| CEO statement | Executive summary | Our business overview | Our main report | Appendix | Contact us 60 CORPORATE & SOCIAL RESPONSIBILITY REPORT 2019 | CEO statement | Executive summary | Our business overview | Our main report | Appendix | Contact us 02 CONTENTS Our business overview This is MBDA’s tenth annual Corporate and Social CEO statement 03 Responsibility Report covering the calendar year 2019. Executive summary 04 Copyright statement Who we are 05 This document and the information contained herein is proprietary information of MBDA and shall Our Vision, Mission, Strategy & Values 06 not be disclosed or reproduced without the prior authorisation of MBDA UK Limited. © Copyright MBDA UK Limited 2020. ‘MBDA’ in the context of this document is defined Our main report as: MBDA France, MBDA UK, MBDA Italia, MBDA Deutschland, MBDA España and MBDA Inc. all forming MBDA. Our corporate and social focus – six principal domains 08 Report compiled and edited by Group Directorate Providing assurance to our customers and shareholders 09 Business Ethics and Corporate Responsibility. Please send questions by email to: Responsible business 27 [email protected] Ethics and compliance 31 Company giving and community engagement 35 Our people 40 Environmentally responsive 53 Appendix 57 | CEO statement | Executive summary | Our business overview | Our main report | Appendix | Contact us 03 CEO statement I am delighted and honoured to have joined MBDA, At the time of writing this in 2020, we are operating in June 2019, as the Chief Executive Officer. MBDA is in a time of extraordinary disruption and change, not only a world champion and a role model for with the spread of the COVID-19 pandemic around European cooperation; it is a Group who delivers the world. The health and safety of our people has “ sovereign capabilities to our armed forces and thus been and will remain our highest priority. Through ensuring the security of our nations and their allies. the commitment and efforts of our employees and We fulfil this mission responsibly, in a sustainable the backing of our governments and our“ suppliers, manner, and through our values of Commitment, we will take the necessary actions to continue to Passion, Innovation, Integrity and Team Spirit. support our local communities, our nations, our armed forces in a world where CSR has never been Corporate and Social Responsibility is at the heart more important than it is today. of our agenda and our Code of Ethics aims to establish integrity in the conduct of our activities, in our relations with people and in our environmental impacts. Outside of our Group, we continue to work with our local communities. In particular, we channel our support to the next generation of young people, inspiring them in the subjects of science, technology, engineering and mathematics. Our company giving Éric Béranger continues to help support a number of local and Excellence at your side national charities that work close to us, with their deserved causes. MBDA’s drive towards operational excellence has been fundamental Our skilled employees are inspired to add value both in establishing the future model at work and in the communities in which we operate of European cooperation, in developing and their hard work and passion is central to our new customer partnerships to ensure organisation. On their behalf, I invite you to read sovereign capabilities and in providing about our important accomplishments from 2019 the accessible global market with within the pages of this report. leading guided weapon systems solutions. Corporate Social Responsibility An organisation must conduct its business in a way that is ethical, legal and looks out for the welfare of its employees, customers and community. | CEO statement | Executive summary | Our business overview | Our main report | Appendix | Contact us 04 Executive summary With close to 12,000 employees across our The health and safety of our people remains our top We continue to see an upswing business, our responsibility as a global citizen begins priority. Our positive Health & Safety culture, risk with our people and extends to the communities mitigation strategies and strong focus on safety in employee interest in how we that we work with in Europe and beyond. have provided positive results – with a reduction in “ operate our business responsibly. our Recordable Accident Rate and zero We take responsibility for our business and in Our employees feel positive about pyrotechnical accidents maintained. 2019 we executed this through a number of key their achievements and paired with parameters: partnering with the right suppliers, As a company, we embrace the value of integrity the contribution our company growing our business through innovation, through our Code of Ethics, we apply this daily maintaining the highest quality standards and to our internal and external business activities. In makes to society and the wider exercising our own internal control systems 2019, we continued to train our current employees environment, this continues to delivered through risk assessments and internal and newcomers on how our company applies good drive a high level of employee “ audit checks. ethical conduct. engagement and feeling of pride in 2019 was a positive year in successfully integrating We carried on supporting a broad mix of deserving the company that we work for. over 1,150 permanent employees into our charitable causes central to our business and in workplace, whilst maintaining a high level of particular, military, education and local community – Helen Kersley-Allinson employee motivation and engagement. Recognition charities, we continue to commend their Group Head of Corporate Responsibility of our company excellence was celebrated through good work. a number of national accolades; our highlights As a European Leader, we continue to demonstrate being recognised in the UK by ‘The Sunday Times how we are contributing in our specific part to the Top 25 Best Big Companies to Work For’, in France major societal changes of today and tomorrow and as a Top Employer by the Top Employers Institute this is highlighted through the pages of our 10th and in Germany as one of the best employers in the Corporate & Social Responsibility Report. 2019 Focus Magazine. Playing our small but important part in shaping tomorrow’s world | CEO statement | Executive summary | Our business overview | Our main report | Appendix | Contact us 05 AIR BATTLEFIELD MARITIME GROUND BASED Who we are DOMINANCE ENGAGEMENT SUPERIORITY AIR DEFENCE With a significant presence in five European countries and within the USA, and with more than 90 armed forces customers in the world, MBDA is the European leader in missiles and missile systems. We are the only European group capable of designing and producing missiles and missile systems that correspond to the full range of current and future operational needs of the three armed forces: land, sea and air. In total, the Group offers a range of 45 missile systems and countermeasure products already in operational service and more than 15 others currently in development. MBDA is jointly held by three major shareholders: Airbus, BAE Systems and Leonardo. 2019 Financial results €3.7 Bn €3.6 Bn €17.5 Bn The European leader Revenue Order intake Order book and a global player *Legal agreement with the US DoD to undertake activities under a Special Security Agreement and to have confidentiality authorisations to conduct classified activities in the United States. | CEO statement | Executive summary | Our business overview | Our main report | Appendix | Contact us 06 Our Vision, Mission, Strategy & Values Our Vision Our Strategy Our Values To be the European Missile Systems 1 Champion and a Global player. Developing a partnering relationship and securing access to sovereign capabilities for our home nations. 2 INNOVATION COMMITMENT Promoting programme cooperation and Ensuring operational and Always delivering on our industrial consolidation in Europe. strategic advantage. promises. 3 Growing export sales and building up Our Mission strategic partnerships outside Europe with our home nations’ allies. To operate as a trusted part of the defence community in our home 4 TEAM SPIRIT PASSION nations and with their allies: providing Continuing development of a competitive Harnessing our diversity and Applying all our energy and decisive military capability to protect and high performance offering across all national security and enable collective purpose to deliver focus to every task, recognising missile and missile systems domains. competitive advantage to our role in providing mission strategic independence. all of our stakeholders. critical capabilities. 5 Delivering operational excellence and maintaining industry leadership. INTEGRITY A reliable and trusted partner with the highest professional and ethical standards. | CEO statement | Executive summary | Our business overview | Our main report | Appendix | Contact us 07 Our employees work as collaborative teams, contributing to the overall success of the Company ||| CEO statement ||| Executive summary |||OurOur business overview ||| Our main report ||| Appendix ||| Contact ususContact 08 Our corporate and social focus – six principal domains Providing Responsible Ethics and Company giving Our people Environmentally assurance to our business compliance and community PAGE 40 responsive customers and engagement PAGE 27 PAGE 31 We believe our people PAGE 57 shareholders As a