Businesses

EADS

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1 - Overview

EADS was created in July 2000 by the merger of Aerospatiale Matra, DaimlerChrysler Aerospace AG ("Dasa") and Construcciones Aeronáuticas SA ("CASA"). The Lagardère Group owns a 7.5% stake in EADS, over which it exercises joint control with the company's other shareholders.
With consolidated sales of €43.3 billion in 2008, EADS leads Europe and ranks second worldwide in the aerospace and defence industries. In terms of market share, EADS is one of the world's top two manufacturers of commercial aircraft, civil and semi-public helicopters, commercial launch vehicles and missile systems. It is also one of the major suppliers of military aircraft, satellites and defence electronics. In 2008, EADS generated some 74.5% of its sales from the civil sector and 25.5% from the military sector.

2 - Major events in 2008

EADS recorded satisfactory 2008 results, but is facing challenges in key programmes. The Group turned in a solid operating performance and benefited from a dynamic market. All Group businesses received a remarkable number of orders, and Airbus and Eurocopter deliveries are at historic highs. In addition to a record order book of over €400 billion, available cash flow (€2.8 billion) as well as our excellent net cash position (€9.2 billion) at year-end 2008 enabled the Group to withstand the financial crisis.

Airbus

In 2008, Airbus delivered a record number of aircraft while rising to several challenges. Airbus deliveries came to 483 planes, 30 more than in 2007, including 12 A380s.

In a weak economy, Airbus sales demonstrated exceptional dynamism, recording 900 gross orders (777 net orders), bringing its order book to 3,715 planes.

The company received 163 firm orders for its A350 XWB; its order book now stands at 478 units, a record sales pace since the plane was launched in late 2006.

Military transport aircraft

EADS has undergone a reorganization: the former Military Transport Aircraft Division (ATM) has been folded into Airbus, becoming Airbus Military, Airbus's military unit. This move will strengthen programme management, particularly concerning the A400M, and improve resource allocation. The new organization was set up in 2009.

The division recorded delays in its flagship A400M transport aircraft programme. But these difficulties masked the successes of other programmes and weighed heavily on the company's results. In September 2008, EADS announced the delay of the first flight. The Tanker Aircraft business received several contracts, including the eagerly awaited British contract for the provision of 14 A330 MRTTs.

The A330 MRTT was also selected by the American Air Force in February for its KC-30 tanker programme, although the contract was cancelled in the summer of 2008.

Eurocopter

Eurocopter sales grew by 7.5% in 2008.

Demand remained strong in 2008, as evidenced by 715 orders, bringing the order book to €14 billion (1,515 helicopters), with military aircraft representing two-thirds.

Eurocopter delivered a record 588 helicopters in 2008 due to a 20% production increase.

Defence & Security

The Defence & Security business was driven by sales growth in defence electronics, in-service support for airborne military systems and the consolidation of PlantCML, a California emergency call system company acquired in April 2008.

The Division continues to achieve success in the drone segment, demonstrating its prowess in the U.S. defence industry. EADS also successfully provided the largest urban radio communications network ever installed during the Olympic Games in Beijing.

In addition, the Division recorded a strong performance in its defence electronics business.

Astrium

The success of two major programmes, the Jules Verne space cargo and Columbus space laboratory, as well as European contributions to the International Space Station, for which Astrium served as prime contractor, further established its position as the pillar of the European space programme.

Ariane won 13 launch contracts in 2008, representing half the market, and completed its 28th successful launch in a row since 2003.

Copyrights : Airbus, EADS, EADS Astrium / M. Pikelj, Eurocopter, Airbus Military, EADS Astrium / Ingo Wagner