Report of the Board of Directors (Issued as of 17 February 2021) 1. General Overview / Contents 1. General Overview 03 2. Summary 2020 03 3. Share Capital and Stock Price Evolution 05 3.1 Shareholding and Voting Rights 05 3.2 Relationship with Principal Shareholders 08 3.3 Share Price Performance 2020 11 3.4 Dividend Policy 12 4. Corporate Governance 13 4.1 Management and Control 13 4.2 Conflict of Interest 19 4.3 Dutch Corporate Governance Code 20 4.4 Remuneration Report 21 4.5 Enterprise Risk Management System 34 4.6 Risk Factors 35 5. Financial Performance 49 5.1 IFRS Consolidated Financial Statements 49 5.2 Information on Airbus SE auditors 54 6. Non-Financial Information and other Corporate Activities 55 6.1 Non-Financial Information 55 6.2 Other Corporate Activities 89 7. Airbus Strategy 95 7.1 Commercial Leadership, Value Creation and Profitability 95 7.2 Top Company Objectives 2021 97 8. Financial Targets for 2021 98 02 Airbus SE / Report of the Board of Directors 2020 Airbus SE / Report of the Board of Directors 2020 1. General Overview / Dear Shareholders, This is the Report of the Board of Directors (the “Board Report”) on the activities of Airbus SE (together with its subsidiaries referred to as the “Company”) during the 2020 financial year, prepared in accordance with Dutch law. For further information regarding the Company’s business, finances, risk factors and corporate governance, please refer to the Company’s website: www.airbus.com. 1. General Overview Airbus pioneers sustainable aerospace for a safe and united a European leader in defence and security and one of the world’s world. The Company constantly innovates to provide efficient and leading space businesses. In helicopters, Airbus provides the technologically-advanced solutions in aerospace, defence, and most efficient civil and military rotorcraft solutions and services connected services. In commercial aircraft, Airbus offers modern worldwide. and fuel-efficient airliners and associated services. Airbus is also 2. Summary 2020 As a consequence of the pandemic, the Company needed to People revise its 2020 priorities, in particular in regards to the commercial aircraft activites. The revised Top Company Objectives (“TCOs”) Adapt our company and workforce to the crisis in a responsible reflected the essential targets that had to be achieved in order to manner that upholds the Company’s Values, while ensuring adapt successfully to the COVID-19 environment. The TCOs mirror Health and Safety and reinforcing our commitment to Ethics & the Company’s own business focus and its core pillars of safety, Compliance. quality, integrity, and compliance and focused on protecting The Company always: the core business by securing deliveries. The commitment to – keeps customers at the heart of what it does and collaborates Ethics & Compliance remained unchanged. The following revised to deliver value and reliability; TCOs were made available to employees: – serves those who rely on its products and services: safety and quality are non-negotiable; Industrial Performance – makes health and safety at work everyone’s priority; – promotes a speak up and listen up culture, always acting with Secure our Supply Chain, stabilise end to end planning and integrity and respect while enforcing the Company’s Code of achieve nominal flow on Single Aisle, transforming the ways of Conduct and Ethics & Compliance standards and principles; working to a Quality First approach (zero outstanding work). and – creates an inclusive culture where collaboration, empowerment, Customer continuous learning, and accountability are valued. 2020 was a year dominated by the pandemic, in particular for the Secure 2020 deliveries and manage the backlog in a volatile commercial aircraft activities. The Company showed resilience market. and adapted to the challenges of the new COVID-19 environment. Despite the situation, the Company achieved several important Financial Performance operational and commercial milestones. A selection of key announcements follows (the full list of announcements is available Contain cash and secure liquidity while taking action to improve at www.airbus.com/newsroom.html). competitiveness. Airbus SE / Report of the Board of Directors 2020 Airbus SE / Report of the Board of Directors 2020 03 2. Summary 2020 / 3. Share Capital and Stock Price Evolution / – Airbus delivered 566 commercial aircraft to 87 customers in known by its project name Quadriga, covers the delivery of 2020, in line with the production adaptation plan set out in 30 single-seater and 8 twin-seater Eurofighters. Three of the April 2020 in response to the COVID-19 pandemic. In order aircraft will be equipped with additional test installations as to overcome international travel restrictions, the Airbus team Instrumented Test Aircraft for the further development of the developed an innovative e-delivery solution which represented Eurofighter programme. more than 25% of the 2020 deliveries, allowing customers to – Airbus was awarded a contract for the development, supply receive their aircraft while minimising the need for their teams to and integration of 115 Eurofighter ESCAN Radars for the travel. In 2020, Airbus recorded a total of 383 new orders (268 German and Spanish Eurofighter fleet. It marks the largest net orders) showing continued customer endorsements in all order so far for the world’s most modern electronically scanned market segments. The A220 won 64 new orders, confirming it array radar, Captor-E. The contract signature followed the as the leading aircraft in its category. The A320 Family won 296 approval by both governments in the second half of 2020. new orders including 37 A321XLR. In the widebody segment, – The governments of France and Germany awarded Dassault Airbus won 23 new orders including two A330s and 21 A350s. Aviation, Airbus, together with their partners MTU Aero – Airbus delivered its first US-assembled A220 aircraft from Engines, Safran, MBDA and Thales, the initial framework Mobile, Alabama, underlining its role as a global aircraft contract (Phase 1A), which launches the demonstrator phase producer and heralding the arrival of a new era in Airbus aircraft for the Future Combat Air System (“FCAS”). This framework production in the United States. In 2015, Mobile became home contract covers a first period of 18 months and initiates work to Airbus’ first US-based commercial aircraft manufacturing on developing the demonstrators and maturing cutting-edge facility. Now celebrating five years of production, it has grown technologies, with the ambition to begin flight tests as soon from an initial workforce of around 250 staff producing as 2026. A320 Family aircraft, to 1,000 employees building both the – Airbus successfully completed the In-Orbit Commissioning A220 and A320 aircraft families. (“IOC”) of the European Space Agency’s Solar Orbiter – The A330-800 received joint Type Certification from spacecraft. Due to COVID-19 related restrictions, the the European Aviation Safety Agency (“EASA”) and the Federal commissioning presented a challenge to the teams who Aviation Administration (“FAA”). The A330-800, part of a true would normally work together in the office to complete the new-generation A330neo family, is the most efficient longest IOC process but instead met online to make sure the process range entry-level widebody and incorporates new Rolls-Royce was tackled quickly and efficiently. Trent 7000 engines, a new 3D-optimised wing and new – The Airbus-built European ocean satellite “Copernicus Sharklets using lighter composite materials. Sentinel-6 Michael Freilich” successfully begun its “Seeing- – Airbus Corporate Jets won its first orders for the ACJ the-Seas” mission. In November 2020 the satellite lifted-off TwoTwenty, totalling six aircraft following its launch. Entry from Space Launch Complex 4E at Vandenberg Air Force into service of the first ACJ TwoTwenty by Comlux Aviation is Base in California, USA. targeted for early 2023. – Airbus signed a contract with Intelsat to build two OneSat – Airbus Helicopters logged 289 gross orders (net: 268 orders) satellites operating in multiple frequency bands for Intelsat’s in a challenging market heavily impacted by the economic next-generation software-defined network. The satellites will consequences of the COVID-19 pandemic, reinforcing be based on Airbus’ OneSat product line, the latest generation the Division’s position on the civil and parapublic market. of fully flexible, in orbit reconfigurable, Software Defined Additionally, it delivered 300 rotorcraft worldwide despite the Satellites. OneSat is designed to deliver the optimal balance pandemic travel restrictions, resulting in a stable 48% share between performance, flexibility and competitive cost per bit, of the civil and parapublic market and thus allowing Airbus while maintaining Airbus’ unrivalled product reliability. Helicopters to maintain its market-leading position. – Airbus revealed three concepts for the world’s first zero- – Airbus Helicopters’ multi-role twin engine H160 received its emission commercial aircraft which could enter service by type certificate from the EASA, marking a new chapter for 2035. These concepts each represent a different approach the programme. to achieving zero-emission flight, exploring various technology – The five-bladed H145 was certified by both EASA and pathways and aerodynamic configurations in order to the US Federal Aviation Administration during 2020. The support the Company’s ambition of leading the way in the certification