Airbus 2015 Annual Report Download - page 52

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 20 l
Risk Factors
3 Legal Risks
Anti-Corruption Laws and Regulations
The Company seeks to comply with all applicable anti-bribery
laws and regulations and is fully committed to preventing
corruption in all operations conducted by the Company or by
third parties acting on its behalf. To that end, an anti-corruption
programme has been put in place to ensure adequate
identification, assessment, monitoring and control of corruption
risks. This programme oversees business development
activities and various other operations such as mergers and
acquisitions, financial investments or procurement activities.
The anti-corruption programme ensures a long-term view on
the evolution of the corruption risk and continuously updates
and, as the case may be, reinforces the Company controls
and procedures to prevent corruption while aiming at ensuring
business success. These controls are based on extensive due
diligence of the environment of the business operations and all
the stakeholders associated with it. All due diligence follows
a risk-based approach and is based on internal and external
information and expertise. Moreover, the anti-corruption
programme provides comprehensive targeted training and
communicates applicable policies to all Company employees.
Although the Company seeks to comply with all such laws and
regulations, even unintentional violations or a failure to comply
could result in administrative, civil or criminal liabilities including
significant fines and penalties, suspension or debarment of the
Company from government or non-government contracts for
some period of time, and could also have a significant adverse
effect on the reputation of the Company.
Export Controls Laws and Regulations
The export market is a significant market for the Company.
In addition, many of the products the Company designs and
manufactures for military use are considered to be of national
strategic interest. Consequently, the export of such products
outside of the jurisdictions in which they are produced may
be restricted or subject to licensing and export controls,
notably by the UK, France, Germany and Spain, where the
Company carries out its principal military activities as well as
by other countries where suppliers come from, notably, the
US. There can be no assurance (i)that the export controls to
which the Company is subject will not become more restrictive,
(ii)that new generations of the Company’s products will not
also be subject to similar or more stringent controls or (iii)that
geopolitical factors or changing international circumstances
will not make it impossible to obtain export licenses for one or
more clients or constrain the Company’s ability to perform under
previously signed contracts. Reduced access to military export
markets may have a significant adverse effect on the Company’s
business, results of operation and financial condition.
Operating worldwide, the Company must comply with several,
sometimes inconsistent, sets of sanctions laws and regulations
implemented by national/ regional authorities. Depending on
geopolitical considerations including national security interests
and foreign policy, new sanctions programmes may be set up
or the scope of existing ones may be widened, at any time,
immediately impacting the Company’s activities.
Although the Company seeks to comply with all such laws and
regulations, even unintentional violations or a failure to comply
could result in suspension of the Company’s export privileges,
or preclude the Company from bidding on certain government
contracts (even in the absence of a formal suspension or
debarment).
Furthermore, the Company’s ability to market new products and
enter new markets may be dependent on obtaining government
certifications and approvals in a timely manner.
Legal and Regulatory Proceedings
The Company is currently engaged in a number of active legal
and regulatory proceedings. See “—Information on Group
Activities — 1.1.8 Legal and Arbitration Proceedings”. The
Company expects to continue to incur time and expenses
associated with its defence, regardless of the outcome, and
this may divert the efforts and attention of management from
normal business operations. Although the Company is unable to
predict the outcome of these proceedings, it is possible that they
will result in the imposition of damages, fines or other remedies,
which could have a material effect on the Company’s business,
results of operation or financial condition. An unfavourable ruling
could also negatively impact the Company’s stock price and
reputation.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015