Businesses

EADS

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1. Overview
EADS was created in July 2000 following the merger of Aerospatiale Matra, DaimlerChrysler Aerospace AG (“Dasa”) and Construcciones Aeronáuticas SA (“CASA”). EADS is the European leader and number two in the world in the aeronautical, space and defence industry and Lagardère held a 7.5 % share in the group.

In terms of market share, EADS is one of the two largest manufacturers of commercial aircraft, non-military helicopters, commercial launchers and missiles systems. The EADS group is also one of the leading suppliers of military aircraft, satellites, defence electronics and ancillary services.

EADS has five business divisions: (i) Airbus, (ii) Military Transport Aircraft, (iii) Eurocopter, (iv) Defence and Security Systems and (v) Astrium.

In 2007, EADS generated 77.2% of its sales of €39.1 billion in the civil sector and 22.8% in the defence sector. The EADS group employed 116,493 staff as at the end of December 2007.

2. Main events in 2007
EADS continued to enjoy commercial success in 2007. With new orders in excess of €137 billion for the financial year, EADS’ order book reached a historic level of €339.5 billion, thanks in particular to solid performances from Airbus and Eurocopter. Airbus reached an important milestone in its history in 2007, with the delivery of its 5,000th aircraft and the first A380 to Singapore Airlines.

2007 will also be remembered as an important date in the group's history in terms of corporate governance. The management structure of EADS was simplified, with the appointment of a single Chairman of the Board of Directors and a single Chief Executive Officer. The number of independent board members was also increased.

The year was also marked by some significant challenges in terms of the group's major development programmes. There were delays in the development of the A400M and NH90 programmes, whilst Airbus continued to face a sizeable challenge with the step up in the pace of production of the A380. EADS announced a delay of between 6 and 12 months in the delivery of the first aircraft in the A400M programme, with provisions of €1.4 billion recorded in the company's accounts for 2007.

The US dollar has lost 40% of its value against the euro in five years. The Power8 plan was launched in February 2007 to tackle the challenge of a 1.35 dollar euro. The programme began to produce results in 2007, with savings achieved in excess of the agreed target and preferred partners selected for the potential transfer of six Airbus aerostructure sites.

New orders are soaring, largely driven by Airbus. The order book is up by 29%, reaching record heights.

Airbus

2007 was another historic year for Airbus in terms of both orders and deliveries. Airbus supplied 453 aircraft, 19 more than the previous year.

The 1,458 gross new firm orders recorded by the aircraft manufacturer exceeded the previous record, set in 2005, with 1,111 orders. This equates to a 51% share of the market for aircraft with over 100 seats, in both unit and value terms. Net orders (minus cancellations) totalled 1,341 in 2007.

Military transport aircraft

The Military Transport Aircraft division is experiencing delays in its flagship A400M programme. These are overshadowing the division’s other activities and having a negative impact on its financial results.

A number of measures are currently being taken to remedy the situation, in particular in engine and systems development. These should make it possible to finalize a delivery schedule.

Eurocopter

Eurocopter deliveries and orders have reached exceptional levels in a very buoyant international helicopter market. Following an increase of 76% in helicopter deliveries (from 279 to 492) over the last three years, the division has begun to reorganize its industrial base to cope with the expected increase in production.

Astrium

Following several years of innovation and operational improvements, Astrium has established a solid competitive position, as shown by its substantial order book and increase in EBIT.

The satellite business has made good gains in market share, becoming the world leader in the telecommunications sector. At the same time, its launcher business with Arianespace has won the highest number of orders in the market.

Defense & Security

MBDA confirmed its position as the world leader in missiles systems, with income of over €3 billion. There were some major successes in the security field, in particular in secure communications and territorial security.

Copyrights : Airbus, EADS, PENNA-Eurocopter, Deulin-Eurocopter