will progress across a multi-year trajectory. Achievements in recent years include: Test campaigns aimed at understanding contrails formation when using sustainable aviation fuel, feeding climate science for non-CO2 effects. First flight of the EcoPulse demonstrator, with a distributed hybrid propulsion system Completed assembly of a high-aspect ratio wing box structure and of a folding wingtip specimen for demonstration purposes Full-scale demonstration of automated assembly capability on a nose fuselage floor module. Mid-size drilling robot prototype completed for industrial automation. Low carbon technologies continue to be a strong focus. As part of its ambition to continue to pioneer sustainable aerospace, Airbus will continue to work to eventually bring a commercially viable, fully electric, hydrogen-powered commercial aircraft into service. Looking at 2024, notable areas of investigation included propulsion integration in the wing, smart automation as a system, and lightweight material for wings and fuselage (along with related industrial challenges). The Company will likewise continue its efforts to support customers to build routes that support more efficient operations, and to increase collaborative efforts around critical technology enablers and related ecosystems. Airbus Helicopters In 2024, the Research and Innovation Department celebrated two first flights. The Racer High Speed demonstrator’s flight campaign which started in April, exceeded its level speed objective of 407 km/h (220 kts) by reaching 420 km/h (227 kts) in its initial configuration, flying 50% faster than a conventional helicopter. In just seven flights and about nine hours of flight Airbus SE/ Report of the Board of Directors 2024 45
testing, almost all of its flight envelope has been opened. In early November, the eVTOL CityAirbus NextGen prototype performed its first lift-off, a key technical milestone that paved the way for its coming flight campaign. Research and innovation activities in 2024 included a thorough technical assessment of the DisruptiveLab, and the continued maturing of key technology building blocks for multiple platforms. In Germany, the PioneerLab (which was received with great expectations at ILA Berlin) performed several flights to test environmental awareness functions such as a lidar-based cable detection system. A proof-of-concept nose panel made of acrylonitrile-derived biofibre was also flight-tested to demonstrate this alternative fibre’s airworthiness (in collaboration with Airbus Central Research and Technology). The FlightLab participated in a full-scale demonstration of a crew-uncrewed teaming system, which also involved the VRS700 unmanned aircraft system. The experiment, which was part of a project funded by the European Union, demonstrated the additional mission capabilities provided by such systems. Airbus Defence and Space Airbus Defence and Space R&T continues to support its three business lines; Air Power, Space Systems and Connected Intelligence, while anticipating the future “systems of systems”. Its R&T portfolio is structured in six capabilities domains (Next Generation Aerospace Vehicles, Payload and Computing, Industrialization, Sustainability, Information Communication and Future Combat), focusing on six main technology domains (Structures, Materials and Industrials, Energy and Flight Physics, Connectivity, Flight Operations (including maintenance and electronic warfare), Autonomy for Flight, and Artificial Intelligence and Quantum). Technology selection and investment aims to support core and emerging technical solutions to enhance the strategic capabilities of legacy and future programmes. R&T highlights of 2024 include: 11 concepts from the innovation pipeline were transitioned to business lines, including AI for pilot workload reduction (for live virtual training), multi-domain emitter geolocation software, an A400M drone launcher, an intensive care transport module for transport aircraft, 3D bathymetry using Pleiades neo, and cast aluminium for space structures. The pipeline of innovation proposals increased approximately 40% over 2023, with 25 building block technologies being ready for handover to research & development for eventual integration into products. first test of laser communication in geostationary orbit using the “TELEO” on-board terminal and ground terminals. successful collaboration with the Spanish Air Force and Telefónica for the installation and testing of 5G and IFDL data links managed by an aircraft links management system (ALIMS) into a C101 aircraft, for which the team received the AP Top Innovation Award. in the domain of information superiority, a full demonstration of the 3D full digital elevation model and full city digital maps was conducted. the delivery of two building blocks that will contribute to the future development of in-space manufacturing (initial phase “characterisation” of large space-mounted antennas and robotic control software. the in-service deployment of chromium-free repair platings for Eurofighter and A400M. progress has been made toward “Next Generation Weapons System” technology demonstrations targeted to take place in 2029, developed within the German National Working Environment framework (established in 2024 among key industry partners). Airbus SE/ Report of the Board of Directors 2024 46
2 Corporate Governance 2.1 Board of Directors 2.1.1 Composition of the Board of Directors This section contains information incorporated by reference to address CSRD requirements related to Disclosure Requirement “GOV-1 The role of the administrative, management and supervisory bodies”, paragraphs 21, 23. Under the Articles of Association, the board of directors of the Company (the “Board of Directors”) consists of 12 Directors, whose terms expire at the close of the AGM held three years following their appointment. Under the Board Rules, at least a majority of the members of the Board of Directors (i.e., 7/12) must be nationals of the European Union ("EU"; any reference in the Board Rules to the EU includes the United Kingdom (the "UK") and its constituent countries, notwithstanding a withdrawal of the UK from the EU), (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 non-Executive Directors. While the Board of Directors appoints 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 a person appointed by the shareholders as an Executive Director. At least nine of the Non-Executive Directors must be "Independent Directors" (including the Chairman of the Board of Directors). Under the Board Rules, an Independent Director is a non-Executive Director who is “independent” within the meaning of the Dutch Corporate Governance Code (the "Dutch Code") and meets additional specified independence standards. Specifically, while 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 in question, the Board Rules refer to such Director's relationships with shareholders owning at least 5% of such company. According to the criteria of the Dutch Code and the Board Rules, all non-Executive Directors (including the Chairman) presently qualify as Independent Directors. The Remuneration, Nomination and Governance Committee (the "RNGC") of the Board of Directors is responsible for recommending to the Board the names of candidates to succeed Board members after consultation with the Chairman of the Board of Directors and the CEO. The Board of Directors, deciding by a simple majority of the votes cast (a “Simple Majority”), proposes individuals to the shareholders' meeting of the Company for appointment as Directors by the shareholders. No shareholder, group of shareholders or any other entity has any right to propose, nominate or appoint Directors beyond those rights available to all shareholders under general Dutch corporate 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 resolving to propose the renewal or appointment of Directors to the shareholders' meeting) are each required to apply the following principles: - the preference for the best candidate for the position; - the preference for gender diversity between otherwise comparable profiles; - the maintenance of an 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 the 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. Airbus SE/ Report of the Board of Directors 2024 47
The Board of Directors makes sure it has the required mix of experience, qualifications, skills and industrial knowledge necessary to assist the Company in formulating and achieving its overall strategy, together with the specific expertise required to fulfil the duties assigned to it and its committees. 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 French State Security Agreement, and to the German state, pursuant to the German State Security Agreement, in each case as described more fully below in Section 4.2.7.2 “Shareholding and voting rights -Undertakings with respect to interests of certain stakeholders”. 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 below in Section 4.2.7.2) of the French Defence Holding Company (as defined below in Section 4.2.7.2) 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 below in Section 4.2.7.2) of the German Defence Holding Company (as defined below in Section 4.2.7.2) who have been proposed by the Company and consented to by the German state. The RNGC endeavours to avoid a concentrated turnover of Directors in a given year. To that end, in consultation with the Chairman and the CEO, the RNGC draws up an appointment and reappointment schedule for the Directors. In doing so, the RNGC considers the continuity of Company-specific knowledge and experience within the Board of Directors, and takes into account the fact that Directors should, at the time of their appointment or reappointment, not be older than 75 years, while also ensuring that at least one third of Directors' positions are either renewed or replaced every year for a term of three years. While exceptions to these rules may be agreed by the Board of Directors if specific circumstances justify such exceptions, in the ordinary course they are observed, in order to avoid the replacement of a large block of Directors at any single AGM and the corresponding loss of experience and integration challenges that would result. Overview of the Airbus SE Board of Directors’ composition until the 2025 Annual General Meeting The RNGC performed a comprehensive review of the Board of Directors’ skills matrix, aiming at providing greater transparency and a more concrete measure of the skills, experience and expertise of the Board Members. This review involved an in-depth assessment of their skills, experience and expertise, against the backdrop of the Company’s long-term objectives, providing for the first time a definition for each of the ten skills identified. This review was undertaken in line with the expectations of the Company’s shareholders for the highest standards of governance. As a result of the comprehensive review performed, two new skills were added to the matrix, including expertise in Governance & Leadership and Human Capital. The review also highlighted areas for enhancement with four skills that were slightly amended: Finance and Audit been renamed “Finance / Audit & Risk”, Geopolitical Economics been renamed “Geopolitics”; Engineering & Technology been renamed “Engineering & Innovation” and Information & Data Management been renamed “Digital transformation, AI & Cybersecurity”. Finally, two skills have been removed from the Board skills matrix: Global Business and Asia. These changes demonstrate the Company’s commitment to maintaining a high-performing, forward-looking Board that delivers long-term value for all stakeholders. Airbus SE/ Report of the Board of Directors 2024 48
A visual overview of the new Board of Directors’ skills matrix, developed on the basis of the RNGC’s review, follows below: Airbus SE/ Report of the Board of Directors 2024 49
As mentioned above, the review likewise involved an in-depth assessment of the skills, experience and expertise of all Board members, against the Company’s long-term objectives. The result of this assessment is aggregated in the graphic below: As the graphic illustrates, the 2024 Board of Directors composition shows a balanced mix of experience, with in particular, significant experience in Human Capital (12/12), Governance & Leadership (12/12), and Engineering & Innovation, Finance / Audit & Risk and Geopolitics (11/12). Nine members have Sustainability experience, and seven members have Manufacturing & Production skills. Six of the Board members have solid Aerospace Industry experience, while Digital Transformation skills are represented by four Board members and three members have extensive Defence Industry experience. Airbus SE/ Report of the Board of Directors 2024 50
The composition of the Board of Directors until the 2025 Annual General Meeting is presented below: In 2024, Dr Feiyu Xu joined the Board of Directors as a Non-Executive Director with effect on the date of the 2024 AGM, in replacement of Mr Ralph Crosby Jr. Dr Xu was appointed for a term of two years, which will end at the close of the AGM to be held in 2026 (corresponding to the remainder of Mr Crosby’s mandate), in accordance with the appointment and reappointment principles as referred to above. She brings extensive experience in the entire cycle of innovation ranging from basic research via Artificial Intelligence development all the way to products and their commercialisation. Following her appointment, Dr Xu joined the Audit Committee as a Committee member. Mr Victor Chu, formerly a member of the Audit Airbus SE/ Report of the Board of Directors 2024 51
Committee, was appointed as a member of the Ethics, Compliance and Sustainability Committee after the AGM in April 2024. At the end of 2024, the average age of the members of the Board of Directors was 60. The proportion of female representation on the Board of Directors is 42%. The Board of Directors believes that a diverse composition among its members, notably with respect to gender, experience and national origin, is valuable for the quality and efficiency of its work. 2.1.2 Powers, rules and engagement with shareholders Powers 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 comprise 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 below unless otherwise noted): - any change in the nature and scope of the business of the Company; - the overall strategy and the strategic plan of the Company; - 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, 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, as defined below); - the appointment of all Executive Committee members as proposed by the CEO (including 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; - any relocation of the headquarters of the principal companies of the Company or of the operational headquarters of the Company (Qualified Majority as defined below); - 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; - decisions to invest in and initiate programmes financed by the Company: acquisition, divestment or sale decisions, in each case for an amount in excess of € 300 million; - decisions to invest in 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, as defined below); - 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 as defined below); - matters of shareholder policy, major actions or major announcements to the capital markets; and - decisions in respect of other measures and business of fundamental significance for the Company, or which involve an abnormal level of risk. 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. These principles include acting in the best interests of the Company and its stakeholders, devoting necessary time and attention to the carrying out of their duties, and avoiding any and all conflicts of interest. Airbus SE/ Report of the Board of Directors 2024 52
Voting and quorum rules Most Board of Directors' decisions can be made by 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 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. Shareholder engagement and Governance roadshow meetings The Chairman of the Board and the Lead Independent Director (and Chair of the RNGC) engage with shareholders of the Company together with the General Counsel and the Head of Investor Relations. The Board values an open and transparent dialogue with shareholders. The following topics have in particular been discussed: executive compensation, Board of Directors’ composition (including diversity and skills), overboarding policy (setting a maximum threshold number of board memberships), as well as the Company’s sustainability vision and strategy. Exchanging with shareholders on key governance topics provides the Board of Directors with important insights on shareholders’ expectations and allows for a continuous improvement of the Company’s governance practices. 2.1.3 Operation of the Board of Directors in 2024 Board of Directors meetings Ten Board meetings (including ad hoc calls) were held in 2024. The average attendance rate at these meetings was 96%. As is the case every year, the Board of Directors was informed in between Board meetings of any developments relevant to the Company, through written communications and through verbal debriefings held on a regular basis between meetings. Non-executive sessions took place at the end of each meeting of the Board of Directors. The main areas of work carried out by the Board of Directors in 2024 are described below: Company’s results, disclosures and operative planning - Review and approval of the 2024 operative planning and guidance; - Regular reviews of the Company’s figures and results, its overall financial situation and capital allocation in the context of the volatile, uncertain, complex and ambiguous world; - Decision to submit dividend and extraordinary dividend proposals at the 2024 Annual General Meeting; - Reviews of forecast results; - Approval of the key disclosures to the market. Corporate Audit, internal controls and risk management - Regular reviews of top company risks and opportunities; - Approval of the Risk Chapter of the 2023 Report of the Board of Directors and Universal Registration Document; - Review of Corporate Audit and internal controls plans and achievements. Audit and relations with statutory auditors - Review of the 2024 quarterly and annual financial statements along with relevant statutory auditors’ reports. Airbus SE/ Report of the Board of Directors 2024 53
General / strategy - Uncertain geopolitical environment: regular monitoring of the situation related to the war between Russia and Ukraine, China/US tensions, the US election as well as political changes in the Company’s Core Countries, including France and Germany. Regular reviews analysing the potential impact of these developments on the Company. - Corporate strategy: Discussions focused on several topics, including a review of mergers and acquisitions (“M&A”) opportunities, along with several major ongoing projects and value creation levers. Additionally, Airbus’ ambition for decarbonising aerospace was discussed, as was the energy strategy and the value of Airbus playing a catalyst role for the development of SAF. - Commercial Aircraft business: monitoring and regular discussions on key topics such as the production ramp-up and the supply chain issues. The overall Commercial Aircraft business strategy was discussed. - Defence and Space: review of the Division’s financial situation and ongoing transformation. Close monitoring of the turnaround effort and business progress at Space Systems. A focus on the strategic orientation of the Air Power business. Regular updates on the status of key programmes, including Eurodrone, the FCAS and A400M. - Helicopters: the Division’s overall strategy was reviewed and confirmed. - Overall financial situation and capital allocation: corporate finance / investor relations and the Company’s hedging strategy were discussed. - Sustainability: discussions focused on the regulatory framework, the evolution of sustainability reporting (including the Corporate Sustainability Reporting Directive (CSRD)), due diligence and supply chain-related obligations (including CSRD, SAF/energy, the human rights roadmap, the substances roadmap, critical materials, social value and community impacts). - Digital: There was a focus on artificial intelligence strategy and governance, and a separate on-site deep dive into Digital Design, Manufacturing and Services (DDMS) was held. - Product safety: a bi-annual review of product safety-related issues was performed, updates on relevant developments were provided at quarterly meetings of the Board of Directors and in between Board meetings, as per the product safety protocol in place. - Ethics and Compliance: there were regular updates on deployment of the ethics and compliance (E&C) programme, culture and significant E&C matters including risk management, allegations and enforcement priorities. Corporate governance - Appointment of non-executive directors: Appointment at the 2024 Annual General Meeting and onboarding of a new non-executive Board member, Dr Feiyu Xu, who is a leading figure in the field of artificial intelligence in Germany. The search for a successor to Claudia Nemat progressed, with a successor to be submitted at the 2025 Annual General Meeting. - Board effectiveness review including improvement action plan update (see Board evaluation section below). - CEO and executive committee members’ succession plan: Succession planning for the Executive Committee continued, with Lars Wagner being selected as the new CEO of the Commercial Aircraft business (to begin, at the latest, from 1 January 2026). Carmen-Maja Rex was appointed Chief Human Resources Officer, effective 1 April 2025. Regular reviews of talent and development plans were undertaken, with “get to know” sessions being held with selected talents. Compensation - CEO and Executive Committee members’ 2023 individual achievements assessments were held and their 2024 roadmaps were defined; - The CEO remuneration policy was reviewed and revised, notably by including environmental, social and governance key performance indicators in the CEO long-term incentive plan, and by rebalancing short-term and Airbus SE/ Report of the Board of Directors 2024 54
long-term components of remuneration in line with market practice. It is intended that the updated policy will be submitted to the 2025 AGM. Annual General Meeting - Preparation of the 2024 Annual General Meeting with the approval of the agenda, draft resolutions and report of the Board of Directors. Preparation of the 2025 Annual General Meeting. Strategy off-site Board meeting, induction programme and other site visits Strategy off-site Board meeting The Board of Directors participates in an annual off-site strategy session to review and refine the Company’s strategic priorities. In addition to discussions that are taking place throughout the year, this dedicated meeting serves as an opportunity for an in-depth review of long-term objectives, industry trends, geopolitical developments and key initiatives aimed at driving sustainable growth. In 2024, this strategy off-site meeting took place in Airbus premises in Sevilla (Spain), where the Board met with the Company’s local senior management and visited the industrial site. One of the focus areas was the future direction of Defence. On top of that, the Board visited the A400M and C295 Final Assembly Lines, during which some of the Company’s senior leaders shared their expertise and passion for the products they manufacture. The strategy off-site fosters robust dialogue and collaboration among Board members, ensuring alignment on strategic direction and oversight of the Company’s roadmap. Induction programme The Company conducts a comprehensive induction programme for newly appointed Board members to ensure a smooth transition into their roles. The programme is designed to provide: (i) an overview of the Company’s operations, governance structure, and strategic priorities; (ii) access to the Company’s Board policies and recent performance reports; and (iii) one-on-one sessions with Executive Committee members and senior talent to understand the current challenges and priorities of the Company. This programme aims at providing new directors with the knowledge and context necessary to contribute effectively to the Board’s deliberations and decision-making processes. Dr Feiyu Xu, as new member of the Board, joined by other members of the Board of Directors (in particular Antony Wood), followed the 2024 Airbus induction programme consisting of various site visits (including the Airbus Commercial Aircraft site in Toulouse (France), the Airbus Helicopters site in Marignane (France) and the Airbus Defence and Space site in Ottobrunn (Germany)). During those visits, presentations were given on business strategy and upcoming challenges by the Company’s Executive Committee members and senior talent. In addition, other site visits took place in 2024, including a visit to the Airbus Broughton site (United Kingdom) and the Airbus Training Center in Miami (United States). Eager to engage with Airbus’ teams globally, in 2024 René Obermann also visited the ZAL Centre for Applied Aviation Research GmbH site in Hamburg (Germany) and the A321 Final Assembly Line in Toulouse (France). In addition to the site visits, René Obermann and several other members of the Board had regular exchanges with Airbus top management leaders (notably to prepare the various awareness sessions organised throughout the year), as well as with key stakeholders. Board evaluation 2024 Principle Every three years, as part of the Board of Directors' continuous review of its performance, a formal evaluation of the functioning of the Board of Directors and its Committees is conducted with the assistance of a third-party expert. Following this evaluation, an improvement action plan is issued to the members of the Board. In the two subsequent years, on an annual basis, the General Counsel and Corporate Secretary (the “General Counsel”), issues a questionnaire focusing on the implementation of the improvement action plan, and more generally on the Board's performance. The outcome of this internal evaluation is then presented and discussed at that year’s December Board meeting. 2024 2024 was the beginning of a new three-year cycle. The review was carried out between July and September by an external advisor and was based on individual interviews with each Director and the General Counsel. A dedicated workshop took Airbus SE/ Report of the Board of Directors 2024 55
place during the October Board meeting during which the external advisor led a discussion on the main findings of the Board effectiveness review, as a result of which a proposed action plan was defined. The effectiveness review covered, in particular, the following themes: the Board dynamics, contribution and composition; the work performed by the Board (including with regard to strategy, risk and control and succession plans); and the use of time and information. The external review confirmed the overall strong performance of the Board, which has been fostered by the capable leadership of the Chairman, who is highly engaged and provides effective guidance to the Board, setting priorities and favouring Board members’ active engagement in open and constructive discussions. Notably, the Board valued the diversity of thought and experience among its members and the atmosphere that favours the onboarding of new members. The Board’s approach is seen as cohesive and collaborative and is underpinned by a trusting working relationship with the CEO. His dynamic leadership, dedication and strategic vision have been instrumental to the Company’s success in 2024. While the Board is performing its duties effectively with valuable contributions from the Board Committees, some challenges were identified, many of which are not unique to the Company. Such challenges include the management of a complex portfolio and time management. In addition, the increasing need for risk oversight will continue to remain a focus area for the Board. It was noted that the development of talent pipelines and, significantly, strengthening of Executive Management succession planning, should remain key areas of focus for 2025. The Board remains committed to continuous improvement, and the implementation of the action plan will be followed up throughout 2025, including through regular discussions during Board and Committee meetings. 2.1.4 Board Committees This section contains information incorporated by reference to address CSRD requirements related to Disclosure Requirement “GOV-1 The role of the administrative, management and supervisory bodies”, paragraphs 22a, and Disclosure Requirement “GOV-2: Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies”, paragraph 26a. The Audit Committee 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 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 focus 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 enterprise risk management system and keeps a strong link to the Ethics, Compliance and Sustainability Committee. For further details in this regard, see Section 3.2 “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 attend all Audit Committee meetings (subject to their recusal from portions of such meetings, as may be appropriate). 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 and the Chief Ethics & Compliance Officer report to the Audit Committee on a regular basis. In 2024, this Committee met six times (including one joint meeting between the Audit Committee and Ethics, Compliance and Sustainability Committee on the CSRD) with an attendance rate of 96.7%. It fully performed all of its duties and discussed all the items described above. In particular, it performed reviews of internal controls, Corporate Audit (including major findings and audit plan for 2024), accounts (i.e. 2023 full year accounts, 2024 Q1, H1 and Q3 accounts, specific provisions and accounting items, operative planning and forecasts), tax related issues, independence of external auditors and disclosure related matters, including the CSRD. In addition, the Committee performed a deep-dive on the Company’s enterprise risk management (“ERM”) processes and regular reviews of top company risks and opportunities. Legal and compliance updates were also presented and discussed in meetings. Airbus SE/ Report of the Board of Directors 2024 56
The Ethics, Compliance and Sustainability Committee Pursuant to the Board Rules, the Ethics, Compliance and Sustainability Committee (ECSC) which is required to meet at least four times a year, assists the Board of Directors in overseeing the Company's culture and commitment to ethical business, integrity and sustainability. The ECSC is empowered to monitor the Company's Ethics & Compliance programme, organisation and framework 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 ECSC 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 ECSC makes recommendations to the Board of Directors and its Committees on all ethics, compliance or sustainability-related matters, including on climate-related disclosures, and is responsible for providing the Audit Committee with any necessary disclosures on issues or alleged ethical and compliance breaches that are financial and accounting-related. The ECSC maintains a reporting line with the Chief Ethics & Compliance Officer (who is requested to provide quarterly reports on its activities) and with the Chief Sustainability Officer and Communications (and member of the Executive Committee), who each regularly attend ECSC meetings. The Chairman of the Audit Committee and the Chairman of the RNGC are members of the ECSC. Unless otherwise decided by the ECSC, the CEO and the Chairman of the Board of Directors attend all of the meetings. From time to time, independent external experts are also invited to attend ECSC meetings. In 2024, the ECSC met five times (including one joint meeting between the Audit Committee and Ethics, Compliance and Sustainability Committee on the CSRD) with an attendance rate of 100%. All of the above-described items were discussed during the meetings and the ECSC fully performed all its duties. The ECSC’s work during the year was evenly split between sustainability topics and compliance topics. On the sustainability side, the ECSC discussed key sustainability roadmaps, including human rights and substances, and provided guidance on a wide variety of climate-related topics, including sustainability-related disclosures, internal strategy related to SBTi Targets and SAF. The ECSC also reviewed the Company’s strategy linked to critical materials sourcing, as well as the Company’s social value and community impact policy and platform. The evolution of sustainability reporting and the regulatory landscape was a further point of attention. The ECSC continued to closely monitor Ethics and Compliance activities as well, with periodic updates concerning the design and operation of the compliance programme, in particular related to anti-corruption, export controls and sanctions adherence. The ECSC monitored treatment of the main allegations and investigations arising through the Company’s whistleblowing alert system, lessons learned and measures undertaken to promote a culture of integrity more broadly across the Company. The Remuneration, Nomination and Governance Committee Pursuant to the Board rules, besides its role described in Sections 2.1.1 “Composition of the Board of Directors” and 2.1.2 “Powers, rules and engagement with shareholders” 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 talents, 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. The Chairman of the Board of Directors and the CEO attend all meetings of the RNGC (subject to their recusal from portions of such meetings, as may be appropriate). 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 remuneration or personal situation. Airbus SE/ Report of the Board of Directors 2024 57
Pursuant to the Board Rules, the Chair of the RNGC automatically fulfils the function of "Lead Independent Director". In this role, the Chair of the RNGC is responsible for (i) replacing the Chairman if unable to attend 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 2024, it met seven times with an attendance rate of 100% . It discussed all of the above-described items during the meetings and it fully performed all its duties. In particular, the Committee worked on strengthening the succession plan for the CEO and Executive Committee, as well as the evolution of the CEO’s remuneration. More generally, the RNGC held regular discussions on the CEO and Executive Committee members’ succession plans, on talent management (development, engagement and retention) and diversity. The RNGC’s work likewise included reviewing the membership of the Board Committees. A revised remuneration policy will be proposed at the 2025 Annual General Meeting, and subject to shareholders’ approval will be published on the Airbus website. Details regarding the policy’s implementation will remain within the Board Report; for further information please refer to Section 2.3.1 “Remuneration Report -Introduction” below. Airbus SE/ Report of the Board of Directors 2024 58
2.2 Executive Committee 2.2.1 Nomination and Composition of the Executive Committee This section contains information incorporated by reference to address CSRD requirements related to Disclosure Requirement “GOV-1 The role of the administrative, management and supervisory bodies”, paragraphs 21, 23. The CEO proposes all the members of the Executive Committee of the Company (the "Executive Committee" or “EC”) 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 of the balance of nationalities of Executive Committee members, reflecting the location of the main industrial centres of the Company (in particular balancing 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. 2.2.2 Role of 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 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 to advise the CEO on his day-to-day role. The ELM also help to ensure that EC members report back on business progress, updates and concerns, and they serve as a forum to address Company-wide topics including corporate matters, and for 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 financial, individual, for programmes or for support functions) and outlining policies to motivate, recruit and retain employees. It is also accountable for regulatory and statutory obligations, as well as policy matters, communications and market disclosures. It is the forum where 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 Commercial Aircraft, Helicopters and Defence and Space businesses, plus the heads of other 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. That said, depending on the topic, the CEO typically asks the responsible EC member to join him at meetings of the Board of Directors to present financial information (CFO), programme/product topics (Division heads), HR matters (Chief Human Resources Officer) or any other topic where a specialist is needed. This approach allows the Board members to get to know the EC members and better equips the Board to make judgements when it comes to decisions about key positions. Airbus SE/ Report of the Board of Directors 2024 59
2.3 Remuneration Report 2.3.1 Introduction This section contains information incorporated by reference to address CSRD requirements related to Disclosure Requirement “GOV-3: Integration of sustainability-related performance in incentive schemes”, paragraph 29. This remuneration report explains how the Company implemented the Remuneration Policy for the Board of Directors in the financial year 2024. As disclosed in the Airbus Report of the Board of Directors 2023, and as part of the Company’s commitment to transparency and accessibility, the Company’s Remuneration Policy is no longer included in the Board Report, rather it is available as a standalone document, posted with the Company’s governance and framework documents on the Company’s website: https://www.airbus.com/en/our-governance/governance-framework-and-documents. The Company’s Remuneration Policy was adopted by the 2020 Annual General Meeting (“AGM”) with effect as of 1 January 2020, and was most recently adopted during the 2024 AGM by a majority of approximately 96% of the votes cast. During the 2024 AGM, the implementation of the policy over 2023 received strong support from shareholders, with an approval level of 94.56%. A summary of the Company’s Remuneration Policy is as follows: Note that the disclosure included in this Section 2.3 constitutes the Remuneration Report (bezoldigingsverslag) for purposes of Section 2:135b of the Dutch Civil Code, and as such will be included as a separate agenda item for an advisory vote at the 2025 AGM. Sections 2.3.2 and 2.3.3 respectively describe how the Company’s Remuneration Policy was implemented in 2024 for the CEO and the Non-Executive Members of the Board of Directors. The RNGC, composed solely of independent non-executive members of the Board of Directors, is pleased to present this Remuneration Report. The cumulated remuneration of all Executive Committee Members is presented in the "Notes to the IFRS Consolidated Financial Statements – Note 33. Remuneration". To the extent that any information presented in Note 33 relates to matters referred to Articles 2:383c through 2:383e of the Dutch Civil Code and is not described in paragraph 2.3.2, such information is incorporated by reference into this Remuneration Report in order to satisfy the requirements of the Dutch Civil Code. Airbus SE/ Report of the Board of Directors 2024 60
2.3.2 Implementation of the Remuneration Policy in 2024: CEO This section contains information incorporated by reference to address CSRD requirements related to Disclosure Requirement “GOV-3: Integration of sustainability-related performance in incentive schemes”, paragraph 29. This section describes how the Remuneration Policy was implemented in 2024 with respect to the CEO (Mr Guillaume Faury). In line with the expectations of the Company's Remuneration Nomination and Governance Committee (“RNGC”) and the Board of Directors, the philosophy of the Remuneration Policy is to provide remuneration that will serve to attract, retain and motivate high-calibre executives, while taking into account best practices as well as employee and shareholder considerations. In practice, the Remuneration Policy should help the Company to achieve its strategic and operational objectives, and foster the Company’s aim of delivering sustainable returns, consistent with the Company's identity, mission and values. Before setting the targets to be proposed for adoption by the Board of Directors, the RNGC analyses scenarios with respect to the potential targets, and considers the financial and other outcomes that would result from meeting various performance levels, including achieving maximum performance thresholds, and how the level and structure of executive remuneration would be affected, together with the potential risks for the Company's business that these outcomes could present. The Board of Directors further considers these aspects, based on the RNGC’s recommendation. 1- Benchmarking Upon the request of the RNGC, a benchmarking exercise was performed in July 2024 by an independent third party, following an approach consistent with that applied for the prior benchmarking exercise (performed in 2023). The relevant peer group was comprised of 55 companies 1 selected from the CAC40 in France, the DAX 40 in Germany, the FTSE 100 in the UK, the IBEX 35 in Spain and the Dow 30 in the US, having comparable economic indicators such as revenues, number of employees and market capitalisation. The benchmarking selection took the Company’s geographical imprint (operations and employees) into consideration, and offered perspective on compensation practices from direct and indirect competitors. US companies were included in this peer group, particularly as the Company has direct competitors in the US, and since the Company operates in the US, it has to compete with US companies to recruit senior executive talent. That said, considering the unique pay practices prevalent in the US, and since Airbus executives are mainly based in Europe, US companies were not weighted as heavily as other jurisdictions. The data was compounded using the following weighting: France 30% Germany 30%, Spain 15%, the United Kingdom 15% and the USA 10%. Financial institutions were excluded from the peer group. The updated benchmark shows that globally the Total Target Cash (Base Salary + Variable Remuneration) of the peer group increased by around 7%, while the Total Direct Compensation (Base Salary + Variable Remuneration + LTIP) of the peer group increased by around 10%, versus the prior benchmark. The comparison of the remuneration of the CEO versus the market range is as follows: the Total Target Cash of the CEO (€ 2,970,000) is below the median market range of the peer group (€ 3,366,000) by around 12%; the Total Direct Compensation of the CEO (€ 4,455,000) is below the median level of the peer group (€7,365,000) by around 40%; while considering the peer groups, irrespective of the KPI selected (turn over, market capitalisation, number of employees), Airbus belongs to the companies in the third quartile of the peer group. 1 Peer group: France : Air Liquide, Danone, Dassault Systèmes, Engie, Safran SA, Saint-Gobain, Sanofi, Schneider Electric, Stellantis, Thales, Total, Vinci Germany: BASF, Bayer, BMW, Continental, Deutsche Post, Deutsche Telekom, E.ON, Henkel, Mercedes, SAP, Siemens, Volkswagen Spain: Aena, Amadeus IT, Cellnex, Endesa, Ferrovial, Iberdrola, Inditex, Naturgy, Repsol, Telefónica UK: Bae Systems, BAT, BP, Diageo, GSK, Rio Tinto, Rolls Royce, Shell, Tesco, Unilever, Vodafone US: 3M; Boeing, Caterpillar, Fedex, GE, General Dynamics, IBM, Lockheed, Northrop Grumman, Raytheon Airbus SE/ Report of the Board of Directors 2024 61
In addition to external benchmarks, the RNGC also considers the remuneration of employees through the review of the evolution of the pay ratio (see below under “-10 - Pay ratio”). 2- Base Salary The 2024 CEO Base Salary level on a full year basis is unchanged compared to 2022 and amounts to € 1,485,000 (still below the 2019 Base Salary of the former CEO: € 1,500,000). 3- Variable Remuneration As stipulated in the Remuneration Policy, the CEO's Annual Variable Remuneration (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 2024, the VR of the CEO amounts to an aggregate of € 1,581,525 composed of €690,525 (93%) for the Common Collective Component and € 891,000 (120%) for the Individual Component. Airbus SE/ Report of the Board of Directors 2024 62
Performance achievement – Common Collective Component According to the policy applicable for the financial year 2024, the consolidated level of achievement of the Common Collective Component for the Company has been assessed at 93% by the RNGC and the Board of Directors in February 2025, against the target levels validated at the beginning of 2024 and that include detailed vesting scales for each criteria 2 . The overall achievement level results from: a 0% achievement of the EBIT target, a 144% achievement of the Free Cash Flow 3 target and a 177.5% achievement of the Sustainability targets, as further described below. These criteria and their assessment apply to all Executives having a Common Collective Component in their variable remuneration, which since 2022 has been extended to all Senior Managers. Currently approximately 5,150 employees receive a collective bonus based on the achievements mentioned above. 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 (“CO2e”), each weighted for 10% of the Common Collective Performance. In 2024, the rolling FR1 decreased by 31% in Commercial Aircraft, increased by 11% in Airbus Helicopters and decreased by 49% in Airbus Defence and Space, leading to a consolidated achievement of 155%. For further details, please refer to Section 6.3.2.7 "Sustainability Statement -Health and Safety”. In 2024, the CO2e decreased by more than 11% (reduction of circa 68 ktons), which is above the targeted reduction of 3%, leading to an achievement of 200%. For further details, please refer to Section 6.2.2 “Sustainability Statement -ESRS E1 - Climate change”. For 2025, the Board of Directors decided to maintain the Sustainability component composed of FR1 for 50% and CO2 avoidance for 50% and to set the following targets: FR1: a reduction of the rolling FR1 by 15% for Commercial Aircraft and Airbus Helicopters (at the end of 2024, the rolling FR1 at Commercial Aircraft and Airbus Helicopters was above 1) and a stabilisation for Airbus Defence and Space (at the end of 2024, the rolling FR1 at Defence and Space was significantly below 1) versus the actual 2024 rolling FR1; CO2e: the annual targets are set in line with the Company’s 2030 roadmap; they refer to a material sub-scope of its operations on which the Company can have a more direct control and influence. The CO2e for 2025 was set in absolute value at 508.5 ktons, which represents a reduction of 3% compared to 2024. For further details, please refer to Section 6.2.2 “Sustainability Statement -ESRS E1 - Climate change”. 3 In 2024, Airbus is using Free Cash Flow before customer financing and no longer Free Cash Flow before M&A and customer financing 2 While the Company is paying all due attention to investors' feedback, for sensitivity reasons, specific information on vesting scale (threshold, target, maximum) is not disclosed. Airbus SE/ Report of the Board of Directors 2024 63
Performance achievement – Individual Component The level of achievement of the Individual Component of the VR of the CEO is assessed by the RNGC and the Board of Directors against the targets set at the beginning of the year. For 2024, based on the review conducted by the RNGC and the Board of Directors in February 2025, the overall achievement level has been assessed at 120%. Overview on Individual Component achievements: Individual Component Weight Achievement 1. Outcome element 90% Top Company objectives (communicated to all employees of the Company and shared with the Executives and Managers of the Company) 30% 107% Individual objectives (how the CEO contributes to the success of the Company) 60% 113% 2. Behaviour element 10% 200% 2024 CEO’s Individual Component performance achievement 120% The Individual Component has been assessed according to two sets of complementary elements: 1. Outcome element The outcome element is composed of: - The Top Company objectives: accounting for 30% of the total CEO Individual Component, which are shared with Executives and Managers of the Company to promote collective alignment; Since 2023 to create a shared spirit of collective engagement and solidarity across the Commercial Aircraft business towards, the ultimate operational target consists of reaching the delivery guidance, hence increasing the Company’s productivity and efficiency. It translated into an individual objective shared by around 6,000 key contributors to the Commercial Aircraft business. Despite a complex operational environment, 766 aircraft were delivered (versus the guidance update of around 770) in 2024. - The CEO’s Individual objectives: accounting for 60% of the total Individual Component, they encompass various aspects of what the CEO can do to contribute to the success of the Company, such as specific business results he achieves, projects he drives and processes he improves. As disclosed in the 2023 Report of the Board of Directors, published in February 2024, the individual priorities of the CEO for 2024 comprised: 1. Implement strategy, including but not limited to portfolio optimisation for value creation; 2. Execute the product roadmap balancing short term and long term goals; 3. Improve our geopolitical resilience in a more fragmented world; Airbus SE/ Report of the Board of Directors 2024 64
4. Be the catalyst for future European aerospace cooperation and Protect and deliver major defence programmes milestones; 5. Drive organisational change and develop the leadership team for the future; 6. Enable execution on our Digital and Decarbonisation roadmap; 7. Oversee and ensure the Commercial Aircraft ramp up and guidance. Overview of the 2024 CEO’s Individual objectives achievement: 2024 CEO’s Individual objectives Weight Achievement Strategy implementation 10% The Board after reviewing the following factors in detail considered that the strategy implementation objective was achieved: The CEO conducted a comprehensive portfolio analysis, including a review of the minority interests, some of which were implemented in the course of the year, presented to the Board of Directors the Mergers and Acquisitions roadmap. Cooperation topics have been identified with partners of the Company last year and strategic partnership agreements have been entered into, for example with TotalEnergies or LanzaJet in Sustainable Aviation Fuel, pursuant to clear investment criteria defined and endorsed by the Board notably with respect to energy. 100% Product roadmap execution 10% The Board after reviewing the following factors in detail considered that the product roadmap execution objective was overachieved: The A321XLR, the world’s longest range single aisle aircraft, entered into service last year with the first delivery to Iberia in October 2024, following its successful certification for the CFM powered version. The operating range flexibility of this model provides resilience when facing airspace closures and longer flight routings. This demonstrates the continuous investments made to enhance existing technologies and search for incremental efficiency gains for the Company’s current products. Airbus Helicopters secured a comprehensive upgrade programme for the NH90 in 2024 with the signature of the block 1 upgrade with NAHEMA (Nato Helicopter Management Agency). The groundwork for the European Next Generation Rotorcraft has been laid through dedicated concept studies. The Racer, a high-speed helicopter demonstrator that aims to leverage increased speed to deliver added value for citizens and operators, made its first flight and reached its fast cruise speed target of 407 km/h in 2024. The simple and proven aerodynamic formula seeks to achieve the best trade-off between speed, cost-efficiency and mission performance. Despite a challenging year for the Space business, several satellites were successfully launched, for example the Sentinel-2C, built by the Company as part of the EU Copernicus Earth monitoring programme and the EarthCARE which was developed, built and tested with involvement of experts from 15 European countries as well as Japan and Canada, under the leadership of the Company. In June 2024, Airbus Defence & Space presented its new Wingman concept, a fighter-type drone that will be commanded by a pilot in a current combat aircraft such as the Eurofighter. Airbus Defence and Space has been awarded a contract by Eutelsat to build the extension of its OneWeb Low Earth Orbit constellation. Under the contract signed between the two companies, Airbus will build the first batches of the extension, totalling 100 satellites, with delivery targeted from the end of 2026. The new satellites will enable key technology upgrades and notably 5G on-ground integration. 120% Airbus SE/ Report of the Board of Directors 2024 65
Geopolitical resilience improvement 10% The Board after reviewing the following factors in detail considered that the geopolitical resilience objective was overachieved: Continued resilience ensured by a strong order intake: 2024 has been a record year for order intake at both Airbus Helicopters (with 455 gross orders from 182 customers in 42 countries) and Airbus Defence and Space. Commercial Aircraft received 878 gross new orders in 2024; the Company’s leading position in the single aisle market was complemented by the momentum for the widebody orderbook. In this respect, an order was received from Riyadh Air for 60 A321neo Family aircraft, welcoming Riyadh Air as a new customer and partner to the Company > And a diversified footprint: Airbus assembled its 500th aircraft in Mobile, USA, and its 700th A320 inTianjin, China in 2024. The Company’s footprint in India was further developed in 2024 which contributes to the strengthening of India’s aerospace and defence industry. A joint venture was entered into with Air India to launch a world-class pilot training centre in Gurugram. In addition, Airbus inaugurated its new India and South Asia Headquarters in Delhi as part of its development of a comprehensive aerospace ecosystem across all dimensions in this region. Furthermore, Tata Advanced Systems and the Company inaugurated the C295 FAL (Final Assembly Line) in Vadodara, expanding the C295 Make In India programme. > Continuous business impact analyses, including the assessment of supply chain risks have been carried out with respect to major armed conflicts. The Company has also adequately anticipated and reacted to sanctions and export restrictions in a challenging geopolitical environment. 110% Aerospace cooperation, defence milestones 10% The Board after reviewing the following factors in detail considered that the aerospace cooperation and defence milestones objective was overachieved: The CEO shows commitment to increasing aerospace cooperation in his position as President and Chairman of the Board of Directors of the European Aerospace, Security and Defence Industries and that of President of the Groupement des Industries Françaises de l’Aéronautique et du Spatial. Two strategic contracts to further enhance the A400M capabilities were entered into with the Organisation for Joint Armament Cooperation (OCCAR) in 2024. Significant orders were placed for Eurofighter aircraft in 2024, with an order of 25 aircraft for Spain and 24 for Italy. The Unmanned Aerial Systems (UAS) portfolio of Airbus Defence and Space and Helicopters has continued to grow. The Company has focused on the development of crewed-uncrewed teaming, where crewed helicopters and Uncrewed Aerial Systems fly simultaneously whilst connected to a single network. The CEO presented to the Board contemplated strategic cooperation with a focus on Defence and Space. These achievements reflect Airbus’ dedication to fostering international defense cooperation, advancing technological innovation, and supporting the defense needs of its partners worldwide. 120% Organisational change, leadership development 5% The Board after reviewing the following factors in detail considered that the organisation change and leadership development objective was overachieved: After the appointment of a dedicated Commercial Aircraft business management team the new organisation is well established and is focusing on simplification and 150% Airbus SE/ Report of the Board of Directors 2024 66
optimisation as production ramps up. On 1 January 2024, Airbus Defence and Space implemented a new, simplified organisational structure which consists of three business lines: Air Power, Space Systems and Connected Intelligence. A follow-up plan to further adapt its organisation and workforce has been worked on to enhance competitiveness. In March 2024, a new CEO and CFO of Space Systems were appointed. The CEO further developed the Company’s strategy to address the current volatile geopolitical landscape and seize worldwide business opportunities in creating dedicated Strategy and International departments reporting directly to him. The CEO secured succession plans for key Executive Committee positions, in particular: Lars Wagner will join the Company as CEO of the Commercial Aircraft business (from 1 January 2026) and Carmen-Maja Rex was appointed as the Chief Human Resources Officer, effective from 1 April 2025. These appointments demonstrate the CEO’s ability to attract external talents to complement his leadership team. At the CEO’s initiative, a collective feedback exercise involving the Executive Committee members and a third party advisor has been organised in 2024 to further develop the team’s dynamics, assess the ways of working and reinforce the effectiveness of the organisation. Execution Digital & Decarbonisation roadmap 5% The Board after reviewing the following factors in detail considered that the execution of the digital and decarbonisation roadmap objective was overachieved: Digital: After the Final Assembly Lines were adjusted to produce the A321neo in 2023, the first A321neo was assembled in 2024 using a complete suite of DDMS (Digital Design, Manufacturing and Services) solutions. In 2024, Defence and Space finalised the acquisition of Infodas, a German company that provides cybersecurity and IT solutions to the public sector, strengthening the Company’s cybersecurity portfolio. Artificial Intelligence strategy is high on the CEO’s agenda and has been the subject of specific discussions with the Board in 2024. Decarbonisation: The Company increased the use of Sustainable Aviation Fuels (SAF) for its own development test flights and training to 18% in 2024. In July 2024, the Company and Airports Council International World association signed a cooperation agreement to support the industry’s efforts to reduce the environmental impact of aviation. This partnership leverages the strengths of the world’s leading aircraft manufacturer and the largest and most important international association of airports to make significant progress in both decarbonising aviation and mitigating aircraft noise impact. This alliance will address key areas including SAF, hydrogen technologies, advanced air mobility, operations efficiency, and aircraft noise management practices. The Company founded the Hydrogen Hubs at Airports network in 2024, a collaborative initiative where the Company is joining forces with airlines, airports, industry partners and technology specialists to answer primary questions regarding the use of hydrogen. 110% Commercial Aircraft ramp-up and guidance 10% The Board after reviewing the following factors in detail considered that the Commercial Aircraft ramp up and guidance objective was achieved: The Company has delivered 766 commercial aircraft to 86 customers in 2024 100% Airbus SE/ Report of the Board of Directors 2024 67
(compared to 735 deliveries in 2023, representing a 4% increase of deliveries in 2024). This result is in line with the updated delivery guidance set at around 770 aircraft. Last year was characterised by geopolitical tensions and a challenging supply chain. These deliveries have been made despite the complex and fast-changing operating environment in 2024. The Company continues to ramp up to serve the strong demand for its commercial aircraft product portfolio and deliver on its highest order book in the Company’s history. The Company entered into a binding term sheet agreement with Spirit AeroSystems in relation to a potential acquisition of major activities related to Airbus in order to ensure the stability of supply for some of its key commercial aircraft programmes. The Company also contributed to the launch of Ace Aéro Partenaires II, a three digit millions investment fund dedicated to the support of the supply chain. Total 2024 CEO’s Individual objectives 60% 113% Airbus SE/ Report of the Board of Directors 2024 68
2. Behaviour element The CEO behavioural element accounts for 10% of the total Individual Component and refers to the way results have been achieved, which is critical for the Company’s long-term success. This element effectively comprises how the CEO and the Board of Directors work as a team and how the CEO leads the Executive Committee, as well as the CEO’s communication skills, appetite for innovation and capacity for driving change. With his extensive operational knowledge, his global outlook and strong personal values, the CEO has demonstrated throughout the year an exceptionally resilient mind-set and personal skills to successfully lead the Company, despite the various challenges faced. The CEO stood firm on critical issues during a very challenging year. The CEO has been assessed by the Board as being a role model in many aspects including aviation safety and has been recognised as an outstanding ethical compass for the Company. 2025 Overview on CEO Individual Component: Individual Component Weight Top Company objectives including Ethics & Compliance (communicated to all employees of the Company and shared with the Executives and Managers of the Company) 40% CEO priorities (how the CEO contributes to the success of the Company) 60% Total 100% For the year 2025, the Board has set the following priorities for the CEO: 2025 CEO’s Individual objectives Weight 1. Ensure the ramp up on all programmes for Commercial Aircraft, Helicopters and Defence & Space 10% 2. Progress on the digital and decarbonisation roadmap, including: act as a catalyst for the SAF & hydrogen eco-systems, continue the progress on the Airbus internal roadmap and on Airbus digital roadmap 5% 3. Continue to drive future European aerospace cooperation and ensure a successful transformation and restructuring of the Defence and Space business 15% 4. Further develop and enhance our resilience to adapt and navigate through the fast changing and disruptive geopolitical landscape 10% Airbus SE/ Report of the Board of Directors 2024 69
5. Successfully execute the product roadmap, including the delivery on key programmes milestones such as: > Airbus Commercial Aircraft programmes: A350F and A321XLR > Airbus Defence and Space programmes: A400M, FCAS, Eurodrone, OneSat, Zephyr > Airbus Helicopters: Tiger MK3, HIL and future light-twin engine programmes 10% 6. Further develop Airbus leadership team, including coaching and development of top executives, ensure mapping of skills and competence needed for critical positions 10% Total 60% 4- Long-Term Incentive Plan 2024 Grant In 2024, under the Company’s Long-Term Incentive (LTI) plan, the Board decided to grant only Performance Shares, and no Performance Units. This applies to the CEO as well as to all beneficiaries of LTI. The value of the Performance Share award to the CEO has been capped at 100% of his Base Salary, in line with the applicable Remuneration Policy. It represents one third of the CEO's target Total Direct Compensation and the vesting of the Performance Shares will be subject to the performance measures (average EPS (75%) and cumulative FCF (25%)) described below under “-5 - Share ownership”). The table below gives an overview of the Performance Shares granted to the CEO in 2024 pursuant to the LTI plan: Share plan: number of Performance Shares Granted in 2024 Vesting dates Guillaume Faury 10,839 Vesting schedule is made up of 1 tranche expected in May 2028 Vesting values in 2024 In 2024, the CEO received both cash payments and vested shares in connection with the vesting of 2019 and 2020 LTI awards: Cash: the total cash payment to the CEO amounted to € 1,065,916 in 2024. Shares: in connection with the 2020 LTI award, the CEO received 14,880 vested shares on 6 May 2024. Airbus SE/ Report of the Board of Directors 2024 70
LTIP overview: granting and vesting Date of grants Grant Type Number Share price at grant Value at grant date Performance achievement Units with performance achievement Dates of vesting Share value at vesting dates(*) 2019 Unit 5,530 € 122.06 € 674,992 50% 2,766 2 vestings in 2023 - 2024 11 May 2023 € 125.20 6 May 2024 € 160.68 2019 Share 5,530 € 122.06 € 674,992 50% 2,765 1 vesting in 2023 11 May 2023 € 122.04 2020 Unit 9,920 € 68.04 € 674,957 150% 14,880 2 vestings in 2024 – 2025 6 May 2024 € 136.08 (**) 2020 Share 9,920 € 68.04 € 674,957 150% 14,880 1 vesting in 2024 6 May 2024 € 154.62 2021 Share 12,121 €111.38 € 1,350,037 96% 11,636 1 vesting in 2025 Not yet known 2022 Share 14,115 € 105.20 € 1,484,898 Not yet known Not yet known 1 vesting in 2026 Not yet known 2023 Share 11,619 € 127,81 € 1,485,024 Not yet known Not yet known 1 vesting in 2027 Not yet known 2024 Share 10,839 € 137.00 € 1,484,943 Not yet known Not yet known 1 vesting in 2028 Not yet known (*) Vesting will occur according to the respective rules and regulations of each plan. (**) Both caps on share price and value compared to the initial grant value have been applied as per the rules and regulation of the 2020 LTI plan. 100% of units and shares granted are conditional to the achievement of performance conditions. Performance Conditions of 2021 LTI plan: The performance conditions for 2021 LTI plan 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 2022, 2023 and 2024 fiscal years, with the three-year Ave EPS target for an allocation of 100% equal to € 5.35; and 25% of cumulative FCF ("Cum FCF"): determined on a linear basis depending on three-year Cum FCF for the 2022, 2023 and 2024 fiscal years, with the three-year Cum FCF target for an allocation of 100% equal to € 11,821 million. Review of achievement of performance conditions: In February 2025, the Board of Directors noted the achievement of the performance conditions of the 2021 plan, i.e. for the 2022, 2023 and 2024 fiscal years. The three-year average EPS was € 5.19 and the three-year Cum FCF was € 12,007 million. 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 Airbus SE/ Report of the Board of Directors 2024 71
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 2019 Ave EPS Cum FCF 11,060 € 7.72 € 13,150m € 3.10 € 4,320m 50% 50% 50% 5,530 2020 Ave EPS Cum FCF 19,840 € 2.52 € 1,951m € 5.19 € 11,720m 150% 150% 150% (1) 29,760 2021 Ave EPS Cum FCF 12,121 € 5.35 € 11,821m € 5.19 € 12,007m 93% 103% 96% 11,636 (1) The overperformance of the 2020 plan is due to a faster than expected recovery from the COVID 19 pandemic. As a reminder, the 2020 plan was granted in October 2020 when the impact of the pandemic for the years 2021, 2022 and 2023 was still extremely difficult to predict. Based on the above, the ratio between the fixed part of the remuneration of the CEO in 2024 (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 2024 paid-out in 2025 and LTIP vesting in 2024) is 31% / 69% (2023: 47% / 53%). Airbus SE/ Report of the Board of Directors 2024 72
5- Share ownership The CEO owned 44,244 Airbus SE shares on 31 December 2024 which represents a value higher than 200% of his Base Salary, in compliance with the Share ownership guideline (see the Company’s Remuneration Policy under “B. 6 - Share ownership guideline”). Please refer to the AFM website www.afm.nl for any further information related to the transactions of the CEO. 6- Employee Share Ownership Plan (ESOP) In March 2024, 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 50%. The total offering was up to 3.5 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 2024, a dedicated UK tax advantageous Share Incentive Plan ("SIP") was also deployed in March 2024. Although the CEO was eligible for the plan, he did not participate in the ESOP 2024 plan, leaving more shares for employees in order to favour the development of employee shareholding. 7- Benefits Costs of benefits provided through applicable mandatory collective and social security plans are accounted for among social charges (please refer to Note 33 to the IFRS Consolidated Financial Statements for further details). The monetary value of other benefits provided to the CEO in 2024 amounts to € 35,292 (vs € 34,969 in 2023). 8- 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. 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 2024, the defined benefit obligation related to the frozen defined benefit commitment amounted to € 4,172,786 (2023: € 3,875,518). This obligation has been accrued in the 2024 Consolidated Financial Statements and will be updated annually up to the retirement date of the CEO considering additional service cost and future changes on economic assumptions or other factors like salary increase. For the fiscal year 2024, the cost related to the CEO’s pension rights accrued under Company’s plans during the year represented an expense of € 1,121,057 (2023: net profit of €1,049,054 composed of an expense of € 1,404,951 and the effect of the French pension reform leading to a release of provision of € 2,454,006). 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 33 to the IFRS Consolidated Financial Statements for further details). Airbus SE/ Report of the Board of Directors 2024 73
9- Clawback The Board of Directors did not apply any clawback in 2024. 10- 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 employees, which is derived from the number of employees and the personnel expenses disclosed in the Financial Statements (see Notes 28 and 29 to the IFRS Consolidated Financial Statements). The ratio between the compensation of the CEO (including Base Salary, Variable Remuneration, social charges, benefits, pension contributions and LTI grant face value) and the average compensation of full-time equivalent employees for the fiscal year to which this report relates is approximately 64 (2023: 67 * , 2022: 74; 2021: 56; 2020: 64; 2019: 64). * This figure corrects the ratio (70) erroneously disclosed in the Airbus Report of the Board of Directors 2023. 11- Severance No payment has been made to the CEO in 2024 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 2 financial years preceding the financial year during which the termination occurs have been assessed by the Board of Directors at 100% or more. 12- 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 2024 2023 2022 2021 2020 I. CEO's direct cash compensation Annual Base Salary (k€) 1,485 1,485 1,485 1,350 1,350 VR (k€) (1) 1,916 2,042 2,241 1,404 1,553 Total 3,401 3,527 3,726 2,754 2,903 Annual Variation -3.6% -5.3% +35% -5.1% -21.8% II. Long Term Incentive Plan (k€) (2) 1,485 1,485 1,485 1,350 1,350 III. Company Performance EBIT Adjusted (m€) 5,354 5,838 5,627 4,865 1,706 Annual Variation -8% +4% +16% +185% -75% FCF before M&A and customer financing (m€) - (former definition up to 2023) (3) 4,044 4,386 4,680 3,515 (6,935) Annual variation -8% -8% +33% n.a -298% Airbus SE/ Report of the Board of Directors 2024 74
FCF before customer financing (m€) - (new definition from 2024) (3) 4,463 4,532 4,816 3,707 (6,799) Annual variation -2% -6% +30% n.a. n.a. IV. Employee Compensation (k€) (4) 82.1 80.2 79.3 71.6 72.0 Annual Variation +2.4% +1.1% +10.8% -0.6% -4.1% (1) 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. (2) Face value of LTI granted in the financial year. (3) Change in definition from 2024, using Free Cash Flow “before customer financing” and no longer Free Cash Flow “before M&A and customer financing” (4) Average compensation of full-time equivalent permanent employees from France, Germany, Spain and the UK 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 2023 financial year, the amount presented has been adjusted based on final figures. For the 2024 financial year, the amount presented is still an estimate and will be adjusted next year. 2.3.3 Implementation of the Remuneration Policy in 2024: Non-Executive Directors This section describes how the Remuneration Policy was implemented in 2024 with respect to the Non-Executive Directors. In line with the Remuneration Policy, its implementation aims at ensuring fair compensation and protecting the independence of the Board Members. Their remuneration should be commensurate to the time spent and the responsibilities of their role on the Board of Directors. The CEO is the only Member of the Board of Directors who is not entitled to any Board or Committee fee. In 2024, Non-Executive Members of the Board of Directors were entitled to the fees described below. The applicable attendance fees for Board and Committee meetings remain unchanged as respectively set in 2016 and 2019. The fixed fees were based on the review of the Board remuneration undertaken in 2022 with the support of an independent consultant to align the Board remuneration with market practice, incentivise attendance and recognise the strategic role played by the Board of Directors in the Company's developments. A benchmarking exercise was performed in September 2022 by an independent advisor, Egon Zehnder, at the RNGC request, based on a global peer group of 80 large-scale corporations 4 , where the Company’s market capitalisation and revenues fall within the third quartile. 4 Peer group: 3M, A.P. Moller - Maersk A/S , AB Volvo, ABB, Accenture, Ahold Delhaize, Air Liquide, Aon, Bae System, Banco Bilbao, BASF, BAT, Bayer, BMW, Bombardier, BP, Caterpillar, Chevron, Continental, Credit Suisse, Daimler, Danone, Dassault Systèmes, Deutsche Post, Deutsche Telekom, DIAGEO, E.ON, Endesa, Engie, Exxon Mobil Corp, Fedex, Ferrovial, Ford Motor, Fortum Oyj, GE, General Dynamics Corporation, GSK, Heineken, Henkel, Honeywell International Inc., Iberdrola, IBM, INDITEX, ING, Koninklijke DSM NV, Leonardo, Lockheed Martin Corporation, Mckesson Corp, MTU Aero Engines AG, Naturgy, Nestle, Northrop Grumman Corporation, Novartis, NXP Semiconductors, Raytheon Technologies Corporation, Renault, Repsol, Rio Tinto, Roche, Rolls Royce, Safran, Saint-Gobain, Sanofi, Santander, SAP, Schneider Electric, SHELL, Siemens, Sodexo, Stellantis, Telefonica, Tesco, Thales, The Boeing Company, Total, Unilever, Unitedhealth Group, Vinci, Vodafone, Volkswagen. Airbus SE/ Report of the Board of Directors 2024 75
The group of companies considered in the benchmark analysis is broader than the peer group used to position the CEO’s compensation. This divergence is justified considering that the purpose of this analysis was to ensure that Airbus’ non-executive pay practices remain suitable and competitive on a global scale, enabling the attraction of specific and diverse expertise beyond its industry and geographical footprint, as illustrated by the current Board composition. Furthermore, in view of (i) non-executive directors and executive directors having distinct profiles, (ii) non-executive directors' and executive directors' pay not being directly comparable, and (iii) non-executive director pay practices varying significantly between countries, the expanded scope in this specific exercise is justified. However, and to remain consistent with the Company’s approach and profile, approximately 88% of the companies considered are either registered in the Netherlands or in Airbus’ core countries (France, Germany, Spain and UK). 1- Board fees: Fixed fee for membership of the Board of Directors (€ / year): Chair of the Board: 500,000 Member of the Board: 120,000 Attendance fees (€ / Board meeting): Chair: 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. 2- Committee fees: Fixed fee for membership of a Committee (€ / year): Chair: 60,000 Member of a Committee: 30,000 Attendance fee for membership of a Committee, applicable to chair and members € / 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. Airbus SE/ Report of the Board of Directors 2024 76
The remuneration of the Non-Executive Members of the Board of Directors was as follows: 2024 2023 2022 2021 2020 (In €) Fixum (1) Attendance Fees (2) Total Fixum (1) Attendance Fees (2) Total Total Total Total Non-Executive Board Members René Obermann 500,000 120,000 620,000 500,000 (3) 105,000 605,000 (3) 360,000 300,000 193,988 Victor Chu 150,000 66,500 216,500 150,000 62,000 212,000 166,000 143,000 178,000 Jean-Pierre Clamadieu 210,000 82,000 292,000 210,000 76,000 286,000 236,500 197,500 217,087 Mark Dunkerley 180,000 110,000 290,000 180,000 94,000 274,000 236,420 166,000 118,879 Stephan Gemkow 150,000 81,000 231,000 150,000 76,000 226,000 208,000 163,000 128,879 Catherine Guillouard 210,000 86,000 296,000 210,000 63,000 273,000 238,000 197,500 223,000 Amparo Moraleda 210,000 82,000 292,000 210,000 69,500 279,500 243,000 184,500 215,000 Claudia Nemat 150,000 67,500 217,500 150,000 56,500 206,500 176,500 156,500 180,000 Irene Rummelhoff 150,000 78,000 228,000 150,000 55,000 205,000 147,100 - - Antony Wood (4) 150,000 86,000 236,000 141,050 70,000 211,050 13,913 - - Dr Fei Yu Xu (5) 108,791 60,000 168,791 - - - - - - Former Non-Executive Board Members Ralph D. Crosby, Jr. (6) 75,000 15,000 90,000 150,000 70,000 220,000 200,000 161,000 183,000 Lord Drayson (7) - - - 48,811 169,500 200,000 Carlos Tavares (8) - - - 27,541 125,000 150,000 Denis Ranque (9) - 96,731 Hermann-Josef Lamberti (10) - 70,274 Total 2,243,791 934,000 3,177,791 2,201,050 797,000 2,998,050 2,301,785 1,963,500 (11) 2,154,838 (1) Fixum includes a base fee for Board membership and the relevant Committee membership as the case may be (Audit Committee, Remuneration, Nomination and Governance Committee ("RNGC") and Ethics, Compliance and Sustainability Committee ("ECSC"). The fixum for the year 2024 was paid 50% in January 2024 and 50% in July 2024. The fixum for the year 2023 was paid 50% in January 2023 and 50% in July 2023. (2) 2024 attendance fees include the Board attendance fees and the fees in relation to the relevant Committee (Audit Committee, RNGC and ECSC) meetings. The Board attendance fees related to the first semester 2024 were paid in July 2024, those related to the second semester 2024 were paid in January 2025. The Committees’ attendance fees related to the full year 2024 were paid in January 2025. (3) Amount before donation to several charitable organisations of the portion exceeding the fixed remuneration received in 2022, as described in the 2023 Board Report. (4) Member of the Audit Committee since 19 April 2023. (5) Member of the Board of Directors and Audit Committee since 10 April 2024. (6) Member of the Board and ECSC until 10 April 2024. (7) Member of the Board of Directors, the RNGC and the ECSC until 12 April 2022. (8) Member of the Board of Directors until 12 April 2022. (9) Chairman of the Board of Directors and of the former Ethics & Compliance Committee until 16 April 2020. (10) Member of the Board of Directors and the Audit Committee until 16 April 2020. (11) In the Airbus Report of the Board of Directors 2023 this figure reflected a minor arithmetic error, which has been corrected. Airbus SE/ Report of the Board of Directors 2024 77
2.4 Dutch corporate governance code In accordance with Dutch law and with the provisions of the Dutch Code, which provides (non-obligatory) guidance for effective collaboration and management, the Company either applies the provisions of the Dutch Code or, if applicable, explains and gives sound reasons for deviations from these provisions. The Dutch Code was revised in 2022, with its updated recommendations applying to financial years starting on or after 1 January 2023. The Company welcomed the updates to the Dutch Code and continues supporting its emphasis on topics such as sustainable long-term value creation and the importance of culture (in particular, diversity and inclusion). While the Company, in its continuous efforts to adhere to the highest standards, applies nearly all 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, please refer to: https://www.mccg.nl/. For the financial year 2024, and in respect of compliance with the Dutch Code, the Company states the following: Securities in the Company as long-term investment Best practice provision 3.3.3 of the Dutch Code recommends that non-Executive Directors who hold securities in the Company should keep them as a long-term investment. With this not being a strict legal requirement, it is at the discretion of the non-Executive Directors who own shares to decide whether to keep them as a long-term investment; the Company imposes no such requirement. Best practice provision 3.1.2 vi of the Dutch Code recommends that any shares awarded to the Chief Executive Officer (the "CEO") should be held for at least five years after they are awarded. The rules applicable within the Company do not impose a minimum five year holding period for such awarded shares; however, the Company believes that potential deviations from this recommendation are significantly limited by the Company’s share ownership guidelines, under which the CEO is expected to hold throughout their tenure Airbus SE shares with a value equal to at least 200% of their base salary. For further information on these topics, please refer to the Company’s Remuneration Policy, under “B. 5- Long-Term Incentive Plan” and “B. 6 - Share ownership guideline” (available on the Company’s website: https://www.airbus.com/en/our-governance/governance-framework-and-documents). Dealings with analysts Best practice 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. For practical reasons, 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. Diversity and inclusion Best practice provision 2.1.6 of the Dutch Code recommends that the corporate governance statement explain the diversity and inclusion policy of the Company and the way it is implemented. In accordance with Dutch law (Article 2:166 of the Dutch Civil code) the Company provides such information in Section 6.3.2.8 “Sustainability Statement -Diversity” below. CEO’s remuneration policy - Severance The Airbus remuneration policy provides that in case of termination of the CEO's duties at the initiative of the Board of Directors, the CEO shall be entitled to a termination indemnity equal to one time the last Total Annual Remuneration (defined the Base Salary and VR most recently paid), subject to applicable local legal requirements (if any). The termination indemnity would be paid only provided that the performance conditions assessed by the Board of Directors had been fulfilled by the CEO. 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. Best practice provision 3.2.3 of the Dutch Code recommends that severance arrangements be limited to a maximum of one year’s base salary. As the Company competes on a global basis (and beyond the Dutch market) for talent, the Company deems a deviation of this Airbus SE/ Report of the Board of Directors 2024 78
recommendation to be justified. The termination indemnity of the CEO could therefore result in a deviation from the Dutch Code. Other For information on the operation of the Shareholders' Meeting, its key powers, the shareholders' rights and how such powers and rights can be exercised, see Section 4.2.2 "Right to attend shareholders' meetings". For information on the composition and operation of the Board of Directors and its respective committees, see Sections 2.1.1 “Composition of the Board of Directors" and 2.1.4 “Board Committees”. For information on (i) significant direct and indirect shareholdings, (ii) holders of shares with special control rights, (iii) rules governing appointment and dismissal of Directors, (iv) amendments to the Articles of Association, and (v) the delegation to the Board of Directors of the power to issue or buy back shares, see Section 2.1.1 “Composition of the Board of Directors composition”, 2.1.2 “Board of Directors -Powers, rules and engagement with shareholders”, 4.2.1 “Shareholding structure at the end of 2024", 4.1.2 “Modification of share capital or rights to acquire shares”, 4.2.6 “Shareholding and voting rights -Amendments to the Articles of Association”, and 4.2.7 “Relationship with principal shareholders”. Airbus SE/ Report of the Board of Directors 2024 79
2.5 Miscellaneous 2.5.1 Policy for loans and guarantees granted The Company’s general policy is not to grant any loan or guarantee 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, such as the 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 and Officers) covering the persons concerned. 2.5.2 Conflicts of interest The Company has a conflict of interest policy, which sets out that any potential or actual conflict of interest between the Company and any member of the Board of Directors shall be disclosed and, where possible, avoided (please refer to the "Board Rules (Annex D – Article 8: Conflicts of interest)"). This policy is available on the Company's website: www.airbus.com (Company / Corporate Governance / Governance Framework and Documents), as is the related principle 2.7 of the Dutch Code (as such term is defined in Section 2.4 “Dutch corporate governance code” above), which the Company complied with during 2024. Pursuant to Airbus SE’s Articles of Association (the “Articles of Association”) and the Board Rules, a conflicted member of the Board of Directors should abstain from participating in the deliberation and decision-making process relating to the matters concerned. The Board of Directors must approve any decision to enter a transaction where a Director has conflicts of interest that are material to the Company or the individual Director. In 2024, no such transactions were reported. During the years 2022, 2023 and 2024, 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. There were, however, related-party transactions: for more information, please refer to the note on Related Party Transactions in the Notes to the IFRS Consolidated Financial Statements for each respective year. Airbus SE/ Report of the Board of Directors 2024 80
3 Risk Management and Internal Controls 3.1 Risk factors 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 in this section and elsewhere in this Board Report), the Company endeavours to minimise and/or manage risk in accordance with its risk appetite. To pursue its strategy, the Company is prepared to take a certain level of risk in order to secure profitability and cash flow and maintain its competitiveness, invest in research and development and manage a diversified business portfolio in a world of uncertain market and economic conditions. In addition to focusing on the identification and management of operational risks, the Company seeks to manage its legal and compliance risks by working to ensure that its business practices conform to applicable laws, regulations and ethical business principles, while developing and maintaining a culture of integrity. Regarding financial risks, the Company aims to undertake a prudent risk approach, seeking to minimise downside risk in accordance with the Company's risk appetite through an appropriate liquidity buffer, moderate financial leverage, the use of hedging derivatives and other mitigation measures. 3.1.1 Geopolitical, global economic and financial market risks The Company’s business, financial condition and results of operations may be materially affected by global economic conditions, global financial markets, geopolitical volatility and other macroeconomic developments which are outside of the Company’s control The behaviour of the Company’s customers and by extension, the demand for and supply of the Company’s products and services is affected by global economic conditions. The Company has operations around the world and a global customer base; as such, its business, financial condition and results of operations may be materially affected by global economic conditions, the global financial markets, geopolitical volatility and other macroeconomic developments outside its control, most particularly those affecting Europe, the Americas and Asia, where it manufactures and sells the majority of its products. Market disruptions and significant economic downturns may develop quickly due to, among other things, crises affecting credit markets and financial liquidity, regional or global recessions, sharp fluctuations in or sustained high commodity prices (including gas and oil), energy shortage or unavailability, volatility in or sustained unfavourable currency exchange rates or high interest rates, rapid increases in or sustained high levels of inflation or deflation, sovereign debt or financial industry debt rating downgrades, sovereign or financial industry restructurings or defaults, geopolitical tensions and conflicting policies (particularly among the US, the EU, Russia and China) - particularly as may be reflected through trade policy, tariffs or sanctions, adverse geopolitical events (such as military or armed conflicts, acts of terrorism) or other events having disruptive or negative global or regional economic repercussions (such as pandemics or natural disasters). Market disruptions and weak global (or localised) economic conditions brought on by the above-described or other factors could therefore result in: Protracted weak or reduced demand for air travel and cargo; financial distress among airlines and lessors, and potential bankruptcies within this market; financial distress affecting the Company’s suppliers or subcontractors and increased costs or disruptions within the Company’s supply chain; credit being unavailable (or not available at suitable terms) in the financial markets, or increases in customers’ operating costs leading to requests by customers to postpone or cancel existing orders for aircraft (including helicopters), decisions by customers to review their order intake strategy or an increase in the amount of sales financing that the Company is requested to provide to its customers to support aircraft deliveries; and Airbus SE/ Report of the Board of Directors 2024 81
variations in public spending or support for defence, homeland security and space activities, which may lead to the termination or reduction of future funding or to cancellations or delays impacting existing contracts. In each case, the factors and developments described above could result in weakened demand for the Company’s products or otherwise lead to material negative effects on the Company’s business, results of operations and financial condition. Further, although the potential negative impacts of global economic conditions have been thoroughly assessed and are continually monitored, the consequences thereof could have unforeseen material effects on the Company’s business, results of operations and financial condition, particularly to the extent they were to impact the Company’s commercial aviation activities or otherwise impact its access to financing. Increased tariffs or other trade restrictions or regulations could increase the cost of or otherwise weaken demand for the Company’s products in certain markets The Company is exposed to the risk of increased tariff rates and other trade restrictions or regulations. These factors may increase the cost of the Company’s products for customers in certain markets, or create situations where demand for the Company’s products in those markets is otherwise degraded or weakened. This could lead to lost or cancelled sales and requests by customers to defer, reject or reschedule delivery of new aircraft. These factors may also lead to increased costs within the Company’s supply chain, and non-tariff measures such as enhanced requirements by customs authorities, increased export restrictions and export bans may likewise impact the Company’s supply chain. The foregoing factors could have a material adverse effect on the Company’s business, results of operations and financial condition. In the past, the US has imposed increased tariffs on new aircraft imported from the European Union to the US, and on imports of aircraft manufacturing parts and components from France and Germany delivered to the Company’s final assembly line in Mobile, Alabama. The imposition of similar measures in the future, particularly by the US or China (and including any retaliatory trade measures), could have a material adverse effect on the Company’s business, results of operations and financial condition. The Company is exposed to foreign currency and related risks Due to the global nature of its business, the Company is exposed to fluctuations in currency exchange rates. Typically, more than 75% of the Company’s revenues were denominated in US dollars, with approximately 60% of such exposure being “naturally hedged” by US dollar-denominated costs, and the remaining costs being incurred primarily in euros (and to a lesser extent pounds sterling and other currencies). To the extent the Company does not cover its net current and future exchange rate exposure (arising from the time of a customer order to the time of delivery), its earnings and costs may be significantly affected by changes in the exchange rate of the US dollar against these currencies. To mitigate foreign currency exposure, under its hedging strategy the Company endeavours to hedge a significant portion of those exposures which are not “naturally hedged.” There are complexities inherent in determining whether and when foreign currency exposure will materialise (in particular given the possibility of unpredictable revenue variations arising from order cancellations, postponements or delivery delays), and there are structural limitations that may affect the Company’s ability to fully execute its hedging strategy (for example, the Company may seek to hedge amounts in excess of counterparties’ exposure limits). Accordingly, the Company’s hedging strategy may not protect it from significant changes in the exchange rate of the US dollar to the euro and the pound sterling, particularly if the euro appreciates versus the US dollar over the long-term (as it has in the past). Further, the Company is exposed to the risk of non-performance or default by these hedging counterparties, and as regulatory capital requirements evolve, increased hedging fees and credit charges may further erode the effectiveness of hedging through derivative instruments. Even with a fully implemented hedging strategy in place, the Company’s foreign currency exposure may reduce the Company’s financial flexibility and could result in a material adverse effect on the Company’s results and financial condition. Volatility or long-term changes in currency exchange rates, such as a strengthening of the currencies (primarily the euro or pound sterling) in which the Company incurs costs, or a relative weakening of those currencies in which competitors incur their costs, may negatively impact the Company’s ability to offer its products at competitive prices. This is particularly the case regarding 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. Further, as the Company’s non-euro denominated consolidated revenues, costs, assets and liabilities are translated into euro for the purposes of compiling its financial statements, changes in the value of these currencies relative to the euro will have an effect on the euro value of the Company’s reported revenues, costs, EBIT, other financial results, assets, liabilities and equity, which could result in a materially negative effect on the Company’s results. For further information on the Company’s foreign currency exposure, please refer to “Notes to the IFRS Consolidated Financial Statements - Note 37. Financial Instruments”. Airbus SE/ Report of the Board of Directors 2024 82
Unfavourable economic conditions and financial market volatility may negatively affect the Company’s liquidity, financial assets and access to funding Unfavourable, weak or uncertain economic conditions, rating agency downgrades of the Company, financial market volatility or disruptions, or liquidity constraints more broadly impacting the financial markets and market participants may affect the value of the Company’s financial assets, its ability to finance its product development programmes and meet its payment obligations and its ability to raise funds in the capital markets. The Company generally finances its manufacturing activities and product development programmes (particularly 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 agreements with subcontractors, and through funds raised in the capital markets. The conditions, events and circumstances described above could result in the Company being unable to obtain outside financing on appropriate terms (or at all), which could limit the Company’s ability to fund its operations, research and development activities and capital expenditure needs. Further, the resulting liquidity constraints could lead to the Company being late in paying or failing to pay its creditors and shareholders, and potentially delaying or disrupting the closing of transactions. In order to mitigate liquidity risk, the Company endeavours to maintain a prudent cash balance, a diverse and robust funding programme and a solid credit rating. The conditions, events and circumstances described above may also negatively affect the Company’s financial assets, potentially resulting in gains or losses being realised on the sale or exchange of financial instruments, impairment charges due to revaluation of the fair market value of debt and equity securities and other investments, unfavourable changes in interest rates and changes in the fair value of derivative instruments, each of which could result in a material negative effect on the Company’s financial results. Local or regional wars, armed conflicts or disputes (including responses thereto, such as sanctions) may adversely affect the Company’s business, operations and supply chain To the extent local or regional wars or armed conflicts result in reduced demand for air travel (directly or through consequent economic effects) or negative impacts on the commercial aircraft market (closing certain routes, disrupting fuel or other critical supplies, or otherwise impinging on air traffic), such events could reduce demand for the Company’s products and services. Further, such events may pose risks to the Company’s operations, supply chain (relating to the production or movement of materials or goods) and access to commodities. Operating worldwide, the Company must comply with sanctions laws and regulations implemented by transnational, national and regional authorities. Depending on geopolitical considerations, including national security interests and foreign policy, there is a risk that at any time new sanctions regimes may be set up or the scope of existing ones may be widened, which may have a negative impact on the Company’s activities. An example of this risk arose with Russia’s invasion of Ukraine in early 2022, with the resulting export control restrictions and international sanctions against Russia, Belarus and certain Russian entities and individuals causing disruptions to the Company’s business and operations (including data management) and increasing the Company’s exposure to supply chain disruption risk. While geopolitical risks, and associated de-risking activities, are integrated into the Company’s sourcing policies, events such as Russia’s invasion of Ukraine (and the resulting sanctions), or other destabilising events and conflicts may disrupt the Company’s supply chain or otherwise affect the Company’s ability to source certain materials and components, particularly in view of the lead time needed to develop alternative sources. For more details on the consequences of supply chain disruption risk, please refer to Section 3.1.2 “Business and operations-related risks - The Company depends on its supply chain, including key suppliers and subcontractors, and is thereby exposed to cost and performance risk”. Airbus SE/ Report of the Board of Directors 2024 83
3.1.2 Business and operations-related risks Commercial aircraft and helicopter market factors may affect the Company’s business Historically, the commercial aircraft market has experienced cyclical trends (including as expressed by order intake), reflecting changes in demand for passenger air travel and air freight. These trends in turn largely correlate to a range of variables, such as economic growth (or contraction), political stability, private consumption levels and working age population size. While downturns in the Company’s commercial aircraft business have in the past been partially mitigated by its defence, space and government activities, the significant growth of the Company’s commercial aircraft business relative to its other activities has significantly diminished this effect. For information on the Company’s revenue by segment, please refer to “Notes to the IFRS Consolidated Financial Statements - Note 11. Segment Information”. Particular factors impacting demand for the Company’s products and playing an important role in determining the market for commercial aircraft include: (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 passenger yields; (v) airline financial health; (vi) the availability of third party financing for aircraft purchases; (vii) fuel price evolution; (viii) geopolitical events (such as terrorism or pandemics); (ix) public or regulators’ perception of safety in the industry (generally or relating to specific events, aircraft types or operators); (x) the regulatory environment more broadly; (xi) environmental constraints imposed upon aircraft operations, such as the CORSIA, carbon standards and other environmental taxes; and (xii) market evolutionary factors such as the volume of business-related travel, the growth of low-cost passenger airline business models, the impact of e-commerce on air cargo volumes and the consolidation of airlines. In the future, other factors (such as the availability of SAF) may impact the market. Historically, the commercial helicopter market has also experienced cyclical trends as described above, and may also be influenced by these factors. The factors described above may have an impact on the commercial aircraft industry and commercial helicopter industry, leading customers to postpone or cancel orders or delay payments, which could result in a material impact on the Company’s business, financial condition and results of operations. The Company is exposed to counterparty credit risk through its financial instruments and other arrangements with financial counterparties The Company is exposed to counterparty credit risk under its financial instruments, including its hedging instruments (US$ 59.9 billion nominal value at 31 December 2024) and cash investments (€  26.9 billion nominal value at 31 December 2024). For further information on the Company’s exposure to financial counterparties, please refer to “Notes to the IFRS Consolidated Financial Statements - Note 37. Financial Instruments”. In view of this exposure, the Company maintains policies 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 (and if neither is available, Fitch Ratings are used). Besides the credit rating, the Company’s credit 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 counterparty credit exposure of the Company is reviewed on a regular basis and the respective limits are regularly monitored and updated. In addition to monitoring the Company’s overall credit exposure, the Company regularly analyses counterparty credit exposure in terms of its potential contribution to unexpected losses. 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. Despite these measures, there can be no assurance that the Company’s credit risk management strategies will be adequate or that the Company will retain the benefit of its derivatives or cash investments, particularly in the event 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. Airbus SE/ Report of the Board of Directors 2024 84
The Company may be exposed to customer credit and asset value risk through its customer sales financing arrangements In support of aircraft sales and deliveries, the Company may from time to time participate in sales financing solutions for its customers. During periods of financial market disruption, the Company’s participation in these activities may significantly increase, due to a lack of financing alternatives being available to customers. To the extent the customer does not perform its obligations under the relevant financing arrangements, such arrangements may expose the Company to counterparty credit risk. Because the Company will generally retain a security interest in the aircraft, these arrangements may also expose the Company to residual value risk with respect to the aircraft collateral. Under adverse market conditions, the market for used aircraft could become illiquid and the market value of used aircraft could drop significantly below anticipated levels; hence if a customer defaults at a time when aircraft market values are depressed, 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.). Further, through its asset management department or as a result of past financing transactions, from time to time the Company may take ownership of used aircraft, and as such can be exposed to fluctuations in their market value. Defaults by financing or asset management customers, or significant decreases in the value of financed or Company-owned aircraft in the resale market, could result in a material adverse effect on the Company’s business, results of operations and financial condition. For information on the Company’s customer sales financing activities, please refer to “Notes to the IFRS Consolidated Financial Statements - Note 27. Sales Financing Transactions”. The Company has significant pension commitments, which could weigh on its financial condition The Company participates in several pension plans for both executive and non-executive employees, most notably in Germany and the UK, some of which are underfunded. As at 31 December 2024, the provision for retirement plans and similar obligations amounted to € 1.8 billion (compared to € 2.7 billion as at 31 December 2023). For further information related to these plans, please refer to the “Notes to the IFRS Consolidated Financial Statements - Note 31. Post-Employment Benefits”. The Company has recorded a provision in its balance sheet for its share of the underfunding measured in accordance with IFRS based on current estimates. These estimates are reviewed annually and, as the case may be, revised leading the Company to record lower or higher provisions. 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, (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 has a long-term objective to better match the characteristics of the pension assets with those of the pension liabilities. 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 the Company’s financial condition. Business disruptions, including by cyber, physical or hybrid threats, could adversely affect the Company The Company’s business and operations are at risk of disruption by cyber, physical or hybrid threats, which may be targeted at the Company specifically or which may unfold on a wider scale. As the Company becomes more digitised and interconnected (including through increased use of cloud services, mobile devices and the “internet of things”), its extensive information and communications systems, industrial environment (including control systems and manufacturing processes), products and services are increasingly exposed to cyber security risks. The Company is exposed to these risks directly or indirectly (e.g. through its supply chain), and threats may be brought about by intentional, hostile actions or they may arise due to accidents, carelessness or neglect. Threats from hostile actors are continually and rapidly evolving, becoming more sophisticated and requiring ever more vigilance on behalf of the Company. This type of threat may take the form of intrusion in the Company’s systems (leading to data leakage and/or unavailability of the Company’s technology infrastructure), attacks impacting the resilience of industrial systems, or attacks compromising the development, use or operation of products and services. The objectives of these attackers may include espionage or financial objectives (e.g. extracting ransom), and they may otherwise seek to influence the actions of the Company or to create obstacles to its operations. While the Company maintains vigilance to prevent such risks from materialising, including through significant (and targeted) investment of resources, it is possible that adverse cybersecurity events may occur. If such risks were to materialise it could compromise the Company’s ability to operate and perform its obligations, could result in the loss of intellectual property or Airbus SE/ Report of the Board of Directors 2024 85
other business data and information, and could lead to malfunctions in its products and services, in each case potentially resulting in material adverse effects on the Company’s business, results of operations and financial condition. In addition to these direct operational risks, the Company could experience reputational damage and, as the Company handles sensitive national security information and is subject to data privacy laws in many jurisdictions, to the extent national security information or personal data were compromised (whether accidentally, or through a deliberate internal or external act) the Company could face administrative, civil or criminal liabilities (including significant fines and penalties) in addition to the reputational, commercial, financial or other consequences that may result. Physical incidents, which may disrupt modes of transportation, supply chains, public infrastructure and public services, or which may damage the Company’s property or threaten the physical security of the Company’s employees, may arise through terrorism or other deliberate malicious acts, local or regional conflicts or civil unrest, natural disasters, pandemics or incidents of another nature. In addition to potentially impacting demand for the Company’s products, such events may compromise the Company’s internal operations, its supply chain or its ability to deliver products and services. In addition to purely cyber and physical incidents, “hybrid” incidents (i.e. combining cyber and physical) may occur (for example, coordinated disruptions of air traffic utilising drones). The Company maintains dedicated risk identification and mitigation measures meant to safeguard its operations, critical assets and its own “single points of failure” that would be most likely to lead to significant disruption. The materialisation of catastrophic or disruptive events of a nature described herein could materially adversely affect the Company’s business, results of operations and financial condition. The Company depends on its supply chain, including key suppliers and subcontractors, and is thereby exposed to cost and performance risk Due to its global footprint and the nature of its business, the Company’s operations are dependent on the performance of numerous suppliers and subcontractors in a multitude of countries that provide the raw materials, parts, assemblies, systems, equipment and services required for the Company to manufacture and/or deliver its products and services. In the event of late or unsatisfactory performance by these suppliers and subcontractors or their failure to perform their obligations, or any other disruption impacting the supply chain (whether in the short-term or on a sustained basis), the Company’s operations and performance (including its ability to meet its committed production schedule) could be impaired, which could have a material adverse effect on the Company’s business, results of operations and financial condition. The ability of these suppliers and subcontractors to meet their contractual obligations may be negatively impacted by a variety of commercial factors, including (but not limited to) the availability and cost of financing, the availability and cost of energy and raw materials, the ability to attract, train and retain a suitably skilled workforce, the ability to acquire certain non-commodity materials and components in the required quantity and timeframe and at an acceptable cost, disruptions to transport and logistics networks, and cyber security or other threats. Further, macroeconomic or local economic factors (including economic recessions and inflation or changes in raw material prices), geopolitical conflicts causing economic or logistical disruptions, changes or tightening of export controls and other trade regulations, tariffs, sanctions and embargoes, and other legal or regulatory matters (including sustainability and environmental regulations) may negatively impact suppliers’ and subcontractors’ financial stability and ability to meet their contractual obligations. Despite the COVID-19 pandemic having receded, its lingering effects continue to exacerbate many of these challenges. Despite the Company’s efforts to continually improve its supply chain resilience, including by having robust governance in place aiming to prevent, anticipate and monitor supply chain disruption risks and to manage such matters efficiently (including by having a qualification and performance surveillance system in place), the Company cannot fully protect itself from unsatisfactory or non-performance by its suppliers or subcontractors, which could negatively affect the Company’s ability to meet commitments to its customers or could increase the Company’s operating costs, and which could lead to a material adverse effect on the Company’s business, results of operations and financial condition. In addition to the performance risks described above, the Company is exposed to the risk of increased costs in its supply chain, which may materialise due to increased commodity or raw materials costs, or due to inflation more generally impacting the cost of production. Due to the long duration of sales and supplier contracts in the aerospace and commercial aircraft industry, many such contracts include revision clauses linked to inflation (or other external indices), which may result in the Company’s supply chain costs increasing further and more quickly than the Company is able to adjust the prices charged for its goods and services. Further, changes to the Company’s production or development schedules may impact suppliers and customers such that they may initiate contractual claims for financial compensation or they may elect to not fulfil their on-time and on-quality delivery commitments. Increased costs arising in the supply chain could impact the ability of Airbus SE/ Report of the Board of Directors 2024 86
the Company to operate its programmes and lines of business on a profitable basis, and could materially adversely affect the Company’s business, results of operations and financial condition. For additional information on risks that may impact the Company’s suppliers and contractors and their ability to deliver, please also refer to Section 3.1.1 “Geopolitical, global economic and financial market risks -Local or regional wars, armed conflicts or disputes (including responses thereto, such as sanctions) may adversely affect the Company’s business, operations and supply chain” and “-Increased tariffs or other trade restrictions or regulations could increase the cost of or otherwise weaken demand for the Company’s products in certain markets.” The Company faces challenges in adapting and evolving its industrial system as it works towards its targeted commercial aircraft production rates The Company’s efforts to adapt and evolve its industrial system as it works to reach its targeted commercial aircraft production rates are taking place in a complex and challenging environment. The success of this industrial adaptation and the production ramp-up depend not only on the Company effectively executing its plans, but also on external factors beyond the Company’s control, with challenges arising across the value chain (including within the supply chain) and other extrinsic factors having the potential to compromise the Company’s efforts. To the extent developments arise that affect the value chain (including the supply chain), whether relating to raw materials, suppliers’ work packages (such as engines, wings, airframe components, cabin equipment or other parts or elements), the availability of necessary elements of production could be disrupted, thereby threatening the success of the ramp-up effort. To mitigate potential downside outcomes in this context, the Company monitors the ramp-up capabilities of the value chain (including the supply chain) for all commercial aircraft programmes on a continual basis. Likewise, the Company attempts, where possible, to increase its resilience against production disruptions and delays by increasing inventory buffers for certain key inputs and/or securing alternative sources. Factors within the Company, such as human resources (right-sizing headcount and acquiring or developing the specific skills and competencies required to support the Company's ramp-up, and training and reskilling the existing workforce), resource allocation and adaptation to the complex and evolving operating environment likewise present challenges that could threaten the success of the ramp-up effort. Finally, other extrinsic factors affecting the Company or its value chain (arising due to economic, political or other developments) could disrupt the ramp-up effort. Against this backdrop, the Company continues to focus on quality and safety, while protecting priority projects and delivering incremental programme objectives and continuing to meet its various regulatory obligations (such as securing Production Organisations Approvals). The intersection of these various and complicated factors yield a complex and challenging environment within which the Company is attempting to execute the ramp-up. Failure to achieve the ramp-up and reach the targeted production rates could have a materially negative effect on the Company’s business, results of operations and financial condition. The Company’s technologically advanced products and services are complex to design and manufacture, and they may require updates or modifications throughout their lifecycle The Company’s products and services are technologically advanced, often with lengthy life-cycles, meaning their design and manufacture (and the design and manufacture of their constituent components) is often complex. Likewise, the components and materials (such as specialty chemicals) that are utilised in the Company’s products and services can require specific handling, and may require substantial efforts to integrate and coordinate through the supply chain, and the availability of these materials (such as specialty chemicals) may be impacted by regulatory change. Due to these complexities, which are inherent in the Company’s products and services, delays in design or manufacturing may arise. There can also be no assurance that the Company’s efforts to develop a product or service will be successful, or that the manufacturing process and maintenance requirements of a product will be in line with plans and forecasts. During their life cycle, the Company’s products may require updates, modifications, retrofits or other costly actions going beyond those originally designed and planned. If, due to the foregoing factors (or for any reason), a product or service is not delivered on time or fails to adequately perform, or if remedial actions are required or if contractual requirements are otherwise not met, the Company may be subject to payment obligations or other remedial measures. To the extent any of these risks materialise (in regard to new or established programmes) they could cause the Company to incur significant costs or suffer lost revenues, and to the extent there were potential safety implications, regulatory authorisation of the affected product or service could be suspended. Risks of this nature could, individually or in the aggregate, have a material adverse effect on the Company’s business, Airbus SE/ Report of the Board of Directors 2024 87
financial condition and results of operations, as well as on the reputation of the Company and demand for its products and services. In order to maintain its market position the Company maintains extensive research and development programmes, which may not lead to successful or profitable outcomes The Company’s success depends on (among other things) its ability to continue innovating, in order to develop and offer attractive and relevant products and services on a profitable basis. To this end, the Company maintains extensive and complex research and development programmes, which can be costly and require significant up-front investments, and which do not necessarily lead to successful or profitable innovations. For further information on the Company’s investment in research and development, please refer to the “Notes to the IFRS Consolidated Financial Statements - Note 13. Research and Development Expenses”. Due to the technologically advanced and complex nature of the Company’s products and services (often having lengthy life-cycles) and the long period (including ramp up time) it takes to produce them, the business plans underlying such investments often entail a long payback period to recoup these investments, and assume a certain level of return over the 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 that the duration of payback period or level of returns contemplated therein will be achieved. Failure to develop and offer innovative, attractive and relevant products on a timely basis could impair the Company’s competitiveness and have a significant impact on demand for its products and related services. In addition, no assurances can be given that the Company will achieve the anticipated level of returns from any of its research and development programmes and other development projects, which may negatively affect the Company’s financial condition and results of operations. The Company’s success depends on its ability to attract, train and retain qualified talent and to maintain constructive relations with its workforce The Company’s ability to attract, train and retain qualified talent with the professional and technical skills and experience required to meet its specific needs is crucial to the Company’s ability to maintain its operations, achieve the ramp-up to its targeted production rates and pursue the development of new programmes, products and services. Demand for suitable employees may, depending on the labour market, exceed supply, resulting in intense competition for qualified talent. There can be no assurance that the Company will attract and retain adequate personnel in order 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. These effects can be heightened if the attrition rate increases beyond expectation, either globally or on a local or regional basis. Failure to attract, train and retain sufficient qualified talent could have a significant effect on the Company’s ability to innovate and meet customer demands, which could have a material adverse effect on the Company’s business, financial condition and results of operations. Many of the Company’s employees are represented by labour unions and collective bargaining arrangements. While the Company endeavours to maintain a positive and constructive engagement with its stakeholders, the potential remains for organised actions (including strikes, work slowdowns or other informal measures) to disrupt the Company’s operations and production. Whether over a short timeframe or prolonged, such disruptions could have a material adverse effect on the Company’s business, financial condition and results of operations. The Company may be affected by changes in levels of public spending and public sector investment, particularly in relation to its defence and security related businesses Certain of the Company’s businesses, particularly its defence and security related businesses, serve a customer base that is largely comprised of governments and other public sector customers. Public spending (including defence and security spending) depends on a complex mix of political and geopolitical considerations and budgetary priorities (including constraints arising due to economic conditions), therefore it may significantly fluctuate from year to year and country to country. In instances where several countries jointly enter into defence or procurement contracts, economic, political or budgetary constraints in any one of the countries concerned may have a negative effect with respect to the execution of, or the performance and payment under such contracts. Changes in levels of public spending, and/or cancellations or delays impacting existing public contracts may have a negative effect on the Company’s business, results of operations and financial condition. Airbus SE/ Report of the Board of Directors 2024 88
Historically, the Company and its principal competitors have each received various types of government financing with respect to product research and development. While the Company generally finances its manufacturing activities and product development programmes (particularly the development of new commercial aircraft), through a combination of cash flows generated by operating activities, customer advances, and risk-sharing agreements, in certain circumstances it may also receive refundable advances from European governments, and its military-linked activities in particular may benefit from government-financed research and development contracts. Likewise, a significant proportion of the Company’s longer-term research efforts, which are aimed at furthering the Company’s sustainability ambitions for its future generations of aerospace products, face significant technological and industrial challenges that require cross-industry and cross-government collaboration and innovation in order to be addressed. These longer-term research efforts are particularly tied to national (or supranational) research funding programmes, which enable the Company and the wider aviation ecosystem to mature and develop the required key competencies and technologies to address these complex issues. The loss or absence of these sources of funding and avenues of collaboration could negatively affect the Company’s ability to successfully execute its various research and development programmes, could negatively affect its competitiveness and future prospects, and could lead to a negative effect on the Company’s business, results of operations and financial condition. While there are high barriers to entry, the markets in which the Company operates are highly competitive, and may favour local or regional competitors The design, development and production of commercial aircraft involves high barriers to entry, including certification requirements, large investment needs, skilled competencies, access to technology and long development cycles. With the single-aisle aircraft of an emerging Chinese competitor having entered into service in the Chinese market (and with its certification in other jurisdictions expected to follow), market competition has increased in recent years. Although the Company has significant order backlogs for its commercial aircraft, continued and increasing market competition (through the further entry of new competitors or the launch by competitors of new products or services) could have a negative impact on the Company’s revenues, future financial condition and results of operations. The other markets (beyond commercial aircraft) in which the Company operates are highly competitive, and new players are operating (or seeking to operate) in these markets, which may impact their competitive structure and profitability. In addition, enterprises with different business models and alternative technologies could seek to substitute the Company’s services and some of its products or component parts thereof. With respect to certain markets or products, competitors may have more extensive or more specialised engineering, manufacturing, support and marketing capabilities, and these competitors may develop the capability to manufacture products or provide services similar to those of the Company, in direct competition with the Company, which could have a negative impact on the Company’s revenues, future financial condition and results of operations. There can be no assurance that the Company will maintain its position in the market or compete successfully in the future, or that competition with respect to its products or services will not result in reduced revenues, market share or profit. In addition, the contracts for many aerospace and defence products may be awarded, implicitly or explicitly, on the basis of home country preference or geopolitical considerations. Although the Company is a multinational company (which helps to broaden its “home” market), for certain products or services it may remain at a competitive disadvantage in certain countries (particularly outside of Europe) relative to local competitors. The strategic importance and political sensitivity of the aerospace and defence industries means political considerations may play a role in the choice of many products and services for the foreseeable future. In addition to impacting the outcome of specific sales campaigns, political considerations may be reflected in tax and trade policies (including tariffs and other regulations), which could limit the Company’s competitiveness in certain markets. Further, the contracts for many aerospace and defence products and services are from time to time associated with offset or localised obligations. The Company may face difficulties to meet such obligations (especially with respect to engaging local country assets) while and at the same time optimising its industrial base and supply chain, which could impact the Company’s competitiveness versus local or regional competitors. The Company participates in a variety of co-ventures and is regularly engaged in acquisitions and divestments, which may not yield their intended benefits The Company conducts elements of its businesses and generates a portion of its results through consortia, joint ventures, partnerships or other co-investments and equity holdings. 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 businesses, technologies or products (and the Airbus SE/ Report of the Board of Directors 2024 89
related operations and human resources), and may be further complicated by regulatory or administrative requirements or by the involvement of stakeholders. Each such arrangement or transaction is highly specific in its nature, purpose, risks and opportunities. While the Company seeks to participate only in ventures in which its interests are aligned with those of its co-venturers, there is a risk of disagreement or deadlock in these entities, particularly where unanimous consent for major decisions may be required or where exit rights may be limited. In certain instances, the co-venturers in these entities may be competitors of the Company, and as such their interests may differ from those of the Company. There can be no assurance that any of the businesses that the Company may acquire (or divest) will be integrated (or carved out) successfully and in the intended time frame or that they will perform as planned or deliver the expected synergies or cost savings. To the extent any of its planned acquisitions or divestments cannot be executed as planned, or any of its consortia, joint ventures, partnerships or other co-investments and equity holdings fail to perform as intended, this could lead to a material effect on the Company’s business, results of operations and financial condition. 3.1.3 Legal, regulatory and governance risks The Company faces various legal and regulatory risks, as described in this section and elsewhere in this Board Report. In addition, the Company operates in a complex geopolitical and economic environment in which it needs to respond to the interests of its various stakeholders while maintaining focus on its operational priorities. In certain contexts, the interests of individual stakeholders or groups of stakeholders may diverge from those of the Company. Reconciling such situations may demand the time and focus of the Company’s management, potentially diverting management’s attention from operational priorities and impacting the performance of the Company, which could have a negative effect on the Company’s business, results of operations and financial condition. The Company is regularly involved in legal and regulatory disputes and proceedings which could lead to negative impacts on the Company’s business, results of operations, financial condition and reputation The Company is regularly involved in civil and commercial disputes and litigation, and governmental or regulatory investigations, proceedings or inquiries, and expects to continue to spend time and incur expenses in connection therewith. Regardless of their ultimate outcome, these matters may divert the focus of management from normal business operations. The Company is not always able to predict the outcome of these matters; as such, no assurance can be given that the outcome of such matters will not be unfavourable to the Company. An adverse resolution to any current or future litigation, dispute or proceeding may result in the imposition of damages, fines or other remedies, which could have a material effect on the Company’s business, results of operations and financial condition. An unfavourable outcome to any of these proceedings could also negatively impact the Company’s share 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 to, among other things, the heavily regulated nature of its industry. Such inquiries and investigations may cover matters relating to, among other topics, anti-corruption and anti-bribery laws and regulations, export control laws and regulations, sanctions, data privacy laws, securities law, international trade law (including tariffs and import duties), and competition law. An adverse decision in any such matter could have a material effect on the Company’s business, results of operations and financial condition. In addition to the risk of an unfavourable ruling against the Company, any such inquiry or investigation could negatively affect the Company’s reputation and its ability to attract and retain customers and investors, which could have a negative effect on its business, results of operations and financial condition. For further information on currently active legal and regulatory disputes and proceedings, please refer to “Notes to the IFRS Consolidated Financial Statements - Note 38. Litigation and Claims”. The Company must comply with applicable anti-corruption and anti-bribery laws and regulations in jurisdictions around the world where it operates The Company must comply with applicable anti-corruption and anti-bribery laws and regulations in jurisdictions around the world where it operates, with the laws of the US, the UK, France and other nations that have extraterritorial reach covering the entirety of the Company’s value chain. Non-compliance with applicable laws and regulations or ethical misconduct by the Company, its employees or any third party acting on its behalf could expose the Company to liability or have an adverse Airbus SE/ Report of the Board of Directors 2024 90
impact on its reputation, relationships with governments and financial counterparties and business. Non-compliance in this area may also subject the Company to administrative, civil or criminal sanctions, including significant fines and penalties, suspension or debarment from government or non-government contracts for a period of time or the obligatory suspension of operations in one or more markets in which violations have occurred. The Company could 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. The Company is required to comply with applicable sanctions, export control laws and regulations The ability to successfully obtain export licences is critical for the Company, as it relies on export authorisations to deliver products and services to its customers worldwide, and to receive parts, raw materials and services from its suppliers. Products the Company designs and manufactures for military use are generally 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) and by other countries where suppliers are based, including but not limited to the US. Commercial products also may be subject to dual-use licensing requirements and restrictions, particularly as regards certain markets, such as China. There can be no assurance that (i) the export controls to which the Company is subject will not become more restrictive, (ii) new generations of the Company’s products will not also be subject to similar or more stringent controls or (iii) geopolitical factors or changing international circumstances will not make it impossible to obtain export licences for one or more clients or constrain the Company’s ability to perform under previously signed contracts. The Company seeks to comply with all relevant laws and regulations. However, even unintentional violations or 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, highlighting the importance of robust compliance and a strong, trust-based relationship with its regulatory authorities. If sanctions, export control laws and regulations meaningfully limit the Company’s access to export markets or the Company’s ability to receive inputs (including systems, components and technologies, including in relation with dual-use items as well as raw materials) from its suppliers, this could result in reductions, cancellations, and/or delays of existing contracts or programmes or compromise future programme opportunities, and could have a significant adverse effect on the Company’s business, results of operations and financial condition. The Company’s global activities expose it to the risk of increased taxation and the introduction of new taxes in jurisdictions in which it has taxable presence The Company operates across many jurisdictions. Legislative and regulatory developments or other changes in applicable tax law or policy in these jurisdictions could have a negative effect on the Company’s financial results. Relevant tax authorities may review the tax returns filed by the Company and its related entities, and may challenge or disagree with positions taken, which could lead to uncertain or unfavourable results regarding the tax treatment of the Company and could result in increased tax liabilities for the Company. Further, global tax developments, such as the OECD’s anti-BEPS (base erosion and profit shifting) and Pillar 1 (profit allocation and nexus) and Pillar 2 (global minimum taxation) agendas could result in changes impacting the Company’s financial results. In particular, the Pillar 2 Global Minimum Tax rules, which have been implemented in the Company’s home jurisdiction of the Netherlands with effect for the 2024 tax year, impose a minimum consolidated tax rate of 15%, with a “top-up” tax applicable if the Company’s tax rate falls below this threshold. While the Company actively monitors, manages and complies with global and local tax developments and its tax obligations, unfavourable changes in tax law or policy could have a negative effect on the Company’s financial results. 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 The Company designs, develops and produces a number of high-profile products of large individual value, particularly civil and military aircraft and space equipment. In the event any of its products fails to perform adequately or as designed, the Company is subject to the risk of product liability and warranty claims. Due to the nature of product liability and warranty claims, the Company cannot predict the potential impact or magnitude of such claims, as this will depend on the basis of such claims and the relevant facts and circumstances. While the Company believes that its insurance programmes are adequate, no assurance can be given that such claims will not arise in the future or that the Company’s insurance coverage will in fact be adequate in every instance or circumstance. Some types of damages, such as punitive, exemplary or moral Airbus SE/ Report of the Board of Directors 2024 91
damages, may not be insurable, or may not be insurable on commercially reasonable terms. Likewise, in the event a claim is made against an owner or operator of the Company’s products who is not sufficiently insured, it becomes more likely that the Company may be made party to the relevant proceedings and that claims may be asserted against the Company. Further, such incidents could negatively impact the Company’s reputation and brand, reducing demand for its products. To the extent these risks materialise, this could have a significantly negative effect on the Company’s reputation, and could result in materially adverse effects on the Company’s business, financial position and results of operations. The intellectual property rights of the Company may be challenged, invalidated or circumvented, which could adversely affect its competitive position In order to develop and deliver new products to meet customers’ evolving needs, while also improving its existing product lines, the Company relies on its ability to develop, utilise and protect its intellectual property. 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 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, services and operations. Notwithstanding the Company’s efforts to protect its IP rights, there is a risk that any of its 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 North America. Therefore, in certain jurisdictions, the Company may be unable to protect its proprietary technology and critical IP adequately against unauthorised third-party copying or use, which could negatively impact the Company’s implementation of its business strategy, and could negatively affect the Company’s future prospects, financial condition and results of operations. The Company has in the past been accused of infringement, and may have such 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, regardless of their ultimate outcome, could be time-consuming and costly, could harm the Company’s reputation or could require it to enter into licensing arrangements (the terms of which may not be favourable to the Company). If a claim of infringement were successful against the Company, in addition to monetary damages, the Company could be subject to an injunction or other specific remedies, which would likely lead to further disruptions of business and operations and result in further financial losses. 3.1.4 Environment, human rights, and health & safety risks Climate-related risks The Company’s future business depends on its ability to develop and deliver products and technologies that are responsive to and can operate within the emerging parameters defined by climate change and the response thereto. Climate change and climate-related risks may have a major impact on both the Company’s industrial operations and its upstream and downstream value chain, including directly on aircraft operations and on the wider air transport ecosystem, and may have a significant influence on the regulatory environment in which the Company operates and the expectations of stakeholders. Accordingly, climate-related risks could materially affect the Company’s business and competitiveness, its customers and the aviation industry more broadly (which would in turn impact the Company). The results of the Company’s climate scenario analysis has led to the identification of the following climate-related risks: Transition - Technology: Emergence of disruptive technologies from competition Delivering on existing commitments and potential future requirements to mitigate climate impacts will require significant investments in new technologies for the commercial aircraft sector, making the delivery of low-emission technologies a significant marker of future competitiveness. A competitor or new market participant could have access to technological developments unavailable to the Company that offer significantly lower emissions at a faster pace than the Company and its partners, resulting in a loss of market share and competitiveness with resulting reduced revenue. The imperative for the Company to develop new technologies faster than other actors in the market will require substantial R&T and R&D investments. Airbus SE/ Report of the Board of Directors 2024 92
Transition - Market: Low availability of renewable and low-carbon energy The Company has identified risks linked to the availability and affordability of renewable and low-carbon energy. First, there is the risk of low volumes in absolute terms, due to insufficient investments in renewable or low-carbon energy (including through the sustainable transformation of available biomass). Second, there is the risk that even if total volumes are approaching sufficiency in absolute terms, the aviation sector is unable to access sufficient volumes, leading to a risk of a slower than expected substitution of fossil fuel energy and low uptake of the new solutions and products to be developed by the Company, and resulting in lower or longer returns on invested R&D. Transition - Market: Impact of market measures and their development on demand for the Company’s products Accommodating new types of aircraft that respond to the aviation sector’s decarbonisation objectives requires an ecosystem that is ready. For instance, the development of future products based on hydrogen or other alternative propulsive technology concepts will require significant investments in both products and supporting infrastructure, which could directly impact the operating costs of such a product. Consequently, the absence of measures to stimulate robust hydrogen, synthetic fuels and biofuels supply infrastructure and adapted procedures to ensure efficiency and safety of operations, could mean that the ecosystem will be unable to accommodate the Company’s future products, notably resulting in significant development costs incurred and a risk of compromising the investments made if customers are unable or unwilling to purchase products that cannot be widely operated within the available infrastructure and procedures. Moreover, the competitiveness of this next generation product will also strongly depend, among other factors, on the evolution of the price of CO2 emissions. A high price on CO2 may impact the demand for aircraft relative to competitors' portfolios and could result in the loss of market share for the Company relative to its competitors. The Company’s business, results of operations and financial condition may be materially affected if the Company does not, at each step of development of its future products, account for market expectations while ensuring its products stay affordable for customers and competitive with respect to competitors’ portfolios. Transition - Policy and legal: Climate-related regulations and restrictions - divergence in regulatory framework Aviation and aerospace are complex industries, with long product development cycles and where change takes a long time to be implemented. A rapid evolution of climate related policies (such as the EU zero-pollution communications) 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. In particular for aviation, as it is a global industry, policies and regulations implemented at national or regional rather than international level, or these evolving at a different speed depending on the region, could result in a negative impact on the competitive conditions for manufacturers and aircraft operators. This could result in a loss of competitiveness for the Company and reduced demand for its products. Transition - Reputation: Change in behaviours, perceptions and societal expectations Reputational risks could be divided into several categories. Firstly, there is a risk that negative perceptions about the Company’s environmental performance could be used as key decision-making criteria for consumers, investors, or even new talents. Secondly, there is a risk that the Company’s reputation could be 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 hydrogen-powered commercial aircraft to the market. If the ambition is perceived as unattainable or if the Company is not able to deliver on its ambition, this could result in reputational damage leading to less 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 - Acute: Extreme weather events may impact the Company's products and its operations The foreseen consequences of climate change include more frequent extreme weather events, such as drought, dust storms, extreme temperatures, extreme winds, flood, hail storms, landslides, hurricanes, tornadoes, cyclones and wildfires. These could negatively impact the Company’s products and its operations (including but not limited to route delays and safe aircraft operations), land assets and infrastructure as well as employees' safety (and people's safety generally). The above consequences and impacts may result in production or other operational Airbus SE/ Report of the Board of Directors 2024 93
disruptions leading to lost revenues, reduced profits, and losses. This could result in the need for additional modifications to the Company's products in order to meet more stringent safety needs, as well as requiring changes to industrial operations and procurement strategy, leading to increased operational and production costs and the consequential costs of adapting the Company’s insurance coverage. Physical - Chronic: Consequences of long-term changing weather patterns that may cause increase of infrastructure and operations costs, reduced labour productivity, loss of assets value and negatively impact employee's health The foreseen consequences of climate change include long-term shifts in climate patterns (e.g., change in precipitation patterns, sustained higher temperatures, flooding, water stress or chronic heat waves). Such changes may cause an accelerated degradation of the Company’s industrial infrastructure and assets (buildings, tools, hardware), may reduce the availability of operational resources and may interrupt logistics flows, therefore impacting the Company’s manufacturing activities. In addition, the change in environmental conditions could also negatively impact the performance of products in operation and negatively impact the health and safety of the Company’s employees. This may result in the need for additional modifications to the Company’s products, as well as to industrial operations and procurement strategy, leading to increased costs and the adaptation of the Company’s insurance coverage. Based on a qualitative analysis, the Company has estimated the probability of risk materialisation. It has also performed a preliminary internal assessment, using data from the Company's Enterprise Risk Management system, as to which climate-related risks may involve the most significant financial impacts in the future. The results are displayed in the following table. Airbus SE/ Report of the Board of Directors 2024 94 Climate scenario/time horizon(s) where risk likelihood is considered medium or high, based on Company's qualitative analysis Potential financial impacts before mitigation RISKS 1.5°C >3°C Transition - Technology +++ Transition - Market (Energy) +++ Transition - Market (Demand) +++ Transition - Policy and legal Not assessed Transition - Reputation Not assessed Physical - Acute ++ Physical - Chronic ++ : ST - : MT - : LT
The Company and its value chain are subject to extensive rules and regulations relating to environmental protection Given the scope of its activities and the industries in which it operates, the Company and its suppliers are subject to stringent laws in numerous jurisdictions around the world, which are designed to protect human health and the environment. To enable compliance with this constantly and rapidly evolving legal and regulatory landscape, the Company incurs and in the future will continue to incur expenditures related to costs to limit, avoid, reduce and control emissions to the environment; investments in improving waste management technologies; management of potential obsolescence; and obligations relating to the manufacturing and composition of the Company’s products, including measures needed for traceability in respect of regulated substances contained in and/or used in the manufacturing of products the Company acquires through the supply chain and reporting and labeling obligations. As trends continue toward further regulatory pressure to reduce the environmental footprint of industry in general, the Company’s ongoing efforts to comply with its regulatory obligations will lead to additional costs. Any failure to meet requirements of environmental laws and regulations may expose the Company to civil and/or criminal penalties and fines. Further, liability under some environmental laws may be imposed retroactively, on a joint and several basis (i.e. each entity may be fully liable for the entire claim) and, in relation to any sites found to be contaminated due to activities of prior occupants, without any finding of non-compliance or fault by the current owner or occupant. These potential liabilities may not always be covered by insurance, or may be only partially covered. Any obligation to provide compensation for such losses or damages or other enforcement or penalty actions in relation to environmental matters could have a significant adverse effect on the Company’s reputation, business, results of operations and financial condition. The Company is subject to extensive health and safety rules and regulations Given the scope of its activities and the industries in which it operates, the Company is subject to stringent health and safety laws and regulations in numerous jurisdictions around the world, applicable to its operations and with respect to the products it sells. To enable compliance with this constantly evolving legal and regulatory landscape the Company incurs and in the future will continue to incur health and safety related expenditures, which include investments in the continuous review of processes and the identification and the prevention, elimination or control of potential physical and psychological risks to people in the workplace (including chemical, mechanical and physical agents). Potential risks to the workforce or otherwise arising from work activities include the possibility of injury, physical and mental ill-health among the workforce, damage to equipment, business interruptions and regulatory action. 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. The occurrence of such events or any finding of failure by the Company to maintain compliance with these laws and regulations would leave the Company exposed to enforcement or litigation risk, as well as reputational damage, which in each case could have a significant adverse effect on the Company’s reputation, business, results of operations and financial condition. Airbus SE/ Report of the Board of Directors 2024 95
3.2 Enterprise Risk Management System This section contains information incorporated by reference to address CSRD requirements related to Disclosure Requirement “GOV-1 The role of the administrative, management and supervisory bodies”, paragraphs 22c, 22d, Disclosure Requirement “GOV-4: Statement on due diligence”, paragraph 32, Disclosure Requirement “GOV-5: Risk management and internal control over sustainability reporting”, paragraph 36a and Disclosure Requirement “IRO-1: Description of the processes to identify and assess material IROs”, paragraphs 53c, 53e, 53f, 53g. The long-term development and production cycles of the Company's wide range of products and services in a globalised supply chain and highly regulated environment make enterprise risk management (ERM) a crucial mechanism both to 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 the Divisions at each level of the organisation. It is designed to identify and manage relevant risks and opportunities. A sharp focus is put on the operational dimension due to the importance of programmes and operations for the Company. External factors are also considered, in order to strengthen the Company’s resilience. ERM is an operational process embedded into the day-to-day 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 and early warnings; robust risk mitigations; opportunities; and strong governance. The Company's performance and risks are managed through a strong interaction between the following four functions: Performance Management, ERM, Internal Control, and Corporate Audit, which are organised in a “three lines” model (i.e. embedded within the business lines (Performance Management), as control functions (ERM and Internal Control, which serve complementary functions) and in an auditing / review capacity (Corporate Audit). 3.2.1 ERM process The objectives and principles of 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 include the ISO 31000 standard for risk management, defined by the International Organization for Standardization. The ERM process consists of three elements: a strong operational dimension - derived from ISO 31000 - to enhance operational risk and opportunity management, identifying and mitigating threats and vulnerabilities, including single points of failure; 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 identified relevant sources of risks and opportunities that would potentially affect the Company's activities, its businesses and its organisation in the short, mid and long-term. The ERM process is part of the overall management process of the Company and is interrelated with such other processes. All Airbus organisations, including the Divisions, subsidiaries and controlled entities, commit to and confirm an effective implementation of the ERM system. The annual “ERM Confirmation Letter” issued by each Airbus organisation serves as their formal acknowledgement of their effective implementation of the ERM system. Airbus SE/ Report of the Board of Directors 2024 96
For the main risks to which Airbus is exposed, please refer to Section 3.1 “Risk Factors". 3.2.2 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 ERM system strategy and business risks and opportunities, as well as the design and effectiveness of the ERM system; the CEO authorises ERM reports to be escalated to the Board of Directors. The CFO is accountable for an effective ERM system and supervises the Head of ERM, 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. The Head of ERM supervises the operation of the ERM system, and is supported by a dedicated risk management organisation in the Company, focusing on the operational dimension, including early warning and anticipation culture development, while actively seeking to anticipate and proactively mitigate identified sources of risk by challenging the business to address such potential centres of risk within the Company. The risk management organisation is structured as a cross-divisional centre of competence and works to embed proactive risk management within the Company; and Company management at the executive level has responsibility for the operation and monitoring of the ERM system in their respective areas of responsibility, and for the implementation of appropriate response activities aimed at reducing risks and seizing opportunities, while also considering the recommendations of the internal and external auditors. 3.2.3 ERM effectiveness The ERM effectiveness is analysed by: ERM centre of competence (CoC), based on ERM reports, ERM Confirmation Letters, in situ sessions (e.g. risk reviews), participation in key controls (e.g. major programme maturity gate reviews); ERM key performance indicators (KPIs) measuring maturity and effectiveness of the ERM process within the Company’s various programmes and functions; risk and opportunity in-depth analyses proposed by the ERM CoC and performed by the functions with the involvement and support of the ERM CoC; and Corporate Audit engagements, which systematically include assessments of the design and effectiveness of the overall risk management system and ERM. The combination of the following controls is designed to achieve reasonable assurance regarding ERM effectiveness, as part of the Company’s internal ERM system: 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 are held at executive leadership meetings twice a year. Management ERM confirmation letter procedure Airbus SE/ Report of the Board of Directors 2024 97
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 CEO, Management and Governing Bodies on the design and effectiveness of the ERM system. Ethics & Compliance Alert system Detects deficiencies regarding conformity with applicable laws and regulations, as well as with ethical business principles. 3.2.4 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 the Board of Directors has 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 Board 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 Board Report states the material risks and uncertainties, to the extent that they are relevant to the Company's continuity for the period of 12 months after the preparation of this Board 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 the potential to override the controls in place. Consequently, no assurance can be given that the Company's internal risk management system and procedures are or will be, despite all care and effort, entirely effective. Airbus SE/ Report of the Board of Directors 2024 98
3.3 Insurance The Company’s Insurance Risk Management function (“IRM”) is established to proactively and efficiently respond to risks that can be mitigated by insurance. IRM is responsible for all corporate insurance activities and related protections for the Company and is empowered to deal directly with the insurance and re-insurance markets via the Company’s in-house broker entity. IRM’s ongoing objective in 2024 was to further implement and improve efficient and appropriate corporate and project-related 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 to cover insurable risk exposures beyond certain levels of magnitude. A systematic review, monitoring and reporting procedure applicable to each operating segment is in place to assess the exposure and protection systems applicable to all the Company’s physical sites. The Company’s insurance programmes likewise 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, product liability (aviation and non-aviation) and general liability (aviation and non-aviation). 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 subject to reasonable conditions, on acceptable terms and within acceptable limits, as available in the international insurance markets. The Company utilises its reinsurance captive in order to optimise its insurance strategy. A volatile global corporate insurance environment continued in 2024, due in large part to economic and geopolitical factors. The Company’s positive trajectory and its insurance strategy have allowed it to mitigate the impact of this volatile environment. That said, the insurance industry and risk factors that could impact the risk profile of the Company remain unpredictable. As most of the Company’s 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. Airbus SE/ Report of the Board of Directors 2024 99
3.4 Internal Control This section contains information incorporated by reference to address CSRD requirements related to Disclosure Requirement “GOV-5: Risk management and internal control over sustainability reporting”, paragraph 36a. The Company's governance includes an Internal Control function, which is in charge of defining and managing an internal control framework that encompasses all of the Company’s activities and which is applied across the Company, its divisions and controlled affiliates. “Internal control” is defined as a process that aims at providing reasonable assurance regarding the achievement of the Company’s operational, financial, and compliance objectives. An “Internal Control Referential” is being developed, which aims to provide a comprehensive overview of the Company’s key controls and the associated second line testing for the systemic risks meant (or necessary) to be addressed by the internal control system. This referential is currently under development and will be rolled out on an ongoing basis. The results of the yearly internal control cycles are reported to the Internal Control Committee, chaired by the CFO, which monitors the internal control system effectiveness, and to the Audit Committee. Based on findings, action plans are developed and monitored, to foster continuous improvement and increased performance. The Company implements its internal control system in accordance with some of the key guidelines from the Committee of Sponsoring Organisations (“COSO”) framework and the French financial market regulator (the AMF (Autorité des Marchés Financiers)). Airbus SE/ Report of the Board of Directors 2024 100
3.5 Internal Audit In accordance with the Dutch Corporate Governance Code, the Company’s governance includes an internal audit function “Corporate Audit”. Corporate Audit strengthens the Company’s ability to create, protect, and sustain value by endeavouring to provide the CEO, management and the other relevant corporate governing bodies with independent, risk-based, and objective advice on the Company’s activities, its regulatory compliance, its operational improvements and its performance. Corporate Audit covers all areas of the Company’s activities with a focus on key risks and priorities. Its mandate is set out in the Airbus Corporate Audit Charter. The function’s independence is established by direct reporting to the CEO, its participation to the Audit Committee, and by direct access and regular interaction with the Chair of the Audit Committee. The Corporate Audit function follows the Global Internal Audit Standards issued by The Institute of Internal Auditors. Airbus SE/ Report of the Board of Directors 2024 101
4 General Information on the Company and its Share Capital 4.1 Description of the Share Capital 4.1.1 Issued share capital As of 31 December 2024, Airbus SE's issued share capital amounted to € 792,283,683 divided into 792,283,683 shares of a nominal value of € 1 each. The issued share capital of Airbus SE as of such date represents 26.41% of the authorised share capital of € 3 billion, comprising three billion shares. The holder of one issued share has one vote and is entitled to profit in proportion to his/her participation in the issued share capital. 5 4.1.2 Modification of share capital or rights to acquire 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 the Company, 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 Section 4.2.7 “Relationship 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 votes cast during the shareholders' meeting, in the case where less than half of the capital issued is present or represented at said meeting. If at least half of the capital issued is present or represented at said meeting, all such resolutions require approval of the simple majority of the votes cast, see Section 4.2.2 “Right to attend shareholders' meetings”. Further, the Articles of Association provide that the shareholders' meeting is not authorised to pass any resolution to issue shares, or to grant rights to subscribe for shares, if the aggregate issue price (per share issuance) is in excess of € 500 million, and no preferential subscription rights exist in respect thereof (whether by virtue of Dutch law, or due to subscription rights being excluded by the competent corporate body). The same limitation applies if the shareholders' meeting wishes to grant the Board of Directors the authority to decide 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 Annual General Meeting (the "AGM") held on 10 April 2024, the power to issue shares, to grant rights to subscribe for shares and to limit or exclude preferential subscription rights for existing shareholders has 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 0.18% of Airbus SE's authorised share capital; and 2. funding Airbus SE and any of its subsidiaries, provided that such powers shall be limited to 0.3% of Airbus SE's authorised share capital. Such power has been granted for a period expiring at the AGM to be held in 2025, 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. 5 Except for the shares held by the Company itself and subject to certain other exceptions under Dutch law. Airbus SE/ Report of the Board of Directors 2024 102
At the AGM held on 10 April 2024, the Board of Directors was authorised for a period of 18 months from the date of such AGM to repurchase shares of Airbus SE, by any means, including derivative products, on any stock exchange or otherwise, as long as, upon such repurchase, Airbus SE would not hold more than 10% of Airbus SE'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. A cancellation of shares requires approval by a two-thirds majority of votes cast during the shareholders' meeting in the case where less than half of the capital issued is present or represented at the meeting. If more than half of the capital issued is present or represented at said meeting, a resolution to cancel shares requires approval of the simple majority of the votes cast, see Section 4.2.2 “Right to attend shareholders' meetings”. A reduction of nominal value by means of an amendment to the Articles of Association requires approval by a two-thirds majority of the votes cast during the shareholders' meeting (unless the amendment to the Articles of Association also entails amendment(s) requiring a 75% voting majority under the Articles of Association). At the AGM held on 10 April 2024, the Board of Directors and the CEO were authorised, with powers of substitution, to implement a cancellation of shares held or repurchased by Airbus SE, including the authorisation to establish the exact number of the relevant shares thus repurchased to be cancelled. 4.1.3 Securities granting access to Airbus SE's capital There are no securities that give access, immediately or over time, to the share capital of Airbus SE. For further information please refer to the IFRS Consolidated Financial Statements and the Notes to the IFRS Consolidated Financial Statements. 4.1.4 Changes in the issued share capital in 2024 In the course of 2024, a total number of 1,824,249 new shares were issued, all of which were issued in the framework of the 2024 Employee Share Ownership Plan ("ESOP"). During 2024 (i) Airbus SE repurchased 3,627,423 shares and (ii) none of its treasury shares were cancelled. As of 31 December 2024, Airbus SE held 4,327,432 treasury shares. Airbus SE/ Report of the Board of Directors 2024 103
4.2 Shareholding and voting rights 4.2.1 Shareholding Structure at the end of 2024 As of 31 December 2024, the French State held 10.83% of the outstanding Company shares through Sogepa, the German State held 10.82% 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 4.08% through SEPI. As of 31 December 2024, 73.72% of the outstanding Company shares were held by the public (including the Company’s employees), and the Company held (directly or indirectly) 4,327,432 of its own shares, equal to 0.55% of the issued share capital. These treasury shares owned by the Company do not carry voting rights. The diagram below shows the ownership structure of the Company as of 31 December 2024, reflecting % of capital and voting rights (in parentheses). Ownership Structure of Airbus SE as of 31 December 2024 For information on the obligation of entities to notify the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten) (the “AFM”) of “substantial” holdings, and a list of entities that have made such notification, please refer to Section 4.2.3 “Shareholdings and voting rights -Disclosure of Holdings". Airbus SE/ Report of the Board of Directors 2024 104
4.2.2 Right to attend shareholders' meetings Each holder of one or more shares may attend general meetings of shareholders of the Company (“General Meetings”), either in person or by written proxy, and may speak and vote according to the Articles of Association. 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 General 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 General Meetings are those who are on record in a register designated for that purpose by the Board of Directors on the 28th day prior to the day of the General Meeting (the "Registration Date"), irrespective of who may be entitled to the shares at the actual time of that meeting. As a prerequisite to attending the shareholders' meeting and to casting votes, Airbus SE, or alternatively an entity or person so designated by Airbus SE, 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. This notification must be received by Airbus SE or said designated person by the date (and time) mentioned in the convening notice. The notification should describe their intention to attend the General Meeting, their identity, as well as the composition, nature and size of their shareholding in accordance with the relevant convening notice. Shareholders holding their Airbus SE shares through Euroclear France S.A. who wish to attend General Meetings will have to request from their financial intermediary or account holder 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 Airbus SE. 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 account holder, 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, Airbus SE may provide for electronic means of attendance, speaking and voting at the General Meetings in such circumstances, and subject to such conditions, as determined by the Board of Directors. Calling of meetings General Meetings are held as often as the Board of Directors deems necessary, when required under the Dutch Civil Code or upon the request of one or more shareholders holding (individually or collectively) at least 10% of the total issued share capital of the Company. The AGM is held within six months of the end of the financial year. The Board of Directors must give notice of General Meetings through publication of a notice on the Company’s website (www.airbus.com), which will be directly and permanently accessible until the General Meeting. The Company must comply with the statutory rules providing for a minimum convening period, which currently require no less than 42 days’ notice. The convening notice must include certain statements and information as required under Dutch law. General Meetings are held in Amsterdam, The Hague, Rotterdam or Haarlemmermeer (Schiphol Airport). If the Board of Directors so decides, shareholders' meetings may be attended by means of electronic or video communication devices as may be specified in the convening notice. The Board of Directors must announce the date of the AGM at least ten weeks before the meeting. A matter which one or more shareholders or other parties with meeting rights individually or 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 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, the respective shareholder or shareholders are obliged to disclose their full economic interest to the Company, and 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 transmitted electronically. Airbus SE/ Report of the Board of Directors 2024 105
Majority and Quorum All resolutions are adopted by means of a simple majority of the votes cast in the General Meeting except when a qualified majority is prescribed by the Articles of Association or by Dutch law. No quorum is required for any General Meeting to be held, except as required under applicable law for a very limited number of resolutions of an extraordinary nature. Dutch law may require a special majority for the passing of certain resolutions: inter alia, capital reduction, exclusion of pre-emption rights in connection with share issues and statutory mergers or statutory de-mergers. The passing of such resolutions requires a simple majority if at least 50% of the share capital with voting rights is present at the shareholders’ meeting, and a majority of two-thirds of the votes cast if this 50% presence threshold is not met. 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 General 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 General Meeting, whatever the quorum present at such meeting. For further information please see Section 4.2.6 "Shareholding and voting rights -Amendments to the Articles of Association". Conditions of Exercise of Right to Vote In all General Meetings, each shareholder has one vote in respect of each share it holds. The major shareholders of the Company – as set forth in Section 4.2.7 “Shareholding and voting rights -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 (under which the usufructuary has the right to use and derive benefits from shares without owning them) shall have the voting rights attached 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. 4.2.3 Disclosure of Holdings The Company is subject to various legal provisions of the Dutch Financial Supervision Act (Wet op het financieel toezicht) (the “WFT”). 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 notice to the AFM through its online portal, 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. Pursuant to the Articles of Association, shareholders must notify the Company when meeting or crossing the thresholds above. The disclosures are published by the AFM on its website (www.afm.nl). According to the AFM register on substantial holdings, the below listed entities have notified the AFM of their substantial interest in the Company exceeding the below-mentioned thresholds, as of 18 February 2025: BlackRock Inc. owns 3.35% (0.34% indirect potential and 3.02% indirect real) and 4.01% (0.37% indirect potential and 3.64% indirect real) of the voting rights; Capital Research and Management Company owns 9.90% (0.27% indirect potential and 9.63% direct real) of the voting rights; TCI Fund Management Ltd. owns 3.02% and 3.02% of the voting rights. Airbus SE/ Report of the Board of Directors 2024 106
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 abovementioned thresholds. Except as described above, the Company is not aware of any other person or legal entity that, as of the date of this Board Report, 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. The Articles of Association also contain disclosure obligations for shareholders that apply when their interests in the Company reach or cross certain thresholds. 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 or at the end of the quarter if the change of its outstanding share capital or voting rights is smaller than 1%. Additional disclosure and/or publication obligations apply under European regulations for net short positions in respect of the Company. 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 an economic 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 6 held by them or their entity, within two weeks following their 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. 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 in a calendar year exceeds the applicable threshold. The applicable threshold was € 5,000 until 4 December 2024 and € 20,000 per calendar year from 4 December 2024. “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 but who have regular access to inside information relating directly or indirectly to the Company and power to take managerial decisions affecting future developments and the 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 6 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 bond. Equally, the term “voting rights” also includes actual or contingent rights to voting rights (e.g., embedded in call options, warrants or convertible bonds). Airbus SE/ Report of the Board of Directors 2024 107
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 limited periods and have specific information obligations to the Insider Trading Compliance Officer of the Company and the competent financial market authorities with respect to certain transactions. The Insider Trading Compliance Officer is responsible for the implementation of the Insider Trading Rules. 4.2.4 Mandatory disposal 4.2.4.1 Notification requirements and mandatory disposal threshold restricting ownership to 15% Under the Articles of Association, each shareholder must notify Airbus SE when it (or another party in respect of its interest in Airbus SE) must make a notification to the AFM of a substantial interest or short position with respect to Airbus SE, 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. Failure to comply with these obligations may, subject to a prior notification by Airbus SE, 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 Airbus SE, 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, such that they must be notified to the AFM if certain thresholds are reached or crossed. Any shareholder having an interest exceeding the Mandatory Disposal Threshold must reduce its interest below the Mandatory Disposal Threshold within two weeks after such notification by Airbus SE. Upon receipt of such notification, the voting, attendance and dividend rights attached to the shares exceeding the Mandatory Disposal Threshold 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 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 Airbus SE 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 Airbus SE, any “grandfathered” persons and their affiliates, and any holder of depositary receipts and their affiliates. Note that Airbus SE has agreed to cover the foundation's expenses and indemnify its Board members against liability, for further information please refer to Section 4.2.4.2 “Shareholding and voting rights -Exemptions from mandatory disposal threshold”; the board members of the foundation are appointed (except for the initial Board Members who were appointed at incorporation) and dismissed by the management board of the foundation (Airbus SE may, however, appoint one board member in a situation where there are no foundation board members); the foundation has no discretion as to the exercise of voting rights attached to any of the Airbus SE 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 Airbus SE to Airbus SE/ Report of the Board of Directors 2024 108
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 group of shareholders, "Excess Shares" are the shares that exceed the Mandatory Disposal Threshold. This threshold is defined in the Articles of Association as the lower of two amounts: (i) the shares that represent the percentage by which the shareholder's or group's interest exceeds this threshold, and (ii) all the shares held by such shareholder or group. This rule is included in the Articles of Association to ensure Airbus SE's governance remains stable, to increase the number of shares available for public trading, and to protect the interests of Airbus SE and its stakeholders. It limits the influence of any shareholder or group of shareholders holding an amount of shares above the given threshold, except in the case of a public takeover offer that is accepted by shareholders holding at least 80% of the share capital referred to below. 4.2.4.2 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 SE 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. Airbus SE has confirmed that: (i) the specific exemption in Article 16.1.b of the Articles of Association applies to Sogepa, as it held more than 15% of the outstanding Airbus SE's 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, GZBV and SEPI, as they held more than 15% of the outstanding Airbus SE voting rights and shares, including the legal and economic ownership thereof, on the Exemption Date. 4.2.5 Mandatory public offer 4.2.5.1 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. 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 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. 4.2.5.2 Dutch Law In accordance with Dutch law, shareholders are required to make a public offer for all issued and outstanding shares in Airbus SE's share capital if they – individually or acting in concert (as such terms are defined under Dutch law summarised below), directly or indirectly – have 30% or more of the voting rights (significant control) in Airbus SE. 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 provisions under Dutch law came into force, already held – individually or acting in concert – 30% or more of the voting rights in Airbus SE. In the case of such a concert, a new member of the concert can be exempted if it satisfies certain conditions. Airbus SE/ Report of the Board of Directors 2024 109
4.2.6 Amendments to the Articles of Association According to the Articles of Association, resolutions to amend the Articles of Association require a two-thirds majority of the votes validly cast at a general meeting of shareholders, unless they concern amendments to a limited number of provisions thereof, in which case a 75% voting majority would be required. The proposal containing the literal text of a proposed amendment must be available for inspection by shareholders at Airbus SE's headquarters, from the day the meeting is convened until after the end of the meeting. 4.2.7 Relationship with principal shareholders In 2013, GZBV, a subsidiary of KfW, 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 Airbus SE. Airbus SE has also entered into state security agreements with each of the French state and German state, which are also described in more detail below. 4.2.7.1 Shareholder arrangements Grandfathering agreement 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 concert with respect to Airbus SE (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 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 Airbus SE, 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 Airbus SE to that effect. Notification to the Company Airbus SE 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 post-Concert Grandfathering Agreement, or (ii) a copy of a binding advice rendered by three independent, impartial and Airbus SE/ Report of the Board of Directors 2024 110
neutral Expert Adjudicators in order to settle any dispute between the Parties arising out of, or in connection with, the post-Concert Grandfathering Agreement. Airbus SE 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: 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. However, any such disputes may be submitted to the exclusive jurisdiction of the courts of the Netherlands to resolve any such dispute, controversy or claim. Governance of the Company 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 Airbus SE by Sogepa, GZBV and SEPI (all parties together, the "Shareholders"). 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 Airbus SE 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 a member of the Board of Directors of Airbus SE, provided such person qualifies as an independent Director pursuant to the conditions set forth in the rules governing the internal affairs of the Board of Directors (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 always be dismissed at the general meeting. 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 (the "Reserved Matters"), all the Directors shall be free to express their own views. If the implementation of a Reserved Matter requires a decision of the shareholders' meeting of Airbus SE, then 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, they 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 to pursue their common objective to seek a balance between themselves and their respective interests in Airbus SE as follows: Airbus SE/ Report of the Board of Directors 2024 111
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; and 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. 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 Airbus SE, 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). 4.2.7.2 Undertakings with respect to interests of certain stakeholders Airbus SE has made undertakings and entered into agreements in connection with interests of certain stakeholders. State security agreements and related undertakings Airbus SE and the French state have entered into an amendment to the existing convention between them relating to the Company's ballistic missiles business (as amended, the "French State Security Agreement"). Under the French State Security Agreement, certain sensitive French military assets are held by an Airbus SE 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 on 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 are 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 Airbus SE. French Defence Outside Directors may neither (i) be employees, managers or corporate officers of a company belonging to Airbus SE (although they may be members of the Board of Directors of Airbus SE) nor (ii) have material ongoing professional relationships with Airbus SE. Airbus SE/ Report of the Board of Directors 2024 112
Pursuant to the French State Security Agreement, Airbus SE has granted to the French state: (a) a veto right, and subsequently a call option, on the shares of the Airbus SE subsidiary performing 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 Airbus SE, 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. Airbus SE and the German state have entered into an agreement, and an amendment agreement, to the 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 an Airbus SE 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 are members of the Board of Directors. Two of the German Defence Outside Directors are required also to 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. Pursuant to the German State Security Agreement, Airbus SE 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 Airbus SE, 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 Airbus SE intends to allocate the sensitive activities outside Germany or to give up the sensitive activities. In February 2021, Airbus SE 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, Airbus SE 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 a case, the Spanish state has the right to acquire the sensitive assets. Dassault Aviation Airbus SE entered into an agreement with the French state pursuant to which Airbus SE: 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. As of 31 December 2024, Airbus SE held 10.53% of Dassault Aviation's share capital and 6.35% of its voting rights. Stock exchange listings Airbus SE has undertaken to the parties to the Shareholders' Agreement that, for the duration of the Shareholders' Agreement, Airbus SE's shares will remain listed exclusively in France, Germany and Spain. 4.2.8 Purchase by the Company of its own shares 4.2.8.1 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 Airbus SE/ Report of the Board of Directors 2024 113
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 held on 10 April 2024, see Section 4.1.2 “Modification of share capital or rights to acquire shares”. 4.2.8.2 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 the most relevant trading venue (in terms of liquidity in the Company’s shares) 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 certain information relating to the share repurchase within the same time frame. 4.2.8.3 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 Section 4.2.8.2 “Purchase by the Company of its own Shares -European Regulation”. In addition, the French Authority for the Financial Markets (Autorité des marchés financiers) (the “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. 4.2.8.4 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 Section 4.2.8.2 “Purchase by the Company of its own Shares -European Regulation” also applies to the Company in Germany. 4.2.8.5 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 Section 4.2.8.2 “Purchase by the Company of its own Shares -European Regulation” also applies to the Company in Spain. Airbus SE/ Report of the Board of Directors 2024 114
4.3 Share price performance 2024 Over the course of 2024, the Airbus SE share price experienced volatility, and closed out the year at € 154.78. In January, the Company’s share price was supported by the 2023 Orders and Deliveries announcement. Following the full-year 2023 earnings release in February, the Company’s share price had an initial negative reaction. This was attributed to a slight disappointment linked to the profitability of the Commercial Aircraft business in Q4 2023 as well as the market’s perception of 2024 guidance being conservative. This negative sentiment was reversed shortly after, and together with the overall rise of equity markets driven by optimism over the economy and interest rate cuts in 2024, the share price was lifted to a new record high recorded on March 27th (closing price €170.55). The second quarter started with a weak performance of equity markets, driven by profit-taking in the first half of April and continued geopolitical tensions across the globe. Global stocks rebounded in May, largely driven by the US market. The positive trend in the US extended to June, while Europe and other equity markets traded sideways. In this context and amid reports on production delays and continued supply chain challenges, the Company’s share price retreated. In June, the Company’s shares widened their losses, initially due to political uncertainty in France, then followed by a major drop resulting from the 2024 guidance update and the announcement of adjustments to the ramp-up trajectory. During the third quarter, the Company’s share price remained volatile. It had an initial positive reaction following the H1 2024 earnings release, which exceeded market expectations, however the share price was also affected by the general macroeconomic environment in August, fluctuating broadly in line with the market. In early September, the Company’s share price was initially weighed down by uncertainty surrounding an in-flight failure of an A350 engine component on a Cathay Pacific flight, lower than expected commercial aircraft deliveries in August and engine manufacturers’ comments on output and Q3 outlook challenges. The evolution of the Cathay Pacific situation, with the incident being declared not an immediate safety risk and rather tied to maintenance procedures, contributed to reversing the negative sentiment. The fourth quarter started with an overall weak performance in equity markets, impacted by escalations of the conflict in the Middle East. However, the negative sentiment was reversed by easing inflation pressures, which strengthened market expectations on a continued path of interest rate cuts from central banks. In parallel, the Company’s share price outperformed, first reacting positively to the announcement of the Airbus Defence and Space workforce adaptation plan, and then to the better than anticipated 9m 2024 financial results. While the US market rallied following the outcome of the US presidential elections, European markets were weighed down by the potential adverse impact of more protectionist trade policies that may be implemented by the incoming administration. In this context, the Company’s share price continued to outperform, supported in part by the decision of engine manufacturers to divert some A320 engines from the aftermarket to Airbus and by a solid level of commercial aircraft deliveries in November, which reassured the market on the year-end delivery target. With a performance of +11% in 2024, Airbus SE shares outperformed the CAC40 index (-2%) but underperformed the DAX40 index (+19%) and the broader aerospace and defence sector (MSCI World Aerospace and Defence +18%). Airbus SE/ Report of the Board of Directors 2024 115
4.4 Dividends 4.4.1 Dividend Policy of the Company and Dividend Proposal 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%. The Board of Directors will propose to the Annual General Meeting the payment to shareholders on 24 April 2025 of a dividend of € 2.00 per share (FY 2023: € 1.80), corresponding to a pay-out ratio of 37%. In addition, the Board of Directors will propose to the Annual General Meeting the payment of a special dividend of € 1.00 per share. This reflects the Company’s confidence in its future financial performance as well as its commitment to growing shareholder return. The record date should be 23 April 2025. 4.4.2 Unclaimed Dividends Pursuant to the Articles of Association, a claim for payment of a dividend or other distribution approved by the shareholders’ meeting shall lapse five years after the date on which such claim becomes due and payable. The claim for payment of interim dividends shall lapse five years after the date on which the claim for payment of the dividend against which the interim dividend could be distributed becomes due and payable. Airbus SE/ Report of the Board of Directors 2024 116
4.5 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. 4.5.1 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, the UK, all European Union Member States and other countries. 4.5.2 Conditional Withholding Tax on Dividends A conditional withholding tax may apply at the highest corporate tax rate (presently 25.8%) on dividends distributed by the Company to an affiliated (gelieerde) entity of it if such entity (i) is considered to be resident (gevestigd) in a jurisdiction that is listed in the annually updated Dutch Regulation on low-taxing states and non-cooperative jurisdictions for tax purposes (Regeling laagbelastende staten en niet-coöperatieve rechtsgebieden voor belastingdoeleinden), or (ii) has a permanent establishment located in such jurisdiction to which the dividend is attributable, or (iii) is entitled to the dividend payable for the main purpose or one of the main purposes to avoid taxation for another person, or (iv) is not considered to be the recipient of the dividend in its jurisdiction of residence because such jurisdiction treats another (lower-tier) entity as the recipient of the dividend (a hybrid mismatch), or (v) is not treated as resident anywhere (also a hybrid mismatch), or (vi) is a reverse hybrid whereby the jurisdiction of residence of a participant that has a qualifying interest (kwalificerend belang) in the reverse hybrid treats the reverse hybrid as tax transparent and that participant would have been taxable based on one (or more) of the items in (i)-(v) above had the dividend been payable to the participant directly, all within the meaning of the Withholding Tax Act 2021 (Wet bronbelasting 2021). If the dividend withholding tax and the conditional dividend withholding tax are both applied, the conditional dividend withholding tax will be reduced by the actual dividend withholding tax levied. As a result, in such circumstance the aggregate tax rate on dividends may rise from 15% to the highest corporate tax rate (presently 25.8%). 4.5.3 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 Section 4.5.1 “Withholding Tax on Dividends” and Section 4.5.2 “Conditional Withholding Tax on Dividends per 2024” above. Airbus SE/ Report of the Board of Directors 2024 117
4.5.4 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. 4.5.5 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. 4.5.6 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. 4.5.7 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. 4.5.8 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. Airbus SE/ Report of the Board of Directors 2024 118
5 Financial Information The following financial information should be read together with the Company’s IFRS Consolidated Financial Statements as of and for the years ended 31 December 2024 and 2023. 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. The following financial information 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. Exchange rate 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 2024 1.0824 0.8466 1,0389 0.8292 31 December 2023 1.0813 0.8698 1.1050 0.8691 Airbus SE/ Report of the Board of Directors 2024 119
5.1 Financial Performance Key Figures (In € million) 2024 2023 Revenues 69,230 65,446 EBIT Adjusted 5,354 5,838 EBIT (reported) 5,304 4,603 Net Income 4,232 3,789 FCF before Customer Financing (1) 4,463 4,532 FCF (1) 4,461 4,096 (1) The Company has decided to update the definition of the Alternative Performance Measure Free Cash Flow in line with market practices to better reflect the underlying cash generation performance of its operations. Going forward, Mergers and Acquisitions transactions will be excluded from this definition. This applies from 1 January 2024 onwards. Revenue and EBIT (reported) by Business Segment Revenues EBIT (reported) (In € million) 2024 2023 Change 2024 2023 Change Airbus 50,646 47,763 +6% 5,133 3,610 +42% Airbus Helicopters 7,941 7,337 +8% 818 717 +14% Airbus Defence and Space 12,082 11,495 +5% (656) 220 - Eliminations (1,439) (1,149) - 9 56 - Total 69,230 65,446 +6% 5,304 4,603 +15% Revenue Revenue increased 6% year-on-year to € 69.2 billion (2023: € 65.4 billion). A total of 766 commercial aircraft were delivered (2023: 735 aircraft), comprising 75 A220s, 602 A320 Family, 32 A330s and 57 A350s. Revenues generated by Airbus’ commercial aircraft activities increased 6% to € 50.6 billion, mainly reflecting the higher number of deliveries. Airbus Helicopters’ revenues increased 8% to € 7.9 billion, reflecting higher deliveries of 361 units (2023: 346 units), a solid performance across programmes as well as growth in services. Revenues at Airbus Defence and Space increased 5% year-on-year to € 12.1 billion, mainly driven by the Air Power business. Seven A400M military airlifters were delivered (2023: 8 aircraft), including the first for Kazakhstan. EBIT EBIT (reported) amounted to € 5,304 million (2023: € 4,603 million), including net Adjustments of € -50 million. EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – was € 5,354 million (2023: € 5,838 million). The Company continues to use the term EBIT (Earnings Before Interest and Taxes). It is identical to profit before finance result and income taxes as defined by IFRS accounting standards. EBIT Adjusted related to Airbus’ commercial aircraft activities increased to € 5,093 million (2023: € 4,818 million), with the positive impact from higher deliveries being partially reduced by investments for preparing the future. Airbus Helicopters’ EBIT Adjusted increased to € 818 million (2023: € 735 million), reflecting the higher deliveries, a solid performance across programmes and growth in services. Airbus SE/ Report of the Board of Directors 2024 120
EBIT Adjusted at Airbus Defence and Space was € -566 million (2023: € 229 million), reflecting charges of € 1.3 billion in Space programmes, including € 0.3 billion in the fourth quarter resulting from the completion of the in-depth technical review. On the A400M programme, an additional update of the contract estimate at completion was performed and a net charge of € 121 million recorded, reflecting mainly updated assumptions regarding the new contract amendment with the launch nations and OCCAR and risk in the production plan. In light of uncertainties regarding the level of aircraft orders, the Company continues to assess the potential impact on the programme's manufacturing activities. Risks on the qualification of technical capabilities and associated costs remain stable, with no major variations compared to 2023. The following table reconciles the Company’s EBIT with its EBIT Adjusted. Airbus Consolidated (In € million) FY 2024 FY 2023 EBIT (reported) 5,304 4,603 $ working capital mismatch and balance sheet revaluation +101 -1,030 A400M charge -121 -41 Aerostructures transformation 0 -89 Airbus OneWeb Satellite +51 0 Airbus Beluga Transport business -40 0 Others -41 -75 EBIT Adjusted 5,354 5,838 These Adjustments comprised: € +101 million impact related to the dollar working capital mismatch and balance sheet revaluation, of which € +247 million were in Q4. This mainly reflects the phasing impact arising from the difference between transaction date and delivery date; € -121 million related to the A400M, of which € -118 million were in Q4; € +51 million related to the gain on Airbus OneWeb Satellites, linked to the acquisition of the remaining 50% of the joint venture in Q1; € -40 million related to the recently announced termination of the Airbus Beluga Transport business; € -41 million of other costs including compliance and M&A, of which € -31 million were in Q4. Financial result Financial result was € 121 million (2023: € 166 million). The financial result mainly reflects the revaluation of certain equity investments and the evolution of the US dollar, partially offset by the interest result and the revaluation of financial instruments. Net income Net income was € 4,232 million (2023: € 3,789 million) with reported earnings per share of € 5.36 (2023: € 4.80). Airbus SE/ Report of the Board of Directors 2024 121
Total Equity The Company’s shares are exclusively ordinary shares with a par value of € 1.00. The following table shows the development of the number of shares issued and fully paid: (In number of shares) 2024 2023 Issued at 1 January 790,459,434 788,205,008 Issued for ESOP 1,824,249 2,254,426 Issued at 31 December 792,283,683 790,459,434 Treasury shares (4,327,432) (3,037,467) Outstanding at 31 December 787,956,251 787,421,967 Holders of ordinary shares are entitled to dividends and to one vote per share at general meetings of the Company. Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to € 19,606 million (2023: € 17,695 million) representing an increase of € +1,911 million. This is mainly due to the net income for the period of € +4,232 million and partly offset by a dividend payment of € -2,215 million (a dividend of € 1.00 per share and a special one of 1.80 € per share). The non-controlling interests (“NCI”) from non-wholly owned subsidiaries increased to € 90 million as of 31 December 2023 (2023: € 35 million). These NCI do not have a material interest in the Company’s activities and cash flows. Net Cash The Company defines its consolidated net cash position as the sum of (i) cash and cash equivalents and (ii) securities, minus (iii) financing liabilities, plus or minus (iiii) interest rate contracts related to fair value hedges (all as recorded in the Consolidated Statement 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 is comprised of the following elements: 31 December (In € million) 2024 2023 Cash and cash equivalents 15,003 16,469 Current securities 2,829 1,301 Non-current securities 9,032 7,508 Gross cash position 26,864 25,278 Short-term financing liabilities (3,924) (3,389) Long-term financing liabilities (10,355) (10,202) Interest rate contracts (832) (961) Total 11,753 10,726 The net cash position on 31 December 2024 amounted to € 11,753 million (2023: € 10,726 million), with a gross cash position of € 26,864 million (2023: € 25,278 million). Please also refer to “Notes to the IFRS Consolidated Financial Statements - Note 36: Net Cash”. Airbus SE/ Report of the Board of Directors 2024 122
Financing Liabilities 31 December (In € million) 2024 2023 Bonds and commercial papers 7,986 8,250 Liabilities to financial institutions 382 323 Loans 291 233 Lease liabilities 1,696 1,396 Total long-term financing liabilities 10,355 10,202 Bonds and commercial papers 556 817 Liabilities to financial institutions 26 1 Loans 85 81 Lease liabilities 253 221 Others (1) 3,004 2,269 Total short-term financing liabilities 3,924 3,389 Total 14,279 13,591 (1) Included in “others” are financing liabilities to joint ventures. Long-term financing liabilities, mainly comprising of bonds and lease liabilities, increased by € +153 million to € 10,355 million (2023: € 10,202 million), mainly due to higher lease liabilities and increase in the value of bonds partly offset by bonds reclassification to short-term liabilities (EMTN 5 years). Short-term financing liabilities increased by € +535 million to € 3,924 million (2023: € 3,389 million) mainly due to the EMTN 5 years reclassification in short-term financing liabilities maturing in April 2025 and financing liabilities to joint ventures partly offset the EMTN 10 years bond repayment in April 2024. Airbus SE/ Report of the Board of Directors 2024 123
Free Cash Flow The Company defines Free Cash Flow as the sum of (i) cash provided by operating activities and (ii) investments in intangible and fixed assets (net) & dividends paid by companies valued at equity, minus (iii) contribution to plan assets of pension schemes, (iv) realised foreign exchange results on treasury swaps and (v) change in cash from changes in consolidation. It is an alternative performance measure and key indicator which allows the Company to measure the amount of cash flow generated by its operations. in € million FY 2024 FY 2023 Gross Cash Flow from Operations (1) 6,570 5,718 Change in working capital (2) 1,266 1,204 Investments in intangible and fixed assets (net) & Dividends paid by companies valued at equity (3,375) (2,826) of which Industrial CapEx (additions) (3) (3,669) (3,051) Free Cash Flow (4) 4,461 4,096 of which Customer Financing (2) (436) Free Cash Flow before Customer Financing 4,463 4,532 (1) Excluding working capital change, contribution to plan assets of pension schemes and realised FX results on treasury swaps (2) Including net customer financing and excluding some perimeter change impacts from changes in consolidation (3) Excluding leased and financial assets (4) Excluding change in securities, change in cash from changes in consolidation, contribution to plan assets, realised FX results on treasury swaps and bank activities Order Intake and Order Book Gross commercial aircraft orders totalled 878 (2023: 2,319 aircraft) with net orders of 826 aircraft after cancellations (2023: 2,094 aircraft). The order backlog amounted to 8,658 commercial aircraft at the end of December 2024. Airbus Helicopters registered 450 net orders (2023: 393 units), with a book-to-bill ratio above 1 both in units and value highlighting strong demand for the Division’s platforms. There was also good order intake for helicopter services. Airbus Defence and Space’s order intake by value increased to a record € 16.7 billion (2023: € 15.7 billion), corresponding to a book-to-bill of around 1.4. Fourth quarter orders included 25 additional Eurofighter military aircraft for Spain. Consolidated order intake by value decreased to € 103.5 billion (2023: € 186.5 billion) with the consolidated order book valued at € 629 billion at the end of 2024 (year-end 2023: € 554 billion). The increase in the consolidated backlog value mainly reflects the Company-wide book-to-bill of above 1, and the strengthening of the US dollar. Order Intake and Order Book by Business Segment (pre-elimination) Airbus SE/ Report of the Board of Directors 2024 124 Order Intake (net) Order Book 2024 2023 Change 2024 2023 Change Airbus (in units) 826 2,094 -61% 8,658 8,598 +0% Airbus (in € million) 77,413 162,571 -53% 558,925 490,812 +14% Airbus Helicopters (in units) 450 393 +15% 893 804 +6% Airbus Helicopters (in € million) 10,071 8,597 +15% 24,064 21,525 +11% Airbus Defence and Space (in € million) 16,710 15,701 +6% 46,803 42,195 +11%
5.2 Information on Airbus SE auditors Date of first appointment Expiration of current term of office (1) EY Accountants B.V. Boompjes 258 3011 XZ Rotterdam Postbus 488 3000 AL Rotterdam The Netherlands Represented by N.M. Pul 28 April 2016 15 April 2025 (1) A resolution will be submitted to the Annual General Meeting of Shareholders to be held in April 2025, in order to appoint EY Accountants B.V. as the Company’s auditors for the 2025 financial year. EY Accountants B.V. 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. Assuming the appointment of EY Accountants B.V. as the Company’s auditors for 2025, at the end of 2025 EY Accountants B.V. will reach the maximum engagement period under Dutch law (10 years). As such, the Company has initiated a selection process for a successor to EY Accountants B.V. as the Company’s auditor, beginning with the 2026 financial year. Airbus SE/ Report of the Board of Directors 2024 125
6 Non-Financial Information: Sustainability Statement Airbus SE/ Report of the Board of Directors 2024 126
6.1 General Information 6.1.1 ESRS 2 - General disclosure, including information provided under the Application Requirements of topical ESRS listed in ESRS 2 Appendix C 6.1.1.1 BP: Basis for Preparation 6.1.1.1.1 BP-1: General basis for preparation of the sustainability statement This sustainability statement has been prepared on a consolidated basis. The consolidation scope is aligned with the scope of the consolidated financial statements of the Company. When an information relates to a different perimeter - e.g. when the consolidation perimeter for a given metric differs -, the specificities are laid out in the respective section of this report. As controlled by the Company and covered by this sustainability statement, all controlled subsidiaries are exempted from individual or consolidated sustainability reporting pursuant to Articles 19a(9) or 29a(8) of Directive 2013/34/EU. Detailed information is available on airbus.com in the document “Information on Principal Investments” on: https://www.airbus.com/en/about-us/our-governance/governance-framework-and-documents. This sustainability statement covers the Company’s own operations, upstream value chain and downstream business relationships related to the direct use of its products. The double materiality assessment has been performed on the basis of this value chain. When relevant, details about specific scopes for certain policies, actions, metrics or targets can be found in connection with the information it concerns. In addition, and for the sake of clarity, the Company uses the terms “own operations" and "operationally controlled entities” as per ESRS E1 provisions and extends their use, with the same meaning, to subsequent environmental ESRSs, as the Company’s approach to a number of topics applies to the combination of these two perimeters. The Company has omitted certain information, in accordance with the Corporate Sustainability Reporting Directive's article on permitted omissions of seriously prejudicial information (CSRD, article 19a) as well as the section on intellectual property or results of innovation (ESRS 1, section 7.7). This article is included in the latest draft law transposing the CSRD in the Netherlands, where the Company is incorporated. For the sake of clarity this comes in addition to certain datapoints that may have been omitted as deemed not material information about topic management in view of the actual impact/risk/opportunity (IRO) boundaries (materiality of information, see ESRS 2 “– 6.1.4.2 IRO-2: Disclosure requirements in ESRS covered by the undertaking’s sustainability statement”). 6.1.1.1.2 BP-2: Disclosures in relation to specific circumstances Time Horizons In this sustainability statement, unless stated otherwise, short-, medium- and long-term horizons are aligned with time horizons used in the financial statements and referenced in ESRS 1 6.4 paragraph 77. By exception and in line with common practices and better reflecting the speed of onset of climate related impacts, time horizons in the context of climate change are considered on a wider scale and specified in the chapter E1 Climate Change. Value Chain Estimations In some circumstances when information is not available for a certain scope or for certain quantitative metrics related to its value chain, the Company may use estimates or proxies it considers relevant to provide a representation of a given topic. These are identifiable through related explanations and assumptions that are presented close to the concerned information (in methodological notes for instance), and with the objective to enable the reader to get an appreciation of the degree of accuracy that would result from their use. When relevant, it may also include a description of contemplated actions to improve the accuracy in the future. Airbus SE/ Report of the Board of Directors 2024 127
Sources of estimation and outcome uncertainty In some circumstances when information is not available for a certain scope or for certain quantitative metrics, including monetary amounts, the Company uses estimates or proxies it considers relevant to provide a representation of a given topic. Such assumptions are presented in connection to the concerned information (in methodological notes for instance) with the objective to enable the reader to get a fair appreciation of the degree of uncertainty that would result from their use. Incorporation by reference The table below includes a list of disclosure requirements that have been incorporated by reference to another section of the Board of Directors report entirely when such complementary information is deemed to be necessary to meet disclosure requirements. ESRS Disclosure requirements Paragraph Supporting sections from Airbus SE Report of the Board of Directors 2024 2 GOV-1: The role of the administrative, management and supervisory bodies 21, 23 21, 23 22a 22c, 22d – Corporate Governance – 2.1.1 Board of Directors Composition of the Board of Directors – Corporate Governance – 2.2.1 Nomination and Composition of the Executive Committee – Corporate Governance – 2.1.4 Board Committees – Risk Management and Internal Controls – 3.2 Enterprise Risk Management System 2 GOV-2: Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies 26a – Corporate Governance – 2.1.4 Board Committees 2 GOV-3: Integration of sustainability-related performance in incentive schemes 29 – Corporate Governance – 2.3 Remuneration Report – Corporate Governance – 2.3.2 Implementation of the Remuneration Policy in 2024: CEO 2 GOV-4: Statement on due diligence 32 – Risk Management and Internal Controls – 3.2 Enterprise Risk Management System 2 GOV-5: Risk management and internal control over sustainability reporting 36a – Risk Management and Internal Controls – 3.2 Enterprise Risk Management System – Risk Management and Internal Controls – 3.4 Internal Control 2 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 48d, 48e, 48f – “Notes to the IFRS Consolidated Financial Statements - Note 3. Climate Impacts” 2 IRO-1: Description of the processes to identify and assess material IROs 53c, 53e, 53f, 53g – Risk Management and Internal Controls – 3.2 Enterprise Risk Management System 6.1.1.2 GOV: Governance 6.1.1.2.1 GOV-1: The role of the administrative, management and supervisory bodies Airbus SE's Board of Directors is presented in “– Corporate Governance – 2.1.1 Board of Directors Composition of the Board of Directors”, including information on composition, experience and diversity. There is no employee representative on the Board of Directors. The Company’s Executive Committee is presented in “– Corporate Governance – 2.2.1 Nomination and Composition of the Executive Committee”, including information on composition. Airbus SE/ Report of the Board of Directors 2024 128
BOARD OF DIRECTORS Unit 2024 Number of Directors No. 12 Number of independent directors No. 11 Percentage of independent directors % 92% Number of executive directors No. 1 Number of non-executive directors No. 11 Number of women No. 5 Number of men No. 7 Percentage of women % 42% Percentage of men % 58% Average age Years 60 Number of nationalities No. 7 Average tenure Years 6 EXECUTIVE COMMITTEE Unit 2024 Number of women No. 3 Number of men No. 9 Percentage of women % 25% Number of Executive Committee meetings No. 4 Airbus SE's Board of Directors and the Company’s Executive Committee respectively oversee and approve strategic decisions, including on sustainability matters. Company’s corporate governance, including the roles and responsibilities of the administrative, management and supervisory bodies, are described in “– Corporate Governance – 2.1.4 Board Committees”. Since 1 January 2024, the Company further strengthened sustainability-related activities with the creation of a Chief Sustainability Officer (“CSO”) position. Hence, Julie Kitcher has been appointed Chief Sustainability Officer and Communications and remains a member of the Executive Committee. Her role includes ensuring the proper information to and the involvement of the Company’s Executive Committee and the Ethics, Compliance and Sustainability Committee on sustainability matters. Directly supporting the oversight role of Board of Directors: - the Audit Committee oversees risks and opportunities, among other matters related to financial reporting and audit activities, including sustainability related ones; and - the Ethics, Compliance and Sustainability Committee ("ECSC") oversees, among other matters, the sustainability strategy, including IROs. The Airbus SE Internal Rules for the Board of Directors ("Board Rules") describe the responsibilities of these committees. 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. 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. The rules and responsibilities of the Board and its committees, including the Audit Committee and the ECSC, have been set out in the Board Rules. For a complete list of responsibilities of the Audit Committee and the ECSC, please refer respectively to Annex E and Annex G of the Board Rules. For more information on the ECSC, see “– 6.1.2.2 GOV-2: Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies” hereafter. In addition, with regards to risk management, sustainability risks and opportunities are fully embedded in the Company’s ERM system. For further information on ERM and on Internal Control, see “– Corporate Governance – 3.2 Enterprise Risk Management System”. As such, sustainability-related risks and opportunities are consolidated quarterly in a dedicated ERM report, which is reviewed by the CSO. Top Sustainability Risks and Opportunities are presented to the Board of Directors on a quarterly basis as part of the Company’s ERM quarterly report presentation to the Audit Committee. IRO management responsibility, including target setting on sustainability matters, the monitoring of progress and of action plans, is delegated to the relevant topical governance bodies and roadmaps, as presented in the next section (see “– 6.1.1.2.2 GOV-2: Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies”) while targets are also reviewed periodically by the Executive Committee and the Board of Directors. The reporting lines to the Board of Directors are also detailed in the next section. Airbus SE/ Report of the Board of Directors 2024 129
Directly supporting the Board of Directors, the Remuneration, Nomination and Governance Committee is tasked to ensure the Board of Directors collectively possesses relevant skills and expertise to fulfil their duties, including on sustainability matters. Such analysis is performed in the context of the identification and appointment of new Board members, as well as on a periodic basis, at least every three years, when an in-depth review is completed that takes into consideration business context evolution and emerging trends. Sustainability skills cover the following matters: the environment - including knowledge of climate and the energy sector -, social, human rights and business conduct; consistent with identified IROs (see hereafter). Currently five out 12 directors are assessed as having meaningful sustainability skills in view of the Company’s strategy and challenges (see “– Corporate Governance – 2.1.1 Board of Directors composition”). The biographies of Board members can be found on the airbus.com website, offering insights into their experience, including information on their experiences as executives that implied an expertise on business conduct matters. Certain Board members bring their own expertise related to certain key sustainability related topics and have been selected for such expertise. In addition, relevant information and knowledge is shared with the Board of Directors for topics that are discussed in the ECSC and including those related to IROs. 6.1.1.2.2 GOV-2: Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies In order to properly inform or involve the Board of Directors and the Executive Committee, the Company has a defined dedicated supporting governance, including at the highest level. Oversight has been established at the Board of Directors level, with the ECSC. For further information about the ECSC, see “– Corporate Governance – 4.1 Management and Control”. The ECSC meets quarterly and is responsible for assisting the Board of Directors to oversee the following: Culture and commitment to ethical business, integrity and sustainability; Ethics and Compliance programme, organisation and framework for the effective governance of ethics and compliance, including all associated internal policies, procedures and controls, which include 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; and Sustainability strategy and effective governance, including the review of sustainability-related material impacts, risks and opportunities, the setting of targets related to material impacts, also in order 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 day-to-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. Alignment on sustainability between the Board of Directors and the Company leadership team is also supported by the regular attendance of the Chief Sustainability Officer and Communications, an Executive Committee member, to the ECSC. The Chief Sustainability Officer and Communications has top level accountability on sustainability related matters at Executive Committee level. 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, that, amongst other things, steer related topics and oversee performance, results and effectiveness of policies, action plans and progress: The Sustainability Strategy Committee, which reviews sustainability performance and progress at least once a year, aims to ensure alignment across all sustainability topics. It is co-chaired by the Chief Sustainability Officer and Communications and the Head of Strategy. ● The Environment Committee, the Inclusion & Diversity Advisory Board, the Product Safety Board as well as the Occupational Health and Safety Governance Board, all chaired by Executive Committee members. The Steering Committees of the Human Rights and Sustainable Supply Chain Roadmaps, both sponsored by Executive Committee members. Other sustainability topics such as business integrity may be brought directly to the attention of the Executive Committee. These steering bodies notably ensure sustainability impacts, risks and opportunities are properly considered in business decisions, including company-wide strategy evolutions, activity prioritisation or resource allocation. Where relevant, additional elements of governance linked to specific topics are explained in the governance sections of this report. Airbus SE/ Report of the Board of Directors 2024 130
The Sustainability organisation put in place in January 2020 at corporate level has continued to develop and expand. Its mission continues to focus on: Coordinating the identification of, and providing transparency through reporting, on IROs linked to sustainability. Setting the ambition level regarding the Company's overall sustainability strategy, including related to SAF, and its environmental and social commitments; Monitoring the evolution of sustainability-related regulations, standards and trends, and engage with relevant external stakeholders; Identifying the levers and defining objectives to achieve this ambition; Setting relevant targets for environmental matters and shaping targets for other sustainability topics in collaboration with concerned functions; Coordinating with relevant functions the performance and reporting on progress across sustainability topics; Identifying means of enabling the business to deliver this ambition across the full value chain; Engaging employees on sustainability; Providing clarity on ambition and progress to internal and external stakeholders. While the Sustainability team has a Company-wide role to define the Company’s sustainability ambition, drive the roadmap and deliver and integrate the Company’s sustainability commitments into the businesses, there are also for each of those topics (e.g. health and safety, inclusion and diversity, human rights, data governance etc.), related functions, departments or “roadmaps” (multi-functional teams addressing cross-functional sustainability topics) driving their continuous improvement. The Ethics & Compliance organisation is part of the Legal, Compliance and Public Affairs 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 General Counsel brings with him deep experience in managing high profile, complex cross border issues in some of Europe’s largest industrial companies as well as in leading and integrating teams with external stakeholders around the world, navigating commercial and legal challenges. Airbus SE/ Report of the Board of Directors 2024 131
Sustainability matters related to ESRS Steering Oversight Steering body(ies) Executive Committee ECSC / Board E-1 to E-5 (Environment) Environment Committee S-1, S-2, G-1 (Human rights / supply chain) Human Rights and Sustainable Supply Chain Roadmap steering committees S-1 (Human resources) I&D board, HR Function S-4 (Aviation safety) Product Safety Board G-1 (Business conduct) Legal, Compliance & Public Affairs Function Cybersecurity Security Function Transverse (Due diligence / overall performance / reporting / governance) Sustainability Strategy committee Human Rights and Sustainable Supply Chain Roadmap steering committees During the reporting period, the following sustainability matters structured across the ESRS were addressed by at least one above-mentioned committee or management body: climate change, substances of high concern, material in-sourcing (inflows), waste, water, occupational health and safety, social dialogue, inclusion and diversity, due diligence and human rights impacts in the supply chain, product safety, ethics and compliance, cybersecurity. The ECSC discussed, amongst other topics, the Company decarbonisation strategy, substances management strategy, the in-sourcing of critical raw materials, Company-wide due diligence and human rights roadmap, including supply chain, inclusion and diversity, and social value including community impact as well disclosure related items such as CSRD readiness, including the double materiality assessment and its outcome. 6.1.1.2.3 GOV-3: Integration of sustainability-related performance in incentive schemes The Company believes the integration of sustainability criteria into its reward mechanisms is an important means to accelerating its sustainability ambition. A sustainability criterion - composed in equal proportions of a CO 2 reduction target for Scopes 1&2 aligned with the Company decarbonisation strategy and an occupational health and safety related target (FR1) reflecting this other priority in the Company sustainability journey - is integrated into the common collective component of the CEO’s variable remuneration, see “– Corporate Governance – 2.3 Remuneration Report”. The remuneration scheme is approved by the Board of Directors, supported by its Remuneration, Nomination and Governance Committee that analyses scenarios and benchmarks and proposes targets consistent with Company’s ambition on the related sustainability matter (see “– Corporate Governance – 2.3.2 Implementation of the Remuneration Policy in 2024: CEO”). The CEO's total direct compensation ("Total Direct Compensation") comprises a base remuneration ("Base Salary"), an annual variable short-term remuneration ("Variable Remuneration" or "VR") and an award under the LTI plan (“Long Term Incentive Plan” or “LTIP”). Variable Remuneration is made of a common collective component and individual performance component in equal proportions. The common collective component includes a sustainability linked component that is composed in equal proportions of an occupational health and safety target (FR1) and a CO 2 Scopes 1&2 target that has been set as necessary intermediate milestones towards the Company’s 2030 Scopes 1&2 target (-63% vs. 2015), which is aligned with a 1.5° trajectory as validated by the Science Based Targets initiative (SBTi). CEO sustainability and climate-related component in variable short-term remuneration Unit 2024 Percentage of long-term variable remuneration in total variable remuneration % 50% Percentage of short-term variable remuneration in total variable remuneration % 50% Percentage of collective component in annual variable short-term remuneration % 50% Percentage of sustainability criteria in collective component % 20% Percentage of health and safety related criterion in collective component % 10% Percentage of climate related criterion (Scopes 1&2) in collective component % 10% Percentage of climate related criterion in variable short-term remuneration % 5% Percentage of climate related criterion in total variable remuneration % 2.5% Climate related target - Scopes 1&2 - 2024 VR (initially -3% before baseline restatement) % -2% (achieved -11%) Climate related target - Scopes 1&2 - 2025 VR % -3% Airbus SE/ Report of the Board of Directors 2024 132
These short-term incentivisation mechanisms support the transformation of the Company and the ongoing cultural shift. The Company is considering including a sustainability linked component in the LTIP, too. This principle also applies to the other members of the Executive Committee who do not serve on the Board of Directors, and to a large extent to Executives and “Level IV” managers employed at the Company. The remuneration of Board members other than the Company CEO does not include any sustainability performance linked component. 6.1.1.2.4 GOV-4: Statement on due diligence The Company has established processes to conduct sustainability due diligence throughout its business, operations and supply chain to identify and address the adverse impacts (direct and indirect) of its business activities. This is an ongoing, iterative and progressively in-depth exercise, with the amount and depth of due diligence commensurate with the severity and likelihood of an adverse impact, where more significant ones (based on severity) are prioritised. The approach taken by the Company in this respect takes into account the United Nations Guiding Principles for Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct, which covers six steps including: 1. Embedding responsible business conduct 2. Identifying and assessing potential and actual impacts 3. Acting to address, cease, prevent, mitigate or avoid adverse impacts 4. Tracking performance including use of appropriate KPIs and targets 5. Communicating and reporting on findings and performance 6. Cooperating in appropriate remedies Step 1: Embed responsible business conduct into governance, policies and management systems The Company has in place commitments towards respecting human rights, the environment and health & safety through specific policies, directives and methods which are embedded into the Company business management systems and form an integral part of the Company’s risk management and decision making. For more on management systems and governance see: General governance overview – 6.1.2.1 GOV-1: The role of the administrative, management and supervisory bodies – 6.1.2.2 GOV-2: Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies – 6.1.2.3 GOV-3: Integration of sustainability-related performance in incentive schemes Environment - policies, management systems and governance – 6.2.1 Environmental Policy Health and Safety - policies, management systems and governance – 6.3.2.3 Own workforce policies (S1-1) and – 6.3.2.7.1 (Health and Safety) Policies (S1-1) Human Rights - policies, management systems and governance – 6.3.1 Social Policies ERM and Internal Control – 6.1.2.5 GOV-5: Risk management and internal control over sustainability reporting – Risk Management and Internal Controls – 3.2 Enterprise Risk Management System, and – 3.4 Internal Control Key Company policies, including those shown below, have clear expectations towards its own operations (including controlled affiliates) and suppliers: Key policies Related to For more information, see Environ ment Health and safety Human rights Airbus Code of Conduct Airbus Company Human Rights Policy International Framework Agreement Airbus Environmental Policy Airbus Health & Safety Policy Airbus Supplier Code of Conduct Airbus Company Human Resources Policy – 6.4.1.2 G1-1 Business conduct policies- – 6.3.1 Social Policies – 6.3.2.3 Own workforce Policies – 6.2.1 Environmental Policy – 6.3.2.7.1 (Health and Safety) Policies – 6.3.3.3 Policies related to VC workers – 6.3.2.3 Own workforce Policies Airbus SE/ Report of the Board of Directors 2024 133
Governance. As detailed in “– GOV-2: Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies”, oversight has been established at the Board of Directors level through the ECSC. The Company has developed specific roadmaps (multi-functional teams addressing cross-functional and cross-divisional sustainability topics amongst other things) which focus on the main areas where its activities could have potential human rights, health and safety or environmental impacts, including the Human Rights Roadmap, the Environmental Roadmap and the Sustainable Supply Chain Roadmap. Each roadmap considers its context, stakeholder needs and expectations, compliance obligations, relevant aspects and impacts, and related risks and opportunities to define a strategy and objectives within the framework of the company management system. Other networks within the Company that support implementation and compliance include for example, the Ethics & Compliance Representatives Network, the Privacy Network, the Sustainability National Representatives and Ambassadors Networks and the Inclusion and Diversity Network. Several functions contribute to the operational implementation of sustainability due diligence, including Human Resources, Procurement and Legal & Compliance. Identified and prioritised existing or potential impacts are recorded within the ERM exercise and governance follows a similar process as the one existing for the Company’s top company risks. Affiliates. All of the Company’s controlled affiliates are expected to deploy similar internal policies by applying the Company’s directives. Through a company-wide single digital handbook, the controlled affiliates access the applicable requirements they are expected to comply with, together with relevant supporting materials and methods designed to support them in their operational implementation. Its enforcement is supported by the Directors’ training programme, as well as on-boarding sessions performed for newly appointed managing directors of controlled affiliates. The handbook is 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 methods. Awareness raising, training and capacity building. Training solutions are provided to all employees to promote awareness of human rights and the environment and to enable their integration into business processes and decision making. Employees identified as working in areas where human rights are considered high risk are being equipped to address human rights as appropriate to their role linked to competency requirements. For example, this includes buyers and supply chain quality managers working in high risk geographical locations / activities on human rights. In addition, the Company will endeavour to support suppliers to access topic-specific training as required if any risks are identified related to human rights or the environment. In addition, the Company’s overall training offering ranges from ethics and compliance to export control, health and safety, product safety, cyber security, internal control, inclusion and diversity, quality and customer centricity, and other sustainability matters, including general awareness. Step 2 : Identify actual and potential adverse impacts The identification and assessment of actual and potential adverse impacts is explained in sections referenced below: Process and Methodology – 6.1.4.1 IRO-1: Description of the processes to identify and assess material IROs Material topic description – 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model Stakeholder engagement – 6.1.3.2 SBM-2: Interests and views of stakeholders Supply chain Ensuring respect for human rights, including health and safety, the environment and ethical business conduct principles is embedded into how the Company selects, onboards and contracts with its suppliers. This includes different sustainability screening and checks at different stages of its engagement with suppliers: - Prior to being engaged, all the Company’s suppliers are screened for risks, including related to human rights, the environment and ethical business conduct, via a third party supplier screening tool. If a ‘red flag’ is highlighted for a supplier, an internal review will take place which may result in escalation depending on the severity of the alert. - During the call for tender stage, for certain large contracts above a minimum threshold, suppliers are required to complete a sustainability questionnaire to help the Company evaluate their sustainability maturity. - Company’s standard procurement contract templates have evolved to reinforce clauses related to human rights and the environment. This includes requirements for the Company's suppliers to comply with applicable laws and regulations in connection with human rights, labour and employment, environment and health & safety, to commit to Airbus SE/ Report of the Board of Directors 2024 134
apply (and cascade throughout their own supply chains) the principles of the Airbus Supplier Code of Conduct and to comply with other requirements such as to cooperate with a request for an evidence-based desktop Supplier Maturity Assessment (“SMA”) and/or on-site assessment conducted by a third party service provider. - Once a contractual relationship has been established, the Company identifies supplier sites with the highest human rights, environmental and business conduct risks through the application of a risk-based analysis of both the supplier’s geographical location and nature of their activity using publicly available indices. Following this analysis, suppliers identified as high risk are required to complete an evidence based SMA undertaken through a third party service provider. This assessment covers topics such as labour and human rights, health and safety, environment, ethics and sustainable procurement. Following completion of a SMA, if a ‘red flag’ is raised - i.e. the Company's sustainability expectations are not met -, and depending on the severity of the risk, the supplier will be requested to prepare an appropriate action plan to demonstrate how they will cease, mitigate or prevent the identified risk, or the supplier may be required to undertake an on-site assessment by a third party service provider. Actions may also involve coordination/collaboration with sector-specific or cross-sector initiatives as appropriate. If the Company does not consider that the action plan is sufficiently progressing, or if actions are insufficient to prevent or minimise the risk, then the contractual relationship with that supplier may be reviewed. The Company also monitors supplier risk on an ongoing basis through its OpenLine grievance mechanism (which is open to third parties including workers in its supply chain, see 'Grievance mechanism' section “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”) and informal channels such as external reports (media/NGO reports) as well as through visits to supplier sites. If the Company receives substantiated knowledge of a violation of a human rights or an environmental-related obligation, it will investigate, without undue delay, to understand the severity and scale of the violation as well as any required mitigation actions. This investigation will normally take place through engagement with the relevant supplier. After investigation, and depending on the severity, the supplier could be asked to propose follow-up actions as described above or the Company may require an on-site assessment. For any alerts identified associated with the supply chain of a supplier, the Company will, as a priority, require action to be taken via its supplier and will monitor for implementation of relevant actions. The Company’s own operations Expectations related to workers in the Company’s own operations are set out in the Airbus Company Human Rights Policy (see “Step 1: Embed responsible business conduct into governance, policies and management systems”). The Company regularly checks adherence to international standards and principles, minimum legal obligations and its own commitments through on-site assessments, focused on labour and human rights, conducted on its own sites including the sites of its controlled affiliates. These assessments are conducted by a third party service provider, consistent with that used for its supply chain, and sites are prioritised based on the same analysis of risk including geographical location. The assessments include a documentation review (including those of any suppliers based on that site) as well as interviews with direct employees and in-situ contractors. Any findings raised are discussed with the site’s management team (or at the Company level if the finding relates to company-wide actions) and action plans for addressing the findings are agreed, which includes any appropriate remediation and integration of feedback of lessons learned such as repeated findings which may require root cause analysis and systemic changes. Any findings identified in relation to the suppliers working on a Company site will also trigger an action plan. The Company aims to close all site findings without undue delay. In addition, all employees of the Company as well as onsite contractors are encouraged to report any alerts of concerns through the Company’s grievance mechanism (see 'Grievance mechanism', “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”). Affiliates. See “– 6.1.2.5 GOV-5: Risk management and internal control over sustainability reporting” and “– Corporate Governance – 3.2 Enterprise Risk Management System”. Ad hoc due diligence. The Company is committed to conducting ad hoc due diligence when it expects a significantly changed or significantly expanded risk situation in its own business area or that of a Company’s supplier, including due to the introduction of significant new products, projects or business fields. The Company is committed to promoting open and trusting dialogue within its own operations, supply chain and with other third parties including through the following mechanisms. Details are available on the Company’s intranet (accessible by Company’s employees), the ‘contact us’ section of the Company website or on a separate external website. Details are also communicated to suppliers through the Airbus Supplier Code of Conduct. Airbus SE/ Report of the Board of Directors 2024 135
Key fundamentals supporting an efficient dialogue: A corporate culture including SpeakUp & ListenUp values – 6.4.1.2 Business conduct policies and corporate culture (G1-1) A non retaliation policy – 6.4.1.2 Business conduct policies and corporate culture (G1-1) An efficient grievance mechanism, the “OpenLine” – 6.4.1.2 Business conduct policies and corporate culture (G1-1) Step 3: Prevent, cease or mitigate impacts The Company defines and implements measures to prevent, cease or mitigate adverse impacts based on the nature of the impact, the Company’s level of involvement in relation to the impact (i.e. whether the Company has caused, contributed or is directly linked to the adverse impact through the actions of another party - e.g. direct or indirect business relationships) and its ability to influence the business relationship causing the impact. Certain actions undertaken as a direct consequence of the identification of an existing or potential impact are described in the previous step, “Step 2 : Identify actual and potential adverse impacts”. This is embedded in the following approach: Table. A number of preventive actions are widely deployed across topics: The Company Suppliers Training Whistleblowing system (see below) Code of Conduct Policies / directives Contractual terms and conditions Whistleblowing system Supplier Code of Conduct Environment Health and Safety Human Rights Table. Procedures for regularly assessing the situation of relevant subsidiaries, contractors and suppliers can be summarised as follows. Specific relevant complementary information can be found in the respective topic sections. The Company Suppliers ICSA (Self assessment) Internal assessment / audit External audits (e.g. ISO) Management system Self assessment Company (or via 3rd party) assessment Environment ISO 14001 (1) Health and Safety ISO 45001 (2) Human Rights partially (1,2) Proportion of own workforce currently covered, (1) see “– 6.2.1 Ploicies”, and (2) see “– 6.3.2.7.4 Metrics (S1-14)” The details of specific action plans defined for each salient issue and material topics can be found in the ESRS they are related to: IROs / ESRS mapping ESRS2 – 6.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model Related action plans ESRS E-1, E-2, E-3, E-5, S-1, S-2, S-4: “Taking action on material impacts” sections Step 4: Track & measure effectiveness Tracking and measuring the effectiveness of its actions, including through the definition and setting of KPIs and targets, is a key element of the Company's due diligence process, including to support continuous improvement. It aims to assess the effectiveness of its actions, integrating feedback on lessons learnt to enhance due diligence practice, and accounting for how the Company addresses its impacts and the results of such actions to individuals or groups who may be impacted and other stakeholders including through reporting. Tracking and measuring effectiveness are included in, for example, the actions of the Company’s human rights and environment roadmaps, its training programmes, the assessments conducted in its supplier sites and own sites, with targets set for the closure of findings and the effectiveness of its grievance mechanism. Relevant targets and KPIs are a part of the Company’s internal reporting and are regularly monitored including by the relevant roadmaps and steering committees as well as at Executive Committee level. These, together with their associated Airbus SE/ Report of the Board of Directors 2024 136
policies, are integrated into relevant management systems and governance, as described above, and that ensure adequate reliability and topic management. Monitoring system. The table below shows an overview of the monitoring system in place. Moreover, effectiveness of actions is reviewed periodically in the respective topical governance bodies, as well as in the Sustainability Strategy Committee whose scope encompasses all four topics. Example of monitored KPIs Responsible management body Supervising committee Controls Environment > Operations > Use of Products CO 2 e Scope 1, 2, Water, Waste Delivered aircraft CO 2 efficiency metric Sustainability Organisation / Environmental Roadmap Environment Committee Sustainability Strategy Committee ERM, internal control Health and Safety Lost time injury frequency rate Health and Safety Organisation ERM, internal control Human Rights Nb of social assessments % of findings closed within 18 months Sustainability Organisation/ Human Rights Roadmap ERM, site social assessments and supply chain assessments Supply Chain Number of risky supplier sites covered by at least one dedicated action Procurement / Sustainable Supply Chain Roadmap ERM, external assessments, self assessments More detailed descriptions, as well as performance measures and analysis, can be found in the respective topic sections. IROs / ESRS mapping ESRS2 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model Related metrics and targets ESRS E-1, E-2, E-3, E-5, S-1, S-2, S-4: “Targets” and “Metrics” sections Step 5: Communicating and reporting on progress The Company reports on progress and performance through various communication channels, including through its Sustainability Statement. Stakeholder engagement and collaboration. The Company’s approach to stakeholder engagement on sustainability matters is described in “ESRS 2 – 6.1.3.2 SBM-2: Interests and views of stakeholders”. Considered stakeholders include those who have been, or could be, adversely impacted through the Company’s business activities and/or their relevant proxies. Where appropriate, the Company will engage with a range of civil society, peers, specialists and other stakeholders, including those representing rightsholders and where possible with rightsholders directly, and including on human rights issues, and will seek feedback on performance. To support its actions in this respect, the Company is also a member of the Global Business Initiative for Human Rights, the Responsible Business Alliance and the Responsible Mineral Alliance. The Company is also an active member of industry trade associations which regularly hold focused discussions on managing human rights and environmental-related risks within the aerospace and defence industry. These include the IAEG (International Aerospace Environmental Group), BDLI (German Aerospace Industries Association), 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), TEDAE (Tecnológicas de Defensa, Seguridad, Aeronáutica y Espacio), GICAT (Groupement des industries françaises de défense et de sécurité terrestres et aéroterrestres) and TechUK (the UK’s technology trade association). The Company is a founding member of the IAEG, which is working on development and promotion of common aerospace industry standards and tools to help manage environmental obligations and deploy best practices. In 2022, and co-led by the Company, a contract was established between IAEG and its selected service provider to build a sectoral approach for supplier assessment which started to be deployed in 2023 and continued to be deployed in 2024. Taking part in this IAEG voluntary sectoral framework for Environment, Social and Governance (ESG) engagement strengthens business resilience and optimises resources and costs for suppliers. In addition, an update of the Company's sustainability approach (including environment, human rights and health and safety) is regularly presented to key internal stakeholder groups, including the Airbus SE Works Council (SE-WC) comprising social partners from across Company’s European sites, and provides dedicated time for open dialogue and exchange. For more on stakeholder engagement, see: Overall approach ESRS 2 – 6.1.3.2 SBM-2: Interests and views of stakeholders Airbus SE/ Report of the Board of Directors 2024 137
Grievance mechanism ESRS G-1 – 6.4.1.2 Business conduct policies and corporate culture (G1-1) Step 6: Cooperating in appropriate remedy Remediation. If the Company identifies that it has caused or contributed to an actual adverse impact within its own operations, supply chain or other third party business relationship through its business activities, including through OpenLine or other means, it will endeavour to address such impacts by providing for or cooperating in appropriate remediation. This may include enabling remediation that is proportionate to the significance and scale of the adverse impact, including in cooperation with relevant stakeholders. 6.1.1.2.5 GOV-5: Risk management and internal control over sustainability reporting Risk management and internal control in relation to sustainability reporting are embedded in the broader Internal Control and ERM systems and processes described in section “– 3 Risk Management and Internal Controls”. The scope covers mainly the preparation of quantified information, including environmental, occupational health and safety, social data from sites and their consolidation as well as company wide calculation-based information such as Scope 3 estimates. Finance-related information is also covered by Internal Control through controls associated with the preparation of the financial statements. Furthermore, qualitative information is covered by a disclosure process from consistency reviews performed locally and centrally until the review and approval of the Company's Disclosure Committee. The Internal Control model is based on two lines of defence (the third line of defence being Corporate Audit). At first line, key controls are performed within the usual process at operational/function level to answer key systemic risks. Then, a second line testing activity is run in each accountable function on the key controls to measure their effectiveness (second line of defence). As it relates to the accuracy of quantitative environment and social information reported in the framework of the CSRD, the first line of defence mainly consists in the control of the local collection of information based on documented procedures and central consolidation including consistency verifications and comparison against targets. The second line testing is then performed by the Internal Control officers of the concerned Functions. The risk assessment approach as it relates to sustainability information is focusing on the following main systemic risks: the risk for the Company not to comply with the reporting directive scope (i.e. double materiality assessment and review) and the risk of disclosure misstatement (on quantitative and qualitative data points). The Internal Control framework and referential are currently under development on these topics, and prioritisation on the implementation is based on several criteria including the consideration of internal audits and external review findings, the results of the former Internal Control yearly campaigns where the data points were already covered, and the estimated importance for stakeholders - e.g. remuneration-linked information. Current risks identified include the alignment of metrics definition and preparation with CSRD various requirements, the timely collection and consolidation of sites related information due to the late availability of certain information and the integration of new sites into the reporting perimeter. Such challenges are being addressed through a number of mitigation actions including a proper and anticipated on-boarding of sites, a systematic review of internal metric definitions and the on-going creation of “ID cards” covering all reported CSRD quantified information. Current risks identified include as well the consistency of the qualitative information covered by the disclosure process as described above. Findings as regards to the sustainability reporting process are consolidated by the Internal Control team via the yearly Internal Control campaign and followed up by the respective functional Internal Control teams to define and monitor necessary action plans and drive continuous improvement. The Internal Control Committee is in charge of reviewing the results of the yearly Internal Control campaign before reporting to the Company’s Executive Committee and the Board's Audit Committee. 6.1.1.3 SBM: Strategy 6.1.1.3.1 SBM-1: Strategy, business model and value chain The Company’s purpose is to "pioneer sustainable aerospace for a safe and united world". The Company designs, manufactures and delivers aerospace products - including aircraft, helicopters and satellites - services and solutions to customers - including commercial airlines, leasing companies, governments, helicopter operators, space agencies - on a worldwide scale helping to create value and drive growth. There have been no significant changes in either markets and Airbus SE/ Report of the Board of Directors 2024 138
customer groups served or products or services offered during the reporting period. The Company is aware of its responsibility to society and future generations, and contributes to a number of UN Sustainable Development Goals ("SDGs") through its core business and how it operates. This chapter provides key highlights on the Company’s strategy, business model and value chain. The Company's global presence is also reflected through its workforce repartition - see “– 6.3.2.6 Characteristics of the undertaking’s employees (S1-6)”. Through its portfolio of products and services the Company serves a number of global markets and customer groups. From a sustainability perspective, the range of products, including aircraft, helicopters and satellites, show large commonality in terms of technologies, industrial operations and supply chain so that no product differentiation is deemed relevant for associated IROs. Environmental impacts in the downstream value chain primarily relate to the use of commercial aircraft due to the energy-intensive nature of their operation associated with the high number operating of cycles over their lifetime. Differentiation across customer groups or markets served was not deemed meaningful either. Accordingly, the Company has set a number of sustainability goals and objectives that are connected to a number of identified IROs. These notably include a “quest to reach zero accidents” related to aviation safety or the ambition to pioneer sustainable aerospace. The Company aspires to lead the decarbonisation journey in aerospace. It pioneers advanced and disruptive technologies while continuously improving the fuel efficiency of its products. While its sustainability journey remains ambitious and challenging in many ways that are presented in the topical ESRS, the Company is committed to reducing the environmental impact of its products, including through a range of critical strategic pathways such as exploring new aircraft and propulsion technologies, alternatives to fossil fuels such as Sustainable Aviation Fuels (“SAF”), and maturing hydrogen technologies (see “– 6.2.2.5 Actions (E1-3)”). It is also committed to improving its environmental performance and, for example, to reducing emissions through its supply chain, cutting on-site waste and increasing the recycling capability of aircraft at the end of their service life. The Company’s products and services, such as its Earth-observation technologies, allow it to play its part in understanding climate change and responding to natural disasters. Neither the Company (including its subsidiaries) nor its joint ventures develop, produce, or distribute any “controversial weapons” as listed within Annex I of the Commission Delegated Regulation (EU) 2022/1288 supplementing EU Regulation 2019/2088 (Sustainable Finance Disclosure Regulation ("SFDR")) for Principal Adverse Impact indicator 14. This includes biological weapons or chemical weapons (in accordance with the Biological Weapons Convention and the Chemical Weapons Convention), cluster munition (Oslo Convention) and anti-personnel mines (Ottawa Treaty). Consequently, the Company does not have any exposure to the Principal Adverse Impact indicator 14 under the SFDR criteria. The Company participates in two joint ventures that contribute to France’s nuclear deterrence (ArianeGroup and MBDA), including the production and support of missile systems. These activities are compliant with the Treaty on the Non-Proliferation of Nuclear Weapons. The Company’s reported revenues do not include any revenues relating to these activities (accounted for using the equity-method) as it does not have exclusive control of the joint ventures. Value chain The Company plays a pivotal role in the global aerospace and defence value chain, as a manufacturer, systems integrator and service provider. Its position within the value chain is embedded in the design, development, production and lifecycle management of aircraft, helicopters, satellites and related systems. Design and Development (own operations and upstream in the value chain). The Company designs its products in-house, focusing notably on optimising aerodynamics, fuel efficiency, weight reduction, integration of new technologies and safety. It is highly involved in related research, which also implies a close collaboration with a number of stakeholders such as suppliers - including companies that provide engines, avionics, materials, and subsystems -, universities and public research institutions or industry partners. Manufacturing and Assembly (own operations and upstream in the value chain). The Company relies on a global supply chain for sourcing components. These include structural components, avionics, engines and advanced materials. As an integrator, it operates major assembly plants. At these facilities, subassemblies and components are integrated into final products. Commercial aircraft final assembly lines are located across Europe (Toulouse; Hamburg) and worldwide (Mobile, Alabama; Tianjin, China; Mirabel, Canada). Sales, Distribution, and End users (own operations and downstream in the value chain). The Company acts as a supplier to airlines, governments and space agencies, taking on a central role in connecting the upstream product Airbus SE/ Report of the Board of Directors 2024 139
development and manufacturing process to downstream customers. End-users are essentially passengers and flight crews, who are respectively customers and own workers of Company’s customers. Services and Support (own operations and downstream in the value chain). In addition, the Company provides maintenance, repair, and overhaul (“MRO”) and other services for commercial, military, and helicopter operators that support customers’ fleet operations for reliability and performance. This includes predictive maintenance and spare parts management services, training and simulation services for pilots, engineers, and crew members - through training centres and simulators worldwide -, upgrades and retrofits for existing aircraft and helicopters, extending their lifespan, improving fuel efficiency, or integrating new technologies, and end-of-life and recycling services through initiatives such as TARMAC Aerosave, which specialises in aircraft decommissioning. Regulatory and Airworthiness Authorities (entire value chain). The Company works closely with authorities such as the European Union Aviation Safety Agency (“EASA”) and the Federal Aviation Agency (“FAA”) to ensure compliance with safety standards and airworthiness regulations across its product range, value chain and product life cycle. Energy value chain (upstream and downstream value chain). As energy is necessary to operate the Company's products,the energy value chain is closely linked with the Company’s business model. This includes conventional kerosene production as well as SAF production or hydrogen production, as essential bricks in the Company decarbonisation journey. In this context, the Company also engages with some actors in the energy value chain as business partners (see ESRS-E1). Overall the Company plays a central role and fosters a constant and consistent dialogue and coordination throughout the value chain, including with industry associations and policy makers. It is committed to being a profitable, competitive company that meets customer and investors expectations and that has the financial strength to invest in the future of global aerospace and defence. Focus on supply chain engagement (upstream in the value chain) The Company relies on a global supply chain, composed of the suppliers with which the Company contracts supply agreements (“Tier-1”), and the suppliers of these Tier-1s (“Subtiers” suppliers). It sources services and products from thousands of suppliers worldwide, including raw materials, engines, systems, aerostructure elements and fuselage sections. The Company's daily collaboration with its suppliers supports meeting quality standards and performance requirements. Long-term contracting or partnerships also help reduce inflow risks, including related to the timely delivery of components. The active role of its suppliers will be essential for the aviation sector’s decarbonisation ambitions and for the Company sustainability journey more broadly. Accordingly, the Company has implemented policies and defined engagement plans that are led by its Sustainable Supply Chain Roadmap. While 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. The Company has established regional procurement offices in North America (Herndon, Virginia), India (Bangalore), Asia Pacific (Singapore) and China (Beijing) to support local procurement initiatives. The regional procurement offices represent the Procurement function in the respective regions. They are responsible for strategic sourcing, general procurement and supplier development (procurement operations) while supporting the application of the Company’s procurement processes, policy and digital solutions. The Company strives to make environmental and social responsibility a core element of its procurement strategy. This includes managing the relationships with suppliers through the different phases of the procurement process: sourcing strategy definition, supplier selection, contract management and supplier monitoring and development. The Company’s Sustainable Supply Chain Roadmap is based on a three-step approach: supplier commitment, supplier assessment, supplier engagement and development. This approach is aligned with the Company due diligence approach (see “– 6.1.2.4 GOV-4: Statement on due diligence”) and includes: supply base risk mapping, supplier engagement and contractual requirements, supplier assessment/audits and development plans, policies, tools and reporting. As the Company’s commercial aircraft business and its two Divisions (Airbus Helicopters and Airbus Defence and Space) are certified ISO 14001, the Procurement function acts in adherence with ISO 14001 requirements. The depth of the Company's supply chain increases the complexity and, in many areas, the difficulty of identifying and addressing impacts both actual and potential. For instance, reliable information related to the precise mining sites that provide materials incorporated by an upstream sub-tier supplier, combined with other materials, into a component of the Company's products may be complicated to identify, collect and analyse, such as the smelters of raw materials that may end up in certain components that are installed on the Company's products. Airbus SE/ Report of the Board of Directors 2024 140
Benefits for customers and society The Company’s products help to connect economies and enable global cooperation and partnership: they bring together people and organisations across the globe, in person with its commercial aircraft and helicopters, and virtually with its satellites and connectivity solutions. The Company’s technology and products allow its customers to successfully master their global and domestic operations and the management of crises to reduce the risk of escalation. The Company's products help to protect citizens, defend sovereignty and advance global security, therefore contributing to sustainability. The Company’s contribution to a more prosperous and sustainable society goes beyond what it offers directly through its products and services. For example, as an important player in the aeronautics and defence industry, the Company contributes significantly to SDG 8 - “Decent Work and Economic Growth” and as a major European defence manufacturer, the Company also has significant economic impact across Europe contributing to Europe’s economic prosperity - as highlighted through ATAG and ASD publications: Key figures from ATAG 2024 Benefits Beyond Borders - global summary, available on the Air Transport Action Group website Jobs are supported worldwide by aviation ~86,500,000 Productivity of such jobs compared to other jobs, on average 3 times Contribution to global GDP USD 4.1 trillions % of world economic activity 3.9% Key figures from AeroSpace and Defence Industries Association of Europe, available on the ASD Europe website Jobs supported by the industry across the continent >1,027,000 2023 annual revenue EUR 290 billions The Company also contributes to the economic development of the communities where it operates. Full aerospace ecosystems - bringing together academia, research centres and corporations, all with high value-added jobs - often develop around the Company’s sites such as those in Toulouse, Hamburg or Bristol. This development is accelerated thanks to the Company’s innovation ecosystem such as Airbus Scale: an innovation unit that combines Company innovation, start-up engagement and company-building activities. 6.1.1.3.2 SBM-2: Interests and views of stakeholders The Company is committed to engage in constant meaningful dialogue with its stakeholders, striving for openness, transparency and inclusiveness. Key stakeholder groups include, amongst others, employees, customers, suppliers, industrial partners (including energy providers), social partners, investors, NGOs, authorities / governments / policy makers, industry associations, MRO providers, air navigation service providers (ANSPs), airports, and the community at large. This approach is supported by the International Aerospace Environmental Group (IAEG) guidance for the sector. In line with the governance presented above, each category of stakeholders is internally assigned to a function that defines the most adapted way of engaging with, and ensures the consistency and relevance of the dialogue. In its communications, the Company seeks to use clear and concise language and works to provide stakeholders with sufficient information regarding relevant topics in a timely manner. The Company attempts to improve its stakeholder engagement processes continuously, including by regularly reviewing and, if necessary, updating the various principles it observes, to ensure that the dialogue remains relevant and effective. If a relevant stakeholder requests dialogue, the Company tries to facilitate this request, unless it does not believe that this would be in the best interest of the Company and its business, in which case the Company may reject such request. In case stakeholder dialogue is already taking place, the Company may terminate such stakeholder dialogue if the Company believes that continuing such dialogue would not be in the best interest of the Company and its business. In addition, it has formalised a number of opportunities to exchange more widely with its stakeholders. For instance, beyond the materiality assessment, the Company meets at least twice a year with social partners to review sustainability topics (see “– 6.3.2.9 Social dialogue, freedom of association, and collective bargaining”). It also organises events and forums, such as the Airbus Supplier Sustainability Council, the Airbus Capital Market Day and the Airbus Summit to address sustainability topics with relevant stakeholders. Additionally, it regularly participates in numerous events such as air shows or conferences, which foster dialogue on sustainability matters with a large number of external stakeholders including investors, customers, media, NGOs, institutions, policy makers, and other industry or value chain partners. Airbus SE/ Report of the Board of Directors 2024 141
The Company’s dialogue with its stakeholders, in line with the above-mentioned principles, helps the Company to progress its sustainability ambition. For instance, it feeds the Company's materiality assessment so that the outcome embeds interest and views of stakeholders together with other elements of analysis. The Company's business model is closely interdependent with those of key stakeholders such as customers, suppliers, investors so that it integrates and reflects relevant views or expectations from them. For instance, such dialogue contributes to define topical roadmaps that are consistent with those of the sector (e.g. transition plan), and enables the Company to act on feedback (e.g. aviation safety). The Company endeavours to take the interests of relevant stakeholders - including in connection with the sustainability aspects of the Company’s strategy - into account, whereby the Company aspires to treat its stakeholders with respect and dignity and welcomes their perspectives. Stakeholders' views are contributing elements into several steps of the Company due diligence process, including for the impact identification / materiality assessment, as described for instance in the section “– 6.1.4.1 IRO-1: Description of the processes to identify and assess material IROs”, the definition of topical ambition and/or action plans, or through alerts received through the grievance mechanism that trigger systematic consideration. The Company's strategy and business model is largely informed by stakeholders interests through, for example: the design of products that meet customers' expectations, including in terms of fuel consumption / CO 2 performance as well as meet certification authorities requirements in terms of product safety; the consideration of supply chain capabilities in defining its operating model, through the numerous partnerships engaged including to support its decarbonisation roadmap (see “– 6.2.2.5 Actions (E1-3)”)' or the constant social dialogue that fosters working conditions that satisfy its workforce. When the views of key stakeholders, including on sustainability matters, have an influence on evolving the Company business or operating model, relevant information is shared through respective supervisory boards described in section “– 6.1.2.2 GOV-2: Information provided to and sustainability matters addressed by the Company’s administrative, management and supervisory bodies” and supports decision-making. For instance, this may take the form of sharing information related to the materiality assessment or including in topical presentations contextual information about related relevant stakeholders’ expectations (e.g. customer feedback, supply chain perspectives, applicable regulatory frameworks). Complementary requirements in topical ESRS - that need to be taken into account when reporting against the Disclosure Requirements in ESRS 2 - on interests, views, and rights of stakeholders specific to certain ESRS are: S1 Own workforce The Company considers the interests, views, and rights of people in its own workforce, including respect for their human rights. Its workforce is a key stakeholder group, as well as social partners. Interests, views and rights of the Company’s own workforce, including respect for their human rights, inform the Company’s strategy and business model by being integrated into the overall due diligence process detailed in “– 6.1.1.2.4 GOV-4: Statement on due diligence”, and particularly in the human rights salient issue identification process and related action plans (see section “– 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model”) as well as the stakeholder engagement process detailed in “– 6.3.2.4 Processes for engaging with own workers and workers’ representatives about impacts (S1-2)” below. They were also considered in the creation of the Airbus Company Human Rights Policy. S2 Workers in value chain Interests, views and rights of the Company's upstream value chain workers and in-situ contractors, including respect for their human rights, inform the Company's strategy and business model by being integrated into the human rights salient issue identification process and related action plans (see section ESRS 2 “– 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model” below), the stakeholder engagement process detailed in section “– 6.3.3.4 Processes for engaging with value chain workers about impacts (S2-2)” and overall due diligence process detailed in sections “– 6.1.1.2.4 GOV-4: Statement on due diligence” and “– 6.3.3.6 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those action (S2-4)” further below. S4 Consumers and end-users Delivering safe products and supporting their safe operations throughout their lifetimes is a constant priority for the Company and an expectation of its customers and end-users. The Company is in constant dialogue with its customers and with airworthiness authorities, also representing end-users’ interests, on aviation safety matters in formalised frameworks. In addition, the Airbus OpenLine (see “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”) is accessible to any customer or end-user who would like to raise a safety-related concern. This dialogue informs many strategic dimensions including and not limited to product design, manufacturing, quality and procurement activities. Airbus SE/ Report of the Board of Directors 2024 142
6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model Synthesis of material Impacts, Risks and Opportunities resulting from double materiality assessment: IRO related (sub)topic (see table below for IRO full description) IRO Value chain Also described in / addressed in ** Impact* Risk Opport unity Own operations Up stream Down stream ENVIRONMENT - Climate change adaptation - Climate change mitigation - Energy E1 / E1 E1 / E1 E1 / E1 - Pollution of air (VOC) - Substances of (very high) concern - Pollution of water and of living organisms and food resources *** E2 / E2 E2 / E2 E2 / E2 - Water withdrawal / consumption (linked to climate change) - Water - Habitat degradation *** E3 / E3 E3 / E2 - Direct impact drivers of biodiversity loss, impacts on the extent and condition of ecosystems - Biodiversity loss drivers - pollution *** E4 / E1 E4 / E2 - Resource inflow - Waste E5 / E5 E5 / E5 SOCIAL Own workforce - Occupational health and safety - Social dialogue, freedom of association, collective bargaining - Diversity S1 / S1 S1 / S1 S1 / S1 Workers in value chain - Occupational health and safety - Forced or child labour S2 / S2 S2 / S2 - Personal safety of consumers and/or end users S4 / S4 GOVERNANCE - Corporate culture - Speak up culture - Management of relationships with suppliers - Corruption and bribery G1 / G1 G1 / G1 G1 / G1 G1 / G1 COMPANY SPECIFIC - Cybersecurity Cyber / Cyber * identified impacts relates to negative existing or potential impacts; ** indicates where detailed IRO definition / information related to how these IROs are addressed can be found; *** in relation to kerosene production. Not Applicable IROs description: ENVIRONMENT E1 - Climate change Impact: Climate Mitigation: The operations at the Company's facilities and the air transport sector’s use of aircraft in operations lead to GHG emissions. The Company's purchased goods and services contain GHG emissions. Energy: Energy consumption/mix usage originating from the Company's facilities, the suppliers’ facilities and the air transport sector's use of aircraft in operation lead to GHG emissions. Airbus SE/ Report of the Board of Directors 2024 143
Risk: Climate adaptation: Climate adaptation risk, as detailed in “– 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)”, includes the risk that the Company or its suppliers may fail to mitigate the acute or chronic impacts of future climate change on their industrial sites. Additionally, failure to adapt products to perform effectively under future atmospheric conditions in a timely manner, relative to the speed of these risks' onset or time horizon could lead to production disruptions or a product offering that no longer meets customer expectations. This could negatively affect financial performance. Climate mitigation: Climate mitigation risk, detailed in “– 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)”, includes the risk that the Company or its suppliers may not meet their decarbonisation ambitions or the late availability of low emissions technology could lead to, respectively, investor mistrust or products failing to meet customer expectations. This could negatively affect financial performance. Energy: Climate-related energy risk, detailed in “– 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)”, includes the risk that renewable and low carbon energy (e.g. SAF, hydrogen) may not be available in sufficient quantities in the necessary time frames. This could lead to less air travel and lower demand for aircraft or for future aircraft programmes if not suited to available energy sources, which could negatively affect financial performance. E2 - Pollution Impact: Pollution of air: Aircraft and aircraft parts painting and cleaning within certain facilities of the Company lead to volatile organic compound emissions, potentially resulting in air pollution if adequate mitigation measures are not used. Pollution of water and living organisms and food resources: Production of aviation fuel in the downstream value chain may lead to emissions into water, which may contribute to water pollution and to pollution of living organisms and food resources if adequate mitigation measures are not used. Risk: Substances of (very high) concern: There is a risk that the Company or its suppliers may not be in a position to substitute substances of concern or of very high concern in due time in accordance with regulatory requirements. This could lead to business disruption across the value chain and to the Company not being able to deliver aircraft to its customers, which could negatively affect financial performance and damage its reputation. E3 - Water Impact: Water - Habitat degradation: See Pollution of water and living organisms and food resources above. Risk: Water consumption and withdrawal: There is a risk that the Company or its suppliers may fail to mitigate the potential impact of water stress—related to climate change—on water consumption, usage and withdrawal in their industrial operations, within a timely manner relative to the onset of such risks. This could lead to production disruptions, which could negatively affect financial performance. E4 - Biodiversity Impact: Direct impact drivers of biodiversity loss and impacts on the extent and condition of ecosystems: the air transport sector's use of aircraft in operation leads to GHG emissions that may indirectly impact biodiversity. Pollution: Production of aviation fuel in the downstream value chain may lead to water pollution, which may contribute to biodiversity loss if adequate mitigation measures are not used. Airbus SE/ Report of the Board of Directors 2024 144
E5 - Resource & circularity Impact: Resource inflow: The aviation sector's use of titanium in the production of aircraft components represents a relatively high percentage of the resource's global stock and may affect global resource availability. Risk and Opportunity: Risk - Inflow: The risk of titanium supply disruption could have an impact on aircraft production and deliveries, which could affect financial performance. Waste: An opportunity to reduce waste may arise from optimising the recovery of industrial waste, such as high-value metallic scraps. This could contribute to more efficient industrial processes and to further secure supply and production, which could contribute to financial performance. SOCIAL S1 - Own workforce Impact: Working Conditions - Health and safety: Unidentified weaknesses in health and safety management measures could allow the Company's own workforce to work unsafely, which could cause injury or ill-health from the work environment, process or activity. Risk: Working Conditions - Health and safety: Unidentified weaknesses in health and safety management measures could cause work related injury or ill health that could affect employee engagement, absence rates or job market attractiveness and cause production disturbances. Equal Treatment - Diversity: There is a risk that the Company, despite significant efforts and resources dedicated to workforce diversity, is considered not sufficiently diverse, which could lead to employee disengagement and lower recruitment attractivity. This could damage its reputation. Working Conditions - Social dialogue: There is a risk that the Company does not conduct appropriate social dialogue, which could lead to strikes and production disruptions, and could impact working conditions. This could negatively affect financial performance. S2 - Workers in value chain Impact: Working Conditions - Health and safety: Unidentified weaknesses in due diligence and health and safety management measures could result in the use of suppliers that have inadequate occupational health and safety management measures potentially causing injury or ill-health from the work environment, processes or activities. Child Labour: The use of child labour in the upstream supply chain, including in sourcing raw materials, may result in harm for the physical and/or mental health of the concerned children. Forced Labour:The use of forced labour in the upstream supply chain, including in-situ contractors, may result in harm for the physical and/or mental health of the concerned worker. S4 - Consumers and End-users Impact: Personal safety of consumers and/or end users (Aviation safety): An accident associated with the operation of an aircraft may result in fatal or serious injury for those on board the concerned flight (flight crew, passengers). Risk: Personal safety of consumers and/or end users (Aviation safety): In addition to the impact described above, there is a risk that an aircraft accident may have a negative effect on the public’s or regulators’ perception of the safety of a given class of aircraft, a given airline, a form of design of aircraft or of air traffic management. This could damage the Company's reputation and negatively affect its financial performance. Airbus SE/ Report of the Board of Directors 2024 145
G1 - GOVERNANCE - Corporate culture - Speak up culture - Management of relationships with suppliers - Corruption and bribery Risk: Corporate Culture: There is a risk that a dysfunctional and negative corporate culture in the Company may lead to a lack of shared values, decreased motivation, reduced productivity and a failure to meet agreed standards and applicable rules. This could negatively affect financial performance. Speak up: There is a risk that not being able to maintain an effective speak up culture within the Company, including protection of whistleblowers, may delay the identification of certain risks or situations until they have been revealed in the public domain. This could negatively affect financial performance and damage its reputation. Supplier relationships: There is a risk that the Company's numerous suppliers and subcontractors' financial health and ability to meet their contractual obligations may be negatively impacted by internal and external factors, which could lead to operational disruptions and delivery delays. This could negatively affect financial performance. Corruption and bribery: There is a risk that ethical misconduct or non-compliance with applicable anti-bribery laws and regulations by the Company, its employees or any third party acting on its behalf could expose it to liability. This could negatively affect financial performance and damage its reputation. COMPANY SPECIFIC - Cybersecurity Risk: There is a risk that the materialisation of a cybersecurity risk, including intrusion in systems leading to data leakage, attacks impacting the resilience of industrial systems and compromising the development, use or operation of products and services, 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. This could negatively affect financial performance and damage its reputation. Overall, the Company's business model, strategy and governance take into account these IROs, as described in the previous sections of ESRS 2 and summarised in the table below. When relevant, more information is disclosed in respective topical sections, as referenced in the last column of the previous table, including how actual or potential impacts are related to the Company strategy or business model, the nature of activities or operations at stake, how actual or potential impacts may impact people or the environment action plans, how they are linked to strategy and business model, means allocated to address them and significant related financial effects eventually. Time horizons are presented in the respective IROs tables in each ESRS. As described in the governance section, management of these IROs is integrated into the Company’s operating model with assigned functional responsibilities. Accordingly, the financial dimension of topic management, including related to current and foreseeable forward looking financial resource allocation, is captured in the finance accounting and risk management processes. Actions related to all material IROs as presented in the respective ESRS were screened from a financial perspective. Climate mitigation-related actions require significant resources. Actions associated with addressing other IROs (see respective ESRSs) were deemed to be embedded in the current Company’s business or operating model and would therefore not require significant actual or forward-looking CapEx or OpEx. Further related information about Climate change IROs is presented in “– 6.2.2 ESRS E1 - Climate change” and in a dedicated note attached to the financial statements (see: “– Notes to the IFRS Consolidated Financial Statements - Note 3. Climate Impacts”). Finance processes also include a long term planning exercise that factors in significant financial effects including those expected to arise from addressing Climate change IROs and puts in perspective funding capabilities. This supports assessing the Company resilience and is used for impairment testing purposes, whose outcome is disclosed in the financial statements (see: “– Notes to the IFRS Consolidated Financial Statements - Note 3. Climate Impacts”). Airbus SE/ Report of the Board of Directors 2024 146
Overview of how the management of topics related to identified IROs have a noticeable interaction with the Company's strategy, business and operating model: IRO related (sub)topic*: Company business model key dimensions include: Product policy & development Sales / aftersales / services Industrial set up Manuf acturing & logistics Workforce & working conditions Procure ment Processes / BMS ENVIRONMENT - Climate change adaptation - Climate change mitigation - Energy - Pollution of air (VOC) - Substances of (very high) concern - Pollution of water and of living organisms…** - Water withdrawal / consumption - Water - Habitat degradation ** - Direct impact drivers of biodiversity loss and impacts on the extent and condition of ecosystems - Biodiversity loss drivers - pollution ** - Resource inflow - Waste SOCIAL Own workforce - Occupational health and safety - Social dialogue, freedom of association, collective bargaining - Diversity Workers in value chain - Occupational health and safety - Forced or child labour - Personal safety of consumers and/or end users GOVERNANCE - Corporate culture - Speak up culture - Management of relationships with suppliers - Corruption and bribery COMPANY SPECIFIC - Cybersecurity * For detailed IROs description, see respective topical ESRS; ** material impact related to kerosene production. Not Applicable 6.1.1.4 IRO: Impact, risk and opportunity management 6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs All CSRD proposed items were assessed through individual analysis at the lowest granularity (IROs) level. Some company specific potential topics were added to this assessment universe, such as cybersecurity. For most environmental subtopics, differentiated assessments were performed across the value chain: own operations / upstream / downstream. To the extent such data is available and accurate enough, quantitative scoring substantiation was systematically preferred to qualitative judgement. The assessment was documented. Concerned functions or roadmaps were systematically involved in the process for the topics they are respectively in charge of, as presented in the governance section. Accordingly, topic impact assessment is aligned with the Company Due Diligence process step related to the identification of impacts, which are then tackled by respective concerned functions or roadmaps. Airbus SE/ Report of the Board of Directors 2024 147
Impact materiality, i.e. actual or potential impacts on people and the environment. The Company evaluated the actual or potential impact of its activities on environment and people - e.g. employees, end users, and local communities. Scoring was established taking into account the severity (scale, scope, remediability - for negative impacts -) and likelihood of such impact and using predefined scoring grids. Materiality threshold was determined considering the associated “severity vs. likelihood” combinations deemed relevant to reflect materiality and to support topic prioritisation. For topics related to potential impacts on people, a high severity score overruled a low score of likelihood. All Company activities and sites are deemed to be considered in this analysis, with a focus on manufacturing of commercial aircraft activity, also taking into account the presumed great commonality of sustainability impact given the similarities in materials used and manufacturing process for helicopters, military aircraft, and satellites. The full value chain was considered, with again a focus on the impact related to the use of commercial aircraft as the magnitude of related impact was deemed higher given the nature and frequency of operations in the respective product lifetimes. This analysis also relied on an understanding of the Company’s own operations, supply chain, or other business relationships as the presence and severity of potential or actual adverse impacts is influenced by various factors, such as: the type of industry, products/services, operations and their associated inherent risks; the country and operating context, considering for instance publicly available statistics and indices or the existence of related environmental or social regulations or relevant voluntary standards and associated thresholds eventually or other relevant scientific sources of information (e.g. planet boundaries, environmental exposure atlas...). Assessment scores were substantiated by quantified data as much as possible, using a number of sources of information. These include internal information such as: - Life Cycle Analysis, information from topical experts, related internal metrics performance (past or ongoing impacts); - outputs from third party due diligence, internal control reports, or information collected during visits to supplier sites; - elements from findings and alerts from, for example, desktop Supplier Sustainability Maturity Assessments, onsite assessments (including social assessments) or from the grievance mechanism; - inputs obtained as part of stakeholder engagement (see “– 6.1.1.3.2 SBM-2: Interests and views of stakeholders”); as well as external information such as topical and sectoral benchmarks or public reports, and regulatory thresholds. Impact materiality assessment was also supported by the engagement with stakeholders, consistently with the overall stakeholder engagement approach presented in the dedicated disclosure requirement. This includes direct consultation of internal and external experts, information collected from stakeholders through the continuous stakeholder engagement, and from affected stakeholders or their relevant proxies (eg. employees through surveys, content of social dialogue, customers feedback…). The consideration of regulatory thresholds, or topical standards or reference frameworks were also deemed to represent ‘silent’ stakeholders’ interests (e.g. nature). Impact on the Company or financial materiality The potential impact of sustainability-related topics on the Company’s financial performance was assessed by combining -1- a screening and reassignment of the top company risks and opportunities extracted from the company’s enterprise risk management (“ERM”) system to sustainability subtopics assessed following ERM methods and -2- an exhaustive screening of the CSRD-proposed list of subtopics, for which both the associated financial impact level and its likelihood were reassessed. A threshold corresponding to a percentage of EBIT was used, aligned with the relevance threshold for financial statements, alongside equivalent qualitative impact types (e.g. Brand, Compliance etc.). The use of climate scenarios supported the identification of connected impact and dependencies that eventually led to complementing the risk picture (e.g. climate technology risk and energy ecosystem risk). More generally the scrutiny of the Company's business and operating model interdependencies with each sub-topic including through exchanges with topical experts supported the above-mentioned screening. Double materiality assessment was formally presented to and endorsed by the Executive Committee and the Board of Directors. It also supports Internal Control´s prioritisation of work. Sustainability risks and opportunities are integrated into the ERM system and processes, including their identification, assessment and management. Consequently, they are part of the Company risk picture and addressed as defined by the overall process (see “– Corporate Governance – 3.2 Enterprise Risk Management System”). Impacts are covered by the Company Due Diligence process, as presented in the related disclosure requirements. Airbus SE/ Report of the Board of Directors 2024 148
In 2024, the Company updated its double-materiality assessment and refined its methodology to align it with CSRD requirements, as described hereinabove. As recommended in the non-binding Implementation Guidelines for Materiality Assessment, the Company intends to confirm or review (and update) its material matters once a year by taking into account: whether or not material changes in the Company's organisational and operational structure occurred, whether or not external factors occurred in the reporting year, and/or whether or not substantial new information was obtained as the Company progresses in its understanding of topics and their impacts, risks and opportunities. Depending on the significance of these events and developments, the Company would either review the existing DMA or perform a full-scale DMA to ensure the material sustainability matters are properly reported. The 2025 review process is likely to include a benchmark analysis derived from first CSRD reports from other European companies. Complementary disclosure requirements for specific topical ESRS on the description of the processes to identify and assess material impacts, risks and opportunities: E1 Climate change The Company performed an advanced climate impact and risk assessment. This included the consideration of an analysis of GHG emissions from own operations, a screening of all Scope 3 categories, that identified the usage of Airbus products (i.e. Scope 3 Category 11 - Use of Sold Products) as representing a significant proportion of total emissions. Share of Scope 3 Category 11 - Use of Sold Products emission in total emissions >90% The Company also identified climate related risks following a TCFD-aligned approach, that included a screening of its sites and assets potential vulnerabilities to climate hazards (see “– 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)”. Such analyses considered time horizons, assumptions and scenarios (see “– 6.2.2.2 Transition plan for climate mitigation (E1-1)“). See “– 6.2.2 E1 - Climate Change” chapter for full description. E2 Pollution IRO identification processes considered all business operations and Company sites and a number of items specific to the topic, including those mentioned hereafter. The Company has screened the annual declarations made by its sites to local authorities in the context of the European Pollutant Release and Transfer Register (E-PRTR) regulation. Number of facilities exceeding the 100 tonnes threshold for VOC emissions listed in the E-PRTR regulation Annex II. 1 (Hamburg) Impacts in the upstream and downstream value chain have been assessed using the Life Cycle Analysis (LCA) approach, such as the one in relation with kerosene production. For SOC/SOVHC, risks and opportunities have also been assessed using the register of the Company’s top company risks, according to the ERM process. This risk notably applies to aircraft manufacturing and is therefore connected to all sites with such industrial operations and handling chemicals. The materiality assessment did not involve direct consultations with affected communities. E3 Water and marine resources IRO identification processes considered all business activities and Company sites from which environmental data is collected (see “– 6.2.4.5 Metrics (E3-4)” and a number of items specific to the topic, including those mentioned hereafter. The Company analysed current and projected local water stress levels to understand where the Company’s activities have the greatest impact on water resources and where risks of business disruption linked to restrictions on the use of water are the most significant. This analysis is based inter alia on the World Resources Institute’s Aqueduct Water Risk Atlas; this analysis was last updated with the August 2023 update of the Aqueduct Water Risk Atlas (version 4.0), using the “baseline” data as well as the 2030 scenarios. This analysis allowed to identify that the Company operates facilities located in high or extremely high water stress areas in Chile, China, France, Germany, India, Italy, Mexico, Morocco, Portugal, Saudi Arabia, South Africa, Spain, Thailand, Tunisia, UK, US. It includes sites from Commercial Aircraft, Airbus Helicopters and Airbus Defence and Space. As for ESRS E2, impacts in the upstream and downstream value chain have been assessed using the Life Cycle Analysis (LCA) approach. The materiality assessment did not involve consultations with affected communities. E4 Biodiversity The Company is still progressing its understanding of the impact of its activities and those of its value chain on biodiversity. IRO identification was informed by the IPBES report's findings that there are five significant drivers of biodiversity loss: changing use of sea and lands, direct exploitation of organisms, Airbus SE/ Report of the Board of Directors 2024 149
climate change, pollution, and invasive non-native species. Using these five drivers is also prescribed as a framework for analysis by ESRS E4 and was used by the Company to compile an inventory of potential impacts. It considered a number of sources of information, amongst which the aircraft Life Cycle Analysis - that notably quantifies impacts related to land use change, soil, water pollution across the value chain. The indirect impact of climate change appeared as a salient effect on biodiversity as well the indirect impact of aviation fuel production. The Company has considered the proximity of its sites relative to biodiversity-sensitive areas and the nature of operations in the value chain, including existing or potential pollution impacts. To date, the Company has identified limited dependencies on biodiversity and ecosystems within its value chain, including by screening its resource inflows and considering its business model, and primarily due to the fact that manufacturing processes mostly rely on mineral or fossil resources.This limited dependency on ecosystem services as identified to date has not led to the identification of biodiversity-related material transition, physical or systemic risks to the Company’s own operations. The Company is reviewing its assessments on an ongoing basis. Going forward, specific attention will be given to the development of SAF production, particularly those pathways that use crops as feedstock and therefore rely on ecosystem services, striving to get a permanent understanding of SAF production development and perspectives, including by engaging on that matter with relevant players in the SAF value chain and industry bodies. Beyond answering to applicable biodiversity related regulatory requirements that may imply to assess and report to authorities deemed to represent communities’ interests, the Company did not specifically engage with any community on biodiversity in the frame of its DMA. Nature of impacts identified, essentially linked to indirect effects of the use of its product on climate change and of the production of kerosene on the water resource, has not permitted identifying specific communities that would be materially affected. Consequently no affected communities has been involved in the materiality assessment nor any priority actions for the avoidance of impacts on ecosystem services relevant to affected communities has been identified. The Company has identified some sites as being located near biodiversity-sensitive areas based on whether they were subject to specific biodiversity-related obligations as per local / national applicable regulations, or otherwise located in or directly adjacent to biodiversity-sensitive areas, including some with manufacturing and flight test activities. Number of sites located near biodiversity-sensitive areas 15 None of these activities have been associated with a material negative impact on local biodiversity. As a result, measures undertaken in the frame of addressing negative impacts on climate change were deemed to be equally relevant for biodiversity mitigation. E5 Resource use and circular economy IRO identification processes considered all business activities, Company sites and products over their life cycle and a number of items specific to the topic, including those mentioned hereafter. For resource use- and circular economy-related matters, the Company used the results of Life Cycle Assessment (LCA) studies conducted on its commercial aircraft products and considered its procurement volumes per nature of materials covering its overall product portfolio compared with the global resources and specificities related to their sourcing, as well as related airworthiness constraints and certification requirements. It also ran a detailed analysis of waste generated by the Company, including per nature and per site views, as well as in the perspective of its manufacturing processes and of their improvements. The assessment was supported by a number of stakeholders, including a third party expert organisation with experience of identifying and addressing actual or potential impacts and engaging with potentially impacted rightsholders. G1 Business conduct IRO identification processes considered all business activities and Company sites and a number of items specific to the topic, including those mentioned hereafter. Specifically on corruption and bribery, the Company annually conducts a thorough business conduct risk assessment across the Company (based on legal entities), taking into consideration, among others, the Corruption Perception Index published by Transparency International, the size, the activity or the interaction with third parties of the entity. It also considered relevant statistics derived from its grievance mechanism and from the outcomes of associated investigations. On other subtopics, the Company notably considered the amount of lobbying expenses, the amounts spent to its suppliers, related payment terms, as well as the structure of its supply chain. Airbus SE/ Report of the Board of Directors 2024 150
6.1.1.4.2 IRO-2: Disclosure requirements in ESRS covered by the undertaking’s sustainability statement Some datapoints - or some information - associated with a material topic may have been omitted as deemed not material information. Such items were identified through an exhaustive screening of CSRD datapoints and substantiated by comparing the content of the disclosure requirement with the actual boundaries of the related material IROs and/or their relevance in the Company's context. In certain cases a materiality threshold was used, and notably for finance related information, as explained above in ESRS 2 “– 6.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model”. Table. List of the Disclosure Requirements vs. paragraphs where the related disclosures are located in the sustainability statement. DISCLOSURE REQUIREMENTS Related disclosure(s) ESRS 2 General Disclosures BASIS FOR PREPARATION BP-1: General basis for preparation if the sustainability statement 6.1.1.1.1 BP-1: General basis for preparation of the sustainability statement BP-2: Disclosures in relation to specific circumstances 6.1.1.1.2 BP-2: Disclosures in relation to specific circumstances GOVERNANCE GOV-1: The role of the administrative, management and supervisory bodies (AM&SB) 6.1.1.2.1 GOV-1: The role of the administrative, management and supervisory bodies GOV-2: Information provided to and sustainability matters addressed by the undertaking’s AM&SB 6.1.1.2.2 GOV-2: Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies GOV-3: Integration of sustainability-related performance in incentive schemes 6.1.1.2.3 GOV-3: Integration of sustainability-related performance in incentive schemes GOV-4: Statement on sustainability due diligence 6.1.1.2.4 GOV-4: Statement on due diligence GOV-5: Risk management and internal control over sustainability reporting 6.1.1.2.5 GOV-5: Risk management and internal control over sustainability reporting STRATEGY SBM-1: Strategy, business model and value chain 6.1.1.3.1 SBM-1: Strategy, business model and value chain SBM-2: Interests and views of stakeholders 6.1.1.3.2 SBM-2: Interests and views of stakeholders SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model(s) 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 6.2.2.1 Climate Change IROs 6.2.3.1 Pollution IROs 6.2.4.1 Water IROs 6.2.5.1 Biodiversity and ecosystems IROs 6.2.6.1 Resource Use and Circular Economy IROs 6.3.2.1 Own workforce IROs 6.3.3.1 Workers in the value chain IROs 6.3.4.1 Consumers and end-users IROs 6.4.1.1 Business Conduct IROs 6.4.2.1 Cybersecurity IROs DISCLOSURE ON THE MATERIALITY ASSESSMENT PROCESS IRO-1: Description of processes to identify and assess material IROs 6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3) IRO-2: Disclosure requirements in ESRS covered by the undertaking’s sustainability statement 6.1.1.4.2 IRO-2: Disclosure requirements in ESRS covered by the undertaking’s sustainability statement MINIMUM DISCLOSURE REQUIREMENTS ON POLICIES AND ACTIONS MDR-P: Policies adopted to manage material sustainability matters 6.2.1 Policies 6.2.2.4 Policies (E1-2) 6.2.3.2.1 Policies (E2-1) 6.2.3.3.1 Policies (E2-1) 6.2.4.2 Policies (E3-1) 6.2.5.4 Policies (E4-2) 6.2.6.2 Policies (E5-1) 6.3.1 Policies Airbus SE/ Report of the Board of Directors 2024 151
6.3.2.3 Own workforce Policies (S1-1) 6.3.2.7.1 Policies (S1-1) 6.3.2.8.1 Policies (S1-1) 6.3.2.9.1 Policies (S1-1) 6.3.3.3 Policies related to value chain workers (S2-1) 6.3.4.2 Policies related to consumers and end-users (S4-1) 6.4.1.2 Business conduct policies and corporate culture (G1-1) 6.4.2.2 Policies MDR-A: Actions and resources in relation to material sustainability matters 6.2.2.5 Actions and resources (E1-3) 6.2.3.2.2 Actions and resources (E2-2) 6.2.3.3.2 Actions and resources (E2-2) 6.2.4.3 Actions and resources (E3-2) 6.2.5.5 Actions and resources (E4-3) 6.2.6.3.1 Actions and resources (E5-2) 6.2.6.4.1 Actions and resources (E5-2) 6.3.2.7.2 Actions and resources (S1-4) 6.3.2.8.2 Actions and resources (S1-4) 6.3.2.9.2 Actions and resources (S1-4) 6.3.3.6 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions (S2-4) 6.3.4.5 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions (S4-4) 6.4.1.2 Business conduct policies and corporate culture (G1-1) 6.4.1.5 Management of relationships with suppliers (G1-2) 6.4.1.3 Prevention and detection of corruption and bribery (G1-3) 6.4.2.3 Actions and resources MINIMUM DISCLOSURES REQUIREMENTS ON METRICS AND TARGETS MDR-M: Metrics in relation to material sustainability matters 6.2.2.7 Energy Consumption and Mix (E1-5) 6.2.2.8 GHG Emissions (E1-6) 6.2.2.9 GHG removals and carbon credits (E1-7) 6.2.3.2.4 Metrics (E2-5) 6.2.3.3.4 Metrics (E2-4) 6.2.4.5 Metrics (E3-4) 6.2.6.4.3 Metrics (E5-5) 6.3.2.6 Characteristics of the undertaking’s employees (S1-6) 6.3.2.9.4 Metrics (S1-8) 6.3.2.8.4 Metrics (S1-9) 6.3.2.7.4 Metrics (S1-14) 6.3.4.6 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities (S4-5) and metrics 6.4.1.3 Prevention and detection of corruption and bribery (G1-3) 6.4.1.4 Incidents of corruption or bribery (G1-4) 6.4.1.6 Payment practices (G1-6) 6.4.2.5 Metrics MDR-T: Tracking effectiveness of policies and actions through targets 6.2.2.6 Targets (E1-4) 6.2.3.2.3 Targets (E2-3) 6.2.3.3.3 Targets (E2-3) 6.2.4.4 Targets (E3-3) 6.2.5.6 Targets and metrics related to biodiversity and ecosystems (E4-4) 6.2.6.3.2 Targets (E5-3) 6.2.6.4.2 Targets (E5-3) 6.3.2.7.3 Targets (S1-5) 6.3.2.8.3 Targets (S1-5) 6.3.2.9.3 Targets (S1-5) 6.3.3.7 Targets related to material negative impacts, advancing positive impacts, and managing material risks and opportunities (S2-5) 6.3.4.6 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities (S4-5) and metrics 6.4.2.4 Targets ESRS 1 - CLIMATE CHANGE ESRS 2 General disclosures See above Governance o Disclosure requirement related to ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes 6.1.1.2.3 GOV-3: Integration of sustainability-related performance in incentive schemes Strategy o Disclosure Requirement E1-1 – Transition plan for climate change mitigation 6.2.2.2 Transition plan for climate change mitigation (E1-1) Airbus SE/ Report of the Board of Directors 2024 152
o Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3) Impact, risk and opportunity management o Disclosure requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities 6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3) o Disclosure Requirement E1-2 – Policies related to climate change mitigation and adaptation 6.2.1 Policies 6.2.2.4 Policies (E1-2) o Disclosure Requirement E1-3 – Actions and resources in relation to climate change policies 6.2.2.5 Actions and resources (E1-3) Metrics and targets o Disclosure Requirement E1-4 – Targets related to climate change mitigation and adaptation 6.2.2.6 Targets (E1-4) o Disclosure Requirement E1-5 – Energy consumption and mix 6.2.2.7 Energy Consumption and Mix (E1-5) o Disclosure Requirement E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions 6.2.2.8 GHG Emissions (E1-6) o Disclosure Requirement E1-7 – GHG removals and GHG mitigation projects financed through carbon credits 6.2.2.9 GHG removals and carbon credits (E1-7) o Disclosure Requirement E1-8 – Internal carbon pricing 6.2.1.10 Internal carbon pricing (E1-8) ESRS E2 - POLLUTION ESRS 2 General disclosures See above Impact, risk and opportunity management o Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material pollution-related impacts, risks and opportunities 6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs o Disclosure Requirement E2-1 – Policies related to pollution 6.2.1 Policies 6.2.3.2.1 Policies (E2-1) 6.2.3.3.1 Policies (E2-1) o Disclosure Requirement E2-2 – Actions and resources related to pollution 6.2.3.2.2 Actions and resources (E2-2) 6.2.3.3.2 Actions and resources (E2-2) Metrics and targets o Disclosure Requirement E2-3 – Targets related to pollution 6.2.3.2.3 Targets (E2-3) 6.2.3.3.3 Targets (E2-3) o Disclosure Requirement E2-4 – Pollution of air, water and soil 6.2.3.2.4 Metrics (E2-5) 6.2.3.3.4 Metrics (E2-5) ESRS E3 - WATER AND MARINE RESOURCES ESRS 2 General disclosures See above Impact, risk and opportunity management o Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities 6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs o Disclosure Requirement E3-1 – Policies related to water and marine resources 6.2.1 Policies 6.2.4.2 Policies (E3-1) o Disclosure Requirement E3-2 – Actions and resources related to water and marine resources 6.2.4.3 Actions and resources (E3-2) Metrics and targets o Disclosure Requirement E3-3 – Targets related to water and marine resources 6.2.4.4 Targets (E3-3) o Disclosure Requirement E3-4 – Water consumption 6.2.4.5 Metrics (E3-4) Airbus SE/ Report of the Board of Directors 2024 153
ESRS E4 - BIODIVERSITY AND ECOSYSTEMS ESRS 2 General disclosures See above Strategy o Disclosure Requirement E4-1 – Transition plan and consideration of biodiversity and ecosystems in strategy and business model 6.2.5.2 Transition plan and consideration of biodiversity and ecosystems in strategy and business model (E4-1) o Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Impact, risk and opportunity management 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 6.2.5.3 Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3) o Disclosure Requirement related to ESRS 2 IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities 6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs o Disclosure Requirement E4-2 – Policies related to biodiversity and ecosystems 6.2.1 Policies 6.2.5.4 Policies (E4-2) o Disclosure Requirement E4-3 – Actions and resources related to biodiversity and ecosystems 6.2.5.5 Actions and resources (E4-3) Metrics and targets o Disclosure Requirement E4-4 – Targets related to biodiversity and ecosystems 6.2.5.6 Targets and metrics related to biodiversity and ecosystems (E4-4) o Disclosure Requirement E4-5 – Impact metrics related to biodiversity and ecosystems change 6.2.5.6 Targets and metrics related to biodiversity and ecosystems (E4-4) ESRS E5 - RESOURCE USE AND CIRCULAR ECONOMY ESRS 2 General disclosures See above Impact, risk and opportunity management o Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities 6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs o Disclosure Requirement E5-1 – Policies related to resource use and circular economy 6.2.1 Policies 6.2.6.2 Policies (E5-1) o Disclosure Requirement E5-2 – Actions and resources related to resource use and circular economy 6.2.6.3.1 Actions and resources (E5-2) 6.2.6.4.1 Actions and resources (E5-2) Metrics and targets o Disclosure Requirement E5-3 – Targets related to resource use and circular economy 6.2.6.3.2 Targets (E5-3) 6.2.6.4.2 Targets (E5-3) o Disclosure Requirement E5-5 – Resource outflows 6.2.6.4.3 Metrics (E5-5) ESRS S1 - OWN WORKFORCE ESRS 2 General disclosures See above Strategy o Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders 6.1.1.3.2 SBM-2: Interests and views of stakeholders o Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Impacts, risks and opportunities management 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model o Disclosure Requirement S1-1 – Policies related to own workforce 6.3.1 Policies 6.3.2.3 Own workforce policies (S1-1) 6.3.2.7.1 Policies (S1-1) 6.3.2.8.1 Policies (S1-1) 6.3.2.9.1 Policies (S1-1) o Disclosure Requirement S1-2 – Processes for engaging with own workers and workers’ representatives about impacts 6.3.2.4 Processes for engaging with own workers and workers’ representatives about impacts (S1-2) o Disclosure Requirement S1-3 – Processes to remediate negative impacts and channels for own workers to raise concerns 6.3.2.5 Processes to remediate negative impacts and channels for own workers to raise concerns (S1-3) o Disclosure Requirement S1-4 – Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 6.3.2.7.2 Actions and resources (S1-4) 6.3.2.8.2 Actions and resources (S1-4) 6.3.2.9.2 Actions and resources (S1-4) Metrics and targets Airbus SE/ Report of the Board of Directors 2024 154
o Disclosure Requirement S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 6.3.2.7.3 Targets (S1-5) 6.3.2.8.3 Targets (S1-5) 6.3.2.9.3 Targets (S1-5) o Disclosure Requirement S1-6 – Characteristics of the undertaking’s employees 6.3.2.6 Characteristics of the undertaking’s employees (S1-6) o Disclosure Requirement S1-8 – Collective bargaining coverage and social dialogue 6.3.2.9.4 Metrics (S1-8) o Disclosure Requirement S1-9 – Diversity metrics 6.3.2.8.4 Metrics (S1-9) o Disclosure Requirement S1-14 – Health and safety metrics 6.3.2.7.4 Metrics (S1-14) ESRS S2 - WORKERS IN THE VALUE CHAIN ESRS 2 General disclosures See above Strategy o Disclosure Requirement related to ESRS 2 SBM-2 Interests and views of stakeholders 6.1.1.3.2 SBM-2: Interests and views of stakeholders o Disclosure Requirement related to ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model Impact, risk and opportunity management 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 6.3.3.1 Workers in the value chain IROs o Disclosure Requirement S2-1 – Policies related to value chain workers 6.3.1 Policies 6.3.3.3 Policies related to value chain workers (S2-1) o Disclosure Requirement S2-2 – Processes for engaging with value chain workers about impacts 6.3.3.4 Processes for engaging with value chain workers about impacts (S2-2) o Disclosure Requirement S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns 6.3.3.5 Processes to remediate negative impacts and channels for value chain workers to raise concerns (S2-3) o Disclosure Requirement S2-4 – Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions 6.3.3.6 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those action (S2-4) Metrics and targets o Disclosure Requirement S2-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 6.3.3.7 Targets related to material negative impacts, advancing positive impacts, and managing material risks and opportunities (S2-5) ESRS S4 - CONSUMERS AND END-USERS ESRS 2 General Disclosures See above Strategy o Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders 6.1.1.3.2 SBM-2: Interests and views of stakeholders o Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 6.3.4.1 Consumer and end-user IROs 6.3.4.1.2 ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Impact, risk and opportunity management o Disclosure Requirement S4-1 – Policies related to consumers and end-users 6.3.1 Policies 6.3.4.2 Policies related to consumers and end-users (S4-1) o Disclosure Requirement S4-2 – Processes for engaging with consumers and end users about impacts 6.3.4.3 Processes for engaging with consumers and end-users about impacts (S4-2) o Disclosure Requirement S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 6.3.4.4 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns (S4-3) o Disclosure Requirement S4-4 – Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions 6.3.4.5 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions (S4-4) Metrics and targets o Disclosure Requirement S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 6.3.4.6 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities (S4-5) and metrics Airbus SE/ Report of the Board of Directors 2024 155
ESRS G1 - BUSINESS CONDUCT ESRS 2 General disclosures See above Governance o Disclosure Requirement related to ESRS 2 GOV-1 – The role of the administrative, supervisory and management bodies Impact, risk and opportunity management 6.1.1.2.1 GOV-1: The role of the administrative, management and supervisory bodies o Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities 6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs o Disclosure Requirement G1-1– Corporate culture and business conduct policies and corporate culture 6.4.1.2 Business conduct policies and corporate culture (G1-1) o Disclosure Requirement G1-2 – Management of relationships with suppliers 6.4.1.5 Management of relationships with suppliers (G1-2) o Disclosure Requirement G1-3 – Prevention and detection of corruption and bribery 6.4.1.3 Prevention and detection of corruption and bribery (G1-3) Metrics and targets o Disclosure Requirement G1-4 – Confirmed incidents of corruption or bribery 6.4.1.4 Incidents of corruption or bribery (G1-4) o Disclosure Requirement G1-6 – Payment practices 6.4.1.6 Payment practices (G1-6) COMPANY SPECIFIC - CYBERSECURITY ESRS 2 General disclosures See above Strategy o Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Impacts, risks and opportunities management 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model o Policies 6.4.2.2 Policies o Taking action, and effectiveness of those actions 6.4.2.3 Actions and resources Metrics and targets o Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 6.4.2.4 Targets o Metrics 6.4.2.5 Metrics Table. Datapoints that derive from other EU legislations Disclosure Requirement and related datapoint SFDR (1) reference Pillar 3 (2) reference Benchmark Regulation (3) reference EU Climate Law (4) reference Sustainability Statement ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d) Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation (EU) 2020/1816 (5), Annex II 6.1.1.2.1 GOV-1: The role of the administrative, management and supervisory bodies ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) Delegated Regulation (EU) 2020/1816, Annex II 6.1.1.2.1 GOV-1: The role of the administrative, management and supervisory bodies ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10 Table #3 of Annex 1 6.1.1.2.4 GOV-4: Statement on due diligence Airbus SE/ Report of the Board of Directors 2024 156
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i Indicators number 4 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 (6) Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii Indicator number 9 Table #2 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1818 (7), Article 2(1) Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 Regulation (EU) 2021/1119, Article 2(1) 6.2.2.2 Transition plan for climate change mitigation (E1-1) ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book-Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article 12.1 (d) to (g), and Article 12.2 6.2.2.2 Transition plan for climate change mitigation (E1-1) ESRS E1-4 GHG emission reduction targets paragraph 34 Indicator number 4 Table #2 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 6 6.2.2.6 Targets (E1-4) ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 6.2.2.7 Energy Consumption and Mix (E1-5) ESRS E1-5 Energy consumption and mix paragraph 37 Indicator number 5 Table #1 of Annex 1 6.2.2.7 Energy Consumption and Mix (E1-5) ESRS E1-5 Energy intensity associated with activities in high climate impact sectors Indicator number 6 Table #1 of Annex 1 6.2.2.7 Energy Consumption and Mix (E1-5) Airbus SE/ Report of the Board of Directors 2024 157
paragraphs 40 to 43 ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 Indicators number 1 and 2 Table #1 of Annex 1 Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) 6.2.2.8 GHG Emissions (E1-6) ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 Indicators number 3 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 8(1) 6.2.2.8 GHG Emissions (E1-6) ESRS E1-7 GHG removals and carbon credits paragraph 56 Regulation (EU) 2021/1119, Article 2(1) 6.2.2.9 GHG removals and carbon credits (E1-7) ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II Phased-in ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk. Phased-in ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c). Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2:Banking book -Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral Phased-in ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 Delegated Regulation (EU) 2020/1818, Annex II Phased-in ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 6.2.3.3.4 Metrics (E2-5) (Air pollution - VOC) ESRS E3-1 Water and marine Indicator number 7 Table #2 of Annex 1 6.2.4.2 Policies (E3-1) Airbus SE/ Report of the Board of Directors 2024 158
resources paragraph 9 ESRS E3-1 Dedicated policy paragraph 13 Indicator number 8 Table 2 of Annex 1 6.2.4.2 Policies (E3-1) ESRS E3-1 Sustainable oceans and seas paragraph 14 Indicator number 12 Table #2 of Annex 1 Not material ESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator number 6.2 Table #2 of Annex 1 6.2.4.5 Metrics (E3-4) ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29 Indicator number 6.1 Table #2 of Annex 1 6.2.4.5 Metrics (E3-4) ESRS 2- SBM-3 - E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 6.2.5.3 Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3) ESRS 2- SBM-3 - E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 6.2.5.3 Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3) ESRS 2- SBM-3 - E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 6.2.5.3 Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3) ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24(b) Indicator number 11 Table #2 of Annex 1 Not material ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) Indicator number 12 Table #2 of Annex 1 Not material ESRS E4-2 Policies to address deforestation paragraph 24 (d) Indicator number 15 Table #2 of Annex 1 Not material ESRS E5-5 Non-recycled waste paragraph 37 (d) Indicator number 13 Table #2 of Annex 1 6.2.6.4.3 Metrics (E5-5) ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 Indicator number 9 Table #1 of Annex 1 6.2.6.4.3 Metrics (E5-5) (Radioactive waste - Not material) Airbus SE/ Report of the Board of Directors 2024 159
ESRS 2- SBM-3 - S1 Risk of incidents of forced labour paragraph 14 (f) Indicator number 13 Table #3 of Annex I Not material ESRS 2- SBM-3 - S1 Risk of incidents of child labour paragraph 14 (g) Indicator number 12 Table #3 of Annex I Not material ESRS S1-1 Human rights policy commitments paragraph 20 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I 6.3.1 Policies 6.3.2.3 Own workforce Policies (S1-1) ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 Delegated Regulation (EU) 2020/1816, Annex II 6.1.1.2.4 GOV-4: Statement on due diligence 6.3.1 Policies ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 Indicator number 11 Table #3 of Annex I Not material ESRS S1-1 workplace accident prevention policy or management system paragraph 23 Indicator number 1 Table #3 of Annex I 6.3.1 Policies 6.3.2.7.1 Policies (S1-1) ESRS S1-3 grievance/complaints handling mechanisms paragraph 32 (c) Indicator number 5 Table #3 of Annex I 6.3.2.5 Processes to remediate negative impacts and channels for own workers to raise concerns (S1-3) 6.4.1.2 Business conduct policies and corporate culture (G1-1) ESRS S1-14 Number of fatalities and number and rate of work- related accidents paragraph 88 (b) and (c) Indicator number 2 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II 6.3.2.7.4 Metrics (S1-14) ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) Indicator number 3 Table #3 of Annex I 6.3.2.7.4 Metrics (S1-14) ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) Indicator number 8 Table #3 of Annex I Not material ESRS S1-17 Incidents of discrimination paragraph 103 (a) Indicator number 7 Table #3 of Annex I Not material Airbus SE/ Report of the Board of Directors 2024 160
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 104 (a) Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) Not material ESRS 2- SBM-3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) Indicators number 12 and n. 13 Table #3 of Annex I 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model 6.3.3.1 Workers in the value chain IROs ESRS S2-1 Human rights policy commitments paragraph 17 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 6.3.1 Policies 6.3.3.3 Policies related to value chain workers (S2-1) ESRS S2-1 Policies related to value chain workers paragraph 18 Indicator number 11 and n. 4 Table #3 of Annex 1 6.3.1 Policies 6.3.3.3 Policies related to value chain workers (S2-1) ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) 6.1.1.2.4 GOV-4: Statement on due diligence 6.3.1 Policies ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) 6.1.1.2.4 GOV-4: Statement on due diligence 6.3.1 Policies ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 Indicator number 14 Table #3 of Annex 1 6.3.3.6 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those action (S2-4) ESRS S3-1 Human rights policy commitments paragraph 16 Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 Not material ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17 Indicator number 10 Table #1 Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Not material ESRS S3-4 Human rights issues and incidents paragraph 36 Indicator number 14 Table #3 of Annex 1 Not material ESRS S4-1 Policies related to consumers and end-users paragraph 16 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 6.3.1 Policies 6.3.4.2 Policies related to consumers and end-users (S4-1) Airbus SE/ Report of the Board of Directors 2024 161
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) 6.3.1 Policies 6.3.4.2 Policies related to consumers and end-users (S4-1) ESRS S4-4 Human rights issues and incidents paragraph 35 Indicator number 14 Table #3 of Annex 1 6.3.4.5 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions (S4-4) ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) Indicator number 15 Table #3 of Annex 1 6.4.1.2 Business conduct policies and corporate culture (G1-1) ESRS G1-1 Protection of whistle- blowers paragraph 10 (d) Indicator number 6 Table #3 of Annex 1 6.4.1.2 Business conduct policies and corporate culture (G1-1) ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) Indicator number 17 Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II) 6.4.1.4 Incidents of corruption or bribery (G1-4) ESRS G1-4 Standards of anti- corruption and anti- bribery paragraph 24 (b) Indicator number 16 Table #3 of Annex 1 6.4.1.4 Incidents of corruption or bribery (G1-4) (1) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1). (2) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation “CRR”) (OJ L 176,27.6.2013, p. 1). (3) Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1). (4) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1). (5) Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark provided and published (OJ L 406, 3.12.2020, p. 1). (6) Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022 amending the implementing technical standards laid down in Implementing Regulation (EU) 2021/637 as regards the disclosure of environmental, social and governance risks (OJ L 324,19.12.2022, p.1.). (7) Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (OJ L 406, 3.12.2020, p. 17). Airbus SE/ Report of the Board of Directors 2024 162
6.2 Environmental information 6.2.1 Policies Environmental policy The Airbus Environmental Policy outlines the Company's guiding principles, vision, mission, and associated initiatives relating to environmental sustainability. This policy applies to the Company’s own operations, therefore including to affiliates where the Company owns more than half of the voting rights or has the right to appoint the majority of the Board directors. It also covers the Company’s employees and contractors while at its sites or at work under its responsibility. The policy acknowledges that our planet is facing substantial challenges such as climate change, water, soil and air pollution, resource scarcity and loss of biodiversity. It mandates the development of products and services that minimise environmental impacts, particularly addressing climate change, pollution, and resource use. To enable such an ambition, the Company has set a number of environmental targets, as presented in the respective ESRS. They relate both to the Company's own operations (e.g. GHG emissions, from both stationary sources and mobile sources - including flight test and logistics -, energy - including the use of energy sources -, water, waste management, VOC) and its value chain (e.g. GHG emissions of sold products) and cover material impacts. Compliance with applicable environmental regulations and maintaining the ISO 14001:2015 Certified Environmental Management System (EMS) are integral components of the Company's commitment to its environmental stewardship. 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 and substances. In addition, the Company’s ISO 14001 certified EMS notably applies the standard recommendations for pollution control audits, training, risk assessment and identification, implementation of risk prevention procedures (emergency plans, simulation exercises). For example, sites shall conduct an analysis of environmental aspects and impacts at least every three years, as well as each time a material change in operations occurs, also in connection with the Company’s ERM process. While the EMS sets requirements, actual deployment, concrete means and measures are managed at site level and adapted to the nature of a site’s industrial activities and to applicable regulations. For instance, in Toulouse and linked to flight test activities, concerned employees systematically follow dedicated training sessions, including on instructions for fuel handling or on procedures to follow in case of an incident. Also, each year, more than five spill-related emergency situations (e.g. a kerosene leak or a fire-fighting water spill) are conducted to test defined emergency plans. At least one emergency situation is performed in coordination with local authorities. EMS certification coverage Unit 2024 % employees covered by ISO 14001 certified EMS % 90% In addition, an increasing number of sites, including for instance in Spanish sites and Marignane, are certified ISO 50001:2018 for energy management and therefore apply embedded requirements such as running energy audits that enable the identification of improvements or the deployment of related training for concerned employees. The policy is based on principles including integrity, innovation, sustainability, and engaging stakeholders throughout the value chain that aim to inform all decisions, actions and practices in the scope of the Company’s environmental roadmap. The Company commits to complying with its obligations under environmental regulations and standards, minimising environmental impacts through responsible decision-making, leveraging advanced technologies for continual improvement, and integrating environmental, societal, and economic considerations into its business strategy. The policy places significant emphasis on stakeholder collaboration, engaging with suppliers and the aerospace sector to encourage sustainable practices and promote responsible environmental management within the supply chain. A lifecycle perspective is adopted, considering environmental impacts - including GHG and air emissions, pollution, water, circularity, and other dimensions - from product design to end-of-life. The Company invests in lifecycle assessments (LCA) for environmental impact accounting associated with a specific product, in accordance with the requirements specified in the ISO 14040 standard. LCA studies have been finalised for all commercial aircraft products delivered in 2024. In addition, the Company is deploying frameworks enabling design choices to reduce the footprint of operations, projects and products and optimise aspects such as product end-of-life management and critical raw materials usage. For instance, environmental assessments are being used to assist the research and technology decision-making processes related to commercial aircraft activities. The Defence Airbus SE/ Report of the Board of Directors 2024 163
and Space Division also uses LCA as part of the development of the Sentinel satellites that are built for the European Space Agency. The monitoring process within Airbus Environmental Policy involves several key components: - compliance monitoring of the Company’s adherence to its obligations under environmental laws, regulations, and standards; - performance evaluation committed to the continuous improvement of environmental reporting and performance evaluation processes; - stakeholder engagement to strengthen cooperation and communication with both internal and external stakeholders, for instance with suppliers, customers, industry bodies, - and risk management to anticipate legislative changes and effectively manage compliance risks to maintain robust environmental standards. Employees’ awareness, training and competence management is another key dimension supporting the proper deployment of the policy throughout the organisation and embedded in the Company’s business management system. Under the oversight of the Human Resource function, competence gaps are identified and addressed through dedicated training schemes. The Chief Sustainability Officer is accountable for the policy. The policy development followed the related requirements of the ISO 14001:2015 Standard. It is available to all employees, and a policy statement signed by the CEO is available on the Company’s public website. Environmental operations are led by the Sustainability organisation, whose role is to guide the business on environmental matters and to set the policy and deploy, drive and improve the EMS throughout the Company. 6.2.2 ESRS E1 - Climate change 6.2.2.1 Climate Change IROs The following IROs were identified for climate change: ESRS (sub-)topic Impact, risk or opportunity Description Time horizon Location in the value chain ESRS E1 Climate change Climate change mitigation Actual negative impact The operations at the Company's facilities and the air transport sector's use of aircraft in operations lead to GHG emissions. The Company's purchased goods and services contain GHG emissions. Short-term,mid -term and long-term Own Operations, Upstream, Downstream (Use of Products) ESRS E1 Climate change Energy Actual negative impact Energy consumption/mix usage originating from the Company's facilities, the suppliers’ facilities and the air transport sector's use of aircraft in operation lead to GHG emissions. Short-term, mid-term and long-term Own Operations, Upstream, Downstream (Use of Products) ESRS E1 Climate change Climate change adaptation Physical risk The climate adaptation risk includes the risk that the Company or its suppliers may fail to mitigate the acute or chronic impacts of future climate change on their industrial sites. Additionally, failure to adapt products to perform effectively under future atmospheric conditions in a timely manner, relative to the speed of these risks' onset or time horizon could lead to production disruptions or a product offering that no longer meets customer expectations. This could negatively affect financial performance. See “6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS Own Operations, Upstream, Downstream (Use of Products) ESRS E1 Climate change Climate change mitigation Transition risk The climate mitigation risk includes the risk that the Company or its suppliers may not meet their decarbonisation ambitions or the late availability of low emissions technology could lead to, respectively, investor mistrust or products failing to meet customer expectations. This could negatively affect financial performance. Own Operations, Upstream, Downstream (Use of Products) Airbus SE/ Report of the Board of Directors 2024 164
2 SBM-3)” ESRS E1 Climate change Energy Risk The energy-related risk includes the risk that renewable and low carbon energy (e.g. SAF, hydrogen) may not be available in sufficient quantities in the necessary time frames. This could lead to less air travel and lower demand for aircraft or for future aircraft programmes if not suited to available energy sources, which could negatively affect financial performance. Own Operations, Downstream (Use of Products) 6.2.2.2 Transition plan for climate change mitigation (E1-1) In line with the Company’s purpose, “pioneering sustainable aerospace for a safe and united world”, and its aim to lead the transition of the air transport sector towards the goal set by the International Air Transport Association (IATA), Air Transport Action Group (ATAG) and International Civil Aviation Organization (ICAO) to reach ‘net zero carbon emissions by 2050’, the Company’s foremost ambition is to play a leading role in the decarbonisation of the aviation sector. This includes developing technologies for the next generations of commercial aircraft, and the ambition to bring a commercially viable, fully electric, hydrogen-powered commercial aircraft into service. Based on the International Energy Agency (IEA) remaining global carbon budget and the share it allocates to air transport, air transport can grow at up to a certain level and meet the Paris Agreement objectives. This relies in part on technological developments to improve the fuel efficiency of air transport, in which the Company and its suppliers have a role to play. This approach also echoes “net-zero carbon emissions by 2050” ambitions from international sectoral bodies such as the ATAG, as well as the UN specialised civil aviation body, ICAO. This is consistent with the Company’s near-term target setting, covering all three scopes of emissions, and with its core product policy that focuses on developing and delivering more efficient aircraft while engaging with the energy ecosystem. The Company has set combined near-term targets to reduce its GHG emissions (please refer to “– 6.2.2.6 Targets (E1-4)” for a detailed description) that are validated by the SBTi as being science-based and aligned with limiting global warming to 1.5°C for Scopes 1 and 2 and with well-below 2°C for Scope 3 relating to the use of its commercial aircraft in service (Scope 3 Use of Sold Products (Cat 11)). This is in accordance with SBTi's criteria and recommendations for near-term targets. Share of Company's Commercial business segment Scope 3 Use of Sold Products emissions Unit In overall Commercial business segment emissions (all scopes) % >95% In overall Company emissions (all scopes) % >90% The Company's Scope 3 Use of Sold Products CO 2 intensity projections (CO 2 /RPK) are related to the Company's delivered commercial aircraft in a given year (2015/2035) over the entire life of service. To achieve its GHG emission targets, the Company has developed a transition plan of climate mitigation actions. The plan is structured into decarbonisation levers and sub-levers, which cover innovation in the Company’s product and service portfolio, its own operations, and in the Company’s value chain. A diverse range of factors of different climate scenarios have been considered to detect relevant environmental, societal, technology, market and policy-related developments and determine decarbonisation levers. For more details on the usage of scenarios, please refer to the “– 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)” hereafter. Key actions within each decarbonisation lever are detailed in the section “– 6.2.2.5 Actions (E1-3)”. The integration of the decarbonisation levers across all of the Company’s business activities, coupled with the focus on enhancing efficiency in its products, translates the objectives of the transition plan into the Company’s business model and strategy. The potential of technological levers to support the compatibility of the Company's business model with the transition to a sustainable economy and with the limiting of global warming to 1.5°C in line with the Paris Agreement and the objective of achieving climate neutrality by 2050 are based on its experience and expertise in the field of commercial aviation in collaboration with industrial partners such as engine manufacturers. Energy and SAF related levers are informed by the sector's work on the topic as well as elements drawn from IEA scenarios and regulatory frameworks around the world. The transition plan has been approved by the Company’s Executive Committee and the Board of Directors. Regular updates on the progress of this plan are presented to the Board’s ECSC. Airbus SE/ Report of the Board of Directors 2024 165
The Company has defined the following decarbonisation levers in order to ensure that its business model and strategy remain compatible with the transition to a sustainable economy (for more details, see “– 6.2.2.5 Actions (E1-3)”): Decarbonisation lever #1 - Energy efficiency (Scopes 1&2). This decarbonisation lever focuses on increasing building (stationary) energy efficiency and mobile energy efficiency. Decarbonisation lever #2 - Renewable energy (Scopes 1&2). This decarbonisation lever focuses on switching to renewable energy through Power Purchase Agreements (PPA) (stationary), developing local site renewable energy generation (stationary), and uptake of SAF in its internal operations - logistics and flight tests - (mobile). Decarbonisation lever #3 - Technology improvement introduction (Scope 3). This decarbonisation lever focuses on the continuous improvement of the latest generation aircraft as well as developing next generation aircraft that are more fuel efficient than current models. Decarbonisation lever #4 - SAF uptake (Scope 3). This decarbonisation lever focuses on fostering the development of the SAF ecosystem, contributing to the setting of industry standards for fuels, and developing aircraft that are 100% SAF capable. Decarbonisation lever #5 - Operations improvement (Scope 3). This decarbonisation lever focuses on developing the Commercial Aircraft portfolio of services aimed at supporting customers in reducing emissions arising from the usage of commercial aircraft, in collaboration with relevant actors in the air transport sector (e.g. Air Traffic Management). The last three decarbonisation levers refer to the Company’s Scope 3 use of sold products. They imply a close collaboration with many players in the aviation and energy sectors and are consistent with the aviation sector's long-term aspirational decarbonisation goal of reaching “net-zero carbon emissions” by 2050, as illustrated on the following chart. In October 2022, the aspirational objective of “net zero carbon emissions” in 2050 for international civil aviation operations was adopted by a vast majority of ICAO member states. This political commitment paves the way for the transformation of the aviation sector, ensuring a level playing field at international level and it will accelerate the development of mitigation measures such as fleet renewal, aircraft and engine technologies, alternative energy carriers such as SAF or green hydrogen, and the enhancements of the operational practices and air traffic management. The Company fully supports this international long-term aspirational goal. The Company's activities are not excluded by the EU’s Paris-aligned benchmark framework. Investing in the future The Company’s total Research and Development budget (see table below) is mainly split between - but not limited to - investments in incremental developments of the Company’s current product portfolio which is required to maintain its competitiveness, including from a fuel / CO 2 efficiency perspective, as well as investment in the development of breakthrough technologies (e.g. hydrogen based systems, electric machines, energy storage and distribution) that are required for future products. Airbus SE/ Report of the Board of Directors 2024 166
Key figures Unit 2024 Research and development spent Bn € 3.250 Total OpEx (R&D) meeting EU Taxonomy technical screening criteria for substantial contribution to climate change mitigation objective (also referred to as “Alignment assessment - conditional use of substances" in section “– 6.2.7.3”) Bn € 1.440 Of which, reported as aligned (OpEx) in the EU Taxonomy report Bn € 0 Total CapEx meeting EU Taxonomy technical screening criteria for substantial contribution to climate change mitigation objective (also referred to as “Alignment assessment - conditional use of substances" in section “– 6.2.7.3”) Bn € 1.472 Of which, reported as aligned (CapEx) in the EU Taxonomy report Bn € 0 See “– 6.2.7 EU taxonomy - Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)” EU Taxonomy. See “– 6.2.7 EU taxonomy - Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)” The Commercial Aircraft business of the Company is covered by the EU Taxonomy under the activity “3.21 Manufacturing of Aircraft” of the environmental target of climate change mitigation (see “– 6.2.7 EU taxonomy - Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)”). The Company has not utilised the instrument of CapEx/OpEx plans to align its economic activities with the technical screening criteria. The “Manufacturing of Aircraft” criteria includes a transition period until January 1st, 2028, after which alignment will depend on the clarification by the sector and relevant certification agencies for a fuel standard of “100% SAF” specifications and the Company's ability to certify its commercial aircraft products accordingly. As such, the Company is not able to anticipate the evolutions of the alignment of its economic activities in future years. Locked-in GHG emissions Locked-in GHG emissions - Products. For products (AR.3.(b)), the locked-in GHG emissions are considered equal to Scope 3 - Category 11, Use of sold products for the current year and future Scope 3 emissions of aircraft currently in the order book. Please refer to section “– 6.2.2.8 GHG Emissions (E1-6)”. Locked-in GHG emissions - Assets. Emissions from all key assets are tracked by the Company's environmental reporting. Future emissions are calculated based on local energy network assumptions and taking into account the decarbonisation levers (as described above) and the impact of industrial production evolution. Locked-in GHG emissions for these assets are calculated as the sum of yearly residual emissions until 2030, with further efforts being required for evaluating the locked-in GHG emissions until 2050. Locked-in emissions were taken into account when GHG emission reduction targets were set. For more details on how the Company plans to manage its GHG-intensive and energy intensive assets and products, refer to the “– 6.2.2.2 Transition plan for climate mitigation (E1-1)” and “– 6.2.2.5 Actions (E1-3)”. Tracking progress and performance Scope 1 & 2 market-based GHG emissions Unit Target year Target value % vs baseline Baseline year Baseline value 2024 value 2023 value YoY change 2024 vs. baseline Company (SBTi approved) ktCO 2 e 2030 467 -63% 2015 1,262 614 675 -9% -51% “TCO scope” (1) ktCO 2 e 2024 581 -2% 2023 592 524 592 -11% -11% Assumptions and (1): see “Scope of reporting and methodology” in “– 6.2.2.8 GHG Emissions (E1-6)” Scopes 1&2 GHG emissions have decreased, exceeding the yearly target (see table), primarily due to five factors: a production adjustment during the year, clement weather conditions especially during winter, emission factor updates as well as savings from the increased usage of SAF and biofuels in own operations and the increased purchase of renewable electricity. This supports the trajectory towards the 2030 target, that integrates expected upcoming aircraft production ramp-up. Airbus SE/ Report of the Board of Directors 2024 167
Scope 3 GHG intensity Commercial aircraft Unit Target year Target value % vs baseline Baseline year Baseline value 2024 value 2023 value YoY change 2024 vs. baseline Intensity SBTi approved target gCO 2 e/ km.pax 2035 48.0 -46% 2015 88.8 61.1 62.9 -3% -31% Number of delivered aircraft No. 766 735 4% Of which, incl. in scope 3 commercial aircraft No. 764 732 Scope: Company's commercial aircraft Assumptions: see “– 6.2.2.8 GHG Emissions (E1-6)” Since 2015, the improvement of commercial aircraft Scope 3 efficiency - measured through this metric - was largely supported by significant investments into new aircraft technology and designs, as well as by projected SAF uptake impact to a lower extent. Given the variable time horizons of each of the five decarbonisation pathways presented above, it is expected that the forecasted increase of SAF used by airlines in the coming decades will have a decisive impact for achieving this target by 2035. In order to be able to check how actual global penetration of SAF is consistent with its target related assumptions, the Company is developing the means to monitor actual availability and use of SAF and the resulting impact on aircraft emissions. The Company's initial approach to develop a tool that has proven insufficient and the Company is now considering alternative options. One such option is to rely on aviation industry recognised metrics being developed. For instance, IATA is maturing its analytical capability to monitor SAF consumption through direct reporting from airlines. Key figure Unit 2024 Est. annual SAF production, as per IATA report * tonnes 1 million * “Fact Sheet - Sustainable Aviation Fuels” dated Dec 9th 2024 available on IATA website For more information on the progress in implementing the transition plan, refer to section “– 6.2.2.5 Actions (E1-3)”. 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3) Following the TCFD recommendations, the Company has defined a range of temperature scenarios (1.5°C, well-below 2°C and >3°C) to represent different climate realities based upon the global scenarios of the Intergovernmental Panel on Climate Change ("IPCC" - Assessment Report 6 ("AR6")) and the International Energy Agency ("IEA"). The scenario analysis is used to identify financial and operational risks and opportunities related to climate change that may begin to impact the Company in the short-term, medium-term and long-term so that the Company can work to increase the resilience of its assets and Airbus SE/ Report of the Board of Directors 2024 168
operations in order to mitigate and adapt to climate change. The short-term time horizon (“ST”, considering the current year and up to two years thereafter) focuses on the ongoing production and ramp-up plans to increase production to 75 single-aisle aircraft per month by 2027 whilst the mid-term time horizon (“MT”, around 2035) relates to the assets and activities linked to the transition period between the current and next generation of commercial aircraft products. The long-term time horizon (“LT”, around 2050) is used to anticipate future climate-related risks during the production of the next generation of products. The Company uses Shared Socio-economic Pathways (SSPs) that were developed for the latest Assessment Report (AR6) of the IPCC. SSPs are standard scenarios in climate science that describe coherent and internally consistent socio-economic futures based on drivers like population, economic growth, and technological advancement. Physical risks The Company has conducted an analysis of climate-related physical risks, considering all 28 physical climate risks or hazards indicated by the European Taxonomy for sustainable activities and the CSRD (ESRS E1). Some climate-related hazards are deemed low priority considering the sector or the geographical coverage of the Company's activities and are therefore excluded from the analysis. Nevertheless, the Company is continuously reviewing its exposure to these hazards and their prioritisation. The analysis takes into account the Company's assets and business activities over the previously described medium-term and long-term time horizons as the most relevant for this assessment, comparing projected evolutions compared to a baseline defined as the average of values between 1985 and 2014. The short term time horizon was considered not relevant for this assessment as short term climate related hazards are typically covered through business continuity plans on site level (mostly EHS related) and insurance policies. The most relevant scenario for these projections is the "Disorderly mitigation – Warming exceeding 3°C", based on IPCC Scenarios AR6 SSP3-7.0 / SSP5-8.5 and ensures that physical climate risk analysis results align with the latest state of climate science. This scenario represents the highest emissions among all SSPs and, according to the best estimate of the IPCC, leads to global warming of 4.4°C by the end of the century. The physical risks in this scenario are the most pronounced, making it a "worst-case" scenario for physical hazards. It assumes current levels of CO 2 emissions and greenhouse gases will almost double by 2050. The world economy grows rapidly, but this growth is driven by fossil fuel exploitation and very energy-intensive lifestyles. The SSP5-8.5 scenario describes a future characterised by continued industrialisation and economic growth, with global markets becoming increasingly integrated and global mobility increasing. The total final energy demand rises steeply, and no additional climate policy measures are assumed. The scenario particularly explores the limits to adaptation and the climate physical risks that may impact the Company’s operations and its value chain. Projections of relevant climate parameters, such as temperature, wind speed, and precipitation are used to identify climate hazards. Each hazard is clearly defined within the risk analysis and supplemented with climate parameters used to identify the hazard. Some hazards, such as “changing wind patterns” and cyclones, are assessed based on areas where they are known to occur (local identification) rather than climate projections as no scientific consensus has been reached regarding their evolution in terms of frequency and geography. Scientifically-based thresholds are defined for all hazards to determine the point at which they are severe or frequent enough to cause material damage. The assessment results indicate that a majority of the Company's locations may be subject to high or very high risks by 2050, particularly regarding "heat stress" and "water stress". The Company has implemented a comprehensive approach to analysing climate change-related physical risks and consists of two main parts. Firstly, a desktop analysis has been conducted for 355 locations of the Company and a preliminary vulnerability assessment for about 30,000 supplier locations. This involves a location-specific analysis based on geo-coordinates and information about the economic activities at each location to generate site-specific climate projections. These projections are then compared with predefined, scientifically-based thresholds for each hazard. Depending on the hazard, the magnitude, duration, likelihood, or extent is used to assess exposure, as described under ESRS E1 AR 11 (a). The biggest limitation in the scenario analysis is the current generation of climate models' inability to simulate all 28 hazards. Consequently, the analysis for certain hazards, including solifluction, land subsidence, thawing of permafrost, glacial lake outburst, saltwater intrusion, landslide, and coastal erosion, relies on historical data rather than climate projections. Secondly, the desktop analysis is complemented by an on-site analysis to further refine the identified risk factors. This involves assessing the vulnerability of the Company’s business activities, existing assets and industrial set up at each location to each hazard and determining whether the occurrence of each hazard would negatively and significantly impact business operations. A physical gross risk for a location is identified if it is both exposed to a site-specific hazard and the business activity is vulnerable to this hazard. Airbus SE/ Report of the Board of Directors 2024 169
Transition risks The transition events were examined for their impact on the scenario and their business relevance for the Company. If both factors were present, these events were subjected to further analysis to determine their short-, medium-, and long-term impacts. The three time horizons described at the beginning of this section are applied to the identification of transition risks. The climate-related transition risks and opportunities identification process involves defining transition events according to categories such as Environment, Technology, Social, Political, and Economic based on specific scenarios and time horizons. The transition risks and opportunities are identified based on the transition events’ severity on business activities with function representatives, and quantified according to likelihood, magnitude and duration of the transition events. The results of this analysis show that transition events are expected to primarily impact business activities rather than the Company’s assets, as detailed in the risk table in the Resilience Analysis section below. As mentioned above, the scenarios chosen by the Company were carefully aligned with current scientific findings to ensure their relevance and accuracy in representing possible climate-related outcomes. The analysis of climate change-related transition risks and opportunities relied on the Net Zero Emissions scenario of the International Energy Agency (IEA), as described in the latest World Energy Outlook (WEO) of 2023 and the associated data tables. Additional insights were drawn from previous IEA special reports on this scenario. The scenario selected is the “Aggressive mitigation - Limiting warming to 1.5°C”, based on the IPCC Assessment Report 6 (AR6) Scenario Shared Socioeconomic Pathway (SSP) 1-1.9 and the Net Zero Emissions by 2050 Scenario (NZE) by the IEA. This scenario reflects the ambition of the Paris Agreement to the United Nations Framework Convention on Climate Change (Paris Agreement) and is a very ambitious scenario that limits global warming to 1.5 °C by the end of the century. In this scenario the global energy sector achieves net-zero CO 2 emissions by 2050 and the world reaches the objective of the Paris Agreement. Developed countries (e.g. including those within the European Union) accelerate in decarbonisation. Societies adopt practices to enable the required levels of reduction of emissions, including increasing investment in and development of technologies that could reduce emissions of the transport sector in developed countries and limit emissions growth in developing countries. Policies to decarbonise are introduced immediately (2020s), with these policies diverging across sectors and regions and differing in both the timing of their deployment and their reach. Mitigation strategies implemented worldwide and across sectors include: improvements in energy efficiency are implemented (however additional mitigation technologies for aviation are required); transitioning from fossil-based energy to very low or zero-carbon sources including hydrogen and high density biofuels for aviation; carbon capture utilisation and storage is used in remaining fossil-fuels facilities; both nature- and technology-based Carbon Dioxide Removals (“CDR”) are deployed to the levels required to neutralise global residual GHG emissions; and countries implement measures towards restricting demand for transport services while supporting the shift to more energy efficient and low carbon intensive products and transport modes. Severe weather events are more frequent, but the world has avoided the worst consequences of climate change. The 1.5°C scenario used during this analysis was analysed using sector-specific data alongside comprehensive macroeconomic variables and price metrics to support the identification of transition events and exposure assessment. Furthermore, the long term time horizon (2050) aligns with the climate-related policy stated objective of achieving climate neutrality by 2050, as well as with the time horizon of relevant technical scenarios used, such as IEA scenarios described below. This detailed information enabled a thorough and insightful scenario analysis which resulted in the identification of projected risks on the Company's business. This analysis informed the double materiality assessment process described under “– 6.1.1.4 IRO: Impact, risk and opportunity management”. In 2024, the Company integrated a climate scenario analysis to predict and prepare for future conditions. This analysis includes several assumptions such as the transition to a lower-carbon economy, which is expected to influence macroeconomic trends, energy consumption patterns, and the adoption of new technologies. The 1.5°C scenario from the IEA's World Energy Outlook (WEO) includes critical assumptions about global energy demand, carbon pricing, and the pace of technological innovations required to achieve net-zero emissions by 2050. Key assumptions are described in more detail in the scenario description above. The global energy and climate model used by the Company integrates innovative and emerging technologies, tracking their maturity and expected market introduction. Transition risks and opportunities are primarily linked to the air transport sector. Efficiency improvements, such as optimised aircraft designs, mass reduction, and propulsion system improvements, offer some mitigation potential. However, additional CO 2 emissions mitigation technologies, including high energy density biofuels, low-emission hydrogen, and synthetic fuels, will be required for aviation. Airbus SE/ Report of the Board of Directors 2024 170
Primary emission sources were reviewed to identify risk areas. A critical analysis of the sector was conducted, focusing on technological advancements and other relevant factors to identify all assets and business activities requiring significant effort to be compatible with a transition to a climate-neutral economy. As a result, it has become evident that business activities such as the design and manufacturing of commercial aircraft are heavily reliant on the development of technological levers and alternative energy pathways to achieve this compatibility. Carbon dioxide removal (CDR) is used to accelerate decarbonisation but is kept to a minimum in the scenarios as it is only applicable to residual emissions and is broadly in line with sustainable levels of bioenergy production for nature-based solutions.Technology-based CDR solutions are not yet mature enough to be used and deployed at scale. As such, the use of CDR in the scenarios is based on relevant global databases including IEA World Energy outlook, IEA Net Zero 2050, ATAG “Fly Net Zero 2050” and Behavioural change NZE AR6 WG3. Resilience analysis Based on the results of the previously described climate-related physical and transition risk assessment, the Company has started analysing the resilience of its business activities in 2023, including an assessment of key elements of the upstream and downstream value chain. The full resilience analysis is expected to be completed by 2027. The critical assumptions about how the transition to a lower-carbon and resilient economy will affect the Company's surrounding macroeconomic trends, energy consumption and mix, and technology deployment are detailed in the description of climate scenarios considered under the above climate-related physical risk and transition risk sections. The resilience analysis relies on the previously described climate risk analysis (physical and transition), including the time horizons mentioned in the first paragraph of “– 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)”. The resilience analysis includes a review of the Company’s own business activities and extends to both upstream and downstream segments of the value chain, focusing on identifying vulnerabilities and strengths in the Company's strategy and business model concerning climate-related physical and transition risks. With the 1.5°C scenario for transition risk and the >3°C scenario for the physical risk analysis, the Company covers both extremes of climate risks, thus covering a broad spectrum of risks. As detailed above, the scope of the resilience analysis is the same as the climate risk assessment; it includes an assessment of operations, supply chain dependencies, and customer interactions to ensure a holistic understanding of potential impacts for all of the Company’s business activities. For each remaining identified material physical and transition risks, the existing and potential adaptation measures that contribute to climate resilience are reviewed, resulting in an overall risk picture, including those residual risks where mitigation measures are insufficient to eliminate the risks entirely. The conducted analysis has identified activities related to the transition of the air transport sector as high-risk business activities, with uncertainties including the pace of regulatory changes, technological advancements, and market acceptance of low-carbon solutions. This assessment of physical risks for the upstream value chain is still being conducted and therefore is not yet included in these results. The outcomes to date of the physical and transition risk assessments are summarised in the hereafter tables, as well as how these risks are managed to ensure the resilience of the Company's assets and activities. As mentioned previously, the resilience analysis is still ongoing and is expected to be completed in 2027. Climate-related risks The results of the Company’s climate scenario analysis has led to the identification of the following main risks: Transition - Technology: Emergence of disruptive technologies from competition Delivering on existing commitments and potential future requirements to mitigate climate impacts will require significant investments in new technologies for the commercial aircraft sector, making the delivery of low-emission technologies a significant marker of future competitiveness. A competitor or new market participant could have access to technological developments unavailable to the Company that offer significantly lower emissions at a faster pace than the Company and its partners, resulting in a loss of market share and competitiveness with resulting reduced revenue. The imperative for the Company and its partners to develop new technologies faster than other actors in the market will require substantial research and technology (R&T) and research and development investments. Airbus SE/ Report of the Board of Directors 2024 171
Transition - Market: Low availability of renewable and low-carbon energy The Company has identified risks linked to the availability and affordability of renewable and low-carbon energy. First, there is the risk of low volumes in absolute terms, due to insufficient investments in renewable or low-carbon energy (including through the sustainable transformation of available biomass). Second, there is the risk that even if total volumes are approaching sufficiency in absolute terms, the aviation sector is unable to access sufficient volumes, leading to a risk of a slower than expected substitution of fossil fuel energy and low uptake of the new solutions and products to be developed by the Company, and resulting in lower or longer returns on invested R&D. Transition - Market: Impact of market measures and their development on demand for the Company’s products Accommodating new types of aircraft that respond to the aviation sector’s decarbonisation objectives requires an ecosystem that is ready. For instance, the development of future products based on hydrogen or other alternative propulsive technology concepts will require significant investments in both products and supporting infrastructure, which could directly impact the operating costs of such a product. Consequently, the absence of measures to stimulate robust hydrogen, synthetic fuels and biofuels supply infrastructure and adapted procedures to ensure efficiency and safety of operations, could mean that the ecosystem will be unable to accommodate the Company’s future products, notably resulting in significant development costs incurred and a risk of compromising the investments made if customers are unable or unwilling to purchase products that cannot be widely operated within the available infrastructure and procedures. Moreover, the competitiveness of this next generation product will also strongly depend, among other factors, on the evolution of the price of CO 2 emissions. A high price on CO 2 may impact the demand for aircraft relative to competitors' portfolios and could result in the loss of market share for the Company relative to its competitors. The Company’s business, results of operations and financial condition may be materially affected if the Company does not, at each step of development of its future products, account for market expectations while ensuring its products stay affordable for customers and competitive with respect to competitors’ portfolios. Transition - Policy and legal: Climate-related regulations and restrictions - divergence in regulatory framework Aviation and aerospace are complex industries, with long product development cycles and where change takes a long time to be implemented. A rapid evolution of climate related policies (such as the EU zero-pollution communications) and regulatory frameworks (CO 2 standards, sustainable finance, emissions trading systems, aircraft operation restrictions, among others) could generate fast-changing requirements and could obstruct new product development pathways. In particular for aviation, as it is a global industry, policies and regulations implemented at national or regional rather than international level, or these evolving at a different speed depending on the region, could result in a negative impact on the competitive conditions for manufacturers and aircraft operators. This could result in a loss of competitiveness for the Company and reduced demand for its products. Transition - Reputation: Change in behaviours, perceptions and societal expectations Reputational risks could be divided into several categories. Firstly, there is a risk that negative perceptions about the Company’s environmental performance could be used as key decision-making criteria for consumers, investors, or even new talents. Secondly, there is a risk that the Company’s reputation could be 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 disclosed its ambition to bring a commercially viable, fully electric, hydrogen-powered commercial aircraft into service. If the ambition is perceived as unattainable or if the Company is not able to deliver on its ambition, this could result in reputational damage leading to less 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 - Acute: Extreme weather events may impact the Company's products and operations The foreseen consequences of climate change include more frequent extreme weather events, such as drought, dust storms, extreme temperatures, extreme winds, flood, hail storms, landslides, hurricanes, tornadoes, cyclones and wildfires. These could negatively impact the Company’s products and its operations (including but not limited to route delays and safe aircraft operations), land assets and infrastructure as well as employees' safety (and people's safety generally). The above consequences and impacts may result in production or other operational disruptions leading to lost revenues, reduced profits, and losses. This could result in the need for additional modifications to the Company's products in order to meet more stringent safety needs, as well as requiring changes to industrial operations and procurement strategy, leading to increased operational and production costs and the consequential costs of adapting the Company’s insurance coverage. Airbus SE/ Report of the Board of Directors 2024 172
Physical - Chronic: Consequences of long-term changing weather patterns may cause increase of infrastructure and operations costs, reduced labour productivity, loss of assets value and negatively impact employee’s health The foreseen consequences of climate change include long-term shifts in climate patterns (e.g., change in precipitation patterns, sustained higher temperatures, flooding, water stress or chronic heat waves). Such changes may cause an accelerated degradation of the Company’s industrial infrastructure and assets (buildings, tools, hardware), may reduce the availability of operational resources and may interrupt logistics flows, therefore impacting the Company’s manufacturing activities. In addition, the change in environmental conditions could also negatively impact the performance of products in operation and negatively impact the health and safety of the Company’s employees. This may result in the need for additional modifications to the Company’s products, as well as to industrial operations and procurement strategy, leading to increased costs and the adaptation of the Company’s insurance coverage. Based on a qualitative analysis, the Company has estimated the probability of risk materialisation. It has also performed a preliminary internal assessment, using data from the Company's ERM system, as to which climate-related risks may involve the most significant financial impacts in the future. The results are displayed in the following table. Climate scenario / time horizon(s) where risk likelihood is considered medium or high, based on Company's qualitative analysis Potential financial impacts before mitigation Key associated actions presented in the Company’s transition plan RISKS 1.5°C >3°C Transition - Technology +++ - Supporting fleet renewal by delivering its latest generation aircraft - Developing and deploying SAF, with the ambition for all aircraft types to be capable of flying with up to 100% SAF by 2030 - Investing in technologies to reduce product emissions, including hydrogen - Investing in smart air traffic management (ATM) solutions and optimised operations - Deploy local adaptation measures following threats and vulnerabilities assessment. - Embed climate change in industrial strategy - Engage R&D activities including with certification authorities on new climate model impacts on products Transition - Market (Energy) +++ Transition - Market (Demand) +++ Transition - Policy and legal Not assessed Transition - Reputation Not assessed Physical - Acute ++ Physical - Chronic ++ : ST - : MT - : LT As mentioned previously, the resilience analysis is still ongoing but previously shared information under section “– 6.2.2.2 Transition plan for climate mitigation (E1-1)” and to the above mentioned risk management mitigation measures provide a first understanding of the Company's ability to adapt its strategy and business model to climate change. Additionally, the section “– 6.2.2.5 Actions (E1-3)” provides further information on the adaptation actions taken by the Company to reinforce its resilience. More precisely, with regards to product resilience in the context of climate change, aircraft products are sensitive to weather phenomena during their operation phase. While the certified flight envelopes of the Company’s products offer some margin compared to relevant bad atmospheric conditions defined by certification authorities, the adaptation of aircraft design and operation to the changing climate is an important activity to be anticipated, in particular given the long lead time associated with aircraft development and operation. With regards to its defence product portfolio, the Company is collaborating with the North Atlantic Treaty Organization (“NATO”) and other defence industry players and organisations (in the so-called NATO Study Group 291) with the objective of developing recommendations on ensuring allied capabilities adaptation in the context of climate change. This is supported by inputs from the NATO Climate and Defence Task Force led by the Conference of National Armaments Directors (CNAD) the Company is also part of, together with the allied governments and other defence industry players. This collaboration aims at assessing, elaborating and deploying solutions to ensure technical capabilities still enable operational effectiveness in facing changing climatic conditions. Airbus SE/ Report of the Board of Directors 2024 173
The climate-related assumptions in the climate scenarios described above were also used in the Company's Financial Statements. 6.2.2.4 Policies (E1-2) The Airbus Environmental Policy described under section “– 6.2.1 Policies” addresses climate change mitigation, energy efficiency and renewable energy deployment. Climate change adaptation is not explicitly mentioned in the policy but is included in the Company’s EMS and business continuity activities. For further detail on the content of the Environmental Policy, its scope, accountability, relevant third party standards and initiatives as well as the availability to and stakeholders and the considerations of their interests, please refer to the transversal section “– 6.2.1 Policies”. 6.2.2.5 Actions and resources (E1-3) Climate mitigation and adaptation-related actions are coordinated by the Sustainability Organisation under the leadership of the Chief Sustainability Officer, which includes multifunctional and cross-divisional teams on CO 2 and Energy, as well as a dedicated organisation for SAF. Annual sustainability budgets are allocated to each function to implement said actions. The emissions reduction estimates presented in the tables below are indicative and represent the Company’s best view on how it intends to reach its targets, based on current assumptions, modelling (including effects of increasing production output) and portfolio of projects reducing CO 2 emissions and offsetting business growth. They may be refined over time as forecast techniques may improve and the portfolio of decarbonisation projects may be revised or re-prioritised to capture new opportunities or adapt to changes in market conditions. The Company has not identified any dependencies on the availability and allocation of resources for the implementation of the below actions unless otherwise stipulated. MITIGATION The actions listed below support the achievement of the related target, which applies to the Company’s own operations and operationally controlled entities. They have so far been implemented in priority on sites for which measured data is available, covering a large proportion of the concerned impact (see methodology in “– 6.2.2.6 Energy consumption and Mix (E1-5)” and “– 6.2.2.7 GHG Emissions (E1-6)”). Decarbonisation lever #1 - Scopes 1 & 2 - Energy efficiency The Company is committed to enhancing energy efficiency for its buildings and industrial processes as part of its climate change action plan. This initiative, which encompasses improvements in lighting, insulation, and combined heat and power (CHP) optimisation, is on-going and planned to be further implemented company-wide by 2030. Lever #1 - Scope 1&2 - Energy efficiency of stationary assets Unit Expected GHG emission reduction in 2030 compared to 2024 ktCO 2 e -73 Achieved GHG emission reduction in 2024 compared to 2015 (incl. surface evolution, energy efficiency and weather impact) ktCO 2 e -92 In addition to its efforts regarding the energy efficiency of sites, the Company has outlined a strategic initiative focused on enhancing mobile energy efficiency, primarily driven by the introduction of three new vessels, with rigid sails technology, and its Beluga fleet miscellaneous efficiency improvement projects. Lever #1 - Scope 1&2 - Energy efficiency of mobile assets Unit Expected GHG emission reduction in 2030 compared to 2024 ktCO 2 e -53 Achieved GHG emission reduction in 2024 compared to 2015 ktCO 2 e -73 Airbus SE/ Report of the Board of Directors 2024 174
Decarbonisation lever #2 - Scopes 1 & 2 - Renewable energy The Company has implemented a comprehensive plan for renewable and low carbon electricity contracting aimed at addressing Scopes 1 and 2 decarbonisation targets over the period 2015-2030. The primary focus is on Power Purchase Agreements (PPAs), which are expected to play a significant role in achieving these goals while the rest of emissions will be covered by REC & GoOs. This Company-wide action has a time horizon set until 2030. The success of the action is dependent on the availability of a direct decarbonised energy supply. This dependency underscores the importance of securing reliable and sustainable energy sources to meet the decarbonisation targets. In addition to PPAs, the Company is committed to the implementation of local site renewable energy generation. Several projects are currently under study and development, focusing on photovoltaic systems, biomass, heat pumps, and other renewable technologies. This action has a time horizon set until 2030. Lever #2 - Scope 1&2 - Renewable and low carbon energy source for stationary assets Unit Expected GHG emission reduction in 2030 compared to 2024 ktCO 2 e -125 Achieved GHG emission reduction in 2024 compared to 2015 ktCO 2 e -447 The Company is committed to increasing the use of SAF in its relevant internal operations as part of its climate action strategy. This initiative is planned to be implemented by 2030. Lever #2 - Scope 1&2 - Energy decarbonisation of energy mobile assets Unit Expected GHG emission reduction in 2030 compared to 2024 ktCO 2 e -78 Achieved GHG emission reduction in 2024 compared to 2015 ktCO 2 e -37 Decarbonisation lever #3 - Scope 3 Use of Sold products - Technology improvement Introduction Delivering latest generation aircraft. Airlines renewing their in-service fleet offers immediate potential for aviation decarbonisation, as reflected in the figures below. Lever #3 - Scope 3 USP - Fleet renewal - Target enablers / contributors Unit Current proportion of previous generation aircraft in global commercial aircraft fleet % About 66% Estimated latest generation aircraft efficiency gain vs. than the previous generation % About 25% Estimated A350 and A330neo efficiency gain vs. than the previous generation % fuel burn per seat 25% Estimated A320neo family efficiency gain vs. than the previous generation % fuel burn per seat 20% Estimated A220 efficiency gain vs. than the previous generation % fuel burn per seat 25% Continuous technological improvement. Additionally, the Company consistently works to improve the efficiency of its aircraft, through new aerostructure designs, advanced materials, upgraded systems, and more fuel-efficient engines, aiming to reduce CO 2 , NOx, and noise emissions in operations. The scope of this action is within the Commercial Aircraft business, with a time horizon covering and lasting beyond the 2035 horizon of the related target. A milestone was reached in 2024, with the certification of the A321XLR obtained in August and its commercial entry into service in October. The A321XLR offers the opportunity to longer-range routes for the single-aisle aircraft family, leveraging the platform’s greater fuel efficiency and hence CO 2 efficiency when compared to a bigger widebody aircraft. Next generation aircraft, supporting the sector's decarbonisation ambition beyond the Company's target horizon. The Company is investing in technologies aimed at reducing emissions for the next generation of products. In particular, Commercial Aircraft is preparing next-generation single-aisle aircraft technologies, focusing on innovations for airframes and engines. One significant initiative is the "wing of tomorrow" programme, which has successfully delivered a full-size wing prototype incorporating lighter composite components and a folding wing tip. This programme integrates over 100 different components and manufacturing technologies, validating key automation targets. In collaboration with the European Clean Sky 2 and Clean Aviation programmes, the Company is researching new efficiency-enhancing technologies, such as semi-morphing wings, dynamic winglets, and innovative flight controls, as tested on a C295 transport aircraft. On the engine side, the Company supports engine manufacturers in adapting and integrating their latest innovations to meet aircraft needs. The Company also considers hydrogen as a promising technology for reducing aviation’s climate impact. It has the ambition to bring a commercially viable, fully electric, hydrogen-powered commercial aircraft into service. The Company believes fuel cell technology to be the most promising to fulfil this ambition, which would significantly reduce emissions when compared to conventional jet engine configurations. Airbus SE/ Report of the Board of Directors 2024 175
The scaling up of the hydrogen ecosystem is challenging and is progressing at a slower pace than previously anticipated. The scalability of fuel cell technologies towards a commercially viable product will also require more time. A commercially viable product is now expected to come later than 2035. The Company will use this additional time to further develop the performance of the fuel cell propulsion and liquid hydrogen system technologies that are expected to enable the development of the Company's first fully electric commercial aircraft, as part of its ambition to pioneer sustainable aerospace. The Company is also fostering hydrogen ecosystem readiness by collaborating with various stakeholders, including airports, airlines, and energy providers, to support the evolution of market needs with renewable and low-carbon hydrogen. In order to foster such development, the “Airbus hydrogen network” involves a number of airports and numerous energy providers and airlines as partners, while new partners are still being recruited to join on a regular basis. In July 2024 alone, two Hydrogen Hubs were launched, one in Spain and another at Gatwick airport in the UK. Key figure Unit 2024 Number of airports involved in “Airbus hydrogen network” No. 215 This comprehensive approach underscores the Company's commitment to sustainable aviation and its role in driving industry-wide decarbonisation efforts. The Company plans to continuously invest in technologies to reduce product emissions with a time horizon extending beyond the 2035 timeframe mentioned for the near-term target. Decarbonisation lever #4 - Scope 3 Use of sold products - SAF uptake The Company is actively fostering SAF ecosystems readiness and partnerships to mitigate climate change. The primary constraints for operators are the price and global production capacity of SAF, which hinder large-scale adoption. To establish a robust SAF market, it is essential to match production with demand, supported by global regulatory frameworks and incentivisation schemes. This includes implementing reporting mechanisms for consistent tracking of decarbonisation progress and using book and claim systems to simplify SAF usage and demonstrate its benefits to freight and corporate customers when needed. The Company is actively supporting the development of a regulatory framework supporting the growth of the SAF market. The Company advocates for policies that incentivise SAF production and usage, sharing industry best practices, and focusing on production levels assessment, life cycle analysis methodology, and sustainability criteria and standards harmonisation. A clear, stable, and consistent policy at both global and local levels, along with incentivisation or regulations, is essential to promote long-term investments and technology development. Lever #4 - Scope 3 USP - SAF uptake - Target enablers / contributors Unit SAF CO 2 emissions reduction throughout life cycle vs. conventional kerosene % Up to >80% Current Company's aircraft portfolio SAF fuel blend capability in operations % Up to 50% End of the decade ambition for the Company's aircraft portfolio SAF fuel blend capability, including military aircraft and helicopters % Up to 100% The Company is vigilant about the potential future positive or negative impacts on the environment or people that could arise with the development on the SAF market, if uncontrolled. SAF is a fuel derived from a range of “feedstocks” (origin of carbon molecules used) made from sustainable resources and brings significant reduction of CO 2 emissions throughout its life cycle when compared with conventional kerosene (see table). Eight SAF production pathways are currently certified for blending with kerosene, including processes such as hydro-processed esters and fatty acids (HEFA), alcohol-to-jet, Fischer Tropsch, or power-to-liquid. Some of them are derived from used fat, cooking oil and grease, municipal waste, agricultural and forestry waste and residues. More advanced technologies use hydrogen and carbon captured directly from the air as feedstock for SAF production. On one hand, regional SAF production, dependent on local feedstock availability, can significantly contribute to socio-economic development, particularly in developing nations. On the other hand, it is essential that other sustainability dimensions be considered to prevent potential adverse impacts, especially for those SAF production pathways that imply land use. In order to be considered a SAF, an aviation fuel needs to meet defined sustainability criteria and requirements; the Company supports the ones set out by ICAO/CORSIA and in particular aspects related to non-competition with food and water resources. It also actively supports current and future sustainability criteria via regionally or nationally recognised schemes including EU Renewable Energy Directive (RED II), Renewable Fuel Standard (RFS), Low Carbon Fuel Standard in the US, Renewable Transport Fuel Obligation in the UK and ‘Renewable Fuel Units' (HBEs) in the Netherlands. Airbus SE/ Report of the Board of Directors 2024 176
Creating favourable conditions for the SAF market requires both global cooperation and regional initiatives. In the EU and the US, positive momentum is evident, and similar efforts are needed worldwide. Cooperative platforms like the Commercial Aviation Alternative Fuels Initiative (CAAFI) in the US exemplify how stakeholders can collaborate to foster development of the market. Early adopter. As an early adopter, the Company aims to stimulate market demand through its above mentioned flight tests and internal logistics using the Beluga aircraft, addressing actual SAF market development challenges. Key figure Unit 2024 Proportion of SAF used in Company’s own operations % 18% In addition, the Company also engages with customers to assist them in using SAF in their commercial operations and better understand how SAF can be integrated in their business models. In 2024, the Company signed an agreement with airline Wizz Air including the integration of SAF on two European routes, as well as passenger surveys and joint marketing campaigns. The scope of this action is focused on Commercial Aircraft, with a time horizon set for 2035 and beyond. The Company is engaged in initiatives and partnerships promoting the development of SAF production and use. This also includes partnerships with airlines and producers aiming to accelerate the aviation sector’s transition to SAF. Towards a harmonised framework. As a global industry, aviation requires a harmonised and interoperable framework of standards and regulations to ensure a level playing field. The Company supports the systematic implementation of SAF policies across all states and recognises CORSIA as a reference for sustainability standards, aiding in the global sourcing of SAF. The Company also plays a leading role in cross-industry initiatives with ICAO state members, ATAG, IATA, JetZero Council (UK), and the First Movers Coalition, a partnership launched by the World Economic Forum (WEF). Regionally, the Company monitors the development of SAF-related regulations at national as well as regional levels to ensure their consistency with global standards and regulatory frameworks. For instance, in 2024, The Company contributed to the Colombian Ministry of Transportation's "Roadmap for Sustainable Aviation Fuels in Colombia" as a contributor to their roadmap through two studies: "Decarbonizing Aviation in Latin America in a Sustainable Way" and "SAF Risks and Opportunities Workshop for Colombia". The scope of this action is within Commercial Aircraft, with a time horizon set for 2035. The decarbonisation lever for this action is the uptake of SAF. Aircraft capability. The Company is committed to ensure that all its aircraft platforms are up to 100% SAF capable by the end of the decade. This initiative aims to enhance the technical capability of the Company's aircraft portfolio, which is currently capable of operating with a fuel blend of up to 50% SAF. The ambition is to enable all aircraft platforms, including military aircraft and helicopters, to operate with up to 100% SAF by the end of the decade. The current 50% SAF limit ensures compatibility with the JET A/A-1 specification, allowing for a drop-in solution without modifications to aircraft or fueling infrastructure. Exceeding this limit would necessitate either modifications to adapt to a new fuel grade or the development of a purely synthetic fuel that fits within the existing specification. The Company is actively involved in two key research projects in collaboration with industry partners: VOLCAN (a collaboration with Safran, Dassault and the french ministry of transport) and ECLIF3 (a collaboration with with Rolls-Royce, the German Aerospace Center (DLR) and SAF producer Neste). These projects focus on assessing the impact of 100% SAF on engine and fuel systems, as well as measuring the benefits on emissions and fuel efficiency. The findings from these projects will support further research and technical work to achieve 100% SAF certification for commercial flights by the end of the decade. Additionally, the Company has contributed to the approval process of eight SAF blending pathways with kerosene and continues to support industry-wide standardisation efforts at ASTM International to approve future pathways. In 2024, The Company was designated as co-leader of a newly formed working group in the frame of the International Aerospace Environmental Group (IAEG), aiming at developing technical specifications for 100% SAF. The scope of this action encompasses Commercial Aircraft, with a time horizon set for 2035. The actions of this lever depend on the overall SAF market development, including the actions and investments of external resources. Decarbonisation lever #5 - Scope 3 Use of sold products - Operations improvement The Company is as well engaged in climate change mitigation through its Customer Services decarbonisation portfolio. This initiative is focused on reducing air traffic management (“ATM”) inefficiencies and CO 2 emissions from current aircraft in operations. Key projects include the Single European Sky Air Traffic Management Research programme (“SESAR”) and the HERON project, which aims to optimise aircraft operations during taxiing, improve trajectory-based operations (“TBO”), and reduce noise pollution. The current ATM environment is transitioning from static flight plans to TBO to enhance airport and Airbus SE/ Report of the Board of Directors 2024 177
ATM network performance. The Company is also developing fuel-saving procedures for airports and ground operations to minimise engine and auxiliary power unit (APU) usage while aircraft are on the ground. In addition, the Company is exploring innovative practices such as formation flying through the Fello’fly project, launched in November 2019. This project aims to demonstrate the viability of two aircrafts flying in close proximity on long-haul flights, allowing the follower aircraft to reduce engine thrust and fuel consumption per trip by utilising the wake energy of the leading aircraft. The scope of these actions are limited to Commercial Aircraft, with a time horizon set for 2035. Lever #5 - Fello’fly project key figure Unit Estimated engine thrust and fuel consumption reduction for follower aircraft (long-haul flights) % fuel burn up to 5% In 2024, the Company has built on the positive results of the Fello’fly project by taking the lead of the EU’s new “Gain Environmental Efficiency by Saving Energy” (GEESE) project, that will bring a concept of operations based on continental traffic flows from Europe to Asia and Europe to the Middle East. It will also define the requirements on operations and systems using the traffic flows from Europe to North America. For decarbonisation levers #3, #4 and #5, the quantification of potential contributions to GHG emission reduction is deemed in part confidential and therefore not published. Due to the complexity and interdependencies between all product-related decarbonisation levers, it is not possible to calculate the achieved individual contributions to the overall GHG emission reductions. However an order of magnitude of the respective contributions from these levers to the sector’s decarbonisation ambition can be found in the graph entitled “The aviation industry’s roadmap towards “Carbon Neutral Emissions” by 2050’ (see “– 6.2.2.2 Transition plan for climate mitigation (E1-1)”). Financial resources for mitigation actions The Company estimates that a couple of hundred million euros per year (combined OpEx and CapEx) may be necessary to complete its Scopes 1 & 2 decarbonisation plan. This estimate is indicative and may be revised pending evolution and progress of the project portfolio. ADAPTATION Leveraging the preliminary outcomes of its resilience analysis, including at site level, the Company is starting to identify and plan adaptation measures that need to be undertaken locally. They are being prioritised, taking into account the estimated time of horizons and / or speed of onset of respective risks. Actions have already been engaged, corresponding to the risks deemed more imminent such as extreme heat and floods. For instance, in Airbus Toulouse a heatwave preparation plan was implemented, and a study on the arduousness and dangerousness of working in high heat was carried out by the occupational health service and the occupational physician. This study focused on the feedback from experiences conducted during the 2023 heatwave, during which 150 workers tested "Heat stroke alert" bracelets and cooling clothing. These experiences continued in 2024, and personal protective equipment related to heat will be tested and used again in the coming years. In Airbus Illescas in Spain, following the 2022 heatwave, forced ventilation was installed in all the technical rooms. Green areas have also been adapted, with Japanese gardens combining local plants requiring less water, and a drop irrigation system. Good practices such as free cooling, the use of heat and humidity sensors in technical rooms (connected to a Building Maintenance System) and the use of UV sheets to cover windows are also being implemented by several sites, for instance in Premium Aerotec Varel (PAI Varel). Some measures were also put in place to prevent the impact of flooding events. Flood barriers were installed in Airbus Atlantic Nantes after the site was impacted by an intense flooding event in recent years. In PAI Varel, a weather station is used to control the smoke exhaust closures during rain or strong wind events, and all gutters and water drains are systematically checked and cleaned after each stormy episode. In addition, the design and building of new facilities take into consideration applicable standards aimed at reducing their vulnerability to climate related hazards. The Company will continuously complement, sequence and refine its approach as additional information becomes available, including from its on-going resilience analysis. Certain actions may imply engaging with local authorities and/or communities. Additional actions related to water stress risk are presented in “– 6.2.4 ESRS E3 - Water and marine resources”. Airbus SE/ Report of the Board of Directors 2024 178
The Company is insured against the risks linked to climate-related events that could arise in the short term. The Company has subscribed a property damage and business interruption insurance policy including the impact of natural hazards, covering earthquake, wind and flood, and any other natural event not defined as earthquake, wind and flood, including but not limited to hail, avalanche, snowfall/weight of snow, and mudflow. With regards to its aircraft products, the Company is engaged in adapting its products to the changing climate, recognising the sensitivity of these products to weather phenomena during their operational phase. This proactive approach is essential due to the long lead times associated with aircraft development and operation. To address this, the Company is participating in the European Network - Impact of Climate Change on Aviation (EN-ICCA), an industry working group launched by EASA. The objective of this group is to define a work programme aimed at enhancing adaptive capacity, strengthening resilience, and reducing vulnerability to climate change within the aviation sector. Additionally, the Company is engaged in the creation of a working group with ICAO, further demonstrating its commitment to this critical issue. The scope of this action encompasses the downstream value chain on a worldwide scale, with the first assessment scheduled for Q1 2025. This action is continuous and does not have a fixed time horizon. 6.2.2.6 Targets (E1-4) The Company has set itself three targets to manage material climate-related impacts and risks: Scopes 1 & 2 The Company aims to reduce its Scope 1 and Scope 2 (market-based) emissions as shown in the table below, and to yearly neutralise all residual emissions. Energy target - Scope 1 & 2 emissions SBTi-validated, aligned with a 1.5°C scenario Unit Target year Target value % vs baseline Baseline year Baseline value Scope 1 & 2 market-based emissions ktCO 2 e 2030 467 -63% 2015 1,262 Intermediate milestones, on TCO scope ktCO 2 e 2025 509 -3% 2024 524 ktCO 2 e 2024 581 -2% 2023 592 Assumptions: see “Scope of reporting and methodology” in “– 6.2.2.8 GHG Emissions (E1-6)” The target is set on the aggregate of Scope 1 and Scope 2 market-based. While the plan defined to reach this target includes actions differentiated for Scope 1 and Scope 2, no additional sub-targets were formalised for Scope 1 and Scope 2 separately. The Scopes 1 and 2 target is validated by SBTi as being science-based and aligned with a 1.5°C scenario. The 2015 baseline has been set Company-wide as per SBTi requirements. The Company is considering future developments and their impacts on its Scopes 1 and 2 target, in line with requirements of applicable SBTi guidance and as outlined in the Transition Plan (see section “– 6.2.2.2 Transition plan for climate mitigation (E1-1)”). The SBTI Guidance 4.2 methodology was used to set the target and the Company sets-out to update the target at least every five years, in accordance with applicable SBTi guidance. A 2050 target has not yet been defined. This Company-wide target covers the Company’s own operations and operationally controlled entities Scope 1 and Scope 2 emissions (market-based for Scope 2) and target boundaries were defined in accordance with SBTi guidance 4.2. To operationalise the 2030 target, it is broken down in annual reduction targets and reductions are allocated across sites: they refer to a material sub-perimeter of its operations, referred to as Top Company Objectives (“TCO”) scope, on which the Company can have a more direct control and influence, and used by the Company to steer its annual progress (see “Scope of reporting and methodology” in “– 6.2.2.8 GHG Emissions (E1-6)”). The target is a combined target for Scopes 1 and 2 which has been defined along guidelines set-out by SBTi guidance 4.2, including its baseline value. No intensity target has been set. For Scope 2 emissions, the target is based on the market-based GHG accounting method. The Company involved a wide range of internal stakeholders, incl. Facility Management, Industrial Operations, Finance, and Procurement, as well as the Board, during the target-setting process. No changes were made to the target during the reporting period. Target achievement is monitored through the Company’s environmental reporting process, which includes yearly and monthly reporting. Currently, the performance is in line with expectations - see “– 6.2.2.8 GHG Emissions (E1-6)” for more details on achievements. The target is aligned with the vision set out in the Environmental Policy to continually improve manufacturing and site operations to reduce emissions in line with the ambition of the Paris Agreement. Airbus SE/ Report of the Board of Directors 2024 179
Scope 3 - Use of sold products The Company aims to reduce the emission intensity of its commercial aircraft products: Energy target - Scope 3 Use of sold products SBTi-validated Unit Target year Target value % vs baseline Baseline year Baseline value Commercial aircraft products emissions intensity gCO 2 /RPK* 2035 48.0 -46% 2015 88.8 Scope: Company's commercial aircraft Assumptions: average of emissions intensity of all commercial aircraft delivered in the reporting year * RPK: Revenue Passenger Kilometre The target is validated by SBTi as being science-based and aligned with a “well below 2°C” scenario, which is in line with the required level of ambition for a Scope 3 target according to SBTi’s “Corporate near-term criteria version 5.2”. Compatibility of the target with 1.5°C will be assessed when relevant guidance from the EU Commission becomes available. The Company is considering future developments and their impacts on its Scope 3 target, in line with requirements of applicable SBTi guidance and as outlined in the Transition Plan (see section “– 6.2.2.2 Transition plan for climate mitigation (E1-1)”). The SBTi Guidance 4.2 methodology was used to set the target and the Company sets-out to update the target at least every five years, in accordance to applicable SBTi guidance. The target is aligned with the vision set out in the Environmental Policy to develop products and services that enable a reduction of emissions in line with the ambition of the Paris Agreement. A 2050 target has not yet been defined. The set target covers the use of sold products of all commercial aircraft sold (for more information on scope 3 coverage see 6.2.2.8 “GHG emissions”). The target boundaries and baseline value are defined in accordance with SBTi guidance 4.2. The 2015 baseline has been set based on Scope 3 “use of sold product” for commercial aircraft deliveries in 2015, as per SBTi guidance. The Company involved a wide range of internal stakeholders, including Strategy, Engineering, Finance, Programmes and Services, as well as the Board, during the target-setting process. The Company's progress on the target is monitored through the Company’s environmental reporting process, which includes yearly reporting. Currently, the performance is in line with projections. No changes were made to the target during the reporting period. An absolute target has not been defined for Scope 3. Energy The Company aims to reduce purchased grid electricity and other energies (gas and other stationary fuels) for stationary sources across the whole Company reporting scope. This target is aligned with the Scopes 1 & 2 target as the resulting energy consumption reduction is an enabler of the Scopes 1 and 2 target. The Company involved a wide range of internal stakeholders, including Facility Management, Industrial Operations, Finance, and Procurement, as well as the Board, during the target-setting process. Energy target Unit Target year Target value % vs baseline Baseline year Baseline value Purchased grid electricity and other energies (gas and other stationary fuels) for stationary sources GWh 2030 2,534 -20% 2015 3,167 Scope: Company-wide Assumptions: see “– 6.2.2.2 Energy Consumption and Mix (E1-5)" Target achievement is monitored through the Company’s environmental reporting process, which includes yearly and monthly reporting. Currently, the performance is in line with expectations. The target is aligned with the vision set out in the Environmental Policy to continually improve manufacturing and site operations to reduce emissions in line with the ambition of reducing resource consumption and associated emissions. No changes were made to the target during the reporting period. Please refer to the section “– 6.2.2.2 Transition plan for climate mitigation (E1-1)” for information on decarbonisation levers, plans to adopt new technologies as well as progress against GHG targets. With regards to the energy target related to stationary sources, energy consumption reduced in 2024 despite a production growth context, supported by significant gas consumption containment, better heating monitoring and temperature control as well as clement weather conditions. The 2024 energy target-related metric stood close to the 2030 target, however the trajectory towards the target integrates expected upcoming aircraft production ramp-up. Airbus SE/ Report of the Board of Directors 2024 180
Climate adaptation The Company has not set targets for climate adaptation, as this topic is currently managed through the existing risk management process. 6.2.2.7 Energy Consumption and Mix (E1-5) Scope of reporting: Reported data covers Company’s own operations and operationally controlled entities. Most data was reported by entities (see table below): while generally measured or communicated by energy suppliers, certain specific information from sites may be estimated based on past performance when not available. Information related to the rest of the consolidation perimeter was estimated, following a documented methodology, which is based on modelling adapted to each metrics. This can be employee-based, surface-based, activity-based extrapolation as deemed relevant for the concerned metric. By exception to the consolidation perimeter described above, some small non-controlled entities have been included in the reported figures due to their co-location with consolidated entities. Reporting scope Unit 2024 Data reported by entities % of the Company’s employees * 96% Data estimated % of the Company’s employees * 4% Non-controlled entities included in the reported figures due to their co-location % of the Company’s employees * 0.4% * includes Active Workforce only (for definition see section “– 6.3.2.6 Characteristics of the undertaking’s employees (S1-6)”). Energy consumption from nuclear sources was primarily derived from contractual information. When such information is not available, national nuclear percentages defined by the IAEA (International Atomic Energy Agency) have been used. High climate impact sectors used to determine the energy intensity correspond to the categories C Manufacture C30.3.0 - Manufacture of air and spacecraft and related machinery, and C33.1.6 - Repair and maintenance of aircraft and spacecraft amongst those listed in NACE Sections A to H and Section L as defined in Commission Delegated Regulation (EU) 2022/1288. As a result, the Company’s total turnover as disclosed in the financial statement is deemed to correspond to the net revenue amount from activities in high climate impact sectors. Climate change metrics Energy consumption and mix Unit 2024 Total Energy Consumption MWh 3,703,856 Total energy consumption from fossil sources MWh 2,278,219 Fuel consumption from coal and coal products MWh 0 Fuel consumption from crude oil and petroleum products MWh 940,425 Fuel consumption from natural gas MWh 920,570 Fuel consumption from other fossil sources MWh 1,953 Consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources MWh 415,270 Total energy consumption from nuclear sources MWh 339,256 Total energy consumption from renewable sources MWh 1,086,381 Fuel consumption from renewable sources MWh 310,375 Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources MWh 772,825 Consumption of self-generated non-fuel renewable energy MWh 3,180 Percentage of energy consumption from nuclear sources in total energy consumption % 9.2% Percentage of renewable sources in total energy consumption % 29.3% Percentage of fossil sources in total energy consumption % 61.5% Non-renewable energy production MWh 286,605 Renewable energy production MWh 6,238 Total energy consumption from activities in high climate impact sectors MWh 3,703,856 Total energy consumption form activities in high climate impact sectors per net revenue from activities in high climate impact sectors MWh/ M€ 53.5 Purchased grid electricity and other energies (gas and other stationary fuels) for stationary sources, as per Company energy consumption related target Mwh 2,597,029 Airbus SE/ Report of the Board of Directors 2024 181
Scope 2 GHG Emissions - Percentages of energy contracts Unit 2024 Percentage of regular energy contracts % 89.9% Percentage of regular energy contracts covered by bundled EACs % 31.7% Percentage of regular energy contracts covered by unbundled EACs % 8.7% Percentage of regular energy contracts not covered by EACs % 49.4% Percentage of physical direct-wire PPAs % 0.3% Percentage of sleeved PPAs % 4.6% Percentage of virtual PPAs % 0.0% Percentage of other renewable contracts % 5.3% Percentage of contractual instruments used for sale and purchase of energy bundled with attributes about energy generation in relation to Scope 2 GHG emissions % 39.3% Percentage of contractual instruments used for sale and purchase of unbundled energy attribute claims in relation to Scope 2 GHG emissions % 6.2% 6.2.2.8 GHG Emissions (E1-6) Scope of reporting and methodology Reported data covers Company’s own operations and operationally controlled entities. Most data was reported by entities (see table below). While generally calculated based on measured quantities (energy consumed, refrigerant leakages), certain specific information from sites may be estimated based on past performance when not available. Information related to the rest of the consolidation perimeter was estimated, following a documented methodology, which is based on modelling adapted to each metrics. This can be employed-based, surface-based, activity-based extrapolation as deemed relevant for the concerned metric. By exception to the consolidation perimeter described above, some small non-controlled entities have been included in the reported figures due to their co-location with consolidated entities (see table below). In order to report on performance against its target, the Company also reports its total emissions Scopes 1 and 2 on a sub perimeter called “TCO scope” (see below). Top Company Objectives (“TCO”) Scope: TCO scope is material sub-perimeter of its own operations and operationally controlled entities (see cover rate in the table below) used for the short-term targets setting and performance monitoring, composed of sites deemed relevant to monitor the deployment of the Company’s Scopes 1 & 2 decarbonisation plan, as prioritised, and therefore also including the largest contributors to the concerned metrics. Reporting scope Unit 2024 Data reported by entities % of the Company’s employees * 96% Data estimated % of the Company’s employees * 4% Non-controlled entities included in the reported figures due to their co-location % of the Company’s employees * 0.4% TCO scope, related to Scope 1&2 target % of the Company’s 2024 Scope 1 + Scope 2 GHG Emissions 85% * includes Active Workforce only (for definition see section “– 6.3.2.6 Characteristics of the undertaking’s employees (S1-6)”) Scope 1. Calculation includes contractual instruments (Biomethane Guarantees of Origines) as part of Scope 1 emissions, calculated based on biomethane emission factors instead of natural gas. This approach will be refined as further related guidance is issued by the GHG protocol. Emissions factors used are based on national references for the Companies’ core countries (France, Germany, Spain, UK) and on international references such as the IPCC for other countries. Key figure Unit 2024 Scope 1 Savings related to contractual instruments (Biomethane GoO) ktCO 2 eq 17 Scope 2. Contractual instruments used to calculate Scope 2 market based GHG emissions are -1- Power Purchase Agreements (direct wire or sleeved PPAs), -2- energy attributes certificates (e.g. REC, GoO, IREC, ETC), -3- other renewable electricity contracts. The share energy bundled with attributes or unbundled has been taken into account for all contractual instruments. All three above categories are used by the Company. So far energy attributes certificates have been the vast majority. Their respective shares in total use vary over time. Emission factors were determined following the hierarchy recommended by the GHG protocol, prioritising contractual instruments or supplier emission factors when available over national or residual emission factors (from IEA and AIB databases). Airbus SE/ Report of the Board of Directors 2024 182
Scopes 1 & 2 Biogenic emission factor. Scope 1 biogenic emissions have been calculated based on biogenic emissions factors available or estimated based on the available information. While the Company could estimate that overall Scope 2 biogenic emissions are non-significant - and reported as such (“NS”) in the table hereafter -, missing emission factors from suppliers did not enable to compute an accurate figure for 2024. Scope 3. The Company has performed a screening of all Scope 3 categories and concluded that category 11 “Use of Sold Product” is the only significant category to be disclosed. Scope 3 significant categories Unit Estimated share of Scope 3 category 11 “Use of Sold Product” in the Company’s total emissions % >95% Estimated share of non significant Scope 3 categories in the Company’s total emissions excluded from reporting % <5% Estimated share of “commercial aircraft family of products” in the Company’s Scope 3 category 11 emissions % >90% All other categories have been deemed non significant and are as such excluded from the Company’s disclosure. 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 and 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 other products from 2021, namely civil helicopters initially and military aircraft and helicopters in 2022, further complemented by satellites in 2023. 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 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. Additional methodology information: ● The Company’s emission calculation methodology was developed by a team consisting of key personnel from the engineering and environment departments to be aligned with the guidance provided by the Greenhouse Gas Protocol. ● The Company has used a number of assumptions based on internal and external information including assumptions based on publicly-available data. ● Scope 3 emissions are calculated based on product specific methodologies. As a result no part of the resulting emissions are calculated based on primary data obtained from suppliers or other value chain partners For all products: ● The estimation includes CO 2 emissions only. Emissions related to CH 4 and N 2 O 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. ● CO 2 emission factors for kerosene are the ICAO internationally recognised lifecycle emission factor to be used for baseline fossil jet fuels (see table below). This factor represents a “well to wake” life cycle analysis to assess the overall greenhouse gas (GHG) impacts of a fuel including each stage of its production and use. Assumptions Unit CO 2 emission factors for kerosene for fossil Jet-A /Jet-A1 kg CO 2 e per kg of fuel 3.846 Aircraft load factor % 82.5% For commercial aircraft: assumptions include the aircraft load factor, aircraft operational usage and average in-service lifetime. Primary data collected within the Company was also used, such as aircraft performance and configuration parameters. Emissions related to commercial aircraft engine start and taxiing have been included, however, emissions from the Auxiliary Power Units (APU) and ground handling equipment have been excluded. For the purpose of this calculation, the Company integrated into commercial aircraft Scope 3 the likely usage of SAF over the product lifetime, as per the IEA-SDS assumptions. Other operating conditions of the aircraft were considered to be static over the whole service life. In addition, the Company reports for reference an indicative figure based on a zero SAF usage. A330-200 deliveries destined to A330-MRTT conversion were excluded from the commercial aircraft perimeter and included in the military aircraft perimeter as part of the “other products” category. Total Gross indirect (Scope 3) GHG emissions and Total GHG Emissions are based on Scope 3 - Use of Sold Products IEA-SDS SAF uptake scenario for commercial aircraft. For other products: Helicopters: assumptions include activity data from Company’s customer services of helicopter operations such as flight hours per year and region where the helicopter is operated. Direct emissions and indirect emissions from jet fuel production are included over the product’s entire service life. The impact of SAF is not considered. Airbus SE/ Report of the Board of Directors 2024 183
Military aircraft: flight hours and mission profiles vary significantly depending on conflicts and humanitarian crises. The estimation assumes the largest number of flight hours each aircraft has been designed for in its lifetime. The impact of SAF is not considered. Satellites: The estimation includes satellites delivered to external customers in 2024 and accounts for emissions linked to the production of the satellites’ propellant as well as emissions associated with the launch into space (launcher's propellant production and combustion). Emissions linked to the use of the satellites’ propellant are not included as they occur outside of the atmosphere and therefore do not contribute to global warming. Emissions linked to the reception, processing and usage of satellite data on the ground are not included. Scope 3 GHG efficiency for delivered commercial aircraft (as per SBTi-validated target) includes the emissions related to the upstream fuel production and considers the likely usage of SAF over the product lifetime, as per the IEA-SDS assumption. The deployment of SAF is an important aspect of the decarbonisation of the air transport sector, and is therefore an important aspect of the achievement of the Company’s near term target. There are a variety of SAF deployment scenarios and assumptions (e.g. IEA’s global energy and climate scenarios, Refuel EU’s mandate, ATAG “Waypoint 2050”) that may lead to different results in terms of decarbonisation. As a result, the Company is currently researching ways to track the actual uptake of SAF in the fleet (see section “– 6.2.2.2 Transition plan for climate mitigation (E1-1)”). Scope 3 - Biogenic emission factors. Emissions of biogenic carbon are calculated based on the CO 2 emissions arising from the combustion of bio-derived SAF included in the “IEA-SDS SAF uptake” scope 3 metric below. The CO 2 emission factor for the combustion of SAF is assumed to be identical as that of the combustion of fossil kerosene. GHG intensity. Net revenue used for calculation of GHG emissions intensity equals the Company’s total revenues as displayed in the financial statements. Performance Milestones and Target Years GHG emissions disaggregated by Scopes 1 and 2 and significant Scope 3 Unit Base Year 2015 2024 2025 % 2025 target vs. 2024 2030 % 2030 target vs. Base Year 2035 % 2035 target vs. Base year Scope 1 GHG emissions Gross Scope 1 GHG emissions including regulated emission trading schemes ktCO 2 eq 451 Percentage of Scope 1 GHG emissions from regulated emission trading schemes % 37% Scope 2 GHG emissions Gross location-based Scope 2 GHG emissions ktCO 2 eq 318 Gross market-based Scope 2 GHG emissions ktCO 2 eq 163 Scope 1 + Scope 2 GHG emissions Gross location-based ktCO 2 eq 769 Gross market-based ktCO 2 eq 1,262 614 467 -63% Scope 1 + Scope 2 market-based GHG emissions on TCO scope ktCO 2 eq 524 509 -3% Significant Scope 3 GHG emissions Total Gross indirect (Scope 3) GHG emissions ktCO 2 eq 474,691 cat.11 - Use of sold products ktCO 2 eq 474,691 Commercial aircraft IEA-SDS SAF uptake ktCO 2 eq 466,354 alt. Commercial aircraft - ("no SAF" scenario) ktCO 2 eq 560,614 Other products ktCO 2 eq 8,337 Total GHG emissions Total GHG emissions (location-based) ktCO 2 eq 475,460 Total GHG emissions (market-based) ktCO 2 eq 475,305 Biogenic CO 2 emissions Scope 1 Biogenic CO 2 emissions ktCO 2 eq 85 Scope 2 Biogenic CO 2 emissions ktCO 2 eq NS Scope 3 Biogenic CO 2 emissions ktCO 2 eq 75,392 Scope 3 Cat 11. GHG efficiency for delivered commercial aircraft (as per SBTi-validated target) gCO 2 / pax.km 88.8 61.1 48.0 -46% Scope 3 Cat 11. GHG efficiency for delivered commercial aircraft ("no SAF" scenario”) gCO 2 / pax.km 73.4 Airbus SE/ Report of the Board of Directors 2024 184
2024 GHG emissions breakdowns Unit Scope 1 GHG emissions Gross location-based Scope 2 GHG emissions Gross market-based Scope 2 GHG emissions Mobile sources of emissions ktCO 2 eq 245 0 0 Stationary sources of emissions ktCO 2 eq 206 318 163 From consolidated accounting group ktCO 2 eq 446 275 139 From operationally controlled entities ktCO 2 eq 5 43 23 GHG intensity per net revenue Unit 2024 Total GHG emission (location based) per net revenue ktCO 2 eq/MEUR 6.9 Total GHG emission (market based) per net revenue ktCO 2 eq/MEUR 6.9 Key figures Unit 2024 Net revenue used to calculate GHG intensity In € Million 69,230 Net revenue (other) In € Million 0 Total net revenue (in financial statements) In € Million 69,230 6.2.2.9 GHG removals and carbon credits (E1-7) Carbon credits act as an additional voluntary measure for greenhouse gas emissions neutralisation, contributing towards global climate actions and it does not intend to replace emissions reduction or become a way of achieving Company’s near-term SBTi validated targets. Both nature-based and technology-based removals, from climate change mitigation projects outside the Company supply chain, are considered and should be purchased in 2025, following the conclusions of the IPCC (e.g. Special Report on 1.5°C and Assessment Report 6).The Company intends to work in partnership with carbon sequestration companies to generate additional technology-based carbon removals. So far, the Company has used carbon credits only, and no removal nor storage resulting from projects developed in own operations or value chain are reported. In 2024, the Company evolved its related contractual framework. This new framework is to be used from 2025, including to compensate for 2024 residual emissions as per Company commitment. Key figure Unit 2024 residual emissions to be compensated in 2025 - contractualisation being finalised tCO 2 eq 621,222 Recognised quality standards for carbon credits are those that are verifiable by independent third parties, make requirements and project reports publicly available and at a minimum ensure additionality, permanence, avoidance of double counting and provide rules for calculation, monitoring, and verification of the project’s GHG emissions. As a minimum, the carbon offsets purchased by the Company are 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 was met. On top of the core criteria mentioned above, societal aspects are considered, such as prevention of child labour, respect of human rights and relations with the communities surrounding the projects (FPIC process) and co-benefits strategy. Information including project selection (criteria and generated credits quality) and the verification of their actual implementation as per contractual terms were verified by an independent external body. GHG Removals Unit 2024 Total GHG removals from own operations tCO 2 eq 0 Total GHG removals in the value chain tCO 2 eq 0 Reversals tCO 2 eq 0 Carbon credits cancelled in the reporting year Unit 2024 Total tCO 2 eq 130,560 Share from removal projects % 0.45% Share from reduction projects % 99.55% Per recognised quality standard view % 100.0% Share from projects within the EU % 0.45% Share of carbon credits that qualify as corresponding adjustments % 0% Airbus SE/ Report of the Board of Directors 2024 185
Carbon credits planned to be cancelled in the future Unit Amount Until year Total tCO 2 eq 0 N/A 6.2.2.10 Internal carbon pricing (E1-8) Key figure Unit Internal carbon price EUR / tCO 2 150 Transition plan CapEx and OpEx The Company has established CO 2 reduction targets for Scopes 1, 2, and Scope 3 Use of Sold Products emissions, which have been validated by SBTi (see section “– 6.2.2.2 Transition plan for climate change mitigation (E1-1))”. Over the years, progress has been made in reducing emissions and towards achieving these targets. This progress is largely attributable to the Company’s strategic focus on investments (e.g. industrial assets), and operational measures (e.g. SAF purchase) aimed at decarbonising energy usage and improving energy efficiency, among other initiatives, which are centrally managed and prioritised by the Company. CO 2 savings are inherently the primary decision criterion for this category of investments, and the use of a shadow carbon price - as described in the following paragraphs - had therefore a limited influence on these CapEx investment decisions. Details on investments and measures are disclosed in section “– 6.2.2.2 Transition plan for climate change mitigation (E1-1)”. CapEx investments (Scopes 1 & 2) The Company has started to apply a shadow carbon price in its broader decision-making process to assess the financial impact of carbon emissions and influence decisions accordingly. This fixed price (see table above) was established considering benchmarks, carbon price projections from various relevant sources such as those of the IPCC 2018, IEA and IRENA 2017 and French authorities, as well as the Company's intention to make it an influential factor. The price aims to signal to project leaders the importance of CO 2 footprint reduction and to support consistency of investment decision making with the Company’s commitments to decarbonisation. The integrated internal pricing mechanism factors the internal carbon price into net present value and internal rate of return calculations as part of business case evaluations. By incorporating the cost of carbon, the Company seeks a more holistic financial analysis of its CapEx projects. The financial component in decision making therefore strives to integrate internal carbon price, and favour those investments with a better CO 2 footprint. As per the governance established on that matter, internal carbon price is applied in the business cases of CapEx dossiers for operations for Commercial Aircraft. While the actual use is still partial, the Company intends to continue deploying it in the coming years. Challenges to progress result from certain projects inherently having a minimal direct carbon footprint, or the associated CO 2 emissions may be difficult to quantify or assign accurately, especially in complex supply chains or shared infrastructure. Product incremental development (Scope 3 Use of Sold Products) From November 2023, the use of the shadow carbon price was extended to current aircraft programmes’ product related major incremental developments in Airbus commercial aircraft business segment, supporting its Scope 3 emission reduction ambition. The internal carbon price is used when the Company introduces modifications to existing aircraft programmes, many of which could reduce drag or save weight in its aircraft design to improve fuel efficiency and reduce emissions, while accuracy could still be materially improved with further standardised methodologies to assign a CO 2 emissions to specific modifications. Of note, the use of this internal carbon pricing mechanism is not deemed appropriate in business cases related to any future programmes, to the extent that the energy dimension is embedded in related modelling and projections. Metrics While the Company does not consider CSRD-defined metrics to be relevant indicators to steer such a topic in view of the context described above, the Company will strive to collect necessary information to report such metrics in the future when additional guidance and best practices emerge. Airbus SE/ Report of the Board of Directors 2024 186
6.2.3 ESRS E2 - Pollution 6.2.3.1 Pollution IROs The following IROs were identified for pollution: ESRS (sub-)topic Impact, risk or opportunity Description Time horizon Location in the value chain ESRS E2 - Pollution Substances of concern and Substances of Very High Concern Risk There is a risk that the Company or its suppliers may not be in a position to substitute substances of concern or of very high concern in due time in accordance with regulatory requirements. This could lead to business disruption across the value chain and to the Company not being able to deliver aircraft to its customers, which could negatively affect financial performance and damage its reputation. / Own Operations, Downstream, Upstream ESRS E2 - Pollution Pollution of air Actual negative impact Aircraft and aircraft parts painting and cleaning within certain facilities of the Company lead to volatile organic compound emissions, potentially resulting in air pollution if adequate mitigation measures are not used. Short-term Own operations ESRS E2 - Pollution Pollution of water / Pollution of living organisms and food resources Potential negative impact Production of aviation fuel in the downstream value chain may lead to emissions into water, which may contribute to water pollution and to pollution of living organisms and food resources if adequate mitigation measures are not used. Short-term Downstream, upstream 6.2.3.2 Substances of Concern and of Very High Concern (hereafter jointly referred to as “Substances of Concern”) 6.2.3.2.1 Policies (E2-1) The Airbus Environmental Policy, described under section “– 6.2.1 Policies”, emphasises the importance of addressing substances of concern by driving the development of solutions aimed at substituting and reducing the use of regulated substances throughout the product life cycle. This approach supports compliance with applicable regulations, protection of human health and the environment and mitigates obsolescence risks for the Company in relation to substances of concern. Incidents avoidance and emergency situations are covered in Airbus Environmental Management System. For further detail on the key contents of the Environmental Policy, its scope, accountability, relevant third party standards and initiatives as well as the availability to stakeholders and the consideration of their interests, please refer to the transversal section on Environmental Policy (see section “– 6.2.1 Policies”). The use and management of chemical substances are subject to specific requirements, with the main regulations covering the Company’s activities and products being EU’s Registration, Evaluation, Authorisation and restriction of Chemicals (REACH); Restriction of Hazardous Substances (RoHS) and Persistent Organic Pollutants (POP). 6.2.3.2.2 Actions and resources (E2-2) Some substances used in the global aerospace industry to meet the stringent technical performance standards required for certification and airworthiness are subject to regulations. These regulations impact key industrial processes and products, such as surface treatments, primers and fire protection. The Company works with suppliers and the wider industry with the aim of developing suitable alternatives to the Company’s uses of such substances and actively promotes the development and use of suitable alternatives, across product life-cycles. Airbus SE/ Report of the Board of Directors 2024 187
Impact assessment Using information from its technical documentation/design data-set as at aircraft production and based on information received by the Company from its suppliers, the Company tracks, records, assesses and declares regulated chemicals. This activity encompasses both the Company's own operations and upstream activities, based on information received by the Company from its suppliers. These efforts fall under the "avoid pollution" and “reduce pollution” steps of the pollution mitigation hierarchy. This action enables the Company to monitor its usage of substances and manage its compliance with regulatory requirements as well as anticipate supply disruption risks. 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 ways of working, taking into account the sector’s safety and lifecycle specificities. Substitution The Company has established a portfolio of activities and projects, collaborating with suppliers, the wider industry and airworthiness authorities to identify, develop, qualify, and deploy new technologies and solutions that aim to avoid the use of substances classified as posing a risk to human health or the environment, while still meeting the stringent technical performance standards required for airworthiness and certification. When it can be demonstrated that alternative technologies meet those stringent requirements, the Company seeks to implement them in its product design and manufacturing. For example, the Company is, in cooperation with its suppliers, developing, qualifying and progressively deploying on new products, chromate-free corrosion protection and paint systems for aluminium structures. Key figures, at year end Unit 2024 Number of regulated substances impact analysed No. >16,000 Number of substances for which substitutes were qualified and deployed No. 509 Number of mixtures for which substitutes were qualified and deployed No. 558 The scope of this activity includes the Company's own operations as well as upstream and downstream engagement. These efforts fall under the "avoid pollution" and “reduce pollution” steps of the pollution mitigation hierarchy. Data management The Company is deploying digital tools to facilitate the collection, management and use of substance-related data from its suppliers. This activity encompasses both the Company's own operations and upstream activities, based on information received by the Company from its suppliers. Based on information received by the Company from its suppliers, the engagement extends to both upstream and downstream use of substances, contributing to a life-cycle approach. These efforts fall under the "avoid pollution" and “reduce pollution” steps of the pollution mitigation hierarchy. Monitoring impacts of substance-related regulatory requirements on continuity of supply The Company also focuses on preventing supply chain disruption caused by the unavailability of substances, whether due to regulatory requirements or suppliers' decisions. This initiative involves regular assessment of such potential risks, such as campaigns to gather information from suppliers. It also includes evaluating suppliers' proposed solutions and the qualification of suitable alternatives. This activity encompasses both the Company's own operations and upstream activities, based on information received by the Company from its suppliers. These efforts fall under the "avoid pollution" and “reduce pollution” steps of the pollution mitigation hierarchy. All of these actions are on-going and embedded in the Company’s usual operations. 6.2.3.2.3 Targets (E2-3) The Company framework for substitution of Substances of Concern is aligned with regulatory time horizons rather than with set Company targets and regularly assesses status of the Company’s actions towards managing substance-related regulatory requirements. Examples include using Technology Readiness Levels (TRL) indicators to track progress of the Airbus SE/ Report of the Board of Directors 2024 188 Key figures, at year end Unit 2024 Number of suppliers engaged in this new data collection tool No. Around 500 Number of part numbers covered No. Around 23,000
substitution projects and other Key Performance Indicators which are regularly reviewed by steering committees in charge of substances topics. Aerospace industry products often have long lifecycles and operate in extreme conditions. Finding and certifying suitable alternatives to regulated substances to meet stringent airworthiness standards is a lengthy process, requiring extensive research and development often exceeding regulatory timelines. Consequently, applications for continued use of regulated substances, under specific conditions, are frequently necessary until viable replacements are available. 6.2.3.2.4 Metrics (E2-5) The Company manages substance-related IROs in line with the regulatory requirements and their provisions related to substance traceability, based on information on product composition received by the Company from its suppliers. These provisions generally include the communication of the presence of certain substances, often when above a specified concentration level (for example, presence of Substances of Very High Concern in an article above 0.1% weight by weight (w/w) as required by the Article 33 of the REACH regulation; Substances of Concern which are not Substances of Very High Concern under REACH are not subject to this requirement), or the communication of a range of concentration of some substances in a specific mixture via a Safety Data Sheet (for example, the Company may receive the information that a substance is present in a mixture in a concentration between 10 and 80%). The precise quantity (mass) of substances in a product is not made available to the Company, and the available data does not allow the Company to calculate the quantity of substances in products/articles and mixtures. As mentioned above, the Company is working to deploy digital means to facilitate the collection, management and use of substance related data from its suppliers as a way to enhance its reporting capability in the future and maintain its compliance with substance-related regulations. 6.2.3.3 Pollution of Air 6.2.3.3.1 Policies (E2-1) The Airbus Environmental Policy, described under section “– 6.2.1 Policies”, outlines its environmental management and is designed to manage various environmental aspects, such as Volatile Organic Compounds (“VOC”) emissions. In the context of this Policy, the Company is committed to continually reducing its environmental footprint through its industrial operations by implementing innovative technologies and solutions, including to reduce air emissions. For further detail on the content of the Environmental Policy, its scope, accountability, relevant third party standards and initiatives as well as the availability to and stakeholders and the considerations of their interests, please refer to the transversal section on Environmental Policy (see section “– 6.2.1 Policies”). The Company is subject to pollution-related regulatory requirements, some of which being embedded into the permits granted by local authorities to its sites. In addition, the Company’s ISO 14001 certified Environmental Management System notably applies the standard recommendations for pollution control audits, training, risk assessment and identification, implementation of risk prevention procedures (e.g. emergency plans, simulation exercises). For example, sites shall conduct an analysis of environmental aspects and impacts at least every three years, as well as each time a material change in operations occurs, also in connection with the Company’s ERM process. The Airbus Environmental Management System is intended to cover incidents avoidance and emergency situations. 6.2.3.3.2 Actions and resources (E2-2) Monitoring The Company monitors Volatile Organic Compounds (VOC) emissions to identify the main emitters of VOC within its industrial processes. The VOC emissions are directly measured where required by regulation or calculated through a mass-balance approach. The scope of these continuous actions includes the Company's own operations. These efforts fall under the "avoid pollution" and “reduce pollution” steps of the pollution mitigation hierarchy. This action enables the Company to quantify the VOC emissions and focus actions on priority areas. Storage and handling of raw materials In order to prevent or reduce fugitive VOC emissions during storage and handling of solvent-containing materials, the Company applies various practices, including covering of containers in storage and minimisation of storage in production Airbus SE/ Report of the Board of Directors 2024 189
areas. The scope of these continuous actions includes the Company's own operations. These efforts fall under the "avoid pollution" and “reduce pollution” steps of the pollution mitigation hierarchy. Raw material management including substitution Where technically feasible, the Company reduces the solvent consumption and environmental impact of used raw material by deploying paints/coatings and adhesives with a lower VOC content (high solid systems) as well as water-based systems. The scope of these continuous actions includes the Company's own operations. These efforts fall under the "avoid pollution" and “reduce pollution” steps of the pollution mitigation hierarchy. Cleaning techniques Where technically feasible, the Company implements several measures to reduce VOC emissions from cleaning processes. These measures include the use of pre-impregnated wipes in manual cleaning, the substitution of VOC-based cleaners with low-volatility or water-based cleaning agents, and the use of enclosed washing machines for tool cleaning. The scope of these continuous actions includes the Company's own operations. These efforts fall under the "avoid pollution" and “reduce pollution” steps of the pollution mitigation hierarchy. Coating processes The Company aims to minimise raw material consumption and the overall environmental impact of coating processes by employing advanced spraying techniques such as air-assisted airless spraying and electrostatically assisted spraying. The scope of these continuous actions includes the Company's own operations. These efforts fall under the "avoid pollution" and “reduce pollution” steps of the pollution mitigation hierarchy. These actions are ongoing and embedded in the Company’s operations. 6.2.3.3.3 Targets (E2-3) The Company has defined the following voluntary target aligned with its environmental policy, that should also be put in perspective with the Airbus production ramp up over the 2015-2030 period, on its own operations and operationally controlled entities (see “– 6.2.3.3.4 Metrics (E2-4)”). Emissions target Pollution of Air Unit Target year Target value % vs baseline Baseline year Baseline value 2024 value % 2024 vs baseline VOC emissions in absolute terms tons 2030 1,498 0% increase 2015 1,498 1,230 -18% The methodologies and assumptions for setting this target are based on internal analysis of actionable levers (see section “– 6.2.3.3.2 Actions and resources (E2-2)”) and also take into account production ramp-up planning. While regulatory thresholds were taken into account in establishing this target, no specific additional direct relation to scientific evidence or stakeholder involvement was considered. The metrics for this target have not changed since its inception. 2024 VOC emission trend followed aircraft production. 2024 VOC emissions stood below the 2030 target while the trajectory towards the target integrates expected upcoming aircraft production ramp-up. 6.2.3.3.4 Metrics (E2-4) Scope of reporting and methodology: Only the Hamburg site exceeds the threshold specified in ESRS E2 for VOC reporting (as per Annex II of Regulation (EC) No 166/2006). In addition and to the extent the Company related target applies to its own operations and operationally controlled entities, it reports a second figure on this extended perimeter (VOC on Target perimeter). On this perimeter, most data was reported by entities (see table below): while generally measured, certain specific information from sites may be estimated based on past performance when not available. Information related to the rest of the consolidation perimeter was estimated, following a documented methodology, which is based on modelling activity-based extrapolation modeling. By exception to the consolidation perimeter described above, some small non-controlled entities have been included in the reported figures due to their co-location with consolidated entities (see table below). The main VOC emissions sources derive from surface treatment, cleaning, painting and coating operations through the use of the following materials: Solvents: halogenated (TCE, MC), non-halogenated and ODS (Ozone Depleting Substance) solvents (HFCF 141b) excluding paints and coatings; Solvated paints and coatings: primers, wash primers, topcoats and specific coating (for structural & non-structural parts). When VOC emissions are not measured by the concerned entity, a computation is performed by the concerned entities and is mainly based on a mass-balance approach, therefore taking into account the quantity of VOC in above-mentioned consumed materials (excluding wasted products). Airbus SE/ Report of the Board of Directors 2024 190
Direct measurement has been prioritised on certain sites where measured data is regulatory required, while associated cost benefit ratio was deemed insufficient for other sites. Reporting scope Unit 2024 Data reported by entities % of the Company’s employees * 96% Data estimated % of the Company’s employees * 4% Non-controlled entities included in the reported figures due to their co-location % of the Company’s employees * 0.4% * includes Active Workforce only (for definition see section “– 6.3.2.6 Characteristics of the undertaking’s employees (S1-6)”). Emissions Metrics - Pollution of Air Unit 2024 VOC tons 155 VOC on Target perimeter tons 1,230 6.2.3.4 Pollution of water and pollution of living organisms and food The Company has identified that its environmental impacts, risks, and opportunities related to pollution of water and pollution of living organisms and food are found exclusively within the up- and downstream value chain as a potential impact of the kerosene production processes. An overview of all IROs related to pollution can be found in section “– 6.2.3.1 IROs Pollution”. While LCA leads to identifying such a potential impact, the Company has limited ability to influence the operations of oil & gas companies and does not have any relevant information. 6.2.4 ESRS E3 - Water and marine resources 6.2.4.1 Water IROs The following IROs were identified for water: ESRS (sub-)topic Impact, risk or opportunity Description Time horizon Location in the value chain ESRS E-3 - Water Water: > Water consumption > Water withdrawals Risk There is a risk that the Company or its suppliers may fail to mitigate the potential impact of water stress - related to climate change - on water consumption, usage and withdrawal in their industrial operations, within a timely manner relative to the onset of such risks. This could lead to production disruptions, which could negatively affect financial performance. / Own Operations Upstream ESRS E-3 - Water Water - Habitat degradation: Impact See Pollution of water and living organisms and food resources in ESRS E2 Pollution The Company’s water usage is mostly linked to non-industrial uses, including sanitary, heating, ventilation and air conditioning, canteens and fire extinguishing. Around one third of the water withdrawn is used for industrial uses such as climate control of industrial facilities (e.g. clean rooms for satellite assembly, paint-shops), surface treatment, machining and non-destructive testing. Procuring the required water does not currently represent a material cost for the Company as overall withdrawn volumes are relatively limited, especially for its industrial operations. However, securing water availability to operate the industrial processes requiring water is critical for the Company to ensure business continuity. Environmental risks and opportunities are managed following the Company’s ERM system, as described in the section “– 6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs”. This covers among other risks related to water accessibility in areas of high and extremely high water stress. Airbus SE/ Report of the Board of Directors 2024 191
6.2.4.2 Policies (E3-1) The Airbus Environmental Policy and Environmental Management System, described under section “– 6.2.1. Policies”, emphasises the Company's commitment to sustainable practices in its operations. A focus of the Environmental Policy is on water, where the Company aims to continually explore and implement innovative technologies and solutions aiming to reduce the environmental footprint of its activities, including regarding water. While the policy covers water withdrawal reduction, it does not explicitly mention water management, water sourcing, water treatment or the reduction of water usage in areas at water risk. These aspects are nevertheless included in the Company’s management of water related aspects for its own operations and controlled entities perimeter. For further detail on the key contents of the Environmental Policy, its scope, accountability, relevant third party standards and initiatives as well as the availability to and stakeholders and the considerations of their interests, please refer to the Environmental Policy in section “– 6.2.1. Policies”. 6.2.4.3 Actions and resources (E3-2) The actions listed below support the achievement of the related target, which applies to the Company’s own operations and operationally controlled entities. They have so far been implemented in priority on sites for which measured data is available, covering a large proportion of the concerned impact (see methodology in “- 6.2.4.5 Metrics (E3-4)). In addition, water related actions target in particular sites located in areas at water risk, including areas with high or extremely high water stress. Metering and monitoring The Company undertakes improvement of water metering and monitoring to better understand water usage and identify deviations and abnormalities. Notable implementations in 2024 include the deployment of digitised and automated real-time water withdrawal monitoring at Company’s sites in Spain and France. Leak management The Company strives to detect, repair and prevent water leakages in order to minimise unnecessary water withdrawal. This continuous initiative received particular focus in 2024 and has led to the identification and repair of several leaks in a number of the Company’s sites in France and the UK. Water reduction and reuse The Company develops water recycling and water reuse systems. For example, in 2024, Company sites have adapted processes and equipment to establish closed-loop systems where water is being reused, such as in the press cooling systems in Bremen, Germany. In addition, the Company aims to reduce its water usage by reviewing its industrial processes and equipment. 2024 examples include upgrade of cooling systems and non-destructive testing processes at locations such as Illescas, Spain and Nantes, France. Rainwater harvesting The Company implements rainwater harvesting in order to replace the use of drinking water in industrial and sanitary equipment. As of the end of 2024, this system has been deployed at several Company sites, including Airbus in Toulouse, France; Broughton, UK; and Airbus Helicopters in Paris-Le Bourget, France. Employee engagement The Company also acts on employee engagement in order to raise awareness on water management challenges. In 2024, this included deploying awareness campaigns, such as communications on the World Water Day via the Company’s intranet as well as onsite awareness-raising activities. Sites assessments In 2023, the Company undertook studies supported by external expertise across several Company sites to evaluate the water management maturity level of these sites and identify relevant opportunities to further reduce water withdrawal. Additionally, other sites have conducted self-assessments using the same methodology. In 2024, this approach was extended to additional sites Airbus SE/ Report of the Board of Directors 2024 192
All actions are continuous efforts in the context of the 2030 target (see section “– 6.2.4.4. Targets (E3-3)” below), which are renewed annually, aiming to avoid and reduce the usage and withdrawal of water. All of these ongoing actions are embedded in the Company’s usual operations. 6.2.4.4 Targets (E3-3) The Company has set the following 2030 target (vs. 2015 baseline): -25% reduction in absolute water withdrawal volumes defined by the Company as the sum of purchased water, abstracted groundwater and surface water withdrawal whilst excluding collected rainwater, reclaimed water, brackish coastal water, and “non-contact” water used for geothermal energy generation or heating/cooling; this metric is referred to as “water withdrawal-related KPI”. It applies to the Company's own operations and operationally controlled entities. This target aligns with the vision of the Company's Environmental Policy to continually improve manufacturing processes and site infrastructures to reduce water withdrawal. This target is voluntary. The target was defined in collaboration with impacted functions such as Facility Management, Environment, Health and Safety and Industrial Operations and was validated by the Airbus Industrial Environmental Roadmap cross-divisional Steering Committee. The target is informed by projected local water stress levels according to the World Resources Institute Aqueduct Water Risk Atlas, version 4.0 (dated August 2023), using the Aqueduct 2030 "pessimistic" scenario (aligned with the Company scenario "Disorderly mitigation – Warming exceeding 3°C" which includes the data from IPCC SSP5 RCP8.5). To achieve this Company-wide target, the Company has cascaded site-specific targets, acknowledging that the criticality of water challenges is heavily influenced by local factors. These site-specific targets have been determined with relevant stakeholders at each site, based on local context including local water stress levels. Performance against target is monitored monthly, with a review and analysis of trends or significant changes in performance towards achieving the 2030 target on Company level (update EOY). The previous target focused on purchased water only; the target scope has now been expanded to the scope described above. The inclusion of new entities due to the scope extension has led to an update of the baseline value. The primary focus of this target is the reduction of water withdrawal, which supports the reduction of water consumption. Water target Unit Target year Target value % vs baseline Baseline year Baseline value 2024 value % 2024 vs Baseline Water withdrawal-related KPI m 3 2030 3,225,016 -25% 2015 4,300,021 3,510,180 -18% Water withdrawal (as per target KPI) slightly reduced in 2024 supported by the outcomes of actions described above (see “- 6.2.4.3 Actions and resources (E3-2)”), in a production growth context. This supports the trajectory towards the 2030 target, that integrates expected upcoming aircraft production ramp-up. 6.2.4.5 Metrics (E3-4) Scope of reporting and methodology: Reported data covers Company’s own operations. In addition and to the extent the Company related target applies to its own operations and operationally controlled entities, it reports a second figure on this extended perimeter. Most data was reported by entities (see table below): while generally measured or communicated by water suppliers, certain specific information from sites may be estimated based on past performance when not available. Information related to the rest of the consolidation perimeter was estimated, following a documented methodology, which is based on modelling: employed-based, activity-based extrapolation as deemed relevant for the concerned metrics. By exception to the consolidation perimeter described above, some small non-controlled entities have been included in the reported figures due to their co-location with consolidated entities (see table below). Water consumption is defined as the difference between water withdrawal volumes and water discharge volumes. All volumes of water withdrawal per source and volumes of water discharges by destination are reported by each entity. They can be either obtained from direct measurements (metering or invoice) or estimated (see table below). When water discharge is not measured or partially measured, the discharge volumes can be estimated from the withdrawal volumes depending on the type of usage on site (industrial process, cooling, fire protection, sanitary use…). Water risk and water stress indicators are obtained for each site based on the site’s geographical location, using the Aqueduct Water Risk Atlas 4.0 “baseline” data, World Resources Institute as follows: areas of high water stress: the Aqueduct “Water stress” indicator is used; sites in "high" and "extremely high" water stress locations are considered; areas at water risk: the Aqueduct “Overall water risk” indicator is used; sites in Airbus SE/ Report of the Board of Directors 2024 193
"high" and "extremely high" water risk locations are considered. Entities with less than 100 employees were considered at country level. Reporting scope Unit 2024 Data reported by entities % of the Company’s employees * 96% Data estimated % of the Company’s employees * 4% Non-controlled entities included in the reported figures due to their co-location % of the Company’s employees * 0.4% * includes Active Workforce only (for definition see section “– 6.3.2.6 Characteristics of the undertaking’s employees (S1-6)”). Source of data Unit 2024 Total water withdrawal for which data is measured % 93% Total water withdrawal for which data is estimated % 7% In addition to CRSD defined metrics, the Company reports an additional subtotal corresponding to its water related target and referred to as “water withdrawal-related KPI” (see definition in section “– 6.2.4.4 Targets (E3-3)”). Water Metrics Unit 2024 Total water consumption m 3 595,418 Total water consumption in areas of high water stress m 3 256,355 Total water consumption in areas at water risk m 3 140,989 Total water withdrawal m 3 3,499,794 Water intensity m 3 /M€ 8.6 Additional information linked to the Company’s water performance monitoring Total water withdrawal-related KPI (own operations and operationally controlled entities) m 3 3,510,180 6.2.5 ESRS E4 - Biodiversity and ecosystems 6.2.5.1 Biodiversity and ecosystems IROs The following IROs were identified for biodiversity: ESRS (sub-)topic Impact, risk or opportunity Description Time horizon Location in the value chain ESRS E-4 Biodiversity Direct impact drivers of biodiversity loss, Impact on the extent and condition of ecosystems Actual negative impact The air transport sector's use of aircraft in operation leads to GHG emissions that may indirectly impact biodiversity. Short- term, mid-term, long-term Downstream ESRS E-4 Biodiversity Direct impact drivers of biodiversity loss: > Pollution Potential negative impact Production of aviation fuel in the downstream value chain may lead to water pollution, which may contribute to biodiversity loss if adequate mitigation measures are not used. Short- term, mid-term, long-term Downstream , upstream The biodiversity-related IROs are an indirect effect of the Company's climate change (section “– 6.2.2.1 Climate change IROs”) and pollution (section “– 6.3.2.1 Pollution IROs”) related IROs. 6.2.5.2 Transition plan and consideration of biodiversity and ecosystems in strategy and business model (E4-1) No specific resilience of strategy and business model to biodiversity risks was conducted, in line with the non-identification of any material related risk (see “6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs”). Airbus SE/ Report of the Board of Directors 2024 194
6.2.5.3 Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3) The Company has not identified any sites as having a material negative impact on biodiversity. To date, the Company has not identified any material negative impacts with regards to soil sealing, land degradation and desertification, nor threatened species. 6.2.5.4 Policies (E4-2) The Company has not adopted a policy specifically on biodiversity. The Environmental Policy (see section “– 6.2.1. Policies”) applies to topics related to the biodiversity IROs. In addition, while the Company’s sites ISO 14001 certification embeds biodiversity considerations, processes and actions supporting the local management of biodiversity are also defined to facilitate compliance to local applicable regulatory requirements. 6.2.5.5 Actions and resources (E4-3) The Company has not defined actions on biodiversity, as the actions implemented to address climate change topics are deemed to simultaneously address biodiversity IRO. For more information, please refer to section “– 6.2.2.5 Actions and resources (E1-3)”. 6.2.5.6 Targets and metrics related to biodiversity and ecosystems (E4-4) The Company has not defined targets nor metrics on biodiversity, as the target and metrics to address climate change mitigation is deemed to simultaneously address biodiversity IRO. For more information, please refer to section “– 6.2.2.6 Targets (E1-4)”. 6.2.6 ESRS E5 - Resource use and circular economy While aerospace represents a small fraction of the global volumes for most materials, it is among the main users for some highly specialised materials (e.g. titanium). Key Figure Unit Proportion of Company’s aluminium consumption in the global market % About 0.1% The use of these materials, and the impacts associated with their production or end-of-life, are justified by their contribution to the efficiency of the end product, as they enable lighter structures and more efficient design. As the major portion of a typical aircraft’s life cycle impact comes from its operational use phase, using lighter materials (which are sometimes more impactful in their production processes) is particularly effective in regards to achieving significant reductions in energy consumption and emissions overall. Key figure Unit Typical aircraft’s GHG life cycle impact coming from its operational use phase % 90% Product weight optimisation is largely linked to product performance in terms of range and fuel consumption, and therefore has a benefit for customers. Optimising the use of such high-value materials is directly linked to the Company’s competitiveness, while securing their supply, as they become scarcer, is necessary to ensure business continuity. Accordingly, the Company's circularity approach, that includes in-sourcing and waste management dimensions, relies on several complementary levers that include and can be illustrated as follows: Avoid” or material use optimisation - Weight reduction through material use optimisation has always been a priority in aerospace, as this is directly linked to aircraft performance. More optimised design and manufacturing processes for metallic and composite components can improve the buy-to-fly ratios, as well as reduce weight, material consumption, energy consumption and production costs. For instance, forming technology has led to an aluminium material reduction of 80% for some parts compared to machining from a plate. Reduce” industrial waste - The Company focuses on the waste generated by its sites in the manufacturing process, which is embedded in a waste target. A dedicated multi-functional team with skills from across the Airbus SE/ Report of the Board of Directors 2024 195
organisation such as Engineering, Information Management, Procurement, Industrial Operations and Facility Management is actively working on a waste reduction roadmap. Reduce” - increase the lifespan of components - A large part of the Company's aircraft products' components last for the aircraft service lifetime, which exceeds 20 years on average. Some components, called life-limited parts (“LLPs”), have a lifetime which is limited for the purposes of airworthiness requirements and need to be replaced at specific intervals based on the aircraft age and usage. Repairability - reuse - second life” - With regards to LLPs, easy replacement and availability of parts over the whole programme lifetime are a priority. The Company’s products are maintained and repaired by a number of maintenance, repair and overhaul (MROs) companies and spare parts providers worldwide. The Company's after-sale activities include the sale of spare parts and the provision of maintenance, repair and overhaul services. Recycling” - Waste generated by the Company’s industrial processes often includes high-value materials, so optimising their circularity responds to both environmental and economic objectives. The Company is working on specific initiatives, such as specific loop creation for titanium (see waste related actions) 6.2.6.1 Resource Use and Circular Economy IROs The following IROs were identified for resource use and circular economy : ESRS (sub-)topic Impact, risk or opportunity Description Time horizon Location in the value chain ESRS E-5 - Circular Economy Resource inflow, including resource use Actual negative impact The aviation sector's use of titanium in the production of aircraft components represents a relatively high percentage of the resource's global stock and may affect global resource availability. Short-term, mid-term, long-term Own Operations, Upstream, Downstream ESRS E-5 - Circular Economy Resource inflow, including resource use Risk The risk of titanium supply disruption could have an impact on aircraft production and deliveries, which could affect financial performance. / Own operations, Upstream ESRS E-5 - Circular Economy Waste Opportunity An opportunity to reduce waste may arise from optimising the recovery of industrial waste, such as high-value metallic scraps. This could contribute to more efficient industrial processes and to further secure supply and production, which could contribute to financial performance. / Own operations 6.2.6.2 Policies (E5-1) The Airbus Environmental Policy and Environmental Management System, described under section “– 6.2.1. Policies”, emphasises the Company's commitment to sustainable practices in its operations. The Airbus Environmental Policy outlines the Company’s commitment to reducing environmental impact during production and throughout the product life cycle, eco-design, circularity, and end-of-life considerations (including waste management in its own industrial operations). The Policy focuses on minimising resource depletion (including virgin resources) and the increased use of secondary materials to deliver innovative products and services, although it does not explicitly mention transitioning away from use of virgin resources nor sustainable sourcing and use of renewable resources. All considerations for optimising material use shall also, under no circumstance, be detrimental to product safety and shall meet all technical requirements from stringent certification standards. The Airbus Environmental Policy also emphasises the importance of transitioning from a linear economy to a circular one, diverting waste from landfills and avoiding the depletion of natural resources. The policy does not explicitly mention waste hierarchy nor cover the prioritisation of avoidance. The Company's main industrial waste is composed of metallic waste, general waste, chemical waste and packaging waste. Waste from industrial activities represents about three quarters of the total waste generated by the Company’s sites, the remaining portion being waste generated in offices and canteens. For further detail on the key contents of the Environmental Policy, its scope, accountability, relevant third party standards and initiatives as well as the availability to and stakeholders and the considerations of their interests, please refer to the transversal section on Environmental Policy (section “– 6.2.1 Policies”). Airbus SE/ Report of the Board of Directors 2024 196
6.2.6.3 Resource inflows 6.2.6.3.1 Actions and resources (E5-2) A significant portion of the Company's aircraft components last over 20 years, the typical aircraft service lifetime. Some components, known as life-limited parts (LLPs), need replacement at specific intervals. Ensuring easy replacement and availability of LLPs throughout the aircraft's lifecycle is a priority. The Company's products can be maintained and repaired by various maintenance, repair, and overhaul (MRO) companies and spare parts providers globally. After-sales activities include selling spare parts and offering maintenance, repair, and overhaul services. LLPs can be overhauled for use by other operators or for different missions, including passenger-to-freighter conversions to extend aircraft life. The Company also invests in lifecycle assessments (LCA) for environmental impact, following ISO 14040 standards, and completed LCA studies for all commercial aircraft products delivered in 2024. The Company is dedicated to optimising material use as part of its ongoing resource management strategy. The design process prioritises weight reduction through advanced material use optimisation, which has always been a priority in aerospace and which is directly linked to aircraft performance. These refined and optimised design and manufacturing processes for both metallic and composite components can contribute to improved material utilisation rates (buy-to-fly ratios), as well as reductions in weight, material consumption, waste generation, energy consumption, and production costs. For instance, the redesign of metal components using forming technologies such as stamping or forging enables significant material usage reduction compared to machining from a solid plate. The scope of this action encompasses manufacturing processes across the Company, from its R&D phase to its operational deployments that benefits of material use optimisation may be realised Company-wide. This initiative is designed to be a continuous effort. In the context of the EU Critical Raw Material regulation, the Company has established and maintains an internal methodology to assess the criticality of raw materials based on supply risk, environmental, and human rights impacts. This initiative is driven by the increasing cross-boundary measures impacting the supply of critical raw materials. Based on this, a regularly updated watchlist of the most critical raw materials has been defined to influence design and sourcing choices. Launched in 2023, this initiative fundamentally aims to identify vulnerabilities to mitigate risks associated with raw material supply. The mapping of critical and strategic raw materials is ongoing in the Commercial Aircraft business. The Company’s sustainability and environment competency strategy seeks to cover, among others, circularity. Accordingly, since 2023 training modules are available to employees through the Company’s training catalogue. Examples of modules are “Circular economy – sustainable materials management”, “What is circular economy”, “Implementing circular economy processes”, “Circular design and manufacturing in practice”, “From linear to circular thinking”. All of these actions are ongoing and embedded in the Company’s usual operations. 6.2.6.3.2 Targets (E5-3) The Company has not and does not plan to set a target on this topic. The success of these actions is contingent upon securing commercial agreements and consolidating demand rather than focusing on volume-based objectives. Despite the absence of measurable targets, the Company tracks the effectiveness of its policies and actions in relation to material sustainability-related impacts, risks and opportunities. This is achieved through a dedicated multi-functional team with various skills such as Engineering, Information Management, Procurement, Industrial Operations and Facility Management that is actively working on a waste reduction roadmap that sets priorities for material inflows, manages projects, and monitors progress. As mentioned under “– 6.2.6.3.1 Actions and resources (E5-2)”), weight reduction through material use optimisation has always been a priority in aerospace, as this is directly linked to aircraft performance. 6.2.6.4 Waste 6.2.6.4.1 Actions and resources (E5-2) Waste generated by the Company’s industrial processes often includes high-value materials, including titanium, so optimising their circularity responds to both environmental and economic objectives. The Company has made substantial strides in standardising and harmonising recycling and sorting practices across its operations while managing compliance with local regulations applicable to it. In Europe, these practices have been harmonised, and efforts are ongoing to achieve Airbus SE/ Report of the Board of Directors 2024 197
the same in Canada, the US, Mexico, Morocco and Tunisia. This action applies to the whole Company and is continuous in nature. In its ongoing efforts to support the aerospace sector, the Company is actively engaged in strategic raw material management, with a particular focus on titanium. The Company is developing, in collaboration with relevant suppliers, closed-loop scrap recycling systems for titanium, aiming to reduce the need and reliance on primary alloys by increasing the use of secondary flows within the aerospace sector, thereby supporting the balance of offer and demand for titanium and bolstering titanium aerospace sovereignty. The further development of closed loops with suppliers of raw materials for titanium for aerospace grades is currently under assessment. The deployment of this action has commenced in 2024 at selected Company sites and is gradually implemented on a case-by-case basis across Company’s operations. Over the past years and including in 2024, the Company has focused on metering and on data robustness and accuracy for measuring waste, with a focus on standardising the practices towards waste collectors and in line with regulatory requirements for greater traceability. The objective is to enhance data monitoring, reporting and forecasting capabilities in order to steer efforts through sites on waste management. This includes a harmonisation of definitions, processes and assumptions. Digitalisation is leveraged as an enabler to optimise and reduce the environmental footprint, exemplified by the collection and management of waste data on a single company-wide platform to provide a holistic view of waste generated and facilitate more efficient decision-making. Priority has been given to commercial aircraft activities due to the industrial ramp-up. As of the reporting year, most of the total waste volume produced is tracked and reported on company level on a monthly basis (see table in section “– 6.2.6.4.3 Metrics (E5-5)” below). This initiative aims at reaching a consistent level of data maturity across all sites, thereby enhancing the Company's ability to manage waste and meet policy objectives. Moving forward, the Company will continue to onboard new sites to maintain and improve this standard of data accuracy and transparency. All of these actions are ongoing and embedded in the Company’s usual operations. The Company is set to embark on a comprehensive waste reduction roadmap starting in 2025. This initiative aims to focus on developing and implementing strategies to minimise waste at the Company's main industrial sites. The roadmap would contribute to the Company's long-term sustainability strategy, guiding the Company towards continuous improvement in waste management. This action applies Company-wide and is continuous in nature. 6.2.6.4.2 Targets (E5-3) The Company has set a voluntary objective of reducing these overall waste amounts: Resources use & circular economy target Waste Unit Target year Target value % vs baseline Baseline year Baseline value 2024 value % 2024 vs Baseline Waste produced excluding exceptional waste tons 2030 90,764 -20% 2015 113,455 89,387 -21% Additional targets : with 0% directed to disposal, i.e. landfill and incineration without energy recovery Scope: Own operations and operationally controlled entities Assumptions: see “– 6.2.6.4.3 Metrics (E5-5)” The target relates to all the layers of the waste hierarchy indicated by the ESRS: prevention, preparing for re-use, recycling, other recovery (e.g. energy recovery) and disposal. These targets align with the Company's broader objective to become a recognised leader in environmental engagement and drive eco-efficiency to sustain its business and growth. The targets are measured relative to the 2015 baseline, and span from 2015 to 2030. The scope of these targets is limited to the Company's own operations and operationally controlled entities and defined methodologies and assumptions are used to measure progress. Waste figures are based on actual data measured. The target was developed on the basis of internal waste reduction perspectives and industry benchmark rather than conclusive scientific evidence. The target was defined in collaboration with impacted Company functions such as Facility Management, Environment, Health and Safety and Industrial Operations and was validated by the Airbus Industrial Environmental Roadmap cross-divisional Steering Committee. Airbus SE/ Report of the Board of Directors 2024 198
Performance monitoring is a component of the Company's waste management strategy. The Company relies on waste slips forwarded electronically by waste suppliers in large proportions, while the remaining is estimated based on past waste volumes. This dual approach aims to provide a comprehensive view. In 2024, non-exceptional waste production grew moderately, due to aircraft production ramp up effects partially offset by savings from initiatives described above (see “– 6.2.6.4.1 Actions and resources (E5-2)”). The 2024 level stood below the 2030 target, while the trajectory towards this target factors in the expected effects from upcoming aircraft production ramp-up. 6.2.6.4.3 Metrics (E5-5) Scope of reporting and methodology Reported data covers the Company’s own operations. In addition and to the extent the Company related target applies to its own operations and operationally controlled entities, it reports a second figure on this extended perimeter. Most data was reported by entities (see table below): while generally measured or communicated by waste contractors, certain specific information from sites may be estimated based on past performance when not available. Information related to the rest of the consolidation perimeter was estimated, following a documented methodology, which is based on modelling: employed-based, activity-based extrapolation as deemed relevant for the concerned metrics. By exception to the consolidation perimeter described above, some small non-controlled entities have been included in the reported figures due to their co-location with consolidated entities (see table below). The Company waste target includes all waste generated except "exceptional waste”, as defined below. As a result, relevant information is disclosed in the waste data table. The quantity of waste of a site is the compilation of all types of hazardous and non-hazardous waste on site. This includes in particular waste created by production processes on a regular basis and treated internally and externally. If the internal treatment leads to cessation of the "waste" status, then the amount concerned is not reported (e.g. reuse on site, regulatory “end of waste” status, “by-products”). Reporting scope Unit 2024 Data reported by entities % of the Company’s employees * 96% Data estimated % of the Company’s employees * 4% Non-controlled entities included in the reported figures due to their co-location % of the Company’s employees * 0.4% Estimated share of final waste treatment information pending waste collector information % of total waste volume 15% * “employee” includes active corkforce only (for definition see section “– 6.3.2.6 Characteristics of the undertaking’s employees (S1-6)”). Notes related to categories and treatments: Exceptional waste: Waste from the construction/deconstruction of buildings, dismantling of installations, and incidents caused by external factors beyond the Company’s control (e.g. fire, weather events). Recycling: backfilling operations are included in the recycling volumes as per the European Waste Framework Directive reporting guidelines. Airbus SE/ Report of the Board of Directors 2024 199
Resources use & Circular Economy Metrics - Waste Unit 2024 Total amount of waste generated in Company’s own operations tons 229,389 Total amount of waste diverted from disposal by recovery operations tons 207,469 Total amount of hazardous waste diverted from disposal by recovery operations tons 15,236 Of which, amount going to recycling tons 6,828 Of which, amount going to energy recovery tons 5,523 Of which, amount going to any other recovery operation (pre-treatment / temporary status) tons 2,885 Total amount of non hazardous waste diverted from disposal by recovery operations tons 192,233 Of which, amount going to recycling tons 161,907 Of which, amount going to energy recovery tons 10,921 Of which, amount going to any other recovery operation (pre-treatment / temporary status) tons 19,405 Total amount of waste directed to disposal tons 21,920 Total amount of hazardous waste directed to disposal tons 10,926 Of which, amount going to landfilling tons 992.4 Of which, amount going to incineration without energy recovery tons 2,766 Of which, amount going to any other disposal operation - (pre-treatment / temporary status) tons 7,168 Total amount of non hazardous waste directed to disposal tons 10,994 Of which, amount going to landfilling tons 5,955 Of which, amount going to incineration without energy recovery tons 183.1 Of which, amount going to any other disposal operation - (pre-treatment / temporary status) tons 4,856 Total amount of non-recycled waste tons 60,653 % of non-recycled waste % 26.4% Breakdown per waste category % of general waste % 11.6% % of metallic waste % 12.0% % of chemical waste % 9.0% % of packaging waste % 5.6% % of construction and demolition waste % 60.8% % of other waste categories % 0.9% Total amount of hazardous waste tons 26,162 Additional information linked to the Company’s waste performance monitoring Total amount of waste generated - own operations and operationally controlled entities tons 230,225 Of which, exceptional waste tons 140,837 Of which, non-exceptional waste (Company’s target related metric) tons 89,387 Of which, proportion of general waste % 29.2% Of which, proportion metallic waste % 29.0% Of which, proportion of chemical waste % 23.1% Of which, proportion of packaging waste % 14.7% Of which, proportion of other waste categories % 4.0% Total amount of waste directed to disposal (i.e. directed to landfill or incineration w/o energy recovery - Company’s target related metric) tons 21,938 % waste directed to disposal % 9.5% Airbus SE/ Report of the Board of Directors 2024 200
6.2.7 EU Taxonomy - Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation) 6.2.7.1 Foreword In November 2023, the European Commission officially published a delegated act for the EU Taxonomy Regulation 7 including a set of criteria for aviation related activities. The manufacturing of aircraft is recognised as an eligible activity, supported by the decarbonisation potential brought by the latest generation of commercial aircraft through the replacement of the current fleet and the importance of an ambitious SAF ramp up, as well as by “zero direct tailpipe CO 2 emissions” technologies, which are key components of the Company’s transition plan. Given the Company’s product portfolio, the vast majority (see details in “- Regulatory disclosure” section below) of Revenue, Capital Expenditures (CapEx) and Operating Expenses (OpEx) reported under the EU Taxonomy are related to the “Manufacturing of aircraft”. The Company has screened and assessed the published technical screening criteria related to activity “3.21 Manufacturing of aircraft” under the environmental objective of climate change mitigation. The draft Frequently Asked Questions (FAQs) published by the EU Commission on November 29, 2024 "on the interpretation and implementation of certain legal provisions of the EU Taxonomy Environmental Delegated Act, the EU Taxonomy Climate Delegated Act and the EU Taxonomy Disclosures Delegated Act" as well as prior FAQs published by the EU Commission were also taken into consideration by the Company in preparing its disclosures in accordance with the EU Taxonomy Regulation for fiscal year 2024. 6.2.7.2 Regulatory disclosure The EU Taxonomy is a classification system establishing a list of environmentally sustainable economic activities defined by the EU Taxonomy Regulation. The EU Taxonomy Regulation focuses on six environmental objectives: (1) “climate change mitigation”, (2) “climate change adaptation”, (3) “sustainable use and protection of water and marine resources”, (4) “transition to a circular economy”, (5) “pollution prevention and control”, and (6) “protection and restoration of biodiversity and ecosystems”. An economic activity is considered a Taxonomy-eligible economic activity if it is described in one of the delegated acts supplementing the EU Taxonomy Regulation. An economic activity is considered Taxonomy-aligned and thus considered environmentally sustainable under the EU Taxonomy, if it fulfils the technical screening criteria (“TSC”) and thereby substantially contributes to one or more of the environmental objectives while doing no significant harm (“DNSH”) to any of the other environmental objectives and complying with the minimum safeguards. The EU Taxonomy aims to direct investments towards sustainable projects and activities in order to meet the EU’s climate and energy targets and reach the objectives of the European Green Deal. The TSC have been progressively defined against the six environmental objectives, firstly under the Climate Delegated Act 8 which became applicable as of 1 January 2022 and the Complementary Climate Delegated Act 9 which became applicable as of 1 January 2023. In 2023, the Environmental Delegated Act 10 - including economic activities relating to the other four environmental objectives - and the amendments to the Climate Delegated Act 11 - adding additional climate related economic activities and criteria, including aviation-related ones - were adopted, being applicable from 1 January 2024 (covering FY23 for eligibility and alignment reporting due for FY24). EU Taxonomy assessment for FY 2024 The Company performed an analysis of its business activities against the taxonomy-eligible activities referenced in the applicable Delegated Acts and has assessed compliance with the relevant TSC as well as the minimum safeguards. The process and results of this assessment have been included in the following sections. 11 Commission Delegated Regulation (EU) 2023/2485 of 27 June 2023 amending Delegated Regulation (EU) 2021/2139 (Link) 10 Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council and amending Commission Delegated Regulation (EU) 2021/2178 (Link) 9 Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022 amending Delegated Regulation (EU) 2021/2139 and Delegated Regulation (EU) 2021/2178 (Link) 8 Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council (Link) 7 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (Link) Airbus SE/ Report of the Board of Directors 2024 201
Identification of Taxonomy-eligible activities The Company examined all of its business activities to identify the Taxonomy-eligible activities in accordance with the Annexes to the Climate Delegated Act (CDA), the Environmental Delegated Act (EDA) and the Complementary Delegated Act on Gas and Nuclear Activities. The majority of the Company’s revenue, CapEx and OpEx (e.g. manufacturing of commercial aircraft, military aircraft and helicopters) fall under the activity “3.21 Manufacturing of aircraft” relating to the environmental objective of climate change mitigation (“CCM”). There were no material changes to the identified eligible activities in financial year 2024 compared to financial year 2023. However, as outlined below (see 2. Contextual information), the Company has decided to report its investments formerly reported individually under the infrastructure activities CCM 4.24, 7.3, 7.6 and 8.1 under its core activity CCM 3.21 Manufacturing of aircraft as these investments can be seen as ultimately supporting the Company’s core activity. Beyond activity “3.21 Manufacturing of aircraft” no further material Taxonomy-eligible activities were identified across all six environmental objectives. As this activity is only eligible under the environmental objective of climate change mitigation, the supplementary table to be filled in when a company contributes to multiple objectives was thus not relevant and excluded from the report. The Company does not perform any gas or nuclear related economic activities as described in the Commission Delegated Regulation 2022/1214. The respective ‘template 1’ from Annex XII to the Taxonomy Disclosure Delegated Act is filled in accordingly (see hereafter). In 2024, the preparation and disclosure of figures as per Taxonomy requirements did not require any disaggregation. Alignment assessment for the identified Taxonomy-eligible activities To evaluate whether the identified Taxonomy-eligible activity “3.21 Manufacturing of aircraft” is Taxonomy-aligned and thus sustainable according to the EU Taxonomy, the TSC (including DNSH criteria) and minimum safeguards were assessed. The assessment of the criteria for making a substantial contribution to climate change mitigation was carried out at activity and aircraft level. The assessment of the DNSH criteria was performed at a site level for Appendix A (climate risk assessment), Appendix B (generic criteria for DNSH to sustainable use and protection of water and marine resources) and Appendix D (generic criteria for DNSH to protection and restoration of biodiversity and ecosystems) of the CDA and at activity level for Appendix C (generic criteria for DNSH to pollution prevention and control regarding use and presence of chemicals) and the specific DNSH for Pollution prevention and control . The compliance with the minimum safeguards was assessed at company level. 1. Substantial Contribution To determine if an economic activity is Taxonomy-aligned, it must substantially contribute to one or more of the environmental objectives. For Airbus Commercial related activities only the latest generation aircraft that are not produced for private or commercial business aviation fulfil the substantial contribution criteria 12 : A220 family, A320neo family, A330neo family, A350XWB family. Therefore the following are considered only as eligible and not-aligned: “ceo" variants of A330 and Single Aisle programmes, Aircraft sold as part of Airbus Corporate Jets (ACJ) business.Some project aircraft also fulfil the criteria for aircraft with zero direct CO 2 emissions. Associated financial amounts being confidential, the corresponding aligned amounts are included into the amounts categorised in «transitional activities», which corresponds to the substantial contribution criteria described above. Aircraft produced by Airbus Helicopters and Airbus Defence and Space cannot fulfil the substantial contribution criteria as it is based on a technical certification standard that is only applicable to commercial aircraft. By applying the global replacement ratio 13 for its aircraft meeting the alignment criteria, the Company can determine the share of concerned KPIs as aligned. Key figure Unit Global replacement ratio % 48% 13 Extract from the draft Frequently asked questions (FAQs) published by the EU Commission on November 29, 2024 “The global replacement ratio is calculated based on the proportion of aircraft permanently withdrawn from use to aircraft delivered at the global level averaged over the preceding 10 years as evidenced by verified data available from independent data providers”. “The ratio is recalculated for each reporting year, as the GRR is dynamic and the underlying data will change each year”. “The GRR for the reporting year ending in 2024 is 48%”. “The details of the GRR calculation are available at the EASA website at: https://www.easa.europa.eu/en/eutaxonomy-sustainable-activities”. 12 As per described in the CDA, substantial contribution point (b) under the activity “3.21 Manufacturing of aircraft” cover the aircrafts: (i) having maximum take-off mass greater than 5,7 t and less than or equal to 60 t and a certified metric value of CO 2 emissions of at least 11 % less than the New Type limit of the International Civil Aviation Organization (ICAO) standard; (ii) having a maximum take-off mass greater than 60 t and less than or equal to 150 t and a certified metric value of CO 2 emissions of at least 2 % less than the New Type limit of the ICAO standard; (iii) having a maximum take-off mass greater than 150 t and a certified metric value of CO 2 emissions of at least 1,5 % less than the New Type limit of the ICAO standard.” Airbus SE/ Report of the Board of Directors 2024 202
2. Do No Significant Harm (DNSH) In order to report activity “3.21 Manufacturing of Aircraft” as aligned, besides making a substantial contribution to climate change mitigation, the Company further needs to ensure that it does no significant harm to the other environmental objectives. The assessment for each of the respective DNSH criteria is outlined in detail below. Climate Change Adaptation. As described in section “– 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)” the Company performed a climate risk and vulnerability assessment to identify physical climate risks affecting the production sites related to its core activity “3.21 Manufacturing of aircraft”. The physical climate risks the Company identified were assessed based on the lifetime of the relevant assets. The Company’s’ physical climate risk assessment is based on the Representative Concentration Pathway (RCP8.5) and the Shared Socioeconomic Pathway (SSP5-8.5) scenario to the year 2050 and thus assumes the highest concentration of CO 2 according to the Intergovernmental Panel on Climate Change (IPCC). The relevance of the identified climate risks was assessed for each site and, if appropriate, the measures needed to mitigate risks material to the activity “3.21 Manufacturing of aircraft” were developed and a corresponding adaptation plan formulated which is going to be implemented within five years. As part of the formulation and implementation of this adaptation plan, the Company is in the process of conducting site visits of each of its relevant production sites. Sustainable use and protection of water and marine resources. The Company evaluated its economic activities with respect to the sustainable use and protection of water and marine resources considering the three following criteria: preserving water quality, avoiding water stress and preserving the good environmental status of marine waters and fulfilling the requirements of all three criteria. In addition, for sites located in areas of high-water stress, water reduction targets have been set. For Company sites located near marine waters, it was ensured that the Company’s activities do not hamper the achievement of good environmental status of marine waters. DNSH Transition to a circular economy. The Company assessed the possibility and actual use of secondary raw materials, the recyclability and durability of the product, and the traceability of substances of concern were assessed. Where feasible the Company does use secondary raw materials and has implemented internal policies and guidelines regarding material use. All Airbus aircraft are manufactured to be highly durable to meet demanding airworthiness certification criteria that aim to ensure their safety while being used in harsh atmospheric conditions. Measures are in place to manage and recycle waste at the end-of-life. Measures are in place to manage waste in a way that maximises recycling and reuse in accordance with the waste hierarchy (for more information on waste management see section “– 6.2.6.4 Waste”). DNSH Pollution prevention and control. The Company evaluated its core activity with respect to the use of certain substances as laid out in Appendix C of Annex I to the Climate Delegated Act. The Company has established processes which aim to monitor and facilitate compliance with requirements and limits relating to the use of chemical substances at its production sites. For hazardous substances that are categorised as being of very high concern in accordance with Articles 57 and 59 of the REACH Regulation that are used or present in the final product, feasible substitutes are sought. If suitable alternatives to use of these hazardous substances are not available for deployment, they are used under controlled conditions in accordance with Chemicals and Health & Safety laws and regulations. Substances meeting the criteria of the Classification Labelling and Packaging (CLP) regulation in one of the hazard classes or hazard categories mentioned in Article 57 of the REACH Regulation are used under controlled conditions in accordance with Chemicals and Health & Safety laws and regulations. An application of Appendix C criteria that effectively bans use of substances referred to in it, de facto renders any alignment impossible for a manufacturing activity subject to Appendix C. In addition, an application of Appendix C criteria considering the use of substances pursuant to regulations applicable to the Company, an entity-specific disclosure, is presented in “– 6.2.7.3 Alignment assessment - conditional use of substances”. The Company’s aircraft that fulfil Significant Contribution Criteria point (b) comply with the relevant requirements referred to in Article 9(2) of Regulation (EU) 2018/1139 and fulfill the respective amendments of the Chicago Convention mentioned under the DNSH Pollution prevention and control. DNSH Protection and restoration of biodiversity and ecosystems. Compliance with the DNSH criteria on biodiversity and ecosystems was assessed by checking that, for Airbus’ sites for which an environmental impact assessment - including the implementation of respective measures - was required, such assessment was actually conducted. For all other sites, it was assessed whether the site is in or near a biodiversity-sensitive area, and, if so, it was checked whether a nature conservation assessment has been performed and whether nature conservation measures have been defined and subsequently implemented. Airbus SE/ Report of the Board of Directors 2024 203
3. Minimum safeguards As the final step of its alignment assessment, the Company assessed its compliance with the minimum safeguards (“MS”). The MS include all procedures implemented to ensure that economic activities are carried out in compliance with: the OECD Guidelines for Multinational Enterprises (OECD MNE Guidelines) published in 2023; • the UN Guiding Principles on Business and Human Rights (UNGPs), including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organization on Fundamental Principles and Rights at Work; and the International Bill of Human Rights. In Airbus Code of Conduct, the Company has, among other points, committed to comply with the International Labour Organization (ILO) Conventions and the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises. The Company furthermore has established due diligence processes (see section 6.1.1.2.4 GOV-4: Statement on due diligence) related to human rights and anti-corruption and bribery and is complying with competition laws and tax regulations in all jurisdictions in which the Company is active (see section “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”) EU Taxonomy KPIs Accompanying Information 1. Accounting Policy The Company's EU Taxonomy disclosure covers the following scope: EU Taxonomy share of revenue, CapEx and OpEx of the Company’s consolidated financial statements. For information regarding accounting treatment of the applicable financial KPIs, please refer to the “Notes to the IFRS Consolidated Financial Statements” (Note 4: Significant Accounting Policies). Revenue, CapEx and OpEx were determined and allocated to the numerator by performing a mapping between the description of activities in the EU Taxonomy and the Company’s portfolio of sources of revenues, investments and expenses. The only source for financial data for EU Taxonomy is FACTS, the consolidated accounting information system used by the Company to publish its financial statements. The Company has been allocated one taxonomy activity and one environmental objective, avoiding the risk of double counting. 2. Contextual information For the assessment of “Manufacturing of aircraft” activity in relation with its product portfolio, "aircraft" covers the Company's commercial aircraft, military aircraft and helicopters. According to the published TSC related to “Manufacturing of Aircraft”, the substantial contribution criteria to the climate change mitigation objective can be assessed (1) for “zero direct tailpipe CO 2 emission” aircraft, or (2) for aircraft meeting performance criteria based on the ICAO CO 2 standard. For those aircraft that meet the performance criteria based on the ICAO CO 2 standard, the Company has applied the global replacement ratio published by the EASA (see figure above). The global replacement ratio acts as a proxy for identifying the aircraft not increasing the worldwide fleet number as required by the TSC, i.e. that have been permanently withdrawn from use to aircraft delivered at the global level averaged over the preceding 10 years and it is currently provided by the European Union Aviation Safety Agency (EASA). The Company’s consolidated financial information system categorises revenues, CapEx and Opex by “EADS products” (or programme), which shall be used in order to identify the ratio and percentage of alignment. The methodology for categorisation will depend on the activities performed at each EADS product in accordance with the EU Taxonomy criteria. Some of Airbus activities are not allocated to any particular programme for that reason a specific grouping called “multi programme” is created which regroups all revenues/ costs. It is possible that some of the activities included fail the Technical Screening Criteria. In order to not account for it as aligned, the Delivery Adjustment Factor is implemented. The calculation is as follows: .  &  /   /  2.1. Contextual Information about Revenue KPI The eligibility of revenue includes aircraft and revenue corresponding to activity “3.21 Manufacturing of Aircraft” and includes manufacturing, maintenance, repair and overhaul activities. Revenue related to other activities has been assessed and no revenues have been identified that match any other economic activities. For more information about Airbus consolidated revenues, please see “1. Airbus SE IFRS Consolidated Financial Statements” in the 2024 Financial Statements. Airbus SE/ Report of the Board of Directors 2024 204
2.2. Contextual Information about CapEx KPI The CapEx KPI includes additions to property, plant, and equipment and intangible assets (for more information about Airbus consolidated capital expenditures, please see “– “Notes to the IFRS Consolidated Financial Statements - Note 11. Segment Information, Segment capital expenditures” in the 2024 Financial Statements“), following the EU taxonomy guidance, the right-of-use assets from leases and business combinations have been added. The only eligible CapEx is related to the activity “3.21 Manufacturing of aircraft” in the climate mitigation objective. In 2023 the Company reported on infrastructure related economic activities individually under the activities CCM 4.24, 7.3, 7.6 and 8.1., In 2024 the Company continued to invest in decarbonising its industrial operations however, those investments are reported as eligible under activity “3.21 Manufacturing of aircraft” as these are seen as enabling investments to manufacture Airbus products. The Company has not identified eligible or aligned individual CapEx for other environmental objectives. The capital expenditures disclosed under the CapEx KPI are not part of a CapEx Plan meeting the conditions specified under the EU Taxonomy Regulation. 2.3. Contextual Information About the OpEx KPI In the context of the EU Taxonomy reporting, the Company’s OpEx KPI considers research and development costs, and is therefore related to “Manufacturing of aircraft” activity. Building renovation measures, short-term lease, maintenance and repair cost and other expenses were not included, as they are non-significant (see – “Notes to the IFRS Consolidated Financial Statements - Note 13. Research and Development Expenses”). 3. Future Developments The Company will continue to report under the EU Taxonomy with regard to its Taxonomyeligible economic activities as well as its Taxonomyaligned economic activities. This entails a further and continuous review of the economic activities. Future guidance on the EU Taxonomy could result in updated definitions and other decision making in meeting reporting obligations that may come into force. The Company expects that its reporting will evolve over time as more insights will be gained on how best to comply with the EU Taxonomy. Activities from the Company’s two Divisions (Airbus Helicopters and Airbus Defence and Space) may be covered to some extent in future developments of the EU Taxonomy, as some of the Company’s activities are not yet included in the Taxonomy. EU Taxonomy KPIs Proportion of Revenue from Products or Services Associated with Taxonomy-aligned Economic Activities - Disclosure covering Year 2024 Financial year N Year Substantial contribution criteria DNSH criteria (‘Does Not Significantly Harm’ (h) MS17 Proportion of Taxonomy aligned (A.1) or -eligible (A.2) revenue, year N-1 (18) Cat19 Cat20 Economic activities (1) Code (a) (2) Revenue (3) Proportion of revenue year N (4) SC5 (5) SC6 (6) SC7 (7) SC8 (8) SC9 (9) SC10 (9) DN11 (11) DN12 (12) DN13 (13) DN14 (14) DN15 (15) DN16 (16) Text Currency In m € % Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (Taxonomy-aligned) Revenue of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0 0% 0% % % % % % Y Y Y Y Y Y Y 0% T Of which enabling 0 0% % % % % % % Y Y Y Y Y Y Y 0% E Of which transitional 0 0% 0% Y Y Y Y Y Y Y 0% T A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) Manufacturing of aircraft (c) CCM 3.21 64,116 93% EL N/EL N/EL N/EL N/EL N/EL 91% Revenue of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned) (A.2) 64,116 93% 91% A. Revenue of Taxonomy-eligible activities (A.1 + A.2) 64,116 93% 91% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES SC5 - Climate change mitigation SC6 - Climate change adaptation SC7 - Water SC8 - Pollution SC9 - Circular economy SC10 - Biodiversity DN11 - Climate change mitigation DN12 - Climate change adaptation DN13 - Water DN14 - Pollution DN15 - Circular economy DN16 - Biodiversity MS17 - Minimum safeguards Cat19 - Category enabling activity Cat20 - Category transitional activity Revenue of Taxonomy-non-eligible activities 5,114 7% Total 69,230 100% Airbus SE/ Report of the Board of Directors 2024 205
(a) The Code constitutes the abbreviation of the relevant objective to which the economic activity is eligible to make a substantial contribution, as well as the section number of the activity in the relevant Annex covering the objective, i.e.: Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water and Marine Resources: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO. (b) Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective; N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective. (c) Where an economic activity contributes substantially to multiple environmental objectives, the most relevant environmental objective for the purpose of computing the KPIs of financial undertakings while avoiding double counting is indicated in bold. The extent of eligibility and alignment per environmental objective, that includes alignment with each of environmental objectives for activities contributing substantially to several objectives, is reported in the left table. (d) The same activity may align with only one or more environmental objectives for which it is eligible. (e) The same activity may be eligible and not aligned with the relevant environmental objectives. (f) EL – Taxonomy-eligible activity for the relevant objective N/EL – Taxonomy-non-eligible activity for the relevant objective. (g) Activities are reported in Section A.2 of this template only if they are not aligning to any environmental objective for which they are eligible. Activities that align to at least one environmental objective are reported in Section A.1 of this template. (h) For an activity to be reported in Section A.1 all DNSH criteria and minimum safeguards shall be met. For activities listed under A2, columns (5) to (17) are filled in on a voluntary basis. The substantial contribution and DNSH criteria that they meet or do not meet may be indicated in Section A.2 by using: (a) for substantial contribution – Y/N and N/EL codes instead of EL and N/EL; and (b) for DNSH – Y/N codes. EU Taxonomy KPIs Proportion of CapEx from Products or Services Associated with Taxonomy-aligned, Taxonomy-eligible and Taxonomy-non-eligible Economic Activities - Disclosure Covering year 2024 Financial year N Year Substantial contribution criteria DNSH criteria (‘Does Not Significantly Harm’) (h) Economic activities (1) Code (a) (2) CapEx (3) Propor tion of CapEx year N (4) SC5 (5) SC6 (6) SC7 (7) SC8 (8) SC9 (9) SC10 (10) DN11 (11) DN12 (12) DN13 (13) DN14 (14) DN15 (15) DN16 (16) MS17 (17) Proportion of Taxonomy aligned (A.1) or -eligible (A.2) CapEx year N-1 (18) Cat19 Cat20 Text Currency % Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (Taxonomy-aligned) CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0 0% 0% % % % % % Y Y Y Y Y Y Y 0% Of which enabling 0 0% % % % % % % Y Y Y Y Y Y Y 0% E Of which transitional 0 0% 0% Y Y Y Y Y Y Y 0% T A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned) (g) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) EL; N/EL (f) Manufacturing of aircraft CCM 3.21 3,641 80% EL N/EL N/EL N/EL N/EL N/EL 75% Production of heat and cool from bioenergy (c)(d) CCM 4.24 / CCA 4.24 0 0% EL EL N/EL N/EL N/EL N/EL 0% Installation, maintenance and repair of energy efficiency equipment CCM 7.3 / CCA 7.3 0 0% EL EL N/EL N/EL N/EL N/EL 1% Installation, maintenance and repair of renewable energy technologies CCM 7.6 / CCA 7.6 0 0% 0% Data processing, hosting and related activities CCM 8.1 0% CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned) (A.2) 3,641 80% % % % % % % 76% A. CapEx of Taxonomy-eligible activities (A.1 + A.2) 3,641 80% % % % % % % 76% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES SC5 - Climate change mitigation SC6 - Climate change adaptation SC7 - Water SC8 - Pollution SC9 - Circular economy SC10 - Biodiversity DN11 - Climate change mitigation DN12 - Climate change adaptation DN13 - Water DN14 - Pollution DN15 - Circular economy DN16 - Biodiversity MS17 - Minimum safeguards Cat19 - Category (enabling activity or) Cat20 - Category ‘(transitional activity)’ CapEx of Taxonomy-non-eligible activities 908 20% Total 4,549 100% (a) The Code constitutes the abbreviation of the relevant objective to which the economic activity is eligible to make a substantial contribution, as well as the section number of the activity in the relevant Annex covering the objective, i.e.: Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water and Marine Resources: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO. (b) Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective; N/EL – not eligible, Taxonomy-non-eligible activity for the relevant environmental objective. (c) Where an economic activity contributes substantially to multiple environmental objectives, the most relevant environmental objective for the purpose of computing the KPIs of financial undertakings while avoiding double counting is indicated in bold. The extent of eligibility and alignment per environmental objective, that includes alignment with each of environmental objectives for activities contributing substantially to several objectives, is reported in the left table. (d) The same activity may align with only one or more environmental objectives for which it is eligible. (e) The same activity may be eligible and not aligned with the relevant environmental objectives. (f) EL – Taxonomy-eligible activity for the relevant objective N/EL – Taxonomy-non-eligible activity for the relevant objective. (g) Activities are reported in Section A.2 of this template only if they are not aligning to any environmental objective for which they are eligible. Activities that align to at least one environmental objective are reported in Section A.1 of this template. (h) For an activity to be reported in Section A.1 all DNSH criteria and minimum safeguards shall be met. For activities listed under A2, columns (5) to (17) are filled in on a voluntary basis. The substantial contribution and DNSH criteria that they meet or do not meet may be indicated in Section A.2 by using: (a) for substantial contribution – Y/N and N/EL codes instead of EL and N/EL; and (b) for DNSH – Y/N codes. Airbus SE/ Report of the Board of Directors 2024 206
EU Taxonomy KPIs Proportion of OpEx from Products or Services Associated with Taxonomy-aligned Economic Activities - Disclosure Covering year 2024 Financial year N Year Substantial contribution criteria DNSH criteria (‘Does Not Significantly Harm’) (f) Economic activities (1) Code (a) (2) OpEx (3) Propor tion of OpEx year N (4) SC5 (5) SC6 (6) SC7 (7) SC8 (8) SC9 (9) SC10 (10) DN11 (11) DN12 (12) DN13 (13) DN14 (14) DN15 (15) DN16 (16) MS17 (17) Proportion of Taxonomy-alig ned (A.1) or-eligible (A.2) OpEx; year N-1 (18) Cat19 Cat20 Text Currency % Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y;N; N/EL (b)(c) Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (Taxonomy-aligned) OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0 0% 0% % % % % % Y Y Y Y Y Y Y 0% Of which enabling 0 0% % % % % % % Y Y Y Y Y Y Y 0% E Of which transitional 0 0% 0% Y Y Y Y Y Y Y 0% T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL; N/EL (e) EL; N/EL (e) EL; N/EL (e) EL; N/EL (e) EL; N/EL (e) EL; N/EL (e) Manufacturing of aircraft (d) CCM 3.21 3,054 94% EL N/EL N/EL N/E L N/E L N/EL 93% OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 3,054 94% % % % % % % 93% A. Opex of Taxonomy eligible activities (A.1 + A.2) 3,054 94% % % % % % % 93% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES SC5 - Climate change mitigation SC6 - Climate change adaptation SC7 - Water SC8 - Pollution SC9 - Circular economy SC10 - Biodiversity DN11 - Climate change mitigation DN12 - Climate change adaptation DN13 - Water DN14 - Pollution DN15 - Circular economy DN16 - Biodiversity MS17 - Minimum safeguards Cat19 - Category enabling activity Cat20 - Category transitional activity OpEx of Taxonomy-non-eligible activities (B) 196 6% Total 3,250 100% (a) The Code constitutes the abbreviation of the relevant objective to which the economic activity is eligible to make a substantial contribution, as well as the section number of the activity in the relevant Annex covering the objective, i.e.: Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water and Marine Resources: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO. (b) Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective; N/EL – not eligible, Taxonomy-non-eligible activity for the relevant environmental objective. (c) Where an economic activity contributes substantially to multiple environmental objectives, the most relevant environmental objective for the purpose of computing the KPIs of financial undertakings while avoiding double counting is indicated in bold. The extent of eligibility and alignment per environmental objective, that includes alignment with each of environmental objectives for activities contributing substantially to several objectives, is reported in the left table. (d) The same activity may align with only one or more environmental objectives for which it is eligible. (e) The same activity may be eligible and not aligned with the relevant environmental objectives. (f) EL – Taxonomy-eligible activity for the relevant objective N/EL – Taxonomy-non-eligible activity for the relevant objective. (g) Activities are reported in Section A.2 of this template only if they are not aligning to any environmental objective for which they are eligible. Activities that align to at least one environmental objective are reported in Section A.1 of this template. (h) For an activity to be reported in Section A.1 all DNSH criteria and minimum safeguards shall be met. For activities listed under A2, columns (5) to (17) are filled in on a voluntary basis. The substantial contribution and DNSH criteria that they meet or do not meet may be indicated in Section A.2 by using: (a) for substantial contribution – Y/N and N/EL codes instead of EL and N/EL; and (b) for DNSH – Y/N codes. Nuclear and fossil gas related activities Row Nuclear energy related activities 1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. NO 2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. NO 3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. NO Fossil gas related activities 4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. NO 5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. NO 6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. NO Airbus SE/ Report of the Board of Directors 2024 207
6.2.7.3 Alignment assessment - conditional use of substances In the absence of implementation guidance by the EU Commission or the Netherlands on the DNSH pollution criteria (EU Taxonomy - Appendix C), the Company reports in addition, as an entity-specific disclosure, a set of information considering the use of substances pursuant to regulations applicable to the Company for the alignment of the Company's "Manufacturing of Aircraft" activity. 2024 key figures Eligible (M€) Eligible (%) Aligned (M€) Aligned (%) Under application of DNSH pollution prevention/control criteria considering use of substances permitted under applicable conditions (cf above section 6.2.7.3) Revenue 64,116 93% 20,944 30% CapEx 3,641 80% 1,472 32% OpEx 3,054 94% 1,440 44% Under application of DNSH pollution prevention/control criteria preventing any use of substances (cf above section 6.2.7.2, “Alignment assessment”, para 2 (DNSH)) Revenue 64,116 93% 0 0% CapEx 3,641 80% 0 0% OpEx 3,054 94% 0 0% Airbus SE/ Report of the Board of Directors 2024 208
6.3 Social information 6.3.1 Policies To manage social IROs the Company has put in place social policies which aim to prevent, mitigate or remediate impacts on rightsholders. The Airbus Company Human Rights Policy and the International Framework agreement, detailed below, cut across several parts of the value chain. They are complemented by policies which are more specifically focused on material topics linked to the Company’s own workforce, workers in the value chain and end-users and consumers as detailed below in the ESRS S1, S2, and S4 sections respectively. Policies are embedded into the Airbus Business Management System through specific Directives (see “– 6.1.1.2.4 GOV-4: Statement on due diligence”). Human Rights Policy The Company’s human rights ambition is to ‘embed and advance respect for human rights throughout its business, operations and supply chain’. As such, the Company is committed to upholding fundamental human rights taking into account the following international standards and principles: International Bill of Human Rights, consisting of the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights United Nations Guiding Principles on Business and Human Rights (UNGPs) International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work OECD (Organisation for Economic Cooperation and Development) Guidelines for Multinational Enterprises on Responsible Business Conduct OECD Due Diligence Guidance for Responsible Business Conduct Ten Principles of the UN Global Compact, of which Airbus has been a signatory since 2003 The Airbus Company Human Rights Policy outlines the Company's expectations towards respecting human rights and preventing adverse human rights impacts including through governance, undertaking ongoing human rights due diligence, stakeholder engagement, access to grievance mechanisms, and regular monitoring including by top management. The Company’s policy commitments are being embedded throughout the Company through a Sustainability Due Diligence and Human Rights Directive which defines and establishes a set of Company business requirements. These business requirements will be integrated into the Company’s Business Management System and be supported by methods, processes and guidance. Internal capacity building, including training and awareness raising, will also support adherence. The policy covers various aspects such as forced labour including modern slavery and human trafficking, child labour, migrant workers, social dialogue and freedom of association including collective bargaining, remuneration, working time, occupational health and safety, inclusive workplaces, harassment, data privacy, community impacts, products and services including product safety, and supplier engagement. It applies to all Company employees worldwide, including in divisions and controlled affiliates, and encourages non-controlled affiliates to adopt similar standards. It also covers contractors whilst on premises of the Company or at work under the responsibility of the Company. The Chief Sustainability Officer, an Executive Committee member, holds top-level accountability for human rights. Signatories of the Airbus Company Human Rights Policy as released in May 2022 also includes the CEOs of Airbus Defence and Space and Airbus Helicopters, as well as the Chief Human Resources & Workplace Officer, the General Counsel, the Chief Procurement Officer, and the Chief Operating Officer. In addition to the third party social assessment process (see Step 2 in “– 6.1.1.2.4 GOV-4: Statement on due diligence”), implementation of the policy is primarily monitored through mechanisms being established in the Company’s Business Management System, such as the process to Manage Company Performance, including the definition of objectives, regular performance reviews and execution of corrective actions in case of deviations from target. The policy was developed with input from internal and external stakeholders, including divisional and functional representatives of the Human Rights Core Team and Steering Committee, members of the Legal & Compliance team, human rights experts, academics, and civil society. It was also discussed at the Airbus Global Forum and the Societas Europaea Works Council, which represents the Company’s European social partners. The Airbus Human Rights Policy statement is publicly available on the Company website. Airbus SE/ Report of the Board of Directors 2024 209
In cases where the Company identifies that it has caused or contributed to an adverse impact, it will seek to address such impacts through appropriate remediation, aiming to restore affected persons to their original situation where possible. Remediation efforts will be proportionate to the significance and scale of the adverse impact and may involve cooperation with relevant stakeholders. International Framework Agreement The International Framework Agreement (IFA) reaffirms the Company’s willingness to respect the regulations regarding fundamental human rights, equal opportunities, free choice of employment, as well as prohibition of forced and child labour and respect for the conditions for social dialogue. It also prioritises Health and Safety through a proactive occupational health and safety and risk prevention system. The Company prohibits any type or threat of physical and/or psychological abuse in the workplace and strives to contribute to workers’ social welfare, medical care, and long-term disability coverage. The Company intends, via its agreements, to respect the disposition of the following ILO Conventions: Discrimination – employee and occupation (No. 111) Equal remuneration (No. 100) Workers’ representatives (No. 135) Forced labour (No. 29) Abolition of forced labour (No. 105) Child labour (No. 182) Minimum age (No. 138) Freedom of association and protection of the right to organise (No. 87) Right to organise and collective bargaining (No. 98) The commitments under this agreement have been integrated into the formalisation of Company-wide policies such as the Airbus Company Human Rights Policy and the Human Resources Airbus Company Policy which are providing guiding principles for business conduct at the Company. The implementation of these company policies is monitored through mechanisms established in the Company’s Business Management System and implemented in all functions, such as the process to Manage Company Performance. The scope of the IFA is company-wide, with accountability resting with the Chief Human Resources & Workplace Officer. As well as respecting the principles defined in the Universal Declaration of Human Rights, the agreement builds on international standards and principles including the ILO Core Conventions, the OECD Guidelines for Multinational Enterprises and the UN Global Compact. The IFA was developed and agreed through multistakeholder collaboration between the Company, the European Works Council, European Metalworkers' Federation, and International Metalworkers' Federation and is publicly available on the IndustriAll global union website. 6.3.2 ESRS S1 - Own workforce 6.3.2.1 Own workforce IROs The following IROs were identified for the Company’s own workforce: ESRS (sub-)topic Impact, risk or opportunity Description Time horizon Location in the value chain ESRS S1 - Own workforce Working conditions: > Health and safety Actual negative impact Unidentified weaknesses in health and safety management measures could allow the Company's own workforce to work unsafely, which could cause injury or ill-health from the work environment, process or activity. Short-term, mid-term and long-term Own operations Airbus SE/ Report of the Board of Directors 2024 210
ESRS S1 - Own workforce Working conditions: > Health and safety Risk Unidentified weaknesses in health and safety management measures could cause work related injury or ill health that could affect employee engagement, absence rates or job market attractiveness and cause production disturbances. / Own operations ESRS S1 - Own workforce Equal treatment: >Diversity Risk There is a risk that the Company, despite significant efforts and resources dedicated to workforce diversity, is considered not sufficiently diverse, which could lead to employee disengagement and lower recruitment attractivity. This could damage its reputation. / Own operations ESRS S1 - Own workforce Working Conditions: > Social dialogue > Freedom of association > Collective bargaining Risk There is a risk that the Company does not conduct appropriate social dialogue, which could lead to strikes and production disruptions, and could impact working conditions. This could negatively affect financial performance. / Own operations The topics of health and safety, diversity as well as social dialogue, freedom of association and collective bargaining, which were identified as material in relation to the Company’s own workforce, are addressed in separate sections further below, each containing and describing the policies, actions, targets and metrics specific to the individual topic. Health and safety The Company is primarily engaged in industrial activities, such as the production of aircraft, which may involve some higher-risk activities such as working at heights that can have the potential to cause injury or ill-health to the Company’s workforce. If not managed properly, this also creates the risk to the Company as described in the table above. Consequently, the Company has made occupational health and safety a strategic priority and is determined to continuously drive towards Zero-Harm. The Company’s Zero-Harm aspiration is to enable an environment that is safe and healthy for all, which in turn promotes employee wellbeing and a conscientious risk-aware culture. Health and safety was part of the Company’s 2024 Top Company Objectives and the Lost Time Injury frequency rate forms part of the variable pay calculation for the CEO, Executives and Senior Managers. It has not been deemed necessary to change the fundamental business model of the Company as health and safety impacts can be mitigated through a strong health and safety management system. Building on the above information, people in the Company’s own workforce considered to be potentially materially impacted by health and safety related topics fall into two broad categories; those in tertiary occupations and those in industrial occupations. Those in industrial occupations tend to be potentially exposed to acute hazards that can, for example, include work at height, manual handling and physical agents such as substances. Whereas those in tertiary roles tend to be potentially exposed to more chronic hazards such as sedentary working and display screen equipment ergonomics. For more detail on characteristics of employees and non-employees please refer to section “– 6.3.2.6 Characteristics of the undertaking’s employees (S1-6)”. As mentioned above, industrial operations tend to involve some activities that have a higher-risk of injury, which leads to a structural risk of workers being impacted in individual incidents. The risks faced by those in tertiary roles are less systemic. Work activity risk assessments are carried out that identify those at risk, including any particularly vulnerable populations due to the nature of their occupation as explained above. Diversity and inclusion The Company’s commitment to workforce diversity and inclusion is directly aligned with its strategic goals of fostering an inclusive work environment that reflects global company values. Despite significant efforts, there is a risk that some diversity initiatives may not meet Company, evolving societal and employee expectations. This potential gap between the Company’s strategic ambitions and its execution could result in a disengaged workforce and hinder recruitment, particularly in today's markets where diversity is a critical factor for employer attractiveness. This could impact business models, as a less engaged workforce may negatively affect productivity and innovation, crucial to maintaining the Company’s competitive advantage. As part of the Company’s strategic response, targeted inclusion initiatives are designed to support underrepresented groups ensuring their concerns are integrated into broader risk management efforts. The identified diversity-related material risk Airbus SE/ Report of the Board of Directors 2024 211
primarily relates to underrepresented groups as a whole, including women, ethnic minorities, LGBT+ individuals, older employees, and workers with disabilities. These groups may face increased risks of disengagement, limited career progression, or exclusion from leadership roles if diversity and inclusion efforts are not adequately prioritised. Social Dialogue The Company’s success relies on effective social dialogue, freedom of association, and collective bargaining. Poor management of these areas can lead to employee disengagement, production disruptions, and negatively impact financial performance. By addressing this risk, the Company can enhance employee loyalty and morale, reduce the likelihood of industrial actions, and ensure smoother transitions during periods of operational or organisational change, all of which are crucial to maintaining its business model’s effectiveness and continuity. For social dialogue-related risk, all employees within the Company’s own workforce are concerned. The scope of this disclosure includes the Company’s own workforce. 6.3.2.2 Interests and views of stakeholders (ESRS 2 SBM-2) For information about the consideration of interests and views of stakeholders, including Company’s own workforce, please refer to section “– 6.1.1.3.2 SBM-2: Interests and views of stakeholders”. 6.3.2.3 Own workforce Policies (S1-1) Human Resources Airbus Company Policy The overarching Human Resources Airbus Company Policy provides employees with the description of the core values, mission, vision and top level initiatives for HR management, in accordance with the Company’s mid-term strategic planning and external requirements, and is also aligned with the Company's commitment to the International Framework Agreement (IFA). This policy outlines the employment and organisational framework aimed at creating an attractive and safe working environment for employees. The policy focuses on engaging, inclusive, and high-performing leadership with a strong emphasis on employee development. It promotes an engaging workplace through regular collection of employee feedback and acting upon it, with a particular focus on Inclusion & Diversity in talent acquisition, development, and retention. The policy also aims to prevent ethics and compliance risks by fostering a culture of integrity and encouraging employees to speak up. Competitive remuneration and working schemes are highlighted, along with strong collaboration with social partners in all these aspects. The policy is applicable to all Company’s employees worldwide, including in its controlled affiliates. The Chief Human Resources & Workplace Officer is accountable for implementing the commitments under this policy. HR teams work together across the Company and geographical boundaries to support regional activities and adapt to business needs. The policy builds on several third-party standards and initiatives, including the ILO Convention C111 on discrimination, the UN Women's Empowerment Principles, the LGBT+ Charter with L'Autre Cercle Association, and the Women in Aviation and Aerospace Charter. The policy is published on the Company’s Business Management System and publicly available for all employees worldwide. The implementation of the policy is monitored through mechanisms established also in the Company Business Management System and implemented in all functions, such as the process to Manage Company Performance, including the definition of objectives, regular performance reviews and execution of corrective actions in case of deviations from target. Guided by this policy, the Company’s workforce is managed by the Human Resources (HR) function. Their activities and missions notably include social dialogue, health and safety, inclusion and diversity, strategic workforce planning, people development, performance management and competence assessment, training and mobility management, and compensation and benefits amongst others. The process for engaging with Company’s own workforce will be detailed under section “– 6.3.2.4 Processes for engaging with own workers and workers’ representatives”. Airbus SE/ Report of the Board of Directors 2024 212
6.3.2.4 Processes for engaging with own workers and workers’ representatives about impacts (S1-2) In line with the HR Policy statement of caring about the voice of its people and to regularly seek feedback to act upon, the Company engages directly with its workforce through a survey called “my Working Environment” (“MWE”) every two years sent directly to all individual employees in order to score their view on various dimensions: Airbus values (Reliability, Customer Focus, Creativity, We are One & Teamwork, Integrity) Engagement Leadership & strategy Change & communication Employer brand & attractiveness Health & Safety Wellbeing Performance & recognition Inclusion & diversity Sustainability Digitalisation & agility Key figures Unit 2019 2021 2023 Number of recipients* who participated in survey Heads 86,573 89,270 96,807 % of recipients that participated in survey % 64% 66% 62% * Survey was sent to the Active Workforce as well as trainees, apprentices and working students. Employee panels representing the entire workforce interpret the survey results, which are then shared with the Executive Committee, Board of Directors, and social partners through established governance bodies like the European Works Council. These stakeholders collaborate to define top-level priorities and action plans. Senior leaders in different business areas receive insights into feedback specific to their domains and are encouraged to develop tailored action plans. Regular communication about the survey results and subsequent actions is disseminated to all employees, highlighting both positive aspects and areas needing improvement. The evolution of MWE results is monitored over time to track progress and identify trends. A dedicated team within the Human Resources function oversees the process, with the Chief HR & Workplace Officer responsible for implementing the action plans. In addition, as outlined in the HR policy, there is transparent and trustful social dialogue established at site, country and European level, giving worker representatives the opportunity to regularly address existing or potential impacts on workers in the Company’s own workforce, including vulnerable groups such as colleagues living with disabilities (see section “– 6.3.2.9 Social dialogue, freedom of association, and collective bargaining”). 6.3.2.5 Processes to remediate negative impacts and channels for own workers to raise concerns (S1-3) The Company has established social dialogue at different levels of the company, as outlined more in detail in the corresponding chapter (“– 6.3.2.9 Social dialogue, freedom of association, and collective bargaining). Every employee of the Company is invited to raise potential concerns about negative impacts to their manager, HR or Ethics & Compliance representatives, either directly or anonymously through the OpenLine available to all on the Company's website. Please refer to section “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)” for more information on: processes through which the Company supports the availability of such channels in the workplace; how the Company tracks and monitors issues raised and addressed; whether and how the Company assesses that people in its own workforce are aware of, and trust, these structures or processes as a way to raise their concerns; and what the Company does to protect those who raise concerns. Airbus SE/ Report of the Board of Directors 2024 213
In addition, as part of the Company’s commitment to conduct ongoing human rights due diligence, social assessments focused on human and labour rights are conducted by a third party service provider to check adherence to the Company’s human rights commitments and applicable law on Company’s sites. Any findings are shared with the site’s management team (or at the Company’s level if the finding relates to company-wide actions) and action plans for addressing the findings are agreed. This includes appropriate remediation and integration of feedback from lessons learned, such as repeated findings which may require root cause analysis and systematic changes including policies or processes. See Step 2 in “– section 6.1.1.2.4 GOV-4: Statement on due diligence” for more details. In the case of work-related injury or ill-health involving material harm to the Company’s own workforce, the Company may provide or support medical or other remediation. For insights on how the Company manages remediation more broadly across its own workforce and its value chain workers, see section “– 6.3.3.5 Processes to remediate negative impacts and channels for value chain workers to raise concerns (S2-3)” where this process is detailed. 6.3.2.6 Characteristics of the undertaking’s employees (S1-6) The Company manages its workforce data in an HR digital tool company wide and it is managed in heads and Full Time Equivalents (“FTEs”). The information provided herein is in heads (i.e. 1 employee = 1 head) with the actuals at the end of the reporting period on 31 December 2024, except for employee turnover that covers the full year period. In the Sustainability Statement, “employees” or “employees as per CSRD” means both active employees as well as those who are non-active due to leave of absence, i.e. sickness, parental leave, early retirement, etc. Trainees and apprentices are not part of the regular active workforce but their numbers are included in the “employees as per CSRD” figures disclosed below. In contrast, the number of employees used internally by the Company and disclosed in the Company’s financial statements corresponds to the number of active employees in consolidated companies with permanent and with temporary contracts (Active Workforce, or “AWF”). To enable comparison, a table can be found below showing “Employees” as defined by the CSRD versus as defined per the Financial Statements. Employees - 2024 Unit Employees as per CSRD Heads 171,830 as per Financial Statements Heads 156,921 Employees as per CSRD - head count by gender - 2024 Unit Employees as per CSRD Male Heads 135,222 Female Heads 36,565 Other 1 Heads 12 Not disclosed Heads 31 Total Heads 171,830 1 “Other” includes “Non binary” Employees as per CSRD - head count per country (1) - 2024 Unit Employees as per CSRD France Heads 59,327 Germany Heads 59,241 1 In line with CSRD requirements, this table only displays countries with more than 10% of total employees. As of 31 December 2024 the Company’s regular workforce, active and non-active, amounted to figures provided in the first line of table 2024 “Employees as per CSRD” breakdown per contract type. The Company continued to grow its workforce in 2023 and 2024 confirming the strong aerospace industry recovery, enabling the Company to accomplish its recruitment plan with a particular focus on new skills, diversity and generational renewal. The breakdown of the Company's “employees as per CSRD” by business segment and geographical area, including the percentage of part-time employees, is displayed below. Airbus SE/ Report of the Board of Directors 2024 214
“Employees as per CSRD” by contract type Unit Female Male Other Not disclosed Total Number of employees Heads 36,565 135,222 12 31 171,830 Number of permanent employees Heads 33,547 125,258 6 28 158,839 Number of temporary employees Heads 781 3,866 - - 4,647 Number of trainees Heads 519 1,054 4 2 1,579 Number of apprentices Heads 1,500 4,703 2 1 6,206 Number of working students Heads 218 341 - - 559 Number of non-guaranteed hours employees Heads - - - - - Number of full-time employees Heads 32,434 132,126 12 29 164,601 Number of part-time employees Heads 4,131 3,096 - 2 7,229 “Employees as per CSRD” by contract type and region Unit Asia Pacific Australia & New Zealand Core Countries Europe Non Core India Latin America Middle East & Africa North America Total Number of employees Heads 2,894 998 145,203 4,735 3,663 1,420 2,151 10,766 171,830 Number of permanent employees Heads 2,154 908 135,433 3,930 3,553 1,268 1,219 10,374 158,839 Number of temporary employees Heads 638 64 2,255 564 35 17 918 156 4,647 Number of trainees Heads 86 15 1,043 117 73 131 1 113 1,579 Number of apprentices Heads 16 11 5,913 124 2 4 13 123 6,206 Number of working students Heads - - 559 - - - - - 559 Number of non-guaranteed hours employees Heads - - - - - - - - - Number of full-time employees Heads 2,885 967 138,228 4,553 3,663 1,413 2,151 10,741 164,601 Number of part-time employees Heads 9 31 6,975 182 - 7 - 25 7,229 Employee Turnover Unit 2024 Leavers - as per CSRD definition Heads 12,152 Attrition rate - as per CSRD definition % 7.2% Leavers - as per Company definition Heads 6,484 Attrition rate - as per Company definition % 4.2% The attrition rate as per CSRD definition takes into account all employees whose contract has been terminated, regardless if they are being replaced or not. The contract termination reasons can be voluntary resignation, involuntary leave (lay offs), retirement, other (like death in service) as well as the end of temporary contract, trainee contract and apprentice contract. This rate is calculated with the total number of leavers as described above for a given period divided by the average total employee headcount for the same period. The average total employee headcount for a year is using the end of each month actuals i.e. average of 12 numbers for a year. Employees who have started a passive phase of the pre-retirement (specific to France, Germany and Spain) are included in the non-active workforce as they are still in the employment relationship with the Company. These employees are accounted for in the denominator as for the rest of the non-active workforce, i.e. the annual turnover rate is calculated:            ℎ     × 100 The attrition rate as per Company definition, includes the Active Workforce with permanent and temporary (limited) contracts including partial retirements. It excludes employees on trainee and apprentice contracts. This attrition rate is therefore comparable to the one disclosed in previous years within the Non Financial Statements. Airbus SE/ Report of the Board of Directors 2024 215
6.3.2.7 Health and Safety The Company maintains its commitment to put the occupational health and safety (“OHS”) of its employees and others at the forefront of its activities, striving for Zero-Harm. With this in mind it is with great sadness that the Company reports two fatal accidents involving contractors working on Company’s sites in 2024. In February a construction worker, employed by a sub-contractor of the main contractor, suffered a fatal accident in Mobile, Alabama. In December a construction worker employed by the main contractor was involved in a fatal accident during construction work in Tunis. The Company offers sincere condolences to their families, friends and colleagues. The development and performance of the Company safety management framework is led from the top. The Company Occupational Health and Safety Governance Board, chaired by the Chief Human Resources & Workplace Officer, provides oversight and health and safety indicators are addressed in regular management performance reviews. The work on lost time injury reduction continues to be underpinned by the monthly meeting of the Company Incident Review Panel. The role of this panel is described in the Function Organisation Manual, and involves monitoring OHS incident data quality and accuracy to ensure consistency and harmonisation as well as alignment with the Company’s documented method for accident management. Its members include the Heads of the entity EHS teams, chaired by the Company Head of Operational Environment, Health & Safety (“EHS”) and Facilities Management & Real Estate (“FMRE”). The panel is driving quality improvements in the categorisation and description of data captured both in the global EHS management tool FISH, (Federated Information for environment, Safety & Health), and, outside current FISH coverage, in local systems. This in turn improves analytical capability. In 2024, the EHS organisation was revised, bringing the Centres of Expertise together in one group and amalgamating other relevant topics in a Performance & Improvement team. This new, more efficient organisational structure continues to deliver the governance, methods and technical advice that enable the operational teams to define procedures that implement the Company Occupational Health and Safety Policy. 6.3.2.7.1 Policies (S1-1) The Company is committed to protecting people and reducing both physical and mental health risks through its Occupational Health and Safety Policy. This policy describes the Zero-Harm aspiration for health and safety management and culture, setting out the guiding principles for decision making. The policy enables employees to understand the importance of the topic and demonstrates leadership commitment to its continual improvement. It integrates health and safety into the Company's culture, strategy, processes and decision-making, harmonising company-wide philosophy and practice. The policy is signed by the CEO and is accessible to the Company´s own workforce via the Company intranet, with a policy statement signed by the CEO available on the Company’s external web pages. Copies are freely available to interested parties upon request. Company’s Executives and managers receive a copy during health and safety leadership training, including the Executive EHS Masterclass. Applicable to the Company´s own workforce, including controlled affiliates, as well as contractors on Company managed worksites, the policy considered the views of the EHS leadership team, who take the feedback from sources such as performance reviews and the People Safety @ Work, We Care and Safe Together initiatives, anticipating the needs of internal interested parties. Formal processes will be developed for considering the needs of both internal and external interested parties as the health and safety management system evolves. Policy oversight is led by the Chief Human Resources & Workplace Officer, supported by the Company Head of EHS & FMRE, who has day-to-day accountability for performance and compliance. The Company has defined its policy so as to align its health and safety management system with the principles of ISO 45001. Some parts of the business are already certified as compliant to the ISO Standard. The policy is enhanced by a Company Directive, ‘Requirements for the Health and Safety Management System’, and topic specific ‘method’ and ‘governance support’ (guidance) documents. The Company health and safety Directive lists high level requirements for the whole management system that echo the requirements of ISO 45001. These requirements are allocated to the relevant business areas, which respond with documented evidence that they have put in place appropriate means to deliver compliance. Method documents set out more detailed instructions on how to fulfil a particular element of the management system such as risk assessment, accident management and contractors working on the Company’s premises. Their aim is a harmonised approach that ensures consistently high standards, but with sufficient flexibility to allow for local compliance needs. This approach is designed to secure the identification and evaluation of risks and impacts, including those particular Airbus SE/ Report of the Board of Directors 2024 216
to vulnerable populations such as expectant mothers, and the development of appropriate mitigation plans, either at the local level or, for very significant issues, within the Company’s ERM system. It includes consideration of the necessary organisation, resources, information, training, systems, and equipment, with a particular focus on employee competence for high hazard activities. This preventative approach reduces the risk of accidents and non-conformities. There have been no significant changes to the policy in 2024, as its commitments and principles are considered fundamental to good health and safety management. 6.3.2.7.2 Actions and resources (S1-4) The Company invests significant effort in health (including wellbeing), and safety risk management systems, practices and culture (for the purposes of health and safety, ‘risk’ includes the potential ‘impacts’ for people as well as the associated financial risks for the company and others, thus the actions described below address both risks and impacts to people). The Company has technical experts covering a wide range of disciplines including health, safety, industrial hygiene, ergonomics and data analytics. Key Figure 2024 Number of experts supporting Company’s action plan more than 250 Mainly located at the principal industrial facilities, these experts and their colleagues form the function led by the Company Head of Operational EHS & FMRE. They are complemented by dedicated professionals located in discrete parts of the organisation, who liaise closely with the EHS function. The EHS function is organised as a central shared resource and operational teams, which provide and implement a harmonised management framework. This organisation is documented in the Function Organisation Manual, which due to the changes made this year is under review. The Company has implemented a range of actions to enhance safety awareness and engagement among its own workforce to foster a positive safety culture and intervention habits, and ensure effective risk control with the ultimate objective of mitigating identified impacts and related risks. A harmonised approach to risk identification and management is provided by the ‘Method for Health and Safety Related Risk Assessment and Control’, coupled with the ‘Method for Health and Safety Incident Reporting and Management in FISH’. This company risk assessment method applies the general principles of risk identification, ranking and mitigation, and is designed to enable a consistent estimation of risk. Accident investigations may also provide valuable information that supports the risk assessment process and which may be communicated through the EHS function using a system of Flash Alerts. This process ensures that work-related hazards are identified, the risks they present are evaluated, and appropriate mitigation action plans are put in place and tracked by local management teams. Major project risks, such as from construction, are considered as part of the project management process and managed within the project. Entities manage their risks at the local level unless their technical complexity or their potential human, cost and compliance impacts, including when aggregated across more than one entity, warrant a more coordinated approach. Such risks are evaluated by the EHS Leadership Team with the EHS Risk Officer, and those that are deemed significant are escalated into the Company Enterprise Risk Management (ERM) process, with EHS Leadership team oversight. Ultimately, the success of mitigation activity is reflected in the injury frequency rate (see section “– 6.3.2.7.4 Metrics (S1-14)”) for more details). The ERM process for Health & Safety is included in an annex of the ‘ERM Plan for Human Resources’, which adheres to the ISO 31000 Standard for Risk Management. This process is applied to risks that have been escalated or those identified by, for example, company audits or incident analysis and root causes. Risks and their associated mitigation plans are recorded on the ERM Active Risk Manager database and are managed in accordance with the ERM process, which requires regular reviews at function and Executive levels. The OHS topics currently being managed within the ERM process include the following actions in particular. Unless target dates are specified, these action areas are ongoing parts of the long term commitment to continuous improvement. Success will be measured over the coming years in incident rate and risk reduction terms. As such, the resources for these ongoing activities are included in the business or EHS Function operational budget, (which is below the threshold considered to be significant for this statement), and the need for significant additional resources, whether human or technical, is not anticipated. Airbus SE/ Report of the Board of Directors 2024 217
a) In situ contractors health and safety management For the purposes of EHS, in situ contractors are workers from suppliers that carry out work at the Company’s sites; this does not include the Company’s non-employees. Whilst processes exist that deliver a formal joint approach to managing health and safety with in situ contractors, the possible outcomes of accidents involving contracted activities can be severe and could affect the Company’s employees, non-employees and other workers. The Company is determined to improve its in situ contractor management processes to further reduce this risk. An analysis of incidents and the contracting process flow has been carried out, engaging Procurement, Physical Security, Facilities Management, Industrial Means, the People Safety @ Work initiative and others. The company method for ‘Supplier and Contractor Health and Safety Management’, was reviewed in 2023 and re-published in January 2024. An awareness programme has been conducted for the EHS and Procurement functions. Dedicated training is being developed for the Company Representatives who manage in situ contractors, which will be deployed in H1-2025. The health and safety Directive requires processes to ensure health and safety conformity in the selection of in situ contractors, and procurement processes have been enhanced by the continued deployment of evidence-based desktop sustainability maturity assessments (SMA) via a dedicated third party service provider as part of the Company's due diligence process (see section S2-4 for more details). The local operational EHS procedures reflect the company method for contractor health and safety management and compliance with local regulatory obligations. The EHS Centre of Expertise is mapping the local implementation of the method for ‘Supplier and Contractor Health and Safety Management’ requirements. On top of this, the Company provides relevant health, safety and welfare information appropriate to the site and the activities of the in situ contractors concerned. This ongoing local awareness provision is part of the exchange of safety information that fulfills prevention planning needs. The FISH tool has been enabled to record reports of in situ contractors accidents, in preparation for future reporting obligations. On-site contractor safety management audits have commenced. The expected outcome of this activity is a reduction in the risk of injury and material damage linked to on-site contractor activity, thus future performance indicators may include contractor accidents. b) Action to address the risk of non-compliance following regulatory or industrial changes Legacy issues may have been caused by historical factors such as weaknesses in the ability to anticipate and support changes of industrial activity or legislation, leading to a risk of non-compliance, injury or ill health. Mitigation action has involved defining and agreeing a roadmap and the associated human and financial resources to support the recovery of compliant systems. This plan has been deployed in relevant areas in France, Germany and Spain and is now complete or progressing as planned with a target to complete by the end of 2025. c) EHS ownership, culture and competence EHS ownership and safety culture reinforcement is continued by ‘People Safety @ Work’, ‘We Care’ and the ‘Safe Together’ initiatives. These focus on raising awareness and working directly with employees to engage them as influential stakeholders in the health and safety risk management process. Information is communicated by cascade through the line manager hierarchy, campaigns on Airbus TV, posters and accident data boards at various industrial sites. Employees and their representatives are involved in Go-Look-See tours and the People Safety @ Work initiatives, including activities to collect lessons learned resulting from accidents and Near Misses. Within the commercial aircraft perimeter the "People Safety @ Work" initiative has included several key actions in 2024: a Safety Awards Ceremony for risk improvement initiatives (March), a Prevention, Intervention and Compliance Team Talk (May), and a harmonised safety induction for all joiners and movers (November). These actions are part of the ongoing effort to continuously improve standards of EHS performance and culture, with success measured over years in terms of incident reduction. Similar activities are undertaken in Airbus Helicopters and Airbus Defence and Space by the Safe Together and WeCare initiatives. Competence and learning is the foundation of maintaining a culture of high standards in EHS, and this long-term activity reflects the Company’s commitment to continuous improvement. The Company is consequently updating and refreshing its Executive EHS Masterclass, in order to ensure Executives are fully aware of the importance of putting EHS at the heart of their thinking and strategy. This update is expected to be completed early in 2025 The EHS Function has established a Health and Safety Competence & Learning Board to prioritise and oversee the provision and content of EHS learning. This work includes the development and pilot testing of a Refresher module for the Airbus SE/ Report of the Board of Directors 2024 218
EHS Foundation Certificate, scheduled for a broader roll-out in 2025. The scope of this learning activity encompasses the entire Company. Progress of learning activities are monitored by the leadership teams of the business functions concerned, whilst the Competence & Learning Board monitors the implementation of the H&S competence strategy. This structured approach maintains momentum, while keeping the initiatives for new and revised training on track and ensuring that any necessary adjustments can be made in a timely manner. Ultimately this ongoing activity is designed to deliver enhanced competence that drives a reduction of the incident rate. d) Hazardous Substances - health and safety impacts management The use of hazardous substances gives rise to a potential risk in relation to failures of exposure monitoring or local risk control measures. The possible effects could include work related ill health, increased legal and operating costs, and consequent production interruptions. Beyond defined existing operating procedures, work equipment and training aiming to protect the workers concerned, the mitigation plan includes an anticipatory approach. It formalises European Union and national regulatory watch processes (initially in the EU but with a generic approach that can be used globally) for hazardous substances, and the modification of certain Central Extraction Systems (CES) to meet requirements of the Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH). To complete these actions an end-to-end standard for chemicals OHS management has been deployed, leaving only a longer term action related to setting up a new substances review committee in Spain, which will be completed in 2025. A company-wide site by site review of compliance and deviations against the end-to-end chemicals process in the core countries did not identify any compliance gaps, but some deviation from Company process was found in Airbus and the divisions. To address these deviations, a roadmap has been launched with site specific actions in two waves across 2024 and 2025. e) Digital solutions for occupational health management The Company's own workforce is provided with occupational health support, in some cases as a control measure, for example to monitor potential exposure to a physical agent such as noise. Current occupational health management software tools are becoming obsolete as the suppliers become unable to maintain reliable solutions. While possible alternatives are comprehensively evaluated against strict data security requirements, there is a possibility that current software ceases to function or must be retired before a replacement is put in place. This could result in loss of accreditation to operate in-house medical services, meaning external services would have to be used, with associated cost and disruption. Mitigation planning activity found that a harmonised solution could not be considered due to the significant complexity of the varying national requirements. Currently France and the UK are most at risk and consequently projects have been launched there to identify and migrate to suitable alternatives, which are expected to be completed in early 2025. f) Employee health and psycho-social wellbeing The Company is conscious that the mental health and wellbeing of its own workforce can be adversely impacted by a wide range of factors, many of which may not be work related. For example, psycho-social wellbeing can be affected by personal factors such as family or financial problems, as well as job related issues. Whatever the causes, the resultant stress may lead to absenteeism or presenteeism (disengagement at work), with consequent impacts on the individual, other workers and the business. The wellbeing strategy developed in previous years has raised awareness, led to the creation of a network of mental health focal points, and initiated work to define a psycho-social risk assessment process. In 2024 a global wellbeing initiative was delivered in the form of an online advice and assistance programme. The service incorporates an assistance helpline, currently only for employees and their loved ones, which covers areas of the organisation not covered by the previously existing helplines. The Occupational Health teams continue to offer the various counselling or psychological support services that have been in place for some years for own workforce, but these are now supplemented by the new online service. Additionally, the Company continues to raise awareness of health issues, with campaigns that address topics beyond the workplace, such as cardio-vascular issues, colorectal cancer, sleeping disorders, smoking cessation and disability awareness. These efforts aim to improve health and wellbeing, prevent serious ill health and help to reduce absenteeism. Occupational health services are provided for employees and non-employees, either in-house or through external providers. In cases where dedicated service provision is challenging, national health resources may be utilised. Airbus SE/ Report of the Board of Directors 2024 219
g) Compliance assurance Compliance assurance activity includes a range of monitoring processes, such as audits, which may be conducted by Corporate Audit, the EHS Function or external organisations; Internal Control, which, by periodically applying ‘Key Controls’, targets specific risks throughout the Company; and local inspections carried out by the businesses. In 2024, the Company EHS Compliance Assurance team performed all planned internal audits, addressing contractor safety management, risk management, and regulatory monitoring. Key figure Unit 2024 Number of internal audits planned and performed by the EHS Compliance Assurance team No. 5 The recommendations from the 2023 audit of the company Method for Incident Reporting and Management in FISH, conducted in Germany and France, have been successfully closed. Additionally, the first H&S internal control campaign has been launched, scrutinising the accuracy of the calculation of the Company Lost Time Injury Frequency Rate, the protection of medical records, and contractor safety management. In 2024, three ‘affiliate’ companies had H&S ‘FIT Checks’ (internal checks against predetermined criteria) conducted on them, and the EHS Function followed up on recommendations from the previous year's FIT-checks. Monitoring will persist in 2025 with further internal audits and the launch of a second H&S internal control campaign, which will include new Key Controls based on relevant risks. This ongoing monitoring is further enhanced by safety tours as well as ‘Go-Look-See’ and Gemba activities (targeted safety walks by managers and others) supported by the ‘People Safety @ Work’, ‘We Care’, and ‘Safe Together’ initiatives. In addition, local EHS teams commission audits to monitor their compliance with local regulatory requirements and international standards. The EHS function's compliance assurance activities have a Company-wide scope and are an integral part of the ongoing effort to continuously improve performance. Whilst it is difficult to measure their individual impact, there is no doubt that they contribute to the improvement of risk management and the resulting reduction in the accident rate. For more information on how the effectiveness of actions taken is tracked, refer to section section “– 6.3.2.7.3 Targets (S1-5)”. 6.3.2.7.3 Targets (S1-5) To reflect its commitment to continually improving health and safety standards in the Company OHS Policy, section “– 6.3.2.7.1 Policies (S1-1)” and elsewhere, the Company has set itself an internal key performance indicator (KPI) based on the number of Lost Time Injury (“LTI”) accidents of its own workforce. This is the rate of LTI’s per one million hours worked, and is called the Lost Time Injury Frequency Rate 1 (“FR1”). Each year annual targets are set for this KPI in Airbus and the two divisions , which are monitored and reported. The annual FR1 targets are a percentage reduction, based on the previous year's actual end of year data. Annual FR1 targets are proposed by the Company Head of EHS & FMRE and validated by members of the Executive Committee. Health and safety target Unit 2024 Target 2024 Target % vs 2023 Baseline 2024 Performance 2023 Baseline Airbus FR1 LTI / 1M hours (1) 1.95 -15% -31% 2.31 Airbus Helicopters FR1 0.9 -10% 11% 0.99 Airbus Defence & Space FR1 1.09 -15% -49% 1.28 Scope: own workforce in the relevant perimeter Assumptions: see “metrics” section hereafter (1) LTI = Lost Time Injuries. 1M hrs = 1 million hours worked. For more details see section “- 6.3.2.7.4 Metrics (S1-14)” below. The performance against target is tracked and reported by the H&S Performance & Improvement team. Executive level and, within their perimeter, site and function level performance review meetings monitor these metrics, and the OHS Governance Board discusses performance trends. Employees are informed of the FR1 performance via the management communication cascade. Local rates are communicated by the People Safety @ Work teams, who also engage employees as they support the various business areas in reviewing and responding to the safety issues that influence their performance, (see “– 6.3.2.7.2 Actions and resources (S1-4)”, point “c”). The Company Incident Review Panel ensures the accuracy and completeness of accident data for this KPI by checking all lost time injury reports each month. While workers representatives were not directly involved in the setting of the target, Airbus SE/ Report of the Board of Directors 2024 220
stakeholder involvement is achieved by informing the SEWC of the targets and communicating performance as part of the company information cascades via the management hierarchy. The methodologies for the metrics used in 2024 are the same as those used in 2023. Since February, Airbus has consistently advanced toward its 2024 year-end safety goal, showing steady month-over-month improvements. This positive trend was evident in Airbus Defence and Space, which also successfully achieved its year-end target. Although Airbus Helicopters concluded the year above its end-of-year target rate, driven largely by integration of the customer centres into the figures, its absolute performance remains at a solid level. 6.3.2.7.4 Metrics (S1-14) Health & safety metrics Unit 2024 Governance metrics Employees(*) covered by a formal occupational health and safety management system (1) % 90% ISO 45001 certified management system - entities coverage rate (2) % 19% ISO 45001 certified management system - employee coverage rate (2) % 28% FISH health and safety management platform Employees with direct access to FISH (3) % >84% Employees covered by FISH reporting (including FR1) (3, 4) % >84% Performance metrics Number of work related fatal accidents No. 2 Own workforce No. 0 Other workers on Airbus sites No. 2 Number of work related ill-health fatalities No. 0 Number of work related recordable injury accidents No. 2,645 Rate of work related recordable injury accidents per 1M hrs 10.13 Company FR1 LTI per 1M hrs (5) 1.56 Airbus FR1 LTI per 1M hrs (5) 1.59 Airbus Helicopters FR1 LTI per 1M hrs (5) 1.10 Airbus Defence & Space FR1 LTI per 1M hrs (5) 0.65 Methodology / scope / assumptions for estimates: (1) Based on data collected by questionnaire, for which there was a 75% response rate. Lack of response was treated as a negative response. (2) Based on the scope described in the ISO 45001 certificates held by Company entities. (3) Scope based on the number of registered users amongst employees. (4) Scope based on FISH data plus information from files provided by areas not yet able to input their data directly into FISH. (5) LTI = Lost Time Injuries. 1M hrs = 1 million hours worked. Details in 'Metrics' section. FR1 scope includes some non-consolidated entities. (*) The term “employee” in this table and in footnotes includes Active Workforce only (for definition see section 6.3.2.6 Characteristics of the undertaking’s employees (S1-6)) Airbus and the two Divisions are required to follow the principles of the Airbus Occupational Health & Safety Policy, with management systems tailored to their operational scale and specific risk profiles. Airbus has aligned itself with the ISO 45001 Standard and several entities are already ISO 45001 certified. The Airbus system continues to evolve as components are developed and integrated within the management framework as part of ongoing improvements to health and safety risk management. This approach establishes the foundation for future external ISO 45001 certification of business entities. In parallel, Airbus Helicopters continues to improve its health and safety management systems, aligned with divisional goals. Airbus Defence and Space is working to consolidate its national entity ISO 45001 certificates into a single divisional certificate, to benefit from the cohesion and harmonisation this will bring. To assess the level of coverage of the Company’s occupational health and safety management system, the Company conducted a data collection exercise. Information was provided by Heads of EHS for entities based in the Company’s core countries and belonging to Airbus, Airbus Helicopters and Airbus Defence and Space, defined as “Core entities”. Additionally, a questionnaire was shared with affiliates within the reporting scope of this statement. The Company Incident Review Panel (“CIRP”) monitors data quality and adherence to the definitions found in the Company method for incident management. Top level oversight is provided by the Company Occupational Health and Safety Governance Board. In order to efficiently facilitate the capture of complex safety and environmental data, enable analysis, Airbus SE/ Report of the Board of Directors 2024 221
reporting and communication, and provide a harmonising management system platform, the Company has implemented a common software tool called FISH. The global deployment of this management platform continues (see rate in the table above) The deployment of this major component supports the estimated coverage of the occupational health and safety management system as a whole. The Company measures safety performance using a Company specific indicator for the frequency rate of Lost Time Injuries, called the Airbus FR1 (see Target section above). It is important to note that this indicator is obtained from data sets that are produced by collecting a common set of data points from each Company’s entity. The data are derived by applying the same Key Performance Indicator (KPI) definitions in all entities, which enables the Company to compare performance over time, and between business segments. However this data equivalency means that the harmonised definitions exclude some categories of accident that are reported to the local authorities in some jurisdictions but not in others. The CIRP considers such exclusions in its discussions. Commuting accidents, for example, are legally reportable in some countries but not in others, so they are not included in the FR1 calculation. The FR1 calculation produces a figure for the number of own workforce lost-time injuries per one million (1,000,000) worked hours. The scope of the Company FR1 covers: all sites in France, Germany, UK and Spain for the Company’s commercial aircraft business, Airbus Helicopters, Airbus Defence and Space; the Company’s commercial aircraft Final Assembly Lines (FAL’s) in Mobile, US and in Tianjin, China; Airbus Defence and Space site in Poland; the consolidated data from the Airbus Helicopters sites in USA, Romania, Mexico, Canada; sites across the Company´s three operating segments in Brazil, Japan, Australia, Ireland, Italy, Poland, China and, newly added in 2024, Chile, Hungary, Saudi Arabia, South Africa and the APAC region; the consolidated data from the Airbus Atlantic sites in Canada, Morocco, Portugal and Tunisia. The Company’s commercial aircraft business FR1 perimeter covers: all commercial aircraft sites in France, Germany, Spain and UK; the commercial aircraft Final Assembly Lines (FAL’s) in Mobile, US and in Tianjin, China Working hours are calculated using time and headcount data from HR systems and direct reports by the major affiliated entities. For the CSRD Recordable Accident rate, estimates are added for affiliates for which only headcount figures are available. The validity of the FR1 calculation is tested by the Company’s EHS Compliance Assurance team using formal processes such as Internal Controls and, in those areas of the Company certified to ISO 45001, by the external audits of the certification bodies. This testing will be extended to other metrics as the EHS compliance assurance systems mature. In entities that are ISO 45001 certified, the management systems, including those parts that monitor performance and selected FR1 data, are tested by certification auditors. The Company will continue to report its own FR1 indicator. In addition it now also publishes the recordable accident frequency rate. For the purposes of this CSRD report, recordable work-related injuries have been defined as all those that have been recognised by a health professional or the local labour authorities, excluding First Aid injuries. Unlike the FR1, this definition captures conditions that are categorised as work-related injury in one country but not in others, such as commuting accidents, and also includes non lost-time injuries, restricted workday and medical treatment cases. Consequently there is a considerable difference in scope between the Company’s FR1 and CSRD frequency rate indicators that renders them non-comparable. It should also be noted that the definition of the CSRD indicator may differ in other organisations and thus it may not offer a direct comparison between different organisations. Finally, there is a distinction in CSRD between categories of worker, with a 2025 phase-in allowed for non-employees and other workers. Due to the complexity of differentiation in global data sets, the Company has applied the phasing for recordable injury rate. Phasing has not been applied to fatalities and all current employee and non-employee work related fatalities would be reported, as well as other workers on the Company’s controlled sites, but excluding individual ill health related cases if data protection required it. The Company does not report cases or other information related to open investigations or ongoing proceedings. Airbus SE/ Report of the Board of Directors 2024 222
6.3.2.8 Diversity At the Company, Inclusion and Diversity (I&D) are driven by three strategic pillars. These focus on fostering an inclusive workplace in accordance with ILO Convention C111 (Discrimination in Employment and Occupation); maintaining a diverse workforce committed to merit-based employment practices while actively promoting inclusive leadership; and ensuring a sustainable impact on communities through partnerships that align with the Company’s values. I&D efforts are focused on ensuring inclusion of all forms of diversity such as but not limited to intergenerational, ethnic, social and cultural diversity, as well as gender equality, LGBT+, neurodiversity and disability. 6.3.2.8.1 Policies (S1-1) Policies described in this section build on the overarching policies previously described (Human Resources Airbus Company Policy, Airbus Company Human Rights Policy, International Framework Agreement, see section “– 6.3.1 Policies”), which cover the topic of diversity and inclusion, as they forbid discrimination and harassment, and formalise the commitment to promote equal opportunities and other ways to advance diversity and inclusion in accordance with ILO convention C111. In addition to the information shared regarding the Airbus Code of Conduct under section “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”, this policy aims to leverage differences to achieve better business outcomes and support professional development for all employees. In particular, several engagements are taken on diversity and inclusion such as the commitment to recruit, select, and develop employees on merit, irrespective of their race, colour, religion, gender, age, sexual orientation, gender identity, marital status, disability, or any other similar status. For further detail on the key contents of the Code of Conduct, its scope, accountability, and stakeholders considerations, please refer to section “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”. The Company is committed to fostering an inclusive and diverse workplace, as outlined in the I&D Guidelines. This policy defines I&D and underscores the company's dedication to these principles through its three strategic pillars. The guidelines introduce several initiatives aimed at creating an inclusive environment. These initiatives are essential for clarifying the Company's commitment to I&D, making it accessible and actionable for all employees. The policy applies to all employees of the Company, ensuring that everyone is aware of and can contribute to the I&D efforts. The I&D team is part of the “DEVELOP Centre of Expertise” within the Human Resources function and represents the Company with regional I&D focal points supporting the implementation of the I&D strategy globally. It is responsible for the effective implementation of these guidelines across the Company. The document serves as a complementary guide to the existing HR Policy, providing clear definitions and a general understanding of I&D. It is readily available to stakeholders through the I&D pages on the Company’s intranet and the resources section, ensuring easy access for all employees. The above-mentioned policy commitments apply to the Company’s own workforce as a whole and there is no need for specific policy commitments to groups of people. The Company has established a comprehensive method for staffing Executive (L3) positions, ensuring a consistent and transparent process across the entire Company including subsidiaries and affiliates, in particular taking into consideration the Company’s gender targets for this population. This method, published in December 2023, outlines the rules for selecting and nominating Executives, ensuring a unified approach to Executive staffing. The policy is applicable to all entities of the Company whenever an Executive position must be staffed. An I&D Advisory Council meets bi-annually and provides top level oversight and input into the I&D strategy, reviews risks or issues raised, provides support on new initiatives, processes or changes to policy and makes appropriate recommendations to the Executive Committee. In addition, local I&D Steering Committees, championed by Senior Managers 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 council. The Steering Committees are supported by a network of diversity business champions embedded in the business, who advocate for an inclusive working environment. The Chief Human Resources & Workplace Officer (“CHRO”) and Heads of HR are accountable for the implementation of this method. The Talent and Executive Management (“TEM”) team is responsible for the Executive staffing process, including headhunting and preparing the selection rationale for the Executive Committee's monthly review. The Executive Committee validates the staffing decisions, and no official communication is made before this validation. The Heads of HR and future supervisors of the Executive position contribute to the candidate selection process by aligning on the job description, providing candidate insights, and participating in interviews. The Reward team is responsible for Airbus SE/ Report of the Board of Directors 2024 223
grading Executive positions and reviewing the position landscape regularly. This method ensures a fair and compliant staffing process. The method is available to stakeholders in the BMS. 6.3.2.8.2 Actions and resources (S1-4) The Company has established a comprehensive Network of Enablers for Inclusion & Diversity, which is deployed and accessible to all employees. This network is composed of Diversity Business Champions across various functions and sites, who support the implementation of the company-wide I&D strategy in alignment with overall strategy, tailored to specific functional needs. Key figure Unit 2024 Number of Diversity Business Champions No. 53 Diversity Business Champions identify specific needs within their functions and implement actions and initiatives in line with the strategy and resources provided by the I&D team.This has resulted in a wider reach with regards to I&D awareness through workshops and other function specific communications. Furthermore a dedicated virtual space allowing for cross functional collaboration and best practice sharing has been created Company-wide. Also a quarterly forum takes place bringing together all Diversity Business Champions Company-wide. Additionally, there are Employee Resource Groups (ERGs) across different sites, focusing on various I&D topics such as Disability, Gender Balance, LGBT+, Neurodiversity, and Inter-Generation as examples. Key figure Unit 2024 Number of Employee Resource Groups No. 14 Methodology: figure as of 31/12/2024 (number varies along the year as ERGs are opened and closed regularly) ERG networks are voluntarily created by employees to address common interests or causes related to I&D, offering initiatives such as awareness sessions, workshops, networking opportunities, and an internal community space for discussion. This initiative is rolled out globally and primarily targets internal employees. Through their volunteer work, these ERGs act as catalysts and enablers of the I&D policy, in particular in fostering inclusive workplaces. The initiative is designed for the long term and is reviewed annually. This year the annual ERG networking event was extended to one week in October bringing together all the ERG Company wide. The MyWay women leadership programme dedicated to women leaders of tomorrow, launched by the Company in 2021, is a strategic initiative aimed at building a robust female talent pipeline for future female leaders worldwide. This twelve-month programme is rolled-out Company-wide and addresses the first level of management. Since its inception, the programme has seen a steady increase in participants. Key figures - MyWay women leadership programme Unit 2024 Annual number of participants Heads 100 Number of years of operation Years 5 Number of talented women trained to date, including the current cohort Heads 420 The Company aims to accelerate female representation in leadership roles across the Company through a dedicated action plan. This plan includes slots in leadership programmes designed to develop leaders from various geographies and functions. This is supported by targeted external actions such as career fairs, communication, and partnerships, as well as internal initiatives like robust succession planning, mentoring, and leadership development. In order to actively support the four sustainability commitments, dedicated training courses on I&D related matters are permanently available to all employees and promoted within the learning catalogue. This Inclusive Leadership initiative focuses on unconscious bias and is broadly deployed across the Company via its internal learning platform. The training aims to create awareness of unconscious bias and its potential impact on employees, particularly in areas such as hiring, development, promotion, and general wellbeing. The training was launched in 2021 and was part of the mandatory learning plan for all employees. This initiative is a key component of the Company´s strategy to foster a culture of inclusivity. Inclusive leadership and specific unconscious bias training exist in over a number of modules in the eLearning catalogue which have been deployed across the Company and available in different languages as applicable. Further, inclusive leadership and unconscious bias is embedded in management trainings such as the MBLF - Management basics and Airbus SE/ Report of the Board of Directors 2024 224
leadership foundations; other in-person workshops such as the more recent Diversity Fresco also provide a channel to create more awareness on unconscious bias. Key figures Unit 2024 Number of modules on inclusive leadership and specific unconscious bias in the eLearning catalogue No. 21 Number of workshops on the Diversity Fresco in the year No. 54 Methodology: a module offered in multiple languages is only counted once The Company has implemented mentorship programmes through partnerships with external associations to promote gender and social diversity. Partner associations include Elles Bougent, Capital Filles, ISAE-SUPAERO (all France), Wings of Wonder (India) and Flying Women (Spain) for gender balance, and Nos Quartiers ont des Talents, Alliance pour l'éducation, Les entreprises pour la cité, and Article 1 for social diversity. These initiatives aim to mentor young girls, women, graduates, and non-graduates from underserved and rural areas, guiding them towards fulfilling careers and inspiring them to pursue Science, Technology, Engineering and Mathematics (STEM) fields. This effort is part of the Company’s long-term strategy to enhance gender diversity and create a sustainable impact. The programmes are geographically focused on France, Spain, and India. As a result, the Company has been able to have regular cohorts of mentorships with several hundreds of young women taking part annually. These initiatives support the three I&D strategic pillars of the Company, in particular ensuring a sustainable impact on communities through partnerships that align with the Company’s values. The mentorship programmes are conducted over an academic year or longer, depending on individual cases, with Company’s employees serving as mentors. Additionally, personal development workshops are provided by Company coaches to support the mentees' growth. All of these actions are ongoing and embedded in the Company’s usual operations. 6.3.2.8.3 Targets (S1-5) An annual process is led by the Company Performance Management team to define, in collaboration with all functions and involving the divisional Performance Management teams, the Company’s Top Company Objectives and specific targets for a given year, validated by the CEO and the Company’s Executive Committee. With regards to People, to address the material impact of Inclusion & Diversity at company level, a specific Top Company Objective has been set for gender diversity with regards to external hirings for the past few years, which continued to be in place for 2024. The Company is committed to fostering an inclusive and high-performing leadership by setting ambitious gender diversity targets. Starting in 2024, the Company has differentiated the target along white- and blue-collars, which was not the case in the past (ie: in 2023 one single target of 20% for the combined population). 2024 targets were set as shown in the table below and aim to increase the number of women within the Active Workforce. The level of ambition of these targets shall be considered in view of the current gender gap in the aerospace industry (see table below), particularly in STEM and technical fields. These are annual targets. Key figure 2024 Proportion of women in the aerospace industry Less than 20% These Company-wide targets are applicable worldwide and encompass all consolidated entities. The target setting for gender diversity has been presented to and validated by all heads of HR through the Executive Human Resource Committee (EHRC). The objectives take into consideration the 2023 end-of-year results, with a year-on-year improvement target in light of the labour market situation outlined above. Performance against these targets is monitored via a monthly review with the CHRO. The time period for these targets is annual and recurring. The Company is committed to enhancing gender diversity within its Executive management positions. The Company has set a target to increase representation of women in these roles by 2025 (see table below). This target was established based on the baseline data from 2021 and aims for an ambitious year-on-year increase, focusing on both external hiring and the development of the internal pipeline. The target setting for gender diversity was presented to and validated by all heads of HR through the EHRC. Performance towards this target is monitored via a monthly review with the CHRO. The own workforce’s representatives are not engaged directly in setting and tracking performance against the targets nor in identifying lessons or improvements as a result of the Company’s performance, but they are appropriately informed through the different committees at national and international level. Airbus SE/ Report of the Board of Directors 2024 225
Own workforce targets and performance Gender diversity Unit Target year Target value 2024 value Women external hire - white collar % 2024 33% 30% Women external hire - blue collar % 2024 12% 12% Women in Executive management positions % 2025 25% 22% Scope: Company-wide Assumptions: see "– 6.3.2.6 Characteristics of the undertaking's employees (S1-6)" The Company applied some new methods to boost female attraction towards blue collar jobs in 2024 (e.g. Open Days, in the Final Assembly Lines and plants, for unemployed women), which have demonstrated positive impact and resulted in achieving the Blue Collar target. Despite remaining below target in the white collar and Executive perimeter, an increase was observed compared to the previous year, which confirms progressive improvement year-on-year and emphasises the need to continue setting ambitious, yet realistic targets going forward. 6.3.2.8.4 Metrics (S1-9) The metric illustrates the distribution of employees across the organisation by gender and age. The data is sourced from the digital HR database, which contains information on all employees of the Company. This data is utilised to analyse trends and distributions by gender and age over time and to compare them with established objectives. In this section, data is disclosed for both active employees and those who are non-active due to leave of absence, such as sickness, parental leave, or early retirement. However, targets are established solely for the Active Workforce. The Company defines top management as Executives which mean up to three levels below from CEO, internally defined as “band III” and above. Employee gender distribution at top management level Unit 2024 Female Heads 220 Male Heads 783 Other Heads - Not disclosed Heads - Total Heads 1,003 Employee breakdown per age Unit 2024 <30 years old Heads 27,934 30-50 years old Heads 98,948 >50 years old Heads 44,948 Airbus SE/ Report of the Board of Directors 2024 226
6.3.2.9 Social dialogue, freedom of association, and collective bargaining 6.3.2.9.1 Policies (S1-1) The Company has a long tradition of making employee relations and social dialogue a priority and, therefore, their continuous evolution and improvement are embedded in the Company’s Human Resources strategy, supporting the Company’s business challenges and the sustainability roadmap. Regular social dialogue is ensured at global, European and local levels, in line with ILO requirements and local legislation. Policies previously described (Human Resources Airbus Company Policy, Airbus Company Human Rights Policy, International Framework Agreement, and the Code of Conduct, see sections “– 6.3.1 Policies” and “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”), cover the topic of collective bargaining and social dialogue. Employee relations are underpinned by the Company commitments made in the Company’s Code of Conduct and International Framework Agreement, signed in 2005. For further detail on the key contents of the policies, its scope, accountability, and stakeholders considerations, please refer to sections “– 6.3.1 Policies” and “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”. 6.3.2.9.2 Actions and resources (S1-4) The Company social dialogue includes discussions about the identification and mitigation of risks inherent to the Company’s activities with regards to human rights, environment and health & safety. In cases of restructuring or business relationship termination that would have a significant impact for the Company, the Company strives to limit as much as possible the negative impacts on its workforce and considers employment as a priority. As an illustration, the 2021 COVID-19 adaptation plan resulted in the signature of various collective agreements by the main unions and 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. The Company has established a continuous social dialogue at the European level through the Airbus SE Works Council (SEWC), in accordance with European regulation No. 2157/2001 and Directive 2001/86/EC, both dated 8 October 2001, which pertain to the statute of the European Company (SE) and the involvement of employees. This initiative aims to foster mutual understanding and collaboration of transnational solutions, which are subsequently reflected at the national level. In 2024, the main focus has been on preserving global social dialogue, supporting major employee representatives elections, addressing Company transformation projects as well as informing and consulting about employment, working conditions and sustainability. Some of the subjects discussed were the Commercial Aircraft transformation, Company strategy, competence and resources management, artificial intelligence, Airbus cyber strategy, company reorganisations, and business updates. Countries involved in this initiative include France, Germany, Spain, the UK, Poland, and Romania. Key figures Unit 2024 2023 Number of meetings planned with the SE Works Council No. 4 4 Number of meetings conducted with the SE Works Council No. 6 5 The Company has established the yearly Airbus Global Forum (AGF) to enhance social dialogue beyond the European Economic Area (EEA). The objective of AGF is to establish and to foster exchange of information and dialogue between Airbus SE Management and employee representatives from the main countries where the Company significantly operates and which thus mirror its global footprint. During 2024, the social dialogue continued in the regions based on local exchanges between the management team and employee representatives. For example, with the recent legislative reforms across the Asia-Pacific (APAC) region in 2024, maintaining open channels for social dialogue between parties remains more important than ever. In APAC, countries such as South Korea, Thailand and Taiwan continued to leverage Welfare Committees as platforms to enhance collaboration between employee representatives and management. These committees play a pivotal role in bridging communication gaps, fostering mutual understanding, and supporting progressive workplace relations. In Singapore, the interaction between Airbus Helicopters Southeast Asia Pte Ltd and the Singapore industry union has remained a key focus, with efforts directed toward deepening collaboration and building a sustainable, long-term relationship. Ultimately, fostering an environment that promotes open and constructive dialogue is essential to developing resilient and inclusive workplaces in an ever-evolving Airbus SE/ Report of the Board of Directors 2024 227
regulatory landscape. The AGF is typically held annually, contingent on the prevailing political and economic conditions, with the most recent session conducted in 2024. The AGF includes selected members from the SEWC committee, along with representatives from regions such as Africa and Middle East, China, Latin America, Asia-Pacific, and North America. The subjects discussed encompass ethics, the Corporate Sustainability Reporting Directive (CSRD), and business updates outside the founding countries (France, Germany, Spain, United Kingdom). During 2024, the Company continued its commitment to fostering social dialogue at both national and local levels. Meetings were held according to local requirements, facilitating exchanges between the management team and employee representatives. The dialogue was developed locally throughout the year in accordance with the agreed planning and the needs to ensure collaboration and good activity. The outcome of the dialogue with social partners at all these levels is an enhanced communication and collaboration within the organisation fostering enhanced understanding by employees at all levels. All the actions mentioned are planned to mitigate risk and ensure the Company’s success relies on effective social dialogue, freedom of association, and collective bargaining. All of these actions are ongoing and embedded in the Company’s usual operations. 6.3.2.9.3 Targets (S1-5) The ambition of those involved in social dialogue is to have a collaborative and constructive dialogue and thus build trustful relationships with social partners to enable smooth implementation of projects and avoid any material disruption which could result from an action of the social partners. The Company has not set any measurable outcome-oriented targets for the specified actions. However, the Company tracks the effectiveness of its policies and actions in relation to material sustainability-related impacts, risks, and opportunities for social dialogue by ensuring the dialogue continuity through respectful, open and timely forums. 6.3.2.9.4 Metrics (S1-8) The metrics below demonstrates the percentage of employees that are covered by collective bargaining agreements within the EEA and out of the EEA as well as the percentage of employees covered by Social Dialogue within the EEA (for countries with more than 50 employees and representing more than 10% of the total employees). The data reflects actual figures (not estimated or extrapolated in relation to information within the European Economic Area (EEA). This data is obtained by cross-referencing the number of employees within each entity in every country/region with their respective coverage status concerning collective bargaining agreements and worker representation. For the Collective Bargaining coverage in the regions (outside France, Germany, Spain and the United Kingdom), the data provided represents actual figures for more than 99% of employees. The less than 1% remaining were estimated with the conservative assumption that they are not covered by collective bargaining agreements. The Company has the following agreements in place: “Agreement on the Airbus SE-Works Council and its derived Divisions European Committees reached between Airbus SE and the European Negotiating Group” and the “International Framework Agreement” between the Company and the European Works Council. Key figure Unit 2024 % of total employees covered by collective bargaining agreements % 91% Own workforce Collective bargain and Social Dialogue Coverage Rate Collective bargaining coverage Social Dialogue Employees EEA countries Employees non-EEA regions Workplace representation (EEA only) 0-19% - Asia Pacific India - 20-39% - - - 40-59% - North America - 60-79% - - - 80-100% France Germany Australia & New Zealand Europe non-EEA (incl. UK) Latin America Middle East & Africa France Germany Note: Spain (80-100%) represents less than 10% of the employees and is therefore not included in the table above. Airbus SE/ Report of the Board of Directors 2024 228
6.3.3 ESRS S2 - Workers in the value chain 6.3.3.1 Workers in the value chain IROs While 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 (see “– 6.1.1.3.1 SBM-1: Strategy, business model and value chain”). The Company's value chain, which includes suppliers and sub-tier suppliers, operates in a diverse global context. Systemic issues of work-related rights may potentially exist, to the extent the Company’s sourcing footprint includes countries and regions with differing labour standards and potentially varying levels of labour law enforcement, as well as certain activities or commodities, such as the sourcing of raw materials. In addition, as certain industrial operations at some supplier sites tend to involve some higher-risk activities, such as working at heights, there is a structural risk of workers being impacted. Ensuring respect for human rights in the Company’s upstream activities is primarily supported by the Procurement Sustainability team which drives key actions in the frame of the Sustainable Supply Chain Roadmap. Building on the DMA process described under section ”– 6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs” the following IROs were identified for workers in the value chain: ESRS (sub-)topic Impact, risk or opportunity Description Time horizon Location in the value chain ESRS S2 Workers in the value chain Other work-related rights: > Child Labour Potential negative impact The use of child labour in the upstream supply chain, including in sourcing raw materials, may result in harm for the physical and/or mental health of the concerned children. Short-term and mid-term Upstream ESRS S2 Workers in the value chain Other work-related rights: > Forced labour Potential negative impact The use of forced labour in the upstream supply chain, including in situ contractors, may result in harm for the physical and/or mental health of the concerned worker. Short-term and mid-term Upstream including in situ contractors ESRS S2 Workers in the value chain Working conditions: > Health and Safety Potential negative impact Unidentified weaknesses in due diligence and health and safety management measures could result in the use of suppliers that have inadequate occupational health and safety management measures potentially causing injury or ill-health from the work environment, processes or activities. Short-term and mid-term Upstream including in situ contractors The Company is committed to identifying and addressing its salient issues, including the potential material impacts mentioned above, through ongoing monitoring of actual or potential internal and external adverse impacts, including within its supply chain, and engagement with key internal and external stakeholders. Taking into account that salient issues may change over time due to internal and external influences, the Company is committed to reviewing them on a regular basis. This includes an annual review to identify any new issues that may need prioritisation, a comprehensive and more in depth review conducted every three years and ad hoc assessments as required. The methodology used by the Company for identifying its salient issues is based on the UNGPs and includes an assessment of actual or potential adverse impacts in terms of severity (scope, scale, irremediability), likelihood, relationship and level of influence to inform prioritisation. The results of this analysis are reviewed by both internal and external stakeholders, prior to final validation at Executive Committee level. All identified salient issues, including their associated potential adverse impacts, are recorded through the ERM system and governance follows a similar process as the one existing for the Company’s top company risks. For example, sponsorship of each salient issue is at Executive Committee level with nominated salient issue owners who have responsibility to develop and implement action plans as well as setting measures of effectiveness. Reporting on the progress of actions to the Executive Committee is conducted at least once per year, including during the ERM presentation of top company risks as well as through relevant steering committees and other Risk & Opportunity Boards at functional and divisional level. For further information on current and anticipated effects of workers in the value chain-related impacts, risks and opportunities on the Company’s business model, value chain, strategy and decision-making, and the actions to address them, refer to section “– 6.3.3.6 Taking action on material impacts on value chain workers, and approaches to managing material risks and Airbus SE/ Report of the Board of Directors 2024 229
pursuing material opportunities related to value chain workers, and effectiveness of those action (S2-4)”. For the current financial effects on financial positions, refer to section “– 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model”. Through the salient issue identification process, the Company has developed an understanding of how workers with particular characteristics, those working in particular contexts, or those undertaking particular activities may be at higher risk of harm. This analysis took into account publicly available indices supporting the identification of geographies or commodities or nature of activities where there may be higher risk, including related to health and safety and/or child/forced labour. From that analysis, dimensions and characteristics that appeared relevant for the Company as differentiating factors for workers in the value chain to be potentially more impacted are identified as follows: Forced labour: supply chain workers, including in situ contractors, particularly migrant workers (both foreign and domestic). Security and cleaning services as commodities, are considered particularly at risk of forced labour. Child labour: supply chain workers, particularly those engaged in the sourcing of raw materials. Health and safety: supply chain workers, including in situ contractors. No other dimensions or characteristics have been identified as salient by the Company, included related to workers in downstream value chain or in the operations of joint ventures. For each of these potential adverse impacts, the Company prioritises high risk countries and activities through the application of a risk-based analysis of both the supplier’s geographical location and nature of their activity using publicly available indices. For more details, see section “– 6.3.3.6 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions (S2-4)”. 6.3.3.2 ESRS 2 SBM-2 Interests and views of stakeholders For information about the consideration of interests and views of stakeholders, including workers in the value chain, please refer to section “– 6.1.1.3.2 SBM-2: Interests and views of stakeholders”. 6.3.3.3 Policies related to value chain workers (S2-1) A Human Rights Core Team, made up of multi-divisional and multi-functional representatives from throughout the Company, drives the main actions of the Human Rights Roadmap, including in relation to its identified salient issues which address impacts across the value chain. Due to the transverse nature of human rights topics, various functions are responsible for managing compliance with the relevant commitments outlined within the Company Human Rights Policy and developing measures to support implementation, including the assignment of roles and responsibilities within their own organisation and provision of resources to conduct risk-based due diligence. In addition, the Company’s Sustainable Supply Chain Roadmap, led by the Procurement function, brings together actions on human rights, the environment and health & safety, focusing on workers in the value chain. Its actions are built around three key principles: supplier commitment, supplier assessment, and supplier engagement and development (See “– 6.3.3.6 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those action (S2-4)” for further details). Below are the main policies covering material impacts on workers in the value chain: Human Rights Policy and IFA See section “– 6.3.1 Policies” Supplier Code of Conduct The Company requires that all business shall be conducted by suppliers in compliance with applicable law and regulations as well as the principles of the Airbus Supplier Code of Conduct (“SCoC”), which is the document of reference for the Company’s responsible supplier management. The SCoC is based on the International Forum on Business Ethics (IFBEC) Model Code of Conduct and integrates company-wide values and principles, in line with internationally recognised standards and conventions such as UNGPs, OECD and the ILO. Airbus SE/ Report of the Board of Directors 2024 230
All suppliers are asked to sign a confirmation of commitment with the principles of the SCoC (or to confirm that their own practices are aligned) and to cascade these principles throughout their own supply chains. It is a mandatory commitment for any supplier participating in an Airbus call for tender. The SCoC is endorsed by the Procurement Leadership team, including the Chief Procurement Officer for Airbus, the Head of Procurement, Supply Chain & Logistics for Airbus Defence and Space and the Strategic Procurement Executive Vice President for Airbus Helicopters and the Head of Group General Procurement. The SCoC is available on the Airbus website, including on the “Be an Airbus Supplier” section. As defined in the SCoC, suppliers are expected to establish an appropriate health and safety management system (e.g. ISO 45001 or equivalent). In addition, the Company maintains a zero-tolerance approach to forced and child labour and requires that suppliers comply with relevant international standards, including the ILO Conventions on Forced Labour and Child Labour. Suppliers are also expected to implement due diligence processes to detect, prevent, and address potential impacts including related to health and safety, forced and child labour and broader human rights commitments and to apply remediation of any identified adverse impacts. The SCoC also formally requires suppliers to comply with applicable laws and regulations on conflict minerals, including any 3TG (tin, tungsten, tantalum and gold) conflict minerals, and establish a policy and a management system to ensure responsible material sourcing, in line with the Company’s Responsible mineral policy published on its website. Indeed some minerals including 3TG are necessary for the proper functioning of components within its products; the Company directly imports minerals in extremely low volumes, however such minerals are found in certain products the Company procures. The Company monitors adherence to the commitments and expectations of the SCoC through ongoing due diligence to identify and mitigate or prevent any adverse impacts related to its activities including in relation to workers in the value chain. This approach is aligned with the OECD Due Diligence Guidance for Responsible Business Conduct and is further detailed in section “– 6.3.3.6 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those action (S2-4)”. The process for engaging with the Company´s value chain workers about material impacts is detailed below under section “– 6.3.3.4 Processes for engaging with value chain workers about impacts (S2-2)”. 6.3.3.4 Processes for engaging with value chain workers about impacts (S2-2) Engaging with stakeholders and ensuring their interests, views and rights are taken into account, helps the Company make informed decisions based on an improved understanding of any impacts it may cause, contribute to or be directly linked with. The Company’s current engagement with value chain workers is primarily conducted based on identified potential or actual impacts, through ‘credible proxies’, or through third-party assessments conducted on its supplier sites or on its own sites (including in situ contractors), which systematically includes worker interviews (see section “– 6.3.3.6 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those action (S2-4)” and section “– 6.3.3.7 Targets related to material negative impacts, advancing positive impacts, and managing material risks and opportunities (S2-5)”.for further details). Topics reviewed during the assessments align with the Company’s human rights commitments (which take into account international standards and principles) and the expectations defined in the Airbus Supplier Code of Conduct, as well as applicable law. They include checks related to indicators of forced labour and child labour, including paid recruitment fees, retained id, worker age, working hours, remuneration, and safe working environment. The Company is directly informed of any findings in order to take the appropriate action with the supplier as well as, where appropriate, an analysis of any trends and how such findings may inform its business strategy going forward. Workers in the value chain can also raise concerns via the Airbus OpenLine. In terms of operational responsibility for ensuring that this engagement happens, targets for the Company´s supplier assessments are included in the 2024 objectives of the Company's Chief Procurement Officer and cascaded through the Procurement Organisation. In addition, sponsored by the CSO and Chief Human Resources Officer (CHRO), the Company undertakes assessments on its own sites and has related targets (see section “– 6.3.3.7 Targets related to material negative impacts, advancing positive impacts, and managing material risks and opportunities (S2-5)”). This assessment includes in situ contractors. Airbus SE/ Report of the Board of Directors 2024 231
The Company's risk-based approach for due diligence and exchanges with third party experts on these matters enable the Company to get insightful perspectives on potentially more vulnerable workers as well as on the relevance of its overall due diligence process, including about ways of engaging with value chain workers. 6.3.3.5 Processes to remediate negative impacts and channels for value chain workers to raise concerns (S2-3) The Company is committed to promoting open and trusting dialogue with workers in the value chain, including through the Airbus OpenLine available to all stakeholders. The Airbus OpenLine is available both online and through a dedicated telephone number and provides a confidential way for anybody connected to its business activities to report a concern, including related to human rights such as forced labour, child labour and health and safety. A concern can be reported anonymously in all locations where legally permissible. If an alert is received through OpenLine, the Company commits to acknowledge receipt of the report within seven days. All alerts of concern are handled by professional investigators with the assistance of subject matter experts where required (see section “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”). Details of OpenLine are available on the front page of the Company website, including on the 'contact us’ section. They are also communicated to suppliers through the Airbus Supplier Code of Conduct. The Company also aims to ensure that in situ contractors are aware of its processes for raising concerns by embedding communication channels within its operations. Although the Company raises awareness of the available procedures for addressing any grievances, it does not have a dedicated process to determine whether value chain workers are aware of and trust such structures and processes. The Company is committed to protect anyone from retaliation, direct or indirect, towards anyone who raises questions or concerns in good faith or assists in investigations of suspected violations. The Company’s non-retaliation principles are defined in a specific policy which provides a comprehensive guide on preventing, detecting and remedying retaliation (see also section “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”). Knowing that the risk of retaliation is heightened during investigations, it is the responsibility of the investigator to pay special attention to the risk of retaliation and they, among other things, must communicate the Company’s policy regarding non-retaliation to any reporter. Protection from retaliation is also noted as a key principle in the Airbus OpenLine policy and the Company's internal Method for Investigation of Compliance Allegations. For more information on the OpenLine, see section “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”. A multi-functional team, including members from Legal & Compliance, the Human Rights Roadmap and the Procurement Sustainability teams, are updated on a regular basis on any new alerts or findings resulting from its due diligence activities which require action, as well as the progress and outcome of key investigations. Any investigations include engagement and involvement of impacted rights holders and other stakeholders as required. If the Company identifies (including through investigations or other means), that it has caused or contributed to an actual adverse impact within its own operations, supply chain or other third party business relationship through its business activities, it will endeavour to address such impacts by providing for or cooperating in appropriate remediation. This includes seeking to restore the affected person or persons to the situation they would be in had the adverse impact not occurred (where possible) and enable remediation that is proportionate to the significance and scale of the adverse impact, including in cooperation with relevant stakeholders. 6.3.3.6 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those action (S2-4) Due Diligence related to the Company's upstream activities During 2024, the Company continued to strengthen its risk-based human rights due diligence taking into account the OECD Due Diligence Guidance for Responsible Business Conduct. This due diligence is intended to support the Company to check adherence to applicable law and international human rights standards and principles, and identify, cease, prevent / mitigate Airbus SE/ Report of the Board of Directors 2024 232
and remediate human rights risks, including across its supply chain and own operations, including workers in the value chain 14 . Actual and potential adverse impacts identification in Company’s supply chain As described in section “– GOV-4: Statement on due diligence, Step 2: Identify actual and potential adverse impacts” the Company conducts due diligence in its supply chain, which is an ongoing, iterative and progressively in-depth process. This includes identifying and addressing actual and potential adverse impacts. The scope of this action covers the Company’s supply chain, with different processes and means deployed depending on the nature of the contractual relationship with suppliers, including prioritisation based on those sectors and locations deemed to be more risky (see details in section “– GOV-4: Statement on due diligence”). Specifically, more in-depth assessment means described below are primarily targeting Tier-1 suppliers of the Company’s three operating segments. The table below illustrates the percentage of the sourcing volume (2022 baseline) as well as the total number of the Company’s identified highest risk suppliers (based on an analysis of geographical and activity risk using public indices) having undergone a third party evidence-based desktop Sustainability Maturity Assessment (“SMA”). This includes suppliers who had undertaken an SMA through a sectoral approach developed with the International Aerospace Environmental Group (IAEG) (see section “– 6.1.1.2.4 GOV-4: Statement on due diligence”). In addition to the SMA, other types of actions are launched to mitigate risky suppliers (see below and “– 6.3.3.7 Targets related to material negative impacts, advancing positive impacts, and managing material risks and opportunities (S2-5)”). The results of an SMA, or any sustainability alert, may also lead the Company to request an on-site assessment at a particular supplier site in a determined time frame. See table below for the number of assessments performed. Key figures Unit 2024 Sourcing volume having undergone an SMA % 86% Number of highest risk suppliers having undergone an SMA No. 305 Number of on-site assessments conducted on supplier sites No. 50 Addressing actual impacts identified through due diligence The Company’s due diligence efforts undertaken during 2024 did not identify any findings related to child labour. However, the Company identified indicators of forced labour and health & safety concerns. Details follow: Following a third party onsite audit triggered by a visit to a supplier site, indicators of forced labour were found on a supplier site in Southeast Asia. This included allegations of worker-paid recruitment fees and excessive working hours. Since identification, the Company has been working with the supplier to clarify the alleged findings, including with the support of external stakeholders to support guidance and worker interviews. Following positive collaborative discussions with the supplier, all findings are in the process of being closed and the Company is following up closely and supporting the supplier in this respect. Whilst the additional worker interviews clarified that no worker-paid recruitment fees were required to be repaid, remedial actions undertaken by the supplier include strengthening its policies, processes and guidance related to worker-paid recruitment fees and working hours in consideration of international labour standards. The findings will be formally closed following a third party closure audit. Potential or existing health & safety impacts on in-situ contractors are covered in sections “– 6.3.2 Own workforce". The Company has no known formally-reported events in the rest of its upstream and downstream value chain that would qualify as severe human rights issues or incidents. Actions to cease, mitigate or prevent adverse impacts During 2024, in line with its commitment to respect human rights, the Company continued to develop action plans relating to ceasing, mitigating or preventing actual or potential adverse impacts related to workers in the value chain. The Company will continue to progress actions during 2025. See details below: Mitigating the risk of forced labour. The Company continued to monitor sites in its higher risk countries in particular for indicators of forced labour, and to develop actions related to mitigating the risk of forced labour on its own sites, 14 whilst all Company suppliers, including suppliers of the Company’s controlled affiliates, are part of its supply chain due diligence (onboarding, ad hoc and informal alert reporting), currently only Tier-1 suppliers of core entities are covered through the sustainability questionnaire, Sustainability Maturity Assessment (SMA) and risk-based supplier analysis. Airbus SE/ Report of the Board of Directors 2024 233
through in situ contractors, and on supplier sites. This includes actions to review and strengthen policies and processes throughout the procurement process, including at the onboarding stage for in situ contractors, and monitoring. This activity is focused on high risk activities such as cleaning, security and catering in high risk countries for forced labour based on publicly available indices. In addition, the Company has produced an internal Forced Labour Toolkit to support identification of indicators and steps for prevention of forced labour, as well as introducing a workshop focused on identifying human rights impacts - both of which are primarily aimed at exposed buyers and supply chain quality managers. Mitigating risks of child labour related to sourcing of raw materials. During 2024, the Company continued to deepen its understanding of the potential human rights impacts related to its sourcing of raw materials, which are also of particular relevance in its transition to decarbonisation. The objective of this ongoing action is to prioritise the materials (minerals and metals) used in the Company's products which are identified as high risks for human rights, including for child and forced labour, and health & safety. Once identified, the Company aims to review appropriate actions to either cease, prevent or mitigate such risks. Mitigating health and safety risks: for health and safety actions related to Workers in the Value Chain (in situ contractors), see section “– 6.3.2.7.2 Actions and resources (S1-4)" under ESRS S1 - Own workforce. In the context of the due diligence efforts undertaken in 2024, health and safety concerns were also identified by on site assessments of four suppliers located in Germany, Brazil and Malaysia. These included fire alarms not present throughout the facility, emergency evacuation exits blocked, building permits missing and electrical risks. Following the corrective action plan defined by the third party provider, the suppliers have been notified and appropriate remediation actions requested. The Company is following up closely to ensure the implementation of corresponding mitigation actions and the findings will be formally closed following a third party closure audit. Stakeholder engagement and collaboration Engaging with stakeholders helps the Company make informed decisions based on an improved understanding of the expectations of society. See section “– 6.1.1.2.4 GOV-4: Statement on due diligence, Step 4: Stakeholder engagement and collaboration”. Tracking and assessing effectiveness of actions The Company considers that, as well as being good management practice, tracking and measuring the effectiveness of its engagement with workers in the value chain, including through the definition and setting of key performance indicators (KPIs) and targets, is a key success factor in helping to achieve its human rights and environmental ambitions. See section “– 6.1.1.2.4 GOV-4: Statement on due diligence, Step 4: Track & measure effectiveness”. Providing and enabling remedy For more information on the Company’s processes to provide or enable remedy in the event of material negative impacts, refer to section “– 6.3.3.5 Processes to remediate negative impacts and channels for value chain workers to raise concerns (S2-3)”. The Company has put in place a number of actions to ensure processes for remedying material negative impacts on value chain workers are available and effective in their implementation and outcome (see section “– 6.3.3.5 Processes to remediate negative impacts and channels for value chain workers to raise concerns (S2-3)”): Improving accessibility to grievance mechanisms: the Airbus OpenLine is available on the front page of Airbus.com, including through the ‘contact us’ section. In addition, the Company is currently reviewing and updating OpenLine to support accessibility of value chain workers operating in high risk countries for forced labour, such as availability in additional languages, including Bangali, Nepali, Malay, Urdu and Hindi. This includes protecting workers from retaliation for reporting concerns in good faith. The application of remedy is overseen by various functions, including the Procurement Sustainability Team for workers in the value chain. Engaging with suppliers and contractors, including through third parties such as civil society organisations, to ensure effective remedy is applied. This includes satisfactory closure of findings via third party closure audits if required. A tracking system to monitor the handling and resolution of grievances and findings, including appropriate remediation and closure. Ensuring timely and appropriate action to address root causes and prevent recurrence. Regular review of processes and outcomes to support continuous improvement. Airbus SE/ Report of the Board of Directors 2024 234
If required, any issues may be escalated to the Procurement Leadership Team and ultimately to the Corporate Third Party Compliance Committee, which includes representatives at Executive Committee level, who may take decisions between identified impacts and business pressures. All of these actions are embedded in the Company’s usual operations. 6.3.3.7 Targets related to material negative impacts, advancing positive impacts, and managing material risks and opportunities (S2-5) As detailed further above, the Company has identified on-site social assessments in its own operations and that of its suppliers in addition to supplier Sustainability Maturity Assessments as key means to identify, prevent and reduce potential impacts on workers in the supply chain; it has consequently established related targets to monitor their proper deployment over time. Social assessments conducted on the Company's own sites, including value chain workers Workers in value chain performance Social Assessments Unit Target Year Target Value 2024 value Assessment of all Company sites, including controlled affiliates with more than 100 employees, for human and labour rights, since 2020 % 2026 100% 70% Number of annual on-site social assessments performed No. 2024 15 15 Number of assessments performed since 2020 No. 69 Scope: The scope of this target includes the Company’s own sites and in situ contractors. Countries of sites assessed in 2024: Spain, Germany, France, UK, Portugal, Poland, Hungary, Tunisia, Romania, Thailand, Taiwan and the USA Methodology and assumptions: The baseline for these social assessments is based on 2020 data. There have been no changes in the target and corresponding metrics or underlying measurement methodologies, significant assumptions, limitations, sources and adopted processes to collect data versus 2023. 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 Internal Controls Self Assessment (“ICSA”) process. Relevant legislation was also taken into account. Number of identified high risk suppliers sites, covered by at least one dedicated action Workers in value chain performance High Risk suppliers Unit Target Year Target Value 2024 value 2024 vs target Number of risky supplier sites covered by at least one dedicated action No. 2024 300 305 +1.7% The Company has set a target to ensure that its most risky supplier sites are covered by at least one dedicated action (previously the target was expressed as a percentage of most risky suppliers having undergone a sustainability assessment), see table above. This can include undertaking a Sustainability Maturity Assessment conducted by a third party service provider, an on-site assessment or other targeted action. This target is part of the Company's broader efforts to assess the maturity of its suppliers, particularly in respect to human rights. The scope of this target is based on the most risky suppliers identified using risk-based analysis of both the supplier’s geographical location and nature of their activity using publicly available indices. This inherent risk mapping is performed on Tier-1 suppliers, excluding those of affiliates and subsidiaries. This risk assessment started in 2022 although the baseline and methodology have been reviewed and upgraded in 2023. No stakeholders (including value chain workers) were involved in setting any of the above mentioned targets. There is no direct engagement with workers in the value chain, their legitimate representatives, or with credible proxies to track the Company’s performance against the set targets nor to identify lessons learned or improvements as a result of the Company’s performance. Airbus SE/ Report of the Board of Directors 2024 235
6.3.4 ESRS S4 - Consumers and end-users 6.3.4.1 Consumers and end-users IROs The Company has identified aircraft passengers and flight crews as the main end-users of its products that may be materially impacted. The consideration of their interests in the frame of the IRO described below is included in the broader “Aviation Safety” topic. As per International Civil Aviation Organization (ICAO) Annex 19, aviation safety is defined as “the state in which risks associated with aviation activities, related to, or in direct support of the operation of aircraft, are reduced and controlled to an acceptable level.” (Source: ICAO Annex 19) The following IROs were identified for consumers and end-users: ESRS (sub-)topic Impact, risk or opportunity Description Time horizon Location in the value chain ESRS S-4 Consumers and end-users Personal safety of consumers and/or end users: > Health and safety referred to as Aviation Safety Potential negative impact An accident associated with the operation of an aircraft may result in fatal or serious injury for those on board the concerned flight (flight crew, passengers). Short-term, mid-term and long-term Down stream Risk In addition to the impact described above, there is a risk that an aircraft accident may have a negative effect on the public’s or regulators’ perception of the safety of a given class of aircraft, a given airline, a form of design of aircraft or of air traffic management. This could damage its reputation and negatively affect the Company’s financial performance. - 6.3.4.2 ESRS 2 SBM-2 – Interests and views of stakeholders For information about the consideration of interests and views of stakeholders, including consumers and end-users, please refer to section “– 6.1.1.3.2 SBM-2: Interests and views of stakeholders” 6.3.4.3 ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Aviation-safety related IROs are related to the use of the Company's products see section “– 6.1.1.3.3 SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model”. Taking into account stakeholders’ expectations, including those from stringent related applicable regulations and from the constant dialogue with airworthiness authorities (see hereafter) and customers - that are all three considered credible proxies to represent end-users' views, interests and rights -, aviation safety is a critical consideration in any concerned business decisions across many business dimensions, ranging for instance from product design to support to manufacturing or aircraft in-operations. As a foundation of the Company’s business model, aviation safety across the Company aims at ensuring that each aircraft is safely designed and manufactured. Going beyond the Company's perimeter of responsibilities, the Company’s safety strategy also aims at influencing external stakeholders to further reinforce the safety of operations and at air transport system level. The Airbus Safety Management System (SMS), described in section “– 6.3.4.2 Policies related to consumers and end-users (S4-1)”, is an holistic approach, applicable to the Company’s three operating segments, which encompasses technical factors, human factors and organisational factors that contribute to overall aircraft accident prevention. As such, aviation safety related IROs are fully embedded into the Company’s business model. Aviation Safety is continuously reinforced as everyone’s business, in particular through the core safety values promoted in the Airbus Code of Conduct. Potential negative material impacts on end-users are related to potential incidents or accidents in the use phase of its products, which would impact any person on board (e.g. passenger, crew member) of the concerned flight in a similar manner. As such, there are no material risks and opportunities arising from impacts and dependencies on consumers and end-users linked to specific groups. As described in the IROs, the Company established a strong correlation between aviation safety-related impact and risk, both triggered by the same potential events. Airbus SE/ Report of the Board of Directors 2024 236
Key figure Fatal accident rate (10-year moving average (per million flights) at industry wide level) 2024 value Fourth generation commercial aircraft 0.04 Methodology: 10-year moving average fatal accident rate (per million flights) per aircraft generation at industry wide level. All the Company’s fly-by-wire family aircraft (including A320, A330/A340, A380, A350, A220 fleets) correspond to the latest fourth-generation aircraft. This data is based on publicly available data from ICAO and Cirium. 6.3.4.4 Policies related to consumers and end-users (S4-1) To support the Company vision for safety: “We constantly strive to enhance safety together in our quest to reach zero accidents”, the Aviation Safety Company Policy covers the entire product lifecycle (from early design, production to in-service operation). The Company’s aviation safety strategy aims to ensure that: appropriate programmes are implemented to continuously enhance the safety culture within the Company; means are provided so that any employee can report safety concerns and be listened to; aviation safety is a priority in decision making; and lessons learned and best practices are shared with internal and external stakeholders, and take action as appropriate also based on identified top safety threats or opportunities. The policy clearly sets the intended safety culture (core values and mission), mid-term vision, and associated top level initiatives/objectives. It ultimately provides the employees with aviation safety objectives. This policy is applicable to all employees within Airbus, Airbus Defence and Space and Airbus Helicopters, and targets the safety of all populations referenced in the ICAO Annex 13, therefore including passengers and flight crews. The Airbus Company Human Rights Policy includes a commitment to do its utmost to ensure that aviation safety is never compromised. For further information about the policy and the international standards and principles it takes into account, see section“– 6.3.1 Policies”. Accountability and governance At Company level, the Head of Corporate Aviation Safety governance for all business segments is accountable for ensuring the SMS consistency and coordination across the Company, notably through the common safety policy. He reports to the CEO. Operational safety accountability - in particular for products (e.g. helicopters) - is kept at business level (e.g. Airbus Helicopters). For the Commercial Aircraft business segment, the Head of Aviation Safety is accountable for the corporate SMS and aviation safety overall activities. He reports directly to the CEO of Commercial Aircraft, and chairs the Product Safety Board (PSB), which includes several Executive Committee members and senior executives. The PSB ensures proactive safety decision-making on corporate safety topics through multidisciplinary assessments at the highest decision level of the Company. Additionally, the Head of Aviation Safety performs biyearly safety reviews at Board of Directors’ level. Airbus Safety Management System (“SMS”) Consistent with ICAO Annex 19, the Company’s Corporate 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. Their role is to ensure implementation and operation of the SMS in their relevant organisation. Regulatory Compliance Product certifications are provided by the competent aviation authorities including the main civil aviation authorities and specific military authorities. Within each business segment, and according to their respective functions, the Company works to ensure compliance through: Airbus SE/ Report of the Board of Directors 2024 237
design and certification of products under European Union Aviation Safety Agency (EASA) Part 21 Subpart J Design Organisation Approvals (DOA); ECSS-Q ST-40-C (for space products) and Def-Stan 00-56 (for defence products); manufacturing under EASA Part 21 Subpart G Production Organisation Approvals (POA); monitoring of in-service safety through approved EASA Part-M Continuing Airworthiness Management and EASA Part-CAMO Continuing Airworthiness Management Organisations (CAMO); aircraft maintenance and retrofit operations conducted in line with civil and military under EASA Part 145 Maintenance Organisations Approvals (MOA); 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 and by the Internal Control to ensure compliance with regulatory requirements. Additional audits are conducted by third parties as part of the quality certifications appropriate to Airbus and the two Divisions, including EN9100, EN9001, EN9110, AQAP 2110, AQAP 2210 and AQAP 2310. Commitment to Just and Fair Culture for aviation safety and quality 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 signature of the CEO, Executive Committee members and top management of Airbus and the two Divisions. These commitments are attached to the Airbus Aviation Safety Company Policy. Consideration of passengers as end-users is facilitated through proxies such as airlines and airworthiness authorities, with which the Company is in constant dialogue, see section “– 6.3.4.3 Process for engaging with consumers and end-users (S4-2)” for more information. The Aviation Safety Company Policy is accessible to all employees of the Company via the Business Management System (BMS). The policy was defined in order to continuously reinforce prevention of aircraft incidents and accidents, as per the aviation safety vision to reach zero accidents. In addition, this policy is also compliant with applicable aviation safety regulatory requirements, including EASA requirements for SMS, that aim to set global safety standards for aviation and therefore consider end-users’ health and safety interests as a priority focus. For more information on the approach with regards to measures to provide and/or enable remedy for human rights impacts, refer to section “– 6.3.4.4 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns (S4-3)”. 6.3.4.5 Processes for engaging with consumers and end-users about impacts (S4-2) The Company engages with operators and airworthiness authorities, and other external stakeholders (e.g. suppliers, MRO, training centres) in a comprehensive manner to contribute to the safe operations of its products and services throughout the aircraft lifecycle. Sharing safety information is a key contributor to increasing the level of safety. The Head of Aviation Safety, reporting to the Company’s CEO has operational responsibility for ensuring means are implemented to foster sharing of information. There is continuous safety communication and regular exchanges between Airbus and external stakeholders. In addition, the Airbus annual flight safety conferences with Airbus customers, initiated in 1994, and the Company’s safety magazine (“Safety first”), which reaches over 1,500 aviation professionals daily via the website safetyfirst.airbus.com, are specific aviation safety-led activities which contribute to the enhancement of safety for aircraft operations by increasing knowledge and communication on safety-related topics. The Safety-first application D10X (short for Air Transport Safety, Destination 10X Together) is another collaborative initiative with airlines. The aim of D10X is to propose and share pragmatic solutions together with operators of Airbus aircraft for the key safety issues identified within this network. Airbus works closely with airworthiness authorities such as the EASA, in all aspects of the lifecycle of Airbus products, from conception through to design, certification, production and in-service support to ensure continuous safety of Airbus products. This collaborative approach ensures the full involvement of external stakeholders (airlines and airworthiness authorities) and helps incorporate feedback into the design process. Airbus SE/ Report of the Board of Directors 2024 238
To support safety in operations, Airbus regularly shares safety-related information with airlines, airworthiness authorities and other relevant stakeholders. This includes technical updates, and operational advisories to inform stakeholders about potential issues and recommended actions. Airbus maintains a transparent incident reporting system that encourages airlines to report any safety-related events. This information is analysed to improve overall safety and shared with relevant authorities as appropriate. Airbus also offers ongoing technical support to airlines, helping them address any safety concerns. This support includes troubleshooting, maintenance advice, and regular updates on best practices. Airbus offers training programs for pilots, cabin and maintenance crews, aiming at ensuring they are qualified and have the appropriate skills to operate and maintain Airbus aircraft safely. Training includes simulator sessions, emergency procedures, and regular updates on new safety protocols. 6.3.4.6 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns (S4-3) With the sole objective to prevent reoccurence of accidents and incidents, Airbus supports ICAO Annex 13 investigations. Airbus acts as a technical advisor to the accredited representatives, in accordance with the ICAO Annex 13 to the Convention on International Civil Aviation International Standards & Recommended Practices. Airbus encourages operators, MROs, and its suppliers to not only report according to mandatory requirements to their own agency and/or national airworthiness authority, but also directly to Airbus for technical and operational feedback, and including non-mandatory safety-related incidents. The Airbus OpenLine is implemented as an additional reporting means to Company employees and any external stakeholder, who can raise concerns, including related to safety. It allows individuals to report concerns anonymously (where legally permissible), and is communicated about through various channels including the Company website and official publications such as the Report of the Board of Directors. The Company protects those who speak up and raise concerns appropriately and in good faith, consistently with the Airbus Commitment to Just & Fair Culture. See ESRS G1 for more details on policies in place to protect individuals from retaliation. To close the loop, the Company shares lessons learned from accident and incident investigations with the wider aviation community to enhance overall industry safety. The safety risk management process is fully embedded into the SMS, which includes a monitoring of efficiency to ensure that potential safety-related issues are adequately assessed, managed and mitigated. The effectiveness of these communication channels is ensured by several means, including their availability 24/7 and the consideration of related feedback received from customers and operators. See section “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)” for more details on the OpenLine mechanism. 6.3.4.7 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions (S4-4) Actions identified to support aviation safety address both the impact and the risk linked to this topic. The action plan is on-going, permanent, and fully operational and supports the current safety level in the aviation sector. It includes prevention, mitigation and remediation actions that address negative material impacts on consumers and end-users, and is fully embedded in the Airbus SMS. It integrates an end-to-end approach to safety which encompasses the Company´s products, their documentation, and associated operations and services. The Airbus SMS exceeds SMS requirements for European Original Equipment Manufacturers (OEM) which apply to Approved Organisations (e.g. DOA, POA). In particular, the Company has also implemented and maintains a robust and mature SMS across its functions including Engineering, Customer Services, Operations, Manufacturing, Procurement, etc. SMS comprehensive action plan involves a large number of employees, for whom aviation safety is embedded in their respective tasks and duties, including for instance programmes, engineering teams, procurement teams, production lines, quality teams, customer support teams and aviation safety teams. Beyond this workforce dimension, action plan execution is also enabled by a number of means deployed in relation to activities described hereafter such as related IT systems, R&D activities, or industrial operations CapEx supporting quality. Airbus SE/ Report of the Board of Directors 2024 239
Key actions include: Safety in design. This set of actions primarily contributes to the IRO prevention / avoidance covering all three business segments. The Company incorporates safety principles from the earliest stages of product design. This includes the use of advanced engineering techniques, rigorous testing, and simulation to identify and mitigate potential safety risks. During the design phase, the Company conducts thorough risk assessments to identify potential hazards and implement design features that enhance safety. This includes structural integrity, redundant systems, and fail-safe mechanisms. Consideration of human factors is integral to design. The Company ensures that the cockpit, controls, and interfaces are designed to minimise pilot error and enhance situational awareness. The Company invests in research and innovation to develop new technologies and methods that enhance safety. This includes exploring advanced materials, automation, and artificial intelligence to improve aircraft safety and performance. Safety in production. This set of actions primarily contributes to the IRO prevention / avoidance covering all three business segments. The Company employs stringent quality control processes during production to ensure that all components and systems meet safety standards. This includes regular inspections, testing, also in compliance with international aviation regulation requirements. This involves rigorous supplier audits and certifications. The Company also adopts a continuous improvement approach, using feedback from production to enhance manufacturing processes and product quality. Safety in supply chain. This set of actions primarily contributes to the IRO prevention / avoidance covering products from all three business segments. The Company works closely with its suppliers to ensure that all materials and parts meet the required safety and quality standards. It is working with its supply chain to extend its safety enhancement principles to 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. To ensure the safety and quality of parts used in aircraft and spacecraft manufacturing guarantee that the final product will meet safety and quality standards, the Company cascades related requirements to all its direct suppliers through contractual terms and the Supplier Code of Conduct. These go beyond ISO EN9100 quality standards, with the requirement for suppliers to continuously train their employees on quality assurance and ensure they are appropriately skilled. The Company leads an annual audit campaign to verify all quality requirements are met, including performance and compliance. Priorities are defined based on risk ranking criteria that consider parts criticality, operational maturity and production capacity. Testing and certification. This set of actions primarily contributes to the IRO prevention / avoidance and covering products from all three business segments. The Company conducts extensive ground and flight testing of prototypes to validate the safety and performance of new aircraft models. This includes testing under various operational conditions and stress scenarios. Before any aircraft enters service, it must receive certification from aviation authorities such as the EASA, Transport Canada Civil Aviation (TCCA) and the Federal Aviation Administration (FAA). This certification process ensures that the aircraft complies with all safety regulations and standards. See section ”– 6.3.4.2 Policies related to consumers and end-users (S4-1)” for more information. Operations and in-service support. This set of actions primarily contributes to the IRO prevention / avoidance and covers the operations of products from all three business segments. To support continuous airworthiness and safety, the Company develops detailed maintenance programmes for its aircraft, which include scheduled inspections, preventive maintenance, and necessary repairs. At airlines request, Airbus uses advanced data monitoring systems to track the performance of its aircraft in service, and support safety risk assessment and development of mitigation actions. Airbus also provides comprehensive training programmes for pilots, focusing on both normal and emergency procedures. This includes simulator training and ongoing education to ensure pilots are well-prepared to operate the aircraft safely. Incident and accident investigation. This set of actions primarily contributes to the IRO remediation and prevention, and covers products from all three business segments. See above “– 6.3.4.4 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns (S4-3)” for more information. Continuous safety enhancements. This set of actions primarily contributes to the IRO prevention / avoidance and covers products from all three business segments. To further enhance the resilience of the Company’s products against abnormal conditions, and go beyond strict compliance with certification and airworthiness duties, the Company applies proactive risk management principles which drive the safety processes. The Company fosters a strong safety culture across the organisation, encouraging employees at all levels to prioritise safety and report potential hazards without fear of retribution. Employees receive safety and quality related training adapted to their working stations, and in line with regulatory requirements from EASA (See above, policy section). Airbus SE/ Report of the Board of Directors 2024 240
Aviation sector engagement. This set of actions primarily contribute to the IRO prevention / avoidance and supports the safety of products from all three business segments. The Company engages with a wide range of stakeholders, including operators, regulatory bodies, and industry groups, to share safety information and collaborate on safety initiatives. Airbus engages in collaborative research projects with airlines and regulatory bodies to develop new safety technologies and methodologies. This joint effort accelerates the adoption of innovations that enhance safety. Airbus works closely with Air Traffic Management (“ATM”) bodies such as EUROCONTROL to enhance the integration between aircraft and air traffic management systems and ensure that cockpit procedures and communication protocols align with ATM practices, especially enhancing safety during critical phases like takeoff, landing, and in congested airspace. This includes developing standardised operational manuals that promote clear, consistent communication between pilots and Air Traffic Control (“ATC”). Airbus engages with regulatory authorities and sectoral bodies on initiatives that promote a global approach to aviation safety through standardised procedures and regulations. Such third parties include EASA and FAA, ICAO, IATA, International Federation of Air Line Pilots' Associations (IFALPA) and the Aviation Supply Chain Integrity Coalition. For more information on how the Company ensures that processes to provide or enable remedy in the event of material negative impacts are available and effective in their implementation and outcomes, refer to section “– 6.3.4.4 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns (S4-3)”. All of these actions are ongoing and embedded in the Company’s usual operations. The Company deeply regrets any fatalities associated with the operational use of its products. During the reporting period, fatalities occurred in relation to a number of helicopter accidents and on board a De Havilland regional aircraft that collided with an A350 commercial aircraft in Japan. For more information on the approach with regards to provide for and cooperate in or support provision of remedy for those harmed by actual material impacts, refer to section “– 6.3.4.4 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns (S4-3)” as well as section “– 6.1.1.2.4 Statement on due diligence", subsection “Step 6: Cooperating in appropriate remedy“. 6.3.4.8 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities (S4-5) and metrics Airbus has established a safety-related target that measures the continuous efficiency of the SMS. The SMS network coverage, and particularly the nomination and training of SMS officers in key business functions, was identified as a key safety performance indicator. So, it sets as a target that “100% of SMS officers shall be nominated and trained” on a continuous basis, monitored since 2018 and formalised in 2021, which contributes to reducing impacts on customers and end-users as well as reducing the risk. This target was set by the Company, with no specific consultation of stakeholders, on a voluntary basis, and was approved and is monitored as per the SMS governance described above. End-users and customers are not involved in tracking the performance against the target. The target covers the SMS officers nominated in the functions within the Commercial Aircraft business segment. SMS officers are considered trained when they have completed a comprehensive training dedicated to SMS officers provided by qualified trainers on SMS. SMS officers Target Target horizon 2024 Nominated 100% permanent 100% Trained 100% permanent 100% Airbus SE/ Report of the Board of Directors 2024 241
6.4 Governance information 6.4.1 ESRS G1 - Business conduct 6.4.1.1 Business Conduct IROs The following IROs were identified for business conduct: ESRS (sub-)topic Impact, risk or opportunity Description Time horizon Location in the value chain ESRS G1 Business Conduct Management of relationships with suppliers including payment practices Risk There is a risk that the Company's numerous suppliers and subcontractors' financial health and ability to meet their contractual obligations may be negatively impacted by internal and external factors, which could lead to operational disruptions and delivery delays. This could negatively affect financial performance. / Own operations ESRS G1 Business Conduct Corruption & Bribery Risk There is a risk that ethical misconduct or non-compliance with applicable anti-bribery laws and regulations by the Company, its employees or any third party acting on its behalf could expose it to liability. This could negatively affect financial performance and damage its reputation. / Own operations ESRS G1 Business Conduct Speak Up (renamed from, and covers, Protection of whistleblowers) Risk There is a risk that not being able to maintain an effective speak up culture within the Company, including protection of whistleblowers, may delay the identification of certain risks or situations until they have been revealed in the public domain. This could negatively affect financial performance and damage its reputation. / Own operations ESRS G1 Business Conduct Corporate Culture Risk There is a risk that a dysfunctional and negative corporate culture in the Company may lead to a lack of shared values, decreased motivation, reduced productivity and a failure to meet agreed standards and applicable rules. This could negatively affect financial performance. / Own operations 6.4.1.2 Business conduct policies and corporate culture (G1-1) The Company supports the principles of the UN Global Compact and the Global Principles of Business Ethics from the International Forum on Business Ethical Conduct (IFBEC), which set a benchmark for high ethical standards globally. The Company’s Ethics & Compliance programme seeks to ensure that the Company’s business practices and corporate culture conform to applicable laws, regulations and ethical business principles while reinforcing a culture of integrity and speak-up. Topics covered by this programme include, but are not limited to: corporate culture, protection of whistleblowers, bribery and corruption, relationships with third parties, fraud, export control and sanctions, fair competition, conflicts of interest, insider trading, money laundering and tax evasion. To ensure the deployment of this programme and adapt to a constantly evolving regulatory landscape, each of these topics are supported by dedicated policies that are regularly updated. The Company is also coordinating a network of Ethics & Compliance Representatives (“ECRs”), spanning Airbus and the two Divisions, all functions and regions. 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 animates the ECR network, Airbus SE/ Report of the Board of Directors 2024 242
providing continuous awareness and information to the ECRs. Any employee may also reach out to the Ethics & Compliance team for any ethics and compliance matter, amongst other channels to raise concerns. Specific policies, detailed further below, have been adopted to address the Company’s Business conduct material IROs, including: Code of Conduct Airbus Anti-Corruption Policy Requirements for Ethics & Compliance Specific Areas for Employees Requirements for Ethics & Compliance Third Party and Transactions Management Requirements for Sponsorships, Donations and Corporate Memberships Requirements for Export Control Responsible Lobbying Charter The Ethics & Compliance organisation is tasked with oversight and monitoring of all the policies above, to evaluate them, and 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. 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 its values. 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. The Company is committed to the continuous improvement of its Ethics & Compliance programme, and aims at making it sustainable over time. While compliance at the Company will therefore always be subject to continuous improvement, the Company is committed to this endeavour, as it aims to make its Ethics & Compliance programme sustainable over time. By way of example, in 2024 integrity and compliance continued to be integrated in the Top Company Objectives. The Company continued to improve its Ethics & Compliance framework by enhancing the digital solutions made available to employees in the fields of whistleblowing, gifts & hospitality or sponsorships & donation management, as well as conflicts of interests. To further promote the corporate culture, all policies and guidelines are made available to employees on the intranet and via their local Ethics and Compliance teams. In addition, as part of their annual goals and objectives, all Company employees are required to complete mandatory ethics and compliance training. Based on criteria such as the business function, the level of risk associated with their role and the country in which they are located, employees can be categorised as exposed employees. These exposed employees must attend additional training and are also required to complete regular refresher training. Trainings for all employees are mandatory and monitored, and managers have a responsibility to ensure that their team members complete their respective trainings in due time. Code of conduct By defining expectations and standards in regards to ethical behaviour and responsible business practices, the Airbus Code of Conduct guides employees and supports the prevention of unethical business conduct including corruption and bribery. It addresses a range of social, environmental and governance topics, including but not limited to corporate culture, protection of whistleblowers, bribery and corruption, and relationship with third parties. The Code of Conduct is applicable to the Company’s global workforce, including all divisions and controlled subsidiaries or joint ventures. The CEO holds accountability for the Code. The Code of Conduct is accessible to all stakeholders via the external website airbus.com and is also available internally to the workforce. The Company recognises that the Code of Conduct cannot prevent every situation that may arise in the course of doing business. The Company therefore enables employees and third parties – including but not limited to contractors, subcontractors, direct or indirect suppliers, customers, end-users and local communities around Company’s sites and those of its suppliers – to speak-up about concerns related to the Company. Concerns may be raised through various channels, including through the OpenLine (available to all at https://www.airbusopenline.com). The OpenLine enables people to submit Airbus SE/ Report of the Board of Directors 2024 243
an alert securely and confidentially. If preferred, employees may also report concerns to line managers, Human Resources Business Partners, a member of the Legal & Compliance team, Ethics & Compliance Representatives, Privacy Focal Points, or Export Control Points of Contact. The Company’s employees are made aware of speak-up channels as part of mandatory annual training, company-wide communications on the Company’s intranet, poster campaigns in work sites, annual team talks, and other periodic communications. Employees' knowledge of and trust in the Company’s treatment of ‘Speak Up’ is assessed during the periodic ‘My Working Environment' survey offering insights on its effectiveness (for more information regarding the survey, see section “– 6.3.2.4 Processes for engaging with own workers and workers’ representatives about impacts”). Matters requiring investigation are managed by dedicated members of the Ethics & Compliance team in accordance with an internal method on how to conduct investigations. The Ethics & Compliance team provides updates to the pool of internal investigators on internal policies, recent developments in the regulatory framework and investigation best practices to ensure the consistent and objective deployment of compliance investigations across the entire Company. Based on the conclusion of such investigations, corrective or disciplinary actions may be taken. The Company commits to protecting those who speak up and raise concerns. In particular, it commits not to retaliate against anyone who raises a concern in good faith, against those who assist in investigations, or against other legally protected classes in the jurisdictions where it operates. The Company’s Method for Investigation of Ethics & Compliance Allegations integrates principles of non-retaliation aligned with the transpositions of Directive (EU) 2019/1937 which aims to drive a “Speak Up” culture. The speak up channels and the non-retaliation principles are both included into various team talks, e-learnings, anti-bribery and corruption trainings, and otherwise communicated frequently. Below can be found the total number of alerts or allegations received. Key figures Unit 2024 Number of alerts or allegations received No. 1,730 Airbus anti-corruption policy While the Airbus Code of Conduct provides guidance on common ethical issues and dilemmas such as anti-corruption, the Airbus Anti-Corruption Policy and the specific directives referenced in this policy, including requirements for anti money laundering, form the backbone of the Airbus Ethics & Compliance Programme. The policy provides a clear framework for the Company’s corporate culture and for the conduct of business, applying to all hierarchical levels, thus supporting the prevention of corruption and bribery across the Company. The policy applies to the entire workforce of the Company, including employees and directors within every subsidiary or joint venture under control of the Company, and is enforced globally across Airbus and the two Divisions and controlled subsidiaries. The Company's General Counsel is the designated owner of this policy. This policy is accessible to all stakeholders via the external website and internally to the entire workforce. Requirements for ethics & compliance specific areas for employees A specific company directive supports the prevention of unethical business conduct including corruption and bribery by defining the Company’s requirements for the prevention of corruption and business ethical conduct more broadly. The directive specifically identifies requirements of employee action and behaviour, roles and responsibilities related to: training, gifts and hospitality exchange, conflict of interest declaration, competitive intelligence gathering, speak-up and investigations. This directive is supplemented by several methods, which address each of these areas in detail. This directive does not address the prevention of corruption and business ethical conduct more broadly in the engagement or transactions with Third Parties, or in the context of Sponsorships & Donations (see section d. and e.below). The directive is applicable to the entire workforce of the Company globally, including all divisions and controlled subsidiaries and the Chief Ethics and Compliance Officer is accountable. Requirements for ethics and compliance third party and transactions management The Company has an established directive to address ethics and compliance in third-party engagements and transactions, aimed at preventing, detecting, and remediating compliance risks, including but not limited to bribery and corruption, sanctions and export control. This directive outlines the methods for engaging sales intermediaries, lobbyists, special advisors (i.e. political or strategic advisors), channel partners (i.e. distributors and resellers) and suppliers as well as Airbus SE/ Report of the Board of Directors 2024 244
managing compliance in mergers, acquisitions, joint ventures, partnerships, and similar transactions. It also includes methods for preventing corruption in international cooperation and offset activities as well as in the context of commercial credits and customer due diligence. The Directive is applicable to the entire Company workforce globally, including all divisions and controlled subsidiaries and the Chief Ethics and Compliance Officer is accountable. Requirements for sponsorships, donations and corporate memberships The Company’s comprehensive directive addresses the risks of bribery and corruption associated with Sponsorships, Corporate Donations, and Corporate Memberships (SDM). This policy mandates that all SDM activities must be duly declared and approved according to applicable thresholds, ensuring that only validated projects are executed. The directive is designed to frame, control, and monitor all SDM activities within the Company worldwide, encompassing the Divisions and controlled subsidiaries. The Chief Sustainability Officer and Communications is accountable for this directive. Requirements for Export Control In order to ensure its compliance with export control regulations and laws in the EU, UK, US and all the countries where or with whom it operates, the Company continues to strengthen 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 non-compliance with any regulations including but not limited to the International Traffic in Arms Regulations (ITAR), Export Administration Regulations (EAR), European Union and national military and dual-use regulations. The Company has cascaded its export control requirements through nine directives and methods throughout the Company, for which the Chief Ethics and Compliance Officer is accountable. In parallel, in 2024, the Company continued to deploy digital tools, developed through its Global Export Control Solutions (GECS) project in order to support the fulfilment of those requirements with regards to, notably, classification, record keeping, screening, accreditation, tangible and intangible transactions compliance or access control securitisation. Continuous efforts are ongoing to extend the scope of deployment in the Company’s Commercial Aircraft business and further deploy akin solutions within Airbus Helicopters and Airbus Defence and Space, core entities as well as subsidiaries and affiliates in the years to come. In addition, in February 2022, the Company launched the Export Control Points of Contact (“EPoCs”) network, spanning both Divisions, functions, and regions (see figures in the table below). Similar to ECRs, EPoCs are not export control experts but serve as “first line of defence” and the “go-to” individuals for export control matters. By raising awareness among employees and acting as local focal points for queries on export control-related topics in their respective functions, EPoCs are key contributors to the Company's common objective: embed an export control compliance system and culture throughout Company’s businesses. The network is established and active within the Company. Key figure Unit 2024 Number of EPoCs No. 648 Responsible lobbying charter The Company is committed to ensuring that any lobbying activity is undertaken in compliance with all applicable laws and its anti-corruption programme. In 2021, the Company published a Responsible Lobbying Charter aimed at anybody who engages with public officials in any capacity, including third party representatives retained by the Company. The Charter was signed by the General Counsel who is accountable for it as the Head of Public Affairs. The Charter, available on the Company website, outlines the Company’s core principles for responsible lobbying and brings together the Company’s key codes and directives relevant to this topic. The principles are also reinforced by a training module available to all employees. 6.4.1.3 Prevention and detection of corruption and bribery (G1-3) For a general introduction to how the Company drives the prevention of corruption and bribery, see section “– 6.4.1.2 Business conduct policies and corporate culture (G1-1)”. The Company seeks to maintain a strong ‘Speak Up’ culture and encourages employees and others to raise concerns, whether related to corruption and bribery or to other issues that may arise in the context of the Company's business. To allow people to raise concerns, the Company’s OpenLine is publicly accessible to Company employees and external Airbus SE/ Report of the Board of Directors 2024 245
stakeholders, including suppliers and their employees. Access to OpenLine is an essential component of the Airbus Code of Conduct and it has been reiterated in the updated Supplier Code of Conduct. The Company´s employees may also report concerns to managers, HRBPs, a member of the Legal & Compliance team or Ethics & Compliance Representatives. As for the supply chain, apart from OpenLine and direct reports from employees, the Company may receive alerts from other sources including through media screening, NGO reports, or Supplier Compliance Review which is a screening ahead of supplier selection. Analysis and/or investigation of corruption and bribery alerts are managed by a dedicated Ethics & Compliance team. Alerts related to other topics can be managed in collaboration with other relevant teams, such as the Sustainability Legal Affairs, the Procurement Sustainability and the Sustainability & Environment teams depending on the cases. After an alert is submitted, trained team members perform a process to ensure each matter is appropriately addressed and feedback is provided to the reporter. Ethics and compliance alerts are tracked in an access-limited database to ensure appropriate investigation and follow up is performed. Key steps are detailed below: initial review to determine if an investigation is needed; detailed analysis of the allegation including collection of evidence; assessment of information and documentation collected during the investigation, summary of the findings and proposal of 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. Alert handling is overseen by cross-functional management teams at corporate level and across Airbus and the two Divisions, who periodically review the progress of investigations, promote cross-functional collaboration, and seek to identify trends in alerts across the Company. In determining the composition of an investigation team, the Company considers the availability of suitably competent and independent investigation resources. Accordingly, any individual who is potentially conflicted by the Ethics & Compliance allegation is removed from the investigation team to limit any actual or perceived conflict of interest. In the case of alerts related to a member of the Company´s Board of Directors, Executive Committee or a member of the E&C Risk, Investigations, and Voluntary Disclosures team or the Ethics & Compliance for HR and People Matters teams, the alert will be transferred to the Company´s Chief Ethics & Compliance Officer, who has an independent reporting line to the Company´s Board of Directors. On a quarterly basis, the Company’s Chief Ethics & Compliance Officer reports updates on key investigations to the ECSC of the Board of Directors. Anti-corruption and bribery training Training remains an important lever of prevention which serves to drive an ethical business culture. Training sessions are delivered both via virtual and physical classrooms, which allows for the largest reach: company-wide, as well as external stakeholders, including higher-risk third parties such as sales intermediaries, lobbyists and special advisors. In-depth training is delivered across a number of functions to employees considered as highly exposed (see figures in the two tables below). These include but are not limited to all of the Company’s Executives (including members of the Executive Committee) as well as Senior Managers in identified teams within specific functions (Sales, Strategy, Customer Services, Finance, Procurement and Programmes), in addition to a number of identified job profiles at lower grades such as Event Managers or Sales Assistants. Key figure Unit 2024 Percentage of functions-at-risk covered by training programmes % 100% In addition, members of the Company’s Board of Directors have been upskilled on topics connected to anti-corruption and bribery, notably through regular sessions (at least quarterly) taking place in the ECSC, a permanent Board committee created in 2017, while ECSC activities are consistently reported to the full Board of Directors (see “– 6.1.1.2 GOV: Governance”). Airbus SE/ Report of the Board of Directors 2024 246
Anti-Corruption & Anti-Bribery Training Table All Company employees excluding shop floor / production job profiles Highly Exposed (excl. Executives) Executives Number of in-scope employees 116 443¹ 5893² 866² Minimum required 4 e-learning items³ 4 hours virtual or physical classroom training, or e-learnings3 hours virtual or physical classroom training, or e-learningsFrequency of minimum requirement Every year Every 3 years Every 3 years Number of in-scope employees trained in 2024¹ 113 624 4866 719 Topics covered (non-exhaustive) - Fraud - Bribery - Code of Conduct - Gifts & Hospitalities - 3rd party Due Diligence - Facilitation Payments - Conflict of Interest - Contractual credit - Antitrust - Competitor Information - Personal Liability - Speak up / Open Line etc. - Gifts & Hospitalities - 3rd party Due Diligence - Facilitation Payments - Conflict of Interest - Contractual credit - Antitrust - Competitor Information - Personal Liability - Speak up / Open Line etc. ¹ as identified 31/12/2024 ² as identified 01/01/2024; the list has evolved in the course of the year (resignations, retirements, long term sick leaves, maternity, leaves, etc.....) ³ these 4 items are included into the mandatory “Ethical Business” module (5 items total) which forms part of the Top Company Objectives learning curriculum 3 hours training every 3 years and 1 hour refresher the year after 2 hours training every 3 years and 1 hour refresher the year after 6.4.1.4 Incidents of corruption or bribery (G1-4) Governance metrics Bribery & Corruption Unit 2024 Number of convictions for violation of anti-corruption and anti- bribery laws No. 0 Amount of fines for violation of anti-corruption and anti- bribery laws EUR 0 The Company aims to prevent any breaches by continuously improving its anti-bribery and -corruption policies and their implementation, supported by Company-wide yearly audits, internal investigations or other types of verification or benchmarking. In 2024, the Company continued delivering its Company-wide training programme, which is a regular ongoing yearly activity. Some additional actions were carried out and completed in 2024 including raising awareness to employees of certain targeted regions on OpenLine availability, the Gift and Hospitality method or the Sponsorship and Donation method. It also updated, for training purposes, the list of highly exposed populations in affiliates. All these actions contribute to reinforcing a culture of integrity and speak-up, to preventing related risks and are embedded in the Company’s usual operations. 6.4.1.5 Management of relationships with suppliers (G1-2) The Company strives to make environmental and social responsibility a core element of its procurement strategy. This includes managing the relationships with suppliers through the different phases of the procurement process: sourcing, strategy definition, supplier selection, contract management and supplier monitoring and development. It also includes Airbus SE/ Report of the Board of Directors 2024 247
ensuring timely payments to its suppliers, including small and medium enterprises (SMEs), conditions of which are formalised in the contracts between the Company and its suppliers (see “– 6.4.1.6 Payment practices (G1-6)” below). The Company’s due diligence in its supply chain covers primarily the Company’s suppliers (i.e. those with which the Company contracts supply agreements, referred to as “Tier-1”); nonetheless, if an alert is raised in relation to a supplier in the upstream supply-chain, the Company will act on it as deemed appropriate, see “– 6.1.1.2.4 GOV-4: Statement on due diligence” for detailed information. Sustainability due diligence notably encompasses the following elements: - Since 2018, the Procurement team has carried out annual proactive sustainability inherent risk mapping. - Before engaging with any supplier, the Company conducts due diligence that covers enforcement, sanctions, adverse press and politically exposed checks on a variety of topics such as corruption, fraud, export control, human rights and environment. - As part of the selection process, suppliers are asked to complete a sustainability questionnaire during the call-for-tender phase. This questionnaire accounts for a minimum weight in the selection process. - The Company also requires all suppliers engaging into a selection process to commit to the Supplier Code of Conduct (SCoC), which is available on the Supplier portal and the Company’s website. The Company’s procurement-related risks and opportunities are embedded into the Company’s ERM process. Risks and opportunities related to the deployment of the sustainability roadmap in the supply chain are managed according to the Procurement ERM plan. The Company also has procedures for its suppliers including SMEs facing financial difficulties, designed to help with the liquidity of the supply chain. 6.4.1.6 Payment practices (G1-6) The Company is committed to responsible business conduct. Timely payments to its suppliers, including small and medium enterprises (SMEs) are a priority. It is recognised that late payments can have an adverse effect especially on SMEs. Adhering to mutually agreed payment schedules and minimising delays support the financial health of the supply chain. The Company offers shorter payment terms to those SMEs who have adopted electronic invoicing. The Company has processes in place to prevent late payments to all suppliers, including SMEs. These processes include automated payment tracking systems alerting when payment deadlines are approaching. The Company’s payment terms are known and mutually agreed with all suppliers. The payment terms are designed to cater for unique needs of individual suppliers and ensure compliance with national laws and regulations. Standard payment terms for suppliers are end of month +60 days, due the 10th day of the next calendar month (subject to applicable law), while for the SMEs that have adopted electronic invoicing, the payment is due on or before the 25th day of the month following the month of the invoice. For SMEs without electronic invoicing the payment is due on the 30th day of the month following the invoice. See table below for metrics on payment practices. Governance metrics Payment practices Unit 2024 Average number of days to pay invoice from date when contractual or statutory term of payment starts to be calculated Days 62 Percentage of payments aligned with standard payment terms % 91 Number of legal proceedings outstanding as of year end for late payments No. 0 Scope: Company-wide Assumptions: Payment practice KPIs are populated in a central reporting tool which covers more than 90% of total Company’s spend making this sample representative of the Company’s payment practices. The KPIs are calculated based on the number of invoices. Airbus SE/ Report of the Board of Directors 2024 248
6.4.2 Company-specific - Cybersecurity 6.4.2.1 Cybersecurity IROs Building on the DMA process described under section “– 6.1.1.4.1 IRO-1: Description of the processes to identify and assess material IROs”, the following risk was identified for the entity-specific topic of cybersecurity: ESRS (sub-) topic Impact, risk or opportunity Description Time horizon Location in the value chain Entity- specific / Risk There is a risk that the materialisation of a cybersecurity risk, including intrusion in systems leading to data leakage, attacks impacting the resilience of industrial systems and compromising the development, use or operation of products and services, 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. This could negatively affect financial performance and damage its reputation. / Own operations, downstream For further insights on Cybersecurity risks, see section “– Risk Factors – 3.1.2 Business and operations-related risks - Business disruptions, including by cyber, physical or hybrid threats, could adversely affect the Company”. 6.4.2.2 Policies Confidentiality, integrity and availability are known to define cybersecurity objectives when thinking about systems risks. Corporate Security is accountable for security risk management and is in charge of defining cybersecurity risks taxonomy and managing the lifecycle in ERM, including strategy, organisation, roadmap and initiatives at company-wide level. There are no signs globally that the threats of cyber attack will decrease; therefore, the Company maintains an advanced cybersecurity posture and anticipates future threats. Specific focus is placed on: ensuring continued compliance to international, national, and industry specific cybersecurity regulations; company resilience; ensuring prevention and recovery from cyber skirmishes, and destructive ransomware attacks; extended enterprise and supply chain cybersecurity collaborations The Company has undertaken a cybersecurity transformation since 2019 with the establishment of a federated model of 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, responsible for the definition and audit of cybersecurity directives and methods aligned to major industry standards such as ISO 27001 or IEC62443. Cybersecurity governance encompasses both Divisions and global operations plus affiliates. The Company has initiated in 2021 the Group Cyber Risk Review, which is reported quarterly to the Risk & Opportunity Review Board (RORB). This initiative is ongoing and takes place every year. In addition, the Company has established the Group Cyber Review Board, marking a step towards enhancing the Company's cyber risk management framework. This board is designed to be an enduring organisation, indicating its long-term commitment to maintaining and improving digital security across the Company. The Group Cyber Review Board, is composed of the Chief Information Security Officers (CISOs) and Heads of Digital Cyber Security from the three business segments. The Corporate CISO chairs this group. The Board's primary objective is to review and discuss the Company's digital security risk posture and agree on collaborative, Company-wide mitigating actions. It is also responsible for establishing the Company’s Cybersecurity strategy. The scope of the Group Cyber Review Board is extensive, covering digital security risks across all business segments of the Company, including Commercial Aircraft, Airbus Helicopters, and Airbus Defence and Space. This cross-divisional approach ensures that the board considers a wide range of digital security risks affecting various parts of the organisation. The Board's responsibilities include overseeing IT and industrial assets. Airbus SE/ Report of the Board of Directors 2024 249
The quarterly meetings of the Group Cyber Review Board are crucial for maintaining an up-to-date understanding of the Company's cyber risk landscape. During these meetings, the Board members review current risks, discuss potential vulnerabilities, and agree on necessary mitigating actions. This collaborative approach allows for a more comprehensive and effective response to cyber threats, leveraging the expertise and insights of senior security leaders from different business segments. The Company Board of Directors are regularly updated on cybersecurity topics, with two dedicated sessions in 2024 and receipt of bi-annual “Executive Reports” that cover all major achievements, challenges and trends. The three CEOs of Airbus and the two Divisions are briefed on security topics every two months. Security being one of its five pillars, the Company has established a comprehensive security policy, which outlines the Company's core values, mission, mid-term vision, and top-level initiatives related to security matters, and is aimed at protecting the Company’s assets, products and services, employees and key stakeholders. This policy serves as a single top-level reference for all security-related activities within the Company, including cybersecurity. Cybersecurity is acting on the four security bodies of the Company: Digital, Industrial, Products & Services, and People & Workplace. The scope of the policy is extensive, applied Company-wide, including to affiliates where the Company holds more than half of the voting rights or the right to appoint the majority of the board directors, subject to the shareholders' agreement and the level of control in each relevant affiliate. It encompasses the Company’s employees, contractors, visitors, and others while on the Company´s sites or working under the Company's responsibility. This policy can be found on the Company’s intranet and is available to all employees and external stakeholders, such as relevant subcontractors, with an active intranet access. The accountability for the policy is assigned to the Head of Corporate Security, and the highest governance bodies involved are the Corporate Security Council and the Digital Security Team (Cyber Security Validation Body). The Company’s Management System for the Company Security is aligned with the ISO 27001 standard (Monitor, Identify & Report Company Asset Vulnerabilities, Assess & Treat Company Asset Security Risk). Implementation of the processes are monitored through various internal audits (Maturity assessment, Process adherence audits, Quality audits) but also external audits. The three lines of defence principles always apply. First line (Process Review Meeting) occurs on a monthly basis. Additionally, risk mitigation measures follow the principle of people, process, and technology controls to reduce the likelihood and/or impact of cyber incidents. Security processes are fixed through security governance directives, business management processes (e.g. Vulnerability Management and Risk Management), and operating models. Technical security controls are implemented and measured in accordance with ISO 27001 and other industry standard information security management standards. 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, and the adoption of enterprise security architecture approaches. To reduce impact from cyber events, it operates in-house security operations centres covering both commercial and national activities; plus a Computer Emergency Response Team (CERT) analysing cybersecurity threat intelligence and rapidly investigating and containing cybersecurity incidents. 6.4.2.3 Actions and resources In terms of cybersecurity, risk management is the aggregation of continual risk reporting, cybersecurity 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 Company’s enterprise security architecture standards. A fully industrialised framework and toolkit has been deployed to ensure the standardised prescription, deployment and assessment of these controls across the Company. The Company currently has a three-year Cyber strategy in place, which currently runs from 2023 to 2025. However, the Company continuously updates it in accordance with the new threats and cyber risks posture. This strategy is deployed through further actions, with some of the most material ones described below. For instance, the Company is currently developing the International Security Operating Model (ISOM), a governance framework designed to provide comprehensive guidance and support on security matters to its global businesses and affiliates. The ISOM aims to support all international and regional entities of the Company, including its affiliates. The model has matured in 2024, with full implementation anticipated in 2025. In addition, the Company has implemented a comprehensive and ongoing phishing campaign to enhance cybersecurity awareness among its employees. This initiative, sponsored and managed by Corporate Security, involves a persistent and Airbus SE/ Report of the Board of Directors 2024 250
immersive phishing simulation designed to educate employees on identifying and countering phishing attacks. Each employee is subjected to multiple phishing challenges annually to ensure continuous training and awareness. The scope of this action is extensive, encompassing all employees across all business segments, home countries, and regions. This is an ongoing and recurring campaign, demonstrating that cybersecurity awareness remains a priority. Employees who fail to respond appropriately to phishing emails are required to attend an awareness session to improve their skills. The Company has also continued its commitment to enhancing cybersecurity competencies through the certified Airbus Cyber Security Diploma and Master’s programmes. Launched in France in 2022, these programmes aim to reinforce and future-proof existing cybersecurity competency, in addition to building an appropriate pipeline for future skills and needs to future-proof the Company's cybersecurity capabilities. The Bachelor’s and Master’s degrees, validated by the French National Registry of Professional Certifications, comprise 660 hours and 870 hours of coursework respectively. Key figures Unit 2024 Students registered in the Bachelor's programme in 2024 No. 18 Students enrolled in the Master's programme each year No. 38 The initiative is geographically focused in France and targets students as its primary stakeholders. The intake of students is an annual, recurring event. The three-year Cyber strategy aims to enhance capability development, improve protection measures, and reduce risks associated with cyber attacks, with a target completion date set for 2025. The cybersecurity strategy is an integral part of the Company's broader security strategy and is implemented across all business segments, home countries, and regions. 6.4.2.4 Targets Top Functional Objectives are set on a yearly basis. However, for security reasons, these targets are not publicly disclosed. 6.4.2.5 Metrics Key figure - Cybersecurity Unit 2024 Number of data breaches reported to data authorities No. 0 The Company has defined an incident management process in line with regulatory constraints; this ensures reporting any breach in due time (see table above for figures - information was validated by ANSSI - Agence Nationale de la Sécurité des Systèmes d'Information). Internal SOC (Security Operation Centre) and a CERT (Computer Emergency Response Team) are in charge of this process. Airbus SE/ Report of the Board of Directors 2024 251
7 Vigilance Plan The Company’s vigilance plan includes measures to identify risks and help prevent severe sustainability-related impacts resulting from the Company’s own operations and from its suppliers and other contractors (including subcontractors). For the Company’s engagement with stakeholders, see Section 6.1.1.3.2 "Sustainability Statement -SBM-2: Interests and views of stakeholders”, which shall be deemed to be incorporated by reference and form part of this plan. For the Company’s plan for its own operations, see the Sustainability Statement’s Sections 6.1.1.2.4 “ESRS 2 -GOV-4: Statement on due diligence”, 6.1.1.2.5 “ESRS 2 -GOV-5: Risk management and internal control over sustainability reporting”, 6.2.1 "Policies”, 6.2.3.1 “ESRS E2 - Pollution -Pollution IROs”, 6.2.3.2 “ESRS E2 - Pollution -Substances of Concern and of Very High Concern”, 6.2.3.3 “ESRS E2 - Pollution -Pollution of Air”, and 6.3.2 “ESRS S1 - Own Workforce”, which shall be deemed to be incorporated by reference and form part of this plan. For the Company’s plan for its supply chain, see Section 6.3.3 “Sustainability Statement -ESRS S2 - Workers in the value chain”, which shall be deemed to be incorporated by reference and form part of this plan. Airbus SE/ Report of the Board of Directors 2024 252
Financial Statements I 2024 I
Financial Statements Contents 1 Airbus SE IFRS Consolidated Financial Statements............................................................................................................................ 4 Airbus SE – IFRS Consolidated Income Statement for the years ended 31 December 2024 and 2023.............................................. 4 Airbus SE – IFRS Consolidated Statement of Comprehensive Income for the years ended 31 December 2024 and 2023................ 5 Airbus SE – IFRS Consolidated Statement of Financial Position for the years ended 31 December 2024 and 2023.......................... 6 Airbus SE – IFRS Consolidated Statement of Cash Flows for the years ended 31 December 2024 and 2023................................... 8 Airbus SE – IFRS Consolidated Statement of Changes in Equity for the years ended 31 December 2024 and 2023....................... 10 2 Notes to the IFRS Consolidated Financial Statements....................................................................................................................... 11 2.1 Basis of Preparation............................................................................................................................................................................ 11 1. The Company.................................................................................................................................................................................. 11 2. Geopolitical and Macroeconomic Environment............................................................................................................................... 11 3. Climate Impacts............................................................................................................................................................................... 11 4. Material Accounting Policies........................................................................................................................................................... 12 5. Key Estimates and Judgements...................................................................................................................................................... 14 6. Change in Accounting Policies and Disclosures............................................................................................................................. 15 2.2 Airbus Structure.................................................................................................................................................................................. 16 7. Scope of Consolidation................................................................................................................................................................... 16 8. Acquisitions and Disposals..............................................................................................................................................................17 9. Investments Accounted for under the Equity Method......................................................................................................................18 10. Related Party Transactions........................................................................................................................................................... 20 2.3 Segment Information...........................................................................................................................................................................20 11. Segment Information..................................................................................................................................................................... 21 2.4 Airbus Performance............................................................................................................................................................................ 23 12. Revenue and Gross Margin.......................................................................................................................................................... 23 13. Research and Development Expenses......................................................................................................................................... 23 14. Other Income and Other Expenses............................................................................................................................................... 23 15. Share of Profit from Investments Accounted for under the Equity Method and Other Income from Investments......................... 24 16. Total Financial Result.................................................................................................................................................................... 24 17. Income Taxes................................................................................................................................................................................ 24 18. Earnings per Share....................................................................................................................................................................... 26 2.5 Operational Assets and Liabilities..................................................................................................................................................... 27 19. Intangible Assets........................................................................................................................................................................... 27 20. Property, Plant and Equipment...................................................................................................................................................... 29 21. Other Investments and Other Long-Term Financial Assets...........................................................................................................31 22. Contract Assets and Contract Liabilities, Trade Receivables and Trade Liabilities....................................................................... 31 23. Inventories..................................................................................................................................................................................... 33 24. Provisions, Contingent Assets and Contingent Liabilities............................................................................................................. 33 25. Other Financial Assets and Other Financial Liabilities.................................................................................................................. 34 26. Other Assets and Other Liabilities................................................................................................................................................. 35 27. Sales Financing Transactions....................................................................................................................................................... 36 2.6 Employees Costs and Benefits.......................................................................................................................................................... 38 28. Number of Employees................................................................................................................................................................... 38 29. Personnel Expenses..................................................................................................................................................................... 38 30. Personnel-Related Provisions....................................................................................................................................................... 39 31. Post-Employment Benefits............................................................................................................................................................ 39 32. Share-based Payment...................................................................................................................................................................45 33. Remuneration................................................................................................................................................................................ 47
2.7 Capital Structure and Financial Instruments.................................................................................................................................... 50 34. Total Equity.................................................................................................................................................................................... 50 35. Capital Management..................................................................................................................................................................... 51 36. Net Cash....................................................................................................................................................................................... 52 37. Financial Instruments.................................................................................................................................................................... 55 2.8 Other Notes.......................................................................................................................................................................................... 66 38. Litigation and Claims..................................................................................................................................................................... 66 39. Auditor Fees.................................................................................................................................................................................. 67 40. Events after the Reporting Date.................................................................................................................................................... 68 2.9 Appendix “Simplified Airbus Structure”........................................................................................................................................... 68
1 Airbus SE IFRS Consolidated Financial Statements Airbus SE – IFRS Consolidated Income Statement for the years ended 31 December 2024 and 2023 (In € million) Note 2024 2023 Revenue 12 69,230 65,446 Cost of sales (58,555) (55,402) Gross margin 12 10,675 10,044 Selling expenses (877) (867) Administrative expenses (1,744) (1,654) Research and development expenses 13 (3,250) (3,257) Other income 14 303 243 Other expenses 14 (197) (209) Share of profit from investments accounted for under the equity method 15 350 267 Other income from investments 15 44 36 Profit before financial result and income taxes 5,304 4,603 Interest income 16 802 728 Interest expense 16 (900) (753) Other financial result 16 219 191 Total financial result 16 121 166 Income taxes 17 (1,347) (1,156) Profit for the period 4,078 3,613 Attributable to Equity owners of the parent (Net income) 4,232 3,789 Non-controlling interests (154) (176) Earnings per share Basic 18 5.36 4.80 Diluted 18 5.35 4.80 The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS). AIRBUS - FINANCIAL STATEMENTS 2024 - 4
Airbus SE – IFRS Consolidated Statement of Comprehensive Income for the years ended 31 December 2024 and 2023 (In € million) Note 2024 2023 Profit for the period 4,078 3,613 Other comprehensive income Items that will not be reclassified to profit or loss: Re-measurement of the defined benefit pension plans 31 801 (29) Income tax relating to re-measurement of the defined benefit pension plans 17 (136) (240) Change in fair value of financial assets (129) 61 Income tax relating to change in fair value of financial assets 17 16 (8) Share of change from investments accounted for under the equity method 12 (20) Items that may be reclassified to profit or loss: Foreign currency translation differences for foreign operations 180 4 Change in fair value of cash flow hedges 37 (1,766) 3,298 Income tax relating to change in fair value of cash flow hedges 17 470 (904) Change in fair value of financial assets 157 289 Income tax relating to change in fair value of financial assets 17 (1) (3) Share of change from investments accounted for under the equity method 55 (1) Other comprehensive income, net of tax (341) 2,447 Total comprehensive income for the period 3,737 6,060 Attributable to: Equity owners of the parent 3,923 6,216 Non-controlling interests (186) (156) The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS). AIRBUS - FINANCIAL STATEMENTS 2024 - 5
Airbus SE – IFRS Consolidated Statement of Financial Position for the years ended 31 December 2024 and 2023 (In € million) Note 2024 2023 Assets Non-current assets Intangible assets 19 17,179 16,929 Property, plant and equipment 20 19,112 17,201 Investment property 35 35 Investments accounted for under the equity method 9 2,433 2,228 Other investments and other long-term financial assets 21 5,077 4,719 Non-current contract assets 22 61 26 Non-current other financial assets 25 697 922 Non-current other assets 26 2,650 1,854 Deferred tax assets 17 3,505 3,448 Non-current securities 36 9,032 7,508 Total non-current assets 59,781 54,870 Current assets Inventories 23 37,745 33,741 Trade receivables 22 5,293 4,725 Current portion of other long-term financial assets 21 897 795 Current contract assets 22 1,474 1,823 Current other financial assets 25 2,004 1,851 Current other assets 26 3,463 2,697 Current tax assets 663 546 Current securities 36 2,829 1,301 Cash and cash equivalents 36 15,003 16,469 Total current assets 69,371 63,948 Assets and disposal group of assets classified as held for sale 8 61 53 Total assets 129,213 118,871 AIRBUS - FINANCIAL STATEMENTS 2024 - 6
(In € million) Note 2024 2023 Equity and liabilities Equity attributable to owners of the parent Capital stock 793 791 Share premium 4,002 3,983 Retained earnings 18,687 15,616 Other components of equity (3,286) (2,305) Treasury shares (590) (390) Total equity attributable to owners of the parent 19,606 17,695 Non-controlling interests 90 35 Total equity 34 19,696 17,730 Liabilities Non-current liabilities Non-current provisions 24 4,630 5,667 Long-term financing liabilities 36 10,355 10,202 Non-current contract liabilities 22 25,572 23,961 Non-current other financial liabilities 25 7,576 6,715 Non-current other liabilities 26 463 450 Deferred tax liabilities 17 271 361 Non-current deferred income 27 35 Total non-current liabilities 48,894 47,391 Current liabilities Current provisions 24 4,307 4,161 Short-term financing liabilities 36 3,924 3,389 Trade liabilities 22 13,791 14,323 Current contract liabilities 22 30,136 24,537 Current other financial liabilities 25 3,050 2,569 Current other liabilities 26 4,022 3,507 Current tax liabilities 593 740 Current deferred income 725 450 Total current liabilities 60,548 53,676 Disposal group of liabilities classified as held for sale 8 75 74 Total liabilities 109,517 101,141 Total equity and liabilities 129,213 118,871 The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS). AIRBUS - FINANCIAL STATEMENTS 2024 - 7
Airbus SE – IFRS Consolidated Statement of Cash Flows for the years ended 31 December 2024 and 2023 (In € million) Note 2024 2023 Operating activities Profit for the period attributable to equity owners of the parent (Net income) 4,232 3,789 Loss for the period attributable to non-controlling interests (154) (176) Adjustments to reconcile profit for the period to cash provided by operating activities: Interest income 16 (802) (728) Interest expense 16 900 753 Interest received 681 690 Interest paid (786) (606) Income tax expense 17 1,347 1,156 Income tax paid (947) (544) Depreciation and amortisation 11 2,853 2,242 Valuation adjustments (640) (541) Results on disposals of non-current assets 70 64 Results of investments accounted for under the equity method 15 (350) (267) Change in current and non-current provisions 24 166 (114) Contribution to plan assets 31 (505) (668) Change in other operating assets and liabilities 1,337 1,205 Inventories 23, 36 (3,522) (1,854) Trade receivables 22 (105) 258 Contract assets and liabilities 36 7,135 2,277 Trade liabilities 22, 36 (1,182) 1,421 Other assets and liabilities 25, 26 (989) (897) Cash provided by operating activities 7,402 6,255 Investing activities Purchases of intangible assets, property, plant and equipment, investment property 20 (3,669) (3,051) Proceeds from disposals of intangible assets, property, plant and equipment and investment property 20 98 75 Acquisitions of subsidiaries, joint ventures and businesses (net of cash) 8 (246) (65) Payments for investments accounted for under the equity method, other investments and other long-term financial assets (871) (960) Proceeds from disposals of investments accounted for under the equity method, other investments and other long-term financial assets 530 509 Dividends paid by companies valued under the equity method 9 196 150 Disposals of non-current assets and disposal groups classified as assets held for sale and liabilities directly associated 8 0 0 Payments for investments in securities 36 (4,460) (2,700) Proceeds from disposals of securities 36 1,769 1,914 Cash (used for) investing activities (6,653) (4,128) AIRBUS - FINANCIAL STATEMENTS 2024 - 8
(In € million) Note 2024 2023 Financing activities Increase in financing liabilities 36 851 247 Repayment of financing liabilities 36 (1,283) (52) Cash distribution to Airbus SE shareholders 34 (2,215) (1,421) Dividends paid to non-controlling interests (1) 0 Payments for liability for puttable instruments 228 138 Changes in capital and non-controlling interests 34 126 146 Change in treasury shares 34 (276) (334) Cash (used for) financing activities (2,570) (1,276) Effect of foreign exchange rate changes on cash and cash equivalents 358 (201) Net (decrease) increase in cash and cash equivalents 36 (1,463) 650 Cash and cash equivalents at beginning of period 36 16,473 15,823 Cash and cash equivalents at end of period 36 15,010 16,473 thereof presented as cash and cash equivalents 36 15,003 16,469 thereof presented as part of disposal groups classified as held for sale 8 7 4 The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS). AIRBUS - FINANCIAL STATEMENTS 2024 - 9
Airbus SE – IFRS Consolidated Statement of Changes in Equity for the years ended 31 December 2024 and 2023 Equity attributable to equity holders of the parent Other components of equity (In € million) Note Capital stock Share premium Retained earnings Financial assets at fair value Cash flow hedges Foreign currency translation adjustments Treasury shares Total Non- controlling interests Total equity Balance at 1 January 2023 789 3,837 13,408 (635) (5,688) 1,307 (68) 12,950 32 12,982 Profit for the period 0 0 3,789 0 0 0 0 3,789 (176) 3,613 Other comprehensive income 0 0 (284) 339 2,390 (18) 0 2,427 20 2,447 Total comprehensive income for the period 0 0 3,505 339 2,390 (18) 0 6,216 (156) 6,060 Capital increase 34 2 146 0 0 0 0 0 148 0 148 Share-based payment (IFRS 2) 32 0 0 168 0 0 0 0 168 0 168 Cash distribution to Airbus SE shareholders / Dividends paid to non-controlling interests 34 0 0 (1,421) 0 0 0 0 (1,421) 0 (1,421) Equity transaction 0 0 (44) 0 0 0 0 (44) 159 115 Change in treasury shares 34 0 0 0 0 0 0 (322) (322) 0 (322) Balance at 31 December 2023 791 3,983 15,616 (296) (3,298) 1,289 (390) 17,695 35 17,730 Profit for the period 0 0 4,232 0 0 0 0 4,232 (154) 4,078 Other comprehensive income 0 0 672 43 (1,255) 231 0 (309) (32) (341) Total comprehensive income for the period 0 0 4,904 43 (1,255) 231 0 3,923 (186) 3,737 Capital increase 34 2 19 0 0 0 0 0 21 0 21 Share-based payment (IFRS 2) 32 0 0 310 0 0 0 0 310 0 310 Cash distribution to Airbus SE shareholders / Dividends paid to non-controlling interests 34 0 0 (2,215) 0 0 0 0 (2,215) 0 (2,215) Equity transaction 0 0 72 0 0 0 0 72 241 313 Change in treasury shares 34 0 0 0 0 0 0 (200) (200) 0 (200) Balance at 31 December 2024 793 4,002 18,687 (253) (4,553) 1,520 (590) 19,606 90 19,696 AIRBUS - FINANCIAL STATEMENTS 2024 - 10
2 Notes to the IFRS Consolidated Financial Statements 2.1 Basis of Preparation 1. The Company The accompanying IFRS Consolidated Financial Statements present the financial position and the results of operations of Airbus SE (together with its subsidiaries referred to as “the Company”), a European public limited-liability company (Societas Europaea) with its seat (statutaire zetel) in Amsterdam, The Netherlands, its registered address at Mendelweg 30, 2333 CS Leiden, The Netherlands, and registered with the Dutch Commercial Register (Handelsregister) under number 24288945. The Company’s reportable segments are Airbus, Airbus Helicopters and Airbus Defence and Space (see “– Note 11: Segment Information”). The Company is listed on the European stock exchanges in Paris, Frankfurt am Main, Madrid, Barcelona, Valencia and Bilbao. The IFRS Consolidated Financial Statements were authorised for issue by the Company’s Board of Directors on 19 February 2025. 2. Geopolitical and Macroeconomic Environment In view of the complex and fast changing environment, notably with geopolitical uncertainties and specific supply chain challenges that have materialised in the course of 2024, the Company has launched an improvement programme in its commercial aircraft business. This programme has been designed to focus on priorities, leveraging the core business activities to drive operational efficiency. This is aimed at securing its industrial ramp up without compromising on safety, quality and compliance. The A320 Family programme continues to ramp up towards a rate of 75 aircraft per month in 2027. The Company is now stabilising monthly A330 production at around rate 4. Specific supply chain challenges, notably with Spirit AeroSystems, are currently putting pressure on the ramp up of the A350 and the A220. On the A350, the Company continues to target rate 12 in 2028 and is adjusting the entry-into-service of the A350 freighter variant which is now expected in the second half-year 2027. On the A220, the Company continues to target a monthly production rate of 14 aircraft in 2026. The war in Ukraine has increased the Company’s exposure to supply chain disruption risk given that part of the titanium used by the Company is sourced from Russia, both directly and indirectly through the Company’s suppliers. As a consequence, the Company implemented and is progressing well on the de-risking plan to avoid any shortage in the supply chain. This has prevented the Company from experiencing any production disruptions related to that matter in 2024. In 2024, with respect to Russia, the Company maintains strict controls to comply with all applicable regulations and sanctions which could become more stringent in 2025. The Representative Office in Moscow was closed in 2023, and Synertech, one of the Space Division's two joint ventures in Russia, was closed in the last quarter 2024. The Airbus Russia affiliate (Airbus RUS) and the Space Division’s other joint venture in Russia, Energia Satellite Technologies, are in the process of being closed. 3. Climate Impacts This section contains information incorporated by reference to address CSRD requirements related to Disclosure Requirement “SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model”, paragraphs 48d, 48e, 48f. Climate change may have a major impact on both the Company’s industrial operations and its upstream and downstream value chain. To address these impacts, the Company follows the recommendations of the Task Force on Climaterelated Financial Disclosures (“TCFD”) and conducted an analysis as required by the CSRD's E1 to identify climate-related impacts, risks and opportunities - both physical and transitional - and to develop a transition plan. For more information, please refer to section 6.2.2.3 "Sustainability Statement - Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)". AIRBUS - FINANCIAL STATEMENTS 2024 - 11
As climate-related risks could negatively affect the Company’s financial performance, management has taken them into account while preparing the Consolidated Financial Statements as well as the Company’s Operative Plan. In response, the Company has developed climate adaptation-related actions and a transition plan of climate change mitigation actions. The plan is structured into decarbonisation levers, which cover innovation in the Company’s product and service portfolio, its own operations, and in the Company’s value chain. For more information about the transition plan and the decarbonisation levers, please refer to section 6.2.2.2 Transition plan for climate change mitigation (E1-1), in the Sustainability Statement. The transition plan outlines that a large part of the Company’s overall research and development expenditures are spent on improving the Company’s current product portfolio to stay competitive. This includes: improvement in fuel and CO2 efficiency (beyond 50% SAF compatibility), ensuring the performance of products under the future atmospheric conditions, and investments in the development of breakthrough technologies (e.g. hydrogen based systems, electric machines, energy storage and distribution). In 2024, the Company invested a total of € 3,700 million (including capitalised development costs, see “– Note 19: Intangible Assets) for its overall Research and Development activities. The share attributable to its transition plan according to EU taxonomy criteria is disclosed in the Sustainability Statement 6.2.2.2 Transition plan for climate change mitigation (E1-1). Regarding carbon compensation schemes, in 2024 37% of Scope 1 greenhouse gas emissions (“GHG”) were offset through regulated emission trading schemes. No voluntary carbon credits were purchased in 2024 because the Company evolved its contractual framework for carbon offsets. This new framework will be implemented starting in 2025 and will also be used to offset the residual emissions from 2024, in line with the Company's commitment. For more information, please refer to 6.2.2.9 GHG removals and carbon credits (E1-7) in the Sustainability Statement. Regarding variable remuneration with a sustainability linked component, see “– Note 33: Remuneration" and please refer to 6.1.1.2.3 GOV-3: Integration of sustainability-related performance in incentive schemes, in the Sustainability Statement. In 2024 the Company invested € 33 million in companies and partnerships (e.g. Hy24, Lanzajet, Australian Sustainable Aviation Fuel Partnership, SAFFA fund) in order to foster the hydrogen and SAF ecosystem readiness (see “– Note 21: Other Investments and Other Long-Term Financial Assets "). The Company did not identify a need to change the assumption on the useful life of its Property, Plant and Equipment as the largest share of the assets will fully depreciate before 2050; physical acute and chronic risks are expected to materialise only over the long-term time horizon (around 2050). For more information about physical risks, please refer to 6.2.2.3 Description of the processes to identify and assess material climate-related impacts, risks and opportunities (ESRS 2 IRO-1) and Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3), in the Sustainability Statement. Capitalised development costs The Company estimates that there is no impact on the useful life of capitalised development costs as it believes that its latest generation commercial aircraft programmes, which represent a majority of its capitalised development costs, will play a pivotal role in achieving near term decarbonisation targets. This will be supported by the fleet renewal with latest generation aircraft which deliver significant CO2 emissions savings when compared to previous generation aircraft. For more information about emissions savings please refer to 6.2.2.5 Actions and resources (E1-3) in the Sustainability Statement. The Company’s goal of obtaining certification for operating with up to 100% SAF for all current aircraft programmes before the end of the decade will further substantiate their useful life. The Company’s order book is composed almost entirely of these more fuelefficient aircraft. Net orders, strengthening the order book in 2024, further demonstrate continuous demand for fuel efficient aircraft and their role in supporting the sector’s decarbonisation ambitions. The remaining portion of capitalised development costs relate to helicopter programmes that in 2024 saw strong demand and are planned to be capable of being operated with 100% SAF by 2030, satellite programmes as well as technologies such as HighAltitude Platform systems (“HAPS”). A significant share of these products plays an important role in supporting climate change monitoring and adaptation (e.g. earth observation satellites, search and rescue and firefighting helicopters as well as wildlife or environmental monitoring). For more information about the impairment test, see “– Note 19. Intangible Assets". 4. Material Accounting Policies Basis of preparation — The Company’s Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), issued by the International Accounting Standards Board (“IASB”) as endorsed by the European Union (“EU”) and Part 9 of Book 2 of the Netherlands Civil Code. When reference is made to IFRS, this intends to be EU-IFRS. The Consolidated Financial Statements have been prepared on a historical cost basis, unless otherwise indicated. They are prepared and reported in euro (“€”) and all values are rounded to the nearest million appropriately. Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. AIRBUS - FINANCIAL STATEMENTS 2024 - 12
The Company describes the accounting policies applied in each of the individual notes to the Financial Statements and avoids repeating the text of the standard, unless this is considered relevant to the understanding of the note’s content. The Company’s accounting policies and methods are unchanged compared to 31 December 2023. The implementation of other amended standards has no material impact on the Company’s Consolidated Financial Statements as of 31 December 2024. The most material accounting policies are described below. Revenue recognition Revenue is recognised when the Company transfers control of the promised goods or services to the customer. The Company measures revenue, for the consideration to which the Company is expected to be entitled in exchange for transferring promised goods or services. Variable considerations are included in the transaction price when it is highly probable that there will be no significant reversal of the revenue in the future. The Company identifies the various performance obligations of the contract and allocates the transaction price to these performance obligations. Advances and pre-delivery payments (contract liabilities) are received in the normal course of business and are not considered to be a significant financing component as they are intended to protect the Company from the customer failing to complete its contractual obligations. Revenue from the sale of commercial aircraft is recognised at a point in time (i.e. at delivery of the aircraft). The Company estimates the amount of price concession granted by the Company’s engine suppliers to their customers as a reduction of both revenue and cost of sales. An aircraft can remain in storage under a bill-and-hold arrangement. In such cases, revenue is recognised when the requirements for the transfer of control under a bill-and-hold arrangement are fulfilled. Revenue from the sale of military aircraft, space systems and services — When control of produced goods or rendered services is transferred over time to the customer, revenue is recognised over time, i.e. under the percentage of completion method (“PoC” method). The Company transfers control over time when: - it produces a good with no alternative use and the Company has an irrevocable right to payment (including a reasonable margin) for the work completed to date, in the event of contract termination at the convenience of customers (e.g. Tiger contract); or - it creates a good which is controlled by the customer as the good is created or enhanced (e.g. Eurofighter contracts, some border security contracts, A400M development); or - the customer simultaneously receives and consumes the benefits provided by the Company (e.g. maintenance contracts). For the application of the over time method (PoC method), the measurement of progress towards complete satisfaction of a performance obligation is based on inputs (i.e. cost incurred). When none of the criteria stated above have been met, revenue is recognised at a point in time. For instance, revenue is recognised at the delivery of aircraft under IFRS 15 from the sale of military transport aircraft, from the A400M launch contract and most of NH90 serial helicopters’ contracts. Provisions for onerous contracts — The Company records provisions for onerous contracts when it becomes probable that the total contract costs will exceed total contract revenue. Before a provision for onerous contracts is recorded, the related assets under construction are tested for impairment and written-off if their net realisable value is below the book value. Onerous contracts are identified by monitoring the progress of the contract together with the underlying programme status. An estimate of the related contract costs is made, which requires significant and complex assumptions, judgements and estimates related to achieving certain performance standards (see “– Note 5: Key Estimates and Judgements”, “– Note 12: Revenue and Gross Margin” and “– Note 24: Provisions, Contingent Assets and Contingent Liabilities”). Research and development expenses — The costs for internally generated research are expensed when incurred. The costs for internally generated development are capitalised when: - the product or process is technically feasible and clearly defined (i.e. the critical design review is finalised); - adequate resources are available to successfully complete the development; - the benefits from the assets are demonstrated (a market exists or the internal usefulness is demonstrated) and the costs attributable to the projects are reliably measured; - the Company intends to produce and market or use the developed product or process and can demonstrate its profitability. Income tax credits granted for research and development activities are deducted from corresponding expenses or from capitalised amounts when earned. Capitalised development costs, are recognised either as intangible assets or, when the related development activities lead to the construction of specialised tooling for production (“jigs and tools”), or involve the design, construction and testing of prototypes and models, as property, plant and equipment. Capitalised development costs are generally amortised over the estimated number of units produced. If the number of units produced cannot be estimated reliably, they are amortised over the estimated useful life of the internally generated intangible asset (see “– Note 19: Intangible Assets”). Amortisation of capitalised development costs is recognised in cost of sales. 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. Inventories are measured at the lower of acquisition cost (generally the average cost) or manufacturing cost and net realisable value. Manufacturing costs comprise all costs that are directly attributable to the manufacturing process, such as direct material and labour, and production related overheads (based on normal operating capacity and normal consumption of material, labour and other production costs), including depreciation charges. Net realisable value is the estimated selling price in the ordinary course of the business less the estimated costs to complete the sale. 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. AIRBUS - FINANCIAL STATEMENTS 2024 - 13
Transactions in foreign currency, i.e. transactions in currencies other than the functional currency of an entity of the Company, are translated into the functional currency at the foreign exchange rate prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are remeasured into the functional currency at the exchange rate in effect at that date. Except when deferred in equity as qualifying cash flow hedges (see “– Note 37: Financial Instruments”), these foreign exchange remeasurement gains and losses are recognised, in line with the underlying item: - in profit before financial result and income taxes if the substance of the transaction is commercial (including sales financing transactions); and - in financial result for financial transactions. Non-monetary assets and liabilities denominated in foreign currencies that are stated at historical cost are translated into functional currency at the foreign exchange rate in effect at the date of the transaction. Translation differences on non-monetary financial assets and liabilities that are measured at fair value are reported as part of the fair value gain or loss. However, translation differences of non-monetary financial assets measured at fair value and classified as fair value through other comprehensive income (“OCI”) are included in accumulated other comprehensive income (“AOCI”). Hedge accounting — Most of the Company’s revenue is denominated in US dollar (“US$”), while a major portion of its costs are incurred in euro. The Company is significantly exposed to the risk of currency changes, mainly resulting from US$/€ exchange rates. Furthermore, the Company is exposed, though to a much lesser extent, to foreign exchange risk arising from costs incurred in currencies other than the euro and to other market risks such as interest rate risk, commodity price and equity price risk. In order to manage and mitigate those risks, the Company enters into derivative contracts. The Company applies hedge accounting to its derivative contracts whenever the relevant IFRS criteria can be met. Hedge accounting ensures that derivative gains or losses are recognised in profit or loss (mainly in revenue) in the same period that the hedged items or transactions affect profit or loss. The major portion of the Company’s derivative contracts is accounted for under the cash flow hedge model. The fair value hedge model is used only for certain interest rate derivatives. Derivative contracts which do not qualify for hedge accounting are accounted for at fair value through profit or loss; any related gains or losses being recognised in financial result. The Company’s hedging strategies and hedge accounting policies are described in more detail in “– Note 37: Financial Instruments”. Leases – The Company assesses whether a contract is, or contains, a lease, at inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases and leases of low value assets. The Company recognises right-of-use assets at the commencement date of the lease, when the underlying asset is available for use. The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. The Company presents right-of-use assets within “Property, plant and equipment” and lease liabilities within “Financing liabilities” and classifies the principal portion of lease payments within financing activities and the interest portion within operating activities. When the Company is the lessor, assets under operating leases are also included in “Property, plant and equipment”. Lease income from operating leases is recognised on a straight-line basis over the term of the lease (see “– Note 20: Property, Plant and Equipment” “– Note 36.3: Financing Liabilities”). 5. Key Estimates and Judgements The preparation of the Company’s Consolidated Financial Statements requires the use of estimates and assumptions. In preparing these Financial Statements, management exercises its best judgement based upon its experience and the circumstances prevailing at that time. The estimates and assumptions are based on available information and conditions at the end of the financial period presented and are reviewed on an ongoing basis. Key estimates and judgements that have a significant influence on the amounts recognised in the Company’s Consolidated Financial Statements are mentioned below: Revenue recognition for performance obligations transferred over time The PoC method is used to recognise revenue for performance obligations transferred over time. This method places considerable importance on accurate estimates at completion as well as on the extent of progress towards completion. For the determination of the progress of the performance obligations, significant estimates include total contract costs, remaining costs to completion, total contract revenue, contract risks and other judgements. The Company and its customer may agree to modify the scope or price of long-term contracts. Once the revised rights and obligations are agreed and enforceable, the Company estimates the change in the transaction price. The management of the segments continually review all estimates involved in such performance obligations and adjusts them as necessary (see “– Note 22: Contract Assets and Contract Liabilities, Trade Receivables and Trade Liabilities”). AIRBUS - FINANCIAL STATEMENTS 2024 - 14
Provisions — The evaluation of provisions, such as onerous contracts, program-related provisions and restructuring measures are based on best estimates. Onerous contracts are identified by monitoring the progress of the contract and the underlying programme performance. The associated estimates of the relevant contract costs require significant judgement related to performance achievements. Depending on the size and nature of the Company’s contracts and related programmes, the extent of assumptions, judgements and estimates in these monitoring processes differs. In particular, the introduction of commercial or military aircraft programmes (e.g. A400M) or major derivative aircraft programmes involves an increased level of estimates and judgements associated with the expected development, production and certification schedules and expected cost components (see “– Note 24: Provisions, Contingent Assets and Contingent Liabilities”). In view of overall commercial relationships, contract adjustments may occur, and must be considered on a case-by-case basis. Estimates and judgements are subject to change based on new information as contracts and related programmes progress. Furthermore, the complex design and manufacturing processes of the Company’s industry require challenging integration and coordination along the supply chain including an ongoing assessment of suppliers’ assertions which may additionally impact the outcome of these monitoring processes. A restructuring provision is recognised when the Company has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision is at the best estimate of the anticipated costs and includes only the direct expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the restructuring and not associated with the ongoing activities of the Company. Financial instruments fair value measurement using Level 3 inputs – The Company uses its judgement to select a valuation methodology and make assumptions in order to determine the fair value of financial instruments that are not traded in an active market and for which no inputs other than quoted prices are observable. Valuation techniques (including Discounted Cash Flow model) rely on market conditions available at the reporting period together with estimates derived from the Company's own data. Changes in assumptions may result in a significant change in the reported fair value measurement of these financial instruments (See “– Note 37.2: Carrying Amounts and Fair Values of Financial Instruments”). Non-current assets — Non-current other assets include payments to be made to Airbus by suppliers after aircraft delivery and are recorded as a reduction of cost of goods sold at the time of aircraft delivery. This valuation involves the use of judgement and is based on the best available estimate of the future aircraft operations, the pattern of future maintenance activity and escalation of costs of long-term contractual arrangement with suppliers. The impact of climate change is also considered when making these estimates. These future payments are discounted to reflect specific contractual terms and repayment profile. In making such estimates, Airbus relies on both management experience and industry regulations, however, these estimates can be subject to revision (see – "Note 26: Other Assets and Other Liabilities"). Hedge accounting — The hedge portfolio covers a large portion of the Company’s highly probable forecasted transactions derived from its commercial activities. The Company makes estimates and judgement in assessing the highly probable criteria of the forecasted transactions, in order to anticipate future events, as risk of future cancellations of orders (see “– Note 37: Financial Instruments”). Employee benefits — The Company accounts for pension and other post-retirement benefits in accordance with actuarial valuations. These valuations rely on statistical and other factors in order to anticipate future events. The actuarial assumptions may differ materially from actual developments mainly due to changing market and economic conditions and therefore result in a significant change in post-retirement employee benefit obligations and the related future expenses (see “– Note 31: Post-Employment Benefits”). Legal contingencies — The Company is party to litigations related to a number of matters as described in “– Note 38: Litigation and Claims”. The outcome of these matters may have a material effect on the financial position, results of operations or cash flows of the Company. Management regularly analyses current information concerning these matters and provides provisions for probable cash outflows, including the estimate of legal expenses to resolve the matters. Internal and external lawyers are used for these assessments. In making the decision regarding the need for provisions, management considers the degree of probability of an unfavourable outcome and the ability to make a sufficiently reliable estimate of the amount of loss. The filing of a suit or formal assertion of a claim against the Airbus companies or the disclosure of any such suit or assertion, does not automatically indicate that a provision may be appropriate. Income taxes — The Company operates and earns income in numerous countries and is subject to changing tax laws in multiple jurisdictions within these countries. Significant judgements are necessary in determining the worldwide income tax liabilities. Although management believes that it has made reasonable estimates about the final outcome of tax uncertainties, no assurance can be given that the final tax outcome of these matters will be consistent with what is reflected in the historical income tax provisions. At each end of the reporting period, the Company assesses whether the realisation of future tax benefits is probable to recognise deferred tax assets. This assessment requires the exercise of judgement on the part of management with respect to, among other things, benefits that could be realised from available tax strategies and future taxable income, as well as other positive and negative factors. The recorded amount of total deferred tax assets could be reduced, through valuation allowances recognition, if estimates of projected future taxable income and benefits from available tax strategies are lowered, or if changes in current tax regulations are enacted that impose restrictions on the timing or extent of the Company’s ability to utilise future tax benefits. The basis for the recoverability test of deferred tax assets is the same as the Company’s latest operative planning also taking into account certain qualitative aspects regarding the nature of the temporary differences. Qualitative factors include but are not limited to an entity’s history of planning accuracy, performance records, business model, backlog, existence of long-term contracts as well as the nature of temporary differences (see “– Note 17: Income Taxes”). Other subjects that involve assumptions and estimates are further described in the respective notes (see “– Note 8: Acquisitions and Disposals”, “– Note 19: Intangible Assets” and “– Note 22: Contract Assets, Contract Liabilities and Trade Receivables, and Trade Liabilities”). AIRBUS - FINANCIAL STATEMENTS 2024 - 15
6. Change in Accounting Policies and Disclosures The accounting policies applied by the Company in preparation of its 2024 year-end Consolidated Financial Statements are the same as applied for the previous year. Amendments, improvements to and interpretations of standards effective from 1 January 2024 have no material impact on the Consolidated Financial Statements except for the ones mentioned below. New, Revised or Amended IFRSs Applied from 1 January 2024 Amendments to IAS 7: Statement of Cash Flows and IFRS 7: Financial Instruments: Disclosures – Supplier Finance Arrangements These amendments clarify the characteristics of Supplier Finance Arrangements and require disclosures to enhance the transparency on these arrangements and their effects on an entity’s liabilities, cash flows and exposure to liquidity risk. As a result, the Company has provided additional disclosures about its Supplier Finance Arrangements (see “– Note 22. Contract Assets and Contract Liabilities, Trade Receivables and Trade Liabilities”). New, Revised or Amended IFRSs Issued but not yet Applied A number of new or revised standards, amendments and improvements to standards as well as interpretations are not yet effective for the year ended 31 December 2024 and have not been applied in preparing these Consolidated Financial Statements and early adoption is not planned: Standards and related amendments IASB effective date for annual reporting periods beginning on or after Endorsement status Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability 1 January 2025 Endorsed Annual Improvements Volume 11 1 January 2026 Not yet endorsed Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments 1 January 2026 Not yet endorsed Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature-dependent Electricity 1 January 2026 Not yet endorsed IFRS 18: Presentation and Disclosure in Financial Statements 1 January 2027 Not yet endorsed IFRS 19: Subsidiaries without Public Accountability : Disclosures 1 January 2027 Not yet endorsed 2.2 Airbus Structure 7. Scope of Consolidation Consolidation The Company’s Consolidated Financial Statements include the Financial Statements of Airbus SE and all material subsidiaries controlled by the Company. The Company’s subsidiaries prepare their Financial Statements at the same reporting date as the Company’s Consolidated Financial Statements (see “– 2.9 Appendix “Simplified Airbus Structure” chart”). Subsidiaries are entities controlled by the Company including so-called structured entities, which are created to accomplish a narrow and well-defined objective. They are fully consolidated from the date control commences to the date control ceases. The assessment of control of a structured entity is performed in three steps. In a first step, the Company identifies the relevant activities of the structured entities (which may include managing lease receivables, managing the sale or re-lease at the end of the lease and managing the sale or re-lease on default) and in a second step, the Company assesses which activity is expected to have the most significant impact on the structured entities’ return. Finally, the Company determines which party or parties control this activity. The Company’s interests in equity-accounted investees comprise investments in associates and joint ventures. Such investments are accounted for under the equity method and are initially recognised at cost. The Financial Statements of the Company’s investments in associates and joint ventures are generally prepared for the same reporting period as for the parent company. Adjustments are made where necessary to bring the accounting policies and accounting periods in line with those of the Company. AIRBUS - FINANCIAL STATEMENTS 2024 - 16
PERIMETER OF CONSOLIDATION 31 December (Number of companies) 2024 2023 Fully consolidated entities 183 175 Investments accounted for under the equity method in joint ventures 59 63 in associates 22 21 Total 264 259 8. Acquisitions and Disposals Business combinations are accounted for using the acquisition method, as at the acquisition date, which is the date on which control is transferred to the Company. The determination of the fair value of the acquired assets and the assumed liabilities which are the basis for the measurement of goodwill requires key estimates. Land, buildings and equipment are usually independently appraised while marketable securities are valued at market prices. If intangible assets are identified, depending on the type of intangible asset and the complexity of determining its fair value, the Company either consults with an independent external valuation expert or develops the fair value internally, using appropriate valuation techniques which are generally based on a forecast of the total expected future net cash flows. These evaluations are linked closely to the assumptions made by management regarding the future performance of the assets concerned and the discount rate applied. Loss of control, loss of joint control, loss of significant influence — Upon loss of control of a subsidiary, the assets and liabilities related to the subsidiary and the carrying amount of the subsidiary’s non-controlling interest are derecognised. Any gain or loss arising from the loss of control is recognised within other income or other expenses in the Consolidated Income Statement. If the Company retains any interest in the previous subsidiary, such interest is measured at fair value at the date the control is lost. Any gain or loss arising from the disposal of investment accounted for under the equity method is recognised within share of profit from investments. Assets and liabilities of a material subsidiary for which a loss of control is highly probable and the Company has received sufficient evidence that the loss of control will occur in the 12 months after the classification are classified as assets and liabilities held for sale. These assets and liabilities are presented after elimination of intercompany transactions. When the loss of significant influence or the loss of joint control of an investment accounted for under the equity method is highly probable and is expected to occur in the coming 12 months, this associate or joint venture is classified as an asset held for sale. 8.1 Acquisitions On 16 January 2024, Airbus U.S. Space & Defense, Inc. acquired from Eutelsat OneWeb its 50% share of the Airbus OneWeb Satellites (“AOS”) joint venture, obtaining control and making Airbus U.S. Space & Defense the 100% owner of AOS and the satellite manufacturing facility in Merritt Island, Florida. The Airbus OneWeb Satellites joint venture, established in 2016, built more than 600 satellites for the OneWeb first generation constellation, currently operating onorbit and qualifies as a business as defined in IFRS 3. The consideration transferred includes cash payment to Eutelsat OneWeb at the acquisition date, the remeasurement of the 50% previously held equity interest in AOS at fair value and the settlement of pre-existing relationships. A gain of € 51 million related to the step-up of the previously 50% held equity interest at fair value was recognised as of 31 March 2024. Following the finalization of the purchase price allocation, definitive goodwill was recognised in an amount of € 83 million reflecting the expected future synergies from combining the space operations of AOS with Airbus Defence and Space. The oneyear window period for the completion of the purchase price allocation ended in January 2025. On 15 January 2024, Airbus Helicopters announced having finalised the agreement to acquire Aerovel, the Flexrotor maker, a small tactical unmanned aerial system (“UAS”) designed for intelligence, surveillance, target acquisition and reconnaissance (“ISTAR”) missions over land and sea. Aerovel, based in Bingen (Washington D.C.), will remain a US-owned company and will work with Airbus US Space and Defense, Inc., a Special Security Agreement (“SSA”) company, which will manage any US Department of Defense (“DoD”) business as a prime contractor. The acquisition was completed on 30 April 2024, after all the requirements precedent such as regulatory approvals and customary closing conditions were met. The total consideration includes a fixed portion paid plus an earn-out clause with expected future payments over 2024 through 2028 based on performance conditions. A preliminary goodwill of € 123 million was recognised as of 30 June 2024, it represents the expected future synergies and business opportunities. The one-year window period for the completion of the purchase price allocation will end in April 2025. On 4 September 2024, Airbus Defence and Space finalised the acquisition of Infodas, a German company that provides cybersecurity and IT solutions in the public sector including for defence and critical infrastructures, and which is now becoming an Airbus subsidiary. This follows receipt of the required regulatory approvals. This acquisition supports Airbus’ strategic ambition to strengthen its cybersecurity portfolio for the benefit of its European and global customers. With the exponential growth of cyber threats, along with the increasing digitalisation and connectivity of defence and aerospace products and systems, cybersecurity is an important component of Airbus’ development. AIRBUS - FINANCIAL STATEMENTS 2024 - 17
A preliminary goodwill of € 76 million was recognised as of 31 December 2024, reflecting the expected future synergies and business opportunities. The one-year window period for the completion of the purchase price allocation will end in September 2025. As of 31 December 2024, these acquisitions led to the recognition of € 106 million of net assets acquired measured at fair value at acquisition date and a total consideration transferred (net of cash) amounting to € 370 million (2023: € 65 million). On 30 June 2024, the Company entered into a binding term sheet agreement with Spirit AeroSystems in relation to a potential acquisition of major activities related to Airbus, notably the production of A350 fuselage sections in Kinston, North Carolina, U.S., and St. Nazaire, France; of the A220’s wings and mid-fuselage in Belfast, Northern Ireland, and Casablanca, Morocco; as well as of the A220 pylons in Wichita, Kansas, U.S. With this agreement, the Company aims to ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward, both operationally and financially, for the various Airbus work packages that Spirit AeroSystems is responsible for today. The Company will be compensated by payment of US$ 559 million from Spirit AeroSystems, for a nominal consideration of US$ 1.00, subject to adjustments including based on the final transaction perimeter. Entering into definitive agreements remains subject to an ongoing due diligence process. As of 31 December 2024, no impact has been accounted for in the Company’s Consolidated Financial Statements. 8.2 Assets and Disposal Groups Classified as Held for Sale As of 31 December 2024, the Company continues intending to divest one of its subsidiaries. The assets and liabilities relating to this disposal are classified as held for sale for a net amount of € -14 million as of 31 December 2024. The transaction is expected to be closed in 2025. 9. Investments Accounted for under the Equity Method 31 December (In € million) 2024 2023 Investments in joint ventures 1,979 1,830 Investments in associates 454 398 Total 2,433 2,228 Investments accounted for under the equity method increased by € +205 million to € 2,433 million (2023: € 2,228 million). They mainly include the equity investments in ArianeGroup, MBDA and ATR GIE. 9.1 Investments in Joint Ventures The joint ventures in which the Company holds an interest are structured in separate incorporated companies. Under joint arrangement agreements, unanimous consent is required from all parties to the agreement for all relevant activities. The Company and its partners have rights to the net assets of these entities through the terms of the contractual agreements. The Company’s interest in its joint ventures, accounted for under the equity method, is stated in aggregate in the following table: (In € million) 2024 2023 Carrying amount of the investments at 1 January 1,830 1,686 New joint ventures 0 109 Share of results from continuing operations 293 211 Share of other comprehensive income 43 (15) Dividends received during the year (168) (136) Capital increase (decrease) 9 (17) Changes in consolidation (19) 0 Others (9) (8) Carrying amount of the investments at 31 December 1,979 1,830 The Company’s individually material joint ventures are ArianeGroup, Paris (France), MBDA S.A.S., Paris (France), and ATR GIE, Blagnac (France), as parent companies of their respective groups. These joint venture companies are not publicly listed. ArianeGroup is a 50% joint venture between the Company and Safran. ArianeGroup inherits a rich portfolio of products and services, enabling it to deliver innovative and competitive solutions to numerous customers around the world. On 9 July 2024, the European Space Agency (“ESA”) successfully launched the Ariane 6 inaugural flight from Europe’s Spaceport in Kourou, French Guiana. ArianeGroup, Arianespace and their partners are now preparing for the launcher’s second flight which is planned in the first three months of 2025. The Company holds a 37.5% stake in MBDA which is 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 and maritime superiority, as well as advanced technological solutions for battlefield engagement. AIRBUS - FINANCIAL STATEMENTS 2024 - 18
ATR GIE manufactures advanced turboprop aircraft. It is a 50% joint venture between Leonardo and the Company. Both Leonardo and the Company provide airframes which are assembled by ATR GIE in France. The members of ATR GIE are legally entitled exclusively to the benefits and are liable for the commitments of the joint venture. ATR GIE is obliged to transfer its cash to each member of the joint venture. The following table summarises financial information for ArianeGroup, MBDA and ATR GIE based on their Consolidated Financial Statements prepared in accordance with IFRS: ArianeGroup MBDA ATR GIE (In € million) 2024 2023 2024 2023 2024 2023 Revenue 2,475 2,298 4,913 4,451 1,101 1,033 Depreciation and amortisation (143) (122) (193) (192) (7) (41) Interest income 35 39 266 168 0 0 Interest expense (13) (16) (31) (13) 0 0 Income tax (14) 4 (183) (146) (4) (9) Profit (loss) from continuing operations 3 (32) 588 498 (23) 24 Other comprehensive income 1 7 46 (49) 0 0 Total comprehensive income (100%) 4 (26) 634 449 (23) 24 Non-current assets 6,055 6,110 3,621 3,022 197 244 Current assets 7,153 7,362 12,766 10,111 742 719 thereof cash and cash equivalents 1,523 1,219 6,125 4,740 30 9 Non-current liabilities 1,289 1,116 88 166 84 95 thereof non-current financial liabilities (excluding trade and other payables and provisions) 324 334 7 17 0 0 Current liabilities 7,715 8,155 14,434 11,330 670 686 thereof current financial liabilities (excluding trade and other payables and provisions) 76 85 741 749 0 0 Total equity (100%) 4,205 4,201 1,865 1,637 185 182 Equity attributable to the equity owners of the parent 4,220 4,217 1,865 1,637 185 182 Non-controlling interests (15) (16) 0 0 0 0 ArianeGroup MBDA ATR GIE (In € million) 2024 2023 2024 2023 2024 2023 The Company’s interest in equity on investee 2,109 2,108 699 614 93 91 Goodwill 244 244 282 282 0 0 PPA adjustments, net of tax (1,728) (1,718) 0 0 0 0 Contingent liability release adjustment (36) (36) 0 0 0 0 Fair value adjustments and modifications for differences in accounting policies (81) (87) (8) (8) 0 0 Elimination of downstream inventory 2 2 0 0 0 0 Other 0 0 0 0 0 0 Carrying amount of the investment at 31 December 510 513 973 888 93 91 The development of these investments is as follows: ArianeGroup MBDA ATR GIE (In € million) 2024 2023 2024 2023 2024 2023 Carrying amount of the investment at 1 January 513 523 888 847 91 93 Share of results from continuing operations (3) (13) 221 186 (12) 12 Share of other comprehensive income 0 3 17 (20) 24 (2) Dividends received during the year 0 0 (153) (125) 0 0 Capital increase (decrease) 0 0 0 0 0 (16) Changes in consolidation 0 0 0 0 0 0 Others 0 0 0 0 (10) 4 Carrying amount of the investment at 31 December 510 513 973 888 93 91 The Company’s share of contingent liabilities and other commitments as of 31 December 2024 relating to MBDA is € 525 million (2023: € 438 million). AIRBUS - FINANCIAL STATEMENTS 2024 - 19
9.2 Investments in Associates The Company’s interests in associates, accounted for under the equity method, are stated in aggregate in the following table: (In € million) 2024 2023 Carrying amount of the investment at 1 January 398 381 New associates 17 0 Share of results from continuing operations 57 56 Share of other comprehensive income 24 (4) Dividends received during the year (28) (15) Capital increase (decrease) 0 (23) Changes in consolidation 0 0 Others (14) 3 Carrying amount of the investment at 31 December 454 398 10. Related Party Transactions (In € million) Sales of goods and services and other income Purchases of goods and services and other expenses Receivables at 31 December Liabilities at 31 December Loans granted / Other receivables due at 31 December Loans received / Other liabilities due at 31 December 2024 Total transactions with associates 183 172 16 37 69 0 Total transactions with joint ventures 3,023 360 1,172 1,672 0 2,840 2023 Total transactions with associates 354 174 4 35 81 0 Total transactions with joint ventures 2,868 319 1,249 1,563 0 2,143 Transactions with unconsolidated subsidiaries are immaterial to the Company’s Consolidated Financial Statements. As of 31 December 2024, the Company granted guarantees of € 104 million to NHI Industries in France (2023: € 104 million). For information regarding the funding of the Company’s pension plans, which are considered as related parties, see “– Note 31: Post-Employment Benefits”. The information relative to compensation and benefits granted to Members of the Executive Committee and Board of Directors are disclosed in “– Note 33: Remuneration”. 2.3 Segment Information The Company operates in three reportable 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 passenger aircraft of more than 100 seats, freighter aircraft and regional turboprop aircraft and aircraft components; aircraft conversion and related services. 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; helicopter related services. - Airbus Defence and Space — Air Power design, development, delivery and support of manned and unmanned military air systems and their associated services. Space Systems design, development, delivery, and support of a broad 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 and space launcher systems. AIRBUS - FINANCIAL STATEMENTS 2024 - 20
11. Segment Information The following tables present information with respect to the Company’s business segments. As a rule, inter-segment transfers are carried out on an arm’s length basis. Inter-segment sales predominantly take place between Airbus and Airbus Defence and Space and between Airbus Helicopters and Airbus. Consolidation effects are reported in the column “Eliminations”. The Company uses EBIT as a key indicator of its economic performance. Business segment information for the year ended 31 December 2024 is as follows: (In € million) Airbus Airbus Helicopters Airbus Defence and Space Eliminations Consolidated Airbus Total revenue 50,646 7,941 12,082 0 70,669 Inter-segment revenue (1,007) (345) (87) 0 (1,439) Revenue 49,639 7,596 11,995 0 69,230 thereof sales of goods at a point in time 44,630 3,452 3,866 0 51,948 sales of goods over time 2 648 4,113 0 4,763 services, including sales of spare parts 5,007 3,496 4,016 0 12,519 Profit before financial result and income taxes (EBIT) 5,133 818 (656) 9 5,304 thereof depreciation and amortisation (1,640) (215) (998) 0 (2,853) research and development expenses (2,676) (338) (276) 40 (3,250) share of profit from investments accounted for under the equity method 65 5 280 0 350 additions to other provisions (1) (807) (586) (1,708) 10 (3,091) Interest result (98) Other financial result 219 Income taxes (1,347) Profit for the period 4,078 (1) See “– Note 24: Provisions, Contingent Assets and Contingent Liabilities”. Business segment information for the year ended 31 December 2023 is as follows: (In € million) Airbus Airbus Helicopters Airbus Defence and Space Eliminations Consolidated Airbus Total revenue 47,763 7,337 11,495 0 66,595 Inter-segment revenue (787) (300) (62) 0 (1,149) Revenue 46,976 7,037 11,433 0 65,446 thereof sales of goods at a point in time 42,756 3,226 3,530 0 49,512 sales of goods over time 0 536 4,048 0 4,584 services, including sales of spare parts 4,220 3,275 3,855 0 11,350 Profit before financial result and income taxes (EBIT) 3,610 717 220 56 4,603 thereof depreciation and amortisation (1,597) (192) (453) 0 (2,242) research and development expenses (2,698) (335) (275) 51 (3,257) share of profit from investments accounted for under the equity method 17 4 245 1 267 additions to other provisions (1,076) (479) (1,181) 3 (2,733) Interest result (25) Other financial result 191 Income taxes (1,156) Profit for the period 3,613 - Airbus EBIT increased by € +1,523 million to € 5,133 million (2023: € 3,610 million) mainly reflecting higher aircraft deliveries of 766 aircraft (2023: 735 aircraft) and a positive foreign exchange impact year-on-year (largely related to last year’s € -1.1 billion US dollar Working Capital mismatch impact due to the phasing impact arising from the difference between transaction date and delivery date). - Airbus Helicopters EBIT increased by € +101 million to € 818 million (2023: € 717 million) mainly reflecting higher deliveries, a solid performance across programmes and services growth. AIRBUS - FINANCIAL STATEMENTS 2024 - 21
- Airbus Defence & Space EBIT decreased by € -876 million to € -656 million (2023: € 220 million). In 2024, the Space Systems management team performed the extensive technical and business reviews of its critical programmes and updated its assessment of key assumptions and estimates related to the remaining revenue and costs for contracts with performance obligations satisfied over time (see “– Note 5: Key Estimates and Judgements”). As of 30 June 2024, the Company recorded a charge amounting to € -1.0 billion. In the last quarter 2024, and as planned, the Company completed the in-depth technical review of its Space programmes, notably with a major programme that remained to be fully assessed. This resulted in a charge of € -0.3 billion leading to a total charge of € -1.3 billion in 2024 (2023: € -0.6 billion). This charge is mainly related to updated assumptions on schedules, workload, sourcing, risks and costs over the lifetime of certain telecommunications, navigation and observation programmes and reflects the current best view of estimates at completion. In 2024, the Company delivered seven A400M aircraft including the first for Kazakhstan, an export customer and ninth country to operate the aircraft. Seventeen retrofitted aircraft handed over to the customer. Major achievement has been reached with the launching customers by signing the contract amendment that includes additional capabilities and closes the development path for the remaining ones, including the achievement of the intermediate Standard Operating Capability (“SOC”) 2.8. In 2023, an update of the contract estimate at completion was performed and a net charge of € 41 million recorded. In 2024 an additional update of the contract estimate at completion was performed and a net charge of € 121 million recorded, reflecting mainly updated assumptions regarding the new contract amendment with the Launch Nations and OCCAR (“Organisation for Joint Armament Co-operation”) and risk in production plan. In light of uncertainties surrounding the level of aircraft orders, the company continues to assess the potential impact on the programme's manufacturing activities. Risks on the qualification of technical capabilities and associated costs remain stable with no major variation compared to 2023. Segment capital expenditure 31 December (In € million) 2024 2023 Airbus 2,737 2,053 Airbus Helicopters 269 221 Airbus Defence and Space 663 777 Eliminations 0 0 Total capital expenditure (1) 3,669 3,051 (1) Excluding expenditure for leased assets. Segment assets 31 December (In € million) 2024 2023 Airbus 76,641 70,116 Airbus Helicopters 13,733 12,531 Airbus Defence and Space 22,582 20,952 Eliminations (14,836) (14,053) Total segment assets 98,120 89,546 Unallocated Deferred and current tax assets 4,168 3,994 Securities 11,861 8,809 Cash and cash equivalents 15,003 16,469 Assets classified as held for sale 61 53 Total assets 129,213 118,871 Revenue by geographical areas is disclosed in “– Note 12: Revenue and Gross Margin”. Property, plant and equipment by geographical areas is disclosed in “– Note 20: Property, Plant and Equipment”. Segment order backlog 31 December 2024 2023 (In € million) (in %) (In € million) (in %) Airbus 558,925 89 490,812 89 Airbus Helicopters 24,064 4 21,525 4 Airbus Defence and Space 46,803 7 42,195 8 Eliminations (875) 0 (639) 0 Total 628,917 100 553,893 100 As of 31 December 2024, the total backlog represents the aggregate amount of the 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. As a result, contractual rebates, engines concessions, and variable considerations are taken into consideration for measurement. Contracts stipulated in a currency different than the presentation currency are translated to euro using the spot rate as of 31 December 2024 and 2023 respectively. Adjustments to the value of the backlog could result from changes in the transaction price. AIRBUS - FINANCIAL STATEMENTS 2024 - 22
Segment order backlog 31 December (In € million) 2024 2023 Opening order backlog of the period 553,893 449,241 Net order intake 103,509 186,493 Revenues (69,230) (65,446) Others (1) 40,745 (16,397) Total 628,917 553,893 (1) Others are mainly reflecting adjustments related to FX revaluation, assessment of the recoverability and price adjustments. Order backlog valued at € 629 billion at the end of 2024 (2023: € 554 billion) with a net order intake amounting to € 103.5 billion (2023: € 186.5 billion), a revenues to € 69.2 billion (2023: € 65.4 billion) and adjustments mainly reflecting foreign exchange revaluation to € 40.7 billion (2023: € -16.4 billion). The increase mainly reflects a book to bill above one and the strengthening of the US dollar. In Airbus, total gross commercial aircraft orders amount to 878 units (2023: 2,319 units) with net orders of 826 aircraft after cancellations (2023: 2,094 aircraft) and total deliveries amount to 766 units (2023: 735 units) as of 31 December 2024. The backlog will mainly be released into revenue over a period of eight years with approximately 9% of the Airbus backlog in units expected to be converted into revenues in 2025. 2.4 Airbus Performance 12. Revenue and Gross Margin Revenue increased by € +3,784 million to € 69,230 million (2023: € 65,446 million). The increase is mainly driven by higher aircraft deliveries of 766 aircraft (2023: 735 aircraft), paired with strong revenue growth in Air Power business and a solid performance in Airbus Helicopters services as well as higher deliveries. Revenue by geographical areas based on the location of the customer is as follows: (In € million) 2024 2023 Europe 27,804 25,733 Asia-Pacific 17,769 18,733 North America 16,430 13,784 Middle East 3,101 3,933 Latin America 1,723 1,737 Other countries 2,403 1,526 Total 69,230 65,446 The gross margin increased by € +631 million to € 10,675 million compared to € 10,044 million in 2023. It is mainly due to higher volume in Commercial aircraft, a positive foreign exchange impact year on year and a solid performance in Airbus Helicopters paired with higher deliveries. This is partly offset by the charge related to the estimates at completion (“EAC”) update of certain Space programmes. The gross margin rate remained stable at 15.4%. 13. Research and Development Expenses Research and development expenses remained stable at € 3,250 million compared to € 3,257 million in 2023. Research and development expenses mainly reflect the development of latest generation commercial aircraft programmes, including the A321XLR, A350 Freighter and activities to prepare technologies of the future. 14. Other Income and Other Expenses Other income increased by € +60 million to € 303 million compared to € 243 million in 2023. This includes a gain related to the step-up of the previously held equity interest at fair value in Airbus OneWeb Satellites. Other expenses remained stable at € -197 million compared to € -209 million in 2023. AIRBUS - FINANCIAL STATEMENTS 2024 - 23
15. Share of Profit from Investments Accounted for under the Equity Method and Other Income from Investments (In € million) 2024 2023 Share of profit from investments in joint ventures 293 211 Share of profit from investments in associates 57 56 Share of profit from investments accounted for under the equity method 350 267 Other income from investments 44 36 Share of profit from investments under the equity method and other income from investments increased by € +91 million to € 394 million compared to € 303 million in 2023, mainly linked to higher share of result from the Company’s joint ventures (see “Note 9.1 – Investments in Joint Ventures”). 16. Total Financial Result Interest income derived from the Company’s asset management and lending activities is recognised as interest accrues, using the effective interest rate method. (In € million) 2024 2023 Interest income 802 728 Interest expense (900) (753) thereof Interests on European Governments’ refundable advances (172) (120) Total interest result (98) (25) Change in fair value measurement of financial instruments (190) 39 Foreign exchange translations on monetary items 272 37 Unwinding of discounted provisions 1 (3) Others 136 118 Total other financial result 219 191 Total 121 166 . Total financial result decreased by € -45 million to € 121 million compared to € 166 million in 2023. The financial result mainly reflects the revaluation of certain equity investments (see “– Note 21: Other Investments and Other LongTerm Financial Assets”) and the evolution of the US dollar, partially offset by the interest result and the revaluation of financial instruments (see “– Note 21: Other Investments and Other LongTerm Financial Assets”). 17. Income Taxes The expense for income taxes is comprised of the following: (In € million) 2024 2023 Current tax expense (1,081) (892) thereof global minimum top-up tax (1) 0 Deferred tax expense (266) (264) Total (1,347) (1,156) The Company is subject to the global minimum top-up tax under Pillar Two tax legislation. It recognised a current tax expense of € 1 million related to the top-up tax (2023: € 0 million) which is levied on the Company. The Company has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred. Main income tax rates and main changes impacting the Company: (Rate in %) 2023 2024 2025 > 2026 Netherlands 25.80 25.80 25.80 25.80 France (1) 25.83 25.83 25.83 25.83 Germany 30.00 30.00 30.00 30.00 Spain 25.00 25.00 25.00 25.00 UK 25.00 25.00 25.00 25.00 (1) France's 2025 finance bill includes an exceptional surtax on corporate income tax liabilities for companies with a turnover greater than € 3 billion for the fiscal year ending on 31 December 2025. The effective tax rate for 2025 would increase to 36.13%. The finance bill adopted by Parliament on 6 February 2025 is expected to be enacted in the next weeks, following a review by the French Constitutional Council. AIRBUS - FINANCIAL STATEMENTS 2024 - 24
The following table shows a reconciliation from the theoretical income tax (expense) using the Dutch corporate tax rate to the reported income tax (expense): (In € million) 2024 2023 Profit before income taxes 5,425 4,769 Corporate income tax rate 25.8% 25.8% Expected (expense) for income taxes (1,400) (1,230) Effects from tax rate differentials / Change of tax rate (81) (45) Capital gains and losses on disposals / mergers (5) 20 Income from investment and associates 104 57 Tax credit 38 48 Change in valuation allowances (1) (8) (67) Tax contingencies (138) 76 Other non-deductible expenses and tax-free income 143 (15) Reported tax (expense) (1,347) (1,156) (1) Reassessments of the recoverability of deferred tax assets based on future taxable profits. The income tax expense amounts to € -1,347 million (2023: € -1,156 million) and corresponds to an effective income tax rate of 24.8%. This is related to the impact of equity consolidated companies, a revaluation of certain investment as well as a minor net release of deferred tax impairment. This is partly offset by an update of provisions for tax risks. As the Company controls the timing of the reversal of temporary differences associated with its subsidiaries (usually referred to as “outside basis differences”) arising from yet undistributed profits and changes in foreign exchange rates, it does not recognise a deferred tax liability. For temporary differences arising from investments in associates the Company recognises deferred tax liabilities. The rate used reflects the assumptions that these differences will be recovered from dividend distribution unless a management resolution for the divestment of the investment exists at the closing date. For joint ventures, the Company assesses its ability to control the distribution of dividends based on existing shareholder agreements and recognises deferred tax liabilities accordingly. As of 31 December 2024, the aggregate amount of temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements, for which deferred tax liabilities have not been recognised, amounts to € 244 million (2023: € 230 million). Deferred taxes on net operating losses (“NOLs”), trade tax loss carry forwards and tax credit carry forwards are: (In € million) France Germany Spain UK Other countries 31 December 2024 31 December 2023 NOL 62 1,996 76 1,421 5,047 8,602 8,533 Trade tax loss carry forwards 0 2.488 0 0 0 2,488 3,108 Tax credit carry forwards 0 0 322 0 0 322 216 Tax effect 16 668 217 356 1,268 2,525 2,548 Valuation allowances (15) (591) (82) (46) (1,211) (1,945) (1,617) Deferred tax assets on NOLs and tax credit carry forwards 1 77 135 310 57 580 931 NOLs, capital losses and trade tax loss carry forwards are indefinitely usable under certain restrictions in France, Germany, the UK and Spain. They are usable for 20 years in Canada. In Spain, R&D tax credit carry forwards will expire after 18 years. Roll forward of deferred tax: (In € million) 2024 2023 Net deferred tax assets at 1 January 3,087 4,519 Deferred tax expense in income statement (266) (264) Deferred tax recognised directly in AOCI 485 (915) Deferred tax on remeasurement of the net defined benefit pension plans (136) (240) Others 64 (13) Net deferred tax assets at 31 December 3,234 3,087 Details of deferred tax recognised cumulatively in other comprehensive income are as follows: (In € million) 2024 2023 Financial assets at fair value through OCI (20) (35) Cash flow hedges 1,746 1,276 Deferred tax on remeasurement of the net defined benefit pension plans 1,430 1,566 Total 3,156 2,807 AIRBUS - FINANCIAL STATEMENTS 2024 - 25
Deferred income taxes as of 31 December 2024 are related to the following assets and liabilities: 1 January 2024 Other movements Movement through income statement 31 December 2024 (In € million) Deferred tax assets (liabilities) OCI / IAS 19 Others (1) R&D tax credits Deferred tax benefit (expense) Deferred tax assets (liabilities) Intangible assets (437) 0 (32) 0 57 (412) Property, plant and equipment (104) 0 8 0 (144) (240) Investments and other long-term financial assets 1,697 0 33 0 113 1,843 Inventories 3,185 0 3 0 (317) 2,871 Receivables and other assets (1,665) (24) 111 0 (2,063) (3,641) Prepaid expenses (1) 0 0 0 (2) (3) Provisions for retirement plans (364) (186) (5) 0 (37) (592) Other provisions 116 0 111 0 7 234 Liabilities 167 469 (134) 0 2,239 2,741 Deferred income (184) 0 0 0 (2) (186) NOLs and tax credit carry forwards 2,548 0 107 (19) (111) 2,525 Deferred tax assets (liabilities) before offsetting 4,958 259 200 (19) (258) 5,140 Valuation allowances on deferred tax assets (1,871) 90 (126) 9 (8) (1,906) Net deferred tax assets (liabilities) 3,087 349 74 (10) (266) 3,234 (1) “Others” mainly comprises changes in the consolidation scope and foreign exchange rate effects. Deferred income taxes as of 31 December 2023 are related to the following assets and liabilities: 1 January 2023 Other movements Movement through income statement 31 December 2023 (In € million) Deferred tax assets (liabilities) OCI / IAS 19 Others (1) R&D tax credits Deferred tax benefit (expense) Deferred tax assets (liabilities) Intangible assets (287) 0 3 0 (153) (437) Property, plant and equipment (1,046) 0 (2) 0 944 (104) Investments and other long-term financial assets 1,423 1 0 0 273 1,697 Inventories 2,642 0 0 0 543 3,185 Receivables and other assets (1,414) (70) (145) 0 (36) (1,665) Prepaid expenses 10 0 0 0 (11) (1) Provisions for retirement plans 302 (298) (2) 0 (366) (364) Other provisions (53) 0 (7) 0 176 116 Liabilities 2,500 (925) 84 0 (1,492) 167 Deferred income (33) 0 (1) 0 (150) (184) NOLs and tax credit carry forwards 2,506 0 (24) (9) 75 2,548 Deferred tax assets (liabilities) before offsetting 6,550 (1,292) (94) (9) (197) 4,958 Valuation allowances on deferred tax assets (2,031) 137 58 32 (67) (1,871) Net deferred tax assets (liabilities) 4,519 (1,155) (36) 23 (264) 3,087 (2) “Others” mainly comprises changes in the consolidation scope and foreign exchange rate effects. 18. Earnings per Share 2024 2023 Profit for the period attributable to equity owners of the parent (Net income) € 4,232 million € 3,789 million Weighted average number of ordinary shares 789,961,671 788,720,779 Basic earnings per share € 5.36 € 4.80 AIRBUS - FINANCIAL STATEMENTS 2024 - 26
Diluted earnings per share – The Company’s dilutive potential ordinary shares are equity-settled Performance Shares relating to Long-Term Incentive Plans (“LTIP”). In 2024, a total of 1,029,406 equity-settled Performance Shares was considered in the calculation of diluted earnings per share. LTIP 2024 plan has been excluded from the calculation because of its antidilutive effect. 2024 2023 Profit for the period attributable to equity owners of the parent (Net income), adjusted for diluted calculation € 4,232 million € 3,789 million Weighted average number of ordinary shares (diluted) 790,991,077 789,760,599 Diluted earnings per share € 5.35 € 4.80 2.5 Operational Assets and Liabilities 19. Intangible Assets Intangible assets comprise (i) goodwill (see “– Note 7: Scope of Consolidation”), (ii) capitalised development costs (see “– Note 4: Material Accounting Policies”) and (iii) other intangible assets, e.g. internally developed software and acquired intangible assets. Intangible assets with finite useful lives are generally amortised on a straight-line basis over their respective estimated useful lives (three to ten years) to their estimated residual values. 31 December 2024 and 2023 comprise the following: 31 December 2024 31 December 2023 (In € million) Gross amount Amortisation / Impairment Net book value Gross amount Amortisation / Impairment Net book value Goodwill 14,494 (1,045) 13,449 14,183 (1,042) 13,141 Capitalised development costs 3,631 (2,000) 1,631 3,165 (1,459) 1,706 Other intangible assets 5,630 (3,531) 2,099 5,305 (3,223) 2,082 Total 23,755 (6,576) 17,179 22,653 (5,724) 16,929 Net Book Value (In € million) Balance at 1 January 2024 Exchange differences Additions Changes in consolidation scope Reclassi- fication Disposals Amortisation / Impairment Balance at 31 December 2024 Goodwill 13,141 26 199 83 0 0 0 13,449 Capitalised development costs 1,706 21 450 0 11 (1) (556) 1,631 Other intangible assets 2,082 89 190 70 9 (18) (323) 2,099 Total 16,929 136 839 153 20 (19) (879) 17,179 (In € million) Balance at 1 January 2023 Exchange differences Additions Changes in consolidation scope Reclassi- fication Disposals Amortisation / Impairment Balance at 31 December 2023 Goodwill 13,165 (12) 0 (13) 0 0 0 13,141 Capitalised development costs 1,482 2 377 0 8 0 (164) 1,706 Other intangible assets 2,121 (52) 206 22 24 (8) (230) 2,082 Total 16,768 (62) 583 9 32 (8) (394) 16,929 Intangible assets increased by € +250 million to € 17,179 million (2023: € 16,929 million). Intangible assets mainly relate to goodwill of €13,449 million (2023: € 13,141 million). Based on management’s best estimate, there is no impact on the useful life of capitalised development costs resulting from the Company’s journey towards sustainable aerospace (see “– Note 3: Climate Impacts”). Capitalised Development Costs The Company has capitalised development costs in the amount of € 1,631 million as of 31 December 2024 (2023: € 1,706 million), for Airbus programmes (€ 1,077 million), Airbus Defence and Space (€ 270 million) and Airbus Helicopters (€ 284 million). AIRBUS - FINANCIAL STATEMENTS 2024 - 27
Impairment Tests Each year the Company assesses whether there is an indication that a non-financial asset or a cash generating unit (“CGU”) to which the asset belongs may be impaired. In addition, intangible assets with an indefinite useful life, intangible assets not yet available for use and goodwill are tested for impairment annually, irrespective of whether there is any indication for impairment. An impairment loss is recognised in the amount by which the asset’s carrying amount exceeds its recoverable amount. For the purpose of impairment testing, any goodwill is allocated to the CGU or group of CGUs in a way that reflects the way goodwill is monitored for internal management purposes. The discounted cash flow method is used to determine the recoverable amount of a CGU or the group of CGUs to which goodwill is allocated. The discounted cash flow method is particularly sensitive to the selected discount rates and estimates of future cash flows by management. Discount rates are based on the weighted average cost of capital (“WACC”) for a CGU or the groups of CGUs. The discount rates are calculated based on a risk-free rate of interest and a market risk premium. In addition, the discount rates reflect the current market assessment of the risks specific to each group of CGUs by taking into account specific peer group information on beta factors, leverage and cost of debt. Consequently, slight changes to these elements can materially affect the resulting valuation and therefore the amount of a potential impairment charge. These estimates are influenced by several assumptions including the growth rate of CGUs used in the computation of the terminal value, the increase of deliveries in the coming years, the availability and composition of future defence and institutional budgets, and foreign exchange fluctuations or implications arising from the volatility of capital markets. Cash flow projections take into account past experience and represent management’s best estimate of future developments which align with the Company’s climate-related ambitions . The Company tested the intangible assets for which an indicator of impairment was identified. In particular, the Company tested the intangible assets associated with certain aircraft programmes and no material impairment was recorded. Following the extensive technical and business reviews performed in 2024 in Space Systems, an impairment of € 0.4 billion was recorded, included in the total charges. As of 31 December 2024 and 2023, goodwill was allocated to CGUs or group of CGUs and is summarised in the following schedule: (In € million) Airbus Airbus Helicopters Airbus Defence and Space Eliminations Consolidated Airbus Goodwill as of 31 December 2024 10,824 307 2,318 0 13,449 Goodwill as of 31 December 2023 10,803 184 2,154 0 13,141 The goodwill mainly relates to the creation of the Company in 2000 and the Airbus Combination in 2001. The annual impairment tests performed in 2024 led to no impairment charge. The Company performed sensitivity tests in order to confirm the recoverability of its long-lived assets, and no reasonably possible changes in the main assumptions used would cause the value in use of the goodwill to fall below its carrying value. General Assumptions Applied in the Planning Process The basis for determining the recoverable amount is the value in use of the CGUs. Cash flow projections used for the impairment testing are based on both the operative planning and management’s best estimates over the long-term horizon, including climate-related considerations. It incorporates the decarbonisation levers in its assumptions. For more information about the transition plan and the decarbonisation levers, please refer to section 6.2.2.2 Transition plan for climate change mitigation (E1-1), in the Sustainability Statement. The operative planning, is based on the following key assumptions which are relevant for all CGUs: - increase of expected future labour expenses of 4.0% for 2025 including an inflation rate of 3.5%; - future interest rates projected per geographical market, for the European Monetary Union, the UK and the US; - future exchange rate of 1.10 US$/€ for 2025 to convert in euro the portion of future US dollar which is not hedged (see “– Note 37: Financial Instruments”). General economic data derived from external macroeconomic and financial studies have been used to derive the general key assumptions. In addition to these general planning assumptions, the following additional CGU specific assumptions, which represent management’s current best assessment as of the date of these Consolidated Financial Statements, have been applied. Airbus - The planning takes into account both the current market conditions and Airbus’ production rate, and includes management’s best estimates of the progressive increase in aircraft deliveries over the operative planning period; - The period beyond the operative plan horizon was considered through 10 years long-term projections and a terminal value with a perpetual growth rate of 2%, aligned with Airbus’ ambition as reflected through its SBTi-validated targets. - Cash flows are discounted using a euro weighted pre-tax WACC of 12.6% (2023: 13.5%). AIRBUS - FINANCIAL STATEMENTS 2024 - 28
Airbus Helicopters - The planning takes into account the evolution of programmes based upon the current backlog and an assessment of order intake for platforms and services; - Long-term commercial assumptions in respect of market share, deliveries and market value are based on the latest helicopter market forecast. According to market forecasts, around 7,400 Civil and Parapublic helicopters and approximately 7,100 Military helicopters are expected to be delivered globally over the next 10 years; - In the absence of long-term financial reference, expected cash flows generated beyond the planning horizon are considered through a terminal value with a perpetual growth rate of 1%; - Cash flows are discounted using a euro weighted pre-tax WACC of 11.3% (2023: 12.4%). Airbus Defence and Space - Overall the defence and space markets are expected to have growth during the period of the operative planning horizon; - Business growth is underpinned by growing defence and space opportunities. Underlying performance is improved by focusing on project delivery, cost control and efficiency; - In the absence of long-term financial reference, expected cash flows generated beyond the planning horizon are considered through a terminal value, with a perpetual growth rate of 1%; - Cash flows are discounted using a euro weighted pre-tax WACC of 10.3% (2023: 11.2%). 20. Property, Plant and Equipment Property, plant and equipment is valued at acquisition or manufacturing costs less accumulated depreciation and impairment losses. Items of property, plant and equipment are generally depreciated on a straight-line basis. The following useful lives are assumed: Buildings 10 to 50 years Site improvements 6 to 30 years Technical equipment and machinery 2 to 20 years Jigs and tools (1) 5 years Other equipment, factory and office equipment 2 to 10 years (1) If more appropriate, jigs and tools are depreciated using the number of production or similar units expected to be obtained from the tools (sum-of-the-units method). Property, plant and equipment as of 31 December 2024 and 2023 comprises the following: 31 December 2024 31 December 2023 (In € million) Gross amount Depreciation / Impairment Net book value Gross amount Depreciation / Impairment Net book value Land, leasehold improvements and buildings, including buildings on land owned by others 11,222 (5,822) 5,400 10,948 (5,783) 5,165 Technical equipment and machinery 23,599 (16,488) 7,111 22,416 (15,587) 6,829 Other equipment, factory and office equipment (1) 4,038 (3,103) 935 3,955 (3,108) 847 Construction in progress 3,646 0 3,646 2,720 0 2,720 Right-of-use assets (2) 3,037 (1,017) 2,020 2,616 (975) 1,641 Total 45,542 (26,430) 19,112 42,654 (25,453) 17,201 (1) Includes the net book value of aircraft under operating lease (see “– Note 27: Sales Financing Transactions”). (2) The net book value of Land and Buildings under Right-of-use assets amounts to €1,904 million. AIRBUS - FINANCIAL STATEMENTS 2024 - 29
Net Book Value (In € million) Balance at 1 January 2024 Exchange differences Additions Changes in consolidation scope Reclassi- fication Disposals Depreciation / Impairment Balance at 31 December 2024 Land, leasehold improvements and buildings, including buildings on land owned by others 5,165 42 338 63 139 (6) (341) 5,400 Technical equipment and machinery 6,829 79 462 (2) 1,048 (47) (1,258) 7,111 Other equipment, factory and office equipment 847 12 220 23 105 (71) (201) 935 Construction in progress 2,720 34 2,206 15 (1,305) (24) 0 3,646 Right-of-use assets 1,641 52 438 45 191 (117) (230) 2,020 Total 17,201 219 3,664 144 178 (265) (2,030) 19,112 (In € million) Balance at 1 January 2023 Exchange differences Additions Changes in consolidation scope Reclassi- fication Disposals Depreciation / Impairment Balance at 31 December 2023 Land, leasehold improvements and buildings, including buildings on land owned by others 4,997 5 109 3 379 (23) (306) 5,165 Technical equipment and machinery 6,696 (19) 442 9 841 (19) (1,119) 6,829 Other equipment, factory and office equipment 825 (6) 131 5 96 (15) (190) 847 Construction in progress 2,241 (1) 1,766 0 (1,264) (22) 0 2,720 Right-of-use assets 1,746 (24) 181 12 (26) (30) (218) 1,641 Total 16,505 (45) 2,629 29 26 (109) (1,833) 17,201 Property, plant and equipment increased by € +1,911 million to € 19,112 million (2023: € 17,201 million). Property, plant and equipment include right-of-use assets for an amount of € 2,020 million as of 31 December 2024 (2023: € 1,641 million). For details on assets related to lease arrangements on sales financing, see “– Note 27: Sales Financing Transactions”. Property, Plant and Equipment by Geographical Areas 31 December (In € million) 2024 2023 France 8,654 7,919 Germany 4,700 4,286 UK 1,692 1,478 Spain 1,337 1,285 United States 1,370 868 Canada 504 438 Other countries 855 927 Total 19,112 17,201 The Company as lessee The Company leases mainly real estate assets, cars and equipment (such as land, warehouses, storage facilities and offices). AIRBUS - FINANCIAL STATEMENTS 2024 - 30
Short-term leases and leases of low-value assets refer mainly to IT equipment (e.g. printers, laptops and mobile phones) and other equipment. The Company incurred interest expense on lease liabilities of € 50 million. The expense in relation to short-term and low-value assets is insignificant. There are no significant variable lease payments included in the Company’s lease arrangements. The discount rate used to determine the right-of-use asset and the lease liability for each country and leased asset is calculated based on the incremental borrowing rate at inception of the lease. The Company calculated the rate applicable to each lease contract on the basis of the lease duration. The maturity analysis of lease liabilities, based on contractual undiscounted cash flows is shown in “– Note 37.1: Financial Risk Management”. Real estate leases The Company leases land and buildings mainly for its operational business warehouses including logistic facilities, offices, production halls and laboratories. The major leases are located in France, Germany, the US, Canada and China. As lease contracts are negotiated on an individual basis, lease terms contain a wide range of different terms and conditions. Leases are typically made for a fixed period of 3-25 years and may include extension, termination and other options, which provide operational flexibility to the Company. Vehicle leases The Company leases cars for management and other functions. Vehicle leases typically run for an average period of three years and do not provide renewal options. Other leases The Company also leases IT equipment, machinery and other equipment that combined are insignificant to the total leased asset portfolio. Off-Balance Sheet Commitments Commitments related to property, plant and equipment comprise contractual commitments for future capital expenditure and contractual commitments for purchases of “Land, leasehold improvements and buildings including buildings on land owned by others” (€ 1,722 million as of 31 December 2024, 2023: € 1,345 million). 21. Other Investments and Other Long-Term Financial Assets 31 December (In € million) 2024 2023 Other investments 2,888 2,798 Other long-term financial assets 2,189 1,921 Total non-current other investments and other long-term financial assets 5,077 4,719 Current portion of other long-term financial assets 897 795 Total 5,974 5,514 Other investments mainly comprise the Company’s participations and include the remaining investment in Dassault Aviation (10.53%, 2023: 10.24%) amounting to € 1,632 million as of 31 December 2024 (2023: € 1,483 million). Other long-term financial assets and the current portion of other long-term financial assets include other loans in the amount of € 2,955 million as of 31 December 2024 (2023: € 2,601 million), and the sales financing activities in the form of finance lease receivables and loans from aircraft financing. The increase is mainly reflecting additional loans in Airbus bank. 22. Contract Assets and Contract Liabilities, Trade Receivables and Trade Liabilities Contract assets represent the Company’s right to consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditioned by something other than the passage of time (e.g. revenue recognised from the application of the PoC method before the Company has a right to invoice). Contract liabilities represent the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration, or for which an amount of consideration is due from the customer (e.g. advance payments received). Net contract assets and contract liabilities are determined for each contract separately. For serial contracts, contract liabilities are presented in current contract liabilities, if revenues are expected within the next twelve months or material expenses for the manufacturing process have already occurred. For long-term production contracts (e.g. governmental contracts such as A400M, Tiger, NH90), contract liabilities are classified as current when the relating inventories or receivables are expected to be recognised within the normal operating cycle of the long-term contract. AIRBUS - FINANCIAL STATEMENTS 2024 - 31
Trade receivables arise when the Company provides goods or services directly to a customer with no intention of trading the receivable. Trade receivables include claims arising from revenue recognition that are not yet settled by the debtor. Trade receivables are initially recognised at their transaction prices and are subsequently measured at amortised cost less any allowances for impairment. Gains and losses are recognised in the Consolidated Income Statement when the receivables are derecognised and impaired. Impairment and allowances of trade receivables and contract assets are measured at an amount equal to the life-time expected loss as described in “– Note 37: Financial Instruments”. Contract Assets, Contract Liabilities and Trade Receivables Significant changes in contract assets and contract liabilities during the period are as follows: 2024 2023 (In € million) Contract assets Contract liabilities Contract assets Contract liabilities Revenue recognised that was included in the contract liability balance at 1 January - (23,843) - (26,175) Increases due to cash received, excluding amounts recognised as revenue (1) - 31,094 - 29,198 Transfers from contract assets recognised at 1 January (3,860) - (2,168) - Increase as a result of changes in the measure of progress 3,654 - 2,509 - (1) Including final payments received from customers and others parties in anticipation. As of 31 December 2024, trade receivables amounting to € 160 million (2023: € 227 million) will mature after more than one year. The respective movement in the allowance for expected credit losses in respect of trade receivables and contract assets during the period was as follows: (In € million) 2024 2023 Allowance balance at 1 January (359) (380) Utilisations / disposals and business combinations 26 86 Additions (38) (65) Allowance balance at 31 December (371) (359) Trade Liabilities Trade liabilities of € 13,791 million (2023: € 14,323 million) decreased by € -532 million. As of 31 December 2024, trade liabilities amounting to € 18 million (2023: € 87 million) will mature after more than one year. Similar to previous years, the Company has supported its suppliers through Supply Chain Financing Arrangements with the aim to increase the stability of the supply chain. The main programme is managed by a finance provider with funding provided by several banks. Through a dedicated platform, suppliers have flexibility to elect individual invoices for early payment. The costs associated with the early payment are incurred by the supplier, and correspond to market interest rate, plus a rate agreed between the financing third-party and the suppliers. Early payments are processed by the finance provider, and the Company settles the original invoice amount with the latter at the initial maturity date. During the year 2024, the main program has contributed to support the supply chain for approximately € 8 billion. The Company evaluates such suppliers’ early payment arrangements with a financing third party against a number of indicators to assess whether the payable continues to hold the characteristics of a trade payable or should be classified as borrowings; these indicators include whether the payment terms exceed customary payment terms in the industry. Based on the Company assessment, the payables subject to supplier financing arrangements continue to meet the definition of trade payables and are not reclassified to borrowings. The Company presents a single cash outflow for the payments made to the finance provider because it considers the payment to a supplier by the financing third party not to be a cash transaction of the entity. The Company classifies its cash outflows for payments made to the finance provider within operating activities because it views the principal nature of these payments as related to the purchase of goods and services. Trade liabilities as part of a supplier finance arrangements, for which payments have already been received by the suppliers from the finance provider, amounts to € 0.4 billion as of 31 December 2024. The range of payment due dates is not impacted by the supplier finance arrangements and continues to be comparable with trade payables that are not part of those arrangements. AIRBUS - FINANCIAL STATEMENTS 2024 - 32
23. Inventories 31 December 2024 31 December 2023 (In € million) Gross amount Write-down Net book value Gross amount Write-down Net book value Raw materials and manufacturing supplies 5,785 (718) 5,067 5,025 (739) 4,286 Work in progress 21,972 (1,047) 20,925 20,648 (1,091) 19,558 Finished goods and parts for resale 6,102 (1,048) 5,054 5,169 (1,273) 3,896 Advance payments to suppliers 6,768 (69) 6,699 6,061 (60) 6,001 Total 40,627 (2,882) 37,745 36,904 (3,163) 33,741 Inventories of € 37,745 million (2023: € 33,741 million) increased by € +4,004 million. This is mostly driven by work in progress, raw materials and higher finished goods in order to support the ramp-up as well as spare parts due to the increase in services business. In 2024, write-downs of inventories in the amount of € -473 million (2023: € -782 million) are recognised in cost of sales, whereas reversal of write-downs amounts to € 81 million (2023: € 149 million). As of 31 December 2024, € 20,380 million of work in progress and € 5,035 million of finished goods and parts for resale were carried at net realisable value. Inventories recognised as an expense during the period amount to € 41,669 million (2023: € 41,644 million). 24. Provisions, Contingent Assets and Contingent Liabilities Provisions — The determination of provisions, e.g. for onerous contracts, program-related provisions, warranty costs, restructuring measures and legal proceedings is based on best estimates. In general, in the aerospace sector, the contractual and technical parameters considered for provision calculations are complex. Hence uncertainty exists with regard to the timing and amounts of expenses to be taken into account. 31 December (In € million) 2024 2023 Provisions for pensions (1) 1,821 2,715 Other provisions 7,116 7,113 Total 8,937 9,828 thereof non-current portion 4,630 5,667 thereof current portion 4,307 4,161 (1) See “– Note 31 Post-Employment Benefits”. As of 31 December 2024, provisions for pensions amount to € 1.8 billion (2023: € 2.7 billion). It mainly reflects the contributions to plan assets and the actuarial gains on pension obligations from financial assumptions driven by the increase in the discount rates as well as the decrease in the inflation assumptions (see “– Note 31: Post-Employment Benefits”). As of 31 December 2024, a non-current asset of € 0.7 billion (2023: € 0.4 billion) is accounted for to reflect the surplus in two pension funds in the UK, the Airbus Section of the participation in BAE Systems Pension Scheme and the Company UK Pension Scheme (see “– Note 26: Other Assets and Other Liabilities”). Other provisions remained stable mainly due to provisions utilisation and release partly offset by provisions for onerous contracts related to the updates of certain Space programmes (see “– Note 12: Revenue and Gross Margin”). AIRBUS - FINANCIAL STATEMENTS 2024 - 33
Movements in other provisions during the year were as follows: (In € million) Balance at 1 January 2024 Exchange differences Increase from passage of time Additions Reclassification/ Change in consolidated group Used Released Balance at 31 December 2024 Onerous contracts 1,638 44 0 978 (11) (836) (112) 1,701 Outstanding costs 1,432 0 0 655 1 (473) (221) 1,394 Aircraft financing risks (1) 2 (1) 0 0 0 0 (1) 0 Obligation from services and maintenance agreements 301 2 6 0 0 (38) (15) 256 Warranties 395 8 2 174 (1) (55) (56) 467 Personnel-related provisions (2) 774 2 6 241 1 (424) (36) 564 Litigation and claims (3) 103 (2) 0 42 0 (28) (29) 86 Asset retirement 134 (1) 25 12 1 0 0 171 Others risks and charges 2,334 0 (3) 989 (11) (481) (351) 2,477 Total 7,113 52 36 3,091 (20) (2,335) (821) 7,116 (1) See “– Note 27: Sales Financing Transactions”. (2) See “– Note 30: Personnel-Related Provisions”. (3) See “– Note 38: Litigation and Claims”. Provisions for onerous contracts in 2024 mainly include the provision related to the updates of certain Space programmes partly offset by the utilisation in the A400M programme and the reduction in the A220 programme. Personnel-related provisions include restructuring provisions and other personnel charges. For more details, see “– Note 30: Personnel-Related Provisions”. Contingent assets and contingent liabilities — The Company is exposed to technical and commercial contingent obligations due to the nature of its businesses. To mitigate this exposure, the Company has subscribed to a Global Aviation Insurance Programme (“GAP”). Information required under IAS 37 “Provisions, Contingent Assets and Contingent Liabilities” is not disclosed if the Company concludes that disclosure can be expected to prejudice seriously its position in a dispute with other parties. For other contingent liabilities, see “– Note 38: Litigation and Claims” and “– Note 12: Revenue and Gross Margin” (mainly A400M programme). Other commitments include contractual guarantees and performance bonds to certain customers as well as commitments for future capital expenditure and amounts which may be payable to commercial intermediaries if future sales materialise. 25. Other Financial Assets and Other Financial Liabilities Other Financial Assets 31 December (In € million) 2024 2023 Positive fair values of derivative financial instruments (1) 670 897 Others 27 25 Total non-current other financial assets 697 922 Receivables from related companies 1,159 1,252 Positive fair values of derivative financial instruments (1) 395 330 Others 450 269 Total current other financial assets 2,004 1,851 Total 2,701 2,773 (1) See “– Note 37: Financial Instruments”. AIRBUS - FINANCIAL STATEMENTS 2024 - 34
Other Financial Liabilities 31 December (In € million) 2024 2023 Liabilities for derivative financial instruments (1) 3,715 2,859 European Governments' refundable advances (2) 3,698 3,671 Others 163 185 Total non-current other financial liabilities 7,576 6,715 Liabilities for derivative financial instruments (1) 2,466 1,891 European Governments' refundable advances (2) 161 185 Liabilities to related companies 82 183 Others 341 310 Total current other financial liabilities 3,050 2,569 Total 10,626 9,284 (1) See “– Note 37: Financial Instruments”. (2) Refundable advances from European Governments are provided to the Company to finance research and development activities for certain projects on a risk-sharing basis, i.e. they are repaid to the European Governments subject to the success of the project. The total net fair value of derivative financial instruments decreased by € -1,593 million to € -5,116 million (2023: € -3,523 million) as a result of the strengthening of the US dollar sport rate vs. the average US$/€ hedge rate of the Company portfolio (see “– Note 37.4: Notional Amounts of Derivative Financial Instruments). In 2024, the European Governments’ refundable advances remained stable at € 3,859 million (2023: € 3,856 million). The allocation of European Governments’ refundable advances between non-current and current presented in the Consolidated Financial Statements ended 31 December 2024 is based on the applicable contractual repayment dates. 26. Other Assets and Other Liabilities Other Assets 31 December (In € million) 2024 2023 Cost to fulfil a contract 657 468 Prepaid expenses 80 129 Others 1,913 1,257 Total non-current other assets 2,650 1,854 Value added tax claims 1,823 1,600 Cost to fulfil a contract 623 460 Prepaid expenses 621 174 Others 396 463 Total current other assets 3,463 2,697 Total 6,113 4,551 As of 31 December 2024, others included into other assets comprise € 1,267 million of payments to be made to Airbus by suppliers after aircraft delivery (2023: € 874 million) which are expected to be received over a rolling period of 15 years. They are recorded as a reduction of cost of goods sold at the time of aircraft delivery. These future payments are discounted to reflect specific contractual terms and repayment profile. As of 31 December 2024, a non-current asset of € 677 million (2023: € 373 million) is accounted for in others to reflect the surplus in two pension funds in the UK. The change of € +304 million is mainly explained by actuarial losses on pension obligations from financial assumptions of € +569 million and contributions to plan assets of € +105 million. It is partly offset by the actuarial losses from plan assets of € -384 million. (see “– Note 24: Provisions, Contingent Assets and Contingent Liabilities”). AIRBUS - FINANCIAL STATEMENTS 2024 - 35
Other Liabilities 31 December (In € million) 2024 2023 Others (1) 463 450 Total non-current other liabilities 463 450 Tax liabilities (excluding income tax) 806 740 Others (1) 3,216 2,767 Total current other liabilities 4,022 3,507 Total 4,485 3,957 (1) “Others” mainly comprises tax (excluding income tax) and personnel liabilities (e.g. Salaries, Social insurance contribution, Liabilities from personnel restructuring). 27. Sales Financing Transactions Sales financing — With a view to facilitating aircraft sales for Airbus and Airbus Helicopters, the Company may enter into either on-balance sheet or off-balance sheet sales financing transactions. On-balance sheet transactions where the Company is lessor are classified as operating leases, finance leases and loans, inventories and to a minor extent, equity investments: (i) operating leases – Aircraft leased out under operating leases are included in property, plant and equipment at cost less accumulated depreciation (see “– Note 20: Property, Plant and Equipment”). Rental income from operating leases is recorded as revenue on a straight-line basis over the term of the lease; (ii) finance leases and loans – When, pursuant to a financing transaction, substantially all the risks and rewards of ownership of the financed aircraft reside with a third party, the transaction is characterised as either a finance lease or a loan. In such instances, revenues from the sale of the aircraft are recorded upon delivery, while financial interest is recorded over time as financial income. The outstanding balance of principal is recorded on the Statement of Financial Position (on-balance sheet) in long-term financial assets, net of any accumulated impairments; (iii) inventories – Second-hand aircraft acquired as part of a commercial buyback transaction, returned to Airbus after a payment default or at the end of a lease agreement are classified as inventories held for resale if there is no subsequent lease agreement in force (see “– Note 23: Inventories”). Off-balance sheet commitments — Financing commitments are provided to the customer either as backstop commitments before delivery, asset value guarantees at delivery or counter guarantees: (i) backstop commitments are guarantees by Airbus, made when a customer-order is placed, to provide financing to the customer in the event that the customer fails to secure sufficient funding when payment becomes due under the order. Such commitments are not considered to be part of Gross Customer Financing Exposure as (i) the financing is not in place, (ii) commitments may be transferred in full or part to third parties prior to delivery, (iii) past experience suggests it is unlikely that all such proposed financings actually will be implemented and, (iv) Airbus retains the asset until the aircraft is delivered and does not incur an unusual risk in relation thereto. In order to mitigate customer credit risks for Airbus, such commitments typically contain financial conditions, such as condition precedents, which guaranteed parties must satisfy in order to benefit therefrom; (ii) asset value guarantees are guarantees whereby Airbus guarantees a portion of the value of an aircraft at a specific date after its delivery. Airbus considers the financial risks associated with such guarantees to be acceptable, because (i) the guarantee only covers a tranche of the estimated future value of the aircraft, and its level is considered prudent in comparison to the estimated future value of each aircraft, and (ii) the exercise dates of outstanding asset value guarantees are distributed through 2031. As of 31 December 2024, the nominal value of asset value guarantees considered as variable considerations under IFRS 15 provided to beneficiaries amounts to € 145 million (2023: € 151 million), excluding € 10 million (2023: € 9 million) where the risk is considered to be remote. The present value of the risk inherent in asset value guarantees where a settlement is being considered probable is fully provided for and included in the total of contract liabilities for an amount of € 127 million (2023: € 127 million) (see “– Note 22: Contract Assets, Contract Liabilities and Trade Receivables, and Trade Liabilities”). Exposure — In terms of risk management, the Company manages its gross exposure arising from its sales financing activities (“Gross Customer Financing Exposure”) separately for (i) customer’s credit risk and (ii) asset value risk. Gross Customer Financing Exposure is the sum of (i) the book value of operating leases before impairment, (ii) the outstanding principal amount of finance leases or loans due before impairment, (iii) the guaranteed amounts under financial guarantees (iv) the book value of second-hand aircraft for resale before impairment, and (v) the outstanding value of any other investment in sales financing structured entities before impairment. This Gross Customer Financing Exposure may differ from the value of related assets on the Company’s Statement of Financial Position and related off-balance sheet contingent commitments, mainly because (i) assets are recorded in compliance with IFRS, but may relate to transactions that are financed on a limited recourse basis and (ii) the carrying amount of the assets on the Consolidated Statement of Financial Position may have been adjusted for impairment losses. Gross Customer Financing Exposure amounts to US$ 0.3 billion (€ 0.3 billion) (2023: US$ 0.4 billion (€ 0.3 billion)). AIRBUS - FINANCIAL STATEMENTS 2024 - 36
Net exposure is the difference between Gross Customer Financing Exposure and the collateral value. Collateral value is assessed using a dynamic model based on the net present value of expected future receivables, expected proceeds from resale and potential cost of default. This valuation model yields results that are typically lower than residual value estimates by independent sources in order to allow for what management believes is its conservative assessment of market conditions and for repossession and transformation costs. The net exposure is provided for by way of impairment losses and other provisions. Impairment losses and provisions — For the purpose of measuring an impairment loss, each transaction is tested individually. Impairment losses relating to aircraft under operating lease and second-hand aircraft for resale (included in inventory) are recognised for any excess of the aircraft’s carrying amount over the higher of the aircraft’s value in use and its fair value less cost to sell. Finance leases and loans are measured at fair value, based on the present value of estimated future cash flows (including cash flows expected to be derived from a sale of the aircraft). Under its provisioning policy for sales financing risk, Airbus and Airbus Helicopters record provisions as liabilities for estimated risk relating to off-balance sheet commitments. Security — Sales financing transactions, including those that are structured through structured entities, are generally collateralised by the underlying aircraft. Additionally, the Company benefits from protective covenants and from security packages tailored according to the perceived risk and the legal environment. The Company endeavours to limit its sales financing exposure by sharing its risk with third parties usually involving the creation of a structured entity. Apart from investor interest protection, interposing a structured entity offers advantages such as flexibility, bankruptcy remoteness, liability containment and facilitating sell-downs of the aircraft financed. An aircraft financing structured entity is typically funded on a non-recourse basis by a senior lender and one or more providers of subordinated financing. When the Company acts as a lender to such structured entities, it may take the role of the senior lender or the provider of subordinated loans. The Company consolidates an aircraft financing structured entity if it is exposed to the structured entity’s variable returns and has the ability to direct the relevant remarketing activities. Otherwise, it recognises only its loan to the structured entity under other long-term financial assets. As of 31 December 2024 the carrying amount of its loans from aircraft financing amounts to € 97 million (2023: € 85 million). This amount also represents the Company’s maximum exposure to loss from its interest in unconsolidated aircraft financing structured entities. On-Balance Sheet Operating and Finance Leases The future minimum operating lease payments (undiscounted) due from customers to be included in revenue, and the future minimum lease payments (undiscounted) from investments in finance leases to be received in settlement of the outstanding receivable as of 31 December 2024 and 31 December 2023 are as follows: (In € million) Aircraft under operating lease Finance lease receivables Not later than one year 5 4 Later than one year and not later than five years 14 25 Later than five years 37 11 31 December 2024 56 40 (In € million) Aircraft under operating lease Finance lease receivables Not later than one year 6 5 Later than one year and not later than five years 6 35 Later than five years 81 18 31 December 2023 93 58 Customer Financing Cash Flows Direct customer financing cash flows amount to € -2 million in 2024 (2023: € -436 million). AIRBUS - FINANCIAL STATEMENTS 2024 - 37
Customer Financing Exposure The on-balance sheet assets relating to sales financing, the off-balance sheet commitments and the related financing exposure (not including asset value guarantees) as of 31 December 2024 and 2023 are as follows: 31 December 2024 31 December 2023 (In € million) Airbus Airbus Helicopters Total Airbus Airbus Helicopters Total Operating leases (1) 140 4 140 93 0 93 Finance leases and loans 130 11 142 122 17 139 Inventories 24 0 24 49 0 49 Other investments 13 0 13 42 0 42 On-balance sheet customer financing 307 15 323 306 17 323 Off-balance sheet customer financing 2 2 4 6 2 8 Gross Customer Financing Exposure 309 17 327 312 19 331 Collateral values (263) (17) (280) (252) (19) (271) Net exposure 46 0 47 60 0 60 Operating leases 0 0 0 0 0 0 Finance leases and loans (46) 0 (46) (54) 0 (54) On-balance sheet commitments - inventories 0 0 0 (5) 0 (5) Off-balance sheet commitments - provisions (2) 0 0 0 (1) 0 (1) Asset impairments, fair value adjustments and provisions (47) 0 (46) (60) 0 (60) (1) For 2024 and 2023, depreciation amounts to € 10 million and € 5 million respectively and related accumulated depreciation is € 22 million and € 17 million respectively. (2) See “– Note 24: Provisions, Contingent Assets and Contingent Liabilities”. 2.6 Employees Costs and Benefits 28. Number of Employees Airbus Airbus Helicopters Airbus Defence and Space Consolidated Airbus 31 December 2024 97,433 23,141 36,347 156,921 31 December 2023 90,032 22,336 35,525 147,893 As of 31 December 2024, the total number of employees amounts to 156,921 (2023: 147,893). The increase mainly reflects ramp-up activities and perimeter changes (including Airbus India for 3,581 employees). 29. Personnel Expenses (In € million) 2024 2023 Wages, salaries and social contributions (2) 17,433 15,612 Net periodic pension cost (1) 434 414 Total 17,867 16,026 (1) See “– Note 31: Post-Employment Benefits”. (2) 2023 figures have been restated. AIRBUS - FINANCIAL STATEMENTS 2024 - 38
30. Personnel-Related Provisions (In € million) Balance at 1 January 2024 Exchange differences Increase from passage of time Additions Reclassification / Change in consolidated group Used Released Balance at 31 December 2024 Restructuring measures / pre-retirement part-time work 76 1 2 28 0 (38) (1) 68 Other personnel charges 698 1 4 213 1 (386) (35) 496 Total 774 2 6 241 1 (424) (36) 564 Other personnel charges of € 494 million (2023: € 698 million) are mainly related to short-term employee benefit. 31. Post-Employment Benefits 31 December (In € million) 2024 2023 Provisions for retirement plans 1,762 2,554 Provisions for deferred compensation 59 161 Retirement plans and similar obligations 1,821 2,715 In addition, a non-current asset of € 677 million has been accounted for to reflect the surplus in two pension funds in the UK, the Airbus Section of the participation in BAE Systems Pension Scheme and the Company UK Pension Scheme, as well as Airbus Atlantique Pension Plan in Canada (see “– Note 26: Other Assets and Other Liabilities”). Plans description When Company employees retire, they receive indemnities as stipulated in retirement agreements, in accordance with regulations and practices of the countries in which it operates. Provision for deferred compensation represents obligations that arise if employees elect to convert part of their remuneration or bonus into an equivalent commitment for deferred compensation which is treated as a defined benefit post-employment plan. France The French pension system is operated on a “pay as you go” basis. Besides the basic pension from the French social security system, each employee is entitled to receive a complementary pension from defined contribution schemes AGIRC-ARRCO (Association pour le régime de retraite complémentaire des salariés and Association générale des institutions de retraite des cadres). Moreover, French law stipulates that employees are paid retirement indemnities in the form of lump sums on the basis of the length of service, which are considered as defined benefit obligations. In 2023 the Company implemented a new funding vehicle in the form of an insurance contract to partially fund the retirement indemnities obligations. Germany The Company has a pension plan (P3) for executive and non-executive employees in place. Under this plan, the employer provides contributions for the services rendered by the employees, which are dependent on their salaries in the respective service period. These contributions are converted into components which become part of the accrued pension liability at the end of the year. Total benefits are calculated as a career average over the entire period of service. Certain employees that are not covered by this plan receive retirement indemnities based on salary earned in the last year or on an average of the last three years of employment. For some executive employees, benefits are dependent on the final salary of the respective individual at the date of retirement and the time period served as an executive. In 2018, Airbus introduced the new Airbus Pensions Plan (“APP”) with security-linked benefits in Germany, which all new entrants after 1 January 2018 will join. Accordingly, the existing pension plan has been closed for new entrants. As of 1 January 2019, deferred compensation, which is financed by the employees, is offered exclusively in APP for all employees. In 2020 the Company transferred about half of the active population of the P3 plan into APP. With effect as of 1 January 2020 these employees will accrue future benefits under APP but not in P3 anymore. Benefits related to past service are not affected by this transfer. Parts of the pension obligation in Germany are funded by assets invested in specific funding vehicles. Besides a relief fund (“Unterstützungskasse”), the Company has implemented a Contractual Trust Arrangement. The Contractual Trust Arrangement structure is that of a bilateral trust arrangement. Assets that are transferred to the relief fund and the Contractual Trust Arrangement qualify as plan assets under IAS 19. In the trust arrangements between the trust and the participating companies a minimum funding requirement is stipulated for the portion of the obligation for deferred compensation, which is not protected by the pension guarantee association or Pensions-Sicherungs Verein in case of an insolvency of the subsidiaries concerned. Some portions of the obligation must be covered with securities in the same amount, while other portions must be covered by 115%. AIRBUS - FINANCIAL STATEMENTS 2024 - 39
United Kingdom The Company UK Pension Scheme (“the Scheme”) was implemented by Airbus Defence and Space Ltd., Stevenage (UK) as the principal employer. This plan comprises all eligible employees of Airbus Defence and Space Ltd. as well as all personnel, who were recruited by one of the Company subsidiaries located in the UK and participating in the scheme. The major part of the obligation is funded by scheme assets due to contributions of the participating companies. The Scheme is a registered pension scheme under the Finance Act 2004. The trustee’s only formal funding objective is the statutory funding objective under the Pensions Act part 3 2004, which is to have sufficient and appropriate assets to cover the Scheme’s obligations. Since 1 November 2013, this plan is generally closed for joiners, who participate in a separate defined contribution plan. Moreover, the Company participates in the UK in several funded trustee-administered pension plans for both executive and non-executive employees with BAE Systems being the principal employer. The Company’s most significant investments in terms of employees participating in these BAE Systems UK pension plans is Airbus Operations Ltd. Participating Airbus Operations Ltd. employees have continued to remain members in the BAE Systems UK pension plans due to the UK pension agreement between the Company and BAE Systems and a change in the UK pensions legislation enacted in April 2006. For the most significant of these BAE Systems Pension Schemes, the Main Scheme, BAE Systems, the Company and the scheme Trustees agreed on a sectionalisation, which was implemented on 1 April 2016. Although BAE Systems remains the only principal employer of the Scheme, the Company has obtained powers in relation to its section which are the same as if it were the principal employer. Based on the funding situation of the respective pension schemes, the pension plan trustees determine the contribution rates to be paid by the participating employers to adequately fund the schemes. The latest funding valuation for the Main Scheme has been conducted in 2023 and the Main Scheme is currently in a surplus situation. In the event that an employer who participates in the BAE Systems pension schemes fails or cannot be compelled to fulfil its obligations as a participating employer, the remaining participating employers are obliged to collectively take on its obligations. The Company considers the likelihood of this event as remote. However, for the Main Scheme the Company considers that its obligation is in principle limited to that related to its section. In addition, the Company has two guarantees to cover its obligation towards the Scheme and the BAE Systems pension schemes. To mitigate its exposure, the first guarantee covers an amount up to GBP 1.25 billion for an unlimited period of time while the second one covers an uncapped amount terminating in 2046, respectively for the Scheme and the BAE Systems Pension Schemes. Canada Airbus Canada Limited Partnership sponsors defined benefit plans for its salaried, hourly and executive employees. In 2020, Airbus acquired Stelia Aeronautics Saint-Laurent Inc. which sponsors a defined benefit plan for its salaried and hourly employees. Actuarial risks for the Company The Defined Benefit Obligation (“DBO”) exposes the Company to actuarial risks, including mainly the following ones: Market price risk — The return on plan assets is assumed to be the discount rate derived from AA-rated corporate bonds. If the actual return rate of plan assets is lower than the applied discount rate, the net liability increases accordingly. Moreover, the market values of the plan assets are subject to volatility, which also impacts the net liability. Interest rate risk — The level of the DBO is significantly impacted by the applied discount rate. The low interest rates in recent years, particular in the euro-denominated market environment, lead to a relatively high net pension liability. If there is again a decline in returns of corporate bonds, the DBO will increase in future periods, which might only be offset partially by the positive development of market values of those corporate bonds included in plan assets. Generally, the pension obligation is sensitive to movements in the interest rate leading to volatile results in the valuation. Inflation risk — The pension liabilities can be sensitive to movements in the inflation rate, whereby a higher inflation rate could lead to an increasing liability. Since some pension plans are directly related to salaries, increases in compensations could result in increasing pension obligations. For the deferred compensation plan P3, which is financed by the employees a fixed interest rate has been agreed. Longevity risk — The pension liabilities are sensitive to the life expectancy of its members. Rising life expectancies lead to an increase in the valuation of the DBO. Main average assumptions The weighted average assumptions used in calculating the actuarial values of the most significant retirement plans as of 31 December 2024 are as follows: Pension plans in Germany France UK Participation in BAE Systems Pension Scheme in the UK Canada (Rate in %) 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Discount rate 3.5 3.4 3.5 3.4 5.6 4.5 5.5 4.5 4.7 4.6 Rate of compensation increase 3.1 3.4 2.7 3.0 3.3 3.2 3.3 3.2 3.0 3.0 Rate of pension increase 2.1 2.4 1.8 2.1 3.0 2.9 3.0 3.0 2.0 2.0 Inflation rate 2.1 2.4 1.8 2.1 3.1 3.0 3.2 3.1 2.0 2.0 AIRBUS - FINANCIAL STATEMENTS 2024 - 40
Discount rate For Germany and France, the Company derives the discount rate used to determine the DBO from yields on high quality corporate bonds with an AA rating. The determination of the discount rate is based on the iBoxx € Corporates AA bond data and uses the granularity of single bond data in order to receive more market information from the given bond index. The discount rate for the estimated duration of the respective pension plan is then extrapolated along the yield curve. In the UK, it is determined with reference to the full yield curve of AA-rated sterling-denominated corporate bonds of varying maturities. In Canada the discount rate is determined based on the yield of corporate bonds with AA rating. The salary increase rates are based on long-term expectations of the respective employers, derived from the assumed inflation rate and adjusted by promotional or productivity scales. Rate of pension increase — Rates for pension payment increases are derived from the respective inflation rate for the plan. Inflation rates — Inflation rate for German and French plans corresponds to the expected long-term increase in cost of living. In the UK, the inflation assumptions are derived by reference to the difference between the yields on index-linked and fixed-interest long-term government bonds. Mortality tables For the calculation of the German pension obligation, the “2018 G” mortality tables (generation tables) as developed by Professor Dr. Klaus Heubeck are applied, while the disability rates of the Heubeck Tables have been reduced to 30%, to align with actual observation. For the UK schemes, the Self-Administered Pensions S2 mortality tables based on year of birth (as published by the Institute of Actuaries) is used in conjunction with the results of an investigation into the actual mortality experience of scheme members. In France, Institute for French Statistics (“INSEE”) tables are applied. AIRBUS - FINANCIAL STATEMENTS 2024 - 41
Funded status for retirement and deferred compensation plans The development of the funded status for retirement and deferred compensation plans is set out below: DBO Plan assets (In € million) Pension plans of the Company Participation in BAE Systems Pension Scheme in the UK Total Pension plans of the Company Participation in BAE Systems Pension Scheme in the UK Total Total Funded status Balance at 1 January 2023 12,936 2,768 15,704 (9,683) (3,154) (12,837) 2,867 Service cost (including past service cost) 282 38 320 0 0 0 320 Interest cost and income 454 138 592 (342) (156) (498) 94 Remeasurements: actuarial (gains) and losses arising from changes in demographic assumptions (7) 15 8 0 0 0 8 changes in financial assumptions 365 172 537 0 0 0 537 changes in experience adjustments (209) 101 (108) 0 0 0 (108) plan assets 0 0 0 (515) 107 (408) (408) Changes in consolidation, transfers and others (67) 0 (67) (12) 0 (12) (79) Benefits paid (437) (113) (550) 156 113 269 (281) Contributions by employer and other plan participants 80 1 81 (567) (107) (674) (593) Foreign currency translation adjustments 16 57 73 (23) (65) (88) (15) Balance at 31 December 2023 13,413 3,177 16,590 (10,986) (3,262) (14,248) 2,342 Service cost (including past service cost) 319 42 361 0 0 0 361 Interest cost and income 435 145 580 (360) (147) (507) 73 Remeasurements: actuarial (gains) and losses arising from changes in demographic assumptions (20) (5) (25) 0 0 0 (25) changes in financial assumptions (554) (391) (945) 0 0 0 (945) changes in experience adjustments 188 (47) 141 0 0 0 141 plan assets (215) 262 47 47 Changes in consolidation, transfers and others (80) 0 (80) (14) 0 (14) (94) Benefits paid (469) (125) (594) 163 125 288 (306) Contributions by employer and other plan participants 86 1 87 (456) (56) (512) (425) Foreign currency translation adjustments 43 146 189 (61) (153) (214) (25) Balance at 31 December 2024 13,361 2,943 16,304 (11,929) (3,231) (15,160) 1,144 The figures shown in the table include the surplus in two pension funds in the UK and one in Canada, resulting from a defined benefit obligation and assets of € 4,137 million and € 4,814 million that have been accounted as a non-current asset (2023: € 4,360 million and € 4,733 million respectively). In the figures shown in the table, amounts of € 1,949 million and € 1,890 million are included for the defined benefit obligation and plan assets for deferred compensation plans in Germany (2023: € 1,873 million and € 1,712 million respectively). The past service cost included in the service cost amounts to € 2 million and € -6 million as of 31 December 2024 and 2023, respectively. The employer contributions amount to € 505 million and € 7 million for other plan participants during 2024 (2023: € 668 million and € 6 million respectively). Additionally, the Company considers liabilities for lump sum payments (one-off payment or lump sum instalments) under the German P3 pension arrangement in the total amount of € 210 million and € 194 million as of 31 December 2024 and 2023, respectively. AIRBUS - FINANCIAL STATEMENTS 2024 - 42
The funding of the plans is as follows: 31 December 2024 2023 (In € million) DBO Plan assets DBO Plan assets Unfunded pension plans 374 0 368 0 Funded pension plans (partial) 15,930 (15,160) 16,222 (14,248) Total 16,304 (15,160) 16,590 (14,248) As of 31 December 2024, provisions for pensions decreased by € 894 million. It mainly reflects the contributions to plan assets of € 402 million and the actuarial gains on pension obligations from financial assumptions of € 376 million driven by the increase in the discount rates as well as the decrease in the inflation assumptions. In 2024, employer contributions for retirement and deferred compensation plans amount to € 505 million. This consists of: - payments made to the pension and deferred compensation plans of the Company in Germany, UK and Canada of € 449 million (2023: € 247 million), mainly relating to a Contractual Trust Arrangement in Germany of € 333 million (2023: € 171 million), the relief fund in Germany of € 52 million (2023: € 0 million) and the Company UK scheme of € 50 million (2023: € 57 million); - payments made of € 1 million (2023: € 314 million) to partially fund the retirement indemnities provisions in France; - payments made to the participation in BAE Systems Pension Scheme in the UK of € 55 million (2023: € 107 million). Contributions of approximately € 500 million are expected to be made in 2025. The weighted average duration of the DBO for retirement plans and deferred compensation is 14 years at 31 December 2024 (31 December 2023: 15 years). Pension obligations by countries and type of beneficiaries The split of the DBO for retirement plans and deferred compensation between active, deferred and pensioner members for the most significant plans is as follows: Active Deferred Pensioner Germany 44% 10% 46% France 99% 0% 1% UK 51% 19% 30% Participation in BAE System Pension Scheme (Main Scheme) 35% 13% 52% Canada 82% 2% 16% Pension obligations and plan assets by countries and type of plans The split of the pension obligations and plan assets for retirement plans and deferred compensation for the most significant plans is as follows: Present value of DBO Plan assets Retirement plans Deferred Compensation plans Retirement plans Deferred Compensation plans Germany 81% 19% 80% 20% France 100% 0% 100% 0% UK 100% 0% 100% 0% Participation in BAE System Pension Scheme (Main Scheme) 100% 0% 100% 0% Canada 100% 0% 100% 0% AIRBUS - FINANCIAL STATEMENTS 2024 - 43
Pension obligations sensitivity to main assumptions The following table shows how the present value of the DBO of retirement plans and deferred compensation would have been influenced by changes in the actuarial assumptions as set out for 31 December 2024: Change in actuarial assumptions Impact on DBO Change at 31 December 2024 2023 Present value of the DBO 16,304 16,590 Discount rate Increase by 0.5%-point (1,037) (1,109) Decrease by 0.5%-point 1,157 1,242 Rate of compensation increase Increase by 0.25%-point 76 88 Decrease by 0.25%-point (74) (83) Rate of pension increase Increase by 0.25%-point 226 246 Decrease by 0.25%-point (219) (238) Life expectancy Increase by one year 367 394 Sensitivities are calculated based on the same method (present value of the DBO calculated with the projected unit credit method) as applied when calculating the post-employment benefit obligations. The sensitivity analyses are based on a change of one assumption while holding all other assumptions constant. This is unlikely to occur in practice and changes of more than one assumption may be correlated leading to different impacts on the DBO than disclosed above. If the assumptions change at a different level, the effect on the DBO is not necessarily in a linear relation. Plan assets allocation The fair value of the plan assets for retirement plans and deferred compensation can be allocated to the following classes: 2024 2023 (In € million) Quoted prices Unquoted prices Total Quoted prices Unquoted prices Total Equity securities Europe 546 0 546 475 0 475 Rest of the world 178 0 178 167 0 167 Emerging markets 216 0 216 206 0 206 Global 1,319 1,269 2,588 1,195 976 2,171 Bonds Corporates 3,780 1,055 4,835 3,842 1,027 4,869 Governments 3,717 0 3,717 3,067 0 3,067 Pooled investments vehicles 719 0 719 640 0 640 Commodities 0 0 0 0 0 0 Hedge funds 0 0 0 0 0 0 Derivatives 0 (35) (35) 0 (14) (14) Property 0 974 974 0 935 935 Cash and money market funds 187 112 299 320 193 513 Others 0 1,123 1,123 0 1,219 1,219 Balance at 31 December 10,662 4,498 15,160 9,912 4,336 14,248 The majority of funded plans apply broadly an asset-liability matching framework. The strategic asset allocation of the plans takes into account the characteristics of the underlying obligations. Investments are widely diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. A large portion of assets in 2024 consists of fixed income and equity instruments, although the Company also invests in property, private markets and other alternatives. The Company reassesses the characteristics of the pension obligations from time to time or as required by the applicable regulation or governance framework. This typically triggers a subsequent review of the strategic asset allocation. AIRBUS - FINANCIAL STATEMENTS 2024 - 44
Funded status by countries The funded status for retirement and deferred compensation plans can be allocated to the countries as follows: Pension plans of the Company (In € million) Germany France UK Canada Participation in BAE Systems Pension Scheme in the UK Total DBO 10,310 1,378 1,128 545 2,943 16,304 Plan assets 9,607 344 1,516 462 3,231 15,160 Balance at 31 December 2024 703 1,034 (388) 83 (288) 1,144 DBO 10,360 1,353 1,183 517 3,177 16,590 Plan assets 8,768 333 1,471 414 3,262 14,248 Balance at 31 December 2023 1,592 1,020 (288) 103 (85) 2,342 Contributions to defined contribution plans Employer’s contribution to state and private pension plans, mainly in Germany and France, are to be considered as defined contribution plans. Contributions in 2024 amounted to € 843 million (2023: € 723 million). 32. Share-based Payment Share-based compensation — From 2016 to 2020, the Company operated a Performance Units and Performance Shares Plan. Performance Units qualify as a cash-settled share-based payment plan under IFRS 2 and Performance Shares qualify as an equity-settled share-based payment plan under IFRS 2. Since 2021, the Company operates only a Performance Shares Plan. Plans granting Restricted Units, Performance Units and/or Performance Shares are also mentioned as “LTIP” in the following notes. Since 2018, the Company also operates exceptional grants of Performance and Restricted Units as well as Performance and Restricted Shares under an Equity Pool. Such exceptional grants are validated by specific resolutions from the Board of Directors and qualify as cash-settled or equity-settled share-based payment plans under IFRS 2. Accounting principles and methodology are the ones applied for LTIP as described below. For cash-settled plans, provisions for associated services received are measured at fair value by multiplying the number of units expected to vest with the fair value of one LTIP unit at the end of each reporting period, taking into account the extent to which the employees have rendered service to date. Changes of the fair value are recognised as personnel expenses of the period, leading to a re-measurement of the provision. The fair value of Performance Units is re-measured at each closing date as far as they are not paid. For equity-settled plans, compensation expense is measured at the grant date at the fair value by multiplying the number of shares expected to vest by the fair value of one LTIP share taking into account the extent to which the employees have rendered service to date. The compensation expense is accounted for over the vesting period of each LTIP equity-settled plans. The fair value of each LTIP share (equity or cash-settled plans) is determined using a forward pricing model and is based on publicly available risk-free rate, volatility and dividend rate. Besides the equity-settled plans described above, the Employee Share Ownership Plan (“ESOP”) is an additional equity-settled share-based payment plan. Under this plan, the Company offers its employees Airbus SE shares at fair value matched with a number of free shares based on a determining ratio. The fair value of shares provided is reflected as personnel expenses in the Company’s Consolidated Income Statement with a corresponding increase in equity. 32.1 LTIP The Company hedges the share price risk inherent in the cash-settled LTIP units by entering into equity swaps where the reference price is based on the Airbus SE share price. To the extent that cash-settled LTIP units are hedged, compensation expense recognised for these units will effectively reflect the reference price fixed under the equity swaps. In order to avoid any dilution of its current shareholders out of equity-settled LTIP units, the Company used to perform share buybacks to meet its obligations to its employees, following the decisions of the Board of Directors and approval of the Annual General Meeting (“AGM”). In 2024, compensation expenses for LTIPs (incl. Equity Pool) including the effect of the equity swaps amounted to € 77 million (2023: € 72 million), among which € 11 million for cash-settled plans (2023: € 22 million) and € 66 million for equity-settled plans (2023: € 50 million). As of 31 December 2024, provisions of € 38 million (2023: € 72 million) relating to LTIP units (cash-settled) have been accounted for. AIRBUS - FINANCIAL STATEMENTS 2024 - 45
The lifetime of the Performance Units as well as Performance Shares is contractually fixed (see the description of the respective tranche in the following table). For the units, the measurement is next to other market data, mainly affected by the share price as of the end of the reporting period (€ 154.78 as of 31 December 2024) and the lifetime of the units. The fair value of units and shares granted in the frame of the LTIP 2024 plan is as follows: Expected vesting date Fair value of Performance Shares (In € per unit / share granted) May 2028 - Performance Shares 156.94 The principal characteristics of the LTIPs as of 31 December 2024 are summarised below: LTIP 2019 (7) LTIP 2020 (8) LTIP 2021 (9) LTIP 2022 LTIP 2023 LTIP 2024 Grant date (1) 29 October 2019 28 October 2020 15 December 2021 14 December 2022 14 December 2023 12 December 2024 Performance Units and Performance Shares Plan Units/Shares Units Shares Units Shares Shares Shares Shares Shares Number of units/shares granted (2) 247,508 246,508 420,004 420,004 520,870 649,373 558,055 546,855 Fair value at grant date (3) €112.83 / €108.44 €112.92 €51.04 / €46.98 €55.49 €89.83 €110.85 €141.80 €156.94 Fair Value of performance units as of 31 December 2024 (3) - n.a. 131.37 n.a. n.a. n.a. n.a. n.a. Number of units/shares granted through Equity Pool (4) 4,343 4,252 2,473 2,473 19,693 23,156 5,260 0 Number of units/shares outstanding (5) 0 0 279,880 0 478,833 643,656 556,669 546,582 Total number of eligible beneficiaries 1,576 1,603 1,785 1,579 1,584 1,612 Vesting conditions The Performance Units and Performance Shares will vest if the participant is still employed by a company of the Group at the respective vesting dates and upon achievement of mid-term business performance. Vesting schedule is made up of two payments over two years for units, one date of delivery for shares. Limited Share price per unit at vesting dates to (6) €244.12 n.a. €136.08 n.a. n.a. n.a. n.a. n.a. Expected Vesting dates 50% each in June 2023 and in June 2024 100% in May 2023 50% each in June 2024 and in June 2025 100% in May 2024 100% in May 2025 100% in May 2026 100% in May 2027 100% in May 2028 Number of accelerated vested units/ shares (10) 0 0 710 710 495 152 125 0 Number of vested units/shares 110,293 109,802 285,298 563,414 0 0 0 0 (1) Date, when the vesting conditions were determined. (2) 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 the Company) 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). (3) Values are provided for units corresponding per vesting date. (4) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions. (5) Including 8,275 Performance Shares granted through the Equity Pool in 2024. (6) Corresponds to 200% of the respective reference share price. Overall, the pay-out for Performance Units is limited to a total amount of 250% of the units originally granted, each valued with the respective reference share price of € 122.06 (for LTIP 2019), € 68.04 (for LTIP 2020). (7) Based on performance achievement of 50% for Performance Units under LTIP 2019. (8) Based on performance achievement of 150% for Performance Units under LTIP 2020. (9) Based on performance achievement of 96% for Performance Units under LTIP 2021. (10) Accelerated vesting following the death of a beneficiary. AIRBUS - FINANCIAL STATEMENTS 2024 - 46
Additionally, the Board of Directors approved in 2024 the exceptional grant of 252 Restricted Units and 12,664 Restricted Shares (2023: 988 Units and 23,414 Shares) under the Equity Pool with an average fair value of € 122.53. In 2024, 28,253 Shares have vested (2023: 1,138 Units and 14,117 Shares). The number of units granted under the Equity Pool and outstanding as of 31 December 2024 is 1,671 Units and 46,001 Shares (2023: 1,149 Units and 63,368 Shares). 32.2 ESOP In 2024, the Board of Directors approved a new ESOP scheme, like in 2023. Eligible employees were able to purchase a fixed number of shares at fair market value (5, 10, 15, 30, 60 or 100 shares in 2024 and in 2023). The Company matched each fixed number of shares with a number of the Company free shares based on a determined ratio ( 5, 9, 12, 20, 35, 55 free shares in 2024 and in 2023, before reduction in case of oversubscription). During a custody period of at least three years, employees are restricted from selling or transferring the shares, but have the right to receive all dividends paid. Employees who directly purchased the Airbus SE 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 2024 (2023: 15 February 2023) and amounted to € 150.26 (2023: € 119.06) higher share price ever. 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 14 February 2024 (2023: 15 February 2023), resulting in a price of € 149.20 (2023: € 116.68). In 2024, the company sold 2,096,115 ordinary shares (2023:1,314,184) with a nominal value of € 1.00 each (so called subscribed shares): 662,109 sourced via share issuance (2023: 1,314,184) and 1,434,006 through share buy back. In 2024, the Company distributed 1,403,857 matching ordinary shares (2023: 876,419) with a nominal value of € 1.00 each: 1,162,140 sourced via share issuance (2023: 876,419) and 241,717 through share buy back. Compensation expense (including social security contributions) of € 273 million (2023: € 118 million) was recognised in connection with ESOP in 2024. 33. Remuneration 33.1 Remuneration – Executive Committee The Company’s key management personnel consists of Members of the Executive Committee and Non-Executive Board Members. The Chief Executive Officer (“CEO”), who chairs the Executive Committee, is the sole Executive Board Member. The annual remuneration and related compensation costs of the key management personnel as expensed in the respective year can be summarised as follows: (In € million) 2024 2023 (2) Executive Committee, including Executive Board Member Salaries and other short-term benefits (including bonuses) 19.8 18.3 Post-employment benefit costs 5.5 2.4 Share-based remuneration ("LTIP award", including associated hedge result) 11.0 9.5 Termination benefits 1.9 0 Other benefits 0.4 0.3 Social charges (1) 6.9 5.7 Non-Executive Board Members Short-term benefits (including social charges) 3.2 3.0 Total expense recognised 48.7 39.2 (1) Costs of benefits provided through applicable mandatory collective and social security plans are accounted for among social charges. (2) 2023 figures have been restated to reflect late changes already included in the “Airbus Annual Report 2023” Salaries and Other Short-Term Benefits (Including Bonuses) The amount of bonuses is based on estimated performance achievement as at the balance sheet date and difference between previous year estimation and actual pay-out in the current year. Outstanding short-term benefits (bonuses) at year-end 2024 for Executive Committee Members based on estimated performance achievement at year-end was € 10.0 million (2023: € 9.5 million). AIRBUS - FINANCIAL STATEMENTS 2024 - 47
In order to support the Company’s target of reducing its Scope 1 and 2 carbon emissions by 63% by 2030, the Board of Directors decided to translate this ambition into a concrete objective and include the CO2 reduction target in the collective variable remuneration of the CEO and all executives. Post-Employment and Other Long-Term Benefits The post-employment and other long-term benefits defined obligation for the Executive Committee, including the CEO, amounted to € 19.6 million as of 31 December 2024 (2023: € 15.0 million). The disclosed post-employment and other long-term benefits reflect the total outstanding balance for all Executive Committee Members in charge at the end of the respective balance sheet date. Share-Based Remuneration (“LTIP Award”) The share-based payment expenses result from not yet forfeited units and shares granted to the Executive Committee Members under the Company’s LTIP which are re-measured at fair value according to the methodology described in “– Note 32: Share-based Payment”. For LTIP 2024, the Members of the Executive Committee were granted 58,728 Performance Shares (2023: 65,939). The respective fair value of these Shares at grant date was € 10.2 million (2023: € 10.3 million). As of 31 December 2024, provisions of € 4.6 million (2023: € 8.6 million) relating to LTIP have been recognised. The total number of outstanding Performance Units and Performance Shares granted to the current Members of the Executive Committee amounted to 33,455 and 270,246 respectively as of 31 December 2024 (2023: 70,992 Performance Units and 273,325 Performance Shares). Termination Benefits The following benefits apply to Executive Committee Members, except the CEO. In the case of contract termination, the Executive Committee Members are entitled to an indemnity equal to 1.5 times the Total Target Remuneration (defined as Base Salary and target Annual Variable Remuneration) with respect to applicable local legal requirements, if any. This will not apply if the Executive Committee mandate is terminated for cause, in case of dismissal, if the Executive Committee Member resigns or has reached retirement age. The Executive Committee Members’ contract includes a non-compete clause which applies for a minimum of one year and can be extended at the Company’s initiative for a further year. The Board of Directors has the discretion to waive or invoke the extension of the non-compete clause when legally or contractually possible. The compensation for each year that the non-compete clause applies is equal to 50% of the last Total Annual Remuneration (defined as Base Salary and Annual Variable Remuneration most recently paid) with respect to applicable local legal requirements, if any. Past LTIP awards may be maintained in full or prorated, in such cases as in case of retirement or if a mandate is not renewed by the Company without cause, pro rata being based on the presence in the Company during performance periods. The vesting of past LTIP awards follows the plans’ rules and regulations and is not accelerated in any case. LTIP awards are forfeited for Executives who leave the Company on their own initiative, but this is subject to review by the Board of Directors. The termination benefits include assumptions about all effective, known or planned terminations to date. Other Benefits Other benefits include expenses for Executive Committee Members’ medical, death and disability coverage, company car and other usual facilities as applicable. 33.2 Remuneration – CEO The annual remuneration and related compensation costs of the CEO as expensed in the respective year can be summarised as follows: (In €) 2024 2023 Base salary 1,485,000 1,485,000 Annual variable pay 1,692,900 1,945,350 Post-employment benefit costs 1,121,057 (1,049,054) Share-based remuneration ("LTIP award") (1) 2,117,379 1,997,522 Termination benefits 0 0 Other benefits 35,292 34,969 Social charges (2) 1,539,606 1,312,061 (1) Expense related to share-based payment plans as recognised in the annual period (service period) including the result from the hedge of cash-settled share-based payment (see “– Note 32: Share-Based Payment”). (2) Social charges depend on the applicable regulation to the CEO. In France, social charges comprise benefits accrued through mandatory collective and state plans such as pension, death and disability or medical coverage. AIRBUS - FINANCIAL STATEMENTS 2024 - 48
Annual Variable Pay The annual variable pay is based on estimated performance achievement as at the balance sheet date and difference between the previous year’s estimation and actual pay-out in the current year. Post-Employment Benefit Costs Post-employment benefit costs relate to the aggregated amount of current service and interest costs for defined benefit plan and company cost for contributions base plans. Following the Board decision approved in the AGM 2020, the CEO pension rights are accrued through a defined contributions plan from 1 January 2020, which coexists with the former defined benefit pension plan. The accrued pension rights under the former defined benefit plan have been frozen at the end of 2019 and remain unvested until the retirement date of the CEO. The pension rights arising from the Company's defined contribution plan are deducted from the frozen defined pension rights. As of 31 December 2024, the defined benefit obligation related to the frozen defined benefit commitment amounts to € 4,172,786 (2023: € 3,875,518). This obligation has been accrued in the 2024 Consolidated Financial Statements and will be updated annually up to the retirement date of the CEO considering additional service cost and future changes on economic assumptions or other factors like salary increase. For the fiscal year 2024, the cost related to the CEO’s pension rights accrued under Company’s plans during the year represented an expense of € 1,121,057 (2023: net profit of €1,049,054 composed by an expense of € 1,404,951 and the effect of the French pension reform leading to a release of provision of € 2,454,006). The annual cost of pension rights accrued under applicable mandatory collective and state pension plans are accounted for among social charges. Share-based Remuneration The table below gives an overview of the interests of the CEO, under the various LTIPs of the Company: Granted Date LTIP 2019 LTIP 2020 LTIP 2021 LTIP 2022 LTIP 2023 LTIP 2024 Performance Units and Shares 11,060 19,840 12,121 14,115 11,619 10,839 Revaluation 50% 150% 96% 100% 100% 100% Performance Units and Shares revalued 5,531 29,760 11,636 14,115 11,619 10,839 Vested in 2024 in cash 1,383 7,440 0 0 0 0 in shares 0 14,880 0 0 0 0 Outstanding 2024 in cash 0 7,440 0 0 0 0 in shares 0 0 11,636 14,115 11,619 10,839 Vesting schedule Cash-settled units For vesting dates, see Note 32.1 LTIP Equity-settled units May 2023 May 2024 May 2025 May 2026 May 2027 May 2028 Vesting of all Performance Units and Performance Shares granted to the CEO is subject to performance conditions. As of 31 December 2024, provisions of €1,067,651 (2023: € 2,074,739) relating to Performance Units have been recognised. The pay-out from vested cash-settled LTIP in 2024 was € 1,065,916 (2023: € 304,862) excluding social charges. Termination Benefits The termination benefit applicable to the CEO is described in the Company’s Remuneration policy. Other Benefits As stipulated in the Company’s Remuneration Policy, 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 the French social security system and mandatory collective Company’s plans), a company car and usual facilities. Costs of benefits provided through applicable mandatory collective and social security plans are accounted for among social charges. The monetary value of other benefits provided to the CEO in 2024 amounted to € 35,292 (2023: € 34,969). The Company has not provided any loans to, advances to and guarantees on behalf of the CEO. 33.3 Remuneration – Board of Directors The remuneration of the Non-Executive Members of the Board of Directors was as follows: AIRBUS - FINANCIAL STATEMENTS 2024 - 49
2024 2023 (7) (In €) Fixum (1) Attendance Fees (2) Total Fixum (1) Attendance Fees (2) Total Non-Executive Board Members René Obermann 500,000 120,000 620,000 500,000 (3) 105,000 605,000 (3) Victor Chu 150,000 66,500 216,500 150,000 62,000 212,000 Jean-Pierre Clamadieu 210,000 82,000 292,000 210,000 76,000 286,000 Mark Dunkerley 180,000 110,000 290,000 180,000 94,000 274,000 Stephan Gemkow 150,000 81,000 231,000 150,000 76,000 226,000 Catherine Guillouard 210,000 86,000 296,000 210,000 63,000 273,000 Amparo Moraleda 210,000 82,000 292,000 210,000 69,500 279,500 Claudia Nemat 150,000 67,500 217,500 150,000 56,500 206,500 Irene Rummelhoff 150,000 78,000 228,000 150,000 55,000 205,000 Antony Wood (4) 150,000 86,000 236,000 141,050 70,000 211,050 Dr Fei Yu Xu (5) 108,791 60,000 168,791 - - - Former Non-Executive Board Members Ralph D. Crosby, Jr. (6) 75,000 15,000 90,000 150,000 70,000 220,000 Total 2,243,791 934,000 3,177,791 2,201,050 797,000 2,998,050 (1) Fixum includes a base fee for Board membership and the relevant Committee membership as the case may be (Audit Committee, Remuneration, Nomination and Governance Committee ("RNGC") and Ethics, Compliance and Sustainability Committee ("ECSC"). The fixum for the year 2024 was paid 50% in January 2024 and 50% in July 2024. The fixum for the year 2023 was paid 50% in January 2023 and 50% in July 2023. (2) 2024 attendance fees include the Board attendance fees and the fees in relation to the relevant Committee (Audit Committee, RNGC and ECSC) meetings. The Board attendance fees related to the first semester 2024 were paid in July 2024, those related to the second semester 2024 were paid in January 2025. The Committees’ attendance fees related to the full year 2024 were paid in January 2025. (3) Amount before donation to several charitable organisations by the chairman of the portion exceeding his fixed remuneration perceived in 2022 as mentioned in the 2023 Board report. (4) Member of the Audit Committee since 19 April 2023. (5) Member of the Board of Directors and Audit Committee since 10 April 2024. (6) Member of the Board and ECSC until 10 April 2024. (7) 2023 figures have been restated to reflect late changes already included in the “Airbus Annual Report 2023”. 2.7 Capital Structure and Financial Instruments 34. Total Equity 34.1 Equity Attributable to Owners of the Parent The Company’s shares are exclusively ordinary shares with a par value of € 1.00. The following table shows the development of the number of shares issued and fully paid: (In number of shares) 2024 2023 Issued at 1 January 790,459,434 788,205,008 Issued for ESOP 1,824,249 2,254,426 Issued at 31 December 792,283,683 790,459,434 Treasury shares (4,327,432) (3,037,467) Outstanding at 31 December 787,956,251 787,421,967 Holders of ordinary shares are entitled to dividends and to one vote per share at general meetings of the Company. Equity attributable to owners of the parent (including purchased treasury shares) amounts to € 19,606 million (2023: € 17,695 million) representing an increase of € +1,911 million. This is mainly due to the net income for the period of € +4,232 million and partly offset by a dividend payment of € -2,215 million (a dividend of € 1.80 per share and a special one of 1.00 € per share). Capital stock comprises the nominal amount of shares outstanding. The addition to capital stock represents the contribution for exercised options by employees of € 1,824,249 (2023: € 2,254,426) in compliance with the implemented ESOPs. Share premium mainly results from contributions in kind in the course of the creation of the Company, cash contributions from the Company’s initial public offering, capital increases and reductions due to the issuance and cancellation of shares. Retained earnings include mainly the profit for the period and the changes in other comprehensive income from remeasurements of the defined benefit pension plans net of tax which amounts to € +672 million in 2024 (2023: € -284 million). On 10 April 2024, the AGM decided to distribute a gross amount of € 1.80 per share and a special dividend of € 1.00 per share, which was paid on 18 April 2024. For the fiscal year 2024, the Board of Directors will propose the payment of a dividend of € 2.00 per share AIRBUS - FINANCIAL STATEMENTS 2024 - 50
and a special dividend of € 1.00 per share to the 2024 Annual General Meeting taking place on 15 April 2025. The proposed payment date is 24 April 2025. Treasury shares represent the amount paid or payable for own shares held in treasury. During 2024, the number of treasury stock held by the Company increased to 4,327,432 compared to 3,037,467 as of 31 December 2023, mainly due to the share buybacks partly offset by delivery of shares under ESOP in 2024 and vested shares under LTIP 2020 (see “– Note 32: Share-based Payment”). No shares were sold back to the market nor cancelled (2023: 0 shares). On 10 April 2024, the AGM of the Company authorised the Board of Directors, for a period expiring at the AGM to be held in 2025, to issue shares and to grant rights to subscribe for shares in the Company’s share capital for the purpose of: - ESOPs and share-related LTIPs, provided that such powers shall be limited to an aggregate of 0.18% of the Company’s authorised share capital (see “– Note 32: Share-based Payment”); - funding the Company and its subsidiaries, provided that such powers shall be limited to an aggregate of 0.3% of the Company’s authorised share capital (see “– Note 36.3: Financing Liabilities”). For each operation, such powers shall not extend to issuing shares or granting rights to subscribe for shares if there is no preferential subscription right and for an aggregate issue price in excess of € 500 million per share issuance. On 10 April 2024, the AGM authorised the Board of Directors for an 18-month period to repurchase up to 10% of the Company’s issued share capital 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. Furthermore, the AGM authorised the Board of Directors to determine on a case-by-case basis the share repurchase programmes to be implemented by the Company, if any. 34.2 Non-Controlling Interests The non-controlling interests (“NCI”) from non-wholly owned subsidiaries increased to € 90 million as of 31 December 2024 (2023: € 35 million). These NCI do not have a material interest in the Company’s activities and cash flows. 35. Capital Management The Company seeks to maintain a strong financial profile to safeguard its going concern, financial flexibility as well as shareholders’, credit rating agencies’, credit investors’ and other stakeholders’ confidence in the Company. Consequently, operating liquidity is of great importance. As part of its capital management, it is one of the Company’s objectives to maintain a strong credit rating by institutional rating agencies. This enables the Company to contain its cost of capital which positively impacts its stakeholder value (entity value). Next to other non-financial parameters, the credit rating is based on financial indicators such as cash flow, profitability, leverage ratios and liquidity ratios. The Company monitors these ratios to keep them in a range compatible with a strong rating. Rating agency Long-term rating Outlook Short-term rating Standard and Poor's A Stable A-1 Moody's Investors Services A2 Positive P-1 Fitch Ratings (unsolicited) A- Positive F1 The stand-alone rating reflects the Company’s strong backlog providing revenue visibility, dominant market position in the single-aisle market, operating performance and overall its strong positioning to benefit from the recovery in air travel demand. It also reflects Airbus’ exceptional liquidity, solid balance sheet as well as its prudent financial policy. Finally, it reflects the management’s focus on programme execution, profitability and cash generation improvement. In accordance with the Company’s conservative financial policy, a strong rating is key to maintain a wide array of funding sources at competitive conditions, to have broad access to long-term hedging and to strengthen the Company’s position as a financially sound counterparty for its customers and suppliers. Every year, the Company constructs a five-year plan used to assess its financial flexibility at current ratings and a value creation ambition. It is composed of (i) EBIT and (ii) Free Cash Flow, which is defined as Cash provided by operating activities and Cash used for investing activities less Change of securities, Contribution to plan assets for pensions, realised Treasury swaps and bank activities. The Company uses the WACC to determine the Net Present Value (“NPV”), which is used for any investment decision. The Company also monitors the level of dividends paid to its shareholders. AIRBUS - FINANCIAL STATEMENTS 2024 - 51
The Company generally satisfies its obligations arising from ESOPs and Share Incentive Plans (“SIPs”) by issuing new shares. In order to avoid any dilution of its current shareholders out of ESOP, Share Incentive Plans (“SIPs”) and LTIPs, the Company performs share buybacks to meet its obligations to its employees, following the decisions of the Board of Directors and approval of the AGM. Apart from this purpose, the Company generally does not trade with treasury shares. The Company complies with the capital requirements under applicable law and its Articles of Association. 36. Net Cash The net cash is comprised of the following elements: 31 December (In € million) 2024 2023 Cash and cash equivalents 15,003 16,469 Current securities 2,829 1,301 Non-current securities 9,032 7,508 Gross cash position 26,864 25,278 Short-term financing liabilities (3,924) (3,389) Long-term financing liabilities (10,355) (10,202) Interest rate contracts (832) (961) Total 11,753 10,726 The net cash position on 31 December 2024 amounted to € 11,753 million (2023: € 10,726 million), with a gross cash position of € 26,864 million (2023: € 25,278 million). Derivative instruments recognised on the Company’s Statement of Financial Position consist of (i) instruments that are entered into as hedges of the Company’s operating activities or interest result, and (ii) embedded foreign currency derivatives that arise from separating the foreign currency component from certain operating contracts. Cash flows resulting from the settlement of these derivatives are therefore recorded as part of cash flow from operations. Similarly, financial assets and liabilities arising from customer financing activities and refundable advances from European Governments are considered part of operating activities and related cash flows are hence recognised as cash flows from operating activities. 36.1 Cash and Cash Equivalents Cash and cash equivalents are composed of the following elements: 31 December (In € million) 2024 2023 Bank account and petty cash 4,219 3,050 Short-term securities (at fair value through profit or loss) 10,042 12,409 Short-term securities (at fair value through OCI) 742 1,010 Total cash and cash equivalents 15,003 16,469 Only securities with a maturity of three months or less from the date of the acquisition, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, are recognised in cash equivalents. Cash and cash equivalents have decreased by € +1.5 billion from € 16.5 billion as of 31 December 2023 to € 15.0 billion as of 31 December 2024. They include payments received in advance from certain customers and payments made to suppliers in anticipation. The main variations are as follows: Cash provided by operating activities amounts to € +7.4 billion in 2024, primarily driven by a profit translated into cash and a positive impact from working capital. The latter is driven by larger contract liabilities reflecting higher advance payments including significant and anticipated predelivery payments from certain customers, partly offset by increase in inventory and a net negative impact from payments made to suppliers in anticipation. Cash used for investing activities amounts to € -6.7 billion, mainly reflecting capital expenditure and investments in securities. Cash used for financing activities amounts to € -2.6 billion and includes mainly the cash distribution to Airbus SE shareholders of € -2.2 billion. 36.2 Securities The majority of the Company’s securities consists of debt securities and are classified at fair value through OCI (see “– Note 37.2: Carrying Amounts and Fair Values of Financial Instruments”). AIRBUS - FINANCIAL STATEMENTS 2024 - 52
The Company’s securities portfolio amounts to € 11,861 million and € 8,809 million as of 31 December 2024 and 2023, respectively. The security portfolio contains a non-current portion of € 9,032 million (2023: € 7,508 million), and a current portion of € 2,829 million (2023: € 1,301 million). Included in the securities portfolio as of 31 December 2024 and 2023, respectively, are corporate and government bonds bearing either fixed rate coupons (€ 12,059 million nominal value; 2023: € 9,156 million) or floating rate coupons (€ 10 million nominal value; 2023: € 0 million). When the Company enters into securities lending or other financing activities that involve the pledging of securities as collateral, the securities pledged continue to be recognised on the balance sheet. As of 31 December 2024 and 2023, they were no securities pledged as collateral for borrowings from banks. 36.3 Financing Liabilities Financing liabilities include debt obligations towards financial institutions, issued corporate bonds, deposits made by customers of Airbus Bank, borrowings received from joint ventures and other parties as well as finance lease liabilities. Financing liabilities are recorded initially at the fair value of the proceeds received, net of transaction costs incurred. Subsequently, financing liabilities are measured at amortised cost, using the effective interest rate method with any difference between proceeds (net of transaction costs) and redemption amount being recognised in total finance income (cost) over the period of the financing liability. Financing liabilities to financial institutions may include liabilities from securities lending transactions. In securities lending transactions, the Company receives cash from its counterparty and transfers the securities subject to the lending transaction as collateral. The counterparty typically has the right to sell or repledge the securities pledged. The amount of cash received is recognised as a financing liability. The securities pledged are not derecognised, but remain on the Company’s Statement of Financial Position. 31 December (In € million) 2024 2023 Bonds and commercial papers 7,986 8,250 Liabilities to financial institutions 382 323 Loans 291 233 Lease liabilities 1,696 1,396 Total long-term financing liabilities 10,355 10,202 Bonds and commercial papers 556 817 Liabilities to financial institutions 26 1 Loans 85 81 Lease liabilities 253 221 Others (1) 3,004 2,269 Total short-term financing liabilities 3,924 3,389 Total 14,279 13,591 (1) Included in “others” are financing liabilities to joint ventures. Long-term financing liabilities, mainly comprising of bonds and lease liabilities, increased by € +153 million to € 10,355 million (2023: € 10,202 million), mainly due to higher lease liabilities and increase in the value of bonds partly offset by bonds reclassification to short-term liabilities maturing in April 2025 (EMTN 5 years). Short-term financing liabilities increased by € +535 million to € 3,924 million (2023: € 3,389 million) mainly due to the EMTN 5 years reclassification in short-term financing liabilities maturing in April 2025 and financing liabilities to joint ventures partly offset by the EMTN 10 years bond repayment in April 2024. The Company has several euro-denominated bonds issued under its EMTN programme, two stand-alone US dollar-denominated bonds issued on the US institutional market under Rule 144A and one US Private Placement, outstanding as of 31 December 2024. The Company can issue commercial papers under its € 11 billion Negotiable European Commercial Paper (“NEuCP”) programme, its € 4 billion Euro Commercial Paper (“ECP”) programme and its $ 3 billion US Commercial Paper programme. As of 31 December 2024, there were no outstanding amounts under any of its commercial paper programmes. On 31 January 2023, the Company signed a lease agreement with Mobile Airport Authority (“MAA”) for a new Final Assembly Line designed by Airbus and to be constructed in Mobile, Alabama on MAA owned land. The expected cost of construction is funded through the issuance of bonds by MAA for a nominal amount of US$ 1.0 billion, the proceeds of which are used solely for that purpose. The bonds are fully guaranteed by the Company which is supervising the construction and is liable for any cost overruns. As of 31 December 2024, the project has entered into service for a corresponding amount of US$ 245 million of lease liability. In accordance with IFRS 16 and the Company’s accounting policies for the classification of interests’ cash flows, the lease liability payments to be made over the lease term will be recognised in financing cash flows for the principal portion and in operating cash flows for the interest portion. AIRBUS - FINANCIAL STATEMENTS 2024 - 53
The terms and repayment schedules of these bonds and loans are as follows: Principal amount Carrying amount Issuance date Coupon or interest rate Effective interest rate Maturity date Additional features (In € million) 31 December (In million) 2024 2023 EMTN 10 years € 823 0 817 Apr 2014 2.38% 2.42% Apr 2024 Interest rate swapped into 3M Euribor +1.40% EMTN 5 years € 561 556 535 Mar 2020 1.63% 1,80% April 2025 Interest rate swapped into 3M Euribor +2.01% EMTN 10 years € 461 448 436 May 2016 0.88% 0.98% May 2026 Interest rate swapped into 3M Euribor +0.50% EMTN 6 years € 894 861 832 June 2020 1,38% 1,47% Jun. 2026 Interest rate swapped into 3M Euribor +1.66% EMTN 8 years € 611 565 546 Mar 2020 2.00% 2.10% April 2028 Interest rate swapped into 3M Euribor +2.15% EMTN 15 years € 500 478 469 Oct 2014 2.12% 2.21% Oct 2029 Interest rate swapped into 3M Euribor +0.84% EMTN 10 years € 1,250 1,103 1,068 June 2020 1.63% 1,74% Jun. 2030 Interest rate swapped into 3M Euribor +1.61% EMTN 15 years € 900 813 793 May 2016 1.38% 1.50% May 2031 Interest rate swapped into 3M Euribor +0.66% EMTN 12 years € 1,000 849 822 Mar 2020 2,38% 2.49% April 2032 Interest rate swapped into 3M Euribor +2.24% EMTN 20 years € 1,000 734 706 June 2020 2.38% 2,44% Jun. 2040 Interest rate swapped into 3M Euribor +1.93% US$ Bond 10 years US$ 750 693 641 Apr 2017 3.15% 3.20% Apr 2027 Interest rate swapped into 1D SOFR US$ Bond 30 years US$ 750 643 651 Apr 2017 3.95% 4.02% Apr 2047 Interest rate swapped into 1D SOFR +0.31% ACLP Private placement US$ 830 799 751 July 2020, Dec 2020 1.98% - 2.54% 2.77% - 3.09% July 2026 to July 2029 Bonds 8,542 9,067 European Investment Bank € 165 154 165 Dec 2023 3M Euribor +0.498% 3M Euribor +0.498% Dec. 2038 KfW Developpement Bank €150 136 48 July 2023 3M Euribor +0.59% 3M Euribor +0.59% Jul. 2029 Others 118 111 Liabilities to financial institutions 408 324 Total 8,950 9,391 Thereof non-current financing liabilities 8,368 8,574 Thereof current financing liabilities 582 817 Reconciliation of liabilities arising from financing liabilities as of 31 December 2024 is as follows: Non-cash movements (In € million) Balance at 1 January 2024 Cash flows Changes in scope Foreign exchange movements Others Balance at 31 December 2024 Bonds and commercial papers 9,067 (818) 0 129 164 8,542 Liabilities to financial institutions 324 80 0 4 0 408 Loans 314 (66) 0 2 126 376 Finance lease liabilities 1,617 (324) 0 48 608 1,949 Others 2,269 696 0 39 0 3,004 Total 13,591 (432) 0 222 898 14,279 AIRBUS - FINANCIAL STATEMENTS 2024 - 54
Reconciliation of liabilities arising from financing liabilities as of 31 December 2023 is as follows: Non-cash movements (In € million) Balance at 1 January 2023 Cash flows Changes in scope Foreign exchange movements Others Balance at 31 December 2023 Bonds and commercial papers 8,681 12 0 (75) 449 9,067 Liabilities to financial institutions 410 (59) 0 (2) (25) 324 Loans 158 29 0 0 127 314 Finance lease liabilities 1,734 (267) 0 (23) 173 1,617 Others 1,790 480 0 (2) 1 2,269 Total 12,773 195 0 (102) 725 13,591 37. Financial Instruments 37.1 Financial Risk Management By the nature of its activities, the Company is exposed to a variety of financial risks: (i) market risks, in particular foreign exchange risk, but also interest rate risk, equity price risk and commodity price risk, (ii) liquidity risk and (iii) credit risk. The Company’s overall financial risk management activities focus on mitigating unpredictable financial market risks and their potential adverse effects on the Company’s operational and financial performance. The financial risk management of the Company is generally carried out by the Treasury department of the Company under policies approved by the Board of Directors or by the Chief Financial Officer. The identification, evaluation and hedging of the financial risks is in the joint responsibility of several established specific committees such as the Foreign Exchange Committee and the Asset Liability Management Committee, including the Company business segments. The Company uses financial derivatives solely for risk mitigating purposes (“hedging”) and applies hedge accounting for a significant portion of its hedging portfolio. Market Risk Foreign exchange risk Foreign exchange risk arises when future commercial transactions or firm commitments, recognised monetary assets and liabilities and net investments in foreign operations are denominated in a currency that is not the entity’s functional currency. The Company manages a long-term hedge portfolio with maturities of several years covering its net exposure to US dollar sales, mainly from the commercial activities of Airbus. This hedge portfolio covers a large portion of the Company’s firm commitments and highly probable forecasted transactions. For Airbus, the highly probable criteria of the underlying foreign currency exposure of cash flow hedges is assessed based on the IFRS15 backlog value analysis. This consists in reducing the contractual firm backlog by all deliveries which cannot be considered as highly probable due to the existence of either cancellation rights, risk of bankruptcy or other risk of order restructuring. The latter assessments is taking into account customers’ situation and commercial aspects. The resulting backlog is further adjusted to the foreign exchange management hedging horizon. The highly probable underlying foreign currency exposure is then capped to the production plan when applicable. Most of the Company’s revenue is denominated in US dollars, while a major portion of its costs is incurred in euro and to a lesser extent in other foreign currencies. Consequently, to the extent that the Company does not use financial instruments to hedge its exposure resulting from this currency mismatch, its profits will be affected by changes in the €/US$ exchange rate. As the Company intends to generate profits primarily from its operations rather than through speculation on exchange rate movements, it uses hedging strategies to manage and minimise the impact of exchange rate fluctuations on these profits. With respect to its commercial aircraft products, as of 30 June 2018, the Company adopted a new hedge strategy to hedge its net exposure (US dollar revenue less US dollar cost) resulting from commercial aircraft deliveries of specific aircraft types. The strategy more closely aligns hedge accounting with risk management activities. Under the new strategy the foreign exchange derivatives used as hedging instruments are designated as a hedge of a portion of the cash flows received for each of a number of deliveries of a specific aircraft type that are expected to occur in a given month and hence will allow the hedge result to move along with the hedged deliveries in the event of a shift in deliveries. If such a shift in hedged deliveries occurs, hedge ineffectiveness will arise to the extent the maturities of the hedging instrument and the expected timing of the hedged cash flows are no longer perfectly aligned. In order to minimise such ineffectiveness, the Company will close the timing gap by rolling over hedges to new maturities, using foreign exchange swap contracts. In addition, the Company will designate the risk of changes in the spot element as the hedged risk in order to eliminate the ineffectiveness resulting from changes in forward points between different maturities. The forward element will be accounted for as a cost of hedging similar to the time value of options. Until 30 June 2018, the Company typically hedged firmly committed sales in US dollar using a “first flow approach”. Under that approach, the foreign currency derivatives the Company entered into were designated as a hedge of the first US dollar inflows received AIRBUS - FINANCIAL STATEMENTS 2024 - 55
from the customer at aircraft delivery in a given month. The strategy implied that only a portion of the expected monthly customer payments made at aircraft delivery were hedged and that a reduction of monthly cash inflows as a result of postponements or order cancellations had no impact on the effectiveness of the hedge as long as the actual gross US dollar cash inflows received at aircraft delivery in a particular month exceeded the portion designated as being hedged in that month. According to the prospective application requirement of IFRS 9, the fair values of the legacy portfolio in place at inception of the new strategy continue to be assigned to the previous first flow hedge regime and remain in the hedge reserve in OCI, to be recognised in profit or loss only at maturity of the originally hedged cash flows (unless those cash flows are no longer expected to occur). As a result of prospective application, the hedging instruments designated under the new strategy had a non-zero fair value at hedge inception, which might create some small ineffectiveness. Another source of ineffectiveness is the counterparty credit risk inherent in the hedge portfolio. As such, credit risk is absent from the hedged cash flows. However, since netting arrangements are in place with all the hedge counterparties and the Company has a policy of trading with investment grade counterparties only, the credit risk arising from its hedging instruments, and associated changes in credit risk, have historically been negligible and are expected to remain so. The Company also hedges its expected foreign currency exposure arising from US dollar or pound sterling cash outflows in the commercial aircraft business on a first outflow basis, though to a much lesser extent than US dollar cash inflows. In military aircraft and non-aircraft businesses, the Company hedges inflows and outflows in foreign currencies from firmly committed or highly probable forecast sales and purchase contracts. Here, foreign currency derivatives are typically contracted in lower volumes; they may be accounted for using a first flow approach or are designated as hedges of specific agreed milestone payments. The amount of the expected flows to be hedged can cover up to 100% of the equivalent of the net US dollar exposure at inception. The coverage ratio considers the variability in the range of potential outcomes taking into account macroeconomic movements affecting spot rates and interest rates as well as the robustness of the commercial cycle. In situations where the payment dates for hedged firmly committed cash flows are not fixed and subject to potentially significant delays, the Company may use rollover strategies, usually involving foreign exchange swaps. For all foreign currency hedges of future cash flows which qualify for hedge accounting under IFRS 9, the Company uses the cash flow hedge model, which requires (i) recognising the effective portion of the fair value changes of the hedging derivatives in equity (within OCI) and (ii) recognising the effect of the hedge in profit or loss when the hedged cash flows affect profit or loss. In addition, the Company hedges currency risk arising from financial assets or liabilities denominated in currencies other than the euro, including foreign currency receivable and payable accounts, as well as foreign currency denominated funding transactions or securities. The Company applies hedge accounting if a mismatch in terms of profit or loss recognition of the hedging instrument and hedged item would otherwise occur. Frequently, however, the currency-induced gains or losses of the hedging instrument and the hedged item match in terms of profit or loss recognition (“natural hedge”), so no hedge accounting is required. Sometimes such gains or losses may end up in different sections of the income statement (such as operating profit for the hedged item and financial result for the hedging instrument). If so, the Company may choose to present the gains or losses of both the hedging instrument and the hedged item in the same income statement line item if certain formal requirements are met. As hedging instruments, the Company primarily uses foreign currency forwards, foreign currency options and to a minor extent non-derivative financial instruments. A hedge ratio of 1:1 is applied by the Company. The Company also has foreign currency derivative instruments which are embedded in certain purchase contracts denominated in a currency other than the functional currency of any substantial party to the contract, principally in US dollar and pound sterling. If such embedded derivatives are required to be accounted for separately from the host purchase contract, related gains or losses are generally recognised in other financial result. However, if the embedded derivatives qualify for hedge accounting, the Company might choose to designate them as a hedging instrument in a hedge of foreign currency risk, in which case they are accounted for under the cash flow hedge model as described above. Interest rate risk The Company uses an asset-liability management approach with the objective to limit its interest rate risk. It undertakes to match the risk profile of its interest-bearing assets with those of its interest-bearing liabilities. The remaining net interest rate exposure is managed through several types of interest rate derivatives, such as interest rate swaps and interest rate futures contracts, in order to minimise risks and financial impacts. The vast majority of related interest rate hedges qualify for hedge accounting, and most of them are accounted for under the fair value hedge model. As a result, both the fair value changes of these derivatives and the portion of the hedged items’ fair value change that is attributable to the hedged interest rate risk are recognised in profit or loss, where they offset to the extent the hedge is effective. The Company has applied the relief introduced by the amendments made to IFRS 9 in September 2019 on hedge accounting, having the effect that the IBOR reform should not cause hedge accounting to terminate. The Company invests in financial instruments such as overnight deposits, certificates of deposits, commercial papers, other money market instruments and short-term as well as medium-term bonds. For its financial instruments portfolio, the Company has an Asset Liability Management Committee in place that meets regularly and aims to limit the interest rate risk on a fair value basis through a value-at-risk approach, from which results a hedge ratio that is however not actively steered. Commodity price risk — The Company is exposed to risk relating to fluctuations in the prices of commodities used in the supply chain. It manages these risks in the procurement process and to a certain extent uses derivative instruments in order to mitigate the risks associated with the purchase of raw materials. To the extent that the gains or losses of the derivative and those of the hedged item or transaction do not match in terms of profit or loss, the Company applies cash flow hedge accounting to the derivative instruments, with a hedge ratio of 1:1. Equity price risk The Company is to a small extent invested in equity securities mainly for operational reasons. Its exposure to equity price risk is hence limited. Furthermore, it is exposed under its LTIP to the risk of the Company share price increases. The AIRBUS - FINANCIAL STATEMENTS 2024 - 56
Company limits these risks through the use of equity derivatives that qualify for hedge accounting and have been designated as hedging instruments in cash flow hedges, with a hedge ratio of 1:1. Sensitivities of market risks The approach used to measure and control market risk exposure of the Company’s financial instrument portfolio is, amongst other key indicators, the value-at-risk model (“VaR”). The VaR of a portfolio is the estimated potential loss that will not be exceeded over a specified period of time (holding period) from an adverse market movement with a specified confidence level. The VaR used by the Company is based upon a 95% confidence level and assumes a five-day holding period. The VaR model used is mainly based on the so-called “Monte-Carlo-Simulation” method. The model generates a wide range of potential future scenarios for market price movements by deriving the relevant statistical behaviour of markets for the portfolio of market data from the previous two years and observed interdependencies between different markets and prices. The Company’s VaR computation includes the Company’s financial debt, short-term and long-term investments, foreign currency forwards, swaps and options, commodity contracts, finance lease receivables and liabilities, foreign currency trade liabilities and receivables and contract assets. Although VaR is an important tool for measuring market risk, the assumptions on which the model is based give rise to some limitations, including the following: - a five-day holding period assumes that it is possible to hedge or dispose of positions within that period. This is considered to be a realistic assumption in almost all cases but may not be the case in situations in which there is severe market illiquidity for a prolonged period. - a 95% confidence level does not reflect losses that may occur beyond this level. Even within the model used there is a 5% statistical probability that losses could exceed the calculated VaR. - the use of historical data as a basis for estimating the statistical behaviour of the relevant markets and finally determining the possible range of future outcomes out of this statistical behaviour may not always cover all possible scenarios, especially those of an exceptional nature. The Company uses VaR amongst other key figures in order to determine the riskiness of its financial instrument portfolio and in order to optimise the risk-return ratio of its financial asset portfolio. Further, its investment policy defines a VaR limit for the total portfolio of cash, cash equivalents and securities. The total VaR as well as the different risk-factor specific VaR figures of this portfolio are measured and serve amongst other measures as a basis for the decisions of the Company’s Asset Liability Management Committee. A summary of the VaR position of the Company financial instruments portfolio as of 31 December 2024 and 2023 is as follows: (In € million) Total VaR Equity price VaR Currency VaR Commodity price VaR Interest rate VaR 31 December 2024 Foreign exchange hedges for forecast transactions or firm commitments 766 0 854 0 128 Financing liabilities, financial assets (including cash, cash equivalents, securities and related hedges) 233 94 121 0 142 Finance lease receivables and liabilities, foreign currency trade payables and receivables 66 0 36 0 49 Commodity contracts 6 0 1 6 0 Equity swaps 0 0 0 0 0 Diversification effect (439) (0) (199) (0) (80) All financial instruments 632 94 813 6 239 31 December 2023 Foreign exchange hedges for forecast transactions or firm commitments 801 0 911 0 165 Financing liabilities, financial assets (including cash, cash equivalents, securities and related hedges) 230 70 210 0 74 Finance lease receivables and liabilities, foreign currency trade payables and receivables 81 0 39 0 79 Commodity contracts 6 1 6 0 Equity swaps 2 2 0 0 0 Diversification effect (479) (1) (409) 0 (152) All financial instruments 641 71 752 6 166 As of 31 December 2024, the total VaR amounts to € 632 million (2023: € 641 million). The slight decrease is mainly attributable to the diminution of the Company foreign exchange hedges portfolio.. The Company uses its derivative instruments entirely for hedging purposes. As a result, the respective market risks of these hedging instruments are – depending on the hedges’ actual effectiveness – offset by corresponding opposite market risks of the underlying forecast transactions, assets or liabilities. Under IFRS 7, the underlying forecast transactions do not qualify as financial instruments and AIRBUS - FINANCIAL STATEMENTS 2024 - 57
are therefore not included in the tables shown above. Accordingly, the VaR of the foreign exchange hedging portfolio in the amount of € 854 million (2023: € 911 million) cannot be considered as a risk indicator for the Company in the economic sense. Liquidity Risk The Company’s policy is to maintain sufficient cash and cash equivalents at any time to meet its present and future commitments as they fall due. It manages its liquidity by holding adequate volumes of liquid assets and maintains a committed revolving credit facility, in addition to the cash inflow generated by its operating business. The Company continues to keep the focus on low counterparty risk within its asset portfolio. In addition, it maintains a set of other funding sources, and accordingly may raise loans from commercial banks and Development Finance Institutions and issue bonds, notes and commercial papers or enter into security lending agreements. Adverse changes in the capital markets could increase its funding costs and limit its financial flexibility. In particular, Airbus signed on 5 July 2022 a € 8 billion Sustainability Linked Revolving Syndicated Credit Facility in order to refinance its € 6 billion existing facility signed in 2020. 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. Further, the management of the vast majority of the Company’s liquidity exposure is centralised by a daily cash concentration process. This process enables it to manage its liquidity surplus as well as its liquidity requirements according to the actual needs of its subsidiaries. In addition, management monitors the Company’s liquidity reserve as well as the expected cash flows from its operations. The contractual maturities of the Company’s financial liabilities, based on undiscounted cash flows and including interest payments, if applicable, are as follows: (In € million) Carrying amount Contractual cash flows < 1 year 1 year - 2 years 2 years - 3 years 3 years - 4 years 4 years - 5 years > 5 years 31 December 2024 Non-derivative financial liabilities (28,661) (31,050) (18,225) (2,192) (1,338) (1,225) (1,169) (6,901) Derivative financial liabilities (6,181) (7,568) (2,548) (2,054) (1,691) (570) (30) (675) Total (34,842) (38,618) (20,773) (4,246) (3,029) (1,795) (1,199) (7,576) 31 December 2023 Non-derivative financial liabilities (28,593) (30,889) (18,205) (1,234) (1,855) (1,183) (1,107) (7,303) Derivative financial liabilities (4,750) (5,876) (1,963) (1,173) (886) (860) (144) (850) Total (33,343) (36,765) (20,168) (2,407) (2,741) (2,043) (1,251) (8,153) Non-derivative financial liabilities included in the table above comprise financing liabilities as presented in “– Note 37.2: Carrying Amounts and Fair Values of Financial Instruments”. Due to their specific nature, namely their risk-sharing features and uncertainty about the repayment dates, the European Governments’ refundable advances, which amount to € -3,859 million as of 31 December 2024 are not included (2023: € -3,856 million). Lease liabilities The maturity analysis of lease liabilities, based on contractual undiscounted cash flows is as follows: (In € million) 31 December 2024 2023 Not later than one year (252) (222) Later than one year and not later than five years (969) (769) Later than five years (1,226) (982) Total undiscounted lease liabilities (2,447) (1,973) Lease liabilities included in the statement of financial position (1,949) (1,617) Current (253) (221) Non-current (1,696) (1,396) Credit Risk The Company is exposed to credit risk to the extent of non-performance by either its customers (e.g. airlines) or its counterparts with regard to financial instruments or issuers of financial instruments for gross cash investments. However, it has policies in place to avoid concentrations of credit risk and to ensure that credit risk is limited. As far as central treasury activities are concerned, credit risk resulting from financial instruments is managed by the Company. In order to ensure sufficient diversification, a credit limit system is used. The Company monitors the performance of the individual financial instruments and the impact of market developments on their performance and takes appropriate action on foreseeable adverse development based on pre-defined procedures and escalation levels. Sales of products and services are made to customers after having conducted appropriate internal credit risk assessment. In order to support sales, primarily at Airbus, Airbus Helicopters and ATR, the Company may agree to participate in customer financing, on a case-by-case basis either directly or through guarantees provided to third parties. In determining the amount and terms of the financing transaction, the Company takes into account the airline’s credit rating and economic factors reflecting the relevant financial market conditions, together with appropriate assumptions as to the anticipated future value of the financed asset. AIRBUS - FINANCIAL STATEMENTS 2024 - 58
The booked amount of financial assets represents the maximum credit exposure. The credit quality of financial assets can be assessed by reference to external credit rating (if available) or internal assessment of customers’ creditworthiness e.g. airlines by way of internal risk pricing methods. For further information relating to gross credit risk and impairment see “– Note 37.7: Impairment Losses”. 37.2 Carrying Amounts and Fair Values of Financial Instruments Financial instruments — The Company’s financial assets mainly consist of cash, short to medium-term deposits and securities. Its financial liabilities include trade liabilities, obligations towards financial institutions, issued bonds and refundable advances from European Governments. All purchases and sales of financial assets are recognised on the settlement date according to market conventions. Financial assets at amortised cost — This category comprises assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. It includes trade receivables. Financial assets at fair value through OCI — This category comprises: (i) equity investments that are not held for trading. With the exception of dividends received, the associated gains and losses (including any related foreign exchange component) are recognised in OCI. Amounts presented in OCI are not subsequently transferred to profit or loss on derecognition of the equity investment nor in the event of an impairment; (ii) debt instruments where contractual cash flows are solely payments of principal and interest, and that are held both for sales and collecting contractual cash flows. Changes in their fair value other than impairment losses and foreign exchange gains and losses on monetary items are recognised directly within AOCI. Upon disposal of such financial assets, the cumulative gain or loss previously recognised in equity is recorded as part of other income (other expenses) from investments in the Consolidated Income Statement for the period. Interest earned on the investment are presented as interest income in the Consolidated Income Statement using the effective interest method. Dividends earned on investment were recognised as other income (other expenses) from investments in the Consolidated Income Statement when the right to the payment had been established. Financial assets at fair value through profit or loss — This category comprises all other financial assets (e.g. derivative instruments) that are to be measured at fair value (including equity investments for which the Company did not elect to present changes in fair value in OCI). The Company assigns its financial instruments into classes based on their balance sheet category. The following table presents the carrying amounts and fair values of financial instruments by class and by IFRS 9 measurement category as of 31 December 2024: Fair value through profit or loss Fair value through OCI Financial assets and liabilities at amortised cost Financial instruments total (In € million) Amortised cost Fair value Book value Fair value Assets Other investments and other long-term financial assets Equity investments (1) 1,800 1,088 0 0 2,888 2,888 Customer financing 132 0 0 0 132 132 Other loans (2) 0 0 2,955 2,955 2,955 2,955 Trade receivables 0 0 5,293 5,293 5,293 5,293 Contract assets 0 0 1,534 1,534 1,534 1,534 Other financial assets Derivative instruments 1,065 0 0 0 1,065 1,065 Non-derivative instruments 0 0 1,636 1,636 1,636 1,636 Securities 0 11,861 0 0 11,861 11,861 Cash and cash equivalents 10,042 742 4,219 4,219 15,003 15,003 Total 13,039 13,690 15,637 15,637 42,367 42,367 Liabilities Financing liabilities Bonds and commercial papers 0 0 (8,542) (8,823) (8,542) (8,823) Liabilities to financial institutions and others 0 0 (3,788) (3,788) (3,788) (3,789) Finance lease liabilities (2) 0 0 (1,949) (1,949) (1,949) (1,949) Other financial liabilities Derivative instruments (6,181) 0 0 0 (6,181) (6,181) European Governments' refundable advances (3) 0 0 (3,859) (3,859) (3,859) (3,859) Others 0 (18) (567) (567) (585) (585) Trade liabilities 0 0 (13,791) (13,791) (13,791) (13,791) Total (6,181) (18) (32,496) (32,777) (38,695) (38,976) AIRBUS - FINANCIAL STATEMENTS 2024 - 59
(1) Other than those accounted for under the equity method. (2) The carrying amounts are used as reasonable fair value approximations. (3) The European Governments’ refundable advances of € -3,859 million are measured at amortised cost. Fair values cannot be reliably measured because their risk sharing nature and the uncertainty of the repayment dates give rise to a broad range of reasonable fair value estimates and make it impossible to reasonably assess the probabilities of the various estimates within the range. This may change and reliable fair value measures become available as the related programmes approach the end of production. The following table presents the carrying amounts and fair values of financial instruments by class and by IFRS 9 measurement category as of 31 December 2023: Fair value through profit or loss Fair value through OCI Financial assets and liabilities at amortised cost Financial instruments total (In € million) Amortised cost Fair value Book value Fair value Assets Other investments and other long-term financial assets Equity investments (1) 1,627 1,171 0 0 2,798 2,798 Customer financing 116 0 0 0 116 116 Other loans (2) 0 0 2,601 2,601 2,601 2,601 Trade receivables 0 0 4,725 4,725 4,725 4,725 Contract assets 0 0 1,849 1,849 1,849 1,849 Other financial assets Derivative instruments 1,227 0 0 0 1,227 1,227 Non-derivative instruments 0 0 1,546 1,546 1,546 1,546 Securities 0 8,809 0 0 8,809 8,809 Cash and cash equivalents 12,409 1,010 3,050 3,050 16,469 16,469 Total 15,379 10,990 13,771 13,771 40,140 40,140 Liabilities Financing liabilities Bonds and commercial papers 0 0 (9,067) (9,470) (9,067) (9,470) Liabilities to financial institutions and others 0 0 (2,907) (2,907) (2,907) (2,907) Finance lease liabilities (2) 0 0 (1,617) (1,617) (1,617) (1,617) Other financial liabilities Derivative instruments (4,750) 0 0 0 (4,750) (4,750) European Governments' refundable advances (3) 0 0 (3,856) (3,856) (3,856) (3,856) Others 0 (86) (592) (592) (678) (678) Trade liabilities 0 0 (14,323) (14,323) (14,323) (14,323) Total (4,750) (86) (32,362) (32,765) (37,198) (37,601) (1) Other than those accounted for under the equity method. (2) The carrying amounts are used as reasonable fair value approximations. (3) The European Governments’ refundable advances of € -3,856 million are measured at amortised cost. Fair values cannot be reliably measured because their risk sharing nature and the uncertainty of the repayment dates give rise to a broad range of reasonable fair value estimates and make it impossible to reasonably assess the probabilities of the various estimates within the range. This may change and reliable fair value measures become available as the related programmes approach the end of production. Fair Value Hierarchy Fair value of financial instruments The fair value of quoted investments is based on current market prices. If the market for financial assets is not active, or in the case of unlisted financial instruments, the Company determines fair values by using generally accepted valuation techniques on the basis of market information available at the end of the reporting period. Derivative instruments are generally managed on the basis of the Company’s net exposure to the credit risk of each particular counterparty and fair value information is provided to the Company’s key management personnel on that basis. For these derivative instruments, the fair value is measured based on the price that would be received to sell a net long position, or transfer a net short position, for a particular credit risk exposure as further described below. Depending on the extent the inputs used to measure fair values rely on observable market data, fair value measurements may be hierarchised according to the following levels of input: - Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities; - Level 2: inputs other than quoted prices that are observable for the asset or liability – fair values measured based on Level 2 input typically rely on observable market data such as interest rates, foreign exchange rates, credit spreads or volatilities; - Level 3: inputs for the asset or liability that are not based on observable market data – fair values measured based on Level 3 input rely to a significant extent on estimates derived from the Company’s own data and may require the use of assumptions that are inherently judgemental and involve various limitations. AIRBUS - FINANCIAL STATEMENTS 2024 - 60
The fair values disclosed for financial instruments accounted for at amortised cost reflect Level 2 input. Otherwise, the Company determines mostly fair values based on Level 1 and Level 2 inputs and to a lesser extent on Level 3 input. The following table presents the carrying amounts of the financial instruments held for the three levels of the fair value hierarchy as of 31 December 2024 and 2023, respectively: 2024 2023 (In € million) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets measured at fair value Equity Investments 2,146 0 742 2,888 2,084 0 714 2,798 Derivative instruments 0 1,065 0 1,065 0 1,227 0 1,227 Securities 11,861 0 0 11,861 8,809 0 0 8,809 Customer financing 0 0 131 131 0 0 116 116 Cash equivalents 10,042 742 0 10,784 12,409 1,010 0 13,419 Total 24,049 1,807 873 26,729 23,302 2,237 830 26,369 Financial liabilities measured at fair value Derivative instruments 0 (6,181) 0 (6,181) 0 (4,750) 0 (4,750) Other financial liabilities 0 0 (18) (18) 0 0 (86) (86) Total 0 (6,181) (18) (6,199) 0 (4,750) (86) (4,836) The development of financial instruments of Level 3 is as follows: (In € million) Derivatives Participations Customer financing Total Written put options on NCI interests Commodity swap agreements Total Balance at 1 January 2023 0 744 86 830 (83) (84) (167) Business combination 0 0 0 0 0 0 0 Profit or loss 0 0 30 30 0 84 84 Equity 0 (31) 0 (31) (3) 0 (3) Settlements 0 0 0 0 0 0 0 Release 0 0 0 0 0 0 0 Balance at 31 December 2023 0 714 116 830 (86) 0 (86) Business combination 0 0 0 0 0 0 0 Profit or loss 0 0 15 15 0 0 0 Equity 0 28 0 28 68 0 68 Settlements 0 0 0 0 0 0 0 Others 0 0 0 0 0 0 0 Balance at 31 December 2024 0 742 131 873 (18) 0 (18) As of 31 December 2024, the fair value of the written put options on non-controlling interests (“NCI puts”) relating to ACLP amounts to € 18 million (2023: € 86 million). The fair value of these NCI puts is derived from a discounted cash flow analysis using the latest operating plan and a projection over the lifetime of the A220 programme. In addition, a post-tax WACC of 8.81% is used to discount the forecasted cash flows, taking into account the specificities of the programme (2023: 9.30%). Financial Assets Designated at Fair Value through Profit or Loss As of 31 December 2024, the financial assets held and designated at fair value through profit or loss are money market funds (accumulating). As of 31 December 2024, nominal amount at initial recognition was € 10,042 million (2023: € 12,410 million). Fair Value Measurement Method The Company uses the following methods to measure fair values: Equity instruments — The fair values of listed equity instruments reflect quoted market prices. For non-listed equity investments for which quoted market prices are not available, the Company determines the fair values using valuation methods such as net asset values, discounted cash flow method or a comparable valuation technique. Customer financing assets and other loans — The carrying amounts reflected in the annual accounts are used as a proxy for fair value. Contract assets, trade receivables and other receivables — The carrying amounts reflected in the annual accounts are used as reasonable estimates of fair value because of the relatively short period between the receivables’ origination and their maturity. Securities — The fair values of securities reflect their quoted market price at the end of the reporting period. AIRBUS - FINANCIAL STATEMENTS 2024 - 61
Cash and cash equivalents — include cash in hand, cash in banks, checks, fixed deposits as well as commercial papers and money market funds. The carrying amounts reflected in the annual accounts are used as reasonable estimates of fair value because of the relatively short period between the origination of the instrument and its maturity or due date. The fair value of commercial papers is determined based on Level 2 input by discounting future cash flows using appropriate interest rates. The fair values of money market funds are determined by reference to their quoted market price. Derivatives — The fair values of derivative instruments reflect quoted market prices, where available, but in most cases are determined using recognised valuation techniques such as option-pricing models (e.g. Black & Scholes model) and discounted cash flow models. The valuation is based on observable market data such as currency rates, currency forward rates, interest rates and yield curves, commodity forward prices as well as price and rate volatilities obtained from recognised vendors of market data. Furthermore, to the extent that these instruments are subject to master netting arrangements and similar agreements and managed on the basis of net credit exposure, their fair values reflect credit and debit value adjustments based on the net long or net short position that the Company has with each counterparty. Except for certain short-term commodity contracts and derivatives presented in the Level 3 section above, derivative fair values are measured based on Level 2 input. Financing liabilities — The fair values disclosed for financing liabilities, other than those of issued bonds and commercial papers, are determined based on Level 2 input by discounting scheduled or expected cash flows using appropriate market interest rates. The fair values disclosed for the issued EMTN and US dollar bonds reflect public price quotations that qualify as Level 1 input. For issued commercial papers, the carrying amounts reflected in the annual accounts are used as reasonable estimates of fair value because of the relatively short period between the origination of these instruments and their maturity. Trade liabilities and current other financial liabilities — For the same reason as trade receivables, carrying amounts are used as reasonable fair value approximations for trade liabilities and current other financial liabilities. The following interest rate curves are used in the determination of the fair value in respect of the derivative financial instruments as of 31 December 2024 and 2023: 31 December 2024 2023 2024 2023 2024 2023 (Rate in %) US$ £ 6 months 2.36 3.65 4.25 5.15 4.57 5.14 1 year 2.07 3.12 4.10 4.78 4.42 4.67 5 years 2.03 2.01 3.92 3.55 3.92 3.20 10 years 2.17 2.04 3.97 3.47 3.92 3.10 37.3 Potential Effect of Set-Off Rights on Recognised Financial Assets and Liabilities The Company reports all its financial assets and financial liabilities on a gross basis. With each derivative counterparty there are master netting agreements in place providing for the immediate close-out of all outstanding derivative transactions and payment of the net termination amount in the event a party to the agreement defaults or another defined termination event occurs. Furthermore, securities lending transactions are accounted for as collateralised borrowings. As a result, the securities pledged as collateral continue to be recognised on the balance sheet and the amount of cash received at the outset of the transaction is separately recognised as a financial liability. The following tables set out, on a counterparty specific basis, the potential effect of master netting agreements and collateralised borrowings on the Company’s Financial Position, separately for financial assets and financial liabilities that were subject to such agreements as of 31 December 2024 and 2023, respectively: Gross amounts recognised Gross amounts recognised set off in the Financial Statements Net amounts presented in the Financial Statements Related amounts not set off in Statement of Financial Position Net amount (In € million) Financial instruments Cash collateral received 31 December 2024 Financial asset 1,061 0 1,061 (1,061) 0 0 Financial liabilities 6,057 0 6,057 (1,061) 0 4,996 31 December 2023 Financial asset 1,180 0 1,180 (1,170) 0 10 Financial liabilities 4,710 0 4,710 (1,170) 0 3,540 AIRBUS - FINANCIAL STATEMENTS 2024 - 62
37.4 Notional Amounts of Derivative Financial Instruments The contract or notional amounts of derivative financial instruments shown below do not necessarily represent amounts exchanged by the parties and, thus, are not necessarily a measure for the exposure of the Company through its use of derivatives. The notional amounts of foreign exchange derivative financial instruments are as follows, specified by year of expected maturity: Remaining period (In € million) 1 year 2 years 3 years 4 years 5 years > 5 years Total 31 December 2024 Net forward and swap contracts 18,133 14,863 10,014 8,567 (235) (133) 51,209 31 December 2023 Net forward sales contracts 17,470 13,559 11,002 8,122 4,885 (22) 55,016 The following table sets out the notional amount of foreign exchange hedges in place as of 31 December 2024 relating to the commercial activities of Airbus, and the average euro converted rates applicable to corresponding EBIT. (In $ million) 2025 2026 2027 2028 2029+ Total Total hedges 20,566 17,599 11,715 9,883 186 59,949 Forward rates €/US$ 1.19 1.21 1.26 1.24 1.15 1.22 In 2024 new hedge contracts of US$ 14.2 billion (2023: US$ 12.2 billion) were added at an average rate of 1.11 US$/€ (2023: 1.11 US$/€). As of 31 December 2024, the total hedge portfolio with maturities up to 2029 amounts to US$ 59.9 billion (2023: US$ 67.1 billion) and covers a significant portion of the foreign exchange exposure expected over the hedging horizon. The average US$/€ hedge rate of the US$/€ hedge portfolio until 2029 amounts to 1.22 US$/€ (2023: 1.24 US$/€). (In £ million) 2025 2026 2027 2028 2029+ Total Total hedges 1,149 1,034 874 685 413 4,155 Forward rates €/£ 0.88 0.90 0.90 0.91 0.92 0.90 Since 2021, €/£ hedges were implemented in order to cover the GBP exposure of the Company. The notional amounts of interest rate contracts are as follows: Remaining period (In € million) 1 year 2 years 3 years 4 years 5 years 6 years 7 years > 7 years Total 31 December 2024 Interest rate contracts 561 1,355 1,444 611 500 1,250 900 2,722 9,343 31 December 2023 Interest rate contracts 823 561 1,355 1,357 611 500 1,250 3,579 10,036 Please also refer to “– Note 36.3: Financing Liabilities”. The notional amounts of commodity contracts are as follows: Remaining period (In € million) 1 year 2 years 3 years 4 years > 4 years Total 31 December 2024 123 76 38 0 0 237 31 December 2023 122 74 31 0 0 228 The notional amounts of equity swaps are as follows: Remaining period (In € million) 1 year 2 years 3 years 4 years > 4 years Total 31 December 2024 34 0 0 0 0 34 31 December 2023 41 34 0 0 0 75 AIRBUS - FINANCIAL STATEMENTS 2024 - 63
37.5 Derivative Financial Instruments and Hedge Accounting Disclosure The following table presents the reconciliation of AOCI, net of tax, resulting from cash flow hedge accounting as of 31 December 2024 and 31 December 2023: 31 December 2024 2023 (In € million) Hedge reserve Opening balance 3,298 5,688 Foreign exchange contracts 3,620 (1,374) Others 18 (7) Changes in fair values 3,638 (1,381) Foreign exchange contracts (1,970) (2,072) Others (8) (4) Amount reclassified to profit or loss (matured hedges) (1,978) (2,076) Foreign exchange contracts 65 165 Others 0 0 Amount classified to profit or loss (inefficiency) 65 165 Tax impact (470) 902 Closing balance 4,553 3,298 The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for cash-flow hedges as of 31 December 2024: Carrying values OCI (In € million) Asset Liability Changes in values of the hedging instrument Other changes in value of the hedge reserve Hedge inefficiency recorded in financial result Amounts reclassified from hedge reserve to profit or loss Foreign currency risk Net forward sales contracts 928 (5,109) 3,323 297 65 (1,970) Foreign exchange options 0 0 0 0 0 0 Embedded Derivatives 0 (42) 19 0 0 (8) Interest rate risk 0 0 0 0 0 0 Commodity swap risk 6 (4) (1) 0 0 0 Equity swap risk 9 0 0 0 0 0 Total 943 (5,155) 3,341 297 65 (1,978) The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for cash-flow hedges as of 31 December 2023: Carrying values OCI (In € million) Asset Liability Changes in values of the hedging instrument Other changes in value of the hedge reserve Hedge inefficiency recorded in financial result Amounts reclassified from hedge reserve to profit or loss Foreign currency risk Net forward sales contracts 986 (3,529) (2,369) 995 165 (2,072) Foreign exchange options 0 0 0 0 0 0 Embedded Derivatives 0 (37) (12) 0 0 (4) Interest rate risk 0 0 0 0 0 0 Commodity swap risk 1 0 5 0 0 0 Equity swap risk 10 1 0 0 0 0 Total 997 (3,565) (2,376) 995 165 (2,076) AIRBUS - FINANCIAL STATEMENTS 2024 - 64
37.6 Net Gains or Net Losses The Company’s net gains or net losses recognised in profit or loss in 2024 and 2023, respectively, are as follows: (In € million) 2024 2023 Financial assets or financial liabilities at fair value through profit or loss Held for trading 94 182 Designated on initial recognition 235 (110) Financial assets at amortised cost 427 (63) Financial assets at fair value through OCI (previously available-for-sale) 172 (66) Financial liabilities measured at amortised cost (695) 263 Net gains of € +28 million (2023: € +350 million) are recognised directly in equity relating to financial assets at fair value. Interest income from financial assets or financial liabilities through profit or loss is included in net gains or losses. 37.7 Impairment Losses Loss allowances — For its portfolio of debt instruments including bonds, term deposits and commercial papers, the Company measures loss allowances at an amount that represents credit losses resulting from default events that are possible within the next 12 months, unless the credit risk on a financial instrument has increased significantly since initial recognition. In the event of such significant increase in credit risk the Company measures loss allowances for that financial instrument at an amount equal to its life-time expected losses, i.e. at an amount equal to the expected credit losses that result from all possible default events over the expected life of that financial instrument. The Company applies the low credit risk exemption allowing the Company to assume that there is no significant increase in credit risk since initial recognition of a financial instrument, if the instrument is determined to have low credit risk at the reporting date. Similarly, the Company has determined that its trade receivables and contract assets generally have low credit risk. The Company applies the simplified approach permitted by IFRS 9 of measuring expected credit losses of trade receivables and contract assets on a lifetime basis from initial recognition. Investment grade instruments — The Company considers a significant increase in credit risk to have occurred, if there is a downgrade by four notches such that the instrument moves into a high yield bucket as a direct result of the downgrade. With respect to instruments that were high yield at initial recognition, a downgrade by four notches is considered as a significant increase in credit risk. Stage 1 Stage 2 Stage 3 (In € million) 12-month ECL Life-time ECL Credit impaired ECL Total At 1 January 2024 8 23 50 81 Change in financial assets 1 0 (21) (20) Change in risk parameters 8 (12) 20 16 At 31 December 2024 17 11 50 78 Stage 1 Stage 2 Stage 3 (In € million) 12-month ECL Life-time ECL Credit impaired ECL Total At 1 January 2023 17 8 27 52 Change in financial assets (1) 10 27 36 Change in risk parameters (8) 5 (4) (77) At 31 December 2023 8 23 50 81 The following table breaks down the gross carrying amount of loans and receivables as of 31 December 2024 and 2023, separately showing those that are impaired, renegotiated or past due: (In € million) Not past due Renegotiated/ not past due/ not impaired Gross impaired Past due ≤ 3 months Past due > 3 and ≤ 6 months Past due > 6 and ≤ 9 months Past due > 9 and ≤ 12 months Past due > 12 months Impairment Total 31 December 2024 Trade receivables 3,946 0 262 584 145 148 48 367 (356) 5,144 Contract assets 1,536 0 0 0 0 0 0 0 (1) 1,535 Others 3,300 2 142 346 113 23 52 744 (138) 4,584 Total 8,782 2 404 930 258 171 100 1,111 (495) 11,263 AIRBUS - FINANCIAL STATEMENTS 2024 - 65
(In € million) Not past due Renegotiated/ not past due/ not impaired Gross impaired Past due ≤ 3 months Past due > 3 and ≤ 6 months Past due > 6 and ≤ 9 months Past due > 9 and ≤ 12 months Past due > 12 months Impairment Total 31 December 2023 Trade receivables 3,620 0 249 410 127 101 125 452 (359) 4,725 Contract assets 1,850 0 0 0 0 0 0 0 (1) 1,849 Others 2,934 1 147 337 134 32 50 700 (191) 4,144 Total 8,404 1 396 747 260 134 175 1,152 (551) 10,717 The management believes that the unimpaired amounts that are past due are still collectible in full, based on historic payment behaviour and analysis of customer credit risk, including underlying customers’ credit ratings if they are available. The following impairment losses on financial assets are recognised in profit or loss in 2024 and 2023, respectively: (In € million) 2024 2023 Trade receivables (20) (19) Contract assets 0 0 Total (20) (19) 2.8 Other Notes 38. Litigation and Claims Litigation and claims — Various legal actions, governmental investigations, proceedings and other claims are pending or may be instituted or asserted in the future against the Company. Litigation is subject to many uncertainties, and the outcome of individual matters is not predictable with certainty. Provisions have been accounted for in accordance with IFRS criteria. It is reasonably possible that the final resolution of some of these matters may require the Company to make expenditures, in excess of established provisions over an extended period of time and in a range of amounts that cannot be reasonably estimated. The term “reasonably possible” is used herein to mean that the chance of a future transaction or event occurring is more than remote but less than likely. 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, there are no 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. 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. Securities Litigation In August 2021 the Company received notification of two separate claims, and in March 2022 of a third claim, each filed in the Netherlands purportedly on behalf of Airbus investors. These claims (the “Dutch claims”) were made in relation to the previously reported criminal investigations that led to the Company’s agreements with the French Parquet National Financier (“PNF”), the UK Serious Fraud Office (“SFO”), the US Department of Justice (“DoJ”) and the US Department of State (“DoS”), which were approved on 31 January 2020. The Dutch claims assert that the Company violated its reporting obligations, allegedly leading to an impact on the Company’s share price, by failing to adequately inform investors and providing false or misleading information about the criminal investigations, the Company’s use of intermediaries and alleged corrupt practices, and its related financial exposure, internal investigations and subsequent measures taken by the Company. The first Dutch claim was filed with the Amsterdam District Court 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. 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. The third Dutch claim was a class action filed in April 2022 against the Company by a foundation incorporated under the laws of the Netherlands. In accordance with Dutch procedural law, the two Dutch class action claims were treated jointly as one case. The Dutch claims followed the filing in 2020 of a putative class action lawsuit in US federal court in the state of New Jersey, against Airbus SE and members of its current and former management. The US complaint asserted violations of US securities laws, alleging 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 AIRBUS - FINANCIAL STATEMENTS 2024 - 66
third party business partners and anti-corruption compliance. The matter was fully and finally settled on 30 September 2022 in exchange for a payment in the amount of US$ 5 million without any acknowledgement of liability. In August 2023 the first Dutch claim was dismissed on the merits, with the plaintiff appealing this dismissal in November 2023. The second and third Dutch claims were dismissed on procedural grounds in September 2023, which plaintiffs appealed in December of that year. The first and third Dutch claims were finally and fully settled on 30 November 2024 for a non-material amount, without any acknowledgment of liability. The calendar for appeal proceedings for the second Dutch claim extends at least to the end of 2025, and could take longer. 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 in the last remaining proceeding. 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 as 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 criminal legal elements of the case. However, the Paris Court of Appeal overturned the magistrates' decision and ordered a trial for involuntary manslaughter. The Company’s appeal to the French Supreme Court was dismissed. Following a trial in the fourth quarter of 2022, the Paris Criminal Court announced in April 2023 that all criminal charges against the Company were dismissed, but sustained certain civil liability claims. The Paris General Prosecutor filed an appeal of the dismissal of criminal charges against Airbus and Air France. As a consequence, there will be a full retrial of the matter before the Paris Court of Appeal, which is scheduled to commence in September 2025. Norway NH90 In a notice of termination dated 9 June 2022, the Norwegian Defence Materiel Agency (“NDMA”) notified NHIndustries SAS ("NHI") of the Norwegian Ministry of Defence's decision to terminate its contract for the supply of 14 NH90 helicopters. In a press release dated 10 June 2022, NHI noted it "is extremely disappointed by the decision taken by the Norwegian Ministry of Defence and refutes the allegations being made against the NH90 as well as against [NHI]." NHI considers the termination to be legally groundless and reserves its right to take any necessary legal action to challenge it. The parties initiated a mediation process during the second quarter of 2023, which concluded during the second quarter of 2024 without an agreement being reached. During the second quarter of 2024 the parties each filed their respective claims before the Oslo City Court, with the NDMA having requested a court-led mediation process. This court-led mediation process is currently scheduled to commence during the first quarter of 2025, with proceedings before the Oslo City Court otherwise to commence during the fourth quarter of 2025. HMRC Export Control Investigation Airbus is fully cooperating with an investigation by the Revenue and Customs Authority of the United Kingdom into possible violations of the United Kingdom's export control rules. It is not expected that the resolution of this matter will have a material financial impact. 39. Auditor Fees With reference to Section 2:382a (1) and (2) of the Netherlands Civil Code, the following fees for the financial year 2024 and 2023 have been charged by EY to the Company, its subsidiaries and other consolidated entities: (In € thousand) 2024 2023 Audit of the Financial Statements 13,385 12,656 Other audit engagements (including CSRD fees) 1,589 798 Tax services 266 233 Other non-audit services 4,498 3,691 Total 19,738 17,378 Other audit firms have audit fees related to audit process, certification and examination of individual and consolidated accounts of € 9 million in 2024 (2023: € 8 million). AIRBUS - FINANCIAL STATEMENTS 2024 - 67
40. Events after the Reporting Date The Company has announced plans to adapt the Airbus Defence and Space organisation and workforce in light of a continued complex business environment, both externally and internally, especially in the Space Systems segment where significant financial charges were recorded in 2023 and 2024. Intended measures will include creating a more effective and efficient organisational structure, especially with regard to headquartered functions, as well as a full operative end-to-end accountability for its business lines Air Power, Space Systems and Connected Intelligence. It is expected that these measures will result in a reduction of up to 2,043 positions within Airbus Defence and Space until mid-2026. Compulsory actions are not planned, the information and consultation process with social partners has begun, details of this adaptation plan need to be finalised with a view to reaching agreements for implementation starting in the first half year 2025. The associated costs of defined measures for the Company, to be recognised as a provision when conditions will be fulfilled, are expected to amount around € 0.2 billion. No provision has been recognised in respect of these adaptation plans as no constructive obligation had risen as of 31 December 2024. 2.9 Appendix “Simplified Airbus Structure” AIRBUS - FINANCIAL STATEMENTS 2024 - 68
For further information, please refer to the Company's website.
AIRBUS - FINANCIAL STATEMENTS 2024 - 69
IFRS Company Financial Statements l l AIRBUS FINANCIAL STATEMENTS - 1 2024 2024
3 Airbus SE IFRS Company Financial Statements IFRS Company Income Statement for the years ended 31 December and (In € million) Note 2024 2023 Operating income 258 65 Operating expenses (73) (79) Dividend received 4,290 7,474 Gain (Loss) on disposals of investments 7, 10 3 3 Impairment of investments 7, 10 0 (19) Total operating result 7 4,478 7,444 Interest income 1,176 1,015 Interest expense (1,667) (1,744) Other financial result 146 167 Total financial result 8 (345) (562) Profit (Loss) before income taxes 4,133 6,882 Income taxes 9 (80) 2 Profit (Loss) for the period 4,053 6,884 IFRS Company Statement of Comprehensive Income for the years ended 31 December and (In € million) 2024 2023 Profit (Loss) for the period 4,053 6,884 Other comprehensive income Items that may be reclassified to profit or loss: Change in fair value of financial assets 153 280 Other comprehensive income, net of tax 153 280 Total comprehensive income of the period 4,206 7,164 AIRBUS - FINANCIAL STATEMENTS - 2 2024 2023 2024 2023 2024
IFRS Company Statement of Financial Position for the years ended 31 December and (In € million) Note 2024 2023 Assets Non-current assets Investments in subsidiaries and associates 10 21,403 20,145 Long-term financial assets 11 4,525 4,497 Non-current other financial assets 11 3,085 2,280 Non-current other assets 13 18 Deferred tax assets 9 0 0 Non-current securities 15 8,354 6,986 Total non-current assets 37,380 33,926 Current assets Trade receivables 20 12 Short-term financial assets 11 43 73 Current other financial assets 11 2,551 2,029 Current accounts Airbus companies 11 6,544 4,663 Current other assets 257 167 Current securities 15 2,710 1,162 Cash and cash equivalents 15 12,290 14,618 Total current assets 24,415 22,724 Total assets 61,795 56,650 Equity and liabilities Stockholders' equity 14 Capital stock 793 791 Share premium 4,003 3,983 Retained earnings 7,778 2,798 Legal reserves (201) (354) Treasury shares (590) (390) Result of the year 4,053 6,884 Total equity 15,836 13,712 Non-current liabilities Long-term financing liabilities 15 7,482 7,719 Non-current financial liabilities 11 3,917 3,243 Total non-current liabilities 11,399 10,962 Current liabilities Short-term financing liabilities 15 558 818 Current accounts Airbus companies 11 31,216 28,938 Current financial liabilities 11 2,556 2,049 Current tax liabilities 9 80 0 Current other liabilities 150 171 Total current liabilities 34,560 31,976 Total equity and liabilities 61,795 56,650 AIRBUS - FINANCIAL STATEMENTS - 3 2024 2023 2024
IFRS Company Statement of Cash Flows for the years ended 31 December and (In € million) Note 2024 2023 Operating Activities Profit (Loss) for the period (Net income) 7 4,053 6,884 Adjustments to reconcile profit for the period to cash provided by operating activities: Interest income (1,176) (1,015) Interest expense 1,667 1,744 Interest received 1,092 974 Interest paid (1,689) (1,701) Tax expense (income) 9 80 (3) Impairment of Investments 10 0 19 Valuation adjustments (128) (132) Dividends income 7 (4,290) (7,474) Change in current and non-current provisions 1 (5) Change in other operating assets and liabilities (51) (10) Trade receivables (7) 15 Trade liabilities (5) (6) Other assets and liabilities and others (39) (19) Cash provided by (used for) operating activities (441) (718) Investing activities Acquisitions of subsidiaries, joint ventures, businesses and participations (net of cash) 10 (770) (765) Proceeds from subsidiaries, joint ventures, businesses and participations (net of cash) 10 3 1,206 Dividends received 7 4,290 7,474 Payments for long-term financial assets 11 (1,282) (2,957) Proceeds from long-term financial assets 11 1,390 422 Payments for investments in securities 15 (4,091) (2,316) Proceeds from disposals of securities 15 1,515 1,749 Cash provided by (used for) investing activities 1,054 4,813 Financing activities Increase in financing liabilities 15 100 213 Repayment of financing liabilities 15 (848) 0 Change in current accounts Airbus companies (1) 11 (132) (1,206) Cash distribution to Airbus SE shareholders 14 (2,215) (1,421) Changes in capital 14 97 161 Change in treasury shares 14 (276) (334) Cash provided by (used for) financing activities (3,274) (2,587) Effect of foreign exchange rate changes on cash and cash equivalents 333 (173) Net increase in cash and cash equivalents (2,328) 1,335 Cash and cash equivalents at beginning of period 14,618 13,283 Cash and cash equivalents at end of period 15 12,290 14,618 (1) Airbus SE maintains current accounts with group entities. Total assets and total liabilities in this regard are presented in the balance sheet. The changes in these current accounts are presented in net in the Company statement of Cash Flows as reflecting the changes in net cash-pool position for the company. AIRBUS - FINANCIAL STATEMENTS - 4 2024 2023 2024
IFRS Company Statement of Changes in Equity for the years ended 31 December and Legal reserves (1) Accumulated other comprehensive income (In € million) Note Capital stock Share premium Retained earnings Financial assets at fair Value Cash flow hedges Treasury shares Total equity Balance at 1 January 2023 789 3,837 4,051 (634) 0 (68) 7,975 Profit (Loss) for the period 0 0 6,884 0 0 0 6,884 Other comprehensive income 0 0 0 280 0 0 280 Total comprehensive income of the period 0 0 6,884 280 0 0 7,164 Capital increase 2 146 0 0 0 0 148 Share-based payment (IFRS 2) 0 0 168 0 0 0 168 Cash distribution to Airbus SE shareholders 0 0 (1,421) 0 0 0 (1,421) Change in treasury shares 0 0 0 0 0 (322) (322) Balance at 31 December 2023 791 3,983 9,682 (354) 0 (390) 13,712 Profit (Loss) for the period 0 0 4,053 0 0 0 4,053 Other comprehensive income 0 0 0 153 0 0 153 Total comprehensive income of the period 0 0 4,053 153 0 0 4,206 Capital increase 14 2 20 0 0 0 0 22 Share-based payment (IFRS 2) 0 0 311 0 0 0 311 Cash distribution to Airbus SE shareholders 14 0 0 (2,215) 0 0 0 (2,215) Change in treasury shares 14 0 0 0 0 0 (200) (200) Balance at 31 December 2024 793 4,003 11,831 (201) 0 (590) 15,836 (1) The distribution of Legal Reserves, when positive, is restricted by Dutch law AIRBUS - FINANCIAL STATEMENTS - 5 2024 2023 2024
Notes to the IFRS Company Financial Statements l l Contents 4.1 Basis of Preparation 7 1. The Company 7 2. Geopolitical and Macroeconomic Environment 7 3. Climate impacts 7 4. Material Accounting Policies 7 5. Key Estimates and Judgements 8 6. Related Party Transactions 9 4.2 Company Performance 10 7. Total Operating Result 10 8. Total Financial Result 10 9. Income Taxes 11 4.3 Operational Assets and Liabilities 13 10. Investments in Subsidiaries, Associates and Participations 13 11. Financial Assets and Financial Liabilities 14 12. Commitments and Contingencies 15 4.4 Employees 16 13. Number of Employees 16 4.5 Capital Structure and Financial Instruments 16 14. Total Equity 16 15. Cash, Securities and Financing Liabilities 18 15.1 Net Cash 18 15.2 Cash and Cash Equivalents 18 15.3 Securities 19 15.4 Financing Liabilities 20 16. Information about Financial Instruments 21 16.1 Financial Risk Management 21 16.2 Carrying Amounts and Fair Values of Financial Instruments 23 16.3 Potential Effect of Set-Off Rights on Recognised Financial Assets and Liabilities 26 16.4 Notional Amounts of Derivative Financial Instruments 26 16.5 Derivative Financial Instruments and Hedge Accounting Disclosure 27 16.6 Net Gains or Net Losses 27 16.7 Impairment Losses 27 4.6 Other Notes 29 17. Auditor Fees 29 18. Events after the Reporting Date 29 AIRBUS - FINANCIAL STATEMENTS - 6 2024 2024
Notes to the IFRS Company Financial Statements 4.1 Basis of Preparation 1. The Company The Company’s principal activity is acting as a holding and management company for the subsidiaries of Airbus SE, the “Company”, a European public limited-liability company (Societas Europaea) with its seat (statutaire zetel) in Amsterdam, The Netherlands, its registered address at Mendelweg 30, 2333 CS Leiden, The Netherlands, and registered with the Dutch Commercial Register (Handelsregister) under number 24288945. The Company is listed on the European stock exchanges in Paris, Frankfurt am Main, Madrid, Barcelona, Valencia and Bilbao. The IFRS Company Financial Statements were authorised for issue by the Company’s Board of Directors on 19 February 2025. 2. Geopolitical and Macroeconomic Environment Regarding the impact of changes in the macroeconomic environment, please refer to “- Note 2: Geopolitical and Macroeconomic Environment ” of the Consolidated Financial Statements. 3. Climate impacts Regarding the Climate impacts please refer to “- Note 3: Climate impacts” of the Consolidated Financial Statements. 4. Material Accounting Policies Basis of preparation — The Company’s Financial Statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), issued by the International Accounting Standards Board (“IASB”) as endorsed by the European Union (“EU”) and with Part 9 of Book 2 of the Netherlands Civil Code. They are prepared and reported in euro (“€”) and all values are rounded to the nearest million appropriately. Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. In the Company Financial Statements of Airbus SE, unless otherwise disclosed, the same accounting principles have been applied as set out in the Notes to the Consolidated Financial Statements, except for the valuation of the investments as presented under investments in subsidiaries and associates in the Company Financial Statements. These policies have been consistently applied to all years presented. In the Company Financial Statements, the investments in subsidiaries and associates are recorded at acquisition cost. In the Company Income Statement, dividends received from investments are recorded as dividend income. Due to this application, the Company equity and net result are not equal to the consolidated equity and net result. A reconciliation of the total shareholders’ equity and profit for the period is presented in “-Note 14: Total Equity” of the Company Financial Statements. The Company Financial Statements have been prepared on a historical cost basis, except for the equity instruments, securities and derivative instruments that have been measured at fair value. Regarding the application of new, revised or amended IFRS issued and applying from 1 January and issued but not yet applied please refer to ”- Note 6: Change in Accounting Policies and Disclosures” of the Consolidated Financial Statements. A number of new or revised standards, amendments and improvements to standards as well as interpretations are not yet effective for the year ended 31 December 2024 and have not been applied in preparing these Consolidated Financial Statements and early adoption is not planned: AIRBUS - FINANCIAL STATEMENTS - 7 2024 2024
Standards and related amendments IASB effective date for annual reporting periods beginning on or after Endorsement status Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability 1 January 2025 Endorsed Annual Improvements Volume 11 1 January 2026 Not yet endorsed Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments 1 January 2026 Not yet endorsed Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity 1 January 2026 Not yet endorsed IFRS 18: Presentation and Disclosure in Financial Statements 1 January 2027 Not yet endorsed IFRS 19: Subsidiaries without Public Accountability 1 January 2027 Not yet endorsed The information with regard to Capital Management is disclosed in “- Note 35: Capital Management”, further information about Litigation and Claims refers to “- Note 38: Litigation and Claims” and Events after the Reporting Date are disclosed in “- Note 40: Events after the Reporting Date” of the Consolidated Financial Statements. Further information about Share-based payment and Employee Stock Ownership Plans (ESOP) is presented in “- Note 32: Share-Based Payment” and “- Note 33: Remuneration” of the Consolidated Financial Statements. Unless reference is made to the accounting policies described in the Consolidated Financial Statements, the main accounting policies applied in the preparation of these Company Financial Statements are described in each accounting area. These accounting policies have been consistently applied to all financial years presented, unless otherwise stated. 5. Key Estimates and Judgements The preparation of the Company Financial Statements requires the use of estimates and assumptions. In preparing these Financial Statements, management exercises its best judgment based upon its experience and the circumstances prevailing at that time. The estimates and assumptions are based on available information and conditions at the end of the financial period presented and are reviewed on an ongoing basis. The details regarding the use of estimates and judgements are described in “- Note 5: Key Estimates and Judgements” of the Consolidated Financial Statements. Key accounting estimates and judgements affecting the assessment and measurement of impairment are included in “- Note 10: Investments in Subsidiaries, Associates and Participations” of the IFRS Company Financial Statements. AIRBUS - FINANCIAL STATEMENTS - 8 2024
6. Related Party Transactions Key Management Personnel The details regarding the compensation of key management personnel are described in “- Note 33: Remuneration” of the Consolidated Financial Statements. Related Party Transactions A comprehensive exchange of internal services between the subsidiaries of a multinational corporation like Airbus SE is common practice. In its responsibility as holding company to manage its subsidiaries and associates; and to assist the business activities conducted by Airbus companies and its subsidiaries, the Company applies transfer prices for its business activities in conformity with market levels and in accordance with national and international tax requirements (arm’s length principle). The following table discloses the related party intercompany transactions in and : 2024 2023 (In € million) Total transactions with subsidiaries Total transactions with associates Total transactions with subsidiaries Total transactions with associates Sales of goods and services and other income (1) 4,949 35 7,939 22 Purchases of goods and services and other expenses (1,089) (93) (1,227) (63) Receivables at 31 December 6,562 1 4,675 1 Liabilities at 31 December (34,057) (2,837) (26,804) (2,135) Loans granted / Other receivables due at 31 December 4,486 82 3,530 86 Loans received / Other liabilities due at 31 December 0 (2,541) 0 (1,813) Hedge relationships receivables at 31 December 4,912 0 0 0 Hedge relationships payables at 31 December 719 0 0 0 (1) mainly including dividends received for € 4,264 million in ( : €7,448 million). For further information about granted guarantees to subsidiaries please refer to “- Note 12: Commitments and Contingencies” of the IFRS Company Financial Statements. For further information about the impairment and the expected credit losses on receivables, please refer to “- Note 16.7: Impairment Losses” of the IFRS Company Financial Statements. AIRBUS - FINANCIAL STATEMENTS - 9 2024 2023 2024 2023 2024
4.2 Company Performance 7. Total Operating Result (In € million) Note 2024 2023 Operating income 258 65 Corporate services rendered to Airbus companies 258 65 Operating expenses (73) (79) Service fees charged by Airbus companies (30) (26) Administrative expenses (43) (53) Income from investments 4,293 7,474 Dividends received 4,290 7,471 Gain on disposal of investments 3 3 Expense from investments 0 (19) Impairment 10 0 (19) Total operating result 4,478 7,441 Corporate services rendered to Airbus companies increased by € 193 million to € 258 million ( : € 65 million). In , Airbus SE received a dividend from Airbus SAS of € 3,653 million ( : € 7,383 million). 8. Total Financial Result Note (In € million) 2024 2023 Interest result (491) (729) Interest income from securities measured at fair value through OCI 274 148 Interest income (expenses) from securities measured at fair value through P&L 368 358 Interest income on financial assets measured at amortised cost 534 509 Interest expense on financial liabilities measured at amortised cost (1,667) (1,744) Other financial result 146 167 Change in fair value measurement of financial instruments 10 177 163 Impairment and Expected Credit Loss 16 (2) 2 Others (1) (29) 2 Total financial result (345) (562) (1) Other includes various amounts such as foreign exchange result, bank fees and guarantee fees. The Company is acting as a financial market agent on behalf of its subsidiaries, therefore the fair value changes of derivatives are reported on a net basis. AIRBUS - FINANCIAL STATEMENTS - 10 2023 2024 2023 2024
9. Income Taxes The Company is tax registered in the Netherlands. The Company is heading a fiscal unity, which also includes Airbus Netherlands B.V. Therefore the Company is severally and jointly liable for income tax liabilities of the fiscal unity as a whole. Income taxes — The tax expense for the year comprises deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised directly in Other Comprehensive Income. The amount of income tax included in the Income Statement is determined in accordance with the rules established by the tax authorities in the Netherlands, based on which income taxes are payable or recoverable. Deferred tax assets and/or liabilities, arising from temporary differences between the carrying amounts of assets and liabilities and the tax base of assets and liabilities, are calculated using the substantively enacted tax rates expected to apply when they are realised or settled. Deferred tax assets are recognised if it is probable that they will be realised. The expense for income taxes is comprised of the following: (In € million) 2024 2023 Current tax income (expense) (80) 2 thereof global minimum top-up tax (1) 0 Deferred tax income (expense) 0 0 Total (80) 2 The Group is subject to the global minimum top-up tax under Pillar Two tax legislation. The Group recognised a current tax expense of € 1 million related to the top-up tax (2023: € 0 million) which is levied on the Company. The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred The following table shows reconciliation from the theoretical income tax (expense) using the Dutch corporate tax rate to the reported income tax (expense): (In € million) 2024 2023 Profit (loss) before income taxes 4,133 6,882 Corporate income tax rate 25.8% 25.8% Expected income (expense) for income taxes (1,066) (1,776) Effects from tax rate differentials / Change of tax rate 0 0 Non-taxable income from investment and associates 1,153 1,970 Income from other companies within the fiscal unity (1) (1) Impairment on investment and associates 0 0 Other non-deductible expenses and tax-free income 49 (2) Changes in valuation allowances (1) (136) (190) Tax contingencies (79) 0 Reported income (expense) for income taxes (80) 2 (1) Reassessment of recoverability of deferred tax assets based on future taxable profits. AIRBUS - FINANCIAL STATEMENTS - 11 2024
Deferred income taxes as of 31 December are related to the following assets and liabilities: 1 January 2024 Other movements Movement through income statement 31 December 2024 (In € million) Deferred tax assets Deferred tax liabilities OCI Others Deferred tax benefit (expense) Deferred tax assets Deferred tax liabilities Securities 91 0 (39) 0 0 52 0 Financial instruments 307 (13) 0 0 127 427 (6) Net operating loss and tax loss carry forwards 68 0 0 0 9 77 0 Deferred tax assets (liabilities) before offsetting 466 (13) (39) 0 136 556 (6) Valuation allowances on deferred tax assets (453) 0 39 0 (136) (550) 0 Set-off (13) 13 0 0 0 (6) 6 Net deferred tax assets (liabilities) (0) 0 0 0 0 0 0 Deferred income taxes as of 31 December are related to the following assets and liabilities: 1 January 2023 Other movements Movement through income statement 31 December 2023 (In € million) Deferred tax assets Deferred tax liabilities OCI Others Deferred tax benefit (expense) Deferred tax assets Deferred tax liabilities Securities 164 0 (73) 0 0 91 0 Financial instruments 125 (18) 0 0 187 307 (13) Net operating loss and tax loss carry forwards 60 0 0 0 8 68 0 Deferred tax assets (liabilities) before offsetting 349 (18) (73) 0 195 466 (13) Valuation allowances on deferred tax assets (331) 0 73 0 (195) (453) 0 Set-off (18) 18 0 0 0 (13) 13 Net deferred tax assets (liabilities) 0 0 0 0 0 0 0 Deferred taxes on net operating losses (“NOLs”), trade tax loss carry forwards and tax credit carry forwards are: (In € million) 2024 2023 NOLs 299 263 Tax credit carry forwards 0 0 Tax effect 77 68 Valuation allowances (77) (68) Deferred tax assets on NOLs and tax credit carry forwards 0 (0) As of 1 January , tax losses can be carried forward indefinitely but profits in one year which exceed EUR 1 million will only be offsettable for up to 50 percent of that higher taxable profit against losses, minus an amount of EUR 1 million. AIRBUS - FINANCIAL STATEMENTS - 12 2024 2023 2024 2024
4.3 Operational Assets and Liabilities 10. Investments in Subsidiaries, Associates and Participations (In € million) Subsidiaries Associates Participations Total Balance at 31 December 2022 18,775 49 1,446 20,270 Additions 791 0 0 791 Disposals (1,228) 0 0 (1,228) Impairment (19) 0 0 (19) Share-based payments (IFRS 2) 168 0 0 168 Fair value changes through Profit or Loss (1) 0 0 163 163 Balance at 31 December 2023 18,487 49 1,609 20,145 Additions 770 0 0 770 Disposals 0 0 0 0 Impairment 0 0 0 0 Share-based payments (IFRS 2) 311 0 0 311 Fair value changes through Profit or Loss (1) 0 0 177 177 Balance at 31 December 2024 19,568 49 1,786 21,403 (1) For more details please refer to “- Note 21: Other Investments and Other Long-Term Financial Assets” of the Consolidated Financial Statements. Investments in Subsidiaries, Associated Companies and Participations Investments in subsidiaries and associated companies are stated at cost, less impairment. Dividend income from the Company’s subsidiaries and associated companies is recognised when the right to receive payment is established. The participations are stated at fair value with mainly changes in fair value recognised in Profit and Loss. For the purpose of impairment testing all consolidated subsidiaries are allocated to cash generating units (“CGU”) in a way they are monitored for internal management purposes. At each balance sheet date, the Company reviews whether there is an indication that a CGU to which its investments in subsidiaries and associated companies belong to are impaired. An indication for impairment of the investments in subsidiaries and associated companies may include, respectively, management’s downward adjustment of the strategic plan, a significant decrease in the share price of a publicly listed company or a significant decrease in future sales. Further indications for impairment of its investments may include other areas where observable data indicates that there is a measurable decrease in the estimated future cash flows. These determinations require significant judgement. In making this judgement, management evaluates, among other factors, the financial performance of and business outlook for its investments, including factors such as industry and sector performance, changes in technology and operational and financing cash flow. If any indication for impairment exists, the recoverable amount of the investments is estimated in order to determine the amount, if any, of the impairment loss. An investment is impaired if its recoverable amount is lower than its carrying value. The recoverable amount is defined as the higher of an investment’s fair value less costs of disposal and its value in use. The determination of the investment’s value in use is based on calculations using pre-tax cash flow projections. The discounted cash flow method is used to determine the recoverable amount of a CGU to which its investments in subsidiaries and associated companies belong. Refer to “- Note 19 : Intangible assets” of the Consolidated Financial Statements for more details on key assumptions used. If the recoverable amount of an investment is estimated to be less than its carrying amount, the carrying amount of the investment is reduced to its recoverable amount. Any impairment loss is recognised immediately in the Income Statement. Impairment losses recognised in prior periods shall be reversed only if there has been a change in the estimates or external market information used to determine the investment’s recoverable amount since the last impairment loss was recognised. The recoverable amount shall not exceed the carrying amount that would have been determined had no impairment loss been recognised in prior years. AIRBUS - FINANCIAL STATEMENTS - 13 2024
The annual impairment test performed in led to an impairment charge of € 0 million ( : € 19 million). Change of Investments in Subsidiaries, Associated Companies and Participations In December , Airbus SE made a capital contribution of € 747 million in Airbus Defence and Space Limited. During the year , Airbus SE made other capital increases and contributions to participations and subsidiaries for a total amount of € 23 million. Principal investments of the Company 2024 2023 % Company Head office 100.00 100.00 Airbus Defence and Space Ltd. Stevenage (UK) 100.00 100.00 Aero Ré S.A. Bertrange (Luxembourg) 100.00 100.00 Airbus Netherlands B.V. Leiden (Netherlands) 100.00 100.00 Airbus Defence and Space S.A. Madrid (Spain) 100.00 100.00 Airbus Bank GmbH Munich (Germany) 61.47 61.47 Airbus Defence and Space GmbH Taufkirchen (Germany) 94.73 94.73 Airbus S.A.S. Toulouse (France) 10.53 10.24 Dassault Aviation S.A. Paris (France) 5.33 5.33 Airbus GmbH Hamburg (Germany) Percentages represent shares held directly by Airbus SE. 11. Financial Assets and Financial Liabilities Financial assets at 31 December and : 31 December (In € million) 2024 2023 Long-term loans Airbus companies (1) 4,525 4,497 Positive fair values of derivative financial instruments 3,085 2,280 Non-current financial assets 7,610 6,777 Positive fair values of derivative financial instruments 2,551 2,029 Current portion long-term loans Airbus companies 43 73 Current accounts Airbus companies (1) 6,544 4,663 Current financial assets 9,138 6,765 Total 16,748 13,542 (1) The receivables from subsidiaries include mainly transactions in connection with the cash pooling in the Company. Terms and conditions are in agreement with the prevailing market environment. AIRBUS - FINANCIAL STATEMENTS - 14 2024 2023 2024 2024 2024 2023 2024
Financial liabilities at 31 December and : 31 December (In € million) 2024 2023 Negative fair values of derivative financial instruments 3,917 3,243 Non-current financial liabilities 3,917 3,243 Negative fair values of derivative financial instruments 2,556 2,049 Current accounts Airbus companies (1) 31,216 28,938 Current financial liabilities 33,772 30,987 Total 37,689 34,230 (1) The liabilities to subsidiaries include mainly transactions in connection with the cash pooling in Airbus SE. Terms and conditions are in agreement with the prevailing market environment. 12. Commitments and Contingencies Off-Balance Sheet Commitments Airbus SE issued guarantees on behalf of Airbus companies in the amount of € 11,571 million ( : € 11,947 million). The commitments of these companies to third parties mainly relate to their operating business as described in “- Note 20: Property, Plant and Equipment”, “- Note 27: Sales Financing Transactions”, “- Note 37: Financial Instruments” and “- Note 36.3: Financing Liabilities” of the Consolidated Financial Statements. On 8 December 2015, Airbus SE entered into a partnership agreement to establish a corporate venture capital fund, dubbed Airbus Group Ventures Fund II, L.P., with a total commitment amount of US$ 150 million. The remaining commitment is US$ 5 million at 31 December . On 1 April 2019, Airbus SE entered into a partnership agreement with effective date 1 July 2019 to establish a venture capital fund, dubbed Airbus Ventures Fund III, L.P., with a total commitment amount of US$ 100 million. The remaining commitment is US$ 7 million at 31 December . On 22 October 2022, Airbus SE entered into a partnership agreement to establish a venture capital fund, dubbed Airbus Ventures Fund IV, L.P., with a total commitment amount of US$ 75 million. The remaining commitment is US$ 50 million at 31 December . In addition, the Company has two guarantees to cover its obligation towards the Scheme and the BAE Systems pension schemes. To mitigate its exposure, the first guarantee covers an amount up to GBP 1.25 billion for an unlimited period of time while the second one covers an uncapped amount terminating in 2046, respectively for the Scheme and the BAE Systems Pension Schemes. AIRBUS - FINANCIAL STATEMENTS - 15 2024 2023 2023 2024 2024 2024 2024
4.4 Employees 13. Number of Employees The average number of the persons employed by the Company in the Netherlands in was 21 ( : 19). The number of the persons employed by the Company in the Netherlands as of 31 December was 21 ( : 20). 4.5 Capital Structure and Financial Instruments 14. Total Equity Airbus SE’s shares are exclusively ordinary shares with a par value of € 1.00. The following table shows the development of the number of shares issued and fully paid: (In number of shares) 2024 2023 Issued as at 1 January 790,459,434 788,205,008 Issued for ESOP 1,824,249 2,254,426 Issued as at 31 December 792,283,683 790,459,434 Treasury shares (4,327,432) (3,037,467) Outstanding at 31 December 787,956,251 787,421,967 Authorised shares 3,000,000,000 3,000,000,000 Holders of ordinary shares are entitled to dividends and are entitled to one vote per share at general meetings of the Company. Capital stock comprises the nominal amount of shares outstanding. The addition to capital stock represents the contribution for exercised options by employees of € 1,824,249 (in : €  2,254,426) in compliance with the implemented Stock Option Plans and the Employee Stock Ownership Plans (“ESOP”). Share premium mainly results from contributions in kind in the course of the creation of the Company, cash contributions from the Company’s Initial Public Offering, capital increases and reductions due to the issuance and cancellation of shares. Retained earnings include mainly the profit of the period and cash dividend payments to Airbus SE shareholders. On 10 April 2024, the Annual General Meeting (“AGM”) decided to distribute a gross amount of € 1.80 per share and a special dividend of € 1.00 per share, which was paid on 18 April 2024. For the fiscal year 2024, the Board of Directors will propose the payment of a dividend of € 2.00 per share and a special dividend of € 1.00 per share to the 2024 Annual General Meeting taking place on 15 April 2025. The proposed payment date is 24 April 2025. Legal reserves include: - change from financial assets at fair value (see “– Note 16: Information about Financial Instruments” of the IFRS Company Financial Statements); - change in fair value of derivatives designated as cash flow hedges (see “– Note 16: Information about Financial Instruments” of the IFRS Company Financial Statements). According to Dutch law, Legal reserves cannot be distributed for dividend purposes when positive. Treasury shares represent the amount paid or payable for own shares held in treasury. During , the number of treasury stock held by the Company increased to 4,327,432 compared to 3,037,467 as of 31 December , mainly due to the share buybacks partly offset by delivery of shares under ESOP in 2024 and vested shares in under LTIP 2020 (see “– Note 32: Share-based Payment” of the Consolidated Financial Statements). No shares were sold back to the market nor cancelled in ( : 0 shares). AIRBUS - FINANCIAL STATEMENTS - 16 2024 2023 2024 2023 2023 2024 2023 2024 2024 2023 2024
Authorisations Granted by the Annual’ General Meeting of Airbus SE Held on 10 April 2024 On 10 April 2024, the AGM of the Company authorised the Board of Directors, for a period expiring at the AGM to be held in 2025, to issue shares and to grant rights to subscribe for shares in the Company’s share capital for the purpose of: - ESOPs and share-related LTIPs, provided that such powers shall be limited to an aggregate of 0.18% of the Company’s authorised share capital (see “– Note 32: ShareBased Payment” of the Consolidated Financial Statements); - funding the Company and its subsidiaries, provided that such powers shall be limited to an aggregate of 0.3% of the Company’s authorised share capital (see “– Note 36.3: Financing Liabilities” of the Consolidated Financial Statements). For each operation, such powers shall not extend to issuing shares or granting rights to subscribe for shares if there is no preferential subscription right and for an aggregate issue price in excess of € 500 million per share issuance. Also on 10 April 2024, the AGM authorised the Board of Directors for an 18 months period to repurchase up to 10% of the Company’s issued share capital 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. Furthermore, the AGM authorised the Board of Directors to determine on a case by case basis the share repurchase programmes to be implemented by the Company, if any. Reconciliation Consolidated to Company Equity and Net Income The difference between the total shareholders’ equity according to the Consolidated Financial Statements and Company’s Financial Statements as at 31 December and is as follows: (In € million) 2024 2023 Consolidated Equity 19,606 17,695 OCI - Restatement of investments from Consolidated to Company Financial Statements 3,085 1,951 Retained Earnings - Restatement of investments from Consolidated to Company Financial Statements (7,526) (6,398) Retained Earnings - Valuation investments at historical cost 1,487 1,487 Retained Earnings - Impairment of financial assets (816) (1,023) Company's Equity 15,836 13,712 The difference between the net income according to the Consolidated Financial Statements and Company’s Financial Statements for the year ended 31 December and is as follows: (In € million) 2024 2023 Consolidated net income 4,232 3,789 Income from investments according to Consolidated Financial Statements (4,443) (4,357) Income from investments according to Company Financial Statements 4,264 7,452 Company’s net income (Profit or loss for the period) 4,053 6,884 AIRBUS - FINANCIAL STATEMENTS - 17 2024 2023 2024 2023 2024
15. Cash, Securities and Financing Liabilities 15.1 Net Cash 31 December (In € million) 2024 2023 Cash and Cash equivalents 12,290 14,618 Current securities 2,710 1,162 Non-current securities 8,354 6,986 Gross cash position 23,354 22,766 Short-term financing liabilities (1) (558) (818) Long-term financing liabilities (1) (7,482) (7,719) Interest rate swap (832) (961) Total 14,482 13,268 (1) Including € 7 million of lease liabilities ( : € 8 million). The net cash position on 31 December amounted to € 14,482 million ( : € 13,268 million), with a gross cash position of € 23,354 million ( : € 22,766 million). 15.2 Cash and Cash Equivalents Cash and cash equivalents are composed of the following elements: 31 December (In € million) 2024 2023 Bank accounts and petty cash 1,506 1,198 Short-term securities (at fair value through profit or loss) 10,042 12,410 Short-term securities (at fair value through OCI) 742 1,010 Total cash and cash equivalents 12,290 14,618 Only securities with a maturity of three months or less from the date of the acquisition, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value are recognised in cash equivalents. The main variations are as follows: Cash provided by operating activities amounted to € (441) million in . Cash used for investing activities amounted to € 1,054 million, mainly reflecting dividends received of € 4,290 million partly offset by investment in securities for € (2,576) million and capital contributions in subsidiaries for an amount of € (770) million. Cash used for financing activities amounted to € (3,274) million and mainly reflects the dividend payment € (2,215) million and the decrease in financing liabilities € (748) million (see IFRS Company Statement of Cash Flows for the years ended 31 December and ). AIRBUS - FINANCIAL STATEMENTS - 18 2023 2024 2023 2023 2024 2024 2023 2024
15.3 Securities 31 December (In € million) 2024 2023 Current securities (at fair value through OCI) 2,710 1,162 Non-current securities (at fair value through OCI) 8,354 6,986 Total securities 11,064 8,148 The majority of the Company’s securities consists of debt securities and are classified at fair value through OCI (see “– Note 37.2: Carrying Amounts and Fair Values of Financial Instruments” of the Consolidated Financial Statements). The Company’s securities portfolio amounts to € 11,064 million and € 8,148 million as of 31 December 2024 and 2023, respectively. The security portfolio contains a non-current portion of € 8,354 million (2023: € 6,986 million), and a current portion of € 2,710 million (2023: € 1,162 million). Included in the securities portfolio as of 31 December 2024 and 2023, respectively, are corporate and government bonds bearing either fixed rate coupons (€  11,258 million nominal value; 2023: € 8,496 million) or floating rate coupons (€ 0 million nominal value; 2023: € 0 million). When the Company enters into securities lending or other financing activities that involve the pledging of securities as collateral, the securities pledged continue to be recognised on the balance sheet. As of 31 December and , there were no securities pledged as collateral for borrowings from banks. AIRBUS - FINANCIAL STATEMENTS - 19 2024 2023 2024
15.4 Financing Liabilities Current and non-current classification – A financial liability is classified as current if it is due to be settled within 12 months after the reporting date or if the Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. Otherwise the Company classifies the financial liability as non-current. Financing liabilities comprise obligations towards financial institutions, issued corporate bonds, and borrowing received from associates and other parties. Principal amount (In million) Carrying amount (In € million) Issuance date Coupon or interest rate Effective interest rate Maturity Additional features 31 December 2024 2023 EMTN 10 years €823 0 817 Apr. 2014 0 0 Apr. 2024 Interest rate swapped into 3M Euribor +1.40% EMTN 5 years €561 556 535 Mar. 2020 1.63% 1.80% Apr. 2025 Interest rate swapped into 3M Euribor +2,01% EMTN 10 years €461 448 436 May 2016 0.88% 0.98% May 2026 Interest rate swapped into 3M Euribor +0.50% EMTN 6 years €894 861 832 Jun. 2020 1.38% 1.47% Jun. 2026 Interest rate swapped into 3M Euribor +1.66% EMTN 8 years €611 565 546 Mar. 2020 2.00% 2.10% Apr. 2028 Interest rate swapped into 3M Euribor +2.15% EMTN 15 years €500 478 469 Oct. 2014 2.12% 2.21% Oct. 2029 Interest rate swapped into 3M Euribor +0.84% EMTN 10 years €1,250 1,103 1,067 Jun. 2020 1.63% 1.74% Jun. 2030 Interest rate swapped into 3M Euribor +1.61% EMTN 15 years €900 813 793 May 2016 1.38% 1.50% May 2031 Interest rate swapped into 3M Euribor +0.66% EMTN 12 years €1,000 849 822 Mar. 2020 2.38% 2.49% Apr. 2032 Interest rate swapped into 3M Euribor +2.24% EMTN 20 years €1,000 734 706 Jun. 2020 2.38% 2.44% Jun. 2040 Interest rate swapped into 3M Euribor +1,93% US$ Bond 10 Years US$ 750 693 641 Apr. 2017 3.15% 3.16% Apr. 2027 Interest rate swapped into 1D SOFR US$ Bond 30 Years US$ 750 643 651 Apr. 2017 3.95% 4.02% Apr. 2047 Interest rate swapped into 1D SOFR + 0.31% Bonds 7,743 8,315 European investment Bank €165 154 165 Dec. 2023 3M Euribor +0.498% 3M Euribor +0.498% Dec. 2038 KfW Developpement Bank €150 136 48 Jul. 2023 3M Euribor +0.59% 3M Euribor +0.59% Jul. 2029 Liabilities to financial institutions 290 213 Total 8,033 8,528 Thereof non-current financing liabilities 7,477 7,711 Thereof current financing liabilities 556 817 Long-term financing liabilities, mainly comprising bonds and liabilities to financial institutions, decreased by € (234) million to € 7,477 million ( : € 7,711 million), mainly due to a transfer to short term of EMTN 5 years maturing in 2025, new loans AIRBUS - FINANCIAL STATEMENTS - 20 2023 2024
from financial institutions (€ 100 million), and the decrease in values of bonds linked to lower interest rates (see “– Note 16: Information about Financial Instruments” of the IFRS Company Financial Statements). Short-term financing liabilities decreased by € (261) million to € 556 million (2023: € 817 million), mainly due to the EMTN 10 Years maturing in and EMTN 5 Years maturing in 2025. The Company can issue commercial papers under its € 11 billion Negotiable European Commercial Paper (“NEuCP”) programme, its € 4 billion Euro Commercial Paper (“ECP”) programme and its US$ 3 billion US Commercial Paper programme. As of 31 December , there were no outstanding amounts under any of its Commercial Paper Programme. Non-cash movements (In € million) Balance at 1 January 2024 Cash flows Fair value through profit or loss Foreign exchange movements Others Balance at 31 December 2024 Bonds and commercial papers 8,315 (825) 155 81 17 7,743 Liabilities to financial institutions 213 77 0 0 0 290 Total 8,528 (748) 155 81 17 8,033 Non-cash movements (In € million) Balance at 1 January 2023 Cash flows Fair value through profit or loss Foreign exchange movements Others Balance at 31 December 2023 Bonds and commercial papers 7,903 0 449 (49) 12 8,315 Liabilities to financial institutions 0 213 0 0 0 213 Total 7,903 213 449 (49) 12 8,528 16. Information about Financial Instruments 16.1 Financial Risk Management The Company acts as an intermediary for its subsidiaries when they wish to enter into derivative contracts to hedge against foreign exchange risk or other market risks such as interest rate risk, commodity price risk or equity price risk. The Company’s practice is to set up a derivative contract with a subsidiary and at the same time enter into a back-to-back derivative transaction with a bank. Contracts with subsidiaries being thus mirrored (on a one-to-one basis) by contracts with banks, the Company’s net exposure is virtually zero. There are, however, a few derivative contracts the Company holds in order to hedge its own market risk exposure. As the Company’s back-to-back hedge contracts are entered into with different counterparties, their fair values are reflected separately in the statement of Financial Position and recognised as other financial assets and financial liabilities as disclosed in “- Note 11: Other Financial Assets and Other Financial Liabilities” of the IFRS Company Financial Statements. In the Income Statement, the results of the back-to-back hedge transactions, both realised and unrealised, are presented on a net basis as the Company acts as an agent for its subsidiaries. The Company’s overall financial risk management activities and their objectives are described in detail in “- Note 37.1: Financial Risk Management” of the Consolidated Financial Statements. Market Risk Foreign exchange risk The Company manages a long‒term hedge portfolio with maturities of several years for its subsidiaries, mainly Airbus, and to a small extent for its joint ventures or associates. This hedge portfolio covers a large portion of Airbus’ firm commitments and highly probable forecast transactions. As explained above, owing to the Company’s back-to-back approach, its own exposure to foreign exchange risk is very limited. Interest rate risk — The Company uses an asset-liability management approach, performed at Group level, with the objective to limit its interest rate risk. It undertakes to match the Group risk profile of its interest-bearing assets with those of its interest-bearing liabilities. Group asset-liability management is mainly driven by the company's external assets and liabilities. The remaining net interest rate exposure is managed through several types of interest rate derivatives, such as interest rate swaps and interest rate futures contracts, in order to minimize risks and financial impacts. AIRBUS - FINANCIAL STATEMENTS - 21 2024 2024 2024
The vast majority of related interest rate hedges qualify for hedge accounting, and most of them are accounted for under the fair value hedge model. As a result, both the fair value changes of these derivatives and the portion of the hedged items’ fair value change that is attributable to the hedged interest rate risk are recognised in Profit and Loss, where they offset to the extent the hedge is effective. The Company has applied the relief introduced by the amendments made to IFRS 9 in September 2019 on hedge accounting, having the effect that the IBOR reform should not cause hedge accounting to terminate. The Company invests in financial instruments such as overnight deposits, certificates of deposits, commercial papers, other money market instruments and short-term as well as medium-term bonds. For its financial instruments portfolio, the Company has an Asset Liability Management Committee in place that meets regularly and aims to limit the interest rate risk on a fair value basis through a value-at-risk approach, from which results a hedge ratio that is however not actively steered. Commodity price risk — The Company manages a hedge portfolio for its subsidiaries. Owing to the Company’s back-to-back approach, its own exposure to commodity exchange risk is very limited. Equity price risk — The Company is to a small extent invested in equity securities mainly for operational reasons. Its exposure to equity price risk is hence limited. Furthermore, it is exposed under its LTIP to the risk of the Company share price increases. Sensitivities of market risks The approach used to measure and control market risk exposure within the Company’s financial instrument portfolio is amongst other key indicators the value‒at‒risk (“VaR”). For information about VaR and the approach used by the Company to assess and monitor sensitivities of market risks please refer to “- Note 37.1: Financial Risk Management” of the Consolidated Financial Statements. The Company is part of the Group risk management process, which is more fully described in “- Note 37.1: Financial Risk Management” of the Consolidated Financial Statements. A summary of the VaR position of the Company’s financial instruments portfolio at 31 December and 31 December is as follows: (In € million) Total VaR Equity price VaR Currency VaR Interest rate VaR 31 December 2024 Foreign exchange hedges 9 0 9 0 Financing liabilities, financial assets (including cash, cash equivalents, securities and related hedges) 131 96 32 83 Equity swaps 0 0 0 0 Diversification effect (11) (0) (17) (0) All financial instruments 129 96 24 83 31 December 2023 Foreign exchange hedges 11 0 12 1 Financing liabilities, financial assets (including cash, cash equivalents, securities and related hedges) 150 70 29 141 Equity swaps 1 1 0 0 Diversification effect (15) (1) (25) (1) All financial instruments 147 70 16 141 The decrease in the total VaR of €18 million ( : € 147 million) is mainly attributable to the interest rate volatility stabilization, partially offset by higher volatility in the equity market in 2024. The derivative instruments entered into with external counterparties are passed on a 1:1 basis to Airbus entities. As a result, the respective market risks of the external derivative instruments are offset by corresponding opposite market risks of intragroup transactions. Liquidity Risk The Company’s policy is to maintain sufficient cash and cash equivalents at any time to meet its present and future commitments as they fall due. It manages its liquidity by holding adequate volumes of liquid assets and maintains a committed revolving credit facility, in addition to the cash inflow generated by its operating business. The Company continues to keep within its asset portfolio the focus on low counterparty risk. In addition, it maintains a set of other funding sources, and accordingly may raise loans from commercial banks and Development Finance Institutions and issue bonds, notes and commercial papers or enter into security lending agreements . Adverse changes in the capital markets could increase its funding costs and limit its financial flexibility. For further information relating to Commercial Paper Programme (see “– Note 15.4: Financing Liabilities” of the IFRS Company Financial Statements). In particular, Airbus signed on 5 July 2022 a € 8 billion Sustainability Linked Revolving Syndicated Credit Facility in order to refinance its € 6 billion existing facility signed in 2020. Further, the management of the vast majority of the Company’s liquidity exposure is centralised by a daily cash concentration process. This process enables it to manage its liquidity surplus as well as its liquidity requirements according to the actual AIRBUS - FINANCIAL STATEMENTS - 22 2024 2023 2023 2024
needs of its subsidiaries. In addition, management monitors the Company’s liquidity reserve as well as the expected cash flows from its operations. The contractual maturities of the Company financial liabilities, based on undiscounted cash flows and including interest payments, if applicable, are as follows: (In € million) Carrying amount Contractual cash flows < 1 year 1 year 2 years 3 years 4 years More than 5 years -2 years -3 years -4 years -5 years 31 December 2024 Non-derivative financial liabilities (1) (39,256) (41,483) (31,957) (1,526) (876) (742) (619) (5,763) Derivative financial liabilities (6,473) (8,400) (2,783) (2,213) (2,091) (517) (55) (741) Total (45,729) (49,883) (34,740) (3,739) (2,967) (1,259) (674) (6,504) 31 December 2023 Non-derivative financial liabilities (1) (37,475) (40,094) (29,957) (738) (1,522) (830) (741) (6,306) Derivative financial liabilities (5,292) (6,388) (2,200) (1,294) (926) (1,051) (56) (861) Total (42,767) (46,482) (32,157) (2,032) (2,448) (1,881) (797) (7,167) (1) Current accounts Group companies are included in “Non-derivative financial liabilities” and have a maturity less than 1 year. Credit Risk The Company is exposed to credit risk to the extent of non-performance by its counterparts with regard to financial instruments or issuers of financial instruments for gross cash investments. However, it has policies in place to avoid concentrations of credit risk and to ensure that credit risk is limited. As far as central treasury activities are concerned, credit risk resulting from financial instruments is managed by the Company. In order to ensure sufficient diversification, a credit limit system is used. The Company monitors the performance of the individual financial instruments and the impact of market developments on their performance and takes appropriate action on foreseeable adverse development based on pre-defined procedures and escalation levels. Sales of products and services are made to customers after having conducted appropriate internal credit risk assessment. The booked amount of financial assets represents the maximum credit exposure. The credit quality of financial assets can be assessed by reference to external credit rating (if available) or internal assessment of customers’ creditworthiness by way of internal risk pricing methods. In , the trade receivables, neither past due nor impaired amount to € 20 million (in : € 12 million). The Company measures loss allowances at an amount that represents credit losses resulting from default events that are possible within the next 12 months, unless the credit risk on a financial instrument has increased significantly since initial recognition, as described in “- Note 37.7: Impairment losses” of the Consolidated Financial Statements. In , an amount of € 2 million of impairment loss on financial assets is recognised in Profit and Loss ( : € 2 million). 16.2 Carrying Amounts and Fair Values of Financial Instruments Financial instruments – The Company’s financial assets mainly consist of cash, short to medium-term deposits, securities and derivatives. The Company’s financial liabilities include intragroup liabilities, obligations towards financial institutions, issued bonds and derivatives. The Company has the same classification and accounting policies as in the Consolidated Financial Statements. Please refer to “- Note 37.1: Financial Risk Management” of the Consolidated Financial Statements for more information. The Company classifies its financial assets in one of the following categories: (i) at fair value through OCI, (ii) at fair value through profit and loss and (iii) at amortised cost. Classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. The Company assigns its financial instruments (excluding its at-cost investments, which are outside the scope of IFRS 9 “Financial Instruments”) into classes based on their category in the Statement of Financial Position. AIRBUS - FINANCIAL STATEMENTS - 23 2024 2023 2024 2023 2024
The following table presents the carrying amounts and fair values of financial instruments by class and by IFRS 9 measurement category as of 31 December : Financial assets and liabilities at amortised cost Financial instruments total (In € million) Fair value through profit or loss Fair value through OCI Amortised cost Fair value Book value Fair value Assets Other investments and long-term financial assets Equity investments 1,786 0 0 0 1,786 1,786 Loans 0 0 4,568 4,761 4,568 4,761 Trade receivables 0 0 20 20 20 20 Other financial assets Derivative instruments 5,636 0 0 0 5,636 5,636 Current account Airbus companies 0 0 6,544 6,544 6,544 6,544 Securities 0 11,064 0 0 11,064 11,064 Cash and cash equivalents 10,042 742 1,506 1,506 12,290 12,290 Total 17,464 11,806 12,638 12,831 41,908 42,101 Liabilities Financing liabilities Bonds and commercial papers 0 0 7,743 8,074 7,743 8,074 Liabilities to financial institutions 0 0 290 298 290 298 Other financial liabilities Derivative instruments 6,473 0 0 0 6,473 6,473 Current account Airbus companies 0 0 31,216 31,216 31,216 31,216 Trade liabilities 0 0 4 4 4 4 Total 6,473 0 39,253 39,592 45,726 46,065 AIRBUS - FINANCIAL STATEMENTS - 24 2024 2024
The following table presents the carrying amounts and fair values of financial instruments by class and by IFRS 9 measurement category as of 31 December : Financial assets and liabilities at amortised cost Financial instruments total (In € million) Fair value through profit or loss Fair value through OCI Amortised cost Fair value Book value Fair value Assets Other investments and long-term financial assets Equity investments 1,609 0 0 0 1,609 1,609 Loans 0 0 4,570 4,816 4,570 4,816 Trade receivables 0 0 12 12 12 12 Other financial assets Derivative instruments 4,310 0 0 0 4,310 4,310 Current account Airbus companies 0 0 4,663 4,663 4,663 4,663 Securities 0 8,148 0 0 8,148 8,148 Cash and cash equivalents 12,410 1,010 1,198 1,198 14,618 14,618 Total 18,329 9,158 10,443 10,689 37,930 38,176 Liabilities Financing liabilities Bonds and commercial papers 0 0 8,315 8,767 8,315 8,767 Liabilities to financial institutions 0 0 213 220 213 220 Other financial liabilities Derivative instruments 5,292 0 0 0 5,292 5,292 Current account Airbus companies 0 0 28,938 28,938 28,938 28,938 Trade liabilities 0 0 11 11 11 11 Total 5,292 0 37,477 37,936 42,769 43,228 Fair Value Hierarchy For further details please refer to “- Note 37.2: Carrying Amounts and Fair Values of Financial Instruments” of the Consolidated Financial Statements. The fair values disclosed for financial instruments accounted for at amortised cost reflect Level 2 input. The following table presents the carrying amounts of the financial instruments held at fair value across the three levels of the fair value hierarchy as of 31 December and , respectively: (In € million) 31 December 2024 31 December 2023 Level 1 Level 2 Total Level 1 Level 2 Total Financial assets measured at fair value Equity instruments 1,786 0 1,786 1,609 0 1,609 Derivative instruments 0 5,636 5,636 0 4,310 4,310 Securities 11,064 0 11,064 8,148 0 8,148 Cash equivalents 10,042 742 10,784 12,410 1,010 13,420 Total 22,892 6,378 29,270 22,167 5,320 27,487 Derivative instruments 0 6,473 6,473 0 5,292 5,292 Total 0 6,473 6,473 0 5,292 5,292 AIRBUS - FINANCIAL STATEMENTS - 25 2023 2024 2023 2024
Financial Assets Designated at Fair Value through Profit or Loss The financial assets held at 31 December and designated at fair value through profit or loss are Money market funds (accumulating). Nominal amount at initial recognition at 31 December is € 10,042 million (in : € 12,410 million) The Company manages these assets and measures their performance on a fair value basis. 16.3 Potential Effect of Set-Off Rights on Recognised Financial Assets and Liabilities The Company reports all its financial assets and financial liabilities on a gross basis. With each derivative counterparty there are master netting agreements in place providing for the immediate close-out of all outstanding derivative transactions and payment of the net termination amount in the event a party to the agreement defaults or another defined termination event occurs. The following tables set out, on a counterparty specific basis, the potential effect of master netting agreements on the Company’s financial position, separately for financial assets and financial liabilities that were subject to such agreements as of 31 December and 31 December , respectively: Gross amounts recognised Gross amounts recognised set off in the Financial Statements Net amounts presented in the Financial Statements Related amounts not set off in the Statement of Financial Position Net amount Derivative instruments (In € million) Financial instruments Cash collateral received 31 December 2024 Financial assets 5,636 0 5,636 (1,418) 0 4,218 Financial liabilities 6,473 0 6,473 (1,418) 0 5,055 31 December 2023 Financial assets 4,310 0 4,310 (1,676) 0 2,634 Financial liabilities 5,292 0 5,292 (1,676) 0 3,616 16.4 Notional Amounts of Derivative Financial Instruments The notional amount of interest rate contracts are as follows, specified by year of expected maturity: Remaining period (In € million) 1 year 2 years 3 years 4 years 5 years 6 years 7 years > 7 years Total 31 December 2024 619 1,359 1,470 621 636 1,250 930 2,728 9,613 31 December 2023 911 654 1,365 1,426 621 524 1,250 3,629 10,380 The notional amounts of equity swaps are as follows: Remaining period (In € million) 1 year 2 years 3 years 4 years > 4 years Total 31 December 2024 34 0 0 0 0 34 31 December 2023 41 34 0 0 0 75 AIRBUS - FINANCIAL STATEMENTS - 26 2024 2024 2023 2024 2023 2024
16.5 Derivative Financial Instruments and Hedge Accounting Disclosure The following table presents the amounts relating to items designated as hedging instruments: 31 December 2024 2023 Carrying values Carrying values (In € million) Asset Liability Asset Liability Foreign currency risk 0 0 0 0 Interest rate risk 0 832 (21) 982 Commodity swap risk 0 0 0 0 Equity swap risk 0 0 0 0 Total 0 832 (21) 982 16.6 Net Gains or Net Losses The Company’s net gains or net losses recognised in profit or loss in and , respectively are as follows: 31 December (In € million) 2024 2023 Financial assets or financial liabilities at fair value through profit or loss: Held for trading (73) 30 Designated on initial recognition 358 (193) Financial assets at amortised cost (1) 191 (49) Financial assets at fair value through OCI 172 (66) Financial assets at fair value through profit or loss 177 163 Financial liabilities measured at amortised cost (719) 286 Total 106 171 (1) Including impairment and Expected Credit Losses on Financial assets at amortised cost. 16.7 Impairment Losses Loss allowances — For its portfolio of debt instruments including bonds, term deposits and commercial papers, the Company measures loss allowances at an amount that represents credit losses resulting from default events that are possible within the next 12 months, unless the credit risk on a financial instrument has increased significantly since initial recognition. In the event of such significant increase in credit risk the Company measures loss allowances for that financial instrument at an amount equal to its life-time expected losses, i.e. at an amount equal to the expected credit losses that result from all possible default events over the expected life of that financial instrument. The Company applies the low credit risk exemption allowing the Company to assume that there is no significant increase in credit risk since initial recognition of a financial instrument, if the instrument is determined to have low credit risk at the reporting date. Similarly, the Company has determined that its trade receivables generally have low credit risk. The Company applies the simplified approach permitted by IFRS 9 of measuring expected credit losses of trade receivables on a lifetime basis from initial recognition. Investment grade instruments — The Company considers a significant increase in credit risk to have occurred, if there is a downgrade by four notches such that the instrument moves into a high yield bucket as a direct result of the downgrade. With respect to instruments that were high yield at initial recognition, a downgrade by four notches is considered as a significant increase in credit risk. AIRBUS - FINANCIAL STATEMENTS - 27 2024 2023 2024
Stage 1 Stage 2 Stage 3 (In € million) 12-month ECL Life-time ECL Credit impaired ECL Total At 1 January 2024 7 0 0 7 Change in financial assets and risk parameters 1 0 0 1 At 31 December 2024 8 0 0 8 Stage 1 Stage 2 Stage 3 (In € million) 12-month ECL Life-time ECL Credit impaired ECL Total At 1 January 2023 8 0 0 8 Change in financial assets and risk parameters (1) 0 0 (1) At 31 December 2023 7 0 0 7 There are no significant impairment on Financial Assets recognized in Profit and Loss in and respectively. AIRBUS - FINANCIAL STATEMENTS - 28 2024 2023 2024
4.6 Other Notes 17. Auditor Fees Fees related to audit and other assurance services rendered by the Company’s auditor, EY Accountants B.V., for the fiscal year were € 0.9 million (in 2023: € 0.7 million), of which € 0.1 million relates to CSRD Limited Assurance (in 2023: € 0.0 million). Fees related to audit and other assurance services rendered other EY member firms € 3.0 million (in 2023: € 2.3 million) of which € 1.3 million relates to CSRD Limited Assurance (in 2023: € 0.0 million). . 18. Events after the Reporting Date Regarding the events after the Reporting Date, please refer to “- Note 40: Events after the Reporting Date” of the Consolidated Financial Statements. AIRBUS - FINANCIAL STATEMENTS - 29 2024
5. Other Supplementary Information Appropriation of Result Articles 30 and 31 of the Articles of Association provide that the Board of Directors shall determine which part of the result shall be attributed to the reserves. The General Meeting of Shareholders may dispose of a reserve only upon a proposal of the Board of Directors and to the extent it is permitted by law and the Articles of Association. Dividends may only be paid after adoption of the annual accounts from which it appears that the shareholders’ equity of the Company is more than the amount of the issued and paid-in part of the capital increased by the reserves that must be maintained by law. AIRBUS - FINANCIAL STATEMENTS - 30 2024
Independent auditor’s report To: the shareholders and the board of directors of Airbus SE Report on the audit of the financial statements 2024 included in the annual report Our opinion We have audited the accompanying financial statements 2024 of Airbus SE (the Company) based in Amsterdam, the Netherlands. In our opinion, the financial statements give a true and fair view of the financial position of Airbus SE as at 31 December 2024 and of its result and its cash flows for 2024 in accordance with International Financial Reporting Standards as adopted in the European Union (EU-IFRSs) and with Part 9 of Book 2 of the Dutch Civil Code. The financial statements comprise: The IFRS consolidated and IFRS company statement of financial position as at 31 December 2024 The following statements for the year ended 31 December 2024: the IFRS consolidated and IFRS company income statement, the IFRS consolidated and IFRS company statements of comprehensive income, changes in equity and cash flows The notes comprising material accounting policy information and other explanatory information Basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the Our responsibilities for the audit of the financial statements section of our report. We are independent of Airbus SE in accordance with the EU Regulation on specific requirements regarding statutory audit of public-interest entities, the Wet toezicht accountantsorganisaties (Wta, Audit firms supervision act), the Verordening inzake de onafhankelijkheid van accountants bij assurance- opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore, we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics for professional accountants). We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Information in support of our opinion We designed our audit procedures in the context of our audit of the financial statements as a whole and in forming our opinion thereon. The following information in support of our opinion and any findings were addressed in this context, and we do not provide a separate opinion or conclusion on these matters.
Our understanding of the business The Company is globally active in developing, producing and delivering aeronautics and aerospace products and related services. The Company is structured in three business segments, and we tailored our group audit approach accordingly. We paid specific attention in our audit to a number of areas driven by the operations of the group and our risk assessment. We determined materiality and identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, in order to design audit procedures responsive to those risks and to obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. Materiality Materiality 265 million (2023: 292 million) Benchmark applied 5% of EBIT (2023: 5% of EBIT Adjusted) Explanation We consider EBIT as the most appropriate benchmark as it best aligns with the financial performance expectations of those charged with governance at Airbus SE and in our assessment the financial information needs of users of the Company’s financial statements. In financial years when EBIT is relatively volatile, we deem EBIT Adjusted – a reported alternative performance measure intended to capture just the underlying business margin – more appropriate. We have also taken into account misstatements and/or possible misstatements that in our opinion are material for the users of the financial statements for qualitative reasons. We agreed with the board of directors that any misstatements in excess of 13 million (5% of materiality mentioned above), that are identified during the audit, would be reported to them, as well as any smaller misstatements that in our view must be reported on qualitative grounds. Scope of the group audit Airbus SE is at the head of a group of entities. The financial information of the group is included in the financial statements. We are responsible for planning and performing the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the financial statements. We are also responsible for the direction, supervision, review and evaluation of the audit work performed for purposes of the group audit. We bear the full responsibility for the auditor’s report. Based on our understanding of the group and its environment, the applicable financial framework and the group’s system of internal control, we identified and assessed risks of material misstatement of the financial statements and the significant accounts and disclosures. Based on this risk assessment, we determined the nature, timing and extent of audit work performed, including the entities or business units within the group (components) at which to perform audit work. For this determination we considered the nature of the relevant events and conditions underlying the identified risks of material misstatements for the financial statements, the association of these risks to components and the materiality or financial size of the components relative to the group. We communicated the audit work to be performed and identified risks through instructions for division and component auditors as well as requesting the auditors to communicate matters related to the financial information of the component that is relevant to identifying and assessing risks. In our instructions, we also included targeted audit procedures regarding the risks of material misstatement associated with the key programs as well as targeted audit procedures regarding the risk of material misstatement due to non-compliance with laws and regulations.
The components are grouped by the Company into three business segments (divisions): Airbus, Airbus Helicopters and Airbus Defence and Space. The audit of the three segments is performed jointly by EY and KPMG. The audits of the components in scope are performed in the countries these components are located in, either by EY or KPMG network firms or by both. In total the scope of our audit procedures covered 96% of consolidated revenue, 97% of consolidated total assets and 94% of consolidated EBIT. For the remaining entities we performed, amongst others, analytical procedures to corroborate that our risk assessment and scoping remained appropriate throughout the audit. We performed site visits to meet with division management and division teams, observe the division operations, discuss the group risk assessment and the risks of material misstatements. We reviewed and evaluated the adequacy of the deliverables from component auditors and reviewed key working papers for selected components to address the risks of material misstatement. We held planning meetings, key meetings required based on circumstances and we attended closing meetings with division management and division teams. During these meetings and calls, amongst others, the planning, procedures performed based on risk assessments, findings and observations were discussed and any further work deemed necessary by the primary or division or component team was then performed. By performing the audit work mentioned above at the components or divisions within the group, together with additional work at group level, we have been able to obtain sufficient and appropriate audit evidence about the group’s financial information to provide an opinion on the financial statements. Teaming and use of specialists We ensured that the audit teams at group level, division level and at in-scope component level included the appropriate skills and competences which are needed for the audit of the financial statements of this listed company in the aerospace industry. We involved several EY specialists to assist the audit team, including specialists from our tax, actuarial, treasury, business valuation and forensic departments. Our focus on climate risks and the energy transition Climate change and energy transition are high on the public agenda. Issues such as CO2 reduction impact financial reporting, as these issues entail risks for the business operation, the valuation of assets (stranded assets) and provisions or the sustainability of the business model and access to financial markets of companies with a larger CO2 footprint. The Company reported in Section 3.1.4 of the report of the board of directors how they addressed the climate related risks. In Section 6.2.2 of the report of the board of directors, the Company discloses its assessment, implementation plans and ambitions in connection to climate-related risks and the effects of energy transition. Note 3 of the financial statements describes the climate impacts on the financial performance. As part of our audit of the financial statements, we evaluated the extent to which climate-related risks and the effects of the energy transition and the Company’s implementation plans and ambitions in this regard, are taken into account in estimates and significant assumptions, as well as in the design of controls related to relevant estimates and assumptions. Furthermore, we read the report of the board of directors and considered whether there is any material inconsistency between the non-financial information and the financial statements. Our audit procedures to address the assessed climate risks and the effects of the energy transition did not result in a key audit matter. However, we describe the audit procedures responsive to the assessed risks such as the valuation of long-lived assets in the description of our audit approach for the key audit matter Recoverability of key program assets - long-lived assets.
Our focus on fraud and non-compliance with laws and regulations Our responsibility Although we are not responsible for preventing fraud or non-compliance and we cannot be expected to detect all fraud or non-compliance with all laws and regulations, it is our responsibility to obtain reasonable assurance that the financial statements, taken as a whole, are free from material misstatement, whether caused by fraud or error. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or override of internal control. Our audit response related to fraud risks We identified and assessed the risks of material misstatements of the financial statements due to fraud (also referred to as fraud risks or risks of fraud). During our audit, we obtained an understanding of the Company and its environment and the components of the system of internal control, including the risk assessment process and the board of directors’ process for responding to the risks of fraud and monitoring the system of internal control, as well as the outcomes. We also considered how the audit committee and the Ethics, Compliance and Sustainability Committee exercise oversight on behalf of the board of directors. We refer to Section 3.1 of the report of the board of directors for the risk assessment including the assessment of risk of fraud that might result in non-compliance with anti-corruption laws and regulation. We evaluated the design and relevant aspects of the system of internal control and in particular the fraud risk assessment, as well as the code of conduct, whistleblower procedures and incident registration. We evaluated the design and the implementation and, where considered appropriate in the context of our audit of the financial statements, tested the operating effectiveness of controls designed to mitigate fraud risks. As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to financial reporting fraud, misappropriation of assets and bribery and corruption in close co-operation with our forensic and legal specialists. We evaluated whether these factors indicate that a risk of material misstatement due to fraud or non- compliance with laws and regulations is present. For our audit response related to the risk of non-compliance with laws and regulations, including bribery and corruption, we refer to the next section. We incorporated elements of unpredictability in our audit. We also considered the outcome of our other audit procedures and evaluated whether any findings were indicative of fraud or non-compliance. We addressed the risks related to management override of controls, as this risk is present in all organizations. For these risks we have performed, amongst others, procedures regarding the evaluation of key accounting estimates for management bias that may present a risk of material misstatement due to fraud, in particular relating to important judgment areas and significant accounting estimates as disclosed in Note 5 Key Estimates and Judgements to the financial statements. We have also used data analytics to identify and address high-risk journal entries and evaluated the business rationale (or the lack thereof) of any significant extraordinary transactions, including those with related parties. In addition, we identified the following fraud risks: Risks related to management override of controls in the determination of margin at completion and recoverability of key program assets Fraud risk In our audit we gave significant attention to the judgments and assumptions made by management in the determination of the provision for onerous contracts, specifically the contract margin, the impairment of assets especially related to the recoverability of assets for key programs and the program-related provisions and depreciations, and considered whether the
Risks related to management override of controls in the determination of margin at completion and recoverability of key program assets judgments and assumptions indicated a management override of controls that may represent a risk of material misstatement due to fraud. Our audit approach We describe the audit procedures responsive to the assessed risk of fraud in the description of our audit approach for the key audit matters: Estimations related to revenues and costs at completion for the accounting of onerous contracts and material over time contracts Recoverability of key program assets - long-lived assets Risks of fraud in revenue recognition Fraud risk When identifying and assessing fraud risks, we presumed that there are risks of fraud in revenue recognition. In our audit we gave significant attention to the cut-off risk of cost incurred for performance obligations satisfied over time and the cut-off risk on transfer of control for performance obligations satisfied at a point in time. Our audit approach We describe the audit procedures responsive to the risks of fraud in revenue recognition in the description of our audit approach for the key audit matter Revenue recognition. We considered available information and made enquiries of relevant executives, directors (including internal audit, legal, compliance, human resources and division directors) and the board of directors. The fraud risks we identified, enquiries and other available information did not lead to specific indications of fraud or suspected fraud potentially material to the financial statements. Our audit response related to risks of non-compliance with laws and regulations We performed appropriate audit procedures regarding compliance with the provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. Furthermore, we assessed factors related to the risks of non-compliance with laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general industry experience, through discussions with the board of directors, reading minutes, reading of internal audit and compliance reports, and performing substantive tests of details of classes of transactions, account balances or disclosures. Specifically, we have evaluated that the disclosures in Note 38 of the financial statements reflect the current status of the most significant investigations regarding suspected breaches of law and regulations. We also evaluated the appropriateness of the contingent liability disclosure (Note 24) in the financial statements.
We identified the following risk of non-compliance and performed the following specific procedures: Risk of non-compliance with anti -bribery and anti -corruption legislation Risk A part of the Company’s business is characterized by competition for contracts with customers in high-risk countries and which are often directly or indirectly associated with governments. In obtaining these contracts, the Company uses commercial intermediaries in a number of territories. In identifying and assessing risks, taking into account the amounts paid, we considered the risks of non-compliance with anti-bribery and anti-corruption legislation in high-risk countries, including the use of commercial intermediaries, to be an inherent risk. We refer to the discussion of legal risks in Section 3.1.3 of the report of the board of directors. Our audit approach We performed amongst others the following audit procedures, directed specifically to this risk and designed and performed in conjunction with our in-house forensic specialists: We evaluated the tone set by management and the board of directors as well as the Company’s approach in managing this risk. We evaluated the overall control environment and evaluated the Company’s policies and anti- bribery and anti-corruption procedures. We made inquiries of the audit committee of the board of directors, as well as the Company’s internal and external legal advisors as to the areas of potential or suspected breaches of law and regulations relating to bribery, including the status of ongoing investigations. To consider the relevance and reliability of those inquiries, we corroborated information received with other available evidence, third parties and we reviewed related documentation. We tested the engagement process of commercial intermediaries, related contractual arrangements and payments to intermediaries. We maintained a high level of vigilance to possible indications of bribery and corruption whilst carrying out our other audit procedures. We tested journal entries and other transactions with unusual characteristics using amongst other data-analytics tools. We evaluated the activities and assessed the incident reporting system of Airbus and follow- up on the most relevant incidents. We also read and evaluated lawyers’ letters and correspondence with regulatory authorities and remained alert to any indication of (suspected) non-compliance throughout the audit. Finally, we obtained written representations that all known instances of non-compliance with laws and regulations have been disclosed to us. Our audit response related to going concern As disclosed in Note 35 Capital Management and Note 37 Financial Instruments to the financial statements, the financial statements have been prepared on a going concern basis. When preparing the financial statements, the board of directors made a specific assessment of the company’s ability to continue as a going concern and to continue its operations for at least the next twelve months.
We discussed and evaluated the specific assessment with the board of directors exercising professional judgment and maintaining professional skepticism. We considered whether the board of directors’ going concern assessment, based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, contains all relevant events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Based on our procedures performed, we did not identify material uncertainties about going concern for the next twelve months. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company to cease to continue as a going concern. Our key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements. We have communicated the key audit matters to the board of directors. The key audit matters are not a comprehensive reflection of all matters discussed. In comparison with previous year, the nature of our key audit matters did not change. Revenue recognition (Reference is made to the disclosures on Note 4 Material accounting policy information, Note 5 Key Estimates and Judgements, Note 11 Segment Information and Note 12 Revenues and Gross Margin of the financial statements) Risk The Group revenue recognition is complex due to its wide range of activities (including the sale of commercial aircraft and helicopters, sale of military aircraft and helicopters, sale of space systems, and services), its various types of contracts including non-standard clauses and the duration of some contracts including long-term development activities. When identifying and assessing fraud risks, we presume that there are risks of fraud in revenue recognition relating to cut-off of costs incurred related to over time contracts as well as the cut-off risk on deliveries related to point in time contracts. Furthermore, recognition of revenue includes significant management judgments and estimates including whether the contracts contain multiple performance obligations which should be accounted for separately and the determination of the most appropriate method for revenue recognition of these performance obligations. Recognition of revenues comprises the identification of potential variable considerations reducing the consideration received, allocation of these considerations to the different performance obligations and assessing if the performance obligations are satisfied over time or at a point in time.
Revenue recognition (Reference is made to the disclosures on Note 4 Material accounting policy information, Note 5 Key Estimates and Judgements, Note 11 Segment Information and Note 12 Revenues and Gross Margin of the financial statements) In particular, the amount of revenue and profit recognized in a year for performance obligations satisfied at a point in time, is dependent on the transfer of control. For performance obligations satisfied over time, this is dependent on the assessment of the stage of completion of performance obligations, as well as estimated total revenues and estimated total costs. The Company uses costs incurred as the method for determining stage of completion. Our audit approach Our audit procedures included, amongst others, evaluating the appropriateness of the Company’s accounting policies related to revenue recognition according to IFRS15 “Revenue from contracts with customers” and whether the accounting policies have been applied consistently or whether changes, if any, are appropriate in the circumstances. In addition, we evaluated the design and implementation and, where considered appropriate in the context of our audit of the financial statements, tested the operating effectiveness of controls related to the completeness, accuracy and timing of the revenue recognized. We selected individual revenue transactions to assess proper identification of the performance obligations in the contracts and allocation of the consideration amongst the performance obligation (such as the A400M contract and space systems contracts), the completeness and valuation of the variable considerations included in the transaction price (notably for A400M contract and space systems contracts) and the timing of transfer of control. In order to evaluate the significant judgments and estimates made by management, we read supporting contractual agreements, met with sales representatives and program teams to understand and validate the nature of the various obligations to be rendered under the contract and identify and discuss specific clauses that could prevent transfer of control (mostly for the sales of commercial aircraft), obtained evidence of transfer of control such as proof of delivery, tested the costs incurred, examined computation of costs progression and assessed the reasonableness of the estimated cost to complete included in the cost-to-come method for performance obligation recognized over time (notably for A400M development and space systems contracts). We also evaluated the potential impact of the uncertain geopolitical environment, and the Company’s assessment thereof. Regarding revenue recognition related to point in time contracts, we gave significant attention to the timing of the transfer of control (at delivery of the aircraft). Finally, we determined that appropriate disclosures were made in the financial statements.
Estimations related to revenues and costs at completion for the accounting of onerous contracts and material over time contracts (Reference is made to the disclosure on Note 4 Material Accounting Policies, Note 5 Key Estimates and Judgements, Note 12 Revenues and Gross Margin and Note 24 Provisions, Contingent Assets and Contingent Liabilities of the financial statements) Risk The Group has a large portfolio of long-term contracts for which it needs to assess the revenues and costs at completion in order to recognize a provision for onerous contract if needed, and to account for revenue related to material over time contracts. Provisions for onerous contracts (such as for the A400M contract and a number of space systems contracts) are recognized when it becomes probable that the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under the contract. The identification of onerous contracts and determination of the provisions for such contracts and revenue recognition of over time contracts require management’s significant judgment and assumptions associated with estimated revenue and costs at completion of the program, the achievement of technical milestones, production plan, performance guarantees as well as key risks such as expected outcome from ongoing negotiations with customers, penalties for delay or technical non-compliance. We also considered the potential risk of management override of controls or other inappropriate influence over the financial reporting process. Our audit approach Our audit procedures included, amongst others, evaluating the appropriateness of the Company’s accounting policies related to estimations for onerous contracts according to IAS 37 “Provisions, contingent liabilities and contingent assets” and whether the accounting policies have been applied consistently or whether changes, if any, are appropriate in the circumstances. We evaluated the design and implementation and, if considered appropriate in the context of our audit of the financial statements, tested the operating effectiveness of controls for accounting for onerous contracts and for the assessment of revenues and costs at completion. We also performed substantive procedures on individually significant programs. We evaluated the technical and business reviews of the key programs and the updated management’s assumptions in the identification and determination of, amongst others, the stage of completion of a project and estimates to complete for both revenue and costs. We tested the costs incurred to date and the accuracy or appropriateness, and completeness of the data used in developing these key estimates. We also evaluated management’s assessment of key contract risks and opportunities to determine whether these are appropriately reflected in the total estimated costs at completion, paid specific attention to technical and market developments including inflation risks and ongoing litigations, contractual obligations and negotiations with customers. We performed inquiries with the program teams and Heads of Programs in order to confirm our understanding of the program status and associated risks which may affect total estimated costs at completion.
Estimations related to revenues and costs at completion for the accounting of onerous contracts and material over time contracts (Reference is made to the disclosure on Note 4 Material Accounting Policies, Note 5 Key Estimates and Judgements, Note 12 Revenues and Gross Margin and Note 24 Provisions, Contingent Assets and Contingent Liabilities of the financial statements) We challenged management’s key assumptions by discussing and reviewing correspondence with customers, considered the accuracy or appropriateness, and consistency of similar estimates made in previous years and corroborated the key assumptions with the latest contractual information. Finally, we determined that appropriate disclosures were made in the financial statements. Recoverability of key program assets - long-lived assets (Reference is made to the disclosures on Note 4 Material Accounting Policies, Note 19 Intangible Assets and Note 20 Property, Plant and Equipment of the financial statements) Risk Recoverability of capitalized program development costs, other intangible assets and jigs and tools (long-lived assets) needs to be tested if there is an indicator of impairment or the reversal thereof. The main estimates to determine if an impairment of long-lived assets has to be recognized are the future cash flows and the appropriate discount rates. Due to the inherent uncertainty involved in forecasting future revenues and costs and interpreting contractual and commercial positions in determining impairments especially for material early-stage/multi-year programs, this is a key audit matter. We considered whether the key judgments and assumptions indicated a management override of controls that may represent a risk of material misstatement due to fraud. Inherent uncertainties also include that new or amended climate change related laws and regulations, political decisions and/or social context may result in the need to revise existing estimates. Climate change related estimation processes, measurement systems and reporting standards are expected to further develop over time, which also might result in changes in estimates. Our audit approach Our audit procedures included, amongst others, evaluating the appropriateness of the Company’s accounting policies related to estimations for recoverability of assets according to IAS 36 “Impairment of assets” and IAS 38 “Intangible assets” and evaluating whether the accounting policies have been applied consistently or whether changes, if any, are appropriate in the circumstances. We evaluated the design and implementation and, if considered appropriate in the context of our audit of the financial statements, tested the operating effectiveness of controls for identifying and recording impairments of long-lived assets.
Recoverability of key program assets - long-lived assets (Reference is made to the disclosures on Note 4 Material Accounting Policies, Note 19 Intangible Assets and Note 20 Property, Plant and Equipment of the financial statements) We evaluated the analysis performed by management regarding indicators of impairment, considering notably future expected orders and deliveries. If an indicator of impairment was identified, we evaluated the integrity of management’s impairment model. For long-lived assets tested for impairment, we evaluated management’s assumptions for the discount rate, the determination of the forecasted revenue (including the timing of expected deliveries or services and estimated selling price), cost to be incurred (including any contractual penalties or inflation impact), the expected gross margin, including performing sensitivity analysis to evaluate the impact of changing some assumptions such as the discount rate or key business parameters (as price, growth rate), and for the assumptions related to useful life of the program in the context of climate change. We also performed inquiry of the Program Controller and Head of Programs to confirm our understanding of the status of the program. Finally, we determined that appropriate disclosures were made in the financial statements. Accounting for derivative financial instruments and hedge ineffectiveness (Reference is made to Note 37 Financial Instruments of the financial statements) Risk The Company operates in a business environment that is exposed to currency volatility. A significant portion of the Company’s revenue is denominated in US dollars, while a major part of its costs is incurred in Euros and, to a lesser extent, in Pound Sterling. In response to these currency risks the Company uses financial instruments (currency forwards) to mitigate the exposure to changes in currency rates. The Company applies cash-flow hedge accounting. The accounting policy allows the Company to re-position the foreign currency hedges and avoid hedge disqualification when a hedged aircraft is postponed. This is conditioned by the Company’s ability to demonstrate the absence of a reduction in the number of hedged aircraft over the foreign currency exchange management hedging horizon. The magnitude of the Company’s hedge portfolio entails a “mark to market” valuation risk. Furthermore, potential changes in the delivery assumptions related to aircraft cancellations, customer defaults and aircraft postponement beyond the foreign currency exchange management hedging horizon could lead to disqualification of the associated cash-flow hedges and incorrect accounting.
Accounting for derivative financial instruments and hedge ineffectiveness (Reference is made to Note 37 Financial Instruments of the financial statements) Our audit approach Our audit procedures included, amongst others, evaluating the appropriateness of the Company’s accounting policies related to valuation of financial instruments and hedge accounting according to IFRS 9 “Financial Instruments” and IFRS 13 “Fair Value Measurement” and whether the accounting policies have been applied consistently or whether changes, if any, are appropriate in the circumstances. With the involvement of our Treasury specialists, we evaluated the design and implementation and if considered appropriate in the context of our audit of the financial statements, tested the operating effectiveness of controls around the Company’s central treasury system. We independently calculated the valuation of the treasury portfolio and evaluated the application of the cash flow hedge accounting rules. We obtained on a sample basis counterparty confirmation of the outstanding financial instruments to verify the existence and ownership of the hedge portfolio. Based on a sample of financial derivative instruments we evaluated whether the fair value of the financial instruments was correctly determined in line with market valuations. We verified the documentation of the hedged items supported by both the recoverable backlog and forecasted production rates over the foreign currency exchange management hedging horizon. We tested the highly probable assessment of future aircraft delivery as performed by the Company and challenged key management assumptions pertaining to order cancellation, airline default and aircraft rescheduling risks. Finally, we determined that appropriate disclosures were made in the financial statements. Report on other information included in the annual report The annual report contains other information in addition to the financial statements and our auditor’s report thereon. Based on the following procedures performed, we conclude that the other information: Is consistent with the financial statements and does not contain material misstatements Contains the information as required by Part 9 of Book 2 of the Dutch Civil Code for the management report (excluding the sustainability statement) and the other information as required by Part 9 of Book 2 of the Dutch Civil Code and as required by Sections 2:135b and 2:145 sub-Section 2 of the Dutch Civil Code for the remuneration report
We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing these procedures, we comply with the requirements of Part 9 of Book 2 and Section 2:135b sub-Section 7 of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of the financial statements. The board of directors is responsible for the preparation of the other information, including the management report in accordance with Part 9 of Book 2 of the Dutch Civil Code, other information as required by Part 9 of Book 2 of the Dutch Civil Code and for ensuring that the remuneration report is drawn up and published in accordance with Sections 2:135b and 2:145 sub-Section 2 of the Dutch Civil Code. Report on other legal and regulatory requirements and ESEF Engagement We were engaged by the general meeting as auditor of Airbus SE on 28 April 2016, as of the audit for the year 2016 and have operated as statutory auditor ever since that date. No prohibited non-audit services We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specific requirements regarding statutory audit of public-interest entities. European Single Electronic Reporting Format (ESEF) Airbus SE has prepared the annual report in ESEF. The requirements for this are set out in the Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic reporting format (hereinafter: the RTS on ESEF). In our opinion, the annual report, prepared in the XHTML format, including the partially marked-up consolidated financial statements, as included in the reporting package by Airbus SE, complies in all material respects with the RTS on ESEF. The board of directors is responsible for preparing the annual report, including the financial statements, in accordance with the RTS on ESEF, whereby the board of directors combines the various components into a single reporting package. Our responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package complies with the RTS on ESEF. We performed our examination in accordance with Dutch law, including Dutch Standard 3950N “Assurance- opdrachten inzake het voldoen aan de criteria voor het opstellen van een digitaal verantwoordingsdocument” (assurance engagements relating to compliance with criteria for digital reporting).
Our examination included amongst others: Obtaining an understanding of the Company’s financial reporting process, including the preparation of the reporting package Identifying and assessing the risks that the annual report does not comply in all material respects with the RTS on ESEF and designing and performing further assurance procedures responsive to those risks to provide a basis for our opinion, including: Obtaining the reporting package and performing validations to determine whether the reporting package containing the Inline XBRL instance document and the XBRL extension taxonomy files, has been prepared in accordance with the technical specifications as included in the RTS on ESEF Examining the information related to the consolidated financial statements in the reporting package to determine whether all required mark-ups have been applied and whether these are in accordance with the RTS on ESEF Description of responsibilities regarding the financial statements Responsibilities of the board of directors and the audit committee for the financial statements The board of directors is responsible for the preparation and fair presentation of the financial statements in accordance with EU-IFRSs and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, the board of directors is responsible for such internal control as it determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. As part of the preparation of the financial statements, the board of directors is responsible for assessing the Company’s ability to continue as a going concern. Based on the financial reporting framework mentioned, the board of directors should prepare the financial statements using the going concern basis of accounting unless the board of directors either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so. The board of directors should disclose events and circumstances that may cast significant doubt on the Company’s ability to continue as a going concern in the financial statements. The audit committee of the board of directors is responsible for overseeing the Company’s financial reporting process. Our responsibilities for the audit of the financial statements Our objective is to plan and perform the audit engagement in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion. Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material misstatements, whether due to fraud or error during our audit. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion.
We have exercised professional judgment and have maintained professional scepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. The Information in support of our opinion section above includes an informative summary of our responsibilities and the work performed as the basis for our opinion. Our audit further included amongst others: Performing audit procedures responsive to the risks identified, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of directors Evaluating the overall presentation, structure and content of the financial statements, including the disclosures Evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation Communication We communicate with the audit committee of the board of directors regarding, amongst other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit. In this respect we also submit an additional report to the audit committee of the board of directors in accordance with Article 11 of the EU Regulation on specific requirements regarding statutory audit of public-interest entities. The information included in this additional report is consistent with our audit opinion in this auditor’s report. We provide the audit committee of the board of directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the board of directors, we determine the key audit matters as those matters that were of most significance in the audit of the financial statements. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, not communicating the matter is in the public interest. Amsterdam, 19 February 2025 EY Accountants B.V. signed by N.M. Pul
Limited assurance report of the independent auditor on the Sustainability Statement To: the shareholders and the board of directors of Airbus SE Our conclusion We have performed a limited assurance engagement on the consolidated Sustainability Statement for 2024 of Airbus SE based in Amsterdam (hereinafter: the company) in section 6.1 Sustainability Statement of the accompanying report of the Board of Directors including the information incorporated in the Sustainability Statement by reference (hereinafter: the Sustainability Statement). Based on our procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not, in all material respects: prepared in accordance with the European Sustainability Reporting Standards (ESRS) as adopted by the European Commission and compliant with the double materiality assessment process carried out by the company to identify the information reported pursuant to the ESRS, as described in section 6.1.1.1 “BP: Basis for Preparation”; and compliant with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation). Our conclusion has been formed on the basis of the matters outlined in this limited assurance report. Basis for our conclusion We have performed our limited assurance engagement on the Sustainability Statement in accordance with Dutch law, including Dutch Standard 3810N, “Assurance-opdrachten inzake duurzaamheidsverslaggeving” (Assurance engagements relating to sustainability reporting), which is a specified Dutch standard that is based on the International Standard on Assurance Engagements (ISAE) 3000 (Revised), “Assurance engagements other than audits or reviews of historical financial information”. Our assurance engagement was aimed to obtain a limited level of assurance that the Sustainability Statement is free from material misstatements. The procedures vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Our responsibilities in this regard are further described in the section ‘Our responsibilities for the limited assurance engagement on the Sustainability Statement’ of our report. We are independent of Airbus SE in accordance with the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. This includes that we do not perform any activities that could result in a conflict of interest with our independent assurance engagement and we are not involved in the preparation of the Sustainability Statement, as doing so may compromise our independence. Furthermore, we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics for Professional Accountants). The ViO and VGBA are at least as demanding as the International code of ethics for professional accountants (including International independence standards) of the International Ethics Standards Board for Accountants (the IESBA Code) as relevant to limited assurance engagements on Sustainability Statements of public interest entities in the European Union.
We believe that the assurance evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Emphasis of matter The Sustainability Statement has been prepared in a context of new sustainability reporting standards, requiring entity-specific interpretations and addressing inherent measurement or evaluation uncertainties. In this context, we want to emphasize the following matters: Emphasis on the most significant uncertainties affecting the quantitative metrics and monetary amounts We draw attention to section 6.1.1.1.2 ”BP-2 Disclosures in relation to specific circumstances” in the Sustainability Statement that identifies the quantitative metrics and monetary amounts that are subject to a high level of measurement uncertainty and discloses information about the sources of measurement uncertainty and the assumptions, approximations and judgements the Company has made in measuring these in compliance with the ESRS. The comparability of sustainability information between entities and over time may be affected by the lack of historical sustainability information in accordance with the ESRS and by the absence of a uniform practice on which to draw, to evaluate and measure this information. This allows for the application of different, but acceptable, measurement techniques, especially in the initial years. Emphasis on the double materiality assessment process We draw attention to section 6.1.1.4 ”IRO: Impact, Risk and Opportunity management” in the Sustainability Statement. The double materiality assessment process requires the company to make key judgments and use thresholds and may also be impacted in time by sector-specific standards to be adopted. Therefore, the Sustainability Statement may not include every impact, risk and opportunity or additional entity-specific disclosure that each individual stakeholder (group) may consider important in its own particular assessment. This disclosure explains continuing improvements in the ongoing due diligence and double materiality assessment process, including robust engagement with affected stakeholders. Due diligence is an on- going practice that responds to and may trigger changes in the company’s strategy, business model, activities, business relationships, operating, sourcing and selling contexts. Our conclusion is not modified in respect of these matters. Comparative information not assured Sustainability information for the years before 2024 included in the Sustainability Statement, has not been part of this limited assurance engagement. Consequently, we do not provide any assurance on the comparative information and thereto related disclosures in the Sustainability Statement for the years before 2024. Our conclusion is not modified in respect of this matter. Limitation to the scope of our assurance engagement In reporting forward-looking information in accordance with the ESRS, the Board of Directors describes the underlying assumptions and methods of producing the information, as well as other factors that
provide evidence that the forward-looking information reflects the actual plans or decisions made by the company (actions). Forward-looking information relates to events and actions that have not yet occurred and may never occur. The actual outcome is likely to be different since anticipated events frequently do not occur as expected. We do not provide assurance on the achievability of forward- looking information. Our conclusion is not modified in respect of this matter. Responsibilities of the board of directors for the Sustainability Statement The board of directors is responsible for the preparation of the Sustainability Statement in accordance with the ESRS, including the double materiality assessment process carried out by the company as the basis for the Sustainability Statement and disclosure of material impacts, risks and opportunities in accordance with the ESRS. As part of the preparation of the Sustainability Statement, the board of directors is responsible for compliance with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation). The Board of Directors is also responsible for selecting and applying additional entity-specific disclosures to enable users to understand the company’s sustainability-related impacts, risks or opportunities and for determining that these additional entity-specific disclosures are suitable in the circumstances and in accordance with the ESRS. Furthermore, the board of directors is responsible for such internal control as it determines is necessary to enable the preparation of the Sustainability Statement that is free from material misstatement, whether due to fraud or error. The ethics, compliance & sustainability committee and audit committee of the board of directors are responsible for overseeing the sustainability reporting process including the double materiality assessment process carried out by the company. Our responsibilities for the limited assurance engagement on the Sustainability Statement Our responsibility is to plan and perform the limited assurance engagement in a manner that allows us to obtain sufficient and appropriate assurance evidence for our conclusion. We apply the applicable quality management requirements pursuant to the ‘Nadere voorschriften kwaliteitsmanagement’ (NV KM, regulations for quality management) and the International Standard on Quality Management (ISQM) 1, and accordingly maintain a comprehensive system of quality management including documented policies and procedures regarding compliance with ethical requirements, professional standards and other relevant legal and regulatory requirements. Our limited assurance engagement included amongst others: Performing inquiries and an analysis of the external environment and obtaining an understanding of relevant sustainability themes and issues, the characteristics of the company, its activities and the value chain and its key intangible resources in order to assess the double materiality assessment process carried out by the company as the basis for the Sustainability Statement and disclosure of all material sustainability-related impacts, risks and opportunities in accordance with the ESRS Obtaining through inquiries a general understanding of the internal control environment, the company’s processes for gathering and reporting entity-related and value chain information, the information systems and the company’s risk assessment process relevant to the preparation of the
Sustainability Statement and for identifying the company’s activities, determining eligible and aligned economic activities and prepare the disclosures provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation), without obtaining assurance information about the implementation or testing the operating effectiveness of controls Assessing the double materiality assessment process carried out by the company and identifying and assessing areas of the Sustainability Statement, including the disclosures provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation), where misleading or unbalanced information or material misstatements, whether due to fraud or error, are likely to arise (‘selected disclosures’). Designing and performing further assurance procedures aimed at assessing that the Sustainability Statement is free from material misstatements responsive to this risk analysis. Considering whether the description of the double materiality assessment process in the Sustainability Statement made by the Board of Directors appears consistent with the process carried out by the company Performing analytical review procedures on quantitative information in the Sustainability Statement, including consideration of data and trends Assessing whether the company’s methods for developing estimates are appropriate and have been consistently applied for selected disclosures. We considered data and trends, however our procedures did not include testing the data on which the estimates are based or separately developing our own estimates against which to evaluate the Board of Directors’ estimates Analyzing, on a limited sample basis, relevant internal and external documentation available to the company (including publicly available information or information from actors throughout its value chain) for selected disclosures Reading the other information in the annual report to identify material inconsistencies, if any, with the Sustainability Statement Considering whether the disclosures provided to address the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation) for each of the environmental objectives, reconcile with the underlying records of the company and are consistent or coherent with the Sustainability Statement, appear reasonable, in particular whether the eligible economic activities meet the cumulative conditions to qualify as aligned and whether the technical screening criteria are met, and whether the key performance indicators disclosures have been defined and calculated in accordance with the Taxonomy reference framework, and comply with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation), including the format in which the activities are presented Considering the overall presentation, structure and fundamental qualitative characteristics of information (relevance and faithful representation: complete, neutral and accurate) reported in the Sustainability Statement, including the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation) Considering, based on our limited assurance procedures and evaluation of the evidence obtained, whether the Sustainability Statement as a whole is free from material misstatements and prepared in accordance with the ESRS as adopted by the EU. Communication We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the assurance engagement and significant findings that we identify during our assurance engagement. Amsterdam, 19 February 2025 EY Accountants B.V.
Signed by N.M. Pul