Bringing our world together
EADS ANNUAL REVIEW 2009

EADS at a GlanceBringing ourworld together
ANNUAL REPORT 2009
Annual Review
Registration Document
Financial Statements

CORPORATE RESPONSIBILITY & SUSTAINABILITYREPORT 2009

ContentsII

EADS GROUP

III

THE DIVISIONSIVMAJOR PROGRAMMES AND PRODUCTS

VI

THE YEAR 2009 IN REVIEWXIIEADS SHARESXIVEADS GLOBAL FOOTPRINTXVIEADS ORGANISATIONAL STRUCTURE

XVIII

EADS GROUP

Ten years ago, a group of companies, each with its own
rich heritage but with a shared vision, came together
to form EADS. Today, 120,000 people are working together at EADS to make that vision reality – setting new
standards in aerospace, bringing our world together.

2009

2008

2007

42,82243,265

39,123

Revenues€m

EBIT *

€m

- 322

2,830

52

Net Income 1)

€m

- 763

1,572

- 446

Earnings per share 1)€- 0.941.95- 0.56

Dividend per share

€

–

2)

0.20

0.12

Net cash position

€m

9,797

9,193

7,024

Order intake 3)€m45,847

98,648

136,799

Order book 3)€m389,067

400,248

339,532

119,506

118,349

116,493

Employees

READ MEEADS IN 20092009 RESULTS demonstrate the resilience of EADS’
underlying business, but were weighed down by provisions
related to programme delays.
REVENUES stood stable at € 42.8 billion, reﬂecting
strong deliveries across all businesses.
EBIT * of € -322 million was impacted by the A400M
provision and foreign exchange effects.
NET CASH reached € 9.8 billion, due to better than
expected free cash ﬂow.
ORDER BOOK stood at a robust € 389.1 billion.

* Unless otherwise indicated, EBIT ﬁgures presented in this report are Earnings Before Interest and Taxes, pre-goodwill impairment and exceptionals.
1)

EADS continues to use the term Net Income. It is identical with Proﬁt for the period attributable to equity holders of the parent as deﬁned by IFRS Rules.

2)

Subject to approval by EADS Annual General Meeting.

3)

Contributions from commercial aircraft activities to EADS order intake and order book based on list prices.

EA DS AT A GL A NCE 2009

III

THE DIVISIONSAIRBUS 1) is a leading aircraft manufacturer with activities
in commercial and military segments.

A330 -200F

(€ m)

2009

2008

Variation

Revenues

28,06728,991- 3%

EBIT *- 1,371

1,815–

Order intake

23,90485,493- 72%

Order book339,722357,824- 5%

Airbus Commercial is a market leader in the sector for civil
aircraft seating 100 or more passengers. It offers airlines
a competitive range of advanced, fuel-efﬁcient aircraft.
Airbus Military develops aircraft for military and security missions, including in-ﬂight refuelling and maritime surveillance.
Airbus Military is responsible for the A400M military transport
aircraft programme.

A400M

In number of aircraft

2009

2008

Variation

Airbus Commercial
Deliveries

498

483

+ 3%

Order book

3,488

3,715

- 6%

Airbus Military
Deliveries

16

19

- 16%

Order book

250

256

- 2%

EUROCOPTER is the world’s leading helicopter manufacturer
in the civil sector. It captures more than 50% of sales for civil andparapublic helicopters and has a strongly growing military business.

(€ m)

2009

2008

Variation

Revenues

4,570

4,486

+ 2%

EBIT *
EC175

1)

263

293

- 10%

Order intake

5,810

4,855

+ 20%

Order book

15,064

13,824+ 9%

Airbus is now reporting in two segments: Airbus Commercial and Airbus Military. The Airbus Commercial perimeter includes EFW and the completed aerostructures reorganisation. Airbus Military (formerly Military Transport Aircraft Division) includes all A400M activity. Eliminations are treated at the Division level.
2008 ﬁgures have been restated to reﬂect the changes, except for Augsburg site transferred from Defence & Security.

* Unless otherwise indicated, EBIT ﬁgures presented in this report are Earnings Before Interest and Taxes, pre-goodwill impairment and exceptionals.

IVPlease refer to www.eads.com for further information.

ASTRIUM is Europe’s preeminent space company and the thirdlargest worldwide. It is the leading European supplier of satellites,
launchers and space services and plays a key role in Europe’s
institutional and military space programmes.

ComSatBw

(€ m)

2009

2008

Variation

Revenues

4,799

4,289

+ 12%

261

234

+ 12%

EBIT *
Order intake

8,285

3,294

+ 152%

Order book

14,653

11,035+ 33%

DEFENCE & SECURITY is the main pole for EADS’ military andglobal security activities. Its wide range of products and services
include the Euroﬁghter combat aircraft, missile systems, integrated
defence and security solutions, defence electronics and related
services.

Euroﬁghter

(€ m)

2009

2008

Variation

Revenues 2)

5,363

5,668

- 5%

EBIT *

449

408

+ 10%

Order intake

7,959

5,287

+ 51%

Order book

18,796

17,032+ 10%

OTHER BUSINESSES 3) include turboprop manufacturer
ATR, aerostructure and aircraft seat business EADS Sogerma,
US operating unit EADS North America and 30% (consolidated
at equity) of DAHER-SOCATA.

ATR 72 - 600

(€ m)

2009

2008

Variation

Revenues

1,096

1,338

- 18%

EBIT *

21

43

- 51%

Order intake

969

1,712

- 43%

Order book

1,952

3,169

- 38%

2)

Augsburg site revenues of € 438 million are included in Defence & Security 2008 accounts. As of 2009, the Augsburg plant is integrated in Premium
AEROTEC, consolidated within Airbus accounts.

3)

As of 2009, the composition of Other Businesses differs compared to 2008: EFW is now consolidated within Airbus accounts (Other Businesses 2008
accounts have been adjusted by this transfer) and EADS holds 30% of DAHER-SOCATA, consolidated at equity within EADS accounts. Other Businesses
is not a stand-alone EADS Division.

* Unless otherwise indicated, EBIT ﬁgures presented in this report are Earnings Before Interest and Taxes, pre-goodwill impairment and exceptionals.

EA DS AT A GL A NCE 2009V

MAJOR PROGRAMMES AND PRODUCTS

AirbusAirbus Commercial
A380
Delivering the world’s most efﬁcient aircraft

A320 FAMILY
The world’s most popular aircraft

The new A380 double-decker is the most spacious andefﬁcient large aircraft in service today. The baseline aircraft has 525 seats and offers passengers an unrivalled
level of comfort. Conceived to bring airlines speciﬁc
economic and fuel-efﬁciency beneﬁts, it increases capacity on long haul routes and lowers costs per passenger.

The best selling family of commercial jets ever, thesingle-aisle A320 family responds to airlines’ needs for
maximum operational ﬂexibility and lower operating costs
on short and medium-haul routes. Airbus continues toinvest in the A320 family, introducing new technology
to maintain its competitive position.

A330 | A340
Providing versatility

A350 XWB
Responding to airline demand

The A330/A340 family has the versatility for either
regional or long-range routes. Its airframe comes insix different conﬁgurations, powered by two or four
engines. The twin-engine A330 is designed to generate
maximum revenue and reduce operating costs onregional routes, while the four-engine A340 provides
ﬂexibility on long-range ﬂights.

The A350 XWB (extra wide body) meets the demand
for a new generation of medium-capacity, long-range
aircraft. With a fuselage made largely of carbon ﬁbre,
its low weight cuts fuel costs and emissions. The wide
body gives passengers greater comfort on long journeys. Launched in 2006, the A350 XWB is currently
in development.

VI

Airbus Military
A400M
Designed for demanding operations
The A400M is designed to fulﬁl the most demanding operational requirements formilitary and humanitarian missions throughout the world. Built for versatility, it canperform both tactical and strategic missions, and can ﬂy at high or low speeds andhigh or low altitudes. Currently in development, the A400M performed its maiden
ﬂight in December 2009.

CN-235 | C-295
World-leading medium-weight transports

A330 MRTT
Innovative air-to-air refuelling

The CN-235 and C-295 are medium-weight, twinengine turboprop transport aircraft capable of operatingfrom short and unpaved runways. They are world leaders in their category, having been sold to air forces allover the world.

The A330 MRTT (Multi-Role Tanker Transport) is
the world’s leading air-to-air refuelling aircraft with anenormous basic fuel capacity and an innovative ﬂy-bywire refuelling boom. To date, the A330 MRTT has wonorders from Australia, Saudi Arabia, the United ArabEmirates and the UK. The A330 MRTT is a derivativeof the successful Airbus A330/A340 family.

EA DS AT A GL A NCE 2009

VII

MAJOR PROGRAMMES AND PRODUCTS

Astrium
EUROSTAR 3000
Carrying an enhanced payload

ARIANE 5
Putting the heaviest loads into orbit

Astrium’s geostationary telecommunications satellites
are based on the Eurostar family platforms (63 ordered
up to year end 2009), which have established a reputation
within the industry for exceptional reliability and in-orbit
performance. The series is continually being improved
through progressive integration of new technologies.
Eurostar 3000 is the latest version.

Ariane 5 is a heavy-lift satellite launcher, with a payload
capacity of up to ten tonnes. Since becoming operationalin 2005, it has proved reliable and ﬂexible, with 35
successful launches in succession at the end of 2009.
Work has already started on an Ariane enhancement
to increase payload capacity by 20%.

PARADIGM
Telecom service provider for armed forces
Paradigm, a wholly-owned Astrium subsidiary, is theworld’s leading commercial provider of military-grade
satellite communications. Paradigm has a contract worth£ 3.6 billion with the UK Ministry of Defence (MoD) forthe provision of military satellite communications services
to 2020. Astrium is prime contractor to Paradigm forthe design and build of the complete Skynet 5 system.

VIII

Defence & Security
MISSILE SYSTEMS
Delivering multi-national programmes
MBDA, a joint venture between EADS, BAE Systems and Finmecannica, is the missile systems group within EADSDefence & Security (DS), covering the whole range of solutions. It is prime contractor for multinational programmessuch as the Franco-British conventionally armed cruise missile, Storm Shadow/SCALP and a family of air defence
systems based on the Aster missile.

EUROFIGHTER
The most modern combat aircraftEuroﬁghter is the most modern
multi-role combat aircraft currently
in production. Optimised for complex
air-to-surface operations, it is network enabled and extremely agile.
It has a strong order book in Europe
and is competing in major export
campaigns. Deliveries passed the
200 mark in 2009.

UAVs
Monitoring threats

SECURITY SOLUTIONSManaging security response

In the ﬁeld of Unmanned Aerial Vehicles (UAVs), DS isseeking to develop a leading position based on its experience and projects to date. These include the Harfang
Medium Altitude Long Endurance (MALE) UAV systemdeveloped for the French Air Force and operated in
Afghanistan throughout 2009. DS is also developing incooperation with Northrop Grumman the Euro Hawk
high-altitude unmanned aerial system for signal intelligence.

Security threats often call for multiple responses fromdifferent services. The need to coordinate action has
driven demand for integrated security solutions. DS
delivers integrated systems for border security, maritime
security, crisis and emergency response, as well as
for protection of infrastructure and populations. DS
Professional Mobile Radio (PMR) solutions enablesecurity organisations to communicate effectively,
reliably and securely.

EA DS AT A GL A NCE 2009IX

MAJOR PROGRAMMES AND PRODUCTS

Eurocopter
EC225 | EC725
Effectively applying technology

NH90
Pioneering multi-role helicopter

The EC225/EC725 brings Eurocopter’s latest rotor
and all-weather technology to the 11-ton helicopter class.
The EC225 ﬂies for offshore oil and gas services, VIP
transport, and search and rescue services. Its military
twin, the EC725, is in service with the French Armyand Air Force.

The NH90 medium-weight, multi-role military helicopter
has two basic variants, the Tactical Transport Helicopter
and the NATO Frigate Helicopter. The programme isa co-development with Agusta-Westland and Fokker
Services within Nato Helicopter Industries (NHI). At theend of 2009, the NH90 backlog stood at 489 ﬁrm orders.

EC135 | EC145
Matching innovation to customer needs

ECUREUIL FAMILY
A high-performance helicopter

The EC135/EC145 light twin-engine, multi-mission
helicopters are made using the latest carbon ﬁbre technologies. They are designed to ensure outstanding
manoeuvrability, as well as an exceptionally quiet andsmooth ride. Variations have been designed speciﬁcallyfor VIP transport, and for rescue and police work.

The Ecureuil, which carries up to seven passengers,
is renowned for its high performance, safety and low
operating costs. Extensive use of composites, signiﬁcantload-carrying capacity and a roomy cabin give it the
ﬂexibility to be used both as a utility helicopter and forferrying passengers.

X

TIGER
Battleﬁeld efﬁciency
The Tiger is a medium-weight airto-air combat and ﬁre-support helicopter, ﬁtted with twin engines. It
includes four variants, based on thesame airframe, which have been ordered by France, Germany, Spain andAustralia. Total deliveries amounted
to 55 as of the end of 2009. The Tiger
has been deployed to Afghanistan by
the French Armed Forces, proving
unparalleled reliability and serviceability in the operational theatre.

Other Businesses

ATR
The answer for regional routes

EADS NORTH AMERICAATR is the world leader in the 50 to 74-seat turboprop
market. ATR’s family of high-wing, twin turboprop
aircraft are designed for optimal efﬁciency, operational
ﬂexibility and comfort. A family upgrade was launchedin October 2007 and both new models, the ATR 72-600
and the ATR 42-600, have begun ﬂight testing.

EADS North America is the North American operation of EADS. It is prime contractor for the US Army’s
UH-72A Light Utility Helicopter and together with its
parent company, EADS, contributes over US$ 11 billion
to the US economy annually.

A footprint in the US

EA DS AT A GL A NCE 2009

XI

THE YEAR 2009 IN REVIEW

30 JANUARY
Arianespace orders 35 Ariane 5 ECA launchers
Arianespace and Astrium sign a contract for the production of 35 Ariane 5 ECA launchers (designatedthe “PB” batch), worth more than € 4 billion. Astrium
is the sole prime contractor for Ariane 5.
19 JUNE
Airbus wins US$ 12.9 billion commitments
at Paris Air Show
30 January

Airbus announces commitments during the 2009 Paris
Air Show for 127 aircraft, valued at some US$ 12.9 billion.
These commitments include ﬁrm orders for 58 aircraft
worth almost US$ 6.4 billion, plus “Memoranda of Understanding” agreements for a further 69 aircraft totalling US$ 6.5 billion.
23 JUNE
Airbus delivers ﬁrst A320 assembled in China

19 JuneAirbus delivers the ﬁrst A320 aircraft assembled at its
Final Assembly Line China (FALC) in Tianjin. The aircraft will be leased to and operated by Sichuan Airlines.
The FALC is a joint venture between Airbus and aChinese consortium comprising Tianjin Free Trade
Zone (TJFTZ) and China Aviation Industry Corporation(AVIC). In total, 11 A319 and A320 aircraft leave theFALC in 2009, with a planned production ramp-up to
four aircraft per month by the end of 2011.
30 JUNE
EADS wins Saudi Arabia national security programme

23 JuneDefence & Security is awarded, as prime contractor, theborder security programme covering the full borders of
the Kingdom of Saudi Arabia. It is the largest contractever competed worldwide as a full solution.
31 JULY
Euroﬁghter nations order third production tranche
The governments of Germany, the United Kingdom,
Italy and Spain award the contract for Tranche 3a of
the Euroﬁghter programme. The contract gives the
go-ahead for production to start on a further 112
Euroﬁghter aircraft.

31 July

15 NOVEMBER
Airbus launches environmentally efﬁcient wingtips
Airbus launches its new “Sharklet” large wingtip devices,
designed to enhance the environmental efﬁciency andpayload-range performance of the A320 family. Sharklets
are expected to reduce fuel burn by at least 3.5% on
longer routes.

15 November

XII

30 NOVEMBERSES orders four new satellites from Astrium
Global satellite operator SES and Astrium announce
an order for four multi-mission satellites, worth morethan € 500 million. The new satellites are scheduled
for launch between 2012 and 2014.
4 DECEMBEREADS opens research centre in Bangalore
EADS Innovation Works announces the opening ofa branch in Bangalore. EADS Innovation Works India
will manage and broker research and technology (R&T)
projects for the EADS Business Units and the Corporate
R&T Organisation.

30 November

10 DECEMBERUS Army awards US$ 247 million Light Utility
Helicopter contract
The US Army awards a contract for the Lakota Light
Utility Helicopter (LUH) to EADS North America. The
contract, worth US$ 247.2 million, brings the totalorder to 178 UH-72A helicopters, which are used for
medical evacuation, personnel transport and multimission applications.

4 December

11 DECEMBER
A400M, Airbus Military’s new airlifter,takes to the skies
Airbus Military’s all-new A400M performs its maiden
ﬂight from Seville Airport in Spain. The ﬁrst new military airlifter of the 21st century completes a successful
ﬂight lasting 3 hours and 47 minutes. As planned, thesix-man crew explore the aircraft’s ﬂight envelope overa wide speed range. They also test lowering and raisingof the landing gear and high-lift devices at altitude.

10 December

17 DECEMBEREurocopter celebrates maiden ﬂight of its
new EC175 helicopter
The EC175, the latest member of the Eurocopter range,
performs its ofﬁcial maiden ﬂight in the skies above
Marignane, France. The 7-ton class helicopter has
been developed and manufactured in cooperation
with the China Aviation Industry Corp. (AVIC), a longstanding Eurocopter partner.

11 December

17 December

EA DS AT A GL A NCE 2009XIII

EADS SHARESIn 2009, EADS share price was mainly driven byconcerns about the economic crisis, outlook forcommercial aircraft deliveries, dollar weakness
and potential impacts associated with the A400M
programme.
Until March 2009, EADS’ stock performed below the sector, following
EADS’ proposal in January of a new approach for the A400M, whichraised concerns about the financial impact of this delay on Airbus’
proﬁtability. A recovery began at the end of March, supported by signalsof continued commitment from participating governments and signs ofa potential recovery in the economy and trafﬁc.
In September, the stock fell again on dollar weakness and negative newsﬂow relating to the A400M, the US tanker request for proposal and thepossibility of production cuts to adapt to demand. Early in December, theshare price recovered, driven by positive market sentiment, a favourable
dollar/euro trend and positive company news-ﬂow such as the A400M
first flight and United Airlines’ A350 XWB order announcement.
On 31 December, the EADS share price closed at € 14.09.
It was 17.1% higher than year end 2008.
In the same period the CAC 40 gained 22.3%.

PROFILE> 816,105,061
High in 2009 on Paris Stock Market: on 18 September > € 16.40
Low in 2009 on Paris Stock Market: on 30 March > € 8.47
ISIN code > NL0000235190
Number of shares as of 31 December 2009

Please refer to www.eads.com for further information.

XIVSHARE PRICE EVOLUTION
as of 31 December 2009 (close price)
EADS share price in €Base 100: 2 January 2007
140

35

120
30
100
25
80
20
60
15
40
10
20

5
0

0

J F M A M J J A S O N D
2007

2008

2009

EADS
CAC 40MSCI World Aero/Defence(in €, adjusted daily USD/€ rate)

SHAREHOLDER STRUCTURE
as of 31 December 200922.46% Sogeade (Lagardère and Frenchstate holding company Sogepa)
22.46% Daimler *5.48% SEPI (Spanish state holding company)
0.06% Shares held out of the contractual
partnership by the French state
49.15% Institutional, retail and employee ownership
0.39% Treasury shares(without economic or voting rights)* On 9 February 2007, Daimler reached an agreement with a consortium of private and public-sector
investors by which it effectively reduced its shareholding in EADS by 7.5%, while retaining its voting
rights over the entire 22.5% package of EADS shares.

EA DS AT A GL A NCE 2009

XV

EADS GLOBAL FOOTPRINT

50%

14%

1)

Europe1)

North America
2009

2009
Revenues
Sourcing

2)

Order bookOrder intake

21.4

Revenues

€ bn

6.1

€ bn

22.8

Sourcing 2)

€ bn

8.1

€ bn

122.1

Order book

€ bn

44.0

25.9

Order intake€ bn

113,456

Employees

€ bn

€ bn

Employees

EADS leverages the capabilities and competitive advantages existing in Europe’s well-established aerospace industry. Strong sourcing relationships havebeen built up over the years, particularly in EADS’
home countries and cover all areas and materials.
EADS is expanding its cooperation in Eastern Europe
and Russia. A strategic partnership in the ﬁeld of
aeronautics has been formed in Romania. Presencein Central Asia is growing, following a strategic partnership with Kazakhstan in the space and helicopter
domains.

1)
2)

of Group revenues
external spend only

XVI

1.4
3,383

EADS is a leading supplier and industrial partner inNorth America for defence and homeland security,commercial aviation, telecommunications and services.
It has been selected to provide major equipment programmes for the Army and the Coast Guard. EADS
contributes over US$ 11 billion to the US economy
annually through its network of suppliers and services,sourcing signiﬁcant – and growing – volumes of engines, systems and equipment in North America, andbuilding on the local aerospace industry’s expertise.

20%

9%

1)

Asia Paciﬁc

1)

Middle East
2009

2009

Revenues

€ bn

8.6

Revenues

€ bn

3.9

Sourcing 2)

€ bn

0.5

Sourcing 2)

€ bn

0.07

Order book

€ bn

102.9

Order book

€ bn

91.4

Order intake

€ bn

6.9

Order intake

€ bn

1,679

Employees

Employees

Asia Paciﬁc is a high priority region, where the Groupis partnering with local industry on a number of programmes, such as the EC175 helicopter, developedin cooperation with the Chinese industry or the KUH
helicopter development in cooperation with Korea. In
2009, 11 A320 aircraft left the newly created ﬁnal assembly line in Tianjin (China) for delivery to customers.
EADS is also reinforcing its presence in Japan and India.

7%

4.9
353

The Middle East is becoming a key market for EADS.
Divisions have consolidated their presence (DS,Eurocopter and Astrium) and signiﬁcant breakthroughs
have been made in new ﬁelds such as border surveillance or air-to-air refuelling aircraft. In commercial
aircraft, almost all the region’s major carriers havechosen to expand and modernise their ﬂeets with
Airbus. Middle East airlines are important customers
for the A380 and A350 XWB.

1)Rest of the world
2009
Revenues

€ bn

2.8

Sourcing 2)

€ bn

0.06

Order book

€ bn

28.6

Order intake€ bn

Employees

6.7

EADS is also focusing on other growth markets. Latin America, forexample, is a dynamic economic region offering numerous commercial
and industrial opportunities. EADS has developed a strategic industrial
partnership with Brazil in the space, defence and security domains andwon major successes in Mexico in 2009. EADS reinforced its presencein North Africa in 2009.

635

EA DS AT A GL A NCE 2009

XVII

EADS ORGANISATIONAL STRUCTURE as of 1 April 2010

GROUP FUNCTIONS

Chief Financial Ofﬁcer
Hans Peter Ring

Corporate Secretary
Pierre de Bausset
Board of Directors
Chairman:

Chief Strategy
and Marketing Ofﬁcer

Bodo Uebber

Marwan Lahoud

Legal Department
Peter Kleinschmidt

Louis Gallois
Rolf Bartke

Chief Executive Ofﬁcer

Human Resources

Louis Gallois

Jussi Itävuori

Corporate
Communications
Pierre Bayle

Dominique D’Hinnin
Juan Manuel Eguiagaray
Arnaud Lagardère

EADS North America

Compliance Ofﬁce

Sean O’Keefe

Pedro Montoya

Hermann-Josef Lamberti
Lakshmi N. Mittal

Political Affairs

Sir John Parker

Chief Technical Ofﬁcer
Jean Botti

Michel Pébereau
Wilfried Porth

François Desprairies (FR)Ditmar Staffelt (GE)Jacinto G. Palacios (SP)Executive Committee
MemberCoordination Spaceand Defence
François Auque

The Board actively shapes the Group’s mission and strategic priorities, which are implemented under
the leadership of the Chief Executive Ofﬁcer (CEO), who provides the impetus for major operational
initiatives. Group functions and the Divisions operate under the leadership of the CEO.

XVIIIDIVISIONSOPERATING COMPANIESATR
Stéphane Mayer *Premium AEROTEC 2)

Aerolia 2)

Hans Lonsinger

Christian Cornille

EADS Sogerma 2)

Elbe Flugzeugwerke 2)

Cédric GautierAndreas Sperl

AirbusThomas Enders (CEO)Airbus Military
Fabrice Brégier 1) Domingo(COO)
Ureña-Raso

Eurocopter
Lutz Bertling

Astrium

Astrium Satellites

Astrium Services

François Auque

Evert Dudok

Eric Béranger

Astrium SpaceTransportation
Alain Charmeau

Defence Electronics

Military Air Systems

Bernd Wenzler

Bernhard Gerwert

Defence andCommunications
Systems
Hervé Guillou

Defence & Security
Stefan Zoller
MBDA

Euroﬁghter

Antoine Bouvier

Enzo Casolini

The four Divisions – Airbus, Eurocopter, Astrium and Defence & Security – serve the speciﬁc needs oftheir respective customers, while the Group functions enhance the Company offering through informationexchange, technology sharing and working practice synergies.

1)

Responsible as Executive Committee member of a permanent Group-wide
mission to ensure EADS enhanced operational performance.

2)

100% EADS owned, management delegated to Airbus.

* Until 31 May 2010, successor to be nominated following GIE ATR Articles of Association.

EA DS AT A GL A NCE 2009XIX

EADS at a Glancewww.eads.com

Contents
MANAGEMENT & GOVERNANCE
02
04
06
08
10
12
14

Letter from the Chairman of the Board
The Board of Directors
Corporate Governance
Chief Executive Ofﬁcer’s Statement
The Executive Committee
Strategy: Heading for Vision 2020
Interview with the Chief Financial Ofﬁcer
Ten years of growth

18 BRINGING OUR WORLD TOGETHER
THE BUSINESS YEAR 2009
32
38
44
46
48

Markets and Perspectives
AirbusEurocopter
Astrium
Defence & Security

EADS PILLARS
52
54
56
58
60

Human Resources
Innovation
Eco-efﬁciency
Sourcing
Ethics and Compliance

62
64
66

Glossary
Addresses
Shareholder Information

LETTER FROM THE CHAIRMAN OF THE BOARD

This year, the EADS Group celebrates ten years of pioneering
European industrial integration. The Board is proud that EADS has
risen to a major position in its industry. It earned this rank because
Europe’s industrial and political leaders acted on a powerful visiona decade ago, and boldly joined forces in this strategic sector.
The consolidated industrial know-how of France, Germany, Spainand the UK resulted in products many of which allow EADS toclaim technological leadership today. The Group has recorded alarge number of outstanding achievements.
2009 was illustrative of the strength that comes from a great product portfolio. In the middle of one of the worst global economic
crises ever, EADS achieved stable revenues – a fact which gives
evidence of its remarkable resilience, well established over the pastten years of growth. However, the Group’s 2009 results also highlight areas where EADS must continue to improve, particularlyin the area of bringing new programmes through development toindustrial maturity.
The management and all the employees who have displayed unwavering dedication have put EADS at the forefront of the world’s
aerospace and defence industry over the past decade. While they
have grown the business, they have relentlessly adapted its structure and cost base to overcome hurdles such as the tide of an everstronger euro. Its unique industrial set-up requires EADS to continue adapting and to develop painstakingly a long-term effective protection against currency risks to ensure its ﬁnancial sustainability.

2

MANAGEMENT & GOVERNANCE> Letter from the Chairman of the Board“ The Board of Directors is committed
to supporting management inlaying a solid foundation for thecompany’s second decade.”
Bodo Uebber

The Board of Directors is committed to supporting management
in laying a solid foundation for the company’s second decade. In
particular, we support Vision 2020, and management’s strategy ofbalancing EADS’ portfolio, of seeking future business opportunities, and its efforts to adjust its model to a volatile and changing
environment.
The Group’s stability will also depend on the solidity of its defence
and institutional business. Together with our governmental customers, EADS sees an opportunity and a necessity to lay out realistic
and transparent objectives for future contracts. As missions become
more demanding and systems more efﬁcient, technological advancealso entails more complexity: both industry and customers mustensure that opportunities and risks are mastered, and that jointly
deﬁned targets are met – for the beneﬁt of both sides.
The events of 2009 encouraged the Board to support the build-up
of an Enterprise Risk Management organisation which will enable
EADS to better map and manage risks in the development andmanufacturing of products. Here again, the beneﬁts should accrue
to all stakeholders: internally, but also to customers, shareholders
and suppliers. In addition, the Compliance programme – launcheda year earlier – has been further strengthened.
The Board evaluation – conducted with the support of a reputable
independent consultant – underlined the ability of the Board to effectively play its role in supervising and supporting management.

Finally, the Board reviewed its own remuneration, and that of the
top executives. It found EADS’ remuneration policy to be reasonable
and compliant with good governance principles. In 2010, we will
focus on enhancing the compensation system and better aligningincentives with the longer-term goals of the company.
Despite the fact that the commercial aviation sector is showing
signs of recovery, the Board shares management’s conviction that it
is important to stay vigilant in 2010. Due to the loss incurred lastyear, the Board of Directors recommended paying no dividend for2009. It is the ﬁrst time ever in EADS’ history such a decision has
been made, and the Board intends to resume the payment of a dividend as soon as more favourable conditions allow.
I ﬁrmly believe our cash-conscious approach is in the best interestof the shareholders and safeguards their long-term value in EADS.
Rest assured, management and the Board remain committed to thecompany’s success by vigorously pursuing the targets laid out in
Vision 2020.

Bodo Uebber
Chairman of the Board

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3

THE BOARD OF DIRECTORSLOUIS GALLOIS (66)
Chief Executive Ofﬁcer of EADSBODO UEBBER (50)
Chairman of the Board of Directors of EADS”EADS has grown into a leader, andit has to manage a multitude of programmes and issues in a tough environment. This requires close attention
to resource allocation, tight processes
and quality of controls to attain sustainable proﬁtability and stability.””I want to foster a sense of unityand pride to the people of EADS.
Transformation and integration
are key to a promising future.”

LAKSHMI N. MITTAL (59)
Chairman and Chief Executive Ofﬁcer
of Arcelor Mittal”Based on my experience, I pay particular attention to EADS’ cost structure, its competitiveness, executionof projects on time and within budget
and to sound controls.”

4

MICHEL PÉBEREAU (68)
Chairman of BNP Paribas”So far, EADS has remarkably
navigated the global ﬁnancial
crisis, and has been very open
to the Board’s guidance. The
management is level-headed in
the face of testing challenges.”

ROLF BARTKE (63)Chairman of Keiper-Recaro-Group”My expertise is operational excellence and efﬁciency. This experience is an asset at a time when thevalue chain is strained, customers
reposition themselves, and suppliers are vulnerable.”

MANAGEMENT & GOVERNANCE> The Board of Directors

For more detailed information, please refer to the
Corporate Governance section in the REGISTRATION DOCUMENT 2009.

HERMANN-JOSEF LAMBERTI (54)Member of the Management Boardof Deutsche Bank AG”I pay continuous attention to risk
management and true measuresof sustainable performance. As
Chairman of the Audit Committee,
I will continue to focus on ﬁnancial
strength and stability.”

SIR JOHN PARKER (67)
Chairman of National Grid

”This board’s duty is to unlock thewealth of talent and value thatappears to have been overshadowed by current extraordinary
circumstances. The Remuneration
and Nomination Committee plays
an important role in this.”

JUAN MANUELEGUIAGARAY UCELAY (64)Director of Studies at
Fundación Alternativas”Economic cycles and their impact
on public budgets mean EADS
must adapt its business model toa changing industry paradigm.
I will support this adaptation.”

DOMINIQUE D’HINNIN (50)
Co-Managing Partner of Lagardère SCA

ARNAUD LAGARDÈRE (49)Managing Partner of Lagardère SCA”EADS has to face several important
challenges in a competitive environment still affected by the worldwide
economic slowdown. As Board member, I will dedicate the means at mydisposal in order to support EADS
in achieving its objectives such as
lasting proﬁtable performance andmaintaining its European identity.”

WILFRIED PORTH (51)
Member of the Boardof Management of Daimler AG”Based on my broad international
industrial experience I give
EADS the beneﬁt of an additional
operational vision and different
insights on social relations.””I will scrutinise the performance of
EADS through the prism of value
creation and promote development
options that optimise the long-termvalue to shareholders.”

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5CORPORATE GOVERNANCE

BOARD MEETINGSThe Board made several high-proﬁle appointments during 2009.
Rüdiger Grube, the former Chairman, resigned in April 2009
and was replaced by Bodo Uebber. Additionally, Mr Grube was
replaced as a director by Wilfried Porth, who was elected at the
May 2009 Annual General Meeting. The Board made two important divisional appointments. In February, Domingo Ureña-Rasobecame Head of Airbus Military and, in November, Sean O’Keefe
became Head of EADS North America.

Board discussions focused on major
strategic and operational issues, including
the Vision 2020 roadmap for sustainablegrowth and the delayed A400M militarytransport project.

The delayed A400M military transport project was a recurring
topic, discussed at seven Board meetings. The Board also debatedGroup strategy, major business topics such as the new A350 XWB
aircraft and the Saudi Border Surveillance programme, the development of other major programmes, the progress of Vision 2020’s
strategic goals, approval of the operational plan, and the Group’s
ﬁnancial results. Control was an area of focus, including Enterprise
Risk Management (ERM), the Corporate Audit Plan and the Compliance Organisation’s development. Human resources topics werealso high on the agenda, especially compensation policy, management
qualiﬁcation, remuneration, and the issue of attracting, retaining
and developing individuals with high potential. Moreover, theBoard tasked management with increasing efforts to promote
employee diversity.
The Board of Directors met 11 times, with an 84% average attendance rate. Between meetings, the Chief Executive Ofﬁcer kept it
informed through business reports, strategic and operational plans.
ASSESSMENT OF THE BOARD’S PERFORMANCE

Independent consultants reviewed the Board’s effectiveness in
February 2010, concluding that its members were generally satisﬁedwith their ability to work as a team and to tackle relevant matters
openly in the best interest of the Group.
The review identiﬁed scope for making Board documentation more
tailored to supporting decision making. Also, operational matters,
especially the A400M, were said to preoccupy Directors at the expense of longer term questions. Recognising this, the Board devoted
a full-day meeting to strategy in 2009, including an assessment of
Vision 2020’s goals in a changing environment.
Overall, the Board considers it assembles a very international, diverse and relevant set of skills, with strong ﬁnance competencies.

6

MANAGEMENT & GOVERNANCE> Corporate Governance

THE AUDIT COMMITTEE

In 2009, the Audit Committee reviewed the 2008 results as wellas the ﬁrst half-year results for 2009, the quarterly ﬁnancial reviews,
and topics such as ERM, compliance and internal audit matters. It
met ﬁve times, with a 90% average attendance rate.
THE REMUNERATION AND NOMINATION COMMITTEECOMMITTEES OF
THE BOARD OF DIRECTORS

AUDIT COMMITTEEThe Remuneration and Nomination Committee made recommendations to the Board for major appointments and reviewing topics
ranging from compensation policy to succession planning. Following an early 2010 study, the Committee recommended that Executives’ compensation structures should be adjusted to better support
EADS’ objectives of sustainability and proﬁtability. It met fourtimes, with a 94% average attendance rate.

Hermann-Josef Lamberti (Chairman)

THE STRATEGIC COMMITTEEREMUNERATION ANDNOMINATION COMMITTEEThe Strategic Committee monitored the Group’s major strategic
initiatives, made recommendations to the Board of Directors on
mergers and acquisitions, and reviewed EADS’ research and technology policy. The Committee, which is chaired by Bodo Uebber,includes Louis Gallois. The Committee met twice, with an 80%
average attendance rate.

Rolf Bartke
Dominique D’Hinnin
Sir John Parker

Sir John Parker (Chairman)
Dominique D’Hinnin
Hermann-Josef Lamberti
Wilfried Porth

SHAREHOLDER STRUCTURE
as of 31 December 2009

STRATEGIC COMMITTEE

22.46% Sogeade (Lagardère and Frenchstate holding company Sogepa)

Bodo Uebber (Chairman)

22.46% Daimler *Louis Gallois

5.48% SEPI (Spanish state holding company)

Arnaud Lagardère

0.06% Shares held out of the contractual
partnership by the French state
49.12% Institutional, retail andemployee ownershipMichel Pébereau
Wilfried Porth

0.39% Treasury shares(without economic or voting rights)* On 9 February 2007, Daimler reached an agreement with a consortium of private andpublic-sector investors by which it effectively reduced its shareholding in EADS by 7.5%,
while retaining its voting rights over the entire 22.5% package of EADS shares.

Registration Document 2009
FINANCIAL STATEMENTS

For more detailed information, pleaserefer to the Corporate Governancesection at www.eads.com or to the
REGISTRATION DOCUMENT 2009

EA DS A NNUA L R E VIE W 2 0 0 9

7

CHIEF EXECUTIVE OFFICER’S STATEMENTEADS was created to draw together the strategic resources of major
European nations, merging fragmented but capable aerospace anddefence assets into a powerful global contender. Ten years on, EADS
is tangibly asserting Europe’s industrial signiﬁcance; its products
have made their mark globally, lifting the Group to leadership
position in every segment.
In only one decade:• We grew our revenues by 77%.
• We invested over € 22 billion in self-ﬁnanced researchand development.
• We created more than 15,000 high-tech posts.
There are countless achievements to be proud of in this successstory: Airbus climbed to become the top aircraft manufacturer;
Eurocopter strengthened its position as leader of the global commercial and military helicopter market; Astrium broke records
with Ariane 5 and with satellite sales; Defence & Security delivered
more than 200 Euroﬁghter combat jets and leads the dynamic
border security business worldwide.
Yet, it hasn’t all been plain sailing. Vigorous expansion while
pushing the boundaries of technology has brought severe trials,
such as experienced with the A380 and A400M. EADS has turned
these into lessons learned and is better armed to master complexity, and it has made programme and risk management top priorities.
Balanced integration takes time, and we have made substantial
progress in this regard: the merger of the Airbus Military segment
into Airbus is one of the latest steps, as well as the coordinationof the Defence & Security and Astrium Divisions.

8

MANAGEMENT & GOVERNANCE> Chief Executive Officer’s Statement“ Vision 2020 continues to take shape.
Since 2007, the initial broad concept
has framed strategic discussions, hastranslated into annual priorities andhas informed operative planning.”
Louis Gallois

The year 2009, in particular, was a test of strength and resiliencefor EADS. In the midst of a dire economic crisis, the Group’s business performance demonstrates watchfulness and agility. Consider
our order book and delivery management: Airbus deserves special
recognition for its “Watchtower” approach to improve market
visibility with partners and customers. Its speedy implementation
created ﬂexibility to reallocate more than 600 aircraft positions in2008 and 2009. We also secured record deliveries of 498 aircraft in2009. Thankfully, the market is showing signs of recovery, whichis good given the importance of volume for proﬁtability.
Eurocopter worked tirelessly to counterbalance the signiﬁcant dip
in the commercial sector. The result was impressive: 558 delivered
helicopters and a record year for military helicopters. Performancein our governmental and institutional business demonstrates theresults of careful nurturing: Defence & Security’s proﬁtability atnearly 8.5 percent is among the benchmarks of prime contractors
in Europe, while Astrium had the best year in its history.
We were pleased to witness the maiden ﬂights of the EC175
helicopter and the A400M military transport aircraft. I deeply
appreciate the support of the customer nations for the A400M
which – together with an additional signiﬁcant ﬁnancial effort by
EADS – put this important programme back on track. We shalldeliver to them the world’s “best-in-class” airlift capability toperform successfully their vital missions.
Vision 2020 continues to take shape. Since 2007, the initial broadconcept has framed strategic discussions, has translated into annual
priorities and has informed operative planning. Our targets, whether
collective or individual, all derive from Vision 2020.

They include, to name but a few: a better balance of activities tomitigate commercial cycles and dollar pressure; development ofservices and security activities; focus on core businesses; extensionof our footprint worldwide; preparation of tomorrow’s programmes; rigorous promotion of eco-efﬁciency as a driver of proﬁtable innovation.
EADS must continuously adapt itself and improve performance,
optimise working processes, better identify and manage risks. Power8,
Power8 Plus and Future EADS are the templates for productivity
and transformation. They are complemented by prudent cash management to protect manoeuvrability.
United by common values, our 120,000 talented employees,
whose dedication is second-to-none, are making it happen. I am
determined to foster the link between the management and theworkforce, to address expectations on people management.
This is the roadmap to fuel the sense of drive and ambition at
EADS and to satisfy the interests of our shareholders. Clearly,
EADS was the right strategy for Europe. Without EADS, Europe
would not be in a position to compete with the world’s best in our
industry. We should bear that in mind as we look to the continent’s
future industrial policy, and jointly gear-up for future growth.

Louis Gallois
Chief Executive Ofﬁcer

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9

THE EXECUTIVE COMMITTEEfrom left to right

RALPH CROSBY > Head of EADS North America
SEAN O’KEEFE succeeded Ralph Crosby
on 1 November 2009.
The Head of EADS North America has
strategic and operational responsibilities
in the US market.
FRANÇOIS AUQUE > Head of Astrium, Coordination Space and Defence
Mr Auque is responsible for the success of Astrium and coordinates between
the Group’s defence, security and space activities to foster synergies.

STEFAN ZOLLER > Head of Defence & Security
Mr Zoller is in charge of driving successful business performanceat the Defence & Security Division while preparing the Division’s future.
FABRICE BRÉGIER > Airbus Chief Operating Officer (COO)and Head of EADS Operational Performance
Mr Brégier manages Airbus’ operations and Power8, and has the
additional permanent mission of enhancing operational performanceacross the EADS Group.
HANS PETER RING > Chief Financial Officer (CFO)JEAN BOTTI > Chief Technical Officer (CTO)
Mr Botti’s mission is to steer Group Research and Technology activities,
to secure the right technologies and manufacturing tools for tomorrow.

10

Mr Ring’s mission is to ensure successful management of EADS’
ﬁnancial resources to support operational performance and prepare
the Group’s future.

For more detailed information, please refer to the
Corporate Governance section in the REGISTRATION DOCUMENT 2009.

MANAGEMENT & GOVERNANCE> The Executive Committee

THOMAS ENDERS > Head of Airbus

MARWAN LAHOUD > Chief Strategy and Marketing Officer

Mr Enders is responsible for the overall success of all Airbus activities,
commercial and military, driving ongoing and development programmes
and strategic initiatives.

Mr Lahoud is responsible for elaboration and execution of the Group’s
strategy including merger and acquisition operations, as well as the Group’s
international development and marketing.

LOUIS GALLOIS > Chief Executive Officer (CEO)DOMINGO UREÑA-RASO > Head of Airbus Military

Mr Gallois is responsible for the overall successful management of EADSGroup business and operations. He chairs the Executive Committee.

Mr Ureña-Raso is in charge of Airbus Military, responsible notably
for the A400M programme. He reports to the Head of Airbus andis member of the EADS Executive Committee.

LUTZ BERTLING > Head of Eurocopter
Mr Bertling’s mission is to strengthen Eurocopter’s leading position and delivercommercial success and customer satisfaction on all helicopter programmes.

JUSSI ITÄVUORI > Head of Human Resources
Mr Itävuori’s role is to ensure that the EADS workforce is efﬁciently
managed, engaged and competent to be able to master present andfuture challenges.
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11

STRATEGY

Heading for Vision 2020
Recent challenges have conﬁrmed thevalidity of EADS’ roadmap for the future,
Vision 2020. In particular, the economic
downturn has highlighted the importancefor EADS to become more balanced, in
terms of portfolio and international presence, in order to be even more resilient
to business cycles and currency risks.

SHARING LONG-TERM OBJECTIVESEADS’ strategic roadmap Vision 2020 received further endorsementin the context of the global economic crisis. This Group-wide action
plan aims at increasing the company’s resilience and securing continued leadership, through focused growth along three axes:>A better balance between commercial aircraft and our otheractivities. Commercial aircraft is a capital intensive and cyclicalbusiness. In 2009, it represented 62% of Group revenues. Our
goal is to reach a 50/50 balance and a more stable long-term cash
ﬂow performance through complementary investment cycles.

>A better balance between platforms and services. With astrong customer base for advanced platforms and systems, EADS
is in a position to develop high-value related services, which are
not only highly proﬁtable but also counter-cyclical. Our target is
to raise the service share of revenues from 12% in 2009 to 25%
by 2020.

> A better balance between our European roots and our
global footprint. To gain access to new markets and technology resources, as well as low-cost and multi-currency-basedsourcing, we need to expand our international footprint. Our
target is to have 20% of employees and 40% of sourcing outside Europe.

12

MANAGEMENT & GOVERNANCE> Strategy

Furthermore, we aim to become truly eco-efﬁcient. We are determined to use eco-efﬁciency as a driver for innovation.

EADS PRIORITIES 2010

The ambitious targets set out in Vision 2020 call for highly engaged
people, innovating beyond technologies. EADS will therefore
continue to deliver the best of European know-how, promoting
innovation culture, greater mobility and international diversity
within its workforce.

1. Improve the ENGAGEMENT of EADS employees
by responding to their expectations on personal development, people management and common values;
reinforce diversity, in particular gender diversity at
every level.

VISION AT WORKThe drive to implement Vision 2020 achieved signiﬁcant milestones in 2009:>Strengthening the integration of our core business, we integrated military transport and commercial aircraft into Airbus.
Structural links were implemented between Astrium andDefence & Security Divisions. As a ﬁrst result, an Electronics
Centre of Excellence for space and defence was created to exploit
synergies involving 2,500 people at 11 sites in ﬁve countries.

>Working towards better efﬁciency, we continued to improveorganisation and deliver savings across the Group. The Future
EADS integration and cost-saving programme advanced, forexample, through creation of new Group-wide shared services
for general procurement or facility management.

>Reinforcing programme management, we promoted best practices across the Group, drawing lessons from A380 and A400M
programmes. Through comprehensive negotiations with launchcustomers, a new basis was found for the A400M programme.

>Continuing globalisation, we achieved ﬁrst deliveries of A320
aircraft from the ﬁnal assembly line in China. In the Middle
East, we won a major contract to secure Saudi Arabia’s borders.
In the US, success of the Light Utility Helicopter programme
continued with a follow-on order for 51 aircraft.

>Expanding services, Eurocopter won major orders. Early in2010, Astrium signed a two-year extension to the Skynet 5
services contract with the UK Ministry of Defence. Overall,
EADS services grew 20% in 2009 organically, reaching 12%of the Group’s revenues.

>Building employee engagement, we launched a multi-year
process across the entire EADS workforce. A ﬁrst employee survey was performed and global as well as local results were communicated to all 4,000 managers. Improvement plans involving
feedback from all 120,000 employees were developed throughout the Group.

2. Give the top priority to CASH MANAGEMENT
to protect the Group’s ﬁnancial manoeuvrability.
3. Achieve the SAVINGS targeted by improvement
and efﬁciency programmes at Division level as well as
those set by Future EADS and foster integration.
4. Deliver and secure KEY PROGRAMMES –A400M, A380, A350, NH90 Naval, Saudi bordersurveillance, US defence programmes.
5. Protect EADS’ reputation as a responsible company
in our HOME COUNTRIES, to win over conﬁdence
and support from governments and public opinion.
6. Prepare the PROGRAMMES OF THE FUTURE– notably future commercial aircraft, X4 and heavy lift
helicopters, Ariane 6, Advanced UAV Talarion.
7. Foster INNOVATION BEYOND TECHNOLOGIES and transform these initiatives into efﬁciency
and new businesses.
8. In line with Vision 2020, develop SERVICES and
SECURITY activities. Focus on core and extend ourfootprint outside Europe. Increase our global reachin terms of partnerships, sourcing and employees.
9. Ensure compliance with ETHICAL businessconduct in all key business processes.
10. Move to an ECO-EFFICIENT enterprise –promote eco-efﬁciency as a driver of innovation in
research, production, product development andnew business opportunities.

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13

INTERVIEW WITH THE CHIEF FINANCIAL OFFICER“ EADS has come throughrecent challenges with robust
fundamentals.”
Hans Peter Ring

What would you say are the key messages
to be taken from the 2009 results?
Clearly, we have faced strong headwinds over the past year, withthe economic crisis, deterioration of dollar/euro exchange rates and,of course, the impact of our own programme difﬁculties. Those
factors have heavily burdened our 2009 results. But the results
also show that our underlying business is resilient. Airbus’s deliveries were at a record level. Strong government business enabled
Eurocopter to increase its backlog, and our Defence & Security andAstrium Divisions both continued to improve proﬁtability. EADS
has come through recent challenges with robust fundamentals.
We have a strong order book at € 389 billion at year end 2009 andrecord net cash at nearly € 10 billion despite all the headwinds.
Why do you pay so much attention to cash?
Because cash gives us ﬂexibility. Our strong liquidity has been agreat asset during the economic crisis. It is the basis for our continued strong credit rating and it helps us deal with programme challenges. Looking further ahead, cash protection will remain a key
priority as we move beyond the crisis and prepare for new customer
demand, and also possible adjustments to our company portfolio.
What has enabled you to build up this level of cash?
Over the past few years cash management has been our ﬁrst priority,and our policy has been successful. One of the main factors has
been close attention to the Airbus Power8 improvement programme

14

MANAGEMENT & GOVERNANCE> Interview with the Chief Financial Officersavings. We have monitored inventories and pre-delivery payments
very closely, and Airbus has been instrumental in reducing capital
expenditure. We’ve also heightened awareness of cash preservation
across the Group.
And I think there is still room for improvement. On inventories,
we are far from being benchmark at a level of € 21.6 billion at yearend 2009. This should allow us to retain a strong cash position in
the future.
What are you doing to help improve performance?
On top of all the ongoing EADS-wide cost-saving efforts, I consider
our integration efforts, our Future EADS programme, to be thereally important issue. Sharing IT, best practice, sharing services,sharing systems and addressing best practice in controlling, witha particular focus on programme controlling – these are some of
the important areas we want to tackle. Business partnering, being
closer to and involved in decision making, anticipating risks,better contracting – these are the top priorities of our ﬁnance teams
to improve performance of the organisation and control risks.
And how are you addressing the issue of financial risk
at EADS?
Ours is a business where big commitments are made on productswith long lead times. So ﬁnancial risk management is vital, andpartnership among ﬁnance and programme executives is key to our
success. The ﬁnance community has pushed implementation of
our Enterprise Risk Management system. It has become an integral
part of our management reporting and discussion, enabling us todevelop a “shared value community” with our operative colleagues.
We are working hard to create leaner processes and leaner reporting,in particular by focusing on the right metrics. Prompt and clear
reporting on programme ﬁnancials helps us to ﬂag and address risks
at an early stage. Finance is trying to be proactive in monitoring
and assisting improvements in the overall performance of EADS
as a Group.
The dollar exchange rate remains a heavy burden.
How do you see this developing, and what are you doing
to mitigate currency risk?

“ If you compare our revenues
and order book now with thoseten years ago, the development
is impressive.”
Hans Peter Ringto get to the point where more than half of our dollar inﬂows arenaturally hedged. In order to achieve this, we have increased dollar
purchases. The level will continue to increase due to higher dollar
content in new programmes, particularly the A350. This is part ofour industrial footprint strategy and a top priority for the company
as a whole.
Looking back over the past ten years, how do you see
EADS’ development in terms of fundamentals?
EADS has seen tremendous growth and almost doubled in size.
If you compare our revenues and order book now with those ten
years ago, the development is impressive. At the same time, it has
been a period of intense activity and investment in new technologies
and programmes. You can see that in our self-ﬁnanced research anddevelopment (R&D) commitment and the strengthened productportfolio. While that investment gives us a basis for the future, it
has been a challenge to our near-term operational performance. Our
goal for the next decade will be to leverage our remarkable strengths,
our order book, our cash ﬂexibility and our competitive portfolio
to generate value and improve performance.

In 2010, the deterioration of hedge rates will weigh on EADS’
results by about € -1 billion compared to 2009. There will also be aburden in 2011. Our hedging policy has given us time to cut costs
and gradually digest the signiﬁcant dollar deterioration seen over thelast years. To ensure stable, longer-term protection, our objective is

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15

TEN YEARS OF GROWTH> 5. Commercial momentum
Through vigilant management and effective matching of production
rates to demand, business at Airbus and Eurocopter has grownsteadily over the past decade, in spite of economic downturns. In
2009, Airbus’ commercial deliveries at 498 aircraft were up 60%
on the 2000 level (311 aircraft). Over the same period, Eurocopter
deliveries almost doubled from 289 in 2000 to 558 helicoptersin 2009 (up 93%).
> 6. Commercial resilience

Ten years of growth

Airbus’ attractive and competitive range of aircraft continues
to meet the evolving demands of its customers. Over the pastten years Airbus’ commercial order book has grown 115% from1,626 aircraft in 2000 to 3,488 in 2009, representing six yearsof full production.
> 7. Broad portfolio growth

In 2000, EADS’ predecessor companies joined forces, merging
European industrial assets and capabilities to create a powerfulcompetitor on the global aerospace and defence market. Ten years
since its creation, EADS is already making its mark globally andcan point to impressive advances, at least one for every year.
> 1. Top-line growth
In the ten years since its formation, EADS business activity
has steadily grown, reﬂecting the robustness of its underlying
business. In 2009, Group revenues at € 42.8 billion were up
77% from their 2000 level at € 24.2 billion.
> 2. Long-term stability
A strong order book provides a platform for long-term businessstability. Already in 2000, the Group order book was at an
impressive € 131.9 billion. By 2009, the ﬁgure had nearly
trebled to € 389.1 billion.
> 3. Financial flexibility
Cash management is a clear priority for EADS. Solid liquidity
is an asset in times of economic crisis allowing continued investment in future programmes. At the end of 2009, EADS’ net
cash at € 9.8 billion was at almost eight times its 2000 levelof € 1.3 billion.
> 4. Commitment to innovation
Throughout its ten years, EADS has maintained a clear focus
on innovation. The Group has ﬁled more than 7,000 new patents since 2000 and leads the aerospace industry in this ﬁeld.
In the same period, EADS has established offerings in ﬁve newmarket segments with UAVs, Global Security solutions, theMulti-Role Tanker Transport aircraft, the A400M and the A380.

16

With investment in ongoing programmes as well as developmentof new areas of activity, business at the Defence & Security,
Astrium and Eurocopter Divisions has grown substantiallyover the past ten years. Combined revenues of non-Airbus
activities rose over the period, from € 10.1 billion in 2000
to € 15.8 billion in 2009.
> 8. Profitability in Defence & Security, Astrium andEurocopter Divisions
Careful nurturing of core programmes as well as successfully
executed turnaround initiatives have contributed to a signiﬁcant
improvement in performance at the defence, space and helicopter
Divisions. The combined EBIT of non-Airbus activities of € 994
million in 2009 represents an almost four-fold increase on the2000 ﬁgure of € 253 million.
> 9. High-tech footprint
EADS has continued to invest in qualiﬁed know-how in Europe
and beyond. 15,000 high-tech jobs have been created since 2000.
> 10. Currency protection
Between 1 January 2000 and 31 December 2009, the US dollar
lost 30% in value against the euro. EADS has minimised theimpact on its proﬁts through strategic hedging and US dollar
sourcing. EADS hedge book grew from US$ 21.5 billion to
US$ 60.8 billion at the end of 2009. At Airbus, dollar sourcing
has increased with each new programme launch. At early 2010
exchange rates, the US dollar content of the A350 representsroughly three quarters of the total cost, far above the level ofprevious Airbus models.

All ﬁgures have been adjusted to reﬂect perimeter changes.

MANAGEMENT & GOVERNANCE> Ten years of growth+77%

EADS revenue growth between 2000 and2009 reﬂects the underlying vitality of Groupbusiness activities.

EADS GROUP REVENUES(in € billion)
50
40
30
20
10
0

EADS GROUP ORDER BOOK(in € billion)
500
400
300
200
100
0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

EADS has continued to invest
in qualified know-how inEurope and beyond. 15,000
high-tech jobs have beencreated since 2000.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

EADS GROUP NET CASH POSITION(in € billion)+651%
Solid liquidity is a key asset in challenging
times. EADS net cash position has risen
almost eight-fold.

10
8
6
4
2
0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

EA DS A NNUA L REVIE W 2 0 0 9

17

>

18

Bringing ourworld together
COOPERATION

DEDICATIONEFFICIENCYINNOVATION>SUSTAINABILITY

Ten years ago, several leading European aerospace companies
came together to form EADS. They were driven by a shared
goal: to create a major global aerospace contender out of arich but fragmented European industrial heritage. Ten years
on, EADS has already come a long way towards achieving its
goal. The success of EADS has been built on its people. Driven
by a common vision, sharing common values and inspired bya spirit of innovation, they are shaping the future in aerospace,setting new standards, bringing our world together.
1999-2009: In just one decade, EADS has left a tangible mark globallywith a range of products which are world-leaders in their sectors. And it
continues to innovate for the future.

EA DS A NNUA L REVIE W 2 0 0 9

19

Cooperation and commitment
The Euroﬁghter is one of EADS’ ﬁnest achievements founded on cooperation and commitment. EADS has been
cooperating within a four-nation industrial consortium to build the state-of-the-art Euroﬁghter, designed to meetthe complex security needs of governments and air forces worldwide. Five of Europe’s air forces are ﬂying theEuroﬁghter today, and it is the backbone of Europe’s airborne defence capabilities.

707 aircraft under contract
200 aircraft delivered
100,000 jobs on the programme

2009> In July 2009, the four partner nations, Germany, Italy, Spain and UK, place an ofﬁcial
order for a third production batch of Euroﬁghter. The Tranche 3a order means thattechnical preparations can begin for the production of a further 112 Euroﬁghters.

Dedication and expertise
The outstanding dedication and expertise of its workforce have made EADS a world-leader in each of its businesses.
In helicopters, for example. Design expertise has enabled Eurocopter’s teams to build a range of helicopters capable of meeting the most demanding operational needs. Dedicated maintenance experts ensure the more than
10,500 helicopters in service receive the support they need. That’s why Eurocopter is the world’s leading supplierof civil helicopters, with a growing military business.

10,500 Eurocopters in service
2,800 customers
140 countries with Eurocopter ﬂeets

2005> The German Army receives its ﬁrst serial production Tiger, a modern combat support helicopter. The Tiger’s sensor technology and multi-weapon capability give it the versatility tocover a wide range of mission scenarios, from armed reconnaissance to combat support.
Since 2009, the Tiger has been proving its serviceability while operating in Afghanistanwith the French armed forces.

Efﬁciency and ambition
EADS was born of a shared ambition to compete with the world’s best in aerospace. The same ambition led to thelaunch of the A380. Airbus saw that expanding air travel would create a need for a highly efﬁcient, large aircraft,capable of ﬂying long distances between major cities. Working closely with airlines, airports and airworthinessauthorities, Airbus’ teams designed the A380 to meet that need. By the end of 2009, nearly 4 million passengers
had ﬂown on the A380.

3 litres fuel burn/passenger/100 km
50% less noise than competitors
4 million passengers transported

2005> On 27 April 2005, the A380 ﬂies for the ﬁrst time. It is the ﬁrst ﬂight of a commercial
aircraft with 25% of its airframe made from composites, offering a 20% improvementin fuel consumption over the previous generation of jumbo aircraft.

Innovation and passion
Realising possibilities in aerospace requires continuous innovation. EADS employees have a passion for innovation,
not least at the Group’s space Division. Astrium delivers satellites that are essential for climate monitoring; hasengineered Europe’s contribution to the International Space Station; provides vital communications services; andmakes launchers that secure European access to space. None of this would be possible without the people whowork there – driven by innovation and passionate about space.

120,000 EADS people at over
100 EADS locations
1 passion

2005> On 12 February 2005, the Ariane 5 ECA launcher is successfully launched from theEuropean spaceport in Kourou, French Guyana. This launch validates the new, powerfulheavy-lift launcher’s performance, thus ensuring Ariane’s dual launch capability. By theend of 2009, Ariane 5 launchers had completed 35 successful launches in succession.

Sustainability and responsibility
In EADS’ business, product lifecycles can last several decades. Our long-term success therefore depends onsustainability and responsibility in all their aspects and at every level of the value chain: in dealings with suppliers,
partners, co-workers and customers. And ultimately the environment. EADS’ aeronautics businesses are dedicating
80% of their research budgets to “green” technologies.

50% lower CO2 targeted
80% lower NOX targeted
50% lower perceived noise targeted ** In line with ACARE targets for 2020, using 2000 as a baseline.

2003> EADS joins the United Nations Global Compact, an international initiative that brings
businesses together with UN agencies, civil society and government to advance ten
universal principles in the areas of human rights, labour and anti-corruption. EADS
has also signed the “Caring for Climate” initiative for organisations seeking to show
leadership on climate change.

The
Business Year
2009

30

Contents
32
38
44
46
48

Markets and Perspectives
AirbusEurocopter
Astrium
Defence & Security

EA DS A NNUA L REVIE W 2 0 0 9

31

Marketsand Perspectives
As the industry gradually recovers from the economic crisis, long-term
trends in aerospace will return to the forefront, in particular the drive
towards more eco-efﬁcient aircraft and demand for integrated solutions
to cope with terrorist threats and emergency response.

Reﬂecting the aviation industry’s sensitivity to economic growth,
the credit crisis had a direct effect on aviation during 2009, triggering the biggest post-war decline in passenger trafﬁc. Later in theyear, as global economic growth stabilised there was a corresponding improvement in air trafﬁc.
Supported by long industry lead times and the aircraft manufacturers’
large order books, deliveries of large passenger aircraft continued
at the previous year’s level. Airlines ordered considerably fewer
planes, however, and orders are unlikely to return to pre-crisis
levels before 2011 or 2012. Civil helicopters experienced a similar
trend, especially as banks became less willing to ﬁnance purchases.
The defence, security and space sectors proved less vulnerable tothe downturn, as government spending is planned several years inadvance. Nevertheless, mounting public debt in the wake of largescale economic stimulus measures means that many governments
need to review budgets. Defence and space budget growth in thedeveloped economies is expected to remain at best moderate in theimmediate future. While recession has been the most immediate
industry challenge, profound long-term changes are underway inthe aerospace and defence sector, some of which are supported by
the crisis’s ﬁnancial impact. Development of more fuel-efﬁcient
aircraft has become a priority – due to the need both to minimise
CO2 emissions and to cut costs.

32

Within the defence market, the rise of asymmetric warfare andterrorist threats is increasing demand for new types of equipment
and services. Integrated command and control systems, secure communications, unmanned aerial vehicles (UAVs) and cyber-security
have all received more funding in recent years. The ﬁnancial crisis
may hasten the shift in defence spending priorities and add topressure on defence equipment programmes for traditional battle
scenarios. Across the public-funded sectors of defence, security
and space, tight budgets are likely to support further outsourcing
to the private sector, for example through servicing-based publicprivate partnerships.
The ﬁnancial crisis is making aerospace and defence companies lookto developing countries for growth. In the wake of the crisis, developed countries are expected to expand by a mere 1.7% in 2010.
This compares to an expected 5.2% rate in emerging countries,
such as Brazil, India and China.

The downturn and beyond
Low passenger yields and rising fuel costs weighed heavily on
airline ﬁnances during 2009, causing legacy airlines to lose approximately US$ 9.4 billion, according to the March 2010 International Air Transport Association (IATA) estimate. Despite signsof a recovery, IATA expected the industry to report a US$ 2.8
billion loss in 2010. However, the long-term growth prospects
in global passenger demand remain positive.

THE BUSINESS YEAR 2009

> Markets and Perspectives

Paving the way for greater
safety and efficiency
EUROPE’S SINGLE SKY
AIR TRAFFIC has more than doubled over the lasttwo decades and is forecast to grow steadily in the
future. This raises the question of how to copewith growing air activity.
CONGESTION has already become a challenge.
Some regions, including the US East Coast or Greater
London already have difﬁculties managing aircraft
ﬂows. Airports are not expected to expand in line withoverall growth in the years ahead, putting pressure
on airside operations.
SINGLE EUROPEAN SKY is an initiative launched by
the European Commission in 2004 to unify European
air trafﬁc management (ATM), so paving the way for
greater safety and efﬁciency.

While civil helicopter orders were affected by the economic downturn,defence orders proved more robust.

AIR TRAVEL is resilient to external shocks(in RPK * trillion)
Gulf
Crisis5

AsianCrisis

9/11
Attack SARS

Financial
Crisis

4

+ 38%

3
2
1
1983

SESAR (Single European Sky ATM Research) is thetechnological programme within the initiative. The
SESAR Joint Undertaking, supported by Airbus
amongst others, aims to develop a new generation
ATM system. SESAR will be compatible with similar
initiatives such as NextGen in the US.
GOALS FOR 2020 include: a threefold increase incapacity, improved safety by a factor of 10 and
a 10% reduction per ﬂight in environmental impact.

1988

1993

1998

Source: ICAO, Airbus

2003

2009

* RPK: Revenue Passenger Kilometres

AIR TRAFFIC correlates with Gross Domestic Product (GDP)(in %)
World passenger trafﬁc growth

World GDP growth

15

5

12

4

9

3

6
2
3
1
0
0

-3
-6

-1
1985

87

89

91

93

95

World passenger trafﬁc growth

97

99

01

03

05

07 2009

World GDP growth

Source: Global Insight, IATA, WTO, IMF, Airbus

EA DS A NNUA L REVIE W 2 0 0 933

MARKETS AND PERSPECTIVESPRESSURE ON BUDGETS
GLOBAL DEFENCE BUDGET(ﬁgures and forecast in US$ billion)

Within the defence industry, continental European defence spending is likely to remain at best ﬂat mid-term. Also in the US, thedefence budget will, after double digit growth for most of thepast decade, inevitably face a more challenging situation. Even so,
pockets of growth will always exist. Cuts in major programmesmean more upgrades and in-service support in the medium-term.
And lower overall programme spending will lead to an increased
need for solutions with better overall value, for example with lower development risks. Companies that help the customer throughsuch transformations may be the winners in the next decade.

1,600
1,550
1,500
1,450
1,400
1,350
1,300

2009

2010

2011

2012

2013

2014

2015

2016

2017

Source: Frost & Sullivan

Orders for new aircraft fell signiﬁcantly. Airbus won 310 orders
in 2009, down from 777 in 2008, while Boeing’s new orders fell
to 263 in 2009 from 669 in 2008. In the past, the aerospace industry has lagged the economic cycle by approximately two years. If
such a pattern were repeated, the bottom of the current down
cycle would still be in front of us. However, today the backlog ismore geographically balanced. The industry has also learned fromthe past and started anticipating the cycle earlier, as well as managing the overall backlog more actively than in past downturns.
Airbus alone shifted 600 aircraft delivery slots during 2008 and2009 in time and between customers.
Following the well-established correlation between GDP growthand passenger trafﬁc, world trafﬁc will grow on average by 4.7% a
year from 2009 to 2028, with the highest levels in Asia Paciﬁc and
the Middle East, according to the Airbus Global Market Forecast.
Over 20 years, Airbus foresees a demand for around 25,000 passenger and freighter aircraft, worth approximately US$ 3.1 trillion.

34

As government budgets are increasingly under pressure, the trend
towards more multinational research and development or procurement programmes should, in theory, accelerate. However, national
interests in favour of local employment, often distort the overall
rationale for efﬁciency and interoperability. In particular, European
customers are weighing up the long-term beneﬁts of a European
approach against the short-term need to address local challenges.
Industry needs to address both aspects to ensure success in theyears to come.
Anticipating weakness in their traditional markets, defence companies are focusing on exporting to growth markets in Asia Paciﬁcand the Middle East, and also looking to build their services businesses, for example through maintenance contracts.
The full impact of the downturn on Europe’s space industry is as
yet unclear. Worldwide, the global space hardware and service market is worth some US$ 250 billion (Frost & Sullivan) and has been
growing at an annual rate of 7%. Even in 2009, the commercial
space market was resilient and satellite operators secured ﬁnancing
for new investments. The decline in consumer spending could havesome effect on the speed of capacity growth. However, satellite
operators and service providers often have multi-year contracts,
shielding them to an extent from short-term ﬂuctuations in theeconomy.
While the US, Chinese and Russian space industries are protectedby the size of domestic governmental programmes, European industry depends more on the worldwide commercial market. Commercial sales represent 40% of European space hardware turnoveron average. The European space industry is maintaining its market
share, however, partly due to the reliability of its satellites andlaunchers. Despite pressured overall budgets for European space
programmes, a shift towards more spending in climate changerelated segments like earth observation is to be expected.

THE BUSINESS YEAR 2009

> Markets and Perspectives

Reconciling growth and climate change
The aviation industry is developing technology in order to balance
the beneﬁts aerospace brings to people’s lives and the global economy,
with the need to protect the world’s eco-systems. Environmental
protection will itself be a signiﬁcant driver of economic activity inthe years to come. Annual worldwide investments in new energy,
energy efﬁciency and environmental services are expected to reach
US$ 600 billion by 2020.
Governments are now actively encouraging the development ofclean, inexhaustible energy sources, and the aerospace industry has
concrete solutions to offer. Already in the last 40 years, the aviationindustry has achieved a 70% improvement in aircraft fuel-efﬁciency,
signiﬁcantly reducing CO2 emissions per passenger kilometre.
ALTERNATIVE FUELS

CryoSat-2, built by Astrium, will measure ice coverage at the Earth’s poles.

ANNUAL WORLDWIDE CLEAN TECHNOLOGY INVESTMENT(ﬁgures and forecast in US$ billion)
700
600
500
400
300
200
100
0

2006

2008

2010

2012

2014

2016

2018

2020

2022

Source: Deutsche Bank, New Energy FinanceOver 20 years, Airbus
foresees a demand foraround 25,000 passenger
and freighter aircraft.

2024

2026

Through the International Civil Aviation Organization, aviation
has committed itself to the goals of improving CO2 efﬁciency byan average of 1.5% annually to 2020, stabilising carbon emissions
from 2020 with carbon-neutral growth and aspiring to cut net CO2
emissions in half by 2050 – all compared to 2005. Improvements
in air trafﬁc control, taxiing, landing and takeoff patterns cansigniﬁcantly reduce fuel consumption. But in order to reduce CO2
emissions further, airlines will have to invest in modern aircraft,with the lightest, most aerodynamic air frames, economical engines
and efﬁcient systems. Longer term, the use of sustainable biofuelsin the form of algae is likely to have the greatest impact. While algae
do not emit less CO2 than kerosene, they consume the gas whengrowing and so have a roughly neutral effect over their lifecycle.
The development of alternative fuels remains a ﬂedgling industry,
with, as yet, little standardisation, and production will remain at alow level for the next ten years. Even after 2020, alternative fuels
are unlikely to become available in sufﬁcient quantities to meet allindustrial and transportation needs, which will lead to considerable
competition. According to the Air Transport Action Group, 30% ofjet fuel may be made from algae by 2030.
Airbus has deﬁned a global roadmap on alternative fuels, bringing
together research and industry partners, ﬂight testing and fuel certiﬁcation authorities. While keeping an open mind about possible
fuel alternatives, with regard to biofuels, Airbus is focusing on
second-generation and beyond, such as algae and micro-organisms,
including bacteria, yeast and micro-algae. A clear pre-condition isthat any solution should not compete with food resources, fresh
water supplies or land use.

EA DS A NNUA L REVIE W 2 0 0 935

MARKETS AND PERSPECTIVES

CLIMATE PROTECTION

Already, climate protection is an important area of business in thespace sector. In 2010, ﬁve satellites built by Astrium and dedicatedto the environment will be placed in orbit. Through its subsidiary
Spot Infoterra, Astrium can accurately measure the current evolutionof deforestation and forest degradation – together with the resulting carbon emissions – over major forest regions. Working together
with the Brazilian NGO IMAZON, Astrium has already analysed
the Mato Grosso forest in the Amazon and developed a new toolthat was tested and approved at the Copenhagen Climate Conference. It is now being used in REDD projects (Reducing Emissions
from Deforestation and Forest Degradation). The goal is to develop
the emissions trading market so that countries with forested areas
can realise the value of their forests and better protect them.
The space industry may also have a future role to play in the discovery of new sustainable energy sources. Astrium is developing
new technologies for transferring solar energy to Earth. It is now
capable of manufacturing large satellites that can collect solar energy
and redirect it towards the ground using laser beams and special
mirrors.
Using experience gained in its aerospace core-business, Astriumalso develops new composite wind turbine blades which meetthe demand for increased size and reliability especially in the fast
growing offshore wind power market.

The convergence of defence and security
When the US Pentagon outlined its defence budget in 2009, it
revealed a shift in priorities symptomatic of a larger worldwide
trend. The Pentagon cut spending on big programmes suited topeer-to-peer wars, increasing the emphasis on “irregular” or asymmetric threats, like those encountered in Afghanistan. This isleading to an increased focus on mobility, cyber-intelligence andballistic missile defence.

Facilitating cross-borderflows of people and goods,
while preventing illicit
activities
GLOBAL TRADE AND BORDER SECURITY
GLOBAL TRADE is a part of today’s world economy.
Stronger international commercial ties bring an increased ﬂow of goods across borders. With growinginterdependencies, people are more likely to travel
abroad for work or family visits, as well as for tourism.
ILLICIT TRADE can exploit globalisation, however;for example, through drug and human trafﬁcking,smuggling and illegal immigration. Organised crimeor terrorist networks can exploit porous borders.
BORDER CONTROL AND SURVEILLANCE is, therefore, a key component of a country’s security policy.
The aim is two-fold: to facilitate free ﬂow of lawful
travel and trade through automated systems; and to
identify crime suspects, counter illegal activities andprevent terrorism.
COMPREHENSIVE SYSTEMS are required to survey
land, coastal and maritime borders, including the portsof entry along coastlines, airports and harbours.
SOLUTIONS, such as those provided by EADS, bring
together multiple systems including optical cameras,
radars, airborne and space equipment, as well as
electronically controlled checkpoints. Integrated command chain systems support decision makers andcoordinate response.

36THE BUSINESS YEAR 2009

> Markets and Perspectives

In such operations, rapid deployment, precision engagement, information superiority and coordination between different sections of
the forces, as well as between different national forces, are required.
For this reason, industry is increasingly offering to provide large
systems integrating the various sub-systems in operation, such as
UAVs, combat aircraft, ground forces and helicopters. Radar applications, satellite systems and secure communications also play animportant role in such large system solutions.
UAVs are a key part of the trend towards information warfare andnet-centric systems. They perform intelligence, surveillance andreconnaissance tasks, as well as hunter-killer missions, but can also
be used for border security, coastal protection, emergency response
and law enforcement.
The need for secure communications during military operations introuble hotspots overseas has fuelled demand for satellite services
such as those provided by Astrium subsidiary Paradigm for the UK
Ministry of Defence.
Not only military but also civil targets can be vulnerable to terrorist
attacks. National security organisations will, therefore, continue todevelop net-centric systems to protect sensitive civilian infrastructure, as well as large gatherings of people, such as major sporting
events.

EADS’ Harfang UAV system is dedicated to reconnaissance and tracking missions.
The French Air Force has deployed the system in Afghanistan.

SECURITY INDUSTRY MARKET SECTORS
in 2008 (in %)38% Physical security protection *19% Counter-terror intelligence
12% Critical infrastructure protection€ 103 billion

Recent border security contract wins in the Middle East and elsewhere conﬁrm the market for full solutions in the security ﬁeld.
For example, Saudi Arabia awarded EADS a contract in 2009 toprovide visibility and operational awareness along about 9,000 kmof border, including mountains, deserts and sea borders.

10% Protective clothing (ﬁrst responders)
10% Border security
7% Maritime security
5% Aviation security* It includes CCTV, access control equipment, intrusion and detection systems, etc.
Source: ECORYS 2009

Another emerging security sector is cyber-warfare. In recent years,
there has been a rise in the number of attacks on sensitive computer
systems. Many countries are, consequently, building capabilities
to defend against such attacks. US President Obama recently announced the appointment of a new cyber-security coordinator asa member of his national security team. France created a network
and information security agency in 2009.

SPACE INDUSTRY MARKET SECTORS (Hardware/platforms only)(ﬁgures and forecast in US$ billion)
30
25
20
15
10
5
0

1997

2000

2003

2006

2009

2012

2016

Government civilian market (high and low)
Military market (high and low)
Commercial market (high and low)
Source: Euroconsult, estimations by EADSEA DS A NNUA L REVIE W 2 0 0 9

37

Airbus
Despite a challenging market environment, Airbus achieved a record numberof deliveries in 2009 and met its order target. Improvement programmes madesigniﬁcant progress, in the face of a weak dollar and programme challenges.
(€ m)

2009

2008

Variation

Revenues

28,06728,991- 3%

EBIT- 1,371

1,815–

Order intake

23,90485,493- 72%

Order book339,722357,824- 5%

Large photo: During its second year in service, the A380 has met expectations
for fuel efﬁciency and range. At year end 2009, 23 A380 were in service.
Small photo: In December 2009, production on the A380 ﬁnal assembly line
was reviewed in order to minimise delays.

38THE BUSINESS YEAR 2009

> Airbus

Airbus * struck another record delivery number in 2009 and, in spiteof difﬁcult economic conditions, won a level of orders that was inline with expectations. Overall performance was negatively impacted
by the weakening dollar and programme difﬁculties, particularly on
the A400M. The Power8 cost reduction programme moved aheadof schedule, almost meeting its ﬁnal target set for end 2010.
Some 498 civil aircraft were delivered, 15 more than in 2008,
marking the seventh successive year that Airbus has increased deliveries. This was a remarkable achievement in view of the severe
downturn in air trafﬁc. In 2008 and 2009, Airbus postponed or
brought forward roughly 600 deliveries for the 2009/2011 period.
Airbus Military delivered 16 light and medium transport andmission aircraft.
The number of civil orders totalled 310 (271 net) and the numberof military 18 (10 net), which met stated targets for the year. The
civil orders were valued at US$ 34.9 billion at list prices, representing in value terms 54% of the worldwide market for aircraft withmore than 100 seats. The order book reached 3,488 aircraft worth
US$ 437.1 billion (€ 304.7 billion) at list prices at the end of 2009,
representing six years of full production.
The A400M successfully completed its maiden ﬂight at Seville in
December 2009. In March 2010, EADS and the A400M’s launchcustomer nations came to an agreement in principle with the intention to amend the original A400M contract accordingly. Based on
the agreement, an estimate at completion of updated revenues andcosts including an assessment of risks, reviewed by the EADS Boardof Directors, led to an increase of the A400M loss provision of€ 1.8 billion pre tax for the full year 2009.
Airbus’ consolidated revenues of € 28.1 billion were in line withthe previous year (ﬁnancial year 2008 adjusted: € 29 billion).
Airbus’ consolidated EBIT amounted to € -1,371 million (ﬁnancial
year 2008 adjusted: € 1,815 million), chieﬂy due to the exceptionalcharge resulting from the A400M cost overrun. The weak US dollar
and difﬁculties moving the A380 double-decker into series production also eroded proﬁtability.
IMPROVING EXECUTION

The long-term deterioration of the US dollar makes cost-saving
programmes vital for Airbus’ future competitiveness. The Power8
programme made signiﬁcant progress. By the end of 2009, approximately € 2 billion of gross annual savings were made against the
projected cost base, due to a new organisational structure, leaner
processes and careful cash management. Consequently, Power8
nearly reached its ﬁnal target of € 2.1 billion in savings by the endof 2010. Power8 Plus, the EADS-wide savings initiative, aims toachieve a further € 650 million of savings for Airbus by the endof 2012.

In December 2009, the A380’s production was reviewed to identify
ways to improve the production ramp-up. The following threemain improvement measures have since been introduced to minimise delays on the ﬁnal assembly line (FAL): electric testingof all equipped sections before reaching the FAL, harmonisationof quality inspection of sections across different sites, and betterengineering support to ﬁx problems during manufacturing.
In order to support the A400M programme and gain further
efﬁciencies within Airbus, integration of Airbus Military was advanced. Following the December 2008 decision to create the Airbus
Military Business Unit from the former Military Transport Aircraft
Division, management introduced a new organisational structure,merged the organisation’s reporting systems with those of Airbus
and instituted joint procurement. Most importantly, speciﬁc technicalmanagement changes were implemented for the beneﬁt of the A400M
programme (power plant, systems and ﬂight tests).
As a result of the integration, there is a better allocation of industrial and engineering resources. Operational synergies at development and industrial level for both civil and military transport
aircraft are being fully explored, while safeguarding and leveraging
Airbus Military’s speciﬁc capabilities.

* Airbus is now reporting in two segments: Airbus Commercial and Airbus Military. The Airbus
Commercial perimeter includes EFW and the completed aerostructures reorganisation. Airbus
Military (formerly Military Transport Aircraft Division) includes all A400M activity. Eliminations
are treated at the Division level. 2008 ﬁgures have been restated to reﬂect the changes, except
for the Augsburg site transferred from Defence & Security Division.

EA DS A NNUA L REVIE W 2 0 0 9

39Airbus Commercial

(€ m)

2009

2008

Revenues

26,37026,524

- 1%

386

2,306

- 83%

Order intake

23,461

82,108- 71%

Order book320,321337,193

- 5%

2009

2008

Variation

EBIT

In number of aircraft

Variation

Deliveries

498

483

+ 3%

Order book

3,488

3,715

- 6%

The A350 XWB provides a 25% step change in fuel efﬁciency
compared to its current long-range competitor. Over 70% of theA350 XWB’s weight-efﬁcient airframe is made from advanced
materials combining composites (53%), titanium and advanced
aluminium alloys. The aircraft’s innovative new Carbon Fibre
Reinforced Plastic fuselage results in lower fuel burn as well as
easier maintenance.
The A350 XWB is pioneering a completely new way of working
for Airbus. Under a strict control policy, suppliers are taking on
far larger work packages than before, sharing more risk and, consequently, potentially receiving greater reward. An important resultof this is that approximately 70% of the programme’s costs are
effectively denominated in US dollars, so reducing the currency
exposure.
A380 CUSTOMER ACCEPTANCETOMORROW’S LONG-RANGE AIRCRAFT

Airlines ordered 27 new A350 XWB long-range aircraft in 2009(22 net), lifting the total order book to more than 500 just three
years after Airbus started the programme to develop this nextgeneration aircraft. A350 development continued to progress.
Airbus used up some of the previous buffers in the developmentof the A350 programme. In March 2010, Airbus maintained
the entry into service date unchanged.
The aircraft is a response to customer demand for a long-range aircraft that combines the fuel economy and low emissions of a lightweight composite airframe with the comfort of an extra wide body.

40

During its second year in service, airlines report satisfaction with
the A380’s performance, which has more than matched expectations in terms of fuel efﬁciency and range. Airlines beneﬁt from
20% lower operating costs with the A380, and the lowest emissions per passenger of any commercial aircraft in service today.
By the end of 2009, 23 A380 had already entered regular service
for four initial operators: Singapore Airlines, Emirates, Qantas
and Air France. The in-service ﬂeet had accumulated more than
10,200 commercial ﬂights representing about 96,000 ﬂight hours.
In all, nearly four million passengers have already ﬂown the A380
and given very positive feedback. Singapore Airlines took deliveryof the ﬁrst production A380 on 15 October 2007, and, by end of
2009, had ten aircraft in operation. Most recently, on 30 October
2009, Air France received its ﬁrst A380. This marks the ﬁrst deliveryof the A380 to a European carrier. At the end of 2009, total orders
for the A380, including those already delivered and the four neworders received during that year, amounted to 202 aircraft from
17 customers.

THE BUSINESS YEAR 2009

> Airbus

Airbus anticipates a market of 1,700 aircraft in this category overthe next 20 years. The A380 will be a strong competitor in thissegment, particularly as fuel economy and environmental performance become more important.
THE LEADING SHORT-RANGE AIRCRAFT FAMILY

In 2009, the A320 aircraft family won 228 new orders (207 net).
Some 402 A320 family aircraft were delivered. At the end of 2009,
the total number of deliveries still outstanding stood at 2,403.
In order to maintain its competitive edge in this segment, Airbus
continues to innovate on the A320, focusing especially on economics and reducing emissions. New “sharklets”, or upturned
wing tips, are currently under development and will signiﬁcantly
reduce drag, cutting emissions and increasing payload range. Offered
as a forward-ﬁt option, sharklets are expected to reduce fuel burnover longer ﬂights by at least 3.5%, corresponding to an annual
CO2 reduction of approximately 700 tonnes per aircraft.
The A320 will be the ﬁrst of the Airbus single-aisle family to
be ﬁtted with sharklets, which are set for introduction in 2012.
Furthermore, Airbus is currently evaluating the possibility ofre-engining the A320, with a decision due in 2010.
FIRST FLIGHT FOR LONG-RANGE FREIGHTER

An important product development milestone was the ﬁrst ﬂightof the A330 freighter, prior to ﬁrst deliveries in summer 2010.
The medium-sized freighter now has 64 orders from ten customers
in a market that Airbus anticipates totalling 1,600 aircraft in thenext 20 years.
The A330/A340 family as a whole received orders for 51 aircraft(38 net). In 2009, Airbus delivered 86 A330/A340 aircraft tocustomers.

Top photo: With more than 6,528 aircraft sold, the A320 family has provenextremely popular with customers, offering high standards of comfort andeconomic performance.
Bottom photo: A380 production is being ramped up. Airbus anticipates that theA380 will gain market share as fuel economy and environmental performance
become more important.

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Airbus Military

(€ m)

2009

2008

Variation

Revenues

2,235

2,759

- 19%

EBIT

- 1,754- 493–

Order intake

637

5,083

- 87%

Order book

20,68622,269- 7%

Being able to ﬂy at higher altitudes and faster than other transports,
it can refuel ﬁghter jets and other large aircraft. Because of its low
speed performance, it can also refuel helicopters. The A400M canitself be refuelled in ﬂight. It has been speciﬁcally designed forlow detectability, low vulnerability and high survivability, giving
it excellent self-protection.
A total of 184 A400M aircraft have so far been ordered by Belgium,
France, Germany, Luxembourg, Malaysia, Spain, Turkey and theUnited Kingdom.
NEW ORDERS FOR MRTT

In number of aircraft

2009

2008

Variation

Deliveries

16

19

- 16%

Order book

250

256

- 2%

A400M DEVELOPMENT

Development of the A400M progressed. The A400M’s maiden
ﬂight in December 2009 marked the beginning of a test campaignthat will see some 3,700 hours of ﬂying by ﬁve aircraft before
entry into service. EADS considers that the agreement in principle
reached with the launch customer nations in March 2010 provides
a sound basis for successful evolution of the A400M programme.
EADS will strive to identify opportunities to signiﬁcantly reducerisks in the A400M programme and to deliver a state-of-the-art
product within the new framework of the contract.
The A400M was designed to respond to the combined but varying
needs of European nations in terms of airlift. For example, its fuselage can accommodate an NH90 or a CH-47 Chinook helicopter,can carry a semi-articulated truck with a 20 ft container or a rescue
boat. Despite being a true tactical aircraft that can land on soft,rough and short runways to deliver equipment and troops close
to where they are urgently needed, it cruises at the same altitudes
as jets and at comparable speeds.
Built-in air-to-air refuelling capability allows it to be rapidly reconﬁgured to become a tanker.

42

Airbus Military had a successful year for new tanker orders, witha second batch of three A330-based Multi-Role Tanker Transport(MRTT) airborne refuelling planes ordered by Saudi Arabia.
There are now 28 orders for the MRTT from four air forces. Australia has ordered ﬁve MRTTs. In the Middle East, the United ArabEmirates has ordered three MRTTs and Saudi Arabia has now ordered a total of six. Orders for the MRTT also include the UK’s
Future Strategic Tanker Aircraft programme for 14, where EADS
is a member of the Air Tanker Ltd consortium that owns, manages
and maintains the aircraft under a public-private partnership.
Conversion work for the Royal Australian Air Force MRTTs wascompleted in 2009.
A number of export campaigns are ongoing for the MRTT, raising
the prospect of more orders over the next few years. There are also
discussions regarding supplying MRTTs within Europe.
In March 2010, Northrop Grumman decided not to rebid for the
US Air Force Tanker programme, having previously teamed up
with EADS for the competition. The following month, EADS
North America announced its intention to submit a proposal on
9 July 2010, offering the KC-45. The US Air Force had selected
the A330-based KC-45 in 2008, but the decision was cancelledlater the same year and the competition postponed to the next
US administration.
In the medium and light transport and mission aircraft sector,
where Airbus Military is a global market leader with its C-295
and CN-235 aircraft, Airbus Military received 15 orders from six
customers. The Mexican Navy and Air Force ordered a total ofseven C-295 tactical transport aircraft and the Czech Republicordered four.

THE BUSINESS YEAR 2009

> Airbus

OUTLOOKAs the aviation sector tends to lag the economic cycle, demand
for aircraft remains fragile. Airbus expects the level of new aircraft
orders to fall slightly in 2010.
Airbus will continue to proactively manage its order book, withthe aim of maintaining deliveries up to the level of 2008/2009.
The deteriorating US dollar-euro exchange rate in its hedge bookwill continue to put pressure on Airbus margins. To save on costs,
Airbus will pursue the Power8 programme to its completion in 2010
and advance the Power8 Plus savings programme.
Management will focus on resolving the difﬁculties with series
production of the A380. Close attention will also be paid to keeping
the A400M and A350 XWB development on track.
In the longer term, the product development of recent years throughthe A380, A350 XWB and A400M will strengthen Airbus’ competitive position in a growing aviation market, where eco-efﬁciency
is becoming increasingly important for airlines and manufacturers
alike.

Top photo: The A400M’s maiden ﬂight in December 2009 marked the
beginning of the test campaign before entry into service.
Bottom photo: Orders for the C-295 tactical transport aircraft conﬁrmed
its position as a global market leader.

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43Eurocopter
Eurocopter’s broad base of customers, regional markets and service
offerings protected it against the economic downturn. Orders from thepublic sector compensated for weakness in the civil helicopter market.
(€ m)

2009

2008

Variation

Revenues

4,570

4,486

+ 2%

263

293

- 10%

EBIT
Order intake

5,810

4,855

+ 20%

Order book

15,064

13,824+ 9%

Large photo: Eurocopter leads the market in the civil and parapublic sector. The EC145,
a medium-sized twin-engine helicopter, is a popular choice for emergency medical services.
Small photo: Thanks to its engaged and highly qualiﬁed workforce, Eurocopter was able
to maintain a high level of deliveries.

44

Revenues by markets(in % of external revenues)
52% Civil
48% DefenceTHE BUSINESS YEAR 2009

> Eurocopter

A broad presence across market segments and regions provided acushion against the economic downturn. Declining orders in thecivil market for light helicopters were countered by stable demand
for larger helicopters in the military sector, as well as a resilient
oil and gas market.
Both the US and European armed forces posted large orders. The
US Army ordered a further 51 UH-72A Lakota helicopters. Almost
100 UH-72As were delivered by the end of 2009, either on timeor ahead of schedule. In 2009, the French armed forces ordered afurther 22 NH90 tactical transport helicopters and Brazil also madethe ﬁrst down payment for 50 EC725 heavy-weight helicoptersordered in 2008.
ASIAN EXPANSION

In spite of lower demand for civil helicopters, Eurocopter expanded
the value of its order book and maintained deliveries at a level only
slightly below 2008’s record high. With its strong product offering,
it won a 52% share of civil and para-public sales, conﬁrming its
market-leading position.
Revenues rose slightly to € 4.6 billion (€ 4.5 billion in 2008),
reﬂecting a solid level of deliveries at 558 units compared withthe all-time high of 588 in 2008. EBIT was steady at € 263 million(€ 293 million in 2008), albeit with a favourable product mix being
offset by margin pressure on the NH90 programme, higher selffunded research and development and adverse foreign exchange
movements.
Continuing its expansion in services, Eurocopter successfully implemented a public-private partnership project to develop, ﬁnanceand operate NH90 ﬂight simulators in Germany, and inaugurated
two regional customer service centres, in Hong Kong and Dallas.
To improve efﬁciency and reduce costs, management introduced
the SHAPE programme, which is organised around six objectives:
accompany customers, save, improve, invest, simplify and people
engagement. These savings will free cash for research and development, safeguarding future competitiveness.
ORDER BOOK STABILITY

Despite a decrease in units sold, Eurocopter achieved its second
highest ever order intake in value terms, totalling € 5.8 billion(€ 4.9 billion in 2008). A net total of 344 new aircraft were booked.
The total order book rose to € 15.1 billion for 1,303 helicopters.
Military and civil helicopters accounted, respectively, for 70% and
30% of the order intake.

Expansion in Asia progressed. The EC175 medium-weight utility
helicopter, jointly developed with Chinese aerospace company AVIC,
performed its maiden ﬂight on schedule. In Japan, Eurocopter reinforced its local footprint by acquiring an 80% stake in local distributor, Euroheli Corporation, and 60% of All Nippon Airways Co’s
helicopter maintenance business.
Several new services businesses were established with a speciﬁc
focus on the deployment of ﬂight simulators around the globe
for both military and civil applications.

OUTLOOK
Orders for civil helicopters are expected to remain low in 2010, andthe high number of used aircraft available for sale at the end of 2009is likely to delay recovery. In the military market, the outlook is
encouraging but remains subject to economic recovery and governments’ budget policies.
Reduced orders for smaller civil helicopters in 2009 will cause aslight drop in revenues and deliveries in 2010.
The SHAPE reorganisation programme – which includes Eurocopter’s
contribution to Future EADS – will help to counter a weak civil
market and increased competition. It aims at generating savings of€ 200 million a year by 2011, delivering productivity improvements
and enabling Eurocopter to increase further investment in researchand development. This will allow the company to get through thecrisis while ensuring its future by securing the development ofinnovative products and services.

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Astrium
Astrium continued its path of proﬁtable growth in 2009, increasing the sizeof its order book and reinforcing its market positions, while playing a leadingrole in the evolution of Europe’s space economy.
(€ m)

2009

2008

Variation

Revenues

4,799

4,289

+ 12%

261

234

+ 12%

EBIT
Order intake

8,285

3,294

+ 152%

Order book

14,653

11,035+ 33%

Large photo: Astrium’ robust technology, high production standards and rigorous
testing have made it one of the most technically reliable space companies.
Small photo: The Eutelsat KA-SAT will be dedicated to providing broadband internet services.
In 2009, Astrium won seven out of 30 commercial telecommunication orders worldwide.

46

Revenues by markets(in % of external revenues)
64% Civil
36% DefenceTHE BUSINESS YEAR 2009

> Astrium

The Ariane 5 order, called the PB contract, is Astrium’s largest
ever and is testament to the launcher’s reliability. Additionally, theEuropean Space Agency contracted Astrium to study an even more
powerful launcher, Ariane 5 Midlife Evolution, lifting its payload
from 10 to 12 tonnes.
The seven commercial telecommunication orders won by Astrium’s
Satellite Business Unit compare to a total of 30 worldwide. They
included a strategically important € 500 million order for four multimission satellites from SES Astra, the world’s leading satellite
services provider.

Astrium proved again to be one of the most technically reliable andcommercially successful space companies. The powerful Ariane 5satellite launcher made its 35th consecutive take-off within daysof its 30th anniversary, and the commercial telecommunication
satellite business won the joint largest share of orders worldwide.
Revenues increased by 12% to € 4.8 billion (€ 4.3 billion in 2008),
with growth in all three Business Units – Satellites, Services andSpace Transportation – and a notable contribution from delivery of
the ﬁrst ComSatBw1 secure communications satellite to Germany’s
armed forces. 2009 revenues also included a non-operational positive one-time effect for in-orbit incentive schemes on commercial
satellites of € 200 million.
EBIT grew by 12% to € 261 million (€ 234 million in 2008). Astrium’s
larger stake in Spot Infoterra – up from 41% in 2007 to 96.3% by theend of 2009 – helped to lift EBIT. By contrast, sterling weakness
detracted from the proﬁtability of the UK Skynet 5 contract. The
EBIT margin was almost steady at 5.4%, after expanding continuously for four years.

The Services Business Unit expanded and evolved. Skynet 5 passed
its full operational service milestone, with the UK Ministry of
Defence recognising Astrium as its most reliable supplier. Following delivery of the ﬁrst German ComSatBw1 satellite, a second
was readied for launch in early 2010. Preparing Spot Image’s earth
observation business for its next stage of development, Astrium
secured investment for two new earth observation satellites.

OUTLOOK
In a tough commercial and public sector environment, Astrium’sorder book secures more than three years’ activity.
Six Ariane 5 launch vehicles are planned to be delivered in 2010.
Margin pressure on key programmes will increase due to greater
competition, a weak US dollar and public sector budget reviews.
The Future EADS and Power8 Plus improvement programmes willplay their part in raising proﬁtability across all three Business Units
during 2010, despite this more difﬁcult environment.
The Services, secure communications and earth observation businesses in particular are expected to deliver longer-term growth.

Astrium’s order book reached a record € 14.7 billion at year end(€ 11 billion in 2008). Arianespace’s order for 35 Ariane 5 launchers
worth more than € 4 billion over ﬁve years was the major factor.
Seven commercial satellite orders were also contributing factors.

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47

Defence & Security
Euroﬁghter, secure communications and nationwide security systems lifted theorder book to a record high, while product development intensiﬁed in unmanned
aerial vehicles, secure communications and defence electronics.
(€ m)

2009

2008

Variation

Revenues *

5,363

5,668

- 5%

449

408

+ 10%

EBIT
Order intake

7,959

5,287

+ 51%

Order book

18,796

17,032+ 10%

Large photo: Euroﬁghter is the most modern combat aircraft in its class.
The 200th aircraft was delivered at the end of 2009.
Small photo: Through the efforts of its highly skilled employees,
Defence & Security reduced cost and increased efﬁciency in 2009.

48

Revenues by markets(in % of external revenues)
1% Civil
99% DefenceTHE BUSINESS YEAR 2009

> Defence & Security

UAV PROGRAMMESDS completed the risk reduction study for its Talarion UAV on
behalf of France, Germany and Spain and successfully completed
the test ﬂight series of the Barracuda demonstrator, the largest
UAV ever built in Europe. Together with Northrop Grumman
Corporation, DS introduced the ﬁrst Euro Hawk unmanned aircraft
system (UAS).
NATIONWIDE SECURITY

The security market offers signiﬁcant future growth potential. DS
maintained its leading position in nationwide security systems bywinning the contract to secure the full borders of Saudi Arabia.
MISSILES

Defence & Security Division (DS) had a successful year with steady
growth in proﬁtable mature defence programmes such as Euroﬁghter,combined with increasing activity in high-growth security sectors.
Revenues grew by 3% to € 5.4 billion (€ 5.7 billion in 2008) ona like-for-like basis after adjusting for the transfer of some aerostructures activities in Augsburg to Airbus. The main contributor
to growth was the ramp-up of the Euroﬁghter programme.
This played a strong part in the 10% increase of EBIT to € 449 million (€ 408 million in 2008). The return-on-sales margin rose to8.4% (7.2% in 2008). All Business Units achieved improvement
programme targets, reducing cost and increasing efﬁciency.
An order intake of € 8 billion lifted the order book to a record€ 19 billion by year end (€ 17 billion in 2008), mainly driven by
the Euroﬁghter Tranche 3a contract and the contract for the Saudi
Arabian national security programme. Further orders were received
for missiles, radars, secure networks and digital communications.
EUROFIGHTER

The award of the Tranche 3a contract comprising 112 aircraft
will enable Euroﬁghter to consolidate its leading role in the global
market and conﬁrmed the Euroﬁghter’s market success. The 200th
Euroﬁghter was delivered at the end of 2009. Austrian export
orders were completed and Saudi Arabia took its ﬁrst deliveries
in June 2009. Furthermore, the aircraft entered into operational
service with NATO.

In the domestic markets, MBDA secured the second tranche of
the Team Complex Weapon (TCW) project. A major componentof the TCW assessment phase is a joint UK-French programme
for a next-generation helicopter anti-surface system.
RADAR AND MISSION SYSTEMS

Advanced radar systems achieved good market success. Notably,
this included a contract, worth more than € 130 million, to equip
Switzerland’s military air ﬁelds with air trafﬁc control systems, whichmarks the ﬁrst export contract for the new Airport Surveillance
Radar (ASR).

OUTLOOK
During 2010, proﬁtable growth will be based on large programmesdelivery, with increasing contributions from new growth areas,
particularly in security.
While securing its position in the home markets, DS will continue
to increase its presence in strategic global markets with large or
growing budgets.
DS will continue to invest signiﬁcantly in its future key technologies
and products such as UAV and next-generation radar systems.
DS will further enhance its offering of comprehensive packages of
mission-critical services.
Evolution of defence budgets and international expansion will need
to be carefully monitored in the mid-term.

* Augsburg site revenues of € 438 million are included in Defence & Security 2008
accounts. As of 2009, the Augsburg plant is integrated in Premium AEROTEC,
consolidated within Airbus accounts.

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49

EADS Pillars

50

Contents
52
54
56
58
60

Human Resources
Innovation
Eco-efﬁciency
Sourcing
Ethics and Compliance

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Human Resources
Our employees, their competencies and their motivation are ourmost valuable assets. Human Resources is working to enhanceboth employee engagement and the competencies of our highly
skilled workforce.

Large photo: Employees show a high level of pride in the Group’s products.
Small photo: EADS is looking to anticipate future workforce needs andsecure competencies across the Group.

52

EADS PILLARS> Human Resources

EMPLOYER BRANDING

A survey of engineering graduates conducted in April 2009 showeda signiﬁcant improvement over the previous year, ranking EADS
the most respected employer in France, number six in Germany
and tenth in Europe. HR is actively marketing EADS’ employer
credentials in the leading engineering universities. EADS recruits
large numbers of highly qualiﬁed engineers every year. In 2009,
EADS recruited more than 7,400 people externally.
SOCIAL DIALOGUEENGAGEMENT SURVEY

In 2009, EADS management and Human Resources (HR) commissioned the ﬁrst EADS-wide employee Engagement Survey. The
participation rate was high at close to 70% across EADS. Employees
articulated a high level of pride in the Group and its products while
clearly indicating areas for improvement. The main targets for improvement are recognition of employees, leadership behaviours andinternal communication, as well as better employee accessibility to
managers and HR support. Some 4,000 managers received aggregatedresponses from their teams. They shared the ﬁndings within theirteams and began, jointly with HR support, to prepare appropriate
action plans.

In its ten years of existence, the pan-European employee representative body, European Works Council (EWC), has proved aninvaluable forum for exchanging views with unions and employee
representatives at EADS level. A new Group-wide agreement
for implementation of a success sharing plan was signed in 2009.
Airbus, Eurocopter, Astrium and Defence & Security discuss their
speciﬁc issues with their own European employee representative
committees as part of active social dialogue in EADS.
TALENT MANAGEMENT AND “PEOPLE REVIEWS”

EADS is identifying future generations of managers through intensive talent management processes. The Group’s Corporate BusinessAcademy provides management training for executives and employees with potential. To ensure succession planning for top
management positions, in 2009 the EADS Executive Committee
reviewed the most talented employees and discussed their individual
development. These reviews provide a more complete view of
the capabilities of EADS’ potential future leaders throughout theGroup, and enhance mobility between the businesses.

COMPETENCY MANAGEMENT

In order to secure competencies and anticipate future workforce
needs, EADS has invested in competency management across theGroup during the last three years. Common tools and processes
have been implemented to improve HR processes such as recruitment, mobility and training. Group core competencies – for example,
systems engineering and programme management – have been
identiﬁed and common development programmes have been established. These programmes include actions like deﬁned career paths,
training programmes and external certiﬁcation. Within Divisions,training investments have been focused on divisional key corecompetencies.

OUTLOOK
In 2010, Corporate and divisional HR will organise a wide rangeof activities related to employee engagement, including Groupwide workshops and a comprehensive training programme forabout 4,000 managers in leadership. The second wave of the EADSEngagement Survey will be launched in autumn 2010.
The International Mobility Centre will become fully operational.
Implementation of the new HR delivery model and shared services
will continue under the Future EADS framework.

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Innovation
The Corporate Technical Ofﬁce (CTO) is maintaining research
spending in spite of the economic downturn and focusing on
maximising the productivity of technology innovation, witha particular emphasis on eco-efﬁciency.

Large photo: Strong commitment to technology investment has led to thedevelopment of successful products such as the Ariane 5.
Small photo: Technology development has a focus on reducing environmental
impact. Turbofan engines reduce perceived noise levels for commercial aircraft.

54

EADS PILLARS> Innovation

In the past ﬁve years, EADS’ R&T budget has expanded signiﬁcantly. In part, this has been supported by growth in external andpublic funding, such as government grants and tax incentives.
Patent ﬁlings are now running at more than 1,000 a year – up from
792 in 2006. As a result, EADS is the number one submitter ofaerospace patents in the industry. For 2009, there was a focus onpatent quality and coverage in emerging countries. Patent licenses
are now being actively marketed.
RECOGNISING ACHIEVEMENT

To fulﬁl the research and technology (R&T) goals of Vision 2020,
EADS is committed to its relatively high level of R&T investmentin spite of the economic downturn. Self-ﬁnanced research anddevelopment was equivalent to 6.6% of revenues in 2009, and thenumber of patent ﬁlings is the highest in the aerospace and defence
sector.
From a strategic perspective, R&T continued in 2009 to meet
Vision 2020 targets for key technologies, engineering recruitment
and R&T management. The Group-wide research center Innovation
Works extended its international footprint further into leading
scientiﬁc communities. An ofﬁce was opened in Bangalore, India,
and activities in Canada, Russia and the United Kingdom increased.
TECHNOLOGY ADVANCES

New technology development had a particular emphasis on
eco-efﬁciency. During the 2009 Paris Air Show, the Bluecopter
helicopter technology demonstrator was unveiled, featuring
a fuel-efﬁcient, low-emission propulsion system.
EADS has increased support for second-generation biofuel
development, working with universities and start-up companies
as well as certiﬁcation bodies. Aviation industry bodies anticipate
that biofuels could power 30% of commercial aviation by 2030.

In September 2009, the second EADS Hall of Fame awards presentation was held, celebrating the technical achievements of employees
across the Group. Advances in fuel cell technology, work on theInternational Space Station’s Automated Transfer Vehicle and expertise in lean manufacturing were some of technologies highlighted
during the ceremony. The awards, held every two years, are recognised as a celebration of the workforce’s contribution to the spiritof innovation.
This contribution is growing with expansion in the number oftechnical experts. The programme was introduced in 2006 andthere are now 1,250 designated experts.
IMPROVEMENT PROGRAMMESEADS’ Black Belt lean processes training programme passed a milestone in 2009, with 300 qualiﬁed “black belts”. These individuals
are realising valuable efﬁciencies in EADS’ processes, totalling an
estimated € 60 million to date.
The PHENIX programme, launched in 2008 in order to streamline
product design and manufacturing processes and tools, continued
to generate savings.

OUTLOOK
In 2010, the Corporate Technical Ofﬁce aims to continue driving
breakthrough technologies in strategic ﬁelds such as eco-efﬁciency,
and to extend its leading position in aerospace patents.

Within the production process, EADS is leading the implementation of large-scale Added Layer Manufacturing, which reduces
waste by forging speciﬁc steel parts rather than cutting them fromsteel sheets.

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Eco-efﬁciency
Eco-efﬁciency is at the heart of EADS’ business strategy. EADS
is developing a portfolio of environmentally friendly products that
protect the environment or monitor the Earth’s eco-systems.

Large photo: Eurocopter unveiled its Bluecopter demonstrator in 2009 at
the Paris Air Show, featuring a fuel-efﬁcient low-emission propulsion system.
Small photo: Astrium is developing new technologies for the solar arrays
used on its satellites.

56

EADS PILLARS> Eco-efficiency

Sustainable bio-fuels are also likely to offer huge beneﬁts in termsof CO2, and are forecast to make a major contribution to the Air
Transport Action Group (ATAG) goal of halving CO2 emissions by
2050 (baseline 2005). Airbus actively promotes the use of bio-fuels
speciﬁcally for aviation, including appropriate research, groundand ﬂight testing, as necessary to accelerate qualiﬁcation and allow
large-scale commercial use by 2030.
Airbus has also established a company called TARMAC-AEROSAVE
for environmentally friendly and safe dismantling of aircraft andsubsequent recycling of their constituent parts.
Highlighting advances made in helicopter design, Eurocopter
unveiled its Bluecopter demonstrator at the Paris Air Show during
June 2009, which includes a fuel-efﬁcient low-emission propulsion
system.
EADS aims to be at the forefront of eco-efﬁcient innovation, making
low emissions a source of competitive advantage for its aircraft while
minimising the environmental impact of its activities across theentire product lifecycle.

The space sector is also helping the ﬁght against climate change.
Astrium satellites monitor the Earth’s eco-systems, for example,
measuring Amazonian deforestation. Astrium has also developed
new technologies for transferring solar energy from space to Earth.

Making the ACARE (Advisory Council for Aeronautics Researchin Europe) research goals for aviation the benchmark of its progress,
EADS is investing in eco-efﬁcient technologies that by 2020 would
reduce aircraft noise by 50%, carbon dioxide emissions by 50% andnitrogen oxide emissions by 80%. EADS also aims to reduce energy
consumption, water discharge, waste and emissions of carbon dioxide and volatile organic compounds from its industrial operations insimilar proportions.

CLEANER OPERATIONS

Several new research milestones were achieved in 2009 and thenumber of sites covered by an Environmental Management System
certiﬁed against ISO 14001 signiﬁcantly increased to 72 (representing more than 95% of employees).

Integration of eco-efﬁcient criteria for selecting new investments,
infrastructures or industrial processes or purchasing is being pursued as part of the overall Group roadmap towards an eco-efﬁciententerprise. An exercise to measure EADS’ carbon footprint throughdirect and indirect emissions has been initiated. In order to monitor
the progress against Group-wide eco-efﬁciency goals, corporate
guidelines and web-based worldwide reporting tools were established during 2009.
REACH regulation (Registration, Evaluation, Authorisation
and Restriction of Chemical substances) that governs the useof hazardous chemicals is being managed through dedicatedinternational working groups.

“GREENER AND CLEANER” PRODUCTS

EADS is developing new technologies speciﬁcally to improve environmental efﬁciency. Airbus’ latest aircraft offer signiﬁcant improvements in emissions per passenger. The A380 double-decker
burns less than three litres of fuel per passenger per 100 km, and
the A350 XWB will also have low fuel consumption and associatedCO2 emissions.

OUTLOOK
During 2010, EADS will pursue its path towards Vision 2020’s
eco-efﬁciency targets. The Group will address the environmental
impacts of the company’s activities and products throughout theirlifecycle. Additionally, it will seize green business opportunities bydeveloping breakthrough technologies, products and services.

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57

Sourcing
The Sourcing function drove EADS’ longer-term goal of sourcing up
to 40% from outside Europe, while also fostering efﬁciency andsuccessfully mitigating the recession’s impact on the supply chain.

Large photo: Better coordination of procurement between Divisions is enablingsmarter buying in areas such as Aerostructures and Systems & Equipment.
Small photo: Following further integration of procurement activities, Sourcing
will concentrate on operational excellence in 2010.

58

EADS PILLARS> Sourcing

GLOBAL PROCUREMENTEADS continued its effort to increase procurement from strategic
countries, mainly in Asia. In China, EADS country sourcing ofﬁces
and Airbus procurement quality teams were merged.
Procurement from India and China grew quickly, though froma low base, with increasing amounts in higher value-added ﬁelds,
including aerostructures. EADS teams visited the two countries,
accompanied by some of the Group’s major procurement partners,in order to meet potential suppliers.
Natural hedging increased. More than 50% of US dollar revenues
are naturally hedged through sourcing in US dollars. The proportionis higher in new programmes like the Airbus A350.
RESPONSIBLE SOURCING

EADS’ procurement activities moved towards further integrationin 2009, with Airbus’ Chief Procurement Ofﬁcer (CPO) also appointed as Head of EADS Corporate Sourcing, and with the mergerof general procurement activities across EADS.
With a procurement spend equivalent to 70% of EADS’ revenues
and growing, greater integration offers signiﬁcant beneﬁts in termsof purchasing efﬁciencies, cost containment and coordination ofstrategic actions across EADS.
Signiﬁcant progress was made towards the Vision 2020 goals of
40% sourcing outside Europe and increasing natural hedging bybuying in US dollars.
GREATER INTEGRATION

A Group-wide shared services organisation was established, charged
with creating synergies and extracting savings from the annual€ 8 billion spend on general procurement. This new organisation,
EADS General Procurement (EGP), includes professional services,
product development, IT, travel, investment, facility management
and maintenance. EGP aims to contribute signiﬁcantly to the savings
targets of the Future EADS integration programme.
Beyond this, two new procurement boards (Aerostructures andSystems & Equipment) were created. These boards enable smarterbuying through coordination between Divisions on strategy anddiscussion of supplier performance.

The Procurement Compliance Organisation was established tocascade EADS’ responsible sourcing principles down the supply
chain. In particular, these include human rights, labour standards
and guidelines on environmental sustainability and anti-corruption.
MONITORING THE CRISIS

Sourcing actively monitored the impact of the recession in orderto anticipate any supplier difﬁculties and avoid interruptions tothe supply chain. The few cases of insolvent suppliers were handled proactively in line with corporate guidelines.

OUTLOOK
During 2010, Sourcing will focus on internal operational excellence
and improving supply chain performance. Strategic objectives include increasing US dollar natural hedging and global sourcing,aligning key suppliers’ strategies and fostering innovation sourcing.
Procurement performance will be monitored through a set of common key performance indicators that focus on implementation ofstrategy and development towards Vision 2020 targets.
The new procurement compliance organisation will drive responsible
sourcing practices internally and in the supply chain. Suppliers
will receive greater instruction on EADS’ corporate responsibility
requirements. EGP will implement improvement projects in orderto achieve its efﬁciency objectives.

EA DS A NNUA L REVIE W 2 0 0 959

Ethics and Compliance
The aerospace industry has special responsibilities. EADS iscommitted to ethical conduct and transparency to maintainsustainable competitive advantage.

Large photo: The compliance organisation is expanding, increasing
its presence both at Group level and within Divisions.
Small illustration: A roadmap has been designed in line with best practices
to implement an ethics and compliance programme.

60

EADS PILLARS> Ethics and Compliance

FOCUSING ON KEY RISKSETHICS AND COMPLIANCE PROGRAMME
Roadmap

A compliance risk map was compiled that identiﬁed EADS’
biggest areas of risk.

BenchmarkRisk assessment
PREVENT

Complianceprogramme

DETECT

IMPROVE

IMPROVE

Integrity codeand policies

Additionally, also in 2009, business ethics was systematically incorporated into the merger and acquisition due diligence process.

Communication andTraining
Incident Management
SystemThe export compliance organisation was streamlined in order tomitigate export control risks. The Export Compliance Council,
which oversees the relevant activities and sets policy, was formalised in 2009. It includes both national and divisional heads ofexport compliance.

RESPONDEADS continues to expand its compliance organisation in order toensure that activities across the Group meet the terms of international laws and regulations, as well as EADS’ stated ethical principles and best practices, in line with stakeholders’ expectations.
EADS’ Board of Directors is seeking to make business ethics asource of competitive advantage at a time when ethical standards
increasingly play a decisive role in the market. An important illustration is the new Federal Acquisition Regulation rule, effective
since 2009, which applies to US government acquisitions. It requires adoption of a code of business ethics and conduct, and an
ongoing business ethics awareness and compliance programme.
The EADS compliance organisation is also leading initiatives toestablish consistently high global standards for business ethics inthe aerospace and defence sector, so fostering a level playing ﬁeld.

PROMOTING INTERNATIONAL STANDARDSEADS took part in several initiatives to promote global standards.
EADS CEO Louis Gallois was one of 24 CEOs who signed acollective letter to UN secretary-general Ban Ki-Moon calling on
governments to implement the UN Convention against Corruption more effectively.
The Group also participated actively in drawing up the Global
Principles of Business Ethics for the Aerospace and Defence
Industry, a common set of standards for ethical conduct. These
were agreed upon in October 2009 by the Aerospace and Defence
Industries Association of Europe, and the Aerospace Industries
Association, its US counterpart.

OUTLOOK
During 2010, the compliance organisation will continue to increase
its effectiveness across the Group. In particular, it will focus on theinternational extended enterprise, as well as seeking to extend its
impact to the Group’s suppliers.

STRENGTHENING THE COMPLIANCE ORGANISATION

Dedicated compliance ofﬁcers were appointed to all Divisions
during the year, tasked with both helping management to ensurecompliance in business conduct, and promoting the Group’s ethics
programme. New heads of compliance were appointed at EADS
North America and to supervise the supply chain.
A roadmap has been designed to further strengthen the complianceorganisation, benchmarked against the United States Federal Sentencing Guidelines and other international references. Progress
reports to the Board of Directors in January and November 2009
showed that objectives were consistently met.

An alert system will be introduced to enable employees to address
ethical and compliance concerns in strict conﬁdentiality and without
fear of retaliation.
Finally, a set of key performance indicators will be introduced to
improve monitoring of the compliance organisation’s performanceby the Board’s Audit Committee.

EA DS A NNUA L REVIE W 2 0 0 961

Glossary

CO2
Carbon dioxide: a greenhouse gas identiﬁed as contributing toclimate change. According to estimates, aviation is responsible for2% of man-made CO2 emissions world-wide. EADS is investingin technologies to reduce aircraft CO2 emissions by 50% by 2020.

COMSATBw1
The ﬁrst satellite in the German Armed Forces SatComBw
military communications programme, for which Astrium is
responsible for the space segment and in-orbit delivery. The
second satellite, ComSatBw2, was delivered in March 2010.

CORPORATE BUSINESS ACADEMYEADS’ corporate university for employees with management
potential, based at Domaine de Villepreux, near Bordeaux, inFrance.

CORPORATE GOVERNANCE
The control and monitoring of a company to ensure that management acts in the interests of stakeholders, no undue risks are taken
and relevant legislation is complied with.

> ACARE
Advisory Council for Aeronautics Research in Europe: a European
research organisation founded by government and industry thataims to make Europe’s commercial aviation more affordable, cleaner,safer and quieter.

ASYMMETRIC WARFARE
A conﬂict between combatants possessing signiﬁcantly different
levels of military power, or practicing different methods of
warfare – for example, conﬂict between conventional forces andterrorist groups.

ATAG
Air Transport Action Group: a global coalition of air transportindustry companies and trade associations that have united todrive aviation infrastructure improvements in an environmentallyresponsible manner.

CYBER-SECURITY
The protection of data and systems in networks that are connectedto the internet.

> EADS INNOVATION WORKS
The global organisation that operates EADS’ research and technology laboratories, providing the new technologies needed for productdevelopment.

EBIT
Earnings Before Interest and Taxes: EADS uses EBIT pre-goodwill
impairment and exceptional items as a key indicator of its economic
performance.

ECO-EFFICIENCY
Term used to describe the management philosophy of creating
economic value while minimising environmental impact.

ATV

ENVIRONMENTAL MANAGEMENT SYSTEM

Automated Transfer Vehicle: the space cargo vehicle that will
supply the International Space Station with scientiﬁc equipment,
spares and fuel, together with supplies of food, air and water.

An environmental management system helps to identify and manage
signiﬁcant environmental impacts, increasing efﬁciency, ensuring
compliance with environmental legislation and providing benchmarks for improvement.

> BLACK BELTThe qualiﬁcation given to EADS employees who have completed
a course in “lean” management techniques, designed to improve
management of industrial programmes.

BLUECOPTERThe Eurocopter technology demonstrator that showcases “green”
technologies, including a fuel-efﬁcient, low-emission propulsion
system.

ERM
Enterprise Risk Management: a common process applied across
EADS and all its business. It is supervised by the EADS Board of
Directors and operated by management and other personnel. It is
designed to identify potential events that may affect EADS, tomanage risks within company tolerance and provide reasonableassurance regarding the achievement of EADS’ objectives.

ESA> CARBON FIBRE REINFORCED PLASTIC
A very strong, light composite material, this is increasingly used
to make lightweight aircraft bodies.

62

European Space Agency: the organisation that develops Europe’s
space programme and ensures that it provides beneﬁts to thecontinent’s citizens.

GLOSSARY> FUTURE EADSEADS programme aimed at improving integration of support
functions across the Group, to deliver efﬁciency gains and cash
savings.

> GDP
Gross Domestic Product: a basic measure of a country’s economic
output, or the market value of all goods and services produced bya country in a year.

> HEDGEA hedge is a form of ﬁnancial insurance that offers protection against
adverse future currency movements. EADS uses hedges to minimise the impact of ﬂuctuations mainly in the value of the dollar.

> IATA
International Air Transport Association: the airline industry’s global
trade association.

ICAO
International Civil Aviation Organisation: a United Nations
specialised agency that works to achieve the safe, secure andsustainable development of civil aviation.

> NOX
Nitrogen oxides: a group of gases identiﬁed as contributing toclimate change. In line with industry targets, EADS is investingin technologies to reduce aircraft NOx emissions by 80% by 2020.

> PHENIX
The EADS programme that is streamlining product design, andmanufacturing processes and tools.

POWER8An Airbus cost reduction programme that has introduced a neworganisational structure, leaner processes and better cash management.

POWER8 PLUS
The extension of the Power8 cost reduction programme that
includes all EADS Divisions.

> R&T
Research and technology – all activities in the ﬁeld of researchand generic technologies not directly attributable to products, anddesigned to maintain or expand knowledge of the technological base.

RAMP-UPIMAZONAn aerospace industry term describing a new production programme’s increasing level of activity.

Amazon institute of people and the environment – is a non-proﬁt
research institution whose mission is to promote sustainable
development in the Amazon.

REACH

ISO
International Organization for Standardization: a network ofnational standards institutes that sets standards for the beneﬁt
of business and the wider community.

> LEAN MANUFACTURING
A methodology that seeks to minimise the resources requiredfor production by eliminating waste, so reducing costs, lead times
and inventory requirements.

LONG-RANGE AIRCRAFT
An aircraft capable of exceeding 3,000 nautical miles, with a full
payload at normal cruising conditions.

LUH
Light Utility Helicopter: EADS is prime contractor to the US Armyfor its Light Utility Helicopter programme, providing the UH-72A
Lakota helicopter for administrative, logistic and medical evacuation
purposes, as well as to support army training.

> MRTT
Multi-Role Tanker Transport: Airbus Military’s tanker aircraft,based on the A330, used for air-to-air refuelling of military
aircraft.

Registration, Evaluation, Authorisation and Restriction of Chemical
substances: the European Commission regulation designed to
improve the identiﬁcation of hazardous chemicals and theirsubsequent replacement with less harmful substances.

> SHAPE PROGRAMME
Eurocopter’s improvement programme designed to increase
efﬁciency and to reduce costs.

SHARED SERVICES
Support functions that an organisation’s different subsidiaries
share in order to increase efﬁciency and to reduce costs.

SINGLE-AISLE AIRCRAFT
An aircraft with one aisle, such as the Airbus A320 family.

SKYNET 5
The UK Ministry of Defence satellite-based military communications system, manufactured and operated by EADS.

> UAVUnmanned Aerial Vehicle: a reusable aircraft that ﬂies without
a human crew; generally used for military purposes.

> VISION 2020
The EADS management’s strategic vision for guiding theGroup’s development until 2020.

EA DS A NNUA L REVIE W 2 0 0 963Addresses
EADS HEADQUARTERS
European Aeronautic Defence
and Space Company EADS N.V.
Mendelweg 302333 CS Leiden
The Netherlands
Tel + 31 71 524 56 00

HEAD OFFICESEADS UK

AIRBUS

EUROCOPTERIn France:
EADS
37, boulevard de Montmorency
75781 Paris cedex 16
FranceTel + 33 1 42 24 24 24

EADS UK Limited
111, The Strand
WC2R OAG London
United Kingdom
Tel + 44 207 845 84 00

Airbus1, rond-point Maurice Bellonte
31707 Blagnac cedex
FranceTel + 33 5 61 93 33 33

Eurocopter
Aéroport International deMarseille-Provence
13725 Marignane cedex
FranceTel + 33 4 42 85 85 85

In Germany:
EADS
81663 Munich
GermanyTel + 49 89 607 0

EADS NORTH AMERICAIn Spain:
EADS
Avenida de Aragón 404
28022 Madrid
Spain
Tel + 34 915 85 70 00

EADS North America, Inc.
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Suite 1600
Arlington, VA 22209
USA
Tel + 1 703 236 33 00

Airbus Military
Avenida de Aragón 404
28022 Madrid
Spain
Tel + 34 915 85 70 00
Premium AEROTEC
Haunstetter Str. 225
86179 Augsburg
GermanyTel +49 821 801 0
Aerolia
13, rue Marie Louise Dissart
31027 Toulouse cedex 3
FranceTel +33 5 81 91 40 00
EADS EFW
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GermanyTel + 49 351 8839 0

ASTRIUM
Astrium
6, rue Laurent-Pichat
70516 Paris cedex 16
FranceTel + 33 1 77 75 80 00
Astrium Satellites
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31402 Toulouse cedex 4
FranceTel + 33 5 62 19 62 19
Astrium SpaceTransportation
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78133 Les Mureaux cedex
FranceTel + 33 1 39 06 12 34
Airbus-Allee 1
28199 Bremen
GermanyTel + 49 421 539 0
Astrium Services
6, rue Laurent-Pichat
75216 Paris cedex 16
FranceTel + 33 1 77 75 80 00

64

ADDRESSESDEFENCE & SECURITY
Defence & Security
Landshuter Strasse 26
85716 Unterschleissheim
GermanyTel + 49 89 3179 0
EADS Military
Air Systems
Rechliner Strasse
85077 Manching
GermanyTel + 49 84 59 81 0
Eurofighter
Am Söldnermoos 1785399 Hallbergmoos
GermanyTel + 49 811 80 0
Defence andCommunications Systems
Landshuter Strasse 26
85716 Unterschleissheim
GermanyTel + 49 89 3179 0
Defence Electronics
Wörthstrasse 85
89077 Ulm
GermanyTel + 49 731 392 0
MBDA
11, Strand
London WC2N 5RJ
United Kingdom
Tel + 44 20 7451 60 00

EADS STRATEGYAND MARKETINGORGANISATION
Tel + 33 1 42 24 24 24
Fax + 33 1 42 24 26 19

Representative
offices
EuropeMiddle EastAsia

Abu Dhabi, UAE

Bangalore, India

Tel + 971 2 681 28 78
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Tel + 91 80 4031 2530
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Cairo, Egypt

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Tel + 20 2 279 486 71
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Tel + 662 610 4300
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Doha, Qatar

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Tel + 974 411 0752
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Tel + 86 10 646 1 1266
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Muscat, Oman

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Tel + 968 24 601 922
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Tel + 844 39 43 68 85
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Riyadh, Saudi Arabia

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Tel + 966 1 88 07 421
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Tel + 62 21 57 97 36 17
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Tel + 56 23 33 43 33
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Tel + 39 06 45 23 2901
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São Paulo, Brazil

EADS Sogerma
Aéroport International
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33700 Mérignac
FranceTel + 33 5 56 55 40 00

Warsaw, Poland

Tel + 55 11 3093 2800
Fax + 55 11 3093 2801

AfricaTokyo, JapanATR Avions de Transport
Régional
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FranceTel + 33 5 62 21 62 21

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OTHER BUSINESSES

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EA DS A NNUA L REVIE W 2 0 0 9

65

Shareholder
Information
Visit our website at:www.eads.com

FINANCIAL CALENDAR:INVESTOR RELATIONS CONTACT:

Full Year 2009 results release:
9 March 2010Toll-free telephone numbers:
France:0 800 01 2001
Germany: 00 800 00 02 2002
Spain:
00 800 00 02 2002

First Quarter 2010 results release:
14 May 2010
Annual General Meeting:
1 June 2010, Amsterdam,
The Netherlands
Shareholders’ Information meeting:
29 June 2010, Paris, France
Half Year 2010 results release:
30 July 2010
Nine-Month 2010 results release:
12 November 201066

Shareholders from other countries
can contact us at:+ 33 1 45 30 85 82
An e-mailbox is dedicatedto answering shareholders’ enquiries:
ir@eads.com

EADS would like to thank all those who contributed
to the making of this Annual Report and the photos.

www.reports.eads.com

THE COMPLETE EADS ANNUAL REPORT SUITE 2009 CONSISTS OF:

Bringing our world together

Registration Document 2009

EADS ANNUAL REVIEW 2009

FINANCIAL STATEMENTS

Financial Statements 2009

ANNUAL REVIEW 2009REGISTRATION DOCUMENT 2009

Bringing our world together

Financial Statements

Designed and produced by HGB Hamburger Geschäftsberichte | Written by The Clerkenwell Consultancy | Printed by Kriechbaumer
Photographs © by EADS: Abaca/C. Guibbaud, Abaca/N. Gouhier, P. Barthe, T. Carlson, M. Custred, J. Dannenberg, J. Deulin, P. Dumas,
A. Dumenjou, T. Goisque, H. Goussé, Mango Producciones - A. De Pablo, P. Masclet, E. Nojaroff, S. Ognier, P. Penna, Planet Focus Ltd./G. Lee,
S. Ramadier, E. Raz, M. Zinner, Airbus, Airbus China, Airbus/Fixion, Astrium, ATR, Defence & Security, Eurocopter, EADS North America,
Fotolia.com/Y. Arcurs, Fotolia.com/ T. Trojanowski, Pool Bertolin Morin/IP3-MaxPPP

WWW.EADS.COM

European Aeronautic Defence
and Space Company EADS N.V.
Mendelweg 302333 CS Leiden
The Netherlands
In France
37, boulevard de Montmorency
75781 Paris cedex 16 – France
In Germany
81663 Munich – Germany
In Spain
Avenida de Aragón 404
28022 Madrid – Spain