EADS Annual Review 2010

Flight into
the Future

EADS

at a glanceContents

III

EADS Group

VI

AirbusX

Eurocopter

XII

Astrium

XIV Cassidian
XVI Other Businesses
XVII Global Sales
XVIII EADS SharesXX 	EADS Management
Structureat a glance

EADS Group
From stabilisation to expansion

III

EADS is a global leader in aerospace, defence and related
services. In 2010, the Group’s 10th anniversary year, EADS
comprising Airbus, Eurocopter, Astrium and Cassidian
generated revenues of € 45.8 billion and employeda workforce of some 122,000.

EADS Group

2010

2009

2008

Revenues€m

45,752

42,82243,265

Self-financed R&D

€m

2,939

2,825

2,669

EBIT*

€m

1,231

-322

2,830

Net income 1)

€m

553

-763

1,572

Earnings per share 1)

€

0.68

-0.94

1.95

Dividend per share 2)€

0.22 2)—0.20

Net cash position€m

11,918

9,797

9,193

Order intake

3)€m

83,14745,847

98,6483)€m448,493

389,067

400,248

121,691

119,506

118,349

Order book
Employees

Results
EADS’ annual results
demonstrated significant
achievements in 2010
supported by the recoveryof the macro-economic andcommercial environment
which was stronger than
expected.

Revenues
EADS’ revenues increased
7% to a new high of€ 45,752 million thanks togrowth from both volume
and mix effects across corebusinesses.

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

EBIT*
EBIT* stood at € 1,231 million
and benefited from goodunderlying performance inall core business activities,
especially Airbus legacy
programmes.

Net cash
Net cash position amounted
to € 11,918 million,
representing a key asset
to foster future growth.
Order book
The record € 448,493 million
order book provides a solid
platform for future deliveries.

1) E
 ADS continues to use the term Net Income. It is identical with Profit for theperiod attributable to equity owners of the parent as defined by IFRS Rules.
2) To be proposed to the EADS Annual General Meeting.		
3) Contributions from commercial aircraft activities to EADS Order intake and Orderbook based on list prices.				

EADS Annual report 2010

at a glance

IV

A380

A400M

EC225

1)

(€ m)

2010

2009

Variation

2010

2009

Variation

Revenues

29,97828,067

+7%

4,830

4,570

+6%

Self-financed R&D

2,321

2,306

+1%

189

164

+15%

305

-1,371

-

183

263

-30%

Order intake

68,22323,904

+185%

4,316

5,810

-26%

Order book400,400

339,722+18%

14,55015,064-3%

EBIT*

Airbus Division comprises Airbus Commercial and Airbus Military. Airbus’
consolidated revenues of € 29,978 million show an increase of 7% comparedto the same period last year.
In number of aircraft

2010

2009

Variation

2010

2009

Variation

Deliveries

510

498

+2%

20

16

+25%

Order book

3,552

3,488

+2%

241

250

-4%

Airbus Commercial
Airbus Commercial revenues
amounted to € 27,673 million,
reflecting a favourable volume
and mix effect. Deliveries increased
to 510 commercial aircraft.

Eurocopter’s revenues increased
by 6% to € 4,830 million, reflecting
a favourable revenue mix. Deliveries
totalled 527 helicopters, including
28 NH90 and 15 Tiger, double the2009 level. The Dutch and Frenchnavies received the first naval
versions of the NH90 multi-role
helicopter.

Airbus Military
Airbus Military revenues increasedto € 2,684 million, driven by higher
A400M revenue recognition but
lower revenues in medium and lightaircraft and tankers.

* Unless otherwise indicated, EBIT* figures presented in this report are Earnings Before Interest and Taxes, pre-goodwill impairment and exceptionals.
1) Following integration of former Airbus Military into Airbus, Airbus is reporting in two segments: Airbus Commercial and Airbus Military. The Airbus Commercial
perimeter includes EFW and the completed aerostructures reorganisation but excludes the A400M. Airbus Military includes the former Military Transport Aircraft
Division as well as A400M Airbus operations. Eliminations are treated at the Division level.

eads groupat a glance

V

EADS Divisions’ results reflect the strong uplift
in commercial aviation, with a headwind approachingin institutional and governmental businesses.

Please refer towww.eads.com
for further
information.

Ariane 5

Eurofighter

ATR 72-600

Other Businesses 2)
(€ m)

2010

2009

Variation

2010

2009

Variation

2010

2009

Variation

5,003

4,799

+4%

5,933

5,363

+11%

1,182

1,096

+8%

Revenues

85

74

+15%

251

216

+16%

10

6

+67%

Self-financed R&D

283

261

+8%

457

449

+2%

25

21

+19%

EBIT *

6,037

8,285

-27%

4,312

7,959

-46%

1,668

969

+72%

Order intake

15,76014,653+8%

16,903

18,796

-10%

2,519

1,952

+29%

Order book

Astrium’s revenues increased by
4% to € 5,003 million, exceeding
expectations and marking a yearof strong programme execution.
Milestones included the start ofM51 ballistic missile deliveries to
the French Navy. Ten Astrium-built
satellites were launched in 2010
and Ariane 5 delivered its 41st
consecutive launch success.

Cassidian’s revenues rose by 11%
to € 5,933 million, with pressure
from tightening European defence
budgets. The strong revenue
increase reflects volume growthfrom core and export in Eurofighterand missile programmes, andprogress in Lead Systems Integrator
border security contracts.

The revenues of Other Businesses
increased by 8% to € 1,182 million,
driven predominantly by the ramp-up
in Light Utility Helicopter deliveries at
EADS North America. ATR delivered
52 of its turboprop aircraft tocustomers and received 78 firm
net orders.

* Unless otherwise indicated, EBIT* figures presented in this report are Earnings Before Interest and Taxes, pre-goodwill impairment and exceptionals.
2) Other Businesses is not a stand-alone EADS Division.

EADS Annual report 2010

at a glanceVI
Airbus Commercial
Airbus Commercial is market leader in the sector
for civil aircraft seating 100 or more passengers.
It offers airlines a highly competitive range of advanced,
fuel-efficient aircraft.

A320

A330/A340

A350 XWB

A320 Family

A330/A340

A350 XWB Family

Airbus’ Family of single-aisle
aircraft, based on the A320, includes
the A318, A319 and A321 derivatives.
With over 4,500 aircraft in service
at the end of 2010, the A320 Family
has proven extremely popular withairlines, offering high standards of
comfort and economic performanceon short and medium-haul routes.
In 2010, Airbus launched a new
eco-efficient option for its A320
Family aircraft, with new “sharklet”
wingtip devices and fuel-efficientengines. The A320neo (new engine
option) will deliver fuel savings of
up to 15%. Entry into service isplanned for 2015.

The A330/A340 Family has theversatility to fly either regional or
long-range routes, coming in six
different passenger configurations,powered by two or four engines.
The twin-engine A330 is designed togenerate maximum revenue and to
reduce operating costs on regionalroutes, while the four-engine A340
provides flexibility on long-range
flights. Airbus has also developed acargo variant of the A330 Family, theA330-200F, a mid-sized long-range
cargo aircraft, designed for fuelefficiency. First delivery of this aircraft
was made to Etihad Airways in July
2010. Airbus received 63 firm orders
for the A330/A340 Family of aircraftin 2010, and delivered 91 aircraft
to customers.

The A350 XWB (extra wide body)
Family is designed to meet airline
demand for a new generation of
medium-capacity, long-range
aircraft. With a fuselage made largelyof composite material, its low weight
will help airlines to cut fuel costs
and emissions. The wide body will
give passengers greater comfort onlong journeys. Launched in 2006,
the A350 XWB went into production
in 2010, with manufacturing of thefirst sub-assemblies. At the end of
2010, Airbus had received a total of
583 firm orders for A350 XWB Family
aircraft from 36 customers.

at a glance

Airbus

VII

A380

A380
The twin-deck A380 is the most
spacious and efficient large aircraftin service today. The baseline
aircraft has 525 seats and offers
passengers an unrivalled level ofcomfort while delivering superior
economic performance, lower
fuel consumption, less noise andreduced emissions. In 2010, the total
number of orders, including thosealready delivered, increased to 234
from 17 customers. Over the year,
Airbus delivered 18 A380 aircraft
to customers. By the end of 2010,
41 aircraft had entered service andnearly nine million passengers hadenjoyed the experience of flying
with the A380.

The year 2010 in review
10 JuneEmirates orders
32 Airbus A380
Dubai-based Emirates airline
orders a further 32 A380
from Airbus, taking its total
firm orders for the airline
industry flagship to 90.
Emirates and Airbus CEOs
sign the agreement in a
ceremony at the Berlin Air
Show, witnessed by German
Chancellor Angela Merkel.
20 July
Etihad takes deliveryof the world’s newest
freighter
Etihad Airways and Airbus
celebrate the UAE airline’s
status as the launchcustomer for the world’s
newest freighter aircraft,the wide-body A330-200F,
at the FarnboroughInternational Air Show.

19 September
Airbus Family day recalls“40 Years of Innovation”
Airbus marks 40 years
of innovation by inviting
145,000 employees, theirfamilies and friends to acelebration at its five sitesin Toulouse. Guests are able
to find out about aeronautics
careers, visit Airbus facilities,
watch flying displays
and take a closer lookat the aircraft.
1 December
Airbus offers A320 withnew fuel-saving engines
Airbus improves the ecoefficiency of its best-selling
A320 Family by launching afuel-saving option.
The A320neo (new engine
option) combines newengines with large wingtip
devices, called “sharklets”,
that reduce drag. Airbus will
start deliveries in 2015.

7 December
Airbus produces first
A350 XWB fuselage barrel
Airbus starts making thefirst carbon fibre barrel for
the A350 XWB fuselage at
the Company’s production
plant in Illescas, Spain.
The fuselage barrel
is 5.5 metres long and
56 square metres.

EADS Annual report 2010

at a glance

VIII
Airbus Military
Airbus Military is responsible for the European heavy
military transport A400M project and produces and sells
special mission aircraft, derived from existing aircraft
platforms. It is the global leader for light and medium-sized
military transport aircraft.

A330 MRTT

CN235

C295

A330 MRTT

CN235

C295

The A330 MRTT (Multi-Role Tanker
Transport) is the world’s leading
air-to-air refuelling aircraft with anenormous basic fuel capacity andan innovative fly-by-wire refuellingboom. Its huge basic fuel capacity
means that no auxiliary tanks areneeded to give air-to-air refuelling
performance that far exceeds
its nearest competitors. The entire
cargo bay is available for freight.

The CN235 is a twin-engine
turboprop transport aircraft capableof operating from short and unpaved
runways. The latest variant, theCN235-300, can transport a payloadof up to 6,000 kg, accommodating
36 paratroopers or over-sizedloads such as aircraft engines orhelicopter blades. Variants of theCN235-300 are used for missions
such as maritime patrol or pollution
control, among others. Including
all variants, over 275 CN235 havebeen sold since the beginning of
the programme.

The C295 has a basic configuration
similar to the CN235, with astretched cabin to airlift a 50%
heavier payload at greater speed
over longer distances. Over 70 C295
have been delivered to 12 operatorsfrom 11 countries. The C295 has
accumulated 90,000 flight hours in all
kind of environments: from the polar
arctic areas to deserts.

By the end of 2010, it had won orders
from Australia, Saudi Arabia, theUnited Arab Emirates and the UK,with a total backlog of 28 aircraft.

at a glance

Airbus

IX

A400M

A400M
Airbus Military’s A400M airlifter is acost-effective, high-speed turboprop
aircraft specifically designed to meetthe harmonised needs of NATOnations, as well as the requirements
of international air forces. Poweredby four modern turboprop engines,
the A400M is capable of cruising
speeds of up to Mach 0.72 andaltitudes up to 37,000 feet. The
A400M is designed for operations
from unprepared runways – enabling
it to deliver large payloads to tacticalforward bases or to evacuate afull complement of refugees orcasualties from remote areas. The
aircraft completed its maiden flightfrom Seville, Spain in December
2009 and first delivery is planned fora contractual date in early 2013.

The year 2010 in review
23 AugustUS Coast Guard orders
three CN235 maritime
patrol aircraft
The US Coast Guard orders
three additional Airbus
Military CN235 maritime
patrol aircraft through EADS
North America, the prime
contractor for EADS militaryand defence products in the
United States. The Coast
Guard has an option to buy
up to six more aircraft overfour years.

6 October
Military certification
for A330 MRTT
Airbus Military obtains
certification for the A330
Multi Role Tanker Transport(MRTT) from Spanish
military certification authority
Instituto Nacional deTecnologia Aerospacial,paving the way for deliveryof the first A330 MRTT to theRoyal Australian Air Force.
This follows shortly after the
UK Royal Air Force’s first
MRTT completed its maiden
flight in September 2010.

20 December
Fourth A400M makes
first flight
The fourth A400M
military airlifter takes
to the air for the first time.
The five-hour flight from
Seville, Spain caps
a highly successful 2010
for the A400M programme,with the development
fleet completing
1,000 flight hours.

EADS Annual report 2010

at a glance

X
Eurocopter is a global leader in the civil and militaryhelicopter market, offering one of the most complete
and modern ranges of helicopters and related services.
Overall, the Division’s products account for 33%
of the total world civil and parapublic helicopter fleet.

EC725

NH90

Tiger

EC225/EC725

NH90

The EC225/EC725 brings
Eurocopter’s latest rotor andall-weather technology to the 11-ton
helicopter class. The EC225 flies foroffshore oil and gas services, VIP
transport, and search and rescue
services. Its military twin, the EC725,
is in service with the French Armyand Air Force. The twin-engine
helicopter is equipped with afive-blade rotor and a large-capacity
fuel tank, providing enhanced
performance and a greater
flight endurance.

The NH90 medium-weight, multi-role
military helicopter has two basic
variants, the Tactical Transport
Helicopter and the NATO Frigate
Helicopter. The programme isa co-development with AgustaWestland and Fokker Aerostructures
within Nato Helicopter Industries(NHI). Eurocopter’s share of NHI is
62.5%. At the end of 2010, the NH90
programme had received 529 firm
orders from 14 nations.
Tiger
The Tiger is a medium-weight
air-to-air combat and fire-support
helicopter, fitted with twin engines.
It includes four variants, based on
the same airframe, which havebeen ordered by France, Germany,
Spain and Australia. Total deliveries
amounted to 70 as of the end of 2010.

Since 2009, the Tiger has been
deployed in Afghanistan by the
French Armed Forces with threehelicopters permanently on site
(1,600 flight hours).
EC135
The EC135 is a light twin-engine,
multi-mission helicopter made using
the latest carbon fibre technologies.
Variations have been designed
specifically for VIP transport, and for
rescue and police work. The EC135
has become the helicopter of choicein the world of emergency medical
services (EMS). More than 800 ofthese rotary-wing aircraft – including
400 in the EMS configuration – havebeen delivered to 160 customers in
40 countries since the programme
was launched. At the end of 2010,
the EC135 held a 63% share in themarket for this category of aircraft.

at a glance

EUROCOPTERXI

Eurocopter’s civil range

EC175
A joint development and production
programme of Eurocopter andAviation Industry Corporation ofChina (AVIC), the EC175 is a multi-role
helicopter in the seven-metric-ton
category. In addition to its version
for the oil and gas marketplace, theEC175 is being developed for searchand rescue missions and emergency
medical transport. It can meet theneeds of the commercial aviationindustry for VIP and corporatetransport. EC175 deliveries arescheduled to begin in 2012. At the endof 2010, a total of 114 commitments
for the EC175 had been placed by
14 customers.

The year 2010 in review
19 March
Eurocopter andHelibras breakground in Brazil
Eurocopter and its
Helicópteros do BrasilHelibras subsidiary start
to build a new rotary-wing
centre of excellence in
Itajubá, Brazil, where
Helibras will produce,
assemble and maintain
EC725 helicopters for theBrazilian armed forces.
The Brazil armed forces’
three initial EC725, built byEurocopter in France andfinished by Helibras, weredelivered in December 2010.
Assembly of the EC725 at
Itajubá will begin in 2012.

27 September
New hybrid X3
helicopter flies
Eurocopter begins
test flights of the X3
demonstrator for its
innovative high-speed,
long-range hybrid
helicopter concept.
Combining excellent
vertical takeoff and landing
capabilities, the X3 can fly
at cruise speeds of morethan 220 knots.
20 October
Eurocopter forms
Indian subsidiary
Eurocopter inaugurates its
new Indian subsidiary, withthe goal of expanding inthis fast-growing market,
reinforcing its support andservices network throughout
the country, and further
developing the company’s
four-decade relationshipwith Indian industry.
17 December
NH90 TTH for France
and Spain perform
maiden flights
France and Spain’s
NH90 Tactical Transport
Helicopters perform theirfirst flights at Eurocopter’s
Marignane facility insouthwest France.
The NH90 is the largest
helicopter programme everundertaken by Europe, andits capabilities cover the full
spectrum of activities, fromreconnaissance to casualty
evacuation.

at a glance

EADS Annual report 2010

XII
Astrium is the third largest space systems manufacturing
company in the world and the leading supplier in Europe.
It designs, develops and manufactures satellites,
orbital infrastructures and launcher systems and provides
space services.

Ariane 5

Ariane 5

ATV-2

Spot 5

Ariane 5

ATVServices

Ariane 5 is a heavy-lift satellite
launcher, with a payload capacity of
up to ten tonnes. Since becoming
operational in 2005, it has
proved reliable and flexible, with
41 successful launches in succession
up to the end of 2010. Astrium isthe sole prime contractor for the
Ariane 5 system and is the largest
industrial shareholder in Arianespace,which markets and sells the Ariane
launcher worldwide and carries out
launches from the Guiana Space
Centre in Kourou, French Guiana.
Astrium is prime contractor for future
developments on Ariane 5, startingwith the development of the Ariane 5
ME (Midlife Evolution) launcher, which
will provide an increased payload
capacity of up to 12 tonnes.

Astrium is the prime contractor forthe development and constructionof the Automated Transfer Vehicle(ATV) cargo carrier, designed to carryfuel and supplies to the International
Space Station (ISS) and to provide
reboost capability and a waste
disposal solution. The first ATV, “Jules
Vernes”, was launched in 2008 anddocked to the ISS. After six months
in orbit, it was de-docked from theISS and burned up on re-entering
the atmosphere. The second ATV,
“Johannes Kepler”, was launchedfrom Kourou, French Guiana on
16 February 2011, successfully
docking to the ISS a week later.

Astrium offers innovative, tailoredsolutions in the fields of securecommunication and geo-information
services. Following a contract
extension signed in 2010,
wholly-owned subsidiary Paradigm
will provide the UK Ministry of
Defence with military satellite
communications services until atleast 2022. A team led by Astrium isproviding Germany’s armed forces
with a secure satellite communication
network. The system began
operations in 2010.
With its subsidiaries Infoterra andSpot Image, Astrium Services is also
a provider of both optical and radarbased geo-information services.

at a glance

Astrium

XIII

Eurostar 3000

Eurostar 3000
Astrium produces telecommunication
satellites for fixed and mobile
applications and direct-to-homebroadcast services. Its geostationary
telecommunication satellites are
based on the Eurostar Family
platforms, of which 63 had beenordered up to the end of 2010.
The latest version is Eurostar 3000.
Astrium’s telecommunications
satellites are used for both civil
and military applications.

The year 2010 in review
9 MarchUK Ministry of Defence
orders fourth Skynet 5
satellite
Paradigm, a wholly owned
subsidiary of Astrium
Services, signs a contract
with the UK Ministry of
Defence (MoD) to extend
the Skynet 5 programme by
two years until 2022. This
will involve the manufacture,launch, test and operationof a fourth satellite, Skynet
5D. The Skynet 5 contract
ensures that British andallied troops have accessto critical communications
whenever needed.
27 April
Satellite Helios IIB
launched
Astrium achieves in-flight
acceptance of the Helios IIB
observation satellite on
behalf of the French Defence
Procurement Agency andunder delegation from the
French space agency CNES.

Helios IIB enters operation,
serving France, Belgium,
Spain, Italy, Greece andGermany.
11 MaySecond ATV achieves
milestone
The second of theEuropean Space Agency’s
Automated Transfer
Vehicles (ATV) cargo craft
is cleared for shipping to
the launch site in Kourou,
French Guiana. ATV-2 isnamed after astronomer
and mathematician
Johannes Kepler.
7 JulyContract to start new
generation launcher
The European Space
Agency (ESA) selects
Astrium to undertake initialdevelopment studies fora next-generation launcher
for future satellite launches.
This 15-month project has
a total contractual value of€ 8.5 million, and Astrium willcontribute € 1.5 million of thisfrom its own funds.
29 December
41st consecutive successfor Ariane 5
The Ariane 5 launch vehicle
takes off successfully from
Kourou, French Guiana,
for the 41st time in a row.
The launcher places
two telecommunications
satellites in orbit, Hispasat 1E
and Koreasat 6.

EADS Annual report 2010

at a glance

XIV
Cassidian is the main pole of EADS’ defence and global
security activities. Its wide range of products and services
include the Eurofighter combat aircraft, missile systems,
integrated defence and security solutions, defence
electronics and related services.

Security Solutions

TRS-3D RadarEuro Hawk

Security Solutions

produces mid-range radars for ship

UAS

Security threats often call for multiple
responses from different services.
The need to coordinate action
has driven demand for integrated
security solutions. Cassidian delivers
integrated systems for bordersecurity, maritime security, crisisand emergency response, as well as
for protection of infrastructure andpopulations. Cassidian Professional
Mobile Radio (PMR) solutions
enable security organisations tocommunicate effectively, reliably
and securely.

(TRS-3D/4D) and land (TRML-3D)

In the field of Unmanned Aerial
Systems (UAS), Cassidian is seeking
to develop leading technologies andproducts based on its projects todate, which include Talarion, Harfang,
Barracuda and DRAC systems.
Cassidian and its US partner
Northrop Grumman are supplying theGerman forces with the Euro Hawk
UAS. Euro Hawk is a high-altitude
Unmanned Aerial System for signal
intelligence.
Cassidian is responsible for the overall
mission system, including situation
analysis and reporting, as well as
sensor-payload and modifications.
In 2010, Euro Hawk successfully
undertook its first flight in Palmdale,
California.

RadarsCassidian is heavily involved in thetechnological development andapplication of next-generation active
electronically scanning (AESA) radars
for air, naval and ground applications.
In the area of air defence, Cassidian

applications. The TRS-3D radar has
been selected for the US Navy’s
Littoral Combat Ship and is also being
supplied to the US Coast Guard for its
fleet of National Security Cutters.
Missile Systems
MBDA, a joint venture between
EADS, BAE Systems andFinmeccanica, is the missile systems
group within Cassidian. The broad
range of MBDA products covers
all six principal missile system
categories: air-to-air, air-to-surface,ground-to-air, surface-to-air, anti-ship
and surface-to-surface. Programmes
currently under development include
the Aster Paams naval air defence
system and the Meteor air superiority
missile system.

at a glance

Cassidian

XV

Eurofighter

Eurofighter
Eurofighter, known as “Typhoon”
for export outside of Europe, is a
network-enabled, extremely agile,
multi-role combat aircraft optimised
for swing-role operations in complex
air-to-air and air-to-surface combat
scenarios.
Participating countries in theEurofighter programme include theUK, Germany, Italy and Spain, andthe aircraft is competing in major
export campaigns. The 250th delivery
was achieved in 2010.
The Eurofighter is designed to beadapted and improved over the longterm, as new avionics and weaponsevolve, to provide for an extended
service life.

The year 2010 in review
17 MayCassidian commissioned
to deliver Future Soldier
SystemGermany’s Federal Officeof Defence Technology
and Procurement orders
a further 220 units of the
Future Soldier System
infantry equipment, including
bullet-proof vests andcommunications equipment,
to meet the needs of
the Bundeswehr forces
deployed in Afghanistan.
31 MayCassidian forms strategic
Brazil joint venture
Signalling its commitment
to the Brazilian market,
Cassidian forms a joint
venture with the Odebrecht
Organisation, one of
the country’s biggest
companies. The twocompanies aim to forge along-term partnership, withan industrial base servicing
regional defence andsecurity needs.

29 JuneEuro Hawk makes
first flight
The Euro Hawk Unmanned
Aerial System, built by
Northrop Grumman
Corporation and Cassidian,successfully completes
its first flight, reaching an
altitude of 32,000 feet overthe Palmdale desert in
California. The Euro Hawk
has a wingspan larger
than a commercial airliner,
endurance of 30 hours anda maximum altitude of morethan 60,000 feet.
20 July
Eurofighter GmbH andEuroradar to develop
latest-generation radar
Together with their industrial
partners, EurofighterGmbH and Euroradar begin
full-scale development of
a new-generation Active
Electronically Scanned Arrayradar for the Eurofighter.
The radar will enter service
in 2015.

19 AugustAcquisition of leading
cyber-security company
Cassidian acquires
UK-based Regency IT
Consulting, strengthening its
cyber-security capabilities.
The acquisition will ensurethat Cassidian stays at theforefront of cyber-security
expertise and has keen
insights into emerging
threats.

EADS Annual report 2010

XVI

OTHER BUSINESSES

Other Businesses

UH-72A Light Utility Helicopter

ATR 42-500

EADS North America

ATR

EADS North America is the North American operation of
EADS. Headquartered in Arlington, Virginia, the company
offers a broad array of advanced solutions for fixed- androtary-wing aircraft, homeland and cyber security, telecommunications, defence electronics and avionics, andservices. It is prime contractor for the US Army’s UH-72A
Light Utility Helicopter programme. On 4 March 2010,
the 100th helicopter was delivered on-time and on budget.

ATR is the world’s leading manufacturer of advanced
50 to 74 seat regional turboprop aircraft. ATR is a joint
venture and equal partnership between EADS and Alenia
Aeronautica. ATR’s Family of 42- and 72-series highwing, twin turboprop aircraft are designed for optimal
efficiency, operational flexibility and comfort. Since thebeginning of the programme, ATR has booked net orders
for 1,074 aircraft (423 ATR 42 and 651 ATR 72).
A Family upgrade was launched in October 2007.
Deliveries of the first ATR 72-600 are scheduled to startby mid-2011, while deliveries of ATR 42-600 are due tostart before the end of the year 2011.

GLOBAL sales

at a glance

Global Sales


XVII

47%

8%

 

EuropeNorth America

Asia Pacific

1)

(€ m)

25%

1)

2010

(€ m)

2010

(€ m)

1)

2010

Revenues

21,402

Revenues

3,507

Revenues

11,335

Order intake

17,813

Order intake

19,235

Order intake

28,772

Order book124,291

Order book

63,425

Order book124,645

EADS leverages Europe’s
well-established aerospacecapabilities and is expanding its
cooperation in Eastern Europe andRussia. In 2010, UTair Aviation,
Russia’s largest helicopter operator,
signed a contract with Eurocopter
Vostok for the acquisition of twenty
AS350/AS355 helicopters.

13%

 

1)

EADS is a leading supplier andindustrial partner in North America
and has been selected to provide
major equipment programmes
for the Army and the Coast Guard.
In 2010, EADS North America
delivered its 100th Lakota Light
Utility Helicopter to the US Army.



Middle East

7%

1)Rest of the world

(€ m)

2010

(€ m)

2010

Revenues

6,247

Revenues

3,261

Order intake

9,277

Order intake

8,050

Order book

101,124

Order book

35,008The Middle East is an attractive
market for EADS where significant
breakthroughs have been madein new fields such as bordersurveillance or air-to-air refuelling
aircraft. Middle East airlines areimportant Airbus customers. In 2010,
Emirates ordered a further 32 A380,
taking its total firm orders for thisaircraft to 90.

1) Of Group revenues.

Amongst other regions, Latin
America offers numerous commercial
and industrial opportunities. EADS
is seeking to develop strategic
partnerships with Brazil in space,defence and security domains.
In 2010, Cassidian signed anagreement with Odebrecht in Brazil
for a joint-venture in the fieldof defence and security technology.

Asia Pacific is an important region
for the EADS Group. China andIndia, in particular, show huge market
potential, while Korea and Vietnam
also offer significant opportunities.
In 2010, Astrium signed a contract
with Vietnam for delivery of an optical
Earth observation satellite system.

EADS Annual report 2010

XVIII

at a glance

EADS Shares
In 2010, EADS was the seventh best performer of the CAC 40.
It outperformed the CAC 40 and DAX, as well as the Dow
Jones US Select Aerospace & Defense index. In a positivemarket environment, EADS benefited from a favourable dollar
development, encouraging news on aircraft orders andthe gradual derisking of the A400M and A380 programmes.
Early in the year, EADS’ share price benefited from a general market upturn. Following
positive news on the continuation of the A400M programme, the EADS share rose to€ 15.96 on 5 March 2010. The share price decreased after EADS announced a moreconservative than expected EBIT* outlook for 2010 and, more generally, as markets
became unsettled by sovereign debt issues. After retreating to € 13.56 on 7 May 2010
the EADS stock rebounded, however, driven by positive market data. The weakening
euro, which fell below US$ 1.20 on 6 June supported the advance, as did theannouncement of new aircraft orders, in particular the Emirates order for 32 A380.
A conservative EBIT* outlook for 2011, announced in November 2010 with the ninemonths results, caused the share price to dip back to € 16.68 on 23 November.
In December, the share began to recover again in a strong commercial environment.
On 31 December 2010, the EADS share price closed at € 17.44, having gained 23.82%
over the year. During the same period the CAC 40 fell -3.34%.

Please refer towww.eads.com
for further
information

ProfileNumber of shares
as of 31 December 2010

High in 2010 on Paris
Stock Market: on 21 September

816,402,722€ 19.60

ISIN code

NL0000235190

Low in 2010 on Paris
Stock Market: on 15 February€ 13.55

at a glance

EADS SHARES

XIX

Share Price Evolution as of 31 December 2010
Base 100 as of 2 January 2008

EADS share price in €

2008

2010

2009

100

25

20

80
15
60
10
40
5

20
J F M A M J J A S O N D
EADSCAC 40MSCI World Aero/Defence(in €, adjusted daily US$/€ rate)

Shareholder Structure as of 31 December 201022.46%	Sogeade (Lagardère and French state holding
company Sogepa)
22.46%

Daimler*

5.47%

SEPI (Spanish state holding company)

0.06% 	Shares held out of the contractual partnershipby the French state
49.16%

Institutional, retail and employee ownership

0.39%

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

EADS Annual report 2010

XX

at a glance

EADS Management Structure
as of 1 April 2011
GROUP FUNCTIONS

Chief Financial Officer
Hans Peter Ring
Corporate Secretary
Pierre de Bausset

Chief Strategy
and Marketing Officer
Marwan Lahoud

Board of Directors
Bodo Uebber(Chairman)

Legal Department
Peter Kleinschmidt

Louis Gallois
Rolf Bartke
Dominique D’Hinnin
Juan Manuel Eguiagaray
Arnaud Lagardère

Human Resources
Jussi Itävuori

Corporate
Communications
Pierre Bayle

EADS North America
Sean O’Keefe

Compliance Officer
Pedro Montoya

Chief Technical Officer
Jean Botti

Political Affairs
François Desprairies (F)Ditmar Staffelt (G)Jacinto G. Palacios (S)Chief Executive Officer
Louis Gallois

Hermann-Josef Lamberti
Lakshmi Mittal
Sir John Parker
Michel Pébereau
Wilfried PorthE xecutive
Committee Member

Coordination Spaceand Defence
François Auque

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

at a glance

EADS Management Structure

XXI
DIVISIONSOPERATING COMPANIESATRFilippo Bagnato

AirbusThomas Enders (CEO)FabriceBrégier 1)(COO)

Airbus Military
DomingoUreña-Raso

Premium Aerotec 2)
Hans Lonsinger

Aerolia 2)
Christian Cornille

EADS Sogerma 2)
Jean-Michel Léonard

Elbe Flugzeugwerke 2)
Andreas Sperl

Eurocopter
Lutz Bertling

Astrium
François Auque

Astrium Satellites
Evert Dudok

Astrium Services
Eric Béranger

Astrium SpaceTransportation
Alain Charmeau

Cassidian Electronics
Bernd Wenzler

Cassidian Air Systems
Bernhard Gerwert

Cassidian Systems
Hervé Guillou

Cassidian 3)
Stefan Zoller
MBDA
Antoine Bouvier

Eurofighter
Enzo Casolini

The four Divisions – Airbus, Eurocopter, Astrium and Cassidian – 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.
1) Responsible as Executive Committee Member, of a permanent Group-wide mission to ensure EADS enhanced operational performance.
2) 100% EADS owned, management delegated to Airbus.
3) The organisation of Cassidian is under revision and is due to change from 1 August 2011 onwards.

EADS 2010

annual review
Contents
long-term value

THE BIG PICTURE

BUILDING THE FUTURE

08	Letter from the Chairmanof the Board

24	Interview with the Chief
Strategy and Marketing Officer

54 Human Resources

10	The Board of Directors

26	Markets and Perspectives

12	Corporate Governance14	Chief Executive Officer’s
Message16	The Executive Committee18	Interview with the Chief
Financial Officer

56 Innovation
58 Programme Management
60 Sourcing

CONTINUING SUCCESS

62 Eco-efficiency

36	The Year in Review
38	Airbus
44	Eurocopter
46	Astrium
48 Cassidian

64 Glossary
66 Addresses
68 Shareholder Information

EADS Annual review 20102

Built from vision
our continuing su
creating long-ter
Our flight into theEADS Annual REview 2010

and innovation,
ccesses arem value.
future starts today.

3

Our flight into the future
The 10,000 school children who we invited to EADS sites across Europe
to celebrate our 10th anniversary represent our future. At EADS, we anticipate
the products our clients will need 10 or 20 years from now. By doing so, we stayahead of the game, make more possible for our customers and deliver productsthat are at the cutting edge. By thinking long-term, we create value for all our
stakeholders, including the children who will work here tomorrow.

longval-termue

“I am convinced thatthe high level of EADS
technology and employee
commitment will drive
long-term value.”— Louis Gallois
Chief Executive Officer

EADS is a world leader in theaerospace and defence industry
and can count on the expertise andpassionate commitment of some
122,000 employees around the world.

EADS Annual review 2010

8

LONG-TERM VALUE

Letter from the Chairmanof the Board
In 2010, EADS turned ten. Management, employees and shareholders lookedback on an eventful decade, in which the Group captured top spots in our
industry. Everyone who contributed to this European success story can beproud. EADS’ strength today is remarkable, as became even more apparent
during the global economic crisis. The Group proved resilient during thisdifficult time. Our management of the order backlog was outstanding,
not the least because of customer loyalty and the quality of our order book.
These attributes contributed significantly to EADS’ impressive recovery last year.
Overall performance in 2010 was better than expected. When we closed
our books, all key financial indicators were above management guidance,
particularly cash flow and order intake. Initiatives launched to enhance
programme management, reduce costs and create efficiencies have all
begun to deliver results. For our part, the Board lived up to its task of guiding
management on a number of fronts.
We facilitated the implementation of a comprehensive compliance organisation,
and are pleased with the processes and procedures that have now been
put in place. The Audit Committee, to which the compliance organisation
reports regularly, can focus on project-related reviews. Where necessary,
we will continue to pursue further organisational enhancements.
Our Enterprise Risk Management has also become well established.
Its creation was decisive in improving programme control, and it holds the key
to further enhancements. The Board fully endorses its rigorous Group-wide
implementation. “Risk flagging” and mitigation must be a vital part ofour management culture – and EADS is evolving significantly in this regard.
The Board also examined major programmes closely, such as the A350 XWB,
A380, A400M, NH90 and Tiger. We focused on de-risking initiatives – an area
where EADS truly progressed in 2010. A380 production is under control andthe A400M programme stands on a robust foundation again. I am especiallyproud of the Board’s role in finding a solution to the A400M negotiations.
Importantly, after dealing mainly with operational challenges in the past,
the Board was able in 2010 to focus more on the strategic context, vision,and forward looking initiatives to support sustainable growth. Nimblenessand anticipation are mandatory to succeed in today’s dynamic businessenvironment. The Strategic Committee and the Board spent a considerable
amount of time discussing globalisation strategies as well as future
programmes. The Board subsequently approved a key investment in the
A320neo (new engine option), which is of fundamental importance to EADS.

LONG-TERM VALUE

Letter from the Chairman of the board“As EADS pushes ahead with
its flight into the future, we arecommitted to holding the course.”
Finally, the Remuneration and Nomination Committee had the complex taskof redesigning EADS’ remuneration system. The Board approved the
proposed measures. We did not take this decision lightly because the leversof performance management and planning are very sensitive. But this wasa prudent decision, as we need carefully calibrated indicators to steer EADS’
ambition effectively. I am convinced the new mechanism put in place is geared
towards achieving this objective.
In summary, the Board played its part in EADS’ recovery in 2010. We werepleased to note that the share price reflected this positive trend. Clearly, ourpositive results have raised the bar in terms of market expectations. We will doour utmost to ride this successful path. Accordingly, the Board will focus on
three particular aspects in 2011:
 irstly, we will continue and improve our work by fine-tuning newlyF
introduced procedures and processes. A special emphasis will remain
on de-risking of programmes further.
 econdly, we will concentrate on strategic initiatives to ensure EADSS
is poised for global growth and for capturing evolving business sectors,
while anticipating changes in the competitive landscape.
 hirdly, we will use the new target setting and remuneration processTto ensure sustainable financial progress towards benchmark profitability.
All these efforts provide a sound basis which will ensure that the successful
work of the Board will sustainably be pursued.
EADS’ development since its foundation is a source of great pride for us.
Our employees continuously show their enthusiasm for our products andtheir loyalty to the community we form together. Now, as EADS pushes ahead
with its flight into the future, we are committed to holding the course. We all
share the same interest in the pursuit of sustainable profitability for EADS: yourpriorities are ours. It is with great pleasure that the Board of Directors proposesa resumption of the Company’s dividend policy to reward you for your loyalty
with a payment of 22 cents for 2010. This is a first step towards our objectiveof achieving a gradual improvement of dividend in the coming years, throughenhanced profitability and programme execution. It is our honour to serve youon this exciting flight.
Truly yours,

Bodo Uebber
Chairman

9

EADS Annual review 2010

LONG-TERM VALUE

The Board of Directors

10

01

02

07

03

08

01

02

03

BODO UEBBER (51)

LOUIS GALLOIS (67)

HERMANN-JOSEF LAMBERTI (55)Besides his position as Chairman,
Mr Uebber is a member of theManagement Board of Daimler AG
responsible for Finance & Controllingas well as the Daimler Financial
Services Division. He previously held
various leadership positions in financewithin Dornier Luftfahrt GmbH, DASAAG and MTU Aero Engines GmbH.

Prior to his current position, Mr Gallois
was successively Chairman and CEOof SNECMA and of Aerospatiale,
Chairman of SNCF, President andCEO of Airbus, and an EADS Director
since the creation of the Company.
Earlier in his career, he held positionsin the French Ministries of Economy& Finance, Research & Industry,and Defence.

07

08

09

DOMINIQUE D’HINNIN (51)

JUAN MANUELEGUIAGARAY UCELAY (65)

ROLF BARTKE (63)Chairman of the Board of Directorsof EADS

Co-Managing Partner of Lagardère SCA

Besides being Co-Managing Partnerof Lagardère SCA, Mr D’Hinnin is its
CFO. Previously, he held management
positions within Lagardère,
successively serving as Internal Audit
Manager, CFO of Hachette Livre andExecutive Vice President of Grolier Inc.
in the US.

Chief Executive Officer of EADS

Economic Advisor

Mr Eguiagaray is a renowned
economist and formerly Spain’s
Minister for Public Administration(1991-93) and for Industry and Energy(1993-96). He has also served as a
Professor of Economics at Deusto
University in Bilbao and at Carlos III
University in Madrid.

Member of the Management Boardof Deutsche Bank AG

Mr Lamberti is the COO of Deutsche
Bank AG, which he joined in 1998.
He previously gained wide experience
within IBM, in the fields of controlling,internal application development,
sales, personal software, marketingand brand management.

Chairman of Keiper-Recaro-Group

From 2005 until 2009 Mr Bartke was
Chairman of Kuka AG. He headed thevans business unit at DaimlerChrysler
AG from 1995 to 2006. Previously,
he was Managing Director in various
positions within Daimler AG.

LONG-TERM VALUE

THE BOARD OF DIRECTORS

11

04

05

09

06

10

11

04

05

06

SIR JOHN PARKER (68)

ARNAUD LAGARDÈRE (49)

LAKSHMI N. MITTAL (60)

Prior to his current positions, Sir John
Parker held several management
positions in the engineering,shipbuilding and defence industries,
including some 25 years’ experience
as a Chief Executive Officer with
Harland & Wolff and the Babcock
International Group.

Prior to his current position,
Mr Lagardère held various top
management posts, including CEO
of Lagardère Media and Lagardère
Active, CEO of Grolier Inc. and Head of
emerging activities & electronic media
for Matra. Furthermore, he held theposition of Co-Chairman of EADS
from 2003 to 2007.

Mr Mittal is an entrepreneur who
founded the Mittal Steel Company.
The company has successfully grownthroughout the years to become theworld’s largest steel maker. Mr Mittal is
widely recognised for his leading role inrestructuring the global steel industry.

10

11

WILFRIED PORTH (52)

MICHEL PÉBEREAU (69)

Mr Porth is Daimler’s Director for
Human Resources. He is also in chargeof labour relations, IT-management
and Procurement of Non-Production
Material & Services. He previously held
various engineering management
and other top positions within the
Daimler Group.

Mr Pébereau has been the Chairmanof BNP Paribas since 2003. Previously,
he led BNP bank, presiding over themerger that created BNP Paribas
in 2000. He also led the Crédit
Commercial de France, after holding
various high ranking positions within
the French Treasury.

Chairman of National Grid PLC
and Anglo American PLC

Member of the Board of Managementof Daimler AG

Managing Partner of Lagardère SCA

Chairman of the Board of Directorsof BNP Paribas

Chairman and CEO of ArcelorMittal

For more detailed
information,please refer tothe Corporate
Governance sectionin the Registration
Document 2010.

EADS Annual review 2010

12

LONG-TERM VALUE

Corporate Governance

Focusing on major strategic and operational
issues, Board discussions concentrated on
topics such as the launch of the A320neo and
the A400M contract negotiations.

Board meetings
The Board of Directors met 12 times during 2010, withattendance averaging 80%. The Chief Executive Officer
kept it fully informed through business reports, strategicand operational plans.
Throughout the year, the Board monitored the progressof significant programmes, such as the A350 XWB and
A380 aircraft, and NH90 and Tiger helicopters. It was
kept informed about the A380 Qantas engine incident
and reviewed the status of the programme management
improvement initiative throughout the Group. The Board
approved the launch of the A320neo (new engine option),
as well as the bid for the US Department of Defense’s
tanker replacement programme. It was also involvedin the A400M contract negotiations. From a strategic
perspective, along with the objectives set forth in Vision
2020, the Board also focused on cash management,savings from improvement and efficiency programmes,
compliance in key business processes and employee
engagement.

General topics addressed by the Board included:
EADS’ strategy (including the competitive environment),
the Group’s financial results and forecasts, Enterprise
Risk Management results and system, investor relations
and financial communication policy, as well as legalrisks. The Board approved a change in the Company’s
executive remuneration structure and system and focusedon succession planning. Finally, it decided to replace the2010 employee share ownership plan by a free share planfor every eligible EADS employee, in celebration of EADS’
10th anniversary.
Board self-assessment
The Corporate Secretary conducted the annual selfassessment in early 2011, which concluded that theBoard’s work as a team has grown increasingly efficient,
allowing it to explore new domains and tackle relevant
matters in the best interest of the Group.
The Directors felt they were given more time to address
longer term questions than in the past. During 2010,
for the second time, they devoted a full day meeting
to strategy, which was held at an industrial site.
This practice is considered beneficial and will be
continued.

Corporate governance

LONG-TERM VALUE

13

Overall, the Board considers that it assembles a very
international and varied set of skills, with competencies
centred on business and finance; it believes that its
renewal in 2012 will be an opportunity to fine-tune its
composition, which may improve gender diversity.
The Audit Committee
The Audit Committee met eight times, with an 88%
average attendance rate, to review financial results,
performance and disclosure. It also reviewed thecompliance organisation’s processes and achievements,
the enterprise risk management system’s effectivenessand internal audit.
The Remuneration and Nomination Committee
The Remuneration and Nomination Committee met fourtimes, with an 88% average attendance rate. In addition
to making recommendations to the Board of Directors for
major appointments, the Committee reviewed proposedchanges to the executives’ remuneration structureand system from 2011 onwards. Executive Committee
members’ 2010 salaries, long-term incentive plan,variable pay for 2009 and succession planning were also
discussed as well as a possible adaptation to the 2011
employee share ownership plan.
The Strategic Committee
The Strategic Committee met twice, with a 90% averageattendance rate. It monitored major strategic anddivisional initiatives, acquisition targets and disinvestment
candidates, as well as the Group’s top priorities.
Furthermore, it made recommendations to the Board
linked to the competitive landscape and home countries
industrial policy, Company perception in key markets, andrecent constraints on defence budgets. A thorough reviewof technology development in EADS was also conducted.

Committees of the Boardof Directors
Audit Committee
Hermann-Josef
Lamberti (Chairman)
Rolf Bartke
Dominique D’Hinnin
Sir John Parker

Strategic
Committee
Bodo Uebber (Chairman)
Louis Gallois
Arnaud Lagardère
Michel Pébereau

Remuneration
and Nomination
Committee

Wilfried Porth

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

Shareholder Structure as of 31 December 201022.46%	Sogeade (Lagardère and French stateholding company Sogepa)
22.46%	Daimler*
5.47%	SEPI (Spanish state holding company)
0.06%	Shares held out of the contractual
partnership by the French state
49.16%	Institutional, retail and employee
ownership
0.39%	Treasury shares (without economic
or voting rights)* On 9 February 2007, Daimler reached an agreement with a consortium of private
and public-sector investors by which it effectively reduced its shareholding in
EADS by 7.5%, while retaining its voting rights over the entire 22.5% package
of EADS shares.

For more detailed
information,please refer tothe Corporate
Governance sectionin the Registration
Document 2010.

EADS Annual review 2010

14

LONG-TERM VALUE

Chief Executive Officer’s Message
Last year, EADS celebrated its 10th anniversary, concluding a decade in which
it has matured into a world leader in aerospace and defence. In just ten years,
EADS has emerged from a collection of medium-sized national companies
to become the foremost model of European integration.
After a phase of operational and financial progress but also turbulence, we haveembarked on the next decade of our development. Sound business performance
has allowed us to shift our main focus from securing stability to promoting growth.
Revenues increased in 2010, our cash flow generation was robust, and order intake
for commercial aircraft was excellent. EADS is emerging from the crisis stronger thanit entered.
The key development that freed us to move to the next stage of our growth
was improved programme management across our major programmes.
The highlights include:
The A380 programme is now under control, its rate of production steadily
improving. The programme management improvement initiative launched
two years ago is reinforcing this crucial skill-set throughout EADS.
 he A400M’s remaining development risk is substantially reduced, demonstrablyTfor our launch customer nations – a fantastic achievement compared to a year
ago. The contract is clarified and we are progressing towards certification.
 s the A350 XWB enters a critical phase with the start of production,
A
Airbus has the benefit of the lessons learnt on previous programmes.
 inally, Eurocopter is making huge progress in managing the NH90 and Tiger
F
helicopter programme challenges, with output moving notably higher although
work remains to be done.
Beyond this, EADS achieved a number of other milestones in 2010 within
the Divisions that hold the key to profitable future growth.
By launching the A320neo (new engine option), Airbus has given its customers theopportunity to fly further, more economically, with a reduced environmental impact.
From 2015, the A320neo will enable airlines to reduce fuel consumption by up
to 15% compared with the present A320. Early commercial success demonstrates
the strong underlying rationale for this aircraft.
Astrium demonstrated its reliability with a year of strong programme execution.
Among other successes, the Division started in 2010 with impressive on-timeand on-quality deliveries of M51 ballistic missiles to French forces.

“Now that we have entered our second
decade of operations, I am convinced
we can realise the Group’s full potential.”

LONG-term VALUE

Eurocopter is continuing to invest in its innovation strategy in spite of a challenging
environment for the helicopter market. The X3 demonstrator’s first flight showed how
this is promising enhancements of helicopter performance; subsequent innovations
are high on our agenda.
Finally, Cassidian advanced its globalisation strategy. 2010 gave birth to several new
partnerships, particularly in high-growth markets such as Brazil and India.
We are focusing on making EADS’ flight into the future a successful one. We know
our people are the key to achieving that. Therefore, management has challenged
the status quo and conducted the second round of the Engagement Survey in2010. It revealed improving employee satisfaction and we are redoubling ourefforts to lift engagement up. We are committed to keeping EADS an innovative
and attractive employer.
Improvement programmes continue to be part of our flight plan, too, being yet
another key to competitiveness. At Group level, Future EADS is on track in termsof delivering savings and, more importantly, fostering integration.
By the end of 2010, Power8 had met its targets, and had been instrumental in helping
Airbus to weather the economic crisis. Other cost saving plans which stretch acrossAirbus and other parts of EADS, will maintain this positive momentum until 2014.
As our markets evolve, so must we. Astrium (AGILE) and Eurocopter (SHAPE)
are making progress with transformation programmes launched in 2010, while
Cassidian follows in 2011. Adapting to ever-changing dynamics is a prerequisite
for the Divisions’ success.
Being competitive and integrated is vital for the success of our Vision 2020 strategy.
We have a huge task ahead of us in better balancing our portfolio of activities andbecoming less dependent on Airbus commercial aircraft cycles, developing, inparticular, services, security, and defence outside Europe in a period of budget
constraints in our domestic countries.
This is why we are building EADS on three strategic pillars. Certainly, we will
maintain our presence in Europe where our roots are. In parallel, we must give a moreglobal base to our footprint to get access to the United States, a key market in our
industry, and emerging markets to benefit from their dynamism.
Now that we have entered our second decade of operations, I am convinced we
can realise the Group’s full potential. We are starting to demonstrate the power ofstability and maturity. We are committed to improving profitability, knowing it will
not only fuel our flight into the future but also ensure highest long-term value forour shareholders, employees and customers.
Yours sincerely,

Louis Gallois
Chief Executive Officer

Chief executive officer’s message

EADS Annual review 2010

LONG-TERM VALUE

16

From left to rightFirst row

From left to right
Second row

STEFAN ZOLLER

HANS PETER RING

Mr Zoller is in charge of driving
successful business performanceat Cassidian while preparing
the Division’s future.

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

FABRICE BRÉGIERDOMINGO UREÑA-RASO

JEAN BOTTIMr Brégier is Airbus COO andmanages its operations and Power8.
He has the additional permanent
mission of enhancing operational
performance across the EADS Group.

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

Mr Botti’s mission is to steer EADSGroup R & T strategy, activities andto secure the innovative technologies
and manufacturing tools for theCompany’s future.

leads the Cassidian Divisionleads Group-wide improvement
initiatives and the operations of Airbus

is the Chief Financial Officer of EADS

drives Airbus MilitaryFRANÇOIS AUQUE

heads the Astrium Division andcoordinates Space and Defence activities

Mr Auque is responsible forthe success of Astrium andcoordinates between the Group’s
defence, security and space
activities to foster synergies.

steers EADS’ Research and Technology,
Innovation, Technical means and policies

LONG-TERM VALUE

the executive committee

17

LOUIS GALLOISTHOMAS ENDERS

Marwan Lahoud

Mr Gallois is responsible forthe overall successful managementof EADS Group business andoperations. He chairs the Executive
Committee.

As Airbus Chief Executive, Mr Enders
is responsible for the overall successof all Airbus activities, commercial
and military, driving ongoingand development programmes
and strategic initiatives.

Mr Lahoud is responsible for elaborationand execution of the Group’s strategy
including Merger and Acquisition
operations, as well as the Group’s
international development and marketing.

SEAN O’KEEFEJUSSI ITÄVUORILutz Bertling

Mr O’Keefe has strategic,
management and operational
responsibilities in the US to expand
the EADS market presence
in coordination with the EADS
operating Divisions.

Mr Itävuori’s role is to ensure that
the EADS workforce is efficiently
managed, engaged and competent tobe able to master present and futurechallenges.

Mr Bertling’s mission is to strengthen
Eurocopter’s leading position anddeliver commercial success andcustomer satisfaction on all helicopter
programmes.

is the Chief Executive Officer of EADS

heads EADS North America

leads the Airbus Division

drives EADS’ Human Resources

leads EADS’ Strategy
and Marketing activities

heads the Eurocopter Division

EADS Annual review 2010

18

LONG-TERM VALUEInterview with the Chief Financial Officer
Hans Peter Ring

Free cash flow at €2.7 billion was significantly above theprevious year’s mark, based on active cash management
and an improved financing environment. And, after a€553 million contribution to pension assets, our net cash
position is now at the record level of €11.9 billion.
Our profitability was better than expected, even if not at asatisfactory level. And we aim to improve it further in future.
In the past, you have highlighted the importance of
cash as an asset to cope with the economic crisis.
The macro-economic environment is improving now.
How does this affect your thinking about cash?
Cash management remains a key priority for us. A strong
cash position gives us flexibility to manoeuvre, a solid
foundation for our operational and strategic needs.
In the near term we will need to drive organic growththrough continued investment in our large programmes andour future business. It also gives us the capacity to growthrough acquisitions. And most importantly, we also needto remunerate shareholders through paying dividends.
This year, EADS is proposing a dividend of 22 cents
per share. Can you explain the rationale behind this?

How do you see EADS’ 2010 results within
the larger context?
When you look at the overall context, I think we canbe highly satisfied with the year’s financial results.
Despite coming out of a difficult commercial situation,
our revenues have progressed 7% to €45.8 billion in 2010.
Supported by the economic recovery, our order intakerose 81%, and our order book now stands at more than
€448 billion. That’s a solid base for future business.

EADS’ performance in 2010, with earnings per shareof €0.68, merits the proposed dividend. And we arepleased to resume the Company policy of rewarding ourloyal shareholders, who have remained committed to theGroup. Going forward it is our ambition, clearly, to improve
profitability. If achieved, this should be the foundation for
dividend growth.
In the past, EADS’ profitability has been burdened
by US dollar weakness. How do you estimate the levelof risk going forward?
A weak dollar has a direct impact on our commercial
aircraft business, as planes are sold in dollars, whereas
a significant portion of the manufacturing cost is in euros.

LONG-TERM VALUEInterview with the Chief Financial Officer“I believe we are well set for future
profitable growth from 2012 onwards,
as the improved commercial environment
leads to increased demand for aircraft.”
During the first decade of EADS’ existence the dollar lost
30% in value against the euro. As a consequence, thedollar rate in our hedge book has continued to deteriorate
from year to year.
Exposure to the dollar has not changed in principle, andthe strategy to protect ourselves has not changed either:
we hedge our exposure in the financial market against
short-term fluctuation of the dollar, buying us time to adapt
the cost base, and we try to increase natural hedging
through increasing the dollar cost base. As an example,
for our new aircraft programmes such as the A350 XWB,
we have increased the level of dollar sourcing to mitigate
currency risks. As new programmes ramp up, we should
see a gradual increase in the level of natural hedging
and a reduction in the risks associated with exchange
rate fluctuations.
EADS’ underlying profitability is expected to beroughly stable in 2011. What are you doing to improve
profitability beyond the current level?
We have clear plans to improve our profitability going
forward. Cost saving and improvement programmes are in
progress across the Group. EADS is currently working ona further integration and cost saving programme referred
to as Future EADS. In addition, all Divisions are runningtheir transformation and cost cutting plans to adapt totheir new competitive environment and Airbus, after the
success of Power8, is working on further continuous
improvement measures beyond 2012 to enhancecompetitiveness, compensate for inflation and achieve
profitability targets.
On top of that, EADS is introducing in 2011 a new
top-down target setting process which is specificallystructured to foster the necessary personal incentives andaccountabilities for EADS’ long-term profitability ambitions.

How would you sum up EADS’ perspectives
for the medium term?
I would say we are in a good position. We can capitaliseon the strongest product portfolio – commercially andon the military side. We have to monitor the government
budget situation. Based on our proven risk management
processes, we are closely following geo-politicaldevelopments in North Africa, the fuel price, and dollar
evolution. Two of the three big programme risks, the A380
and A400M, made huge improvements in 2010 and we are
fully focused on execution of the A350 XWB programme.
Our backlog and net cash position are two key assets forthe future. I believe we are well set for future profitable
growth from 2012 onwards, as the improved commercial
environment leads to increased demand for aircraft.

19

the
pict

big
ure

“Testing an EC225, I am
contributing to a truly
global partnership.”— Alain Di Bianca
Experimental Test Pilot,
Eurocopter

Eurocopter helicopters are currently in service in more than 140 countries
and account for 33% of the worldwide civil and parapublic fleet.
The EC225 is the latest member of the Super Puma Family, which are in
operation in more than 20 countries. The military variant, EC725, has been
selected by the Brazilian armed forces.

EADS Annual review 201024

The big pictureInterview with the Chief Strategy
and Marketing Officer
Marwan Lahoud

How would you summarise the year 2010 from thepoint of view of EADS’ strategic development andmarketing activities?
The results for 2010 were positive on the whole andinclude many important achievements despite a difficult
business context. The international economic environment
was still rather uncertain, which slowed down some of
our industrial development activities. Saying that, we
continued to make progress with major projects.

India and the Asia-Pacific region seem to be astrong focus in EADS’ international development
activities. Why is that?
India and China, in particular, are countries with hugemarket potential and excellent growth prospects.
India has a mature and ambitious aerospace anddefence industry, which offers EADS significant potential
for industrial and commercial development.
China, clearly, is likely to represent one of the largest
markets in the commercial aircraft sector, as well as
being an important market for helicopters and securecommunications. Our challenge is to watch carefully
China’s aerospace ambitions as a major player
and partner.
Can you elaborate a little on progress EADS has
made over the past year in India?
EADS has strengthened its local presence in India
this past year, in particular with Cassidian establishingan engineering centre in Bangalore and Eurocopter
inaugurating an Indian subsidiary that will reinforce thesupport and services network throughout the country.

What about other strategic countries?
We made important progress in Brazil, another key
country for us because of its growth dynamic and its
established aerospace industrial capacity. In 2010,
Eurocopter’s Brazilian subsidiary Helibras delivered thefirst three of an order of 50 EC725 for Brazil’s armed
forces. From 2012, Helibras will be assembling thesehelicopters at a new production facility at Itajubá, Brazil.
Also in Brazil, Cassidian formed a joint venture withengineering conglomerate Odebrecht to address defence
and security markets in that country.
These activities support the Vision 2020 globalisation
goals of having 20% of employees and 40% of
sourcing outside Europe. What about the goal ofbalancing revenues from commercial aircraft andother activities?
Our strategy is clear. Through to 2020, we aim to strike abalance between commercial aircraft and other businesses,
in particular institutional activities. Part of the rebalancing
will be achieved through successful portfolio evolution.
The A400M programme is a part of that strategy, andthe programme made substantial progress last year.
Astrium, Cassidian and Eurocopter are supporting
efforts to balance EADS’ portfolio by investing in their
future business. It will be a hard task to compensate theexpected strong growth in the commercial aircraft market
over the next few years.
Are you considering acquisitions as an option
to achieve the balance?
Certainly, this is an option we have to consider, bothin order to rebalance the business and to expand theinternational footprint. 2010 was not an easy year for themergers and acquisitions market. Sellers often had highexpectations. Nevertheless, EADS continued to maketargeted acquisitions and EADS is currently studying
acquisition opportunities among mid-sized companies
in North America and Europe.

The big pictureInterview with the Chief Strategy and Marketing Officer“Developing our foundations in the
United States and emerging countries,
and growing the business in services,
security and defence remain clear priorities.”
Services represent another field of activity you wish todevelop as part of the Vision 2020 strategy. What havebeen the main achievements in that area?
The goal is for our profitable services businesses togrow to 25% of overall EADS revenues. In Eurocopter
the services share of revenues is already above thatlevel. In 2010, Astrium integrated its Spot Image andInfoterra subsidiaries to form a new GEO-Information
business division for services related to optical and radar
satellite imagery. To support internal efforts to explore
new opportunities, we have created the first EADS-wideservices catalogue.
Looking to the year ahead, what will
be your priorities?
Developing our foundations in the United States andemerging countries, and growing the business inservices, security and defence remain clear priorities
for my organisation and the Group as a whole. We willcontinue to assess and pursue strategic opportunities,
whether through organic growth, partnerships or
acquisitions. We have strong assets in terms of our
product portfolio and industrial capacity which will help
us to grow. And we have the resources to makeacquisitions that fit our requirements.

25

EADS Annual review 2010

26

The big pictureMarkets & Perspectives

The world’s economic centre of gravity is shifting, with
far-reaching consequences for the aerospace industry.
Growth in emerging countries helped to mitigate
the effects of the economic crisis, supporting recovery
in Europe and the US. While countries such as China
appear to be nurturing future competitors, the aerospaceindustry cannot ignore new opportunities arising out ofglobal partnerships.
The world economy enters recovery mode
Early indications of increased demand

Fragility remains

The global economy returned to growth faster than
expected in 2010, with emerging markets leading therecovery. After suffering less than advanced economies in
the 2008-2009 recession, they rebounded most quickly.
Advanced economies also returned to growth but wererestrained by high levels of public and private sector debt,
high unemployment and low consumer confidence. For
2011, the International Monetary Fund (IMF) expected
global growth of 4.2%, with developing economies
growing at 6.4% and advanced ones at 4.2%1).

Yet continued financial market volatility shows how fragile
economic recovery remains in developed markets, withfinancial markets questioning the ability of sovereign nations
to repay their debts. In particular, peripheral Europe’s
sovereign debt crisis illustrates the challenges faced.

Trends over the past decades indicate a strong correlation
between the rate of growth in the economy at large andthe rate of growth in air traffic. Air traffic growth in turndrives demand for new passenger aircraft. Defence,
security and space businesses are driven to a greater
extent by government demand. Growth in these sectors
is more closely related to government budgets as well as
strategic priorities and public perceptions of threat.

1) IMF forecasts October 2010.

Government finances are weak across most of thedeveloped world, causing severe public spending cuts.
By contrast, many developing nations have no suchspending constraints – a fact that is evident in theirdefence and space budgets.
Recent social unrest in parts of the Middle East and North
Africa has also raised concerns about fuel supply andpossible implications for global economic growth.
Air passengers return
Air traffic is highly sensitive to economic growth. The
International Air Transport Association (IATA) reported
full-year 2010 demand statistics for international scheduled
air traffic that showed an 8.2% increase in the passenger
business and a 20.6% increase in freight.

The big pictureMarkets & Perspectives

Following a remarkable increase in higher margin
business travel in the second half of 2010, IATA, in
its March 2011 forecast, reported that airlines hadearned a US$ 16 billion profit in 2010, up from 2009’s
US$ 9.9 billion loss. Yet there were stark regional
differences, with Asia-Pacific’s carriers contributing
nearly half of the profit.

27

Aircraft fleet to double

North American carriers registered a strong recovery,
recording year-on-year increases in passenger demandof 7.4% in 2010.

Surging economic growth in emerging markets is expected
to be the main factor behind a doubling of the world’s
aircraft fleet over the next 20 years. Additionally, much of
today’s existing fleet will be replaced by aircraft offering
greater fuel efficiency and lower emissions. The A320neo,
offering an improvement of up to 15% in fuel consumption,
will lead the transition to greater efficiency within the
single-aisle segment, ahead of the development of an all
new aircraft in the next decade when breakthrough engine
technology reaches maturity.

Two A380 taking off from Sidney Airport

A400M Final Assembly Line

IATA revised its outlook for global traffic growth in 2011 to
5.6% on higher expected Gross Domestic Product (GDP)growth but lowered its forecast for 2011 global airline
profits to US$ 8.6 billion on rising oil prices.
Expansion of emerging market airlines drove resumption
in aircraft orders. In 2010, Airbus and Boeing together
received gross orders for 1,269 aircraft, up from 573
in 2009.

According to Airbus Global Market Forecast 2010,
almost 26,000 new passenger and freight aircraft worth
US$ 3.2 trillion will be needed over the next 20 years tosatisfy demand. Approximately 25,000 will be passenger
aircraft, with 10,000 of these replacing older, inefficient
aircraft in mature markets, and 15,000 meeting new
demand, chiefly in developing markets. These are mainlyin the single-aisle segment, which are the workhorse of
short-haul flights, especially for budget airlines.

Air travel is resilient to external shocks

Passenger traffic recovering in line with GDP(in RPK* trillion)(in %)

9/11
AttackGulf
Crisis5.0

Asian
CrisisFinancial
Crisis

SARS

8

4.5

+45%

4.0
3.5

6
4

3.0
2.5

2

2.0
0

1.5
1.0

-2

0.5
0.0

-4

1980

1985

1990

1995

2000

2005

2010

2007

2008

Real world & forecast GDP growth* Revenue Passenger Kilometres.

Source: ICAO, Airbus

2009

2010

Traffic ASK (Available Seat Kilometres)

Source: IHS Global Insight (November 2010 data), OAG (ASKs data), Airbus

EADS Annual review 201028

The big picture

Emerging economies leading the recovery

world’s biggest airline by stock market capitalisation,
at US$ 20 billion, followed by Singapore Airlines at
US$ 14 billion, Cathay Pacific at US$ 12 billion and China
Southern at US$ 11 billion.

Customers outside Europe
and North America drive new growthWith the rise in importance of emerging countries,
aerospace and defence companies are globalising
their businesses, seeking further orders from these
rapidly growing countries, while also outsourcing
some production to them.

A320neo

In anticipation of future growth, emerging market airlines
are ordering large numbers of new aircraft.

EC225

China remains the world’s fastest growing economy.
The IMF anticipates growth of 10.5% in 2010. India is also
growing strongly, with 9.7% projected for 2010, while Brazil
led Latin America’s expansion, achieving 7.5% growth.
Developing Asia and Latin America & the Caribbean
are expected by the IMF to grow at 9.4% and 5.7%,
respectively, during 2010, with strong private sector
demand signifying that recovery is sustainable.
By contrast, Central and Eastern Europe is forecast to
expand at a rate of 3.7% — only a little above the rateof developed economies.
High value creation amongst Asia-Pacific airlines
As wealth rises, so air traffic is expanding. IATA
forecasts that global passenger numbers will rise from
2.5 billion in 2009 to 3.3 billion by the end of 2014, with
360 million of the 800 million increase occurring in the
Asia-Pacific region.
Already the Asia-Pacific region’s rapidly growing airlines
are the world’s most profitable. IATA reported that theyearned profits of US$ 7.6 billion in 2010, nearly half
the global industry’s total. As of 2010, Air China is theA380 in Hong Kong

Asia-Pacific and Middle Eastern customers now accountfor approximately half of EADS’ order backlog — withthe majority of these orders being for Airbus aircraft.
As recently as 2002, these regions contributed only 10%
of EADS’ revenues. According to PricewaterhouseCoopers,
by 2028 regions outside Europe and North America will
own roughly half of the commercial aircraft in service.
According to data gathered in Airbus Global Market
Forecast 2010, in developed economies such as Europe
or the United States, on average around one to two air
trips were made per person per annum in 2009. Emerging
countries such as China (approx. 0.2 trips) and India (lessthan 0.1 trips) continued to trail far behind. Air travel inthose countries is expected to increase significantly as
dynamic growth translates into higher standards of living.
Industrial interests on the agenda
As well as bringing new market opportunities,
emerging countries offer benefits of a broader supply
chain and a wider talent pool.
Developing an industrial footprint takes longer in aerospacethan in many other high-tech sectors. Aerospace andThe big pictureMarkets & Perspectives

29

A380 route proving in Shanghai

defence suppliers are not easily interchangeable due torelatively low production volumes and a correspondingly
high level of investment required in intellectual capital andcertifications. Also, expansion into any foreign market
generally increases the risk that protected technology
and manufacturing know-how will be transferred.
Many emerging countries are nurturing their local
aerospace industries. Governments placing large orders
often make it a condition that a proportionof the related procurement or production is based

Emerging economies on the edge to strong
travel growth(in number of trips* per capita in 2009)10
IrelandSingapore
Hong Kong

1

BrazilChina
Russia0.1
India

South Korea
Saudi Arabia

Aircraft manufacturers from emerging countries havesignalled their ambition to challenge today’s Airbus/Boeing
duopoly. Embraer in Brazil, Commercial Aircraft
Corporation of China (Comac) and Superjet International,a Russian/Italian joint venture company, are all seeking
to gain market share in the commercial aircraft sector.
While the growing economic power of developing nations
appears to threaten the hegemony of Western aerospaceand defence companies, a more multi-polar world in which
industries form global alliances, could ultimately benefit theworld economy and mitigate risks associated with tradeimbalances and regional commercial cycles.

USA

UK

Spain
Costa Ricain their countries. While this leads to the development ofqualified new industrial partners and suppliers it also leads
to a risk of new competitors.

FranceGermany
Japan

World average

0.01

0.001
0

5

10

15

20

25

30

35

*Passengers originating from respective country.
Source: IATA PaxIS, Global Insight, Airbus

40

45

50

55

in US$ (000’s) 2009 GDP per capita

Security solutions

EADS Annual review 201030

The big picture

Changing demand in defence, security & space
Revised European and United States defence
spending; increased export potential
The United States continues to have by far the biggest
defence budget. According to research from theStockholm International Peace Research Institute, theUnited States spent US$ 661 billion on its military in
2009, France spent US$ 63.9 billion, the United Kingdom
US$ 58.3 billion, Germany US$ 45.6 billion and Spain
US$ 18.3 billion.

Eurofighter

A400 M

Astra-3B satellite efence spending:D
European markets vs. emerging markets(in 2010, in US$ bn)
250

200

150

100

Emerging countries, however, are spending far more on
defence than ten years ago. Saudi Arabia’s and India’s
budgets have increased by two thirds and Brazil’s bymore than a third.

50

0

Defence budgets in home countries will experience cuts
over the coming years, although the impact on industry
is not yet clear. In the United States, larger defence
programmes are subject to severe cuts, while othercountries are preferring to seek efficiencies in operations
while protecting investments in new equipment.
As part of its effort to reduce defence spending, Germanyhas decided to transform its armed forces into a fully
professional service from 2011.

2010

2011

2012

2013

2014

2015

Emerging markets: Brazil, India, Saudia Arabia, UAE combined
European markets: France, Germany, Italy, UK
Source: Jane’s defence budget

Defence exports from the European Union and North
America have increased dramatically in recent years toTurkey, Pakistan, Singapore, the Baltic States, the UAE,
Qatar, Malaysia and Japan.

The big pictureMarkets & Perspectives

31
Defence and security strategies adapt to new realities
Shifting alliances, nuclear proliferation, terrorism andcyber-warfare are all causing countries to reconsider theirdefence strategies. National security strategies are driven
by the need to respond effectively to large-scale natural
disasters, as well as terrorist threats. These requirelarge complex system capabilities that enable different
response services and different platforms to work
together in concert.
NATO’s new Strategic Concept, agreed in November
2010, reasserted the alliance’s commitment to nuclear
deterrence while placing a new emphasis on missile
defence, protection against terrorists and countering
cyber warfare. NATO also sought greater cooperation with
Russia, particularly through mutual missile defence.
Within Europe, the need to reduce public sector spending,while at the same time maintaining defensive capabilities,
is leading to cooperative initiatives between countries.
Notably, the United Kingdom and France signed
agreements in 2010 to share resources in areas such as
nuclear warhead research, military transport aircraft and,potentially, aerial refuelling aircraft.
Cyber warfare is one of the newest threats and is forecast
to increase. Already, security agencies in westerncountries report thousands of malicious e-mails every
month designed to disrupt the computer systems thatare vital to critical national infrastructure. Governments
are therefore moving to classify cyber security as a
top-tier threat. The cyber security market, estimated at
approximately US$ 8 billion in 2009, is projected to growto US$ 27 billion in 2018.
Strategic importance of space remains strong
Space is increasingly important for countries’ defence
and security. Satellite surveillance already plays a vitalrole in conflict areas such as Afghanistan, in militarycommunications and in relief operations.
Increasingly, private-sector companies are moving into
the space sector and national space agencies andgovernments are beginning to reconsider their role.
Trends indicate a move away from big government
programmes in favour of tightly managed and leaner

 yber security market:
C
spending by regions in 2010
38%

North America

26%

Asia-Pacific4%Middle East & Africa

2%

Eastern Europe

27%

Western Europe

3%South America

Source: Frost & Sullivan

 yber security market:
C
spending by solutions segments in 201041%

Network security

18%

Security Operations

18%

Data security

5%

Endpoint security

15%

Identity & access control

3%

Application security

Source: Frost & Sullivan

commercial space projects. In the near future, launchesof sub-orbital science payloads and flight tests of piloted
vehicles could be carried out by private companies.
The number of commercial satellite launches is expected
to more than double during the next decade. As a result,the satellite manufacturing sector is expected to generate
revenues of more than US$ 26 billion during the next ten
years. The relative improvement in the economy and in
financial markets in 2010 may lead to increased mergers
and acquisitions in the satellite services sector in particular.
Major Asian countries have signalled increased ambitionsin the space industry. China and India are both preparing
to send unmanned rover missions to the Moon within
the next ten years. While space spending is constrainedin the United States and Europe, these countries havean opportunity to catch up quickly. China, for example,
has stated it aims to take 20% of the global spaceindustry by 2015.

contisucnuingcess“We pride ourselves on
keeping our aircraft fit for
any challenging mission.”— Anton Ottowitz
Flight Equipment Technician,CassidianCassidian builds products that have to endure the mostdemanding operational requirements – over several decades.
Expertise in maintenance and related services, as well as
technology upgrades, ensure that aircraft like the Eurofighter
continue to meet customer needs.

EADS Annual review 201036

continuing success

The Year in Review
8 June 2010
First plane flies on algaebased biofuel.
At the Berlin Air Show 2010, EADS
showcases the world’s first aircraft
powered by pure biofuel made fromalgae. A Diamond Aircraft DA42 flies
daily demonstrations.

UH-72A

10 th anniversary celebration

Berlin Air Show

4 March 2010

8 June 2010

EADS North America delivers
100th UH-72A.
EADS North America delivers its
100th UH-72A Lakota Light Utility
Helicopter to the US Army on-timeand on-budget, yet again showing
its reliability in this successfulprogramme that supports America’s
military and homeland security.

EADS celebrates its 10
anniversary.
To celebrate its 10th birthday, EADS
invites 10,000 school students fromacross Europe to visit its sites.
As part of the celebration, EADS later
unveils a new brand identity with amodernised Group logo and better
integration of Division brands.

June and July 2010th

29 June 2010
Euro Hawk makes maiden flight.
The Euro Hawk Unmanned Aerial
System, built by Cassidian andNorthrop Grumman Corporation,
successfully completes its first flightand reaches the high altitude of
32,000 feet over the Palmdale desert
in California. The Euro Hawk has awingspan larger than a commercial
airliner, endurance of 30 hours anda maximum altitude of more than
60,000 feet.

Berlin and FarnboroughAir Shows herald upturn.
Signalling a clear upturn, Airbus
receives firm orders valued atover US$ 15.3 billion at the 2010
Berlin Air Show, including orders
for 32 A380 aircraft worth around
US$ 11.5 billion. Just a few weeks
later, at the Farnborough Air Show,airlines order 255 aircraft valued
at around US$ 28 billion.

continuing success

The Year in Review

37
29 December 2010
41st consecutive successfor Ariane 5.
The Ariane 5 launch vehicle takes
off successfully from Kourou,
French Guiana, for the 41st timein a row. The launcher places two
telecommunications satellites in orbit,
Hispasat 1E and Koreasat 6.

Cri-Cri

A400M

Ariane 5

2 September 2010

20 October 2010

1 December 2010

Cri-Cri, the all-electric aircraft,takes off.
The all electric Cri-Cri, the first-ever
all-electric aerobatic plane makes its
official maiden flight at Le Bourget
airport, near Paris. EADS Innovation
Works has developed the aircraft inpartnership with Aero Composites
Saintonge and the Green Cri-Cri
Association.

Eurocopter forms Indiansubsidiary.
Eurocopter inaugurates its new
Indian subsidiary, with the goal of
expanding in this fast-growing market,
reinforcing its support and services
network throughout the country, andfurther developing the company’s
four-decade relationship with
Indian industry.

Airbus offers A320neo.
Airbus decides to offer for its bestselling A320 Family new fuel saving
engines as an option. The A320neo(new engine option) also incorporates
wing tip devices called sharklets
and offers fuel savings of up to 15%.
Deliveries are due to start in 2015.

5 November 2010
EADS and Airbus welcome
A400M agreement with launchcustomer nations.
EADS and Airbus conclude
negotiations with the A400M airlifter’sseven launch customer nations.
The agreement, finalised in Toulouse,further details the principle agreement
reached in March 2010 and marks asignificant step towards amending thecontract in line with the programme’s
technical complexity.

7 December 2010
Airbus starts production of first
fuselage barrel on A350 XWB.
Airbus starts making the firstcarbon-fibre barrel for the A350 XWB
fuselage at its Illescas production
plant in Spain. While the majorityof the A350 XWB fuselage is madefrom panels, which are easier tomanufacture and to assemble, Airbus
has selected a barrel as the optimum
structure for the rear part.

Eurocopter’s new IndiansubsidiaryEADS Annual review 2010

continuing success

38

1)

Recovery in the aviation sector was much stronger
than originally expected, leading to record commercialdeliveries and a strong increase in orders. Profitability
should improve in the medium term at 2010 exchange
rate levels, supported by production rates rising to meetthe demand, firmer pricing and cost improvementson the A380 programme.
Airbus delivered a record number of aircraft for the eighthyear in a row and, as economic conditions improved,order intake was unexpectedly high. Significant progress
was made on key programmes, in particular the A400M,
A380 and A350 XWB. While costs associated with theA380 production ramp-up in particular, as well as the
weak dollar rate in the hedge book, continued to weigh on
profitability, the way has been cleared for better underlying
financial performance in the mid-term at 2010 exchange
rate conditions.

Airbus Division 1)
2010

2009

Variation

Revenues

29,97828,067+7%

Self-financed R&D

2,321

2,306

+1%

(€m)

305

-1,371-

Order intake

68,22323,904+185%

Order book400,400

339,722

+18%

EBIT*

1) Following integration of former Airbus Military into Airbus, Airbus is reportingin two segments: Airbus Commercial and Airbus Military. The Airbus Commercial
perimeter includes EFW and the completed aerostructures reorganisation but excludes
the A400M. Airbus Military includes the former Military Transport Aircraft Division
as well as A400M Airbus operations. Eliminations are treated at the Division level.
* Unless otherwise indicated, EBIT* figures presented in this report are Earnings
Before Interest and Taxes, pre-goodwill impairment and exceptionals.

Revenues grew by 7% to €30 billion (€28.1 billion in 2009),
reflecting higher deliveries. EBIT* stood at €305 million(€-1.4 billion in 2009). By the year’s end, Airbus’ totalorder book amounted to 3,552 commercial aircraft and
241 military transport aircraft. The consolidated order bookwas valued at €400.4 billion (year-end 2009: €339.7 billion).
Record deliveries
The Division set a new record of 510 (498 in 2009)
commercial aircraft deliveries to 94 customers.
Some 19 of these were new Airbus customers. Deliveriesof military aircraft also proceeded at a high level,
as 20 aircraft were delivered (16 in 2009) to armed forcesin Europe, the United States and Latin America.
New aircraft orders recovered after falling in 2009.
Airbus booked 644 gross commercial orders (574 net aftercancellations), compared to 310 in 2009. The value of neworders surpassed US$ 84 billion gross (US$ 74 billion net)
at catalogue prices. This represents a 51% gross shareof the number of passenger aircraft exceeding 100 seats
sold worldwide (52% net).
Airbus Military won 21 medium and light transport aircraft
orders (15 in 2009), demonstrating its leadership of thismarket sector.

continuing success

AirbusA320neo

Airbus substantially reduced the level of risk on its major
new programmes. Agreement was reached with the seven
European launch customer nations of the A400M aircraft
to amend the original contract in line with the programme’s
technical complexity. In the A380 programme, Airbus
delivered 18 aircraft, compared to ten in 2009, confirmingthat industrial processes have stabilised. Furthermore,manufacturing began on the first A350 XWB components
and sub-assemblies at section level. Airbus anticipates
starting deliveries in the second half of 2013. The timeschedule is challenging due to the advanced technologicalcomplexity of the programme.
A320neo
Airbus launched the A320neo (new engine option)
derivative of its popular single-aisle Family, which will
use the most efficient engine technology now available.
Entering into service in 2015, the aircraft will burn up to
15% less fuel than today’s A320 Family, which translates
into a saving of up to 3,600 tonnes of CO2 emissions per
aircraft each year. Virgin America became a first customer
with a firm order for 30 A320neo in December 2010.

Increased production
Meanwhile, to accommodate increased production rates
for both A320 and A330 aircraft, Airbus recruited 2,200
new employees during the year 2010. In 2011, Airbus plans
to hire up to 3,000 people, as production rates increase
further and new programmes move into series production.
Biofuel flights
Airbus together with the Latin American TAM Airlines
conducted the first Jatropha-based biofuel flight in Latin
America, using an Airbus A320. Airbus will also support
the world’s first scheduled daily biofuel flights, which are
due to start in Germany in 2011.
Improved competitivenessAirbus has increased competitiveness due to thePower8 programme, which significantly over-achieved
its final target of €2.1 billion in gross annual savings
against the projected cost base by the end of 2010.
Airbus is maintaining the momentum created with
Power8 Plus which is an EADS-wide cost-savings
programme.

EADS Annual review 201040

continuing success

Airbus Commercial

A330-200F

The A350 XWB building is equipped with solar panels

Evolving short-range Family
(€m)

2010

2009

Variation

Revenues

27,673

26,370+5%

Self-financed R&D

2,311

2,293

+1%

291

386

-25%

Order intake

68,21023,461+191%

Order book378,907

320,321+18%

In number of aircraft

2010

2009

Variation

Deliveries

510

498

+2%

Order book

3,552

3,488

+2%

EBIT*

Airbus Commercial revenues amounted to €27.7 billion(2009: €26.4 billion) despite exchange rate deterioration,reflecting increased deliveries, a higher proportion of larger
aircraft, including A380, and pricing improvement. In spiteof the growth of revenues, EBIT* decreased to €291 million(2009: €386 million), mainly due to hedge rate deterioration.
High costs on the A380 programme continued to weighsignificantly on EBIT*. Looking to the mid-term, however, at2010 exchange rate levels profitability should strengthen due
to higher volumes, better pricing on delivered aircraft andefficiency gains on A380 production.

Responding to demand for more eco-efficient aircraft,
Airbus decided to offer its best-selling A320 Family
in a new optional configuration with fuel saving engines.
In addition to significant fuel and CO2 savings, the A320neo,
which also incorporates fuel-saving wing tip devices called
Sharklets, offers a double-digit reduction in NOx emissions,
quieter engines, lower operating costs and up to 500nm(950km) more range (two tonnes more payload).
Virgin America became a first customer in 2010,
and IndiGo, India’s low-cost airline, signed early in 2011a memorandum of understanding to buy 150 A320neo
and 30 A320. In total, the A320 Family, which serves theshort-haul market, won 416 net orders and the total orderbacklog increased to 2,418 at the year end (2,403 in 2009).
Airbus delivered 401 A320 Family aircraft in the year.
The production rate was increased from 34 to 36 aircraft permonth in 2010. The rate will increase to 38 per month in thelatter half of 2011 and 40 per month in early 2012.
The new long-range aircraft
The A350 XWB continued to win strategic customers,
boosting the total orders for the Family to 583 and thenumber of customers to 36. Within a short period of time,continuing success

Airbus41

A330 Final Assembly Line

the A350 XWB has won a sizeable share of the worldwide
market for mid-sized, long-haul aircraft, demonstrating
the appeal of its design to airlines.
Production started in 2010, with manufacturing of the firstcomponents and major sub-assemblies. The systems
test rig started operations in December 2010. The Final
Assembly Line is due to start operating by the end of 2011.
Entry into service for this aircraft is planned for the second
half of 2013.
Compared to current-generation aircraft in this category, theaircraft will represent a step change in operational efficiency,
burning significantly less fuel and offering a corresponding
reduction in carbon emissions. For passengers, the extra
wide cabin will offer the highest standards of in-flight
comfort, with a spacious interior design, new, wider windows
and the latest state-of-the-art amenities.
A380 attracts passengers
By the end of 2010, 41 A380 in service had flown nearly
9 million passengers between 20 airports worldwide.
Airlines confirm that it is improving their competitivenessand profitability, burning 20% less fuel per seat than its
nearest competitor, attracting significantly higher loadfactors and reducing noise levels.

In 2010, Emirates placed a follow-on order for 32 A380
aircraft, increasing the total order backlog to 193
and the programme’s total number of orders (including
those already delivered) to 234. Airbus achieved
a commercial breakthrough with a memorandumof understanding for the A380 from a Japanese airline.
Airbus delivered 18 A380 during 2010, as industrial
processes in series production were significantly improved.
Supplier issues and the well-publicised Rolls Royce engine
incident prevented an even higher production output.
The production ramp-up will continue in 2011, aiming
to reach the target of three aircraft a month in 2012.
A330 Freighter enters service
Offering customers an attractive combination of longrange and large payload, the A330 Freighter achieved
flight certification and was in service with three operators
by the end of 2010; the aircraft had won 66 orders from
11 customers.
A record number of 91 A330/A340 long-range Family
deliveries was achieved. Due to strong market demand,
Airbus decided early in 2011 to raise the production rate
for its A330 Family from eight to nine in early 2012, before
reaching rate ten in the second quarter of 2013.

EADS Annual review 2010

42

continuing success Airbus Military

A400M production

A330 MRTT

(€m)

2010

2009

Variation

Revenues

2,684

2,235

+20%

10

13

-23%

EBIT*

21

-1,754-

Order intake

152

637

-76%

Order book

22,81920,686+10%

Self-financed R&D

2010

2009

Variation

Deliveries

20

16

+25%

Order book

241

250

-4%

In number of aircraft

Airbus Military’s revenues reached €2.7 billion, an increase
compared to 2009 (€2.2 billion). Higher A400M revenue
recognition was partially offset by lower revenues fromrefuelling aircraft and medium and light transport aircraft.
A400M revenue recognition in 2010 was based again
on the milestone achievement methodology.
Airbus Military reported an EBIT* of €21 million (€-1.75 billion
in 2009), as the A400M impact was neutral in 2010
compared to the significant loss of 2009.

A400M on track
Following the new time schedule agreed with theEuropean launch customer nations, the A400M
programme is on track for delivery to the first customer,
the French Air Force, by the end of 2012/early 2013.
The four development aircraft now flying haveaccomplished more than 1,000 flight hours in over
300 test flights. Series production starts in 2011, and civil
certification is planned for late 2011.
The total number of aircraft orders stands at 174, withorders from the European launch nations and Malaysia.
Airbus Military estimates the export market for these
versatile transport aircraft at around 400 up until 2030.
A330 MRTT achieves certification
The A330-based Multi-Role Tanker Transport (MRTT)
reached the final stage of production, as civil and military
safety certification was achieved. Two MRTT were awaitingdelivery to the Royal Australian Air Force at the end of 2010.
A further five MRTT were making test flights at the year
end, with four undergoing conversion. An A330 MRTT
for the UK Royal Air Force successfully completed a seriesof dry contacts with a receiver aircraft.

continuing success

Airbus43

A400M

Having won 28 orders from four air forces, the MRTT has
proved itself the most competitive tanker in international
markets. Based on this proven success in previous
competitions, the US Department of Defense invited EADS
North America in 2010 to present an A330 MRTT bid forcost evaluation against its eventual preferred bidder for
the US tanker replacement programme. The contract for that
programme was awarded to Boeing on 24 February 2011.
Medium and light transport growth
Airbus Military continued to lead the market for medium andlight-weight transport and surveillance aircraft. In spiteof the pressure on public sector budgets, deliveries andorders increased. Airbus Military won 21 orders anddelivered 20 aircraft within this segment. This compareswith 15 orders and 16 deliveries in 2009.
Notable orders during 2010 included, among others, eight
CN235 military transport for France, increasing
its current CN235 fleet, as well as three CN235 maritime
patrol for the US Coast Guard, adding to the 11 acquiredin earlier years.
Airbus Military continues to develop the product line.
The C295 Anti-Submarine-Warfare version, for example,
obtained its military safety certification.

Airbus Division Outlook
Looking ahead to 2011, Airbus Commercial
is targeting a further increase in deliveries tobetween 520 and 530, with strong airline demand
for new and more eco-efficient aircraft leading to
new orders exceeding the number of deliveries.
Airbus Military begins A400M series production
and will proceed towards civil certification of theaircraft, which it plans to obtain before the endof the year 2011.
In financial terms, profitability is likely to remain stablein the short term but Airbus Commercial underlying
profitability (EBIT* before one-off) is expected tosignificantly improve in 2012, thanks to higher volume,
better pricing and improvement of A380 performance.

EADS Annual review 2010

continuing success

44
Eurocopter achieved higher revenues as services andmilitary activities compensated for lower deliveriesof commercial aircraft. Eurocopter made significant
progress in its innovation and efficiency drive, preparing
the way for an expected market recovery from 2012.
(€m)

2010

2009

Revenues

Variation

Revenues by markets (in % of external revenues)

4,830

4,570

+6%

Self-financed R&D

189

164

+15%

EBIT*

183

263

-30%

54%	Civil	

Order intake

4,316

5,810

-26%

46%	Defence

Order book

14,55015,064

-3%

p44

p48

Higher activity in services and governmental programmes
led to an increase in Eurocopter’s revenues in 2010,
despite a decrease in civil deliveries due to the slow
recovery of the commercial market. Eurocopter continued
to invest in its product range, and to expand its global
footprint to prepare for future markets. The SHAPE
improvement programme started to deliver results in theform of efficiency savings.

Deliveries of new production helicopters accounted
for 53% of Eurocopter’s 2010 revenues, while supportand services provided 36% of the total. The remaining 11%
was generated by development and other activities.

Revenues increased to €4.8 billion (€4.6 billion in 2009),
reflecting a favorable mix from higher support andgovernmental revenues. Deliveries included 28 NH90
multi-role military helicopters and 15 Tiger attack
helicopters – twice as many as in 2009 for both aircraft– as well as the first three of 50 EC725 for the Brazilian
armed forces. Total helicopter deliveries amounted to527 (558 in 2009).

Stable orders

EBIT* declined to €183 million (€263 million in 2009)
weighed down by a charge on the NH90 programme,a restructuring charge and higher product investment.

New net ordersp46
were stable at 346 (344 in 2009) evenly
balanced between civil (51%) and military (49%). Bookings
included Super Puma contracts for Malaysia and Mexico,as well as additional LUH orders for the United States.
The Kazakhstan Ministry of Defence signed amemorandum of understanding to purchase 45 EC145
medium-sized helicopters over six years. The year-end
order book fell slightly to €14.6 billion (€15.1 billion in 2009)
for 1,122 helicopters.

continuing successeurocopter

45

X3 demonstrator

Orders for new helicopters represented 49% of total
bookings, followed by a 42% share for services and 9%
for development and other activities. Of the total 2010
bookings, 73% were for export sales (65% in 2009).
Strategic highlights
As part of its strategic innovation drive, Eurocopter
successfully carried out the first test flight of the newX3 high-speed, long-range helicopter demonstrator.
Having main rotor blades and two propellers installed on
short-span fixed wings, the aircraft combines the verticallift-off capability of a helicopter with the speed of a plane.
Eurocopter continued to expand internationally. Eurocopter
India was inaugurated with the goal of expanding its
commercial presence and reinforcing the support andservices network in the country. In Brazil, construction
began on an additional facility to manufacture andmaintain the 50 heavy-weight EC725 helicopters being
purchased by the Brazilian government. A new, enlarged
facility was opened in Singapore early in 2011.
A successful maiden flight of the second EC175 prototype
took place, marking an important step in the joint
programme with Chinese industry.

Outlook
Recovery in the civil segment is slow, in particular
due to a high number of second-hand helicopterson the market. An upturn is expected from 2012
onwards. In the military market, the outlook is
subject to governments’ budget policies which
may weigh on military and parapublic orders.
In 2011, Eurocopter will pursue its innovation strategy
investing in new product and services development
and upgrades. The network of industrial capabilities
and training and maintenance centres will befurther extended.
The SHAPE improvement programme aims togenerate €200 million in cost savings by theend of 2011. It was implemented early in 2010
to counter the economic downturn and respondto competitive challenges and is more than half
way towards achieving its cost savings target.
Furthermore, SHAPE has already delivered
results in terms of new product developments,
enhanced customer service, innovation and a morestreamlined organisation. Additional benefits fromthe SHAPE programme are expected in 2011.

EADS Annual review 2010

continuing success46
In 2010, Astrium once again demonstrated its ability
to execute reliably on programmes. Order momentum
continued, despite increased competition and government
budget constraints.
p44

(€m)

2010

2009

Revenues

Variation

p48

Revenues by markets (in % of external revenues)

5,003

4,799

+4%

Self-financed R&D

85

74

+15%

EBIT*

283

261

+8%

63%	Civil	

Order intake

6,037

8,285

-27%

37%	Defence

Order book

15,76014,653+8%

p46

In 2010, Astrium once again demonstrated its excellent
record for product quality and programme execution.
The Ariane 5 heavy-lift satellite launcher maintained
its record for reliability, successfully completing its
41st consecutive take-off. During 2010, six Ariane 5 and ten
satellites were successfully launched. In an outstandingachievement, the final acceptance launch of France’s
M51 ballistic missile took place on schedule during
summer 2010. Astrium Space Transportation delivered thesecond of five Automated Transfer Vehicle cargo craft for
the International Space Station to the Kourou space port
in French Guiana, which was launched in early 2011.
Revenues increased slightly to €5.0 billion (€4.8 billion
in 2009), with significant contributions from military andinstitutional activities. Compared with 2009, revenue
growth was stronger than appears, as 2009 revenues
were boosted by a €0.2 billion one-time catch up effectfor in-orbit incentives on satellites.
Growth and productivity in defense and military services
as well as operational improvement in institutional activities
enabled higher investments in research and development,
while contributing to lift EBIT* by 8% to €283 million(€261 million in 2009). The EBIT* margin improved to 5.7%
(5.4% in 2009).

Robust order bookOrder intake at €6.0 billion was significantly above
expectations. Excluding an exceptional order of
35 Ariane 5 launchers in 2009, orders received in 2010rose by more than 40%, increasing the order book to€15.8 billion (€14.7 billion in 2009).
In all, Astrium won orders for three telecommunication
satellites, including the Skynet 5D military communication
satellite, and for five Earth observation satellites, including
two optical reconnaissance satellites for the French
Defence Procurement Agency (DGA). Astrium’s positionas leading exporter in the Earth observation sector was
confirmed by the two satellites ordered by Kazakhstanand, in addition, a contract signed with Vietnam.
Astrium also received orders from the DGA for evolution
and maintenance of the M51 ballistic missile.
Strategic developments
In order to sustain growth in a challenging environment
with public sector space budgets under pressure andincreasing competition from outside Europe and acrossbusiness segments, Astrium has launched a majortransformation programme to enhance agility, innovationand competitiveness. The AGILE (Ambitious, Globally
growing, Innovative, Lean and Entrepreneurial) initiativecontinuing successastrium

ATV-2 in Kourou

will promote an entrepreneurial culture, streamline
organisation and decision-making processes, freeresources to invest in the future and strengthen customer
partnership.
In order to expand its capabilities, Astrium acquired JenaOptronik in 2010, a German specialist in space sensors
and optical systems. The acquisition will help Astrium
provide its institutional and commercial customers withhigh-quality equipment for Earth observation satellites.
In the field of launchers, Astrium began the firstdevelopment phase of the Ariane 5 Midlife Evolution,
which will increase launcher capacity.
Astrium Services further expanded its activities throughthe extension of the contract to supply the UK Ministryof Defence with secure communication services, andinvested in the construction of two Earth observation
satellites for Spot Image.

Outlook
Astrium’s medium-term market may become
more competitive with government budgets underpressure and increasing global competition.
Multi-year military and civil institutional contracts
will limit the impact of the deteriorating competitive
landscape in 2011. However, Services business lines
such as Telecommunication and Geo-Information
are likely to be affected by lower military andgovernmental demand, leading to short-term
stabilisation of revenues.
Longer term, the profitability of the Division
should gradually improve due to new ways
of working after the implementation of thetransformation programme AGILE.

EADS Annual review 2010

continuing success48
Cassidian showed significant organic growth, driven by anincrease in contributions from the newer security segments,
Eurofighter and missile businesses. The Divisionaccelerated its drive to globalise its business outside
Europe – supported by its rebranding – while also
developing next-generation defence and security products.
(€m)

2010

2009

Revenues

Variation

Revenues by markets (in % of external revenues)

5,933

5,363

+11%

Self-financed R&D

251

216

+16%

EBIT*

457

449

+2%

8%	Civil	
92%	Defence

Order intake

4,312

7,959

-46%

Order book

16,903

18,796-10%

p44

In 2010, Cassidian balanced steady growth in its corebusinesses with greater investment in the markets
and products expected to fuel future expansion.
The Division’s rebranding reflects Cassidian’s
long-term strategy of becoming a truly global player
in the defence and security markets.
Revenues rose by 11% to €5.9 billion (€5.4 billion in 2009),
mainly reflecting growth in security business where
significant programme milestones were achieved in the
Saudi border security contract. In addition, significant
p46
contributions were made by Eurofighter and MBDA1)
missile programmes, including export.
Security businesses, particularly border security,
are currently ramping up and have not yet achieved the
profitability levels of mature programmes. Despite higher
self-funded research and development for futurebusiness, the less favourable business mix and a charge
resulting from the UK’s cancellation of the FiReControl
security contract, EBIT* increased slightly to €457 million(€449 million in 2009), thanks to margin growth in mature
programmes.

1) EADS owns 37,5% of MBDA, one of the world’s largest missile companies.

p48

New orders of €4.3 billion resulted in a year-end orderbook of €16.9 billion (€18.8 billion in 2009). All four
activities – Air Systems, Electronics, Systems andMissiles – contributed.
Expanding international presence
The Division developed its presence in growing defence
markets. In India, the focus of a current Eurofighter export
campaign, Cassidian established an engineering centre
in Bangalore. Additionally, a joint venture was formed with
Larsen & Toubro in India. In Brazil, a joint venture wascreated with Odebrecht, a large local conglomerate,
to target the Latin American defence and security market.
As a consequence of the various security projects in
the Middle East, Cassidian’s workforce in the region
increased significantly.
Unmanned Aerial Systems development
Cassidian consolidated its credentials as a potential
European prime contractor for Unmanned Aerial Systems(UAS). The Barracuda demonstrator completed four
test flights, in particular showing its ability to fly in civilcontinuing successcassidian49

Eurofighter

airspace. The Euro Hawk, jointly developed with Northrop
Grumman, made its first flight in June 2010. The Harfang
MALE UAS demonstrated its outstanding operational
performance in Afghanistan.
Talarion is the focus of Cassidian’s UAS development.
With both military and civil security applications, it is
the only genuine European UAS programme. EADS iscontinuing to explore research and development funding
with European governments.
Progress across businesses
Among other important advances, development ofEurofighter’s E-Scan next-generation radar began,which aims at improving Eurofighter’s export potential.
The transatlantic new Medium Extended Air Defence
System (MEADS) passed its critical design review.
In the increasingly important field of cyber security,
Cassidian took major steps to reinforce its capabilities byentering a number of strategic cooperation agreements
and making an acquisition.

OutlookCassidian will seek to consolidate its position in its
European home markets in the context of contracting
domestic budgets. In parallel, Cassidian is focussing
activities on strategic growth markets such as India,
Brazil and the Middle East region with the objectiveof developing a long-term industrial presence.
Cassidian’s large system integration capabilities,
its experience in leveraging complex technologies
and customer proximity will remain the key
enablers in securing the future growth of these
activities. This medium- to long-term transformation
process aims to achieve a well-balanced andoptimised positioning of Cassidian from ageographic and solution-offering perspective.
In the short term, Cassidian’s profitability will sufferfrom increasing research and development
expenses and a less favourable mix of activities.

buil
the f

ding
uture

“I’m glad to be playing arole in innovations which
will transform future lives.”— Maud Deplancq
Quality Manager - Assembly,
Integration and Test, Astrium

Innovation is the foundation of the future. EADS files
over 1,000 patents every year and is committed
to maintaining investment in new technologies;
such as for satellites to monitor the Earthand provide communications to remote areas.

EADS Annual review 201054

Building the future

Human Resources

EADS management and Human Resources areworking together to provide employees greater support
and to create a more innovative and engaging working
environment.
During 2010, EADS stepped up its multi-year engagement
programme, aiming to boost motivation and innovation
throughout the workforce. The Human Resources (HR)function continued actions to improve proximity to thesome 122,000 employees and to increase efficiencies
through organisational redeployment and streamlining.
Increased engagement
Based on the findings of the first EADS-wide survey
in 2009, actions were taken to improve employee
engagement.
Managers and their teams discussed and analysed survey
results and decided together on specific actions to take.
Divisions made the overall survey results accessible to all
their employees. Some 3,000 managers received training inways to build engagement. To encourage exchange of bestpractice, around 100 focus groups were organised in all
Divisions. At corporate level, two engagement forums were
held involving some 600 managers. Recommendations
from both were discussed within the EADS Executive
Committee and fed into improvement measures.
A follow-up 2010 engagement survey attracted a highlevel of participation at 80%, compared to 69% in 2009,indicating employee commitment to the process.

The number of “engaged” employees increased compared
to 2009. Actions to lift engagement at all levels of theorganisation will continue over the coming years, with
the next survey due to take place in early 2012.
Proximity, efficiency and mobility
In the frame of the Future EADS improvement programme,
HR is further streamlining the way it delivers its services.
The new “HR Delivery Model” is based on three pillars:
HR Business Partners, Centres of Competence andShared Service Centres.
The number of HR Business Partners is to rise to one forevery 200 employees, a 34% increase overall. This will
enable employees to meet their HR Business Partner
more often. In order to give HR Business Partners moretime to support employees’ development and businessneeds, administrative tasks are being transferred toShared Service Centres.
For instance, the Group’s International Mobility Centre,
which supports employees on international transfers
became fully operational in 2010. It is another step to support
international mobility, which is a key priority for EADS.

Building the future

Human Resources

55

Competence management
A new Learning & Competences Directorate has been set
up to foster harmonisation of competency development
and training across the entire EADS Group throughdedicated Shared Colleges.
A common competence management tool is also being
progressively deployed to improve anticipation of individual
development needs as well as the Group’s overallrequirements for different skills and competencies.
Employer attractiveness
EADS’ popularity among European engineering students
remained strong, demonstrating the Group’s success inattracting the continent’s engineering talent. In France,engineering students voted EADS the first and in Europe
the eighth most highly regarded employer, according
to an independent survey.
Free share plan
Employees were offered ten free EADS shares to mark
EADS 10th anniversary, a symbolic gesture to acknowledge
each employee’s personal contribution
to the Groups’ success.

Rich social dialogue
EADS enjoys a history ofsocial dialogue which is
unique in the aerospaceand defence sector.
During 2010, an agreement
defining the negotiation
process at European level
was signed with all unions
in the Group’s four main
home countries and with theEuropean Works Council.
They agreed that Europeansocial agreements signed
by a majority of two thirdsof union negotiators
will be automaticallytransposed at national
level in all these countries,
without modification.

This innovative agreement isa major step towards further
integration within EADS.
Relations with the EADS
European Works Council
were constructive. For
example, EADS funded a tripby employee representatives
to view its activities inIndia, and an in-depth
analysis of Group strategy
aided by a consultant.
Also of note, three agreements
aiming at promoting genderand social diversity, andat preventing stress, weresigned in France in 2010.

EADS Annual review 201056

Building the future

Innovation

Innovation has a vital role to play in sustaining the Group’s
competitive position and in enabling it to achieve its Vision2020 goals. Driven and coordinated by the Corporate
Technical Office (CTO), EADS’ research and technology
activities in 2010 recorded significant achievements,
with a specific emphasis on the environment.

Building the futureActing as the focal point for research and technology (R&T)
across the Group, the CTO is working to support EADS
Vision 2020 targets by setting and executing R&T strategy,
globalising activities in the R&T field and ensuring thatpeople at the Company have the required level of expertise
to master future technology challenges.
Self-financed research and development spending – which
includes product development – remained roughly stable
as a proportion of Group revenues, at 6.4%. The budgetof Innovation Works, CTO’s global network of laboratories
for strategic long-term research, remained at a stable level.
In 2010, CTO recorded major achievements above all in
the areas of green mobility and efficient manufacturing
processes.
Technology
EADS aims to maintain its position as the global number
one in aerospace patents, and in 2010, the Group filed a
total of 1,007 new patents. Over the last six years, EADS’
portfolio has doubled in size to more than 9,000 patents.
EADS’ technologies have a range of applications not only
within aerospace. For example, many wind turbine blades
use an efficient fibre-composite manufacturing method
originally developed at EADS research facilities andCassidian. The Group is offering select intellectual property
to other companies through licensing agreements.
Green mobility
EADS is supporting the development of biofuels to
make aircraft more environmentally friendly. Biofuels are
considered carbon-neutral as their feedstock consumes
CO2 when growing. Algae are seen to be a promisingpotential feedstock, as certain species contain highlevels of oil and cultivation does not compete with foodproduction. Microalgae reproduce rapidly and create atleast 30 times more organic substance (biomass) per
cultivation area than, for example, rapeseed.
In 2010, EADS achieved the world’s first flights of anaircraft powered by pure biofuel made from algae, usinga Diamond DA42 twin-propeller plane.
Advances were also achieved in the field of electrical andhybrid propulsion. The all electric Cri-Cri aircraft, jointly
developed by EADS Innovation Works, Aero Composites
Saintonge and the Green Cri-Cri Association made its
official maiden flight in 2010.

innovation

The aerobatic plane incorporates numerous innovativetechnologies such as lightweight composite structuresand electric motors which deliver propulsion without
CO2 emissions.
Helicopters with hybrid diesel-electric propulsion systems
that reduce fuel consumption and emissions by up to
50% were showcased at the UK’s Farnborough Air Show
in July 2010.
PeopleThe EADS Lean Six Sigma programme (formerly
EADS Black Belt programme) aims to train 3% of the
EADS population by 2014 in continuous improvement
techniques, and to embed the principles of Lean and Six
Sigma in the businesses. In 2010, 786 employees werecertified through the programme including 56 trained asBlack Belts, achieving savings of over €37 million. CTO iscollaborating with the Group’s Human Resources functionin order to support experts’ careers and PhD candidates,
as well as identifying future key competences and skills.
To support the Group’s globalisation strategy, the numberof staff at EADS research centres in Bangalore, India andSingapore was increased.

Revolutionising manufacturing
EADS is leading the worldin development of Additive
Layer Manufacturing (ALM),
a revolutionary new
method of manufacturingthat promises greater
precision, improved raw
material performance andsignificantly less waste.
With the aid of lasers,
raw materials in powder
form are fused together,
one layer at a time,
to form component parts.
Consequently, designs
can be followed exactly,
raw materials can beused to their optimum
performance and the wastefrom traditional machining
processes is eliminated.
Analysis of an A380 door
strut bracket has shownthat ALM has great potential
as a “green technology”,
using 25 times less energy
and raw material, andweighing 50% less thana milled titanium bracket.
ALM has moved rapidly
from prototype stage
to producing certified
high-performance
aerospace parts.

57

EADS Annual review 201058

Building the future

Programme Management

The drive to improve programme management gatheredpace. Actions included implementing best practice
policies across the Group, formalising approaches anddeveloping expert competencies. EADS considers
programme management to be a core competency
and is aiming to foster a culture of excellence in this field.
Focusing on programme management as a corecompetency, the Group is enhancing its capabilities in thisfield, leveraging best practices developed in one area of
business to make improvements in others.
In 2010, actions to improve programme management
were focused on introducing new policies for solving
challenges and training employees in programmemanagement disciplines.
Programme management policies
Targeting specific areas that are critical to the successof programmes, twelve policies for improving
programme management were introduced during theyear 2010 in areas such as how to allocate resourcesand decide on leadership of programmes, offer and bid
management, and risk management. The policies outline
high-level rules and recommendations, based on Group
best practices. Individual businesses started to apply
them, and progress will be monitored in 2011.
The policy on programme management organisation, forexample, introduces a reference model enabling managers
to adapt a proven model to new projects rather thandesigning entirely new programme structures.

A further policy defines principles for EADS businesses
trading with one another, enabling programme managers
to spend their time focusing on fundamental technology
and engineering tasks, rather than negotiating ad hoc
agreements.
Capability development
To improve levels of expertise and support the taskof identifying and allocating required competencies,
a specific programme management career path was
initiated during the year. Clearly defined and certifiedcompetencies will ensure that programmes are assigned
to managers with the appropriate expertise to deal withthe specific levels of complexity, risk and challenge.
The first candidates passed through qualification in 2010.
Over a hundred are currently training for qualification.
From 2012, all programme managers of new programmes
at Airbus will progressively need to be certified. The other
Divisions will follow.
In total, over 3,000 individuals received training. In mostcases, this was training in programme management
fundamentals. Approximately 1,000 were taught
programme risk and opportunity management. Moreover,
100 programme management executives were trainedBuilding the future

programme management

59

A330/340 Final Assembly Line, Toulousein dedicated courses at Group level and provided support
through a network of peers enabling a constructive
exchange of experiences.
Supply chain
Improving supply chain management was another areaof focus. Work began on a common hub with suppliers.
Analysis was conducted into how suppliers can besupported in delivering programmes to specification,by anticipating the difficulties they may have and fostering
their development. Learning from experience, a study isunderway into practices that contribute to more successful
supplier relationships. There are also plans for evaluating
supply chain maturity.

Controlling project risk
2010 saw significant progressin major programmes.
NH90 helicopter deliveries
increased. Astrium achieved
the 41st successful Ariane 5transporter launch insuccession and delivered
the M51 missile on time.
Airbus brought the A400M
military transport programme
back on track following
agreement with launchcustomers nations, andestablished control over A380
production. Lessons learned
from the A380 have been
applied to the new A350 XWB.

Within the A350
programme, potential
difficulties are being
minimised before major
sub-assemblies reach
the Final Assembly Line.
To reduce risk, technicalmaturity of the different
systems is being pursued
at an early stage.
A “stop and fix” approachhas been adopted, meaningthat technical issues are
addressed as and when
they appear rather thanpassed down the chain, so
limiting the overall impact.

EADS Annual review 201060

Building the future

Sourcing

EADS made progress towards adapting its supply
chain to the Group’s strategic goals. The benefits of anincreasingly coordinated approach to common suppliers
continued to be realised, and further steps were taken to
prepare for a higher level of procurement from countries
outside Europe.

Logistic centre, ManchingBuilding the futureManagement of the supply chain became increasingly
coordinated in 2010, following further integration of
EADS’ procurement organisation. While it will take several
years for the full synergies to be realised, 2010 saw
increased leverage of Group buying power and enhanced
management of suppliers.
External procurement is equivalent to approximately 70%
of EADS’ revenues, and volumes increase every year inline with the Group’s revenue growth. The supply chain
is therefore critical to Group performance, especially as
top tier suppliers are given more responsibility on large
programmes.
The Group progressed towards the mid-term goals of the
Future EADS programme, aimed at greater integration,
as well as the Vision 2020 goal of lifting the proportion of
procurement from outside Europe to 40%. By extending
the supplier base outside Europe, EADS aims to benefit
from cost advantages, to reduce its exposure to
euro/dollar exchange rate fluctuations and to benefit,
through an increased local presence, from business
opportunities in growth markets.

sourcing

Global sourcing
The Global Sourcing Network was strengthened, mostnotably through preparation of a US sourcing office at Airbus
Americas’ headquarters in Virginia. It joins the establishedoffices in China and India.
Development of the Global Sourcing Network is preparing
the ground for growth in international procurement. In 2010,
26% of EADS external procurement by value was from North
America and 3% from the rest of the world, with 71% from
Europe. Procurement from countries such as China andIndia has risen from a low base over five years, and will growsignificantly as production within new programmes at Airbus
and other Divisions is ramped up.
Responsible procurement
Efforts to encourage ethical practices in the supply chain
took a step forward when leading suppliers were sent the
new EADS Supplier Code of Conduct. The Group aims toensure that suppliers commit to its core values regarding
human rights, labour, environmental andanti-corruption practices.

Integration
EADS General Procurement (EGP), the shared services
organisation covering suppliers for a wide range ofcommon items, from professional services to IT, became
fully operational during the year 2010. Charged withextracting synergies and costs from the €8 billion generalprocurement spend, it overachieved 2010 targets and ison schedule to meet its targets through to 2012.
The two specialist Aerostructures and Systems &Equipment procurement boards, established in 2009,
began to fulfil their mandates. They held several
meetings with common suppliers, aiming to strengthen
and coordinate supply chain relationships. Board
Members exchanged best practices, discussed supplierperformance and agreed common approaches towards
the supply chain.
Joint procurement of raw materials continued to deliversynergies, as lead buyers negotiated contracts on behalfof the whole Group. Purchasing of commodities isincreasingly covered by common EADS strategies.

 tronger ties with us
Saerospace suppliers
To strengthen EADS’
procurement activities
in the United States,
the Group establisheda US Sourcing Office at
Airbus Americas’ Virginia
headquarters in early 2011.
EADS already spends
more than US$ 11 billion
each year in the UnitedStates, supporting morethan 200,000 US jobs.
The US sourcing volume
will increase further with theramp up of the A350 XWB
programme. The new teamwill bring closer contact withthe existing US supply chain,and open opportunities for
additional procurement.
A US sourcing strategy
will be mapped out,
leading to procurement
marketing, supplier
screening, surveillanceand development.
The office opening is an
important step in fulfilling
the Vision 2020 strategy
of expanding EADS’international footprint,
to gain access to newmarkets and technology
resources, as well as multicurrency based sourcing.

61

EADS Annual review 201062

Building the future

Eco-Efficiency

Eco-efficiency is a key strategic priority for EADS. In 2010,
EADS strengthened its position as a leading player in the“green” growth market both within commercial aviationand in other aerospace fields.
EADS’ role in aerospace makes it a key player in
efforts to develop sustainable mobility and the “green”
economy. Promoting eco-efficiency as a driver ofinnovation and business was among EADS’ top ten
strategic priorities of 2010.
For EADS, the concept of eco-efficiency combines
the goal of reducing the environmental impact
of products and operations with business logic.
Fuel-efficient aircraft produce less emissions as well as
being cheaper for airlines to run. Through its advanced
technologies, EADS is able to benefit from opportunities inmany areas of the green economy. Astrium, for example,
plays a key role in European programmes to monitor
climate change.
The strategy of developing greener products andprocesses gathered momentum during the year,with significant advances in both product development
and manufacturing.

Product development
While EADS seeks to reduce the environmental impact of
all its operations, improving the eco-efficiency of aircraft isespecially important. Compared to the rest of its lifecycle,
the in-service phase of an aircraft has by far the greatest
impact in terms of CO2 emissions. The introduction of the
Airbus A380, as a replacement for older models, is helping
airlines to reduce fuel burn and emissions per passenger.
The A380 is one of the most environmentally-friendly
passenger aircraft in service today, consuming less than
three litres of fuel per passenger over 100 kilometres,
compared with an average of five litres for the worldwide
commercial aircraft fleet.
The new A320neo development, announced in 2010, willbring further advances. Compared to the current A320
Family, the A320neo will reduce fuel burn by up to 15% perplane which represents a saving of up to 3,600 tonnes of
CO2 per year.
Eurocopter is pioneering noise and emissions ratings for thehelicopter industry, while also developing eco-efficient blade
and engine technologies. Combined in the Bluecopter
technology programme, these are intended to reduce
helicopters’ CO2 and NOx footprints, as well as noise.

Building the futureeco-efficiency

63

Micro algae, a promising source for sustainable biofuel

Pioneering biofuels
As part of a project to gradually substitute fossil fuel inaviation with sustainable1) biofuel, in 2010 Airbus andBrazil’s TAM Airlines flew Latin America’s first biofuel flight.
Airbus is working with TAM Airlines to establish a biokerosene jet-fuel processing plant in Brazil.
From 2011, Lufthansa plans to operate the first commercial
service partly propelled by biofuel on an Airbus A321
between Hamburg and Frankfurt.
Manufacturing facilities
While EADS’ facilities have low emissions relative
to many industries, production processes are being
reviewed to include systematically eco-efficiency
criteria in capital expenditure calculations and other
Company processes.

Reducing co2 in aviation
Over the past 40-50 years,
improvements in engine
technology, aircraft weight
and aerodynamics have
reduced CO2 emissions by
70% and noise by 75%.
Looking forward,
developing new products
to make significant further
enhancements has
assumed a new sense ofurgency. EADS is taking
a leading role in initiatives
to improve the overall
environmental performanceof the sector still further.
In this framework,

the Clean Sky project, aseven-year, €1.6 billion joint
technology initiative aims
at developing technologies
by 2020 that will meettargets set by the Advisory
Council for Aeronautics
Research in Europe.
These are: 50% reductionin perceived noise, 50%
reduction in CO2, 80%
reduction in nitrogen oxide(all relative to 2000 levels).
The aviation industry aims
to halve CO 2 emissions by
2050 and ensure carbon
neutral growth by 2020 2).

Initiatives are underway to reduce energy, emissions of
CO2 and volatile organic compounds, water consumption,water discharge and general waste. For example,
renewable energy heating and power devices are being
fitted to assembly line buildings.
EADS-wide environmental reporting was externallyaudited for the first time in 2010.

1) E ADS defines sustainable biofuels as neither competing with land/water
resources used for food production nor destroying rain forests.
2) Air Transport Action Group Targets.

EADS Annual review 201064

Glossary
Additive Layer Manufacturing (ALM)
A revolutionary new method of manufacturing that promises
greater precision, improved raw material performance andsignificantly less waste.

Eco-efficiency
Term used to describe the management philosophyof creating economic value while minimising
environmental impact.

AGILE
Short for Ambitious, Globally growing, Innovative, Lean and
Entrepreneurial, Astrium’s improvement programme designed
to increase efficiency and reduce cost.

Emerging market/country
An emerging market is loosely defined by the International
Finance Corporation arm of the World Bank as an economy
with low-to-medium per capita income.

Air Transport Action Group (ATAG)
A global coalition of air transport industry companies andtrade associations that have united to foster aviation industry
improvements in an environmentally responsible manner.

Endpoint security
Endpoint security involves installing security software at ‘end
points’, ranging from desktop computers to point-of-saleterminals. The software is then centrally managed througha server or gateway.

Automated Transfer Vehicle (ATV)The space cargo vehicle that is supplying the International
Space Station with scientific equipment, spares and fuel,together with supplies of food, air and water.

Engagement survey
A survey of EADS employees intended to canvass their levelof engagement across a range of measures.

Available Seat Kilometres (ASK)
Available seat kilometres measure an airline’s passenger
carrying capacity. The measure is calculated by multiplying
the number of seats available by the distance flown.

Future EADSEADS programme aimed at improving integration of support
functions across the Group, to deliver efficiency gains andcash savings.

BiofuelFuel made from a range of biomass sources. Biofuels are
regarded as carbon neutral because the biomass they arederived from consumes CO2 as it grows. Second generation
biofuels do not compete with agriculture for land.

Gross Domestic Product (GDP)GDP is a basic measure of a country’s economic output,or the market value of all goods and services produced
by a country in a year.

Black Belt
See Lean Six Sigma Programme.

Hedge
A hedge is a form of financial insurance that provides
protection against adverse currency movements.

Bluecopter
Bluecopter is the name of the Eurocopter technology
demonstrator that showcases ‘green’ technologies, including
a fuel-efficient, low-emission propulsion system.
Carbon dioxide (CO2)
A greenhouse gas identified as contributing to climate change.
Cyber security/warfare
Cyber security is the emerging field of protecting computer
systems and data from interference through the internet.
Demonstrator
A prototype used to demonstrate new technologies aheadof their incorporation into new products.
Earnings before interest and taxes (EBIT*)EADS uses EBIT* pre-goodwill impairment and exceptional
items as a key indicator of its economic performance.

International Air Transport Association (IATA)
IATA is the airline industry’s global trade association,
representing some 230 airlines operating 93%
of scheduled air traffic.
International Civil Aviation Organisation (ICAO)A United Nations specialised agency that works to achieve
the safe, secure and sustainable development of civil aviation.
International Organisation for Standardisation (ISO)ISO is a network of national standards institutes thatsets standards for the benefit of business and the wider
community.
Innovation WorksEADS’ global organisation that conducts strategic
research, inventing the technologies needed for productdevelopment.

Glossary65
Lean Six Sigma Programme
A course in ‘lean’ management techniques, designed to
improve management of industrial programmes (formerly
known as the Black Belt programme). Lean methodologies
generally seek to minimise the resources required for
production by eliminating waste, so reducing costs,
lead times and inventory requirements.

Shared services
Support functions that an organisation’s different subsidiaries
share in order to increase efficiency and reduce cost.

Light Utility Helicopter (LUH)
The US Army’s Light Utility Helicopter programme
is supplying the UH-72A Lakota helicopter for administrative,
logistic and medical evacuation purposes, as well as
to support army training.

Sourcing
Sourcing is another term for procurement from the
supply chain.

Long-range aircraft
A long-range aircraft is capable of travelling more than
3,000 nautical miles, at normal cruising conditions,with a full payload.
Medium Extended Air Defence System (MEADS)A NATO-managed project designed to replace the Patriot
missile defence system.
Nitrogen oxides (NOx)NOx are a group of gases that contribute to climate change.
Parapublic
The adjective describing organisations linked to the public sector.
Power8An Airbus cost reduction programme that has introduced
a new organisational structure, leaner processes and bettercash management.
Power8 plus
The extension of the Power8 cost reduction programmethat includes all EADS Divisions.
Ramp-up
An aerospace industry term used to describe a new
production programme’s increasing level of activity.
Revenue Passenger Kilometre (RPK)
Revenue passenger kilometres measure actual passenger
traffic. A revenue passenger kilometre is flown when a revenue
passenger is carried one kilometre. A passenger for whosetransportation an air carrier receives commercial remuneration
is called a revenue passenger.
SHAPE
Eurocopter’s improvement programme designed to increase
efficiency and reduce cost.

Single-aisle aircraft
A single-aisle aircraft has just one aisle, such as
the Airbus A320.

Supply chain
A supply chain consists of an organisation’s network of
external suppliers. In EADS’ case, the Business Units havesuppliers providing systems, components and services.
Unmanned Aerial System (UAS)An unmanned aircraft, and ground control system, used formilitary or security purposes that conducts reconnaissanceand can be used as an attack aircraft.
Vision 2020
Vision 2020 is EADS’ strategic vision for guiding the Group’s
development until 2020.
Volatile Organic Compound (VOC)
A VOC is an organic chemical compound that has significant
vapour pressures, and which can affect the environment.

EADS Annual review 2010

Addresses
66

EADS HEADQUARTERS
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addresses

novation,ses arealue.
re starts today.
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67

EADS Annual review 201068

Shareholder Information
Visit our website at www.eads.com

Financial Calendar

Investor Relations Contact:

Full Year 2010 results release:Toll-free telephone numbers:

9 March 2011

France:0 800 01 2001

Germany: 00 800 00 02 2002
First Quarter 2011 results release:

Spain:

00 800 00 02 2002

13 May 2011
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Annual General Meeting:can contact us at:

26 May 2011, Amsterdam,+ 33 1 45 30 85 82

The Netherlands
An e-mailbox is dedicatedPrivate Shareholder Information
meeting:
30 June 2011, Paris, France
Half Year 2010 results release:
29 July 2011
Nine-Month 2010 results release:
10 November 2011

to answering shareholders’ enquiries:
ir@eads.com

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

www.reports.eads.com

The complete eads Annual Report suite 2010 consists of:Annual Review 2010
Flight into the Future

Design and produced byRegistration Document 2010
Financial Statements– Written by The Clerkenwell Consultancy – Printed by Chirat.

Leaflet - Photographs © by EADS: Abaca/Guibbaud, Exm/Gousse, Geoffrey Lee – Airbus, Airbus Military, Astrium, ATR, Cassidian,
ESA/Astrium, Eurocopter, Eurocopter North America, Getty Images/Seiya Kawamoto, Sirpa Air.
Annual Review - Photographs © by EADS: Abaca/Gouhier, Christian Brinkmann/Market Place, Jürgen Dannenberg, Exm/Gousse,
Jetphoto-Mark Harris, Julian Metzger, T. Jullien – Airbus, Airbus Military, Astrium, Astrium/P. Baudon, Cassidian, Cassidian/Dannenberg,
Daimler Benz, ESA/Astrium, ESA/S. Corvaja 2010, Eurocopter, Eurofighter, Getty Images/Susanne Kronholm, Sirpa Air, Paolo Verzone.

EUROPEAN AERONAUTIC DEFENCE AND SPACE COMPANY EADS N.V.

at a glance

Annual Review

www.eads.com

EADS

EADS Annual Review 2010

European Aeronautic Defence
and Space Company EADS N.V.
Mendelweg 302333 CS Leiden
The Netherlands

Flight into
the Future

In France
37, boulevard de Montmorency
75781 Paris cedex 16 – France
In Germany
81663 Munich – Germany
In Spain
Avenida de Aragón 404
28022 Madrid – Spain2010