Facing
challenges.
EADS ANNUAL REVIEW 2007

Deliveringresults.

1

The complete EADS Annual Report Suite 2007 consists of:Facingchallenges.
EADS ANNUAL REVIEW 2007

Deliveringresults.

BOOK TWOBOOK THREE

2

3

Financial
Statements
andCorporate
Governance200744453_EADS_07_E_U_Book2.indd 1• Record order book of € 339.5 billion• Successful ramp-up across Divisions• Delivery of ﬁrst A380

Business,
LegalandCorporate
Responsibility
2007

29.04.2008 18:26:55 Uhr44453_EADS_07_E_U_Book3.indd 1

29.04.2008 18:26:31 UhrBOOK 1

BOOK 2

BOOK 3

FACING CHALLENGES
DELIVERING RESULTS
Annual Review

FINANCIAL STATEMENTS ANDCORPORATE GOVERNANCE 2007
Registration Document Part 1

BUSINESS, LEGAL AND
CORPORATE RESPONSIBILITY 2007
Registration Document Part 2

Management & Responsibility

Risk Factors

Information on EADS Activities

Together. Facing challenges.
Delivering results.

Net Assets – Financial Position – Results

Corporate Social Responsibility

Corporate Governance

General Description of theCompany and its Share Capital

The Business Year 2007
EADS Drivers
Useful Information• First savings in the Power8
restructuring programme

Designed and produced by HGB Hamburger Geschäftsberichte | Photographed by:Michael Lange. Photo p. IX (Columbus): ESA/NASA, p. 32, top: Angelo Cavalli(Getty Images) | Written by The Clerkenwell Consultancy | Printed by Kriechbaumer

EADS 2007
at a Glance

The Year 2007 in Review | EADS Shares | EADS Global Footprint
EADS Organisational Structure

CONTENTSEADS Group | The Divisions | Major Programmes and Products

EADS GROUP

Facing challenges.
Delivering results.

EADS STRATEGYAND MARKETINGORGANISATION

Tel + 33 1 42 24 24 24
Fax + 33 1 42 24 26 19

REPRESENTATIVE OFFICES

Asia

Latin America

EuropeBangkok, Thailand
Tel + 66 2 610 4300
Fax + 66 2 610 4301

Mexico City, Mexico
Tel + 52 55 47 77 51 00
Fax + 52 55 47 77 32 74

Beijing, China
Tel + 86 10 646 11 266
Fax + 86 10 646 10 409

Santiago de Chile, Chile
Tel + 56 2 278 78 78
Fax + 56 2 278 79 79

Hanoi, Vietnam
Tel + 84 4 943 68 85
Fax + 84 4 943 68 72

São Paulo, Brazil
Tel + 55 11 3093 2800
Fax + 55 11 3093 2801

Jakarta, Indonesia
Tel + 62 21 573 57 33
Fax + 62 21 573 59 23

Middle East

Ankara, Turkey
Tel + 90 312 439 89 64
Fax + 90 312 439 70 07
Athens, Greece
Tel + 30 210 69 83 871
Fax + 30 210 69 83 870

EADS is a global leader in aerospace,defence and related services. The Group
includes the aircraft manufacturer Airbus,
the world’s largest helicopter supplier
Eurocopter and Astrium, the European
leader in space programmes from Ariane
to Galileo.

Brussels, Belgium
Tel + 32 25 04 78 12
Fax + 32 25 02 30 81

Its Defence & Security Division is a provider
of comprehensive systems solutions andmakes EADS the major partner in the Euroﬁghter consortium as well as a stakeholder
in the missile systems provider MBDA.
EADS also develops the A400M throughits Military Transport Aircraft Division.

Warsaw, Poland
Tel + 48 22 627 05 28
Fax + 48 22 627 05 35

II

London, United Kingdom
Tel + 44 207 845 8400
Fax + 44 207 845 8401
Moscow, Russia
Tel + 7 495 797 53 67
Fax + 7 495 797 53 66
Rome, Italy
Tel + 39 06 45 23 291
Fax + 39 06 45 23 4006

AfricaJohannesburg,
South Africa
Tel + 27 11 256 79 00
Fax +27 11 256 79 11
Tripoli, Libya
Tel + 218 21 335 1026
Fax + 218 21 335 1257

Kuala Lumpur, Malaysia
Tel + 60 3 2163 0233
Fax + 60 3 2163 0211
New Delhi, India
Tel + 91 11 4357 9003
Fax + 91 11 4357 9024
Seoul, South Korea
Tel + 82 2 798 49 25
Fax + 82 2 798 49 27
Singapore, Singapore
Tel + 65 67 37 50 77
Fax + 65 67 33 58 15
Sydney, Australia
Tel + 61 2 88 64 05 08
Fax + 61 2 88 64 05 01
Taipei, Taiwan
Tel + 886 2 2712 15 94
Fax + 886 2 2712 10 89

Abu Dhabi, UAE
Tel + 971 2 681 28 78
Fax + 971 2 681 10 27
Cairo, Egypt
Tel + 20 22 794 86 71
Fax + 20 22 795 73 17Doha, Qatar
Tel + 974 411 0752
Fax +974 411 0784
Muscat, Oman
Tel + 968 24 601 922
Fax + 968 24 602 845
Riyadh, Saudi Arabia
Tel + 966 1 46 53 456
Fax + 966 1 46 30 844

North America
Ottawa, Canada
Tel + 1 613 230 39 02
Fax + 1 613 230 14 42

The lower EBIT * reﬂected a charge
for delays on the A400M transport
aircraft, Airbus’ Power8 restructuring
and A350 XWB charges. The weak
U.S. dollar also had a negative impact.

EADS GROUP

Revenues

1)

€m

2007

2006

2005

39,12339,43434,206

€m

52

399

2,852

Net Income 2)

€m

- 446

99

1,676

2)

€

- 0.560.12

2.11

Dividend per share€

0.123)

0.12

0.65

1)

4,229

5,489

EBIT *

Earnings per share
Net cash position

€m

7,024

1) 4)

€m

136,799

69,01892,551

Order book 1) 4)€m

339,532

262,810253,235

116,493

116,805

113,210

Order intake
Employees

A stronger net cash position resulted
from improved cash ﬂow from operations
and a reduced capital expenditure, mainly
thanks to stricter criteria on investment
decisions.

The order book reached an
all-time high after new orders
doubled, with a vast upswing
at Airbus as well as remarkable
growth at Eurocopter andDefence & Security.

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

MBDA consolidated at 37.5% in 2007, compared with 50% in 2006; ﬁgures of 2006 are not restated; to achieve a comparable basis, the following impacts ofthe consolidation change on 2006 ﬁgures have to be taken into account: € - 418 million on Financial Year (FY) 2006 revenues, € -30 million on FY 2006 EBIT,€ -249 million on FY 2006 net cash position, € -329 million on FY 2006 order intake, € -1,691 million on FY 2006 order book.

2)

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.

3)

To be proposed to the EADS Annual General Meeting 2008.

4)

Contributions from commercial aircraft activities to EADS order intake and order book based on list prices.
EA DS AT A GL A NCE 2007

III

CONTENTS

1)

THE DIVISIONSAIRBUS
Airbus is a leading commercial aircraft manufacturer. Its customer focus,
commercial know-how, technological leadership and manufacturing efﬁciency
consistently win it 40 – 60% of all orders for aircraft of 100 seats or more.
(€ m)

2007

2006

Variation

Revenues

25,12625,190

+ 0%

- 881

- 572

- 54 %A380

EBIT
Order intake

117,323

53,367+ 120 %

Order book283,829

210,115+ 35 %

In number of aircraft
Deliveries

453

434

+ 4%

Order book

3,421

2,533

+ 35 %MILITARY TRANSPORT AIRCRAFT

A400M

Military Transport Aircraft designs, manufactures and sells special mission aircraft for
specialised military and security tasks such as in-ﬂight refuelling capabilities or maritime surveillance. Products include heavy, medium and light transports, as well as the
Airbus based tankers, which leverage all the efﬁciencies of Airbus commercial aircraft.

(€ m)

2007

2006

Variation

Revenues

1,140

2,200

- 48 %

EBIT

- 155

75

- 307 %

Order intake

784

1,594

- 51 %

Order book

19,932

20,337- 2%

EUROCOPTER
Eurocopter is the world’s leading helicopter manufacturer. It captures morethan 50% of sales for civil and parapublic helicopters and has a strongly growing
military business.

(€ m)

2007

2006

Variation

Revenues

4,172

3,803

+ 10 %

TIGER

EBIT

IV

211

257

- 18 %

Order intake

6,584

4,885

+ 35 %

Order book

13,455

11,042+ 22 %

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

ATV
AUTOMATED TRANSFER VEHICLEASTRIUM
Astrium is Europe’s preeminent space group and the third largest worldwide.
It is the leading European supplier of satellites, launchers and space services.
It plays a key role in Europe’s institutional and military space programmes.

(€ m)

2007

2006

Variation

Revenues

3,550

3,212

+ 11 %

174

130+ 34 %

EBIT
Order intake

4,492

4,354

+ 3%

Order book

12,895

12,263+ 5%

DEFENCE & SECURITY

EUROFIGHTER

Defence & Security is the main pole for EADS’ military and global security
activities. It has a wide range of platforms, including EADS’ role in Euroﬁghter,missile systems, defence communication systems, defence electronics
and services.

(€ m)

2007

2006

Variation

Revenues

5,465

5,864

- 7%

EBIT

340

348

- 2%

Order intake

7,540

5,191

+ 45 %

Order book

17,886

17,570+ 2%

CONTENTSMBDA consolidated at 37.5% in 2007, compared with 50% in 2006; ﬁgures of 2006 are not restated; to achieve acomparable basis, the following impacts of the consolidation change on 2006 ﬁgures have to be taken into account:€ - 418 million on Financial Year (FY) 2006 revenues, € -30 million on FY 2006 EBIT, € -329 million on FY 2006
order intake, € -1,691 million on FY 2006 order book.

OTHER BUSINESSES (not belonging to any Division)

ATR 72-500

EADS bundles its activities in turboprop aircraft, general aviation and freighter
conversion, its aerostructure and aircraft seats business. Therefore, the Business
Units ATR, EADS EFW, EADS Socata and EADS Sogerma are allocated to
Other Businesses, which is not a stand-alone EADS Division.

(€ m)

2007

2006

Variation

Revenues

1,269

1,257

+ 1%

EBIT

94

- 288

+ 133 %

Order intake

1,729

1,469

+ 18 %

Order book

2,444

2,292

+ 7%

EA DS AT A GL A NCE 2007

V

MAJOR PROGRAMMES AND PRODUCTS | AIRBUS

A380
Delivering the world’s most efﬁcient aircraft
The new A380 double-decker is the most spaciousand efﬁcient aircraft ﬂying today. It has 525 seats
and allows airlines to offer customers an unrivalled
level of comfort. Conceived to bring airlines speciﬁc
economic and environmental beneﬁts, it increases
capacity on long haul routes where landing slots arelimited and lowers costs per passenger. The A380
is the only passenger aircraft of this size.

A320 FAMILY
The world’s most popular aircraft
With more than 5,800 A320 aircraft ordered, thissingle-aisle plane continued to be the best selling
Family of commercial jets ever. The A320 Family
responds to airlines’ needs for optimised cabin layouts, better baggage and cargo handling, maximum
operational ﬂexibility on short- and medium-haulroutes and lower operating costs.

A350 XWB
Responding to airline demand
The A350 XWB (extra wide body) is Airbus’ newest
aircraft and its response to demand for a mediumcapacity, long-range, wide-body Family. With afuselage made largely of carbon ﬁbre, its low weightmeets the challenges of high fuel prices and environmental concerns. The wide-body gives passengers
greater comfort on long journeys. Launched in 2006,
the A350 XWB is still in development with theﬁrst delivery scheduled for 2013.

A330/A340
Providing versatility
The A330/A340 Family has the versatility for either
regional routes or long-range ﬂights. One basic
airframe is available in six different conﬁgurations,powered by two or four engines. The twin-engine
A330 is designed to generate maximum revenue
and low operating costs on regional and extendedrange routes while the four-engine A340 provides
ﬂexibility on the most demanding long-range andultra-long-range ﬂights.

VI

MILITARY TRANSPORT AIRCRAFT

A330 MRTT
Innovative air-to-air refuelling
The A330 MRTT (Multi-Role Transport Tanker) is the world’s leading air-to-air refuelling aircraft with a huge
basic fuel capacity. It has been selected by air forces in the United States (with Northrop Grumman as prime
contractor), Australia, the Middle East and the United Kingdom. Fuel is passed through an innovative ﬂy-bywire refuelling boom that delivers a larger refuelling envelope and better control than other systems. The aircraft
is a derivative of the successful Airbus A330/A340 Family. The A330 MRTT had its ﬁrst ﬂight in June 2007.

EADS CASA CN-235/C-295
World leading transporters

The A400M is designed to replace ageing ﬂeets ofheavy transport aircraft in service with air forces
around the world. It has more than twice the payload and volume of the aircraft it is intended toreplace. The A400M’s ﬁrst ﬂight is scheduled forsummer 2008.

The EADS CASA CN-235 and C-295 are
medium-weight, twin-engine turboprop transport
aircraft capable of operating from short and unpaved
runways. They are world leaders in their category,
serving air forces all over the world.

EA DS AT A GL A NCE 2007

VII

CONTENTS

A400M
Setting new airlift standards

MAJOR PROGRAMMES AND PRODUCTS | EUROCOPTERÉCUREUIL
A high-performance helicopter
The Ecureuil, which carries up to seven passengers,
is renowned for its high performance, safety andlow operating costs. Extensive use of composites,
signiﬁcant load-carrying capacity and a roomy cabingive it the ﬂexibility to be useful both as a utility
helicopter and for ferrying passengers. It is valued
for missions from ﬁre control to medical transportand police work.

EC135 AND EC145
Matching innovation to customer needs

NH90
State-of-the-art multi-role helicopter

The EC135 and EC145 light twin-engine, multimission helicopters are made using the latest carbon
ﬁbre technologies. They have bearingless main
rotors and innovative tail rotor systems designed toensure outstanding manoeuvrability, as well as an
exceptionally quiet and smooth ride. Variations havebeen designed speciﬁcally for VIPs, as well as rescue
and police work.

The NH90 medium-weight, multi-role militaryhelicopter represents the state-of-the-art in rotary
wing and mission systems technology. It has twobasic variants, the Tactical Transport Helicopter andNATO Frigate Helicopter.

TIGER
Battleﬁeld efﬁciency
The Tiger is an air-to-air combat and ﬁre-support
medium-weight helicopter, ﬁtted with twin engines.
It is difﬁcult to detect on the battleﬁeld – visually,by radar or infrared. Weapons and associated ﬁrecontrol systems are designed for maximum efﬁciency.

VIIIASTRIUMGALILEO
Europe’s satellite navigation system
Galileo is the new European satellite navigation
system comprising a satellite-based network for precise positioning and timing information. Consistingof 30 satellites and associated ground infrastructure,
it will have commercial and public applications.
Astrium is playing a major role in Galileo’s designand development.

ARIANE 5
The next-generation satellite launcher
Ariane 5 is a powerful heavy-lift satellite launcher. Its payload capacity of up to ten tonnes meets theevolving demands of both commercial and government markets. Since becoming operational in 2005,
it has proved reliable and ﬂexible in 22 successful starts in a row.

COLUMBUS & ATV
Europe’s contribution to the International
Space Station
The Columbus space laboratory and the unmanned
Automated Transfer Vehicle (ATV) are Europe’s
contribution to the International Space Station.
Columbus and the ATV were successfully launchedin early 2008.

CONTENTS

PARADIGM
Telecom service provider for armed forces
Paradigm is the world’s ﬁrst commercial provider ofmilitary satellite communications. Through theSkynet 5 programme, Paradigm will deliver securecommunications to the U.K. armed forces up toat least 2020. The Skynet 5 contract is an innovative
Private Finance Initiative scheme worth £3.6 billion.

EA DS AT A GL A NCE 2007

IX

MAJOR PROGRAMMES AND PRODUCTS | DEFENCE & SECURITY

GLOBAL SECURITY
Managing security threats worldwide
Threats to national security are an increasingly global phenomenon. Intensiﬁed trade and communication are magnifying the potential impact on nations and their governments. EADS helps to ensure the safety and security ofcountry borders, urban areas and critical infrastructures such as data centres and power supplies. Solutions focus
on developing security management capabilities through increased collaboration and the use of advanced technologies and integrated information systems.

SECURE NETWORKS
Supplying secure wireless communications
The Professional Mobile Radio (PMR) businesssupplies secure wireless communications, typicallyfor public safety organisations and the public transport sector. These communications systems are inmuch demand, particularly as the need for absolutely reliable mission-critical systems grows. PMR
possesses both TETRA and TETRAPOL technologies, allowing it to offer customers ﬂexibility intheir choice of radio system.

MBDA
Delivering innovation andtechnological excellence
MBDA, the world’s largest missile company, has arecord for innovation and technological excellence.
The ASTER 30 SAMP/T, a next-generation mediumrange surface-to-air missile used to protect against
hostile aircraft and other missiles, is among the mostmodern missile systems currently in active service.
The Meteor is a next-generation air-to-air missile
with a range exceeding 100 kilometres and a speedof more than Mach 4.

EUROFIGHTER
The most modern combat aircraftEuroﬁghter is the most modern multi-role combat
aircraft currently in production. The plane uses
integrated systems, an optimum human-machineinterface and state-of-the-art carbon-ﬁbre production technologies. Euroﬁghter has a strong orderbook in Europe, where deliveries are currently
underway, and is also winning export orders.

X

OTHER BUSINESSESSOCATA TBM 850
Speed and economy
The TBM 850 turboprop combines the speed of a light jetwith the economy of a singleengine turboprop. It has thepower to climb to 31,000 ft inas little as 20 minutes, and therange to ﬂy across the whole ofEurope or Australia. On landing, it can slip onto strips as
short as 2,100 ft or mountainrunways. The cabin is spacious,
comfortable, air-conditioned
and quiet.

ATR 42-500 & 72-500
The answer for regional routes

CONTENTS

The ATR family of turboprop aircraft has theability to land on short runways and beneﬁts fromlow fuel burn. Consequently, they reduce air trafﬁccongestion at airports, have low operating costs andrelatively low environmental impact. At the centreof the latest generation ATR aircraft family are the50-seater ATR 42-500, which entered into service in
1995, and the stretched 70-seater ATR 72-500 version, which followed it in 1997. The two planes arehighly competitive for ﬂying regional passenger
routes, with low passenger per kilometre costs andproven reliability.

EFW
Freighters with all the Airbus advantages
EFW (Elbe Flugzeugwerke GmbH) is EADS’ centre
of competence for converting Airbus passenger aircraft into freighters and performing the associatedmaintenance. EFW carries out conversions into
well-known freighters such as the A300-600F and
the A330-200F. The freighters have all the advantages of commonality and ﬂy-by-wire controls associated with Airbus aircraft. Additionally, EFW isthe centre of competence for manufacturing ﬁbrereinforced sandwich components for the interior
furnishings of the entire Airbus family.

EA DS AT A GL A NCE 2007

XI

THE YEAR 2007 IN REVIEW
14 TH JUNE
Commitment to environmental targets
Airbus targets 30% reduction incompany energy consumption and
50% reduction in aircraft CO2
emissions by 2020. This follows
Airbus becoming the ﬁrst aerospace company to receive ISO
14001 environmental certiﬁcation
covering all sites and products
on 15th January.

15 TH JUNE
First ﬂight of A330 MRTT
The ﬁrst aircraft of the new generation A330 MRTT successfully
performs its maiden ﬂight. The
aircraft performs a 180-minute
ﬂight running through a planned
series of tests.

20 TH MARCH
Integrated security
systems wins
EADS Defence & Security wins
position with its FiReControl
system as preferred bidder tosupply a control room system forEngland’s ﬁre and rescue services.
A second major security leadsystems integrator role follows inJune when Qatar contracts EADS
to build its National Security
Shield System, a state-of-the-art
electronic surveillance system protecting coastal and land borders.

23 RD JUNE
35 Ariane 5 launcher orders

19 TH JUNE
Light Utility Helicopter
enters service
The U.S. Army equips its ﬁrst
operational unit with EADS
North America’s UH-72A
Lakota Light Utility Helicopter.

XII

Arianespace signs a memorandumof understanding for 35 Ariane 5satellite launchers from Astrium,in addition to the 30 ordered in
2004. The new launchers will be
supplied from 2010.

16 TH JULY
Corporate governanceamendedEADS core shareholders, alongwith management, decide tosimplify the management structure and appoint a single Chief
Executive Ofﬁcer and Chairman.
The previous dual management
structure was amended in theinterests of efﬁciency and cohesiveness, as well as governancebest practice.

17 TH OCTOBER
A400M delay announced

15 TH OCTOBERFirst A380 delivered
Airbus ofﬁcially hands over theﬁrst A380, the world’s largest andmost modern passenger aircraft,to Singapore Airlines in a ceremony
at the Toulouse Delivery Centre.
The A380 sets new benchmarks,
reducing fuel burn per passenger,
increasing comfort and having thequietest cabin in the sky.

EADS revises its estimate for theﬁrst aircraft deliveries to European
and other customer nations,
expecting delays of six months
with a risk of further slippageof another six months.

14 TH NOVEMBER
Dubai Air Show record orders
The Dubai Air Show inNovember ends with 163 ﬁrm
orders for Airbus, valued atmore than USD 28 billion at
catalogue prices. The Emirates
airline gives Airbus its largest
ever single order in terms ofvalue, for 70 A350 XWB and
11 A380. In June, the Paris
Air Show also brings buoyant
orders, with 425 ﬁrm orders for
Airbus and 114 for Eurocopter.

Airbus delivers its 5,000 th aircraft,an A330-200, just 33 years after
delivering its ﬁrst aircraft, an
A300B2, to Air France in 1974.
In 1993, Airbus delivered its
1,000 th aircraft, and in 1999
reached the 2,000 th. Reﬂecting
rapid growth, the 3,000 th Airbus
aircraft was delivered in 2002,
and only three years later, in 2005,
the 4,000 th.

EA DS AT A G
GLL A NNCE
CE 2007

XIII

CONTENTS

14 TH DECEMBER
Airbus delivers 5,000 th aircraft

EADS SHARESIn 2007, EADS’ share price tracked the
U.S. dollar, which fell 10% against the euro
undermining Airbus’ competitiveness andcompounding doubts about the Company’s
ability to restore proﬁtability. October’s
announcement of delays to the A400M
programme also weighed on the shareprice. Neither the year’s buoyant orders nor
improvements to the management structure
improved sentiment. On 31st December 2007,
the share price closed at € 21.83, 16% lower
than year end 2006, underperforming the
CAC 40 index which gained 1.3%.

SHAREHOLDER STRUCTURE AS OF 31ST DECEMBER 2007

XIV

22.52%

Daimler 1)

27.53%

Sogeade 2): Lagardère and French state holding company Sogepa

5.49%

SEPI (Spanish state holding company)

0.52%

Treasury shares (without economic or voting rights)

43.94%

Institutional, retail and employee ownershipplus shares held out of the contractual partnership by the French state1)

On 9 th February 2007, Daimler reached an agreement with a consortium of private and public-sector
investors by which it will reduce its shareholding in EADS by 7.5%.

2)

On 4 th April 2006, Lagardère issued mandatory exchangeable bonds. The EADS shares deliverable
at the maturity of the bonds will represent a maximum of 7.5% of the share capital of EADS.
Lagardère already delivered 2.5% out of the 7.5% in June 2007.

Please refer to www.eads.com for further information or write to us at: ir@eads.com.

Weakness in the U.S. dollar leads toshare price falls. Investors calculate thatfurther dollar falls are placing pressure
on Airbus margins and making it more
difﬁcult for the Power88 restructuring
programme to restore proﬁtability.

EADS announces delays to the
A400M heavy military transport programme due primarily
to slow progress in engine andsystems development.

SHARE PRICE EVOLUTIONAS OF 31 ST DECEMBER 2007 (close price)

Base 100: 10 th July 2000

EADS share price in €

200

36.0

180

32.4

160

28.8

140

25.2

120

21.6

100

18.0

80

14.4

60

10.8

40

7.2

20

3.6
J
2005

F

M

2006

The ﬂood of orders announced at the Paris
Air Show in June, mainly for Airbus but
also Eurocopter and Astrium, spark ashort share price rally. The announcementof corporate governance changes and asingle management structure reinforces
positive sentiment.

M

J

J

A

S

O

N

D

2007

Investor sentiment
improves a little towards
the year end, following
record order inﬂows andevidence that management
is taking action to tackle
its challenges.

PROFILE
ISIN Code NL0000235190
Number of issued shares as of 31st December 2007: 814,014,473
High in 2007 on Paris Stock Market: € 26.29 on 2nd January
Low in 2007 on Paris Stock Market: € 19.35 on 17th August

EA DS AT A GL A N
NCE
CE 2007

XV

CONTENTSEADS
CAC 40MSCI World Aero/Defence (in €, adjusted daily USD/€ rate)AEADS GLOBAL FOOTPRINTNORTH AMERICA
20% OF GROUP REVENUESEUROPE
45% OF GROUP REVENUES

2007

2007

Revenues

€ bn

7.9

Revenues

€ bn

17.4

Sourcing

€ bn

7.3

Sourcing

€ bn

25.3

Order intake

€ bn

15.5

Order intake

€ bn

2,372

Employees

Employees

EADS in North America is a supplier and industrial
partner to U.S. defence and homeland security, commercial
aviation, telecommunications and services. It has been
selected to provide major equipment programmes for the
Army, the Coast Guard and, most recently, for the
Air Force’s new KC-45A refuelling tanker with partner
Northrop Grumman. EADS sources signiﬁcant, andgrowing, volumes of engines, systems and equipment inNorth America, building on the local aerospace industry’s
expertise.

42.9
112,087

EADS leverages Europe’s capabilities and competitiveness.
Transforming Airbus will renew the spirit of European
aerospace, while the ramp-up of defence programmes will
support growth. EADS is, additionally, expanding cooperation with Russia. Sourcing relationships have grown overdecades. Mainly in our home countries, they take advantageof the well-established European aerospace industry andcover all areas and materials.

20%
20
0%
REST OF THE WORLD
6% OF GROUP REVENUES
2007
Revenues

€ bn

2.5

Sourcing

€ bn

0.1

Order intake

€ bn

4

Employees

630

Widespread business successes in other growth regions
provide the basis for EADS’ further internationalisation.
All sourcing efforts are designed to open up the most
attractive markets and to develop the Group’s industrialbase. Latin America is a dynamic economic region offering
numerous commercial and industrial opportunities for all
EADS’ activities. South Africa is a partner in the A400M
programme.

XVI
XVI

6%
6
%

MIDDLE EAST
6% OF GROUP REVENUES

ASIA-PACIFIC
23% OF GROUP REVENUES

2007

2007

Revenues

€ bn

2.5

Revenues

€ bn

8.8

Order intake

€ bn

44.2

Sourcing

€ bn

0.4

306

Order intake€ bn

Employees

Employees

In 2007, the Middle East was a key market for EADS.
Divisions have either consolidated their presence(MBDA, Eurocopter and Astrium) or made signiﬁcantbreakthroughs in new ﬁelds such as border surveillanceor air-to-air refuelling aircraft. In commercial aircraft,almost all the region’s major carriers have chosen togrow and modernise their ﬂeets with Airbus. They areimportant customers for the A380 and the A350 XWB.

30.2
1,098

Within the high growth of Asia-Paciﬁc, countries like
China, India and South Korea are a high priority. In joint
projects such as the EC 175, the KHP helicopter development or the set-up in China of an A320 Family Final
Assembly Line, EADS has teamed with high-quality local
partners combining industrial capabilities with market
know-how. EADS must be a committed citizen in thesemarkets to participate in their growth.

CONTENTS

45
4
5%
5%
45%
23%
6%
%

EA DS AT A G
GLL A NNCE
CE 2007

XVII

EADS ORGANISATIONAL STRUCTURE
as of 1st April 2008
BOARD OF DIRECTORSCHIEF EXECUTIVE OFFICERGROUP FUNCTIONS

Chairman

Chief Executive Ofﬁcer

Chief Financial Ofﬁcer

EADS North America

Rüdiger Grube

Louis Gallois

Hans Peter Ring

Ralph D. Crosby Jr.

Louis Gallois
Rolf Bartke
Dominique D’Hinnin
Juan Manuel Eguiagaray
Arnaud Lagardère
Hermann-Josef Lamberti
Lakshmi N. Mittal
Sir John Parker
Michel Pébereau
Bodo Uebber

Human Resources
Jussi Itävuori

Chief Technical Ofﬁcer
Jean Botti

Chief Strategy
and MarketingOfﬁcerCorporate Secretary
Pierre de Bausset

Marwan Lahoud

General Counsel
Peter Kleinschmidt

Corporate
Communications
Christof Ehrhart

Political Affairs

Executive Committee Member

François Desprairies (FR)
Christoph Hoppe (GE)Emiliano Mata (SP)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
XVIII

DIVISIONSOPERATING COMPANIESAirbusGIE ATREADS Sogerma

Thomas Enders (CEO)Fabrice Brégier (COO)*

Stéphane Mayer

Cédric Gautier

Elbe Flugzeugwerke(EADS EFW)
Andreas Sperl

Military Transport
Aircraft
Carlos D. Suárez

Eurocopter

EADS Socata

Lutz Bertling

Jean-Michel Léonard

Astrium

Astrium Satellites

François Auque

Evert Dudok

Astrium SpaceTransportation

Astrium Services
Eric Béranger

Alain Charmeau

MBDA

Euroﬁghter

Bernd Wenzler

Antoine Bouvier

Aloysius Rauen

Military Air Systems

Defence andCommunications
Systems

CONTENTS

Defence Electronics

Defence & Security
Stefan Zoller

Bernhard Gerwert

Hervé Guillou

The ﬁve Divisions – Airbus, Military Transport Aircraft, Eurocopter, Astrium and Defence & Security –serve the speciﬁc needs of their respective customers, while the Group functions enhance the Company
offering through information exchange, technology sharing and working practice synergies.
* Airbus’ Chief Operating Ofﬁcer and EADS Executive Committee member, responsible for a permanent group-wide mission to ensure EADS enhanced
operational performance.

EA DS AT A GL A NCE 2007

XIX

EADS 2007 AT A GLANCEII EADS Group | IV
V The Divisions | VI Major Programmes and Products
XII The Year 2007 in Review | XIV
V EADS Shares | XVI EADS Global Footprint
XVIII EADS Organisational Structure

The complete EADS Annual Report Suite 2007 consists of:Facinggchallenges.
EADS ANNUAL REVIEW 2007

Deliveringresults.

BOOK TWOBOOK THREE

2

3

Financial
Statements
andCorporate
Governance200744453_EADS_07_E_U_Book2.indd 1

Business,
LegalandCorporate
Responsibility
200744453_EADS_07_E_U_Book3.indd 1

BOOK 1

BOOK 2

BOOK 3

FACING CHALLENGES
DELIVERING RESULTS
Annual Review

FINANCIAL STATEMENTS ANDCORPORATE GOVERNANCE 2007
Registration Document Part 1

BUSINESS, LEGAL AND
CORPORATE RESPONSIBILITY 2007
Registration Document Part 2

Management & Responsibility

Risk Factors

Information on EADS Activities

Together. Facing challenges.
Delivering results.

Net Assets – Financial Position – Results

Corporate Social Responsibility

Corporate Governance

General Description of theCompany and its Share Capital

The Business Year 2007
EADS Drivers
Useful Informationwww.reports.eads.com

Annual Review
2007
2 MANAGEMENT & RESPONSIBILITY
2
6
10

Letter from the Chairman of the Board | 4 The Board of Directors
Corporate Governance | 8 Chief Executive Ofﬁcer’s Statement
The Executive Committee | 12 Strategy

16 TOGETHER. FACING CHALLENGES. DELIVERING RESULTS.

32
40
44

Markets and Perspectives | 36 Airbus
Military Transport Aircraft | 42 Eurocopter
Astrium | 46 Defence & Security

48 EADS DRIVERS
50
56

Innovation | 52 Sourcing | 54 Human Resources
Corporate Social Responsibility

62 USEFUL INFORMATION
64

Glossary | 66 Addresses | 68 Financial Calendar

CONTENTS

30 THE BUSINESS YEAR 2007

MANAGEMENT & RESPONSIBILITY

Letter from the Chairman of the Board

Rüdiger Grube“My task and that of my Board colleagues is to make surethat the momentum the Company currently shows in facing
and tackling its many challenges is sustained.”

2

MANAGEMENT & RESPONSIBILITY
Letter from the Chairman of the Board

DEAR SHAREHOLDERS,For your Company, 2007 was a year of reorientation and a year of
renewal.
In July, a new corporate governance structure took shape – a step
towards good practices in a ﬁeld where EADS had been a subjectof controversy. The core shareholders, in order to ensure long-termcompetitiveness and performance of EADS, addressed important
control and sovereignty challenges.
The various technical and industrial difﬁculties encountered in key
programmes over the past two years weighed heavily on the 2007
full year results. It is evident that shortcomings in programmemanagement not only cause delays that risk alienating customers,
they also put severe strains on proﬁtability. Nobody can be satisﬁedby such performance – neither the Board of Directors nor the management. Furthermore, they are not content with the insufﬁcient
future economic performance suggested by the company’s mid-term
plan, drawn up at a punitive euro versus U.S. dollar exchange rate
at 1.45. I believe that EADS’ share price performance reﬂects asimilar judgment by the market.
We are conﬁdent, however, that the clariﬁcation of roles between
Board and management and the simpliﬁcation of the chain ofcommand are key factors to foster future success for the Company –and its shareholders.
In the early years of EADS, we drew our dynamism from European
cooperation; today, market presence and value creation must tap awider, more global world. Recognising this, the core shareholders
have relinquished Board seats and increased the number of independent members. The newly appointed personalities contributenot only experience and expertise, but also reinforce the entrepreneurial spirit and broaden the global outlook of the EADS
Board of Directors. Clearly, this new Board proves more stimulating and more demanding for top management, as Board discussions
also added emphasis on enhancing the Group’s proﬁtability andreducing risks.
In keeping with market practice, the Audit Committee and theRemuneration & Nomination Committee are now headed by independent directors. The newly created Strategic Committee, which
operates under my chairmanship, has the objective to prepare Board
decisions on strategic matters. Its main role is to evaluate the Company’s overall strategy and portfolio composition as well as toassess major investments, product proposals and acquisition cases.

Beyond all the necessary industrial decisions in support of sustainable and proﬁtable growth, portfolio rebalancing and cost optimisation, the Group’s interests need to be secured for the longterm. The Group needs stability to best serve its role of providing
governments and society with solutions that secure sovereignty
and strategic autonomy.
EADS management itself has repeatedly stated that the change
process which started in 2007 needs to continue. Vision 2020,
launched by Louis Gallois in his new role, the execution of Power8
restructuring plans at Airbus and the call for further measuresin response to the continued weakening of the dollar, as well as the
improvement of the programme management – all of this underscores a determination to renew EADS. My task and that of my
Board colleagues is to make sure that the momentum the Company
currently shows in facing and tackling its many challenges issustained.
The Board of Directors is proposing to the Annual General Meetingof shareholders a dividend of € 0.12 per share. This proposal is a
gesture of appreciation for shareholders’ loyalty and an expressionof trust in our ability to set EADS back on track for sustained
proﬁtability despite the remaining challenges.
To succeed, we need to show conﬁdence, congruence of words
and actions, mutual respect and transparency. Both the work of theBoard of Directors and its relations to the Group’s top management
are characterised by these values. The excellent personal and professional relationship between Louis Gallois and myself may standas an example for bringing these values to life when building thefuture of EADS. Success also requires the motivation of ouremployees and commitment of our management. I want to thankeveryone for their performance in 2007 and I look forward to theircontributions in the period to come.

Rüdiger Grube
Chairman of the Board

After a full year of operation under the new rules, the recomposed
Board will evaluate its internal functioning in order to optimise its
processes and to ensure adequate practices.

EA DS A NNUA L R E VIE W 2 0 0 7

3

MANAGEMENT & RESPONSIBILITY

The Board of DirectorsRÜDIGER GRUBE (56)

ROLF BARTKE (61)

JUAN MANUEL EGUIAGARAY UCELAY (62)Chairman of EADS, Chairman of
the EADS Strategic Committee
Member of the Management Boardof Daimler AG

Chairman of Kuka AG

Director of Studies at Fundación Alternativas

expertise is to tie together“ My
operational excellence and products

am fully committed to tackle the EADS
“ Ichallenges
with all my experience fromthe aerospace industry and from global
operations within the automotive business. I will dedicate all my energy andenthusiasm to prepare this Group for the
future, considering the demands of ourcustomers, employees and shareholders.

that meet evolving customer needs.
I am happy to bring this experience
to EADS at a time of reorganisationof the value chain.

will push EADS to leverage its deﬁning“ Istrengths
which are the diversity of its
resources as well as the breadth of its technologies and markets.

”

”

”

LOUIS GALLOIS (64)

DOMINIQUE D’HINNIN (48)

Chief Executive Ofﬁcer of EADS

Chief Financial Ofﬁcer Lagardère SCA

want to give the people of this“ Icompany
a sense of unity and strong

scrutinize the performance“ Iofwill
EADS through the prism of value

future. This will require substantialchanges of culture and approaches
to doing business. We will measure
our tangible progress year by year.

creation and promote development
options that optimise the strategic
value to shareholders.

”

4

”

MANAGEMENT & RESPONSIBILITY
The Board of Directors

ARNAUD LAGARDÈRE (47)

LAKSHMI N. MITTAL (57)

MICHEL PÉBEREAU (66)

General Partner and CEO of
Lagardère Group

President and Chief Executive
Ofﬁcer of ArcelorMittal

Chairman of the Board of BNP Paribasand 2007 were difﬁcult years for“ 2006
EADS and there are many challenges

give EADS the beneﬁt of my“ Iexpertisein building and operating a

to overcome. I will dedicate all meansat my disposal as a member of theBoard to help EADS to take on theseindustrial and business challenges,
so that the Group can come back withlasting proﬁtable performance while
maintaining its European identity.

global business in a ﬁercely competitive industrial sector.

have a particular interest in excel“ Ilenceof corporate governance to better
serve the shareholders at large. My
independent judgement is valuable
for EADS’ future development.

”

”

”

HERMANN-JOSEF LAMBERTI (52)SIR JOHN PARKER (65)

BODO UEBBER (48)

Chairman of the EADS Audit Committee,
Member of the Management Boardof Deutsche Bank

Chairman of the EADS Remuneration
and Nomination Committee,
Chairman of National Grid

Member of the Boardof Management of Daimler AG

pay continuous attention to“ Ithewillhighest
standard of risk management.

my intimate insight into
“ Ithecontributedynamics of the U.K. market andAs Chairman of the Audit Committee
I am the guardian of ﬁnancial strength.

also bring strong knowledge ofcorporate governance to my work as
Chairman of the Nomination andRemuneration Committee.

”

group with the complexity of“ AEADS
can only beneﬁt from rigor
of processes and quality of its
controls. I give EADS the beneﬁtof my experience in these subjects.

””

For remuneration, detailed CVs of Board Members,
please refer to: www.eads.com or to

BOOK TWO

2
Financial
Statements
andCorporate
Governance200744453_EADS_07_E_U_Book2.indd 1

BOOK 2
FINANCIAL STATEMENTS ANDCORPORATE GOVERNANCE 2007
Registration Document Part 1
29.04.2008 18:26:55 Uhr

EA DS A NNUA L R E VIE W 2 0 0 7

5

MANAGEMENT & RESPONSIBILITY

Corporate Governance

The Group’s governance was streamlined andstrengthened with the introduction of a simpliﬁed
management structure and the appointment offour independent Board Directors.

SHAREHOLDER STRUCTURE AS OF 31 ST DECEMBER 2007

22.52%

Daimler 1)

27.53%

Sogeade 2) : Lagardère and Frenchstate holding company Sogepa

5.49%

SEPI (Spanish state holding company)

0.52%

Treasury shares(without economic or voting rights)

43.94%

Institutional, retail and employee
ownership plus shares held out of thecontractual partnership by the French state1)

On 9 th February 2007, Daimler reached an agreement with a consortium of private andpublic-sector investors by which it will reduce its shareholding in EADS by 7.5%.

2)

On 4 th April 2006, Lagardère issued mandatory exchangeable bonds. The EADS sharesdeliverable at the maturity of the bonds will represent a maximum of 7.5% of the share capitalof EADS. Lagardère already delivered 2.5% out of the 7.5% in June 2007.

6

EADS’ core shareholders and management decided to change thecompany’s management structure and the composition of theBoard in order to simplify management and to improve corporate
governance.
Shareholders approved a new management structure with a single
Chairman, Rüdiger Grube, and a single Chief Executive Ofﬁcer,Louis Gallois, at an Extraordinary General Meeting (EGM) on
22nd October 2007. This replaced the previous dual management
structure, which had two Chairmen and two Chief Executive
Ofﬁcers.
The number of independent members on the Board was increased
from two to four, with the Chief Executive Ofﬁcer remaining theonly executive Director. Furthermore, the Board’s voting rules havebeen amended, with most issues decided by a straightforward
majority vote.
The four independent Directors appointed are:
– Hermann-Josef Lamberti, a member of Deutsche Bank AG’s
Management Board and its Chief Operating Ofﬁcer;– Lakshmi N. Mittal, President andChief Executive Ofﬁcer of ArcelorMittal;– Sir John Parker, Chairman of National Grid;– Michel Pébereau, Chairman of the Board of BNP Paribas.

MANAGEMENT & RESPONSIBILITY
Corporate GovernanceIndependently managed Board committees
Following the October EGM, two of the independent Directors
were appointed to chair two key Board committees – the Audit
Committee and the Remuneration and Nomination Committee.
Mr. Lamberti was appointed Chairman of the Audit Committee.
This committee makes recommendations to the Board on theappointment of auditors and their remuneration, the approvalof the annual ﬁnancial statements and the interim accounts.
It also discusses with the auditors their audit programme andthe results of their audit of the accounts, and monitors theadequacy of the Group’s internal controls, accounting policies
and ﬁnancial reporting.
Sir John Parker became Chairman of the Remuneration and
Nomination Committee. This committee makes recommendations
to the Board regarding appointments of the members of the
Airbus Shareholder Committee, and the Chairmen of the Supervisory Board (or similar organ) of other important Group member
companies and Business Units, as well as appointment of the
EADS Corporate Secretary. It also recommends remuneration strategies and long-term remuneration plans, and decides the service
contracts and other contractual matters in relation to the Board andExecutive Committee members. Once approved by the Chairman,
it also reviews the proposals by the Chief Executive Ofﬁcer for theappointment of members of the Executive Committee and of the
Airbus Chief Executive Ofﬁcer.

New Strategic Committee
As Chairman of the Board, Rüdiger Grube is also Chairmanof the newly created Strategic Committee. This was formedin October 2007 as a resource for preparing Board decisions
relating to strategic issues. The committee met for the ﬁrst
time in February 2008, to review EADS’ Vision 2020 andother matters.

BOOK TWO

2
Financial
Statements
andCorporate
Governance2007

For more detailed information
please refer to the Corporate Governancesection at: www.eads.com or to

BOOK 2
FINANCIAL STATEMENTS ANDCORPORATE GOVERNANCE 2007
Registration Document Part 1

STRATEGIC COMMITTEERÜDIGER GRUBELOUIS GALLOISARNAUD LAGARDÈRE
MICHEL PÉBEREAUBODO UEBBER

AUDIT COMMITTEEHERMANN-JOSEF LAMBERTIDOMINIQUE D’HINNINSIR JOHN PARKER
BODO UEBBERREMUNERATION ANDNOMINATION COMMITTEESIR JOHN PARKER
ROLF BARTKEDOMINIQUE D’HINNIN
HERMANN-JOSEF LAMBERTIEA DS A NNUA L R E VIE W 2 0 0 7

7

MANAGEMENT & RESPONSIBILITY

Chief Executive Ofﬁcer’s Statement

DEAR SHAREHOLDERS, EMPLOYEESCUSTOMERS AND SUPPLIERS,
It is a pleasure for me to address you as the CEO of EADS. I am
truly honoured to stand at the helm of such a great company, at atime of crucial signiﬁcance to its future.
2007 was a year of contrasts. EADS achieved tremendous commercial success: the company doubled its order intake to a recordof € 137 billion, pushing our order backlog to the historical levelof € 340 billion. The very robust market demand propelled Airbus
to new heights, while Defence & Security and Eurocopter also
experienced a remarkable increase in their order intake.

Louis Gallois

MANAGEMENT & RESPONSIBILITY
Chief Executive Officer’s Statement

Astrium again proved the outstanding reliability of its technology,
with 22 successful Ariane 5 launches in a row. We can be proud of
last year’s industrial achievements: thanks to the talent and dedication of all our employees, we were able to ramp up deliveries of ourlegacy programmes seamlessly to a record output. Three A380 haveentered into service to date. The Company is reestablishing control
over its most complex operations.
Our underlying business performed well in revenues and proﬁts,
and the free cash ﬂow, worth € 3.5 billion, was undoubtedly
exceptional. Nonetheless, last year’s ﬁnancial results are undeniably
disappointing, with a weak EBIT of € 52 million and a Net Lossof € 446 million. It is the costs associated with speciﬁc issues, theA380 and A350 XWB programmes, the A400M delay and therestructuring provision for the Power8 programme, that dragged our
performance down. The ever falling dollar also contributed toundermine our ﬁnancial results and remains a threat for the future,
calling for decisive action.
Therefore, key decisions were taken last year in order to restructure
Airbus, allowing a transformation around the core differentiating
capabilities of the company. The ongoing divestment of sites isintended to reduce capital intensity, and the cost saving efforts of
the Power8 programme were more successful than forecast for 2007.
In 2008, as indicated by our EBIT guidance, our results will besigniﬁcantly improved. We will achieve this through programmemanagement excellence, operational improvements and high quality
R&D. We also have to protect ourselves from the dollar threat:very shortly, the Power8 programme will be supplemented withadditional cost saving measures. In the long run, we will have tokeep on increasing our industrial footprint in the dollar zone, aspart of our strategy to become a more global company, and seeka more ambitious economic performance in terms of return on sales
and return on invested capital.

aircraft business. In the defence area, the U.S. Air Force chose
the Northrop Grumman KC-45A refuelling tanker, based on the
Airbus A330, which is a major strategic breakthrough opening
up new perspectives. And the U.K. Ministry of Defence also
contracted EADS to supply the A330 tanker derivative for its
new ﬂeet just 15 days later.
As you will see in the following pages, your company is increasingly well prepared for the future. In 2007, we have implemented
a new corporate governance. Under the chairmanship of Rüdiger
Grube, our new Board is more demanding and stimulating for the
management. As for the Executive Committee, it is now working
as a uniﬁed team, under the leadership of a single chief executive.
This simpliﬁed structure allows greater efﬁciency, with clearer
reporting and accountability, as well as quicker and better making
decision process. One of the most important decisions was to elaborate a new roadmap for the coming years, Vision 2020, providing
our employees a sense of destiny. This will allow us to gather all
EADS entities behind an ambitious strategy immediately cascadedin the form of tangible, operational short-term targets in every
Division and function.
Conﬁdence is returning. Welcome to a re-energised EADS.

Louis Gallois
Chief Executive Ofﬁcer

Many challenges still await us in 2008. Concerns over a potential
slowdown of the American economy have clouded market anticipations, and some observers have also questioned the robustness of
the aircraft market. Nevertheless, we have reasons to stay conﬁdent
and optimistic: emerging markets, certain low cost carriers andleasing companies should remain persistent drivers of our civil

EA DS A NNUA L R E VIE W 2 0 0 7

9

MANAGEMENT & RESPONSIBILITY

The Executive Committee

10FRANÇOIS AUQUE

HANS PETER RINGMARWAN LAHOUDHead of Astrium

Chief Financial Ofﬁcer (CFO)

Mr. Auque was appointed in 2000.
He was previously Chief Financial
Ofﬁcer (CFO) of Aerospatiale andManaging Director for satellites.
He spent his earlier career with theSuez Group and the French Courdes Comptes. Mr. Auque graduatedfrom École des Hautes Études
Commerciales, Institut d’Études
Politiques and is an alumnus of
École Nationale d’Administration.

Mr. Ring was appointed EADS CFO
in 2002, and was also CFO of Airbus“in personal union” in 2007. In 1996,
he was made Senior Vice Presidentof Controlling at Dasa and, subsequently, EADS. From 1992 he was
CFO and Board member of Dornier
Luftfahrt. He holds a degree inBusiness Administration from the
University of Erlangen-Nuremberg.

Chief Strategy
and Marketing Ofﬁcer

Mr. Lahoud was appointed in June
2007. Previously, he was CEO of
MBDA. He worked for Aerospatiale
on its merger with Matra and on
the foundation of EADS. Within
EADS, he served as Senior Vice
President Mergers & Acquisitions.
Mr. Lahoud is an alumnus of École
Polytechnique and graduated fromthe École Nationale Supérieure del’Aéronautique et de l’Espace.

LOUIS GALLOIS

LUTZ BERTLINGFABRICE BRÉGIER

Chief Executive Ofﬁcer (CEO)Head of Eurocopter

Mr. Gallois was appointed in August
2007, having been Co-CEO of EADSand Head of Airbus since 2006. Hespent almost 20 years working forvarious French Ministries, and wasthen Chairman and CEO of SNECMA,
Chairman and CEO of Aerospatiale
and Chairman of SNCF. He graduatedfrom École des Hautes Études
Commerciales and is an alumnus of
École Nationale d’Administration.

Mr. Bertling was appointed in 2006,
following a year as CEO of Eurocopter
Deutschland. He joined Eurocopter in2003 from the Defence & Security
Division. Previously, he held various
positions at DaimlerChrysler Rail
Systems and Braunschweig University.
He earned a PhD in Engineering at
Braunschweig University.

Head of EADS Operational Performance
Chief Operating Ofﬁcer (COO) of Airbus

Mr. Brégier was appointed Airbus COO
in 2006 with additional responsibility
for EADS operational performance.
He became President and CEO of
Eurocopter in 2003. Previously, he
was CEO of MBDA. He joined Matra
Défense in 1993 as Chairman of the
Apache MAW and Eurodrone GIEs. He
is an alumnus of École Polytechniqueand École des Mines.

MANAGEMENT & RESPONSIBILITY
Executive Committee

TOM ENDERSJEAN BOTTISTEFAN ZOLLER

Head of Airbus

Chief Technical Ofﬁcer (CTO)

Head of Defence & Security

Mr. Enders was appointed in August
2007. Previously, since 2005, he
was Co-CEO of EADS. He began his
career with EADS in 2000 as CEOof the Defence and Security Systems
Division. Formerly he had been
Director Corporate Development
and Technology at Dasa. Mr. Enders
holds a Doctorate degree from the
University of Bonn.

Mr. Botti was appointed in 2006.
He joined from General Motors
where he was Chief Technologist andthen Business Line Executive of theDelphi Powertrain business. He
started his career in 1978 as productengineer for Renault. Mr. Botti holds
a degree from INSA Toulouse, an
MBA from Central Michigan University and a PhD from the Conservatoire des Arts et Métiers.

Mr. Zoller was appointed in 2005,
having held top management positions within the Division since
2000. Previously, he held various
management positions within Dasa,
DaimlerChrysler, Dornier and
Senstar/Canada. Mr. Zoller graduatedfrom the University of Tübingenand holds a PhD.

CARLOS D. SUÁREZ

RALPH D. CROSBY JR.

JUSSI ITÄVUORIHead of Military Transport Aircraft

Head of EADS North America

Head of Human Resources

Mr. Suárez was appointed in July 2007.
Formerly, he was Head of Military
Derivatives Programmes of Airbus
platforms. He has also worked forAccenture and Aernnova. Mr. Suárez
holds a degree in AeronauticalEngineering from the Universidad
Politécnica de Madrid and an MBAfrom the IESE business school.

Mr. Crosby has been Chairman andHead of EADS North America since
2002. Previously, he was Presidentof the Integrated Systems Sector at
Northrop Grumman Corporation.
Mr. Crosby holds degrees from the
U.S. Military Academy, the Graduate
Institute of International Studies in
Geneva and Harvard University.

Mr. Itävuori was appointed in 2001
and became a member of the Executive
Committee in 2003. Previously, he
had worked for KONE Corporation
where he was from 1982, being
appointed Head of Human Resources
and a member of the Executive
Committee. Mr. Itävuori graduatedfrom the Vaasa School of Economics,
Finland and served as an air force pilot.

EA DS A NNUA L REVIE W 2 0 0 7

11

MANAGEMENT & RESPONSIBILITY

StrategyWith Vision 2020, EADS now has a clear
roadmap for the future. The Company’s
immediate operational targets directly follow
from this new long-term strategy.

Developing a blueprint for action

2020 strategic goals

Following the initiative of CEO Louis Gallois, EADS has formulated a strategic vision, which has been presented to the Board of
Directors. Called Vision 2020, this blueprint for EADS’ future
articulates how it should grow, become more proﬁtable and change
in shape over the coming years. Not all elements of Vision 2020are new, but it creates a framework for decision-making for theyears until 2020 and sets out a series of medium-term goals thatwill drive concrete action from now on.

The core of Vision 2020 is a better balanced EADS.
Therefore, we aim to achieve:

When formulating the vision, the views of management across
EADS were taken into account. Consequently, it not only reﬂects
the views of the Executive Committee but also those of the top
executive team and senior management within the Divisions.
To transform this Vision into reality, Louis Gallois, Chief Executive
Ofﬁcer, tasked the EADS Top 200 (top executive team) with making
concrete implementation roadmaps. These will support the establishment of building blocks for a group-wide action plan, which will
be closely monitored by our Marketing and Strategy Organisation.

12– A better balance between Airbus and our other activities.
We at EADS are extremely proud of Airbus and its position
as a world leader in its market. But commercial aircraft beinga cyclical and extremely capital intensive business, we haveto increase the share of EADS’ other Divisions in our revenues,
in order to gain more stability and become less dependent
on the evolution of the U.S. dollar. Commercial aircraft now
represents 65% of the Group’s activities. Our goal is to reacha 50/50 balance, through organic growth, partnerships andacquisitions.
– A better balance between platforms and services.
Delivering advanced platforms and systems has long been
EADS’ main focus. Yet, there is also a huge growth potential
in related services. Relying on our strong customer base, we
are in a position to develop high-value services, which are acounter-cyclical and highly proﬁtable activity. Our target is toachieve a 25% service share – against 10% – of business by
2020 (hence revenues at € 20 billion).

MANAGEMENT & RESPONSIBILITY
Strategy– A better balance between our European roots and our
global footprint. EADS is mainly based in Europe, but
our playing ﬁeld is the world. To gain access to new markets,
technology resources and low-cost, dollar-based sourcing, weneed to expand our footprint and our partnerships throughout
the world, especially in the United States and Asia. We aim
to become a truly global industrial company, with 20% of ouremployees and 40% of our sourcing outside Europe.

Aligning resources with priorities
In addition to ﬁnancial means, reaching the targets in Vision 2020
will require signiﬁcant technological and organisational resources.

Furthermore, EADS is facing two major challenges:

EADS will continue to deliver the best of European technology
to serve its customers’ needs for mobility and security. EADS isalready strengthening Group technology synergies. The Groupwill maintain, and where necessary increase, research efforts
in areas such as eco-efﬁciency, while securing higher private andpublic research support.

– Regaining proﬁtability. This remains the Group’s highest
priority: our goal is to recover a substantial margin by achieving
best-in-class operational and ﬁnancial efﬁciency. EADS will
also put the emphasis on capital efﬁciency and focus on corebusinesses to lighten its balance sheet.

People and competency management will be tailored to EADS’
new priorities. Management development will concentrate on getting
the right person for the right position, while encouraging greater
mobility, international diversity and integration. Maintaining anddeveloping strategic competencies will be a priority.

– Moving towards an eco-efﬁcient enterprise. Environmental
issues are to become a transversal driver towards sustainable
development. We at EADS are determined to demonstrate our
responsible attitude and to make eco-efﬁciency a competitive
advantage.

Finally, EADS will become leaner, more integrated, fully transparent and more efﬁcient.

Top priorities for 2008

Airbus will continue the implementation of Power8, and accelerate
it if possible. In order to adapt to the weak dollar, Airbus will
also take additional measures to ensure competitiveness in the
mid-term with a euro versus U.S. dollar exchange rate at 1.45/1.50.

The drive to implement Vision 2020 starts in 2008 and will affectthe entire Group.
Working towards better efﬁciency, we will reinforce programmemanagement in order to achieve our operational goals: stabilise
the A400M and Naval NH90 programmes within deﬁned timeschedules and ﬁnancial frames, ramp up A380 deliveries and meet
the A350 XWB development programme targets.
The expansion of services will be progressed, with ambitious roadmaps in all Divisions. This will focus initially on high-value services
related to platforms and systems. A mission has been established
at corporate level to help the Divisions to grow in the services areas.
In order to increase our global footprint and to help balance
revenues, acquisition projects in the ﬁelds of defence, security
or services should be proposed to the Board, especially in North
America.

Military Transport Aircraft will concentrate on the A400M
programme management and the Refuelling Tanker programmes.
Eurocopter will overcome the technical difﬁculties of the naval
version of the NH90, together with Agusta and its other partners.
Astrium will have to foster European ambition for space at theoccasion of the European Space Agency ministerial conference and toensure prime role for the Galileo space segment. Achieving theindustrial ramp-up of Ariane 5 will also be an important challenge.
Defence & Security priorities will be to secure Euroﬁghter
Tranche 3 and advanced UAV, and to deliver lead system integration
contracts.

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FACING CHALLENGES. DELIVERING RESULTS.

Together.
Facing challenges…

14

2007 was a year of challenges, changes and ﬁrst
achievements. Not every decision we made in the past
year was an easy one; nonetheless, our goal was tokeep moving and make the best decisions possible.
In an increasingly demanding environment we will not
only adapt and improve, but expand towards our one
clear vision: to be a leading player in our market withresponsible and sustainable performance. Our technological leadership and the excellence and dedicationof our employees around the world are the two strong
pillars on which we will build the future for EADS.
To regain and honour the trust of our customers andshareholders will be our reward.

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AIRBUS
Delivery of the ﬁrst A380 to Singapore Airlines in October conﬁrmed the new double-decker
aircraft’s industrial recovery plan was achieving results. At year end, 25 air frames had beenassembled and 10 aircraft had ﬂown.

16

EA DS A NNUA L REVIE W 2 0 0 7

17

MILITARY TRANSPORT AIRCRAFT
After announcing in October deﬁnite delays of six months to the A400M heavy transport
programme, and possible delays of a further six months, management took action to tackle
the root causes.

18

EA DS A NNUA L REVIE W 2 0 0 7

19

EUROCOPTERManagement is reorganising the successful NH90 medium-weight, multi-role military helicopter
programme, due to the industrial complexity caused by a large number of variations on the basicmodel. Eleven aircraft had been delivered at year end.

20

EA DS A NNUA L REVIE W 2 0 0 7

21

ASTRIUM
The launch of the Columbus space laboratory, Europe’s contribution to the International Space Station,shortly after the year end, was a signiﬁcant technological achievement. Astrium is acting as prime
contractor for the € 2.6 billion programme, on behalf of the European Space Agency.

22

EA DS A NNUA L REVIE W 2 0 0 7

23

DEFENCE & SECURITY
Euroﬁghter is the most technologically advanced ﬁghter aircraft in production. Its capabilities
are recognised, as shown by export order wins from Austria and Saudi Arabia.

24

EA DS A NNUA L REVIE W 2 0 0 7

25

EADS GROUP
People are EADS’ greatest asset. Group-wide programmes like the Corporate Business Academy
for developing talents are strengthening integration and developing future leaders.

26

EA DS A NNUA L REVIE W 2 0 0 7

27

…Delivering results.
EADS delivered on many key targets in 2007.
At Airbus, a record number of aircraft, 453, were delivered.
This included the ﬁrst A380 super-jumbo, meeting its revised
delivery plan.
At Astrium, the Paradigm secure satellite communications
project hit key scheduled milestones, with the launch of two
Skynet 5 satellites, thus removing considerable risk from theoverall programme.
At Eurocopter, after a difﬁcult start in 2006, the NH90 multirole military helicopter was a particular focus. Six Type
Certiﬁcations have been achieved so far.
Major commercial goals were reached across the Group.
The re-launched A350, with its extra wide body, gained theairlines’ approval, winning signiﬁcant orders. Meanwhile,
Airbus’ Power8 reorganisation exceeded its targets, andthe reshaping of defence sites was completed in France
and started in Germany.

28

Record order book: € 339.5 billion
Free cash ﬂow * increases to € 3.4 billion: +294%
Airbus A350 XWB orders grow rapidly: 290
Airbus A380 orders reach new high: 188
U.S. Light Utility Helicopters already delivered: 18
Saudi Arabia orders A330 Multi-Role Tanker transports: 3
Medium-light military transport aircraft win orders: 19
Saudi Arabia orders Euroﬁghter aircraft: 72
Professional Mobile Radio wins orders: 40
Satellites gain market share of 21 worldwide orders: 30%
Ariane 5 annual production grows: 6* before customer ﬁnancing

EA DS A NNUA L REVIE W 2 0 0 7

29

The
Business
Year
2007

30

The Group won record new orders, with themomentum towards both civil and defence
activities improving. Management took action
to reorganise Airbus and to tackle the root
causes of several programme delays.

30 THE BUSINESS YEAR 2007
32 Markets and Perspectives | 36 Airbus | 40 Military Transport Aircraft
42 Eurocopter | 44 Astrium | 46 Defence & Security

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31

MARKETSAND PERSPECTIVESThe shifting economic order, growing importanceof security and need to protect the environment are
driving change. For commercial aviation, long-term
growth is being tempered by short-term economic
uncertainty.

Over the 2007-2026 period, world passenger trafﬁc is forecast to increaseby 4.9% per annum and the number of frequencies offered on passenger
routes will more than double. With a high yearly trafﬁc growth of 11.5%,
China is expected to lead in world trafﬁc by 2026.

32

THE BUSINESS YEAR 2007
Markets and Perspectives

At a time when developing countries are driving strong growth inaircraft orders, the global credit crunch has dented conﬁdence inthe short term. There are fears that the United States and Europe
will both experience mild recessions, which might impact demand
for aerospace and defence products.
For aerospace and defence companies, U.S. economic frailty has
further weakened the dollar, undermining the competitiveness ofEuropean companies where falling currency hedging is increasing
exposure.
Soaring prices for oil and other raw materials have created a further
headwind to growth and stoked inﬂationary forces. Fierce competition for raw materials makes it harder to secure supplies. Worldtitanium use in aircraft production alone is forecast to grow to
53,000 tonnes in 2008, up from 32,000 tonnes in 2004, according
to the International Titanium Association.

COMMERCIAL AVIATIONIn an unexpectedly strong year, airlines ordered a record 2,754 jets(with 100 or more seats) in 2007, up from the previous high of
2,057 in 2005. In total, Airbus and Boeing now have an orderbacklog for 6,821 planes – equivalent to approximately six years’
production.
Airbus forecasts that passenger and freight trafﬁc will grow at
an average annual rate of 4.9% and 5.8% respectively over the next
20 years. The highest yearly trafﬁc growth is expected to come5
from developing countries, with 11.5% forecast for China, 8.4% 14
12
for India and 6.8% for the Middle East. In the short term, however,4
there is some uncertainty caused by economic weakness and specu- 10
8lation that the long-expected consolidation among U.S. legacy
36
airlines may shortly materialise.
4
2
0
1
-2
-4
0
-6

93 airports,
dealing with 63%
of world trafﬁc,
are already slotconstrained.

Changing operating environment
The operating environment is expected to change considerably.
While liberalisation (such as the Open Skies initiative) will reduce
regulatory constraints, factors such as security, the environment,
network evolution, oil prices and congestion will create newlimitations.

ECONOMIC GROWTH PRIME DRIVER OF PASSENGER DEMAND(in %)
World passenger trafﬁc growth

World GDP growth

14
12
10
8
6
4
2
0
-2
-4
-6

5
4
3
2
1
0
85

87

89

91

93

95

97

99

01

03

05

07

Passenger trafﬁc growth
GDP growth
Source: ICAO, Global Insight, Airbus

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33

THE BUSINESS YEAR 2007

Eco-efﬁcient technology is becoming key, with aircraft manufacturers
building lighter planes and experimenting with alternative fuels.
The development of greener aircraft will accelerate the replacementof aging ﬂeets.
High fuel prices are a threat to airline proﬁtability. In the past
two years, kerosene has roughly doubled in price. According to
the Association of European Airlines, fuel has risen from around
12% of airline operating costs in 2003 to 23% today.
Increasing congestion is causing both Europe and the United States
to develop new air trafﬁc management systems. According to theInternational Air Transport Association, 93 airports, dealing with
63% of world trafﬁc, are already slot-constrained.
Low-cost carriers are entering the next stage in their evolution. The
sector is likely to polarise between operators focused on short-haul
ﬂights and service carriers gaining income yield from long hauls.

DEFENCE
Spending in the United States and some developing countries grewsigniﬁcantly in 2007. The U.S. defence budget expanded by 6.9%
to USD 439.3 billion, with procurement expanding by more than
10%. Additionally, there were pockets of growth in areas such as
India and the Middle East.
Europe, however, showed little growth, with only France and theUnited Kingdom having budgets exceeding 2% of gross domestic
product. The European market has a growing need for integrated
defence and security systems as well as for efﬁcient and complete
service solutions. This trend is likely to stimulate mergers andacquisitions as companies adapt their portfolios and capabilities.
Further rationalisation and consolidation is also expected in orderto overcome fragmentation and duplication of industrial capabilities
and to reduce the technological gap with U.S. peers. Above all,
Europe’s defence companies want to ensure long-term competitiveness on the world markets.
In developing nations, India has one of the largest and fastest
growing budgets (8 – 10% a year). Contracts are generally tied toindustrial cooperation agreements, and European companies
are looking for opportunities to acquire companies and set up
partnerships / joint ventures.

34

Protections fromthreats such as
terrorism, crimeand natural disasters are in signiﬁcant demand.

New military mission types
Military mission types and required capabilities are evolving. Thereis more emphasis on asymmetric warfare and “non-combat” missions.
This includes counter insurgency, peace keeping and humanitarian
missions. Military aircraft is attracting the greatest expenditure,with helicopter spending expected to be especially strong over the
next decade.
Seeking better value for money, governments are increasingly asking
the private sector to ﬁnance, build and operate services. Within
Europe, funds are being aggregated to compensate for ﬂat budgets.
The European Defence Agency is playing a growing role in procurement.

ESTIMATED EVOLUTION OF DEFENCE BUDGETS IN MAIN REGIONS(in USD billion)
1,253.8

2008

1,339.2

2010

1,394.9

2012

1,456.9

2014

1,524.6

2016
USA
EuropeSource: TEAL group

Middle East
Asia-Paciﬁc

Former USSR
Rest of the World

THE BUSINESS YEAR 2007
Markets and Perspectives

SECURITY
With terrorism emerging as the greatest external threat to public
safety in many parts of the world, the global security industry is
growing fast. Technologies such as automatic identiﬁcation, detection
and physical security are in signiﬁcant demand. Geographically,
the security industry is expanding across North America, Western
Europe and Asia.
The United States is expected to have the highest growth rates in
the coming years. The 9/11 attacks led to increased security requirements at airports, ports and railways. The Department of Homeland
Security’s budget was USD 35.6 billion in 2007, up by 7%, withthe private sector expected to spend four times this amount.
In Western Europe, the security industry has grown steadily overthe past decade. In the United Kingdom and Germany, high crime
rates have led to demand for security equipment such as access
control devices and monitoring equipment. At the European
level, the need for a comprehensive security strategy is now being
addressed through the European Security Research Programme.
Funding to develop further technologies protecting citizens fromthreats such as terrorism, crime and natural disasters has been
agreed upon with a budget of € 1.4 billion (2007–2013).

Europe’s institutional space business is expected
to grow at anannual rate of
2.5% until 2010.

WORLD REVENUES BY SPACE SECTOR(in USD billion)
64.4

2001
2002

71.3

2003

74.3
82.7

2004

China and India will most likely be the growth drivers for the
security industry in Asia.

Ground equipment
Satellite manufacturing

SPACE

88.8

2005

106.1

2006
Launch industry
Satellite services

Source: Satellite Industry Association (June 2007)

Worldwide, the underlying trend in the space economy is one of
growth. Institutional budgets (USD 47 billion in 2005 for OECD
countries) and new commercial revenues from space-derived products
and services indicate this to be the case (source: OECD, 2007).
Europe’s institutional space business is expected to grow at anannual rate of 2.5% until 2010. However, the European space industry is currently waiting for decisions to be taken at the European
Space Agency’s ministerial conference in November 2008 to create
the needed momentum for the European space policy.

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35

AIRBUS
Airbus achieved record orders and deliveries, while
beginning to implement its Power8 restructuring
to restore competitiveness.

Airbus is carefully managing its industrial ramp-up, as it increases therate of production for both its new models like the A380 and existing
aircraft like the A320 (pictures).

(€ m)

2007

2006

Variation

Revenues

25,21625,190

+ 0%

EBIT

- 881

- 572

- 54 %

Order intake

117,323

53,367+ 120 %

Order book283,829

210,115+ 35 %

In number of aircraft

36

Deliveries

453

434

+ 4%

Order book

3,421

2,533

+ 35 %

THE BUSINESS YEAR 2007
Airbus2007 surpassed Airbus’ previous records in terms of both orders
and deliveries, while also presenting major industrial challenges.
By year end, the order backlog at more than 3,400 aircraft was thehighest ever, representing full production for the next six years atincreasing rates. Deliveries, which included the ﬁrst A380 doubledecker plane, passed a major milestone with the 5,000 th delivery.
At the same time, management embarked on a major restructuring tosecure the Company’s competitiveness, which has been underminedby sharp falls in the U.S. dollar. The four-year Power8 turnaroundprogramme, launched in February 2007, overachieved its goals
for the year. By 2010 management aims to reduce annual costs by€ 2.1 billion and make cumulative cash savings of € 5 billion.
Airbus deliveries increased to 453 aircraft (434 deliveries in 2006),
representing 51% of the market, and Power8 achieved initial cost
reductions. Revenues remained stable at € 25.2 billion, in spite of adecrease in revenue recognition for the A400M military transport
currently being developed and an unfavourable U.S. dollar impactof € 1,080 million. The Division’s EBIT loss grew to € 881 million(€ -572 million in 2006), reﬂecting charges related to the A400M
programme delay, Power8 and the launch of the reﬁned A350 XWB
medium-capacity long-range aircraft.

Winning record orders
Reinforcing the order backlog, Airbus won 1,458 new ﬁrm grossorders, valued at USD 181.1 billion at catalogue prices. This exceeds
Airbus’ previous record of 1,111 orders in 2005, and represents
a 51% share of the market for aircraft with more than 100 seats,both in terms of units and value. Net orders, after accounting forcancellations, stood at 1,341, totalling USD 157.1 billion at catalogue prices. This represents 49% of the market by units and 48%
by value.
In Asia-Paciﬁc and the Middle East, fast-growing airlines werethe chief drivers of new orders. Demand also remained strong fromlow cost and legacy carriers in Europe and the United States,
which are modernising and expanding ﬂeets.
The A380 won 33 new ﬁrm gross orders, as existing customers
reafﬁrmed their conﬁdence with additional orders and new customers
conﬁrmed the aircraft’s strong appeal.
The A350 XWB received 290 ﬁrm orders from 12 customers,
showing the market’s positive response to the design reﬁnements,
and that it fully meets long-range requirements. At year end,
total ﬁrm orders for the A350 XWB stood at 292.
The A330/A340 Family had its highest ever annual gross orderintake, winning 221 gross orders (187 net) from 29 customers
and increasing its backlog to nearly 400 aircraft.
Airbus’ popular A320 Family of single-aisle planes won 914 grossorders (913 net), closely following 2005’s record of 918. With
more than 5,800 aircraft ordered, the A320 continues to be theworld’s best selling commercial jet.
Strong sales took the Airbus Corporate Jetliner Family past themilestone of 100 sales, just ten years after it was launched.

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37

THE BUSINESS YEAR 2007

Implementing Power8

Managing production increases

Power8 aims to build a “new Airbus”, a fully integrated company
that will be leaner, more efﬁcient and more productive. The result
should be faster aircraft development and a clearer focus on Airbus’
core business – as aircraft architect and integrator, in addition to
supporting the operations of its aircraft.

Airbus is carefully managing its industrial ramp-up, as it increases
the rate of production for both its new models and existing aircraft.

The programme achieved its goals for the year, notably reducing
annual costs more than the year’s € 300 million target. Additionally, integration took a step forward with the eight mostly national
Centres of Excellence consolidated to four fully transnationalorganisations, covering fuselage and cabin, wing and pylon, aftfuselage and empennage, and aerostructures.
EADS and Airbus intend to transform Airbus supply chain by
selling aerostructures manufacturing sites to buyers that will form
long-term partnerships with Airbus, becoming strong tier-one
suppliers.

The industrial recovery plan for the A380 is being implemented.
A total of 25 airframes had been assembled by year end, and ten
A380 have ﬂown, comprising ﬁve test aircraft and ﬁve customer
aircraft. A further development milestone was the freezing of the
new Digital Mock-Up design that will be used for aircraft not
yet assembled, with the ﬁrst Power-On expected in early 2008.
A380 ramp-up will continue in 2008 onwards, with the fullproduction rate of four per month to be attained in 2010.
A320 production is also being ramped up, with production planned
to reach 36 per month by the end of 2008 and 40 per month in2010 – the highest rate ever for a commercial airliner. Additionally,
A330/340 production is scheduled to be eight a month in 2008,
reaching ten per month in 2010.
Simultaneously, Airbus continued to develop its newest aircraft, theA350 XWB, which passed the overall design freeze milestone in
July. By year end, the majority of system suppliers were onboard,
with work allocation almost complete.
The newest member of the A330/A340 Family, the A330-200
Freighter, was launched in January 2007, with ﬁrst delivery scheduled for late 2009.

Increasing international cooperation
Airbus focused on building strategic relationships with international partners in Russia and China.
Airbus signed three new agreements with the Russian United Aircraft Corporation, giving it a 5% stake in the A350 XWB airframe,establishing a joint venture for A320 civil freighter conversion andmaking it a shareholder in the Engineering Centre Airbus Russia.
In China, the joint venture contract for the A320 Final AssemblyLine in Tianjin was signed, and assembly is now scheduled to startin 2009. Airbus will hold 51% of the joint venture, and the Chinese
consortium will hold 49%.

38

THE BUSINESS YEAR 2007
AirbusIndustrial cooperation with China was reinforced by the signingof a memorandum of understanding with the National Development
and Reform Commission allocating 5% of the A350 XWB airframeto the Chinese aviation industry. The associated joint venture manufacturing centre, based in Harbin (China), for composite material
parts and components is expected to open in 2009.

Expanding customer services
In 2007, Airbus continued to develop and expand its comprehensive portfolio of support and services, named Air+, from which
operators can pick and choose according to their individual needs.
New innovative services were developed, such as the Airbus
Flight Hour Services, which helps minimise aircraft on-groundtime during repairs.

India is one of themost dynamic
aerospace markets.

Becoming eco-efﬁcient
Airbus is determined to play a leading role in making aviation
more eco-efﬁcient through technology. It became the ﬁrst aerospacecompany to receive the ISO 14001 Environmental Management
System Corporate Certiﬁcation for all sites and products. Additionally, it announced a commitment to help the aviation industry
grow while reducing its impact on the environment.
Consequently, Airbus signed an agreement to research the beneﬁts
of synthetic jet fuels with several partners including Qatar Airways,
Rolls Royce and Shell International Petroleum.

OUTLOOKAt the end of 2007, Airbus order book further increased to a record
total of 3,421 aircraft. In 2008, orders (around 700 aircraft) are expected
to exceed deliveries once more, although the level of airline demandmight be impacted by the current economy and credit crunch environment. Airbus will deliver more aircraft than it did in 2007, in line withthe planned ramp-up.
Airbus will focus on A350 XWB development work with the goal ofreaching the detailed deﬁnition freeze by year end.
Airbus will continue to increase the A380 production rate in 2008, in
accordance with the delivery plan.
Airbus will continue and expand its Power8 restructuring in order toremain competitive in the face of a weak dollar and to ensure thelong-term future of the company.

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39

MILITARY
TRANSPORT AIRCRAFT
The Division is well positioned to win orders forrefuelling tankers and medium and light aircraft.
Measures are being taken to minimise the A400M
delay and to foster growth.

The A400M ﬁnal assembly is progressing. The ﬁrst airframe has been
completed, and components for the second aircraft have arrived at the
Final Assembly Line (pictures).

(€ m)

2007

2006

Variation

Revenues

1,140

2,200

- 48 %

EBIT

- 155

75

- 307 %

Order intake

784

1,594

- 51 %

Order book

19,932

20,337- 2%

REVENUES BY MARKETS(in % of external revenues)
9% Civil
91% Defence

40THE BUSINESS YEAR 2007
Military Transport Aircraft

Following the appointment of Carlos Suárez as the new Division’s
Chief Executive Ofﬁcer in July, Military Transport Aircraft(MTA) launched a major business transformation with a viewto driving cultural change and strengthening project management.
At the same time, the Division initiated a comprehensive risk
review, the results of which directly impacted the 2007 accounts.
In parallel, management took action to tackle the root causes of
the A400M delay.

Rescheduling A400M

For 2007, the Division’s revenues declined to € 1.1 billion(€ 2.2 billion in 2006) largely due to the postponement of the
A400M Power-On milestone (€ 470 million) to 2008. The
EBIT dropped to a loss of € 155 million (compared with a gainof € 75 million in 2006), mainly reﬂecting adjustment of the
A400M programme margin, as well as inventory impairments
and programme charges.

There are currently orders for 192 A400M, 180 from the launchcountries, eight from South Africa and four from Malaysia.

The order book remained substantial at € 19.9 billion, slightly
below 2006’s € 20.3 billion. This is marginally behind expectations
because the expected tanker orders from Saudi Arabia and the U.K.
have slipped to 2008. In the medium-light turboprop range, a totalof 19 aircraft orders were placed from customers around the world,
including the U.S. Coast Guard with ﬁve additional CN-235 for
its Deepwater programme.

Tankers lift off
Selection in early 2008 of the A330 MRTT (Multi-Role Tanker
Transport) as the new tanker aircraft for the U.S. Air Force wasa major breakthrough in the global tanker market and the U.S.
defence market, creating a solid basis for future growth. EADS
will provide 179 tanker aircraft over the coming years. The
A330 MRTT has won several orders against tough competition.
In 2007, the United Arab Emirates and Saudi Arabia decided topurchase it as their new air-to-air refuelling aircraft. Following
the earlier order by Australia and the closing of the FSTA (Future
Strategic Tanker Aircraft) deal in the U.K. in March 2008, theA330 MRTT is conﬁrmed as the most advanced and capable tanker
aircraft in the market.

The A400M ﬁnal assembly is progressing. The ﬁrst airframe
has been completed, and components for the second aircraft havearrived at the ﬁnal assembly line. “Power-On” milestone waspassed in March 2008. The engine has been mounted on a C-130
test bed for the upcoming ﬂight tests. However, as already disclosed in October 2007, there will be programme delays of six
to 12 months.

OUTLOOK
For the A400M, management is working closely with all internal and external
partners to ensure the ﬁrst ﬂight in summer 2008. Apart from industrialising
the programme, the Division is developing a comprehensive end-to-end
services offering to be available just in time for the entry into service of theﬂeet with the nations. The service strategy is aimed at creating value
for customers and will be a key contributor to widening the programme’s
business case. In direct competition with EADS, several large European
and international aerospace groups are vying for this business.
The Division started a business transformation programme, designated

Horizon 2011. Over the next three years, management will elaborate andimplement plans for reducing costs, growing new products and services,
fostering cultural change and improving internal processes and controls.

Flight tests of the aircraft are continuing, with all aerodynamic
tests successfully completed. The new ARBS (Air-to-air Refuelling
Boom System) performed its ﬁrst in-ﬂight contact with a ﬁghter
plane, and fuel was passed.

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41

EUROCOPTER
2007 was another record year for both deliveries
and orders. International expansion continued andmanagement acted to improve production.

Eurocopter sees the military market as an area of growth and intends tobuild on the success of the NH90, LUH and Tiger attack helicopter (picture).

(€ m)

2007

2006

Variation

Revenues

4,172

3,803

+ 10 %

EBIT

211

257

- 18 %

Order intake

6,584

4,885

+ 35 %

Order book

13,455

11,042+ 22 %REVENUES BY MARKETS(in % of external revenues)
51% Civil
49% Defence

42

THE BUSINESS YEAR 2007
Eurocopter

In a buoyant worldwide helicopter market, Eurocopter deliveries
and new orders reached record levels. Reﬂecting their advanced
capabilities and low lifecycle costs, Eurocopter helicopters captured
more than 50% of the civil and parapublic market in terms ofdeliveries, and continued to grow military orders.
Following a 75% rise from 279 to 488 helicopter deliveries overthe past three years, management started to reorganise the industrial base to prepare for future volume increases. The NH90
medium-weight, multi-role military helicopter was a particularfocus.
Revenues rose substantially to € 4.2 billion (€ 3.8 billion in 2006),
as 488 new military and civil helicopters were delivered (381 in 2006).
EBIT fell to € 211 million (€ 257 million in 2006), reﬂecting margin
correction and provision for delays on the NH90.
Eurocopter received orders for 802 new helicopters worth€ 6.6 billion, an increase of more than 30 % (615 worth € 4.9 billion
in 2006). At the end of December 2007, the order backlog
exceeded € 13 billion (€ 11 billion in 2006).
The order intake was well balanced in all respects. Serial helicopters
generated 74% of orders, customer services 22% and development
and other activities 4%. By product sector, the military accounted for
56% and civil and parapublic 44%. The export rate was a high 51%.

Reorganising the industrial baseIn order to manage output growth of up to 50 % by 2010, theindustrial base is being restructured. Internally, it is being streamlined to reduce complexity and increase productivity. Externally, a“ﬁrst-tier” layer of suppliers is being selected, with the aim of
reducing direct suppliers from 2,600 to 300 over a decade and proportionately increasing dollar-based costs. Furthermore, Eurocopter
will invest increasingly in its core activities of developing andmarketing helicopters and associated services, reducing its asset base.
NH90 production was stepped up, but the large number of model
variants has caused great complexity. The programme is being
reorganised, with internal industrial measures and greater customer
ﬂexibility under discussion.

Growing the global footprint
Eurocopter continued to expand internationally, further developing
its position in target markets. In Europe, the Spanish Albacete plant
was opened and Eurocopter U.K. was founded following acquisitionof the 90 % of McAlpine Helicopters not already owned. In AsiaPaciﬁc, the creation of a joint venture to market the medium-weight
military Korean Utility Helicopter internationally was decided,
joint development of the medium-weight civil EC175 started in
China and an NH90 Final Assembly Line opened in Australia. And
in the United States, the Columbus, Mississippi production line
for the U.S. Army’s Light Utility Helicopter (LUH) was signiﬁcantly
expanded. Eurocopter has delivered 18 UH-72A Lakota helicoptersto the U.S. Army as of year end 2007.
A network of 17 subsidiaries globally allows Eurocopter to provide
services for owners of its more than 10,000 helicopters, the second
largest manufacturer ﬂeet, with services representing a growing
revenue source.

OUTLOOKAt the end of 2007, Eurocopter has a strong order book securing three
years’ activity, and its modern product range is highly competitive. Management sees the military market as an area of growth and intends to build on
the success of the NH90, LUH and Tiger attack helicopter.
Strategically, it will continue to expand internationally, on occasion throughacquisition, and will develop its industrial presence in key growth markets.
Eurocopter will invest to maintain product leadership through technology
programmes and innovation in order to enhance safety, operational scope,
mission effectiveness and economic performance.
Measures to further optimise industrial processes over the mid-term will
be implemented. In particular, management is focusing on the challenging
NH90 delivery.
While cautioning that the economic environment remains volatile, we
expect the positive trend in revenues to continue in 2008, being reﬂected
as well in EBIT evolution.

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ASTRIUM
Following several years of innovation and efﬁciency
improvement, Astrium’s strong competitive positionis shown by its full order book and rising EBIT.

During 2007, Astrium manufactured six of the powerful Ariane 5 ten-tonnes
satellite launchers and won more than 50% of the launcher market.

(€ m)

2007

2006

Variation

Revenues

3,550

3,212

+ 11 %

EBIT

174

130

+ 34 %

Order intake

4,492

4,354

+ 3%

Order book

12,895

12,263+ 5%

REVENUES BY MARKETS(in % of external revenues)
65% Civil
35% Defence

44THE BUSINESS YEAR 2007
Astrium

Astrium achieved a stronger ﬁnancial performance for the third
successive year, with contributions from all three Business Units.
Services passed key milestones in its military secure satellite communication projects and expanded its activities. In Space Transportation, the Arianespace satellite launcher business captured
the highest number of orders in the market. Satellites also won asigniﬁcant share of its market, becoming number one worldwide
for Telecom.

Winning commercial satellite market share

EBIT rose to €174 million (€130 million in 2006) and revenues grewa double digit to € 3.6 billion (€ 3.2 billion in 2006). Signiﬁcantly,
the EBIT margin continued the progressive expansion of the past
three years, attaining a level of approximately 5% compared withjust 4% in 2005. An order book of € 12.9 billion at year end
secures approximately three years’ activity.

Galileo, the planned European satellite navigation system, wasreorganised and is now back on track.

2007’s level of proﬁtability follows several years of investments
in innovation and efﬁciency improvement. Additionally, fast
growth in the Services Business Unit has boosted proﬁtability.

At the end of 2007, all three Astrium Business Units have a strong outlook.
The order book secures more than three years’ activity, with the businesses
all having good competitive positions in their markets.

Expanding the secure communications footprint
Within Services, the Paradigm business’ landmark Skynet 5 projectmade important progress, with the launch of two out of the threecontracted secure telecommunications satellites. This will allow
EADS to provide communication services for the U.K. Ministry of
Defence from 2008 with the new Skynet 5 network. The Business
Unit’s activities expanded with the acquisition of GPT, a Saudi
Arabian company providing secure communications to the Kingdom’s National Guard.
The Space Transportation Business Unit had a strong year. Arianespace, the satellite launching company of which EADS owns 30.5%,
gained from its reliability and ﬂexibility and won more than 50 % of
new orders. The Business Unit manufactured six of the powerful
Ariane 5 ten-tonnes satellite launchers during the year, and Arianespace signed a preliminary order for Astrium to deliver 35 Ariane 5
from 2010. Additionally, France’s new M51 nuclear missile had asuccessful second test ﬂight.

The Satellite Business Unit grew its market share, winning six
commercial telecommunications satellites out of the 21 awarded
globally. Additionally, the Satellite Communications Company“Mubadala” from Abu Dhabi contracted Astrium and Thales
Alenia Space jointly to build two communications satellites,with a ﬁrm order expected in 2008. This made Astrium theworld leader for Telecom in 2007.

OUTLOOK

After a period of investment, as well as both technical and commercial
innovation, Astrium is now collecting its reward. Both the Ariane 5 launcher
and Eurostar 3000 modular satellite are technically mature. Furthermore,
the Services business model has now proved itself and is contributing to
the improving ﬁnancial performance.
Internally, the Division will undertake a number of speciﬁc initiatives in2008 to improve economic efﬁciency, technical capabilities and productinnovation.
As yet there are no signs of economic weakness impacting Astrium’s
markets, revenues and EBIT should continue their expansion during 2008.
The EBIT margin should also continue to climb.

Space Transportation’s contribution to the International Space
Station made signiﬁcant progress. Columbus, the European spacelaboratory and the unmanned Automated Transfer Vehicle (ATV)
were successfully launched in 2008. Astrium was prime contractor
on both of these projects.

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45

DEFENCE & SECURITY
The Division’s strong order book contributed toachieving EADS’ goal of a better balance between
commercial aerospace and defence revenues.

The ﬁrst tranche of the Euroﬁghter, the high-performance multi-role combat
aircraft, is almost completed (141 out of 148 aircraft were alreadydelivered). Final assembly of the ﬁrst Tranche 2 aircraft has begun, with
18 in advanced ﬁnal assembly at the end of 2007.

(€ m)

2007

2006

Variation

Revenues

5,465

5,864

- 7%

EBIT

340

348

- 2%

Order intake

7,540

5,191

+ 45 %

Order book

17,886

17,570+ 2%

REVENUES BY MARKETS(in % of external revenues)
4% Civil
96% Defence
MBDA consolidated at 37.5% in 2007, compared with 50% in 2006; ﬁgures of 2006 are
not restated; to achieve a comparable basis, the following impacts of the consolidation
change on 2006 ﬁgures have to be taken into account: € - 418 million on Financial Year (FY)2006 revenues, € -30 million on FY 2006 EBIT, € -329 million on FY 2006 Order intake,€ -1,691 million on FY 2006 0rder book.

46

THE BUSINESS YEAR 2007
Defence & Security

Defence & Security (DS) made solid progress, contributing to
EADS’ goals by growing its order book and furthering its strategic
aims. Strong orders came from both defence and security activities,
including Euroﬁghter, EuroHawk, avionics, communications andglobal security. Progress was made in potential high growth areas,such as Lead Systems Integration and Unmanned Aerial Vehicles(UAVs). Management initiatives reduced structural costs andincreased efﬁciency.

UAVs also made progress. Germany awarded a contract to EuroHawk GmbH, a joint venture with Northrop Grumman, forthe development, testing and support of the EuroHawk system.
And the German Defence Ministry contracted DS to analyse andreﬁne enabling technologies and operating concepts for the Agile
UAV. Germany, France and Spain tasked EADS to evaluate risk
reduction for a modular reconnaissance and surveillance UAV.

Improving operational performance
For 2007, the Division’s EBIT of € 340 million is above last year’slevel (€ 318 million in 2006, restated to reﬂect MBDA consolidation
at 37.5% rather than 50 %). Revenues remained stable at € 5.5 billion (€ 5.4 billion in 2006, restated).
The order book expanded to € 17.9 billion (€ 15.9 billion in 2006,
restated). Notable contributors were Saudi Arabia’s order for
72 Euroﬁghter planes, signed with BAE Systems, and more than
40 new Professional Mobile Radio (PMR) contract wins.
Euroﬁghter’s Tranche 2 version passed important milestones.
The Euroﬁghter consortium had delivered 141 Tranche 1 aircraftout of 148 at the end of 2007, with the rest in ﬁnal assembly.
Saudi Arabia’s is the second export order, following Austria’s.
MBDA conﬁrmed its position as a world-leading missile systems
company with sales of more than € 3 billion. Export orders forground-based defence and anti-tank missiles came from the Middle
East and elsewhere. Production of Storm Shadow, MICA, Brimstone,
Aster, Rapier and Taurus contributed substantial revenues.

Progressing in high growth sectors
Secure Networks’ orders exceeded those for 2006, which was
already a strong year. Notable contracts were received from France’s
ﬁre and emergency services, as well as from China. Secure Networks
delivered on-time and on-quality to Hungary and Germany, among
others.

Better business processes enhanced operational performance. Initiatives such as shared services, centralisation of certain functions
and head ofﬁce improvements reduced costs. The new Elancourtsite in Paris brought together all eight previous French sites, andthe Military Air Systems centre in Manching (Germany) began to beconsolidated. MBDA centralised activities in Paris to Plessis Robinson
and made Schrobenhausen its German centre of competence.

OUTLOOKThe Division has a positive outlook due to its substantial forward order
book, strong position in platforms, capabilities in high growth areas andongoing efﬁciency initiatives.
There are a number of Euroﬁghter export campaigns currently underway
across Europe, the Middle East and Asia. Business areas such as secure
networks, global security and UAVs are gathering momentum. Operational
improvements are reducing risks while opportunities for further cost
reductions are being sought.
Over time, all of these factors should continue the trend of rising revenues,
margins and EBIT. The Division is central to EADS’ goal of achieving a betterbalance between commercial aerospace and defence and security revenues.

The Division won signiﬁcant contracts as a security Lead Systems
Integrator. Qatar contracted EADS to build its National Security
Shield System. In the U.K., DS was awarded the building of a
network of ﬁre and rescue control systems. In Tangiers (Morocco),
it will provide an integrated maritime security system.

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47

EADS
Drivers48

Our shared functions are becoming key value
drivers. They are beginning to play an essential
role in achieving the Group’s long-term strategy,
attaining synergies across the Divisions and increating long-term sustainable growth.

48 EADS DRIVERS
50 Innovation | 52 Sourcing | 54 Human Resources | 56 Corporate Social Responsibility

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49

INNOVATION
Speciﬁc actions prioritised innovations linked to theDivisions’ business goals and addressed weaknesses
in programmes and processes.

The increase in the number of patents ﬁled during the year gives a good
indication of EADS’ R &T momentum. Some 961 inventions were patented
in 2007, compared with 792 in 2006.

50

EADS DRIVERS
Innovation2007 was a watershed year for the EADS Corporate TechnicalOfﬁce, as it implemented a number of signiﬁcant initiatives tobolster its contribution to EADS’ growth.

Research & Technology
Priority was placed on ensuring that the EADS-wide Research& Technology (R & T) strategy is closely linked to the businessobjectives. This strategy is now being implemented in the
Divisions.

A uniﬁed Customer Review process was implemented and is now
running in all Divisions.
Black Belt improvement experts have been selected and qualiﬁed
within all Divisions. Their mission is to continuously improve
performance at all operational levels.
A collaborative Lean Operations approach was launched to identify
and transfer EADS internal and external “lean” best practices.

Signifying a shift in direction towards working more closely with
the Divisions and the sharing of new technologies, the former
Corporate Research Centre was uniﬁed and rebranded as EADS
Innovation Works. In the United Kingdom, it launched a new
branch of its global network of sites, and it expanded its centrein Singapore.

In close collaboration with programme managers and sponsoredby the Airbus Chief Operating Ofﬁcer, a Programme & Risk
Management initiative was launched to improve programme performance by ensuring a transfer of learning and best practices
between EADS programmes.

To widen its access to new technologies, EADS entered into a
series of new partnerships and projects with leading research
institutes and universities in Canada, China, India, Ireland,
Russia and the United States.

The Executive Committee approved plans for shared Information
Technology (IT) services across EADS, with potential savings of
up to 30 %. As part of the project, IT governance and IT principles
were deﬁned and several transformation opportunities have been
identiﬁed.

Chief Information Ofﬁcer (CIO)

A business nursery was launched to develop key technologies
that reach beyond the basic EADS business. Examples of this areseveral security-related technologies for the detection of explosives.
The increase in the number of patents ﬁled during the year gives
a good indication of the greater momentum in R & T since new
management was appointed in 2006. Some 961 inventions were
patented in 2007, compared with 792 in 2006. EADS climbed
in the Wall Street Journal’s ranking of top patent ﬁlers at the
U.S. Patent and Trademark Ofﬁce from 9th to 6th place.
The PLM Harmonisation for ENhanced Integration and eXcellence(PHENIX) programme was launched to set up harmonised forwardlooking Product Lifecycle Management at all levels of EADS.

Chief Quality Ofﬁcer (CQO)

LOOKING TO 2008
There are plans to further improve the transition of developed technologies
from R & T to industrial programmes. Additionally, measures will be taken
to enhance public funding coordination and to expand career opportunities
for the technical community within EADS.
Speciﬁcally, the function will focus on developing technologies for the
security business and will contribute to the environmental and services
strategies.
Finally, the function will target savings from improvement programmes
associated with the shared IT services platform as well as the Black Belt
and PHENIX programmes.

Reporting to the Chief Technical Ofﬁcer, the CQO leads the
EADS-wide Improvement Programme, which aims to increase customer and shareholder conﬁdence in operations and programmes.

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51

SOURCING
Sourcing is playing an important role in change at
EADS, especially through increased global procurement
and closer ties with suppliers.

With EADS’ external spending equivalent to 75% of its revenues, the Groupaims to procure more from outside Europe, seeking to gain competitive
advantage and market access while reducing its vulnerability to U.S. dollar
volatility. Speciﬁcally, Vision 2020 targets sourcing 40% of volumes fromoutside Europe by 2010, compared with 23% today.

52

EADS DRIVERS
Sourcing

Change in EADS’ sourcing activities is an essential part of its
evolution. At the end of 2007, the Sourcing Strategy was further
developed to reﬂect the new Vision 2020, while management also
successfully pursued its existing strategic goals.
As EADS seeks to concentrate on its core activities, it intends toconsolidate its supply base. The Group also aims to procure morefrom outside Europe, seeking to gain competitive advantage andmarket access while reducing its vulnerability to U.S. dollar volatility. Speciﬁcally, Vision 2020 targets sourcing 40 % of volumes
from outside Europe, compared with 23% today.
With EADS’ external spending equivalent to 75% of its revenues,
however, greater sourcing efﬁciencies have long been a priority.
2007’s new goals added clarity and momentum to many existing
initiatives.

Internationalisation
Asia is the greatest priority for geographic diversiﬁcation of
suppliers. In 2007, sourcing ofﬁces were opened in the Indian
cities of Delhi and Bangalore. EADS anticipates procuring, forexample, aerostructures such as Airbus doors and engineering
services.
Locations such as China were identiﬁed for ofﬁce openings in2008. It is anticipated that China will be an important source ofaerostructures and raw materials.

Closer relationships
Airbus is transforming its supply chain by selling aerostructures
manufacturing sites to buyers that will form long-term partnerships with Airbus, becoming strong tier-one suppliers.
EADS made progress in working more closely with suppliers. The
EADS Procurement Network and the Airbus Supplier Councils,
both of which were started in 2006 to enhance cooperation andnetworking with suppliers, became established forums and met ona regular basis. And EADS became a founding member of SPACE,an association of European aerospace companies formed to cooperate
when auditing, certifying, monitoring and developing small to
medium-sized suppliers.

Sourcing integration
By identifying further joint procurement opportunities, EADS
continued to reduce the costs and risks in its supply chain. All2007 targets were met and the initiative is now being expanded.
Through internal joint procurement, EADS also aims to securesourcing of potentially scarce raw materials, such as composites
or titanium.
Measures were introduced to improve coordination of “offset”
obligations across EADS and its suppliers. Contracts with government customers often imply the requirement to source a quantityof goods or services from the customer’s country.
Across the three axes of internationalisation, closer relationships
and integration, Sourcing addresses performance improvements inthe supply chain, and cost reductions through common improvements of business processes with our suppliers. Sourcing is a major
element of the improvement programmes in the EADS Divisions,the largest being the Power8 programme run by Airbus, and thus
a major contributor to EADS performance and proﬁtability targets.

LOOKING TO 2008
Sourcing is on a clear course, with a particular emphasis on managing
relations to key suppliers and on enhancing Global Sourcing.
In 2008, major supplier relationships will become closer, coordination ofsourcing will continue to improve and more overseas ofﬁces will open.
Additionally, initiatives will be introduced to manage the supply chain’s
sustainability from both environmental and ethical perspectives.
Further cost reductions and performance improvements in the supply
chain will contribute to EADS’ objectives.

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53

HUMAN RESOURCES
Human Resources made a strong contribution
to group-wide integration, internationalisation andimproved skills management.

With more than 5,000 internships offered each year in Europe, EADS
provides students with valuable technical and personal experience andwith the unique opportunity to take a closer look at the industrial world.

54

EADS DRIVERS
Human Resources

Through Human Resources (HR) initiatives, management took
steps to make the group more integrated, lean and international.
Measures that helped to achieve this included: Shared Services,
Shared College training programmes; integrating the HR organisation between Corporate, Divisions and Business Units; leaner HR
processes (e.g. annual interview); and support for international
growth (e.g. China and India).

Social dialogue
Integrating Airbus to form a trans-national organisation was
discussed with the European Works Council and social partners
at Airbus and EADS levels, clearing the way for the reorganisationand implementation of Power8. Additionally, EADS managed
similar discussions with social partners concerning implementationof Shared Services and ongoing initiatives to improve productivity
and competitiveness across all EADS Divisions.

Planning strategic competencies
To ensure that EADS has sufﬁcient people with the right skills to
fulﬁl its commercial and industrial objectives, HR has developed acommon approach to strategic competency management. The Shared
College became increasingly active, covering activities ranging fromsales and marketing to systems engineering. Training programmes
were shared between Divisions.

Leadership development and integration
Group-wide tools to improve employee development and motivation
have been introduced. The EADS Leadership Model for developing
future leaders was introduced across EADS, as were common leadership development tools (e.g. 360° assessment tools). The performanceand development process was redesigned and reactivated. Existing
activities have been extended, such as the Corporate BusinessAcademy and new activities have been launched (e.g. mentoring
schemes).

Effectiveness and HR Shared Services
Efﬁcient management of pay and time through common Shared
Services and a common e-HR platform was extended to all EADS
home countries by the Corporate Shared Service Operations (CSO).
EADS has launched an EADS Learning Services (ELS) in the four
home countries to improve the quality of learning and manage thelearning process more effectively. ELS will manage the administration of learning operations.
The roll-out of common HR tools was also extended to recruitment. A common e-recruiting platform was implemented andbecame fully operational.

LOOKING TO 2008
HR will focus clearly on supporting Vision 2020’s objectives.
Five items will be prioritised:– Leadership Development – developing leadership andpeople management skills;– Talent Management – implementing/cascading thePeople Review process and improving mobility;– Competency Management – better anticipation oftechnical skills and promotion of experts;– Globalisation – preparing for global growth in Asia andin the United States;– Diversity – by nationality, gender, age, as well as socialand ethnic background.
Across EADS, initiatives will also be taken to enhance employee
motivation and programme management.

Regarding innovation and research, the Hall of Fame held its ﬁrst
awards ceremony at the Cité des Sciences in Paris in November,sponsored by EADS Chief Technical Ofﬁcer and EADS Head of
Human Resources. Prizes were awarded for The Great Inventors,
The Great Innovators, The Great Craftsmen and The Best Lean
Manufacturing Team.

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55

CORPORATESOCIAL RESPONSIBILITYEADS regards sustainable development asa strong opportunity for long-term value.
In particular, 2007 saw eco-efﬁciency become
central to Group strategy.

Satellites have radically changed people‘s view of the planet, raising awareness of the harm that human activity is inﬂicting. Today, space technology
undoubtedly has an important role to play in helping to combat the effects
of global warming. Here, the environmental monitoring satellite Envisat,
designed and built by Astrium.

56

EADS DRIVERS
Corporate Social Responsibility

For more detailed information
on EADS CSR policies and related practices,
please refer to:

BOOK THREE

3
Business,
LegalandCorporate
Responsibility
200744453_EADS_07_E_U_Book3.indd 1

BOOK 329.04.2008 18:26:31 Uhr

BUSINESS, LEGAL AND
CORPORATE RESPONSIBILITY 2007
Registration Document Part 2

Dear stakeholders,
Corporate responsibility is often considered a box ticking exercise; let meconvince you otherwise. For EADS it is clearly not an inconvenient after thought.
I am convinced that balancing economic performance with respect for theenvironment and stakeholders’ interest at large, now and for the generations
to come, will allow us to build a competitive advantage. Sustainable development is essential for delivering long-term value.
Corporate responsibility is, therefore, fundamental and we are committed to
the following broad principles:
Moving towards eco-efﬁciency and fostering development of the most advanced
green technologies in our ﬁelds.
Developing fruitful relationships withstakeholders, in particular customers,
employees and suppliers, as reliable partners.
Sustaining economic performance while
promoting benchmark ethical standards.
The following pages highlight how we are
increasingly focusing on eco-efﬁciency.
Louis Gallois
Chief Executive Ofﬁcer

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57

EADS DRIVERS

MAKING ECO-EFFICIENCY AN ADVANTAGE
EADS placed eco-efﬁciency at the centre of corporate strategy
in 2007. The Group now aims to develop the greenest products andprocesses in the aerospace and defence sector, recognising that thiswill both improve environmental performance and provide a strong
business advantage.
Consequently, Louis Gallois, Chief Executive Ofﬁcer, made ecoefﬁciency one of the key tenets of Vision 2020, the EADS strategy
blueprint for the coming 12 years. This is already driving speciﬁcchanges across the Group.

The air transport industry’s major challenge:
climate change
Currently, the environmental cost of air transport is relatively low
but reductions in emissions are necessary to enable the sector’s
future growth. New technologies, therefore, are essential to ensurethat the industry can continue to expand and beneﬁt the world
economy.
The economic beneﬁts of aviation are considerable and growing.
It currently supports 8%1) of global gross domestic product, while
generating just 2% 2) of man-made CO2 emissions (which could,
without action, grow to 3% by 2050).

New technologies provide answers
The industry has reduced environmental impact for years andcontinues to do so. In less than 40 years, noise reduction has fallen
by 75% and fuel efﬁciency has increased by 70%. Even today’s technology will enable far lower fuel consumption. For example, theA380 burns less than 3 l/100 km of fuel per passenger, comparedwith an average for the world’s aircraft ﬂeet of slightly above
5 l/100 km.
EADS invests heavily in technology. In 2006, around € 2.5 billion
was spent on Research and Development, equivalent to 6% ofrevenues. EADS will intensify these efforts in order to becomea leader in the greenest technologies.
Airbus dedicates the largest share of the Research and Technology
budget to reducing fuel burn and environmental impact. It committed to increase its environmental R&T budget by 25% from 2008,
publicly stating emissions targets in line with those of the Advisory
Council for Aeronautics Research in Europe (ACARE). Use ofcomposite materials and enhancement of aerodynamics will reduce
fuel consumption. Additionally, Airbus is experimenting withsynthetic fuels (see alternative fuels box).

1)
2)

MAN-MADE CARBON DIOXIDE EMISSIONS (in %)according to different key studies: IPCC 1), UNFCCC 2), IEA 3) and DLR 4)

Air Transport Action GroupIntergovernmental Panel on Climate Change

EUROPE COMMITS TO “CLEAN SKY”

EnergyIndustry

What is Clean Sky?

Road trafﬁc

Clean Sky is Europe’s technology research programme
designed to fulﬁl its commitment to make air travel more sustainable. By pioneering technological breakthroughs, it aims
to reach the Advisory Council for Aeronautics Research inEurope’s environmental goals for air transport.*

Aviation
Other meansof transport
Other sources
0

10

20

30

40

50

1)

Intergovernmental Panel on Climate Change
United Nations Framework Convention on Climate Change
3) International Energy Agency
4) Deutsche Forschungsanstalt für Luft- und Raumfahrt
2)

Variation
between studies

According to the IPCC report, carbon dioxide (CO2) emissions fromaviation account for two percent of total man-made emissions (1992 data).
The most recent research establishes that aviation’s CO2 contribution
remained stable between 1992-2000, at 2.2% (DLR 2000 data), despitea steady growth in air trafﬁc.

It is backed by the European Union, as well as Europe’s leading
aerospace manufacturers. Smaller enterprises, universities
and research centres are also participating. With a budget of€1.6 billion – equally funded by the European Commission andthe Industry – to spend in the seven years until 2014, Clean Sky
is one of Europe’s largest research programmes.
While the initiative started in 2006, the research project wasofﬁcially launched in February 2008.

Source: Airbus Environmental, Social and Economic Report 200658

* 50% reduction of CO2; 80% reduction of NOx; 50% reduction of external noise, anda green design, manufacturing, maintenance and disposal product life cycle by 2020.

EADS DRIVERS
Corporate Social Responsibility

Every EADS Division is playing a part. For example, Astrium
deﬁnes space technologies (see Astrium box) that not only
contribute to diagnosing environmental phenomena but also arepart of the mitigation effort.
EADS is, additionally, playing a major role in research initiatives
such as the EU Joint Technology Initiative “Clean Sky”, which
was ofﬁcially launched in early 2008 (see Clean Sky box).
Smart management of air trafﬁc can also help. EADS is participating in the European SESAR programme, which aims to optimise
air trafﬁc through the implementation of one single European
airspace leading to estimated efﬁciency gains of approximately 10%.

More than 6,000
aircraft are due toreach end of life
over the next
20 years. Airbus
tackles this major
environmental
issue with an innovative project.

Manufacturing and product lifecycle
Care for the environment also involves managing the entire productlifecycle – from design to dismantling. EADS is leading development of cleaner processes and more eco-efﬁcient approaches.
Most EADS sites now have ISO 14001 environmental certiﬁcation,
and Airbus has become the ﬁrst aerospace company to receive
certiﬁcation covering not only its European sites but also productrelated processes.

The PAMELA (Process for Advanced Management of End of Lifeof Aircraft) project for dismantling and recovering the value of
end-of-life aircraft is part of this effort. In mid-2007, the project
entered its industrial phase within the TARMAC AEROSAVE
company.
EADS is also organising itself to address issues concerning hazardous substances. This is important for managing risks related to theEU’s new Registration, Evaluation, Authorisation of Chemicals(REACH) regulation.

How is EADS involved?

How effective will this be?

EADS will play a leading role in many areas of the programme.
Airbus, Eurocopter and EADS CASA in particular will drive
three of the six technology domains: Airbus for Smart Fixed-Wing
Aircraft; EADS CASA for Green Regional Aircraft; Eurocopter
for Green Rotorcraft.

Clean Sky represents a substantial commitment by Europe
and its aerospace industry, recognising that a path might be possible
towards decoupling the current upwards trend in aircraft environmental impacts from the growth of the sector. There is no single
solution to the problem, but by improving technology and operations
meaningful improvements in aircraft efﬁciency can be made.

EADS Innovation Works and ATR are also on board.

What are the other areas identiﬁed for study?

Clean Sky is essential for developing sustainable, affordable andclean aeronautics and air transport.

Three other areas have been identiﬁed for study: Eco-Designfor Aircraft and Systems; Sustainable and Green Engines; Systems
for Green Operations.
To measure progress, there is also a group for evaluating theenvironmental impact of the technologies developed.

EA DS A NNUA L REVIE W 2 0 0 7

59

EADS DRIVERS

PREPARING FOR ALTERNATIVE FUELS
Airbus began a long-term
research programme into theviability of alternative fuels
in 2006, seeking to understand the potential beneﬁts
and challenges of these fuels.
The company’s ultimate goal
is to create a carbon neutral
aviation industry.

Research is focusing on ways to reduce CO2 and other emissions.
Speciﬁc studies will also look at operational beneﬁts for airlines,
such as enhanced payload range, reduced fuel burn and increased
engine durability.
In the ﬁrst instance, Airbus is concentrating on alternative fuels thatare, or will be, available in the short term in sufﬁcient quantities
as to make a practical improvement in the mid-term future. But
Airbus expects that other alternatives will be identiﬁed by the
beginning of the next decade. These should include second generation bio-fuel and bio-fuel blends, created from a biomass which
does not compete with food crops for land or water, nor withnatural carbon sinks such as rain forest.
For now, gas-to-liquid (GTL) fuel, a technology that converts
natural gas to liquid kerosene, is one of the most practical alternatives. Its properties are similar to conventional jet fuel, making
it a “drop-in” replacement for today’s kerosene, capable of being
used in today’s aero engines. It has attractive characteristics
for local air quality, as well as potential beneﬁts in terms of fuelburn, and could be made available at convenient locations.

Why was global warming selected as a topic?
The issue of global warming has reached an importantjuncture. We are currently moving from an ‘awareness’ phase toacknowledging human activity’s impact on the climate. In future
we will see widespread application of remedial measures. This
will put pressure on industry but it will also generate opportunities. At Astrium we want to ensure the opportunities outweighthe constraints. And that’s the real goal of the call for ideas:
together, we must be sufﬁciently creative and determined to ﬁnd
new ideas, so that space technology provides environmental
solutions and also brings us business growth.

WHAT ROLE CAN SPACEPLAY IN CURBINGGLOBAL WARMING?
An Interview with Pierre Parrot, Astrium

60

Were you expecting such a good response?
I have to admit that we were not. As for the quality of theideas, here again we were surprised. We had prepared the call bystudying initiatives involving space and environmental protection.
Not only did the suggestions we received cover all the areas identiﬁed, but many of them even went beyond that scope. Here lies
the genuine value of the exercise: Astrium’s staff is truly creative.

EADS DRIVERS
Corporate Social Responsibility

Practical steps
Airbus agreed at the 2007 Dubai Air Show to study the feasibilityof using GTL. The other signatories were Qatar Airways, Qatar
Petroleum, Qatar Fuels, Qatar Science and Technology Park, RollsRoyce and Shell International Petroleum Company.
Shortly afterwards, early in 2008, an Airbus A380 ﬂew from
Filton in the United Kingdom to Toulouse in France, burning GTL
fuel in one of its four engines. This was the ﬁrst of many ﬂightsthat will test the environmental impact of alternative fuels.
Eventually, second-generation biofuels could be used, but they are
not presently available in commercial quantities, particularly due
to the need to ﬁnd large quantities of suitable biomass that do notcompete with land and water use for food crops.

On 1st February
2008 Airbus
operates the ﬁrst
ever test ﬂight
with alternative
fuel.
Test aircraft
A380 MSN004
has ﬂown between Filton andToulouse with
one engine
powered by gas
to liquid (GTL).

How did you select the most promising ideas?

So, what happens now?

First, we identiﬁed ideas about how to improve our own
practices, relating for example to energy saving, reducing waste,etc. These ideas were sent to the site managers and to the Environment Committee, and were used to strengthen existing initiatives.
Secondly, to select the more market-driven ideas, we turned to ourrecently created CTO Board and set up a selection committee. The
committee selected a ‘Top 10’, which was narrowed down to six
business projects including services and platform.

We have initiated a series of consultations to decide how
we can turn the selected ideas into concrete, proﬁtable projects.
For reasons of conﬁdentiality, we cannot currently disclose theseideas. At the beginning of 2008, we will propose the projects that
we believe should be pursued, with allocation of budgets, internalteams, lobbying activities, etc. Some of them are included in the2008 research budgets and internal work on them has begun.

What lessons have you drawn from this exercise?
We have learned just how concerned our staff are about
environmental issues and global warming in particular.
Their ideas conﬁrmed the need to improve our approach aroundthree inseparable and complementary points. Firstly, we must position ourselves by thinking about how space, be it through products
or services, can beneﬁt the environment. Secondly, we must reﬁne
our products and manufacturing processes to reduce any negativeenvironmental impact as far as possible. And, thirdly, we must all,individually, make every endeavour to protect our ecosystem.

In June 2007, Astrium asked staff
for ideas. Pierre Parrot is the man who
managed the initiative.

EA DS A NNUA L REVIE W 2 0 0 7

61

UsefulInformation

6262 USEFUL INFORMATION
64 Glossary | 66 Addresses | 68 Financial Calendar

EA DS A NNUA L REVIE W 2 0 0 7

63

USEFUL INFORMATION

GlossaryA

ARBS
Air-to-air Refuelling Boom System –a boom is a retractable metal tube fortransferring fuel from a tanker to anotheraircraft in ﬂight. EADS has designed
an advanced air refuelling boom main
structure, with a ﬂy-by-wire control,a large refuelling envelope and an automatic load alleviation system.
Asymmetric warfare
Conﬂict between combatants withdifferent characteristics, for example
conventional forces and terrorists
ATV
Automated Transfer Vehicle –a space cargo vehicle which will supply theInternational Space Station with scientiﬁcequipment, spares and fuel, together with
supplies of food, air and water. As prime
contractor to the European Space Agency(ESA), Astrium is leading the ATV programme, a key element of the European
contribution to the ISS.

B
C

Black Belt
EADS skills improvement programme

Clean Sky
Europe’s technology research programme
designed to make air travel more sustainable
Corporate Business Academy
EADS’ proprietary business training college
Corporate GovernanceThe control and monitoring of a company
to ensure that management acts in theinterests of stakeholders, no undue risks
are taken and relevant legislation iscomplied with

64

CSR
Corporate Social Responsibility –the responsibility of a company towards
its employees, the environment, itscustomers and the wider community

DE

Deepwater
A comprehensive U.S. Coast Guard
modernisation programme for acquiring
new aircraft and surveillance systems

EADS Innovation Works
The Group-wide research centre
EBIT
Earnings Before Interest and Taxes –EADS uses EBIT pre-goodwill impairment
and exceptionals as a key indicator of its
economic performanceEco-efﬁciency
The term that describes balancing care forthe environment with economic success
Eurohawk
High Altitude Long Endurance (HALE)
Unmanned Air Vehicle (UAV) for
Germany. Based on Northrop Grumman’s
Global Hawk, it has been modiﬁed andspecially equipped to national requirements
through EuroHawk GmbH, an EADS
Northrop Grumman joint venture.
EASA
European Aviation Safety Agency –responsible for the advancement, safety
and regulation of civil aviation
ESA
European Space Agency

F
G
H
K

Fly-by-wire
An aircraft control system relying onelectronics rather than mechanical linkages

GDP
Gross Domestic Product – a measure ofan economy’s output

Hedge
A way of insuring against adverse foreignexchange rate ﬂuctuations

KHP
Korean Helicopter Programme – an eight
metric tonnes class military transport
helicopter, developed in cooperation by
Eurocopter and Korea Aerospace Industries
for the Korean governmentL

LCC
Low Cost Carrier
Lean production
The practice of production withminimum waste
Long-range aircraft
An aircraft capable of exceeding
3,000 nautical miles with a full payload
at normal cruising conditions. Airbus’
long-range aircraft are the A330,
the A340, the A380 and the A350.
LUH
U.S. Army programme for Light Utility
HelicoptersUSEFUL INFORMATION
Glossary

M
N

MRTT
Multi-Role Tanker Transport aircraftNASA
National Aeronautics and Space
Administration – the U.S. space agency
NATO
North Atlantic Treaty Organisation

O
P

OECD
Organisation for Economic Co-operation
and Development

R&T
Research & Technology – all activities inthe ﬁeld of research and generic technologies
not directly attributable to products, anddesigned to maintain or expand knowledgeor the technological baseRamp-up
The process of increasing a production
programme’s level of activity

S

Security
State security designed for bordersecurity, crisis management and large
event protection
Shared Services
Central functions such as Human
Resources that are shared across EADSPHENIX
Programme for harmonising EADS
programme management

Single-aisle aircraft
An aircraft with one aisle. At Airbus,
single-aisle is used for the A320 Family

Power8Turnaround programme to restore
Airbus’ competitivenessSkynet 5
The programme to provide the
U.K. Ministry of Defence with three
secure communications satellites

PPP
Public Private PartnershipR

R&D
Research and Development –all activities related to the evolutionof new products and services

U
V

UAV
Unmanned Aerial Vehicle

Vision 2020
EADS’ strategic vision for the
next 12 years

EA DS A NNUA L REVIE W 2 0 0 7

65

USEFUL INFORMATION

Addresses

EADS HEADQUARTERS

AIRBUS

European Aeronautic Defence
and Space Company EADS N.V.
Le Carré
Beechavenue 130 –132
1119 PR Schiphol-Rijk
The Netherlands
Tel + 31 20 655 48 00

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

HEAD OFFICESMILITARY TRANSPORT
AIRCRAFTIn France:
EADS
37, Boulevard de Montmorency
75781 Paris cedex 16
FranceTel + 33 1 42 24 24 24

EADS Military Transport
AircraftAvenida de Aragón 404
28022 Madrid
Spain
Tel + 34 91 585 70 00

In Germany:
EADS
81663 Munich
GermanyTel + 49 89 607 0
In Spain:
EADS
Avenida de Aragón 404
28022 Madrid
Spain
Tel + 34 915 85 70 00

EADS NORTH AMERICAEADS North America, Inc.
1616 North Ft. Myer Drive,
Suite 1600
Arlington, VA 22209
USA
Tel + 1 703 236 33 00

66

EUROCOPTER

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

ASTRIUM

Astrium
6, rue Laurent Pichat
75216 Paris cedex 16
FranceTel + 33 1 77 75 80 00
Astrium Satellites
31, rue des Cosmonautes
31402 Toulouse cedex 4
FranceTel + 33 5 62 19 62 19

Astrium SpaceTransportation
Hünefeldstrasse 1–528199 Bremen
GermanyTel + 49 421 539 0
66, Route de Verneuil
78133 Les Mureaux cedex
FranceTel + 33 1 39 06 12 34
Astrium Services
6, rue Laurent Pichat
75216 Paris cedex 16
FranceTel + 33 1 77 75 80 00

Defence Electronics
Wörthstrasse 85
89077 Ulm
GermanyTel + 49 731 392 0
MBDA
11, Strand
London WC2N 5RJ
U.K.
Tel + 44 20 7451 60 00

OTHER BUSINESSESEADS EFW
Grenzstrasse 101109 Dresden
GermanyTel + 49 351 8839 0

DEFENCE & SECURITY

Defence & Security
Landshuter Strasse 26
85716 Unterschleissheim
GermanyTel + 49 89 3179 0
EADS Military
Air Systems
81663 Munich
GermanyTel + 49 89 607 0Euroﬁghter
Am Söldnermoos 1785399 Hallbergmoos
GermanyTel + 49 811 80 0
Defence andCommunications Systems
Landshuter Strasse 26
85716 Unterschleissheim
GermanyTel + 49 89 3179 0

EADS Sogerma
Aéroport International
20, Avenue Georges Barrès
33700 Mérignac
FranceTel + 33 5 56 55 40 00
EADS Socata
Aéroport deTarbes-Lourdes-Pyrénées
65921 Tarbes cedex 9
FranceTel + 33 5 62 41 77 88
ATR Avions de Transport
Régional
1, Allée Pierre Nadot
31712 Blagnac cedex
FranceTel + 33 5 62 21 62 21

USEFUL INFORMATION
Addresses

EADS STRATEGYAND MARKETINGORGANISATION

Tel + 33 1 42 24 24 24
Fax + 33 1 42 24 26 19

REPRESENTATIVE OFFICES

Asia

Latin America

EuropeBangkok, Thailand
Tel + 66 2 610 4300
Fax + 66 2 610 4301

Mexico City, Mexico
Tel + 52 55 47 77 51 00
Fax + 52 55 47 77 32 74

Beijing, China
Tel + 86 10 646 11 266
Fax + 86 10 646 10 409

Santiago de Chile, Chile
Tel + 56 2 278 78 78
Fax + 56 2 278 79 79

Hanoi, Vietnam
Tel + 84 4 943 68 85
Fax + 84 4 943 68 72

São Paulo, Brazil
Tel + 55 11 3093 2800
Fax + 55 11 3093 2801

Jakarta, Indonesia
Tel + 62 21 573 57 33
Fax + 62 21 573 59 23

Middle East

Ankara, Turkey
Tel + 90 312 439 89 64
Fax + 90 312 439 70 07
Athens, Greece
Tel + 30 210 69 83 871
Fax + 30 210 69 83 870
Brussels, Belgium
Tel + 32 25 04 78 12
Fax + 32 25 02 30 81
London, United Kingdom
Tel + 44 207 845 8400
Fax + 44 207 845 8401
Moscow, Russia
Tel + 7 495 797 53 67
Fax + 7 495 797 53 66
Rome, Italy
Tel + 39 06 45 23 291
Fax + 39 06 45 23 4006
Warsaw, Poland
Tel + 48 22 627 05 28
Fax + 48 22 627 05 35

AfricaJohannesburg,
South Africa
Tel + 27 11 256 79 00
Fax +27 11 256 79 11
Tripoli, Libya
Tel + 218 21 335 1026
Fax + 218 21 335 1257

II

Kuala Lumpur, Malaysia
Tel + 60 3 2163 0233
Fax + 60 3 2163 0211
New Delhi, India
Tel + 91 11 4357 9003
Fax + 91 11 4357 9024
Seoul, South Korea
Tel + 82 2 798 49 25
Fax + 82 2 798 49 27
Singapore, Singapore
Tel + 65 67 37 50 77
Fax + 65 67 33 58 15
Sydney, Australia
Tel + 61 2 88 64 05 08
Fax + 61 2 88 64 05 01
Taipei, Taiwan
Tel + 886 2 2712 15 94
Fax + 886 2 2712 10 89

Abu Dhabi, UAE
Tel + 971 2 681 28 78
Fax + 971 2 681 10 27
Cairo, Egypt
Tel + 20 22 794 86 71
Fax + 20 22 795 73 17Doha, Qatar
Tel + 974 411 0752
Fax +974 411 0784
Muscat, Oman
Tel + 968 24 601 922
Fax + 968 24 602 845
Riyadh, Saudi Arabia
Tel + 966 1 46 53 456
Fax + 966 1 46 30 844

North America
Ottawa, Canada
Tel + 1 613 230 39 02
Fax + 1 613 230 14 42

E ADS AN N UAL R E V IE W 2 0 0 7

67

USEFUL INFORMATION

Financial Calendar
Full Year 2007 results release:11th March 2008

First Quarter 2008 results release:
14th May 2008

Annual General Meeting:
26 th May 2008, Amsterdam, The Netherlands

Shareholders’ Information Meeting:
17 th June 2008, Paris, France

First Half 2008 results release:
30 th July 2008

Nine-Month 2008 results release:
14 th November 2008

www.reports.eads.com
Investor Relations Contact:
Toll-free telephone numbers:
France: 0 800 01 2001
Germany: 00 800 00 02 2002
Spain:
00 800 00 02 2002
Shareholders from other countries
can contact us at:+ 33 1 41 33 90 94
An e-mailbox is dedicatedto answering shareholders’ enquiries:
ir@eads.com
Or visit our website at:www.eads.com
68The complete EADS Annual Report Suite 2007 consists of:Facingchallenges.
EADS ANNUAL REVIEW 2007

Deliveringresults.

BOOK TWOBOOK THREE

2

3

Financial
Statements
andCorporate
Governance200744453_EADS_07_E_U_Book2.indd 1• Record order book of € 339.5 billion• Successful ramp-up across Divisions• Delivery of ﬁrst A380

Business,
LegalandCorporate
Responsibility
2007

29.04.2008 18:26:55 Uhr44453_EADS_07_E_U_Book3.indd 1

29.04.2008 18:26:31 UhrBOOK 1

BOOK 2

BOOK 3

FACING CHALLENGES
DELIVERING RESULTS
Annual Review

FINANCIAL STATEMENTS ANDCORPORATE GOVERNANCE 2007
Registration Document Part 1

BUSINESS, LEGAL AND
CORPORATE RESPONSIBILITY 2007
Registration Document Part 2

Management & Responsibility

Risk Factors

Information on EADS Activities

Together. Facing challenges.
Delivering results.

Net Assets – Financial Position – Results

Corporate Social Responsibility

Corporate Governance

General Description of theCompany and its Share Capital

The Business Year 2007
EADS Drivers
Useful Information• First savings in the Power8
restructuring programme

Designed and produced by HGB Hamburger Geschäftsberichte | Photographed by:Michael Lange. Photo p. IX (Columbus): ESA/NASA, p. 32, top: Angelo Cavalli(Getty Images) | Written by The Clerkenwell Consultancy | Printed by Kriechbaumer

European Aeronautic Defence
and Space Company EADS N.V.
Le Carré, Beechavenue 130 -1321119 PR Schiphol-Rijk
The Netherlands

This document is also available
at the following addresses:

Defence and Space Company
EADS N.V.
In France
37, boulevard de Montmorency

Annual Review 2007

European Aeronautic

EUROPEAN AERONAUTIC DEFENCE AND SPACE COMPANY EADS N.V.

www.eads.com

75781 Paris cedex 16 – France
In Germany
81663 Munich – Germany
In Spain
Avenida de Aragón 404
28022 Madrid – Spain

1