Delivering on our Commitment to the United States Marketcompany.airbus.com/dam/assets/airbusgroup/int/en/investor... · Deepwater CN-235 MPA; TRS-3D Radar for Deepwater and LCS Missile

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Delivering on our Commitmentto the United States Market

Ralph D. Crosby, Jr.Chairman and CEO, EADS North America

North America Investor ForumNew York – December 3rd, 2004

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EADS in the United States

Our Commitment

Delivering on our Commitment

Looking Ahead

Our Path

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Our Commitment


Looking Ahead

Our Path

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Our Commitment

Grow EADS North America, achieving sales in 2006 of

greater than $ 1 billion

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Our Commitment


Looking Ahead

Our Path

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EADS North America Strategy

Expand U.S Presence

Socata Aircraft

EADS Sogerma Barfield

EADS AeroframeServices

AstriumNorth AmericaARC-IAI

American Eurocopter

EADS TelecomNorth America

EADS Supply and Services

EADS-NA DefenseTYX

Fairchild ControlsEADS CASA North America

• Consolidate• Integrate

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Expanding U.S. Presence –Integrate and Consolidate

EADS North AmericaHR

Communications Finance

LegalGovernment

RelationsSpace

Activities

Strategy

M&A

Fairchild Controls

EADS CASA-NA

EADS-NA Defense

Air Force Programs

Test & Services

Defense & Security

Helicopter Programs

Racal InstrumentsARC-IAI

American Eurocopter


EADS Telecom NA

TYX

EADS Aeroframe

EADS Supply & Services

Socata Aircraft

Astrium NA*

* Not yet integrated into EADS-NA legal structure.

AMH

ContractingExport Control

Tanker Capture Team

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Expand U.S Presence

Socata Aircraft




American Eurocopter



EADS-NA DefenseTYX

Fairchild ControlsEADS CASA North America


American EurocopterMississippi Facility

• Invest

EADS CASA North America

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Expanding U.S. Presence – Invest

American Eurocopter Mississippi Facility

• Opened October 20 at Golden Triangle Regional Airport, Mississippi

• 85,500 sq ft facility • Will employ staff of 100

• Strategic expansion of EADS-NA industrial presence in the US

• Providing hi-tech, high-value American jobs• Assembly and completion of AS 350 and EC

120 helicopters• Fabrication of aft fuselage of AS 350

helicopters

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Socata Aircraft




American Eurocopter



EADS-NA DefenseTYX

Fairchild ControlsEADS CASA North AmericaRacal Instruments

American EurocopterMississippi Facility

EADS CASA North America

• Acquire

Expand U.S Presence


• Invest

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Expanding U.S. Presence – Acquire

EADS seeks to establish a US operational footprint that generates defense sales across several market sectors

While distinct, each sector will support one or more of the other sectors’ lines of business and customer bases

Operational Support

Solutions

Operational Support• Full-range of services

and products required to enable, train, maintain and sustain combat forces

Defense Electronics

Defense Electronics• Radio Frequency

systems• EO / IR & Lasers• Data Systems• Communications

Network Centric Systems

Network Centric Systems

• Architectures• Concepts of operations• Command & Control

Platform Systems

Platform Systems• Fixed and rotary wing • Structural upgrade and

major rework • Final assembly or

production in the US

EADS NA

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Expanding U.S. Presence – Acquire

Racal Instruments: First EADS-NA Acquisition

• October 2004 – EADS-NA acquires US operations of California based Racal Instruments

• Leading firm in the development, production and integration of systems and instruments to test electronics, aerospace and defense weapons systems

• Strengthens EADS market position in the United States . . . . and globally

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U.S. Presence

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EADS North America StrategyLeverage our Capabilities

PersonnelRecovery Vehicle

Light UtilityHelicopter

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Leveraging our Capabilities

• Airbus leads the global commercial aircraft market

• Advanced technology –Fly-by-wire

• Aircraft family concept –high commonality

• Based on the top-selling A330 commercial platform – a modern and proven design

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EADS North America StrategyPartner with U.S. Primes

SAIC

GE

Lockheed Martin/ICGS

Boeing

Northrop Grumman

Raytheon

NATO SACT CD&E; NATO TMD

Mako Engines

EC-155 Helicopters; Space Exploration; MEADS; Missile Defense; Deepwater HH-65 Re-engining; Deepwater CN-235 MPA; TRS-3D Radar for Deepwater and LCS

Missile Defense; Air Traffic Management

Missile Defense; Kinetic Energy Interceptor; Euro Hawk; NATO AGS; Air Force PRV Program

Missile Defense/Kinetic Energy Interceptor

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Partner with U.S. Primes

SACT Concept Development and Experimentation (CD&E)

• The SACT CD&E partnership exemplifies transatlantic defense cooperation “in action”

• Contract signed in May 2004 to begin initial Concept, Development and Experimentation (CD&E) activity

• EADS expertise supports the team located in Norfolk, Virginia

• SAIC and EADS-NA/EADS Defense & Security Systems are supporting Supreme Allied Command Transformation (SACT) Experimentation Campaign

• SAIC/EADS-NA team provide modeling and simulation expertise

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EADS North AmericaProgress in a Challenging Environment

Government-to-Government Issues

Tanker Program Opportunity

Election Year Politics

“Buy America” Attention

Our U.S. Customersand

Industry Partners

Effective Strategy

Superior Capabilities

Commitment to U.S. Investment and American Jobs

Benefits of Competition and

Innovation

Best Value Solutions

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Our Commitment


Looking Ahead

Our Path

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Expand U.S. Presence Leverage our Capabilities Partner with U.S. Primes

TRS-3D Radar

• U.S. Coast Guard requirement for radar aboard the Deepwater program’s National Security Cutter

• U.S. Navy requirement for radar aboard future Littoral Combat Ship (LCS)

• October 2004 – EADS signs agreement with Lockheed Martin to cooperate on TRS-3D radar for the National Security Cutter and LCS

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US Coast Guard Maritime Patrol Aircraft: CN-235 MPA

• Integrated Deepwater System (IDS) requirement: upgrading of existing fleet of maritime patrol aircraft (MPA)

• CN-235 MPA provides the best value solution for the U.S. Coast Guard

• February 2004 – ICGS team signs agreement with US Coast Guard to provide fleet of EADS CASA CN-235 MPA

• February 2004 – ICGS contracts for first two CN-235 aircraft and six options –contract valued at $87.4 million

• Contract signature for third CN-235 expected in December 2004

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HH-65 Re-Engining • Immediate need to upgrade engines of US Coast Guard’s fleet of 96 HH-65 helicopters

• Part of overall USCG Deepwater program to upgrade USCG fleet of 96 EADS HH-65 helicopters

• EADS largest subcontractor in Deepwater• American Eurocopter will provide 95

re-engining kits, technical assistance to US Coast Guard

• Oct 2004 - contract signed by Lockheed Martin and Northrop Grumman to begin re-engining program

• Contract valued at $124 million

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US Border Patrol (EC 120)

• Requirement by DHS for rotorcraft solution for low level surveillance and security patrol of US borders

• Will replace existing Vietnam era rotorcraft

• October 2004 – American Eurocopter (AE) awarded contract by DHS to supply more than 55 aircraft to US Customs and Border Protection Agency

• Contract valued at $75 million• Helicopters will be assembled at new American

Eurocopter facility in Mississippi• Part of EADS’ commitment to US Homeland

Security

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KC-330 Tanker www.usatanker.com

• The EADS KC-330 aerial refueler will be based on market leading A330 commercial platform

• EADS has established itself in the aerial refueling market based on A330 (UK, Australia) and A310 (Germany, Canada) platforms

• KC-330 is most advanced refueling platform available today

• Will be an American solution to the military’s aerial refueling needs

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Personnel Recovery Vehicle: PRV-21

• PRV program: replace Air Force’s existingHH-60G Pave Hawk combat search and rescue helicopter

• Sept 2004 - EADS-NA and Northrop Grumman sign agreement to provide Air Force with PRV solution

• NH-90 platform procured by NATO nations France, Germany, Italy, and the Netherlands

• Northrop Grumman integrated battle management system

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Army ARH and LUH Helicopter Programs

• EADS-NA is pursuing opportunities to provide the Army with advanced capabilities for the Army’s Armed Reconnaissance and Light Utility Helicopter programs

• EADS-NA solutions will be an American helicopter produced in partnership with a U.S. prime contractor

• ARH – 368 helicopter procurement, with RFP anticipated in December 2004

• LUH – 322 helicopter procurement, with RFP anticipated in February 2005

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Future Cargo Aircraft (FCA): C-295 www.c295-tour.com

• US Army National Guard FCA program to replace existing fleet of C-23 Sherpa with light-medium transport aircraft

• Acquisition program for 33 new aircraft, and possible follow-on requirement for 128 more

• Successful country wideC-295 tour conducted

• Demonstrated aircraft to US Army National Guard, US Army Golden Knights and Forest Service (smoke jumpers)

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Medium Extended Air Defense System (MEADS)

• The program is administered by the NATO agency NAMEASDMA in Georgia

• May 2004 – successful system demonstration took place in Italy

• Design and Development phase of the program launched in September 2004

• A joint venture partnership to develop a transportable medium range defense system to protect against ballistic and cruise missiles, aircraft, and helicopters to deployed forces

• MEADS International is the joint venture between EADS, Lockheed Martin, and Finmeccanica developing the system

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Our Commitment


Looking Ahead

Our Path

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Looking Ahead

Continued M&A Focus

• Tanker Industrial Base• Helicopter Industrial Base• Transport Aircraft Industrial Based

• Mobile Facility Groundbreaking January 2005

• FCA Industrial Base

• Tanker Program• Scheduled first flight of EADS boom

• Helicopters• PRV; ARH; LUH; HH-65

• Transport Aircraft• CN-235 MPA; FCA

Aggressive Program Development and

Support

Expanded Presence

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Looking Ahead

Up to$100 million

$100 million to$500 million

$500 million to$2.5 billion

More than$2.5 billionProgram

TRS-3D

CN-235 MPA

HH-65 Re-Engining

U.S. Border Patrol

KC-330 Tanker

PRV

ARH

LUH

FCA

MEADS

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Delivering on Our CommitmentU.S. Market Growth


2004(e)2003 2006(e)2005(e) 2007(e)2002

1,000

200

600

Rev

enue

s (U

SD M

illio

ns)

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Certain of the statements contained in this document are not historical facts but rather are statements of future expectations and otherforward-looking statements that are based on management‘s beliefs. These statements reflect the Company‘s views and assumptionsas of the date of the statements and involve known and unknown risk and uncertainties that could cause actual results, performance orevents to differ materially from those expressed or implied in such statements.

When used in this document, words such as “anticipate”, “believe”, “estimate”, “expect”, “may”, “intend”, “plan to” and “project” areintended to identify forward-looking statements. Such forward-looking statements include, without limitation, projections forimprovements in process and operations, new business opportunities, revenues and revenues growth, operating margin growth, cashflow, deliveries, launches, compliance with delivery schedules, performance against Company targets, new products, current andfuture markets for the Company products and other trend projections.

This forward looking information is based upon a number of assumptions including without limitation:· Assumption regarding demand· Current and future markets for the Company‘s products and services· Internal performance including the ability to successfully integrate EADS‘ activities to control costs and maintain quality· Customer financing· Customer, supplier and subcontractor performance or contract negotiations· Favourable outcomes of certain pending sales campaigns

Forward looking statements are subject to uncertainty and actual future results and trends may differ materially depending on varietyof factors including without limitation:· General economic and labour conditions, including in particular economic conditions in Europe and North America,· Legal, financial and governmental risk related to international transactions· The Cyclical nature of some of the Company‘s businesses· Volatility of the market for certain products and services· Product performance risks· Collective bargaining labour disputes· Factors that result in significant and prolonged disruption to air travel world-wide· The outcome of political and legal processes, including uncertainty regarding government funding of certain programs· Consolidation among competitors in the aerospace industry· The cost of developing, and the commercial success of new products· Exchange rate and interest rate spread fluctuations between the Euro and the U.S. dollar and other currencies· Legal proceeding and other economic, political and technological risk and uncertainties“

Additional information regarding these factors is contained in the Company‘s document de référence”dated 1st April 2004.The Company disclaims any intention or obligation to update these forward-looking statements. Consequently the Company isnot responsible for any consequencies from using any of the above statements.

Safe Harbor Statement

Documents

Delivering on our Commitment to the United States Marketcompany.airbus.com/dam/assets/airbusgroup/int/en/investor... · Deepwater CN-235 MPA; TRS-3D Radar for Deepwater and LCS Missile