Engaging U.S. Markets: Strategy and Programs

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Randolph Banks
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1 Engaging U.S. Markets: Strategy and Programs Ralph D. Crosby, Jr. CEO North America North America Investor Forum New York 7 th October

2 EADS Accessing the U.S. Aerospace and Defense Market Executing a long-term, well-resourced strategy of: Expanding U.S. presence Building upon key EADS competencies and capabilities Partnering with U.S. firms 2

3 EADS Accessing the U.S. Aerospace and Defense Market Executing a long-term, well-resourced strategy of: Expanding U.S. presence Building upon key EADS competencies and capabilities Partnering with U.S. firms 3

4 Expanding U.S. Presence: Vital Statistics Sales billion Procurement $6 billion Employment 2,400 Job creation More than 100,000 Locations 33 in 20 states and the District of Columbia 4

5 Expanding U.S. Presence: Organizing to Grow EADS North America headquarters up and running EADS North America holding company established New Board of Directors in place Defense company legally constituted 5

6 Expanding U.S. Presence: EADS North America Holding Subsidiary Products Customers American Eurocopter Astrium North America* Barfield, Inc. EADS Aeroframe Services EADS CASA North America EADS Socata EADS Supply & Services EADS Telecom NA Fairchild Controls TYX Helicopters & Associated Services Space-related Engineering & Technical Services Aircraft Avionics, Component, and Subsystem Repair; Rotable Parts Aircraft MRO & Paint Services Sales, Support & Training for EADS CASA Aircraft Sales & Support for Corprate & Leisure Aircraft EADS U.S. Purchasing Agent IP Telephony, Secure Digital Radio & Secure Networks Air Turbine Drives & Aerospace Environmental Contol Systems Automated Electronic Test Equipment & Software; Secure Networking U.S. Coast Guard, U.S. Border Patrol, California Highway Partol,corporations, and individuals Boeing America West, DHL, Boeing America, Fed Ex, Northwest Fed Ex, Air Jamaica,DHL, Continental USASOC, OSACOM Recreational Pilots, Corporations EADS Divisions and Business Units AT&T Broadband, Federal Reserve, U.S. Army, Microsoft Defense Department, Boeing, General Dynamics, U.S. Marine Corps, Boeing, Lockheed Martin, Honeywell, Raytheon * Currently represents operational reporting only. Astrium North America will be incorporated into the ownership structure in the future. Total Revenues: $529 million Total Employment:

7 Expanding U.S. Presence: EADS North America Holding Finance EADS CEOs Strategic Coordination Marketing North America Airbus Military Transport Aircraft Space Aeronautics Defense & Security * Currently represents operational reporting only. Astrium North America will be incorporated into the ownership structure in the future. September 2003 EADS CASA North America Astrium North America* American Eurocopter Barfield EADS Aeroframe Services Socata Aircraft EADS Telecom NA & ARC-IAI Fairchild Controls TYX & ARC EADS Supply and Services EADS North America Defense 7

Facility Golden Triangle, Mississippi Ground broken August 7, 2003

8 Expanding U.S. Presence: Direct Investment Helicopter Manufacturing and Assembly Facility Golden Triangle, Mississippi Ground broken August 7, 2003 FAA certification September 24, 2003 for temporary facility First aircraft inducted in temporary facilities in July

9 Expanding U.S. Presence: Direct Investment Kenai, Alaska Mobile, Alabama EADS CASA North America Mobile, Alabama Headquarters for Military Transport Aircraft Division in the United States Location for delivery of first CN-235 maritime patrol aircraft to the U.S. Coast Guard Hellas Production Site Kenai, Alaska Production location for helicopter obstacle avoidance system for U.S. Special Operations forces 9

10 Expanding U.S. Presence: Merger and Acquisition Acquisition target characteristics EADS core business alignment Strong market position DoD / Homeland Security business base Financially attractive Constituency support Strong management Outcome Citizenship Strengthened Strengthened competitive position competitive position Synergy with remainder of Synergy EADS with remainder of EADS 10

11 Expanding U.S. Presence: Merger and Acquisition Mission Areas C4ISR Fixed Wing Aircraft Rotary Wing Aircraft Government Services Training & Simulation Testing Engineering Program management Logistical support Weapon systems Simulation Platform integration Logistics Hardware, software services Tactical Aircraft Electronic Warfare Weapons Defense Electronics Integrated Airborne Systems Mission systems Sensors Subsystems Communications Manned Unmanned Mission aircraft Transport Combat Weapons 11

12 Expanding U.S. Presence: EADS North America Locations TYX Seattle, WA Fairchild Controls Frederick, MD TYX Sacramento, CA EADS Telecom NA Colorado Springs, CO TYX St. Louis, MO TYX Reston, VA CASA Aircraft USA Chantilly, VA EADS Supply & Services Rockville, MD EADS North America Washington, DC Barfield, Inc. Phoenix, AZ TYX Atlanta, GA EADS Telecom NA Addison, TX American Eurocopter EADS Aeroframe Services Grand Prairie, TX Lake Charles, LA TYX Warner Robins, GA EADS Telecom NA San Antonio, TX Astrium NA Houston, TX TYX Orlando, FL Socata Aircraft Barfield, Inc. Pembroke Pines, FL Miami, FL 12

13 EADS Accessing the U.S. Aerospace and Defense Market Executing a long-term, well-resourced strategy of: Expanding U.S. presence Building upon key EADS competencies and capabilities Partnering with U.S. firms 13

14 Building Upon Key EADS Competencies and Capabilities Market Segment: Civil Air Transport 14

15 Building Upon Key EADS Competencies and Capabilities Market Segment: Missionized Transport Aircraft EADS Products CN-235 C-295 Current Programs Maritime Patrol Aircraft U.S. Coast Guard Deepwater Program Future Potential Programs U.S. Army Medium Transport C-23 Replacement 15

Product USAF Advanced Tanker Strategy Full

16 Building Upon Key EADS Competencies and Capabilities Market Segment: Missionized Transport Aircraft EADS Product USAF Advanced Tanker Strategy Full Capability Product U.S. Production Partner with U.S. Prime 16

17 Building Upon Key EADS Competencies and Capabilities Market Segment: Rotary Wing Aircraft EADS Products Complete Inventory of transport and utility helicopters Market Position #1 helicopter manufacturer worldwide #1 provider of transport helicopters to Department of Homeland Security #1 in U.S. deliveries YTD August 2003 #1 in U.S. corporate, utility, parapublic, & EMS markets YTD August 03 Current Programs HH-65 modernization U.S. Coast Guard Deepwater Program (VRS) Future Potential Programs U.S. Border Patrol U.S. Customs Service U.S. Air Force Personnel Recovery Vehicle (PRV, formerly CSAR) 17

Building Upon Key EADS Competencies and Capabilities Market Segment: Missile and Air Defense EADS Products and Capabilities Radar sensors High performance missiles Systems integration Current

18 Building Upon Key EADS Competencies and Capabilities Market Segment: Missile and Air Defense EADS Products and Capabilities Radar sensors High performance missiles Systems integration Current Programs MEADS Threat Set MEADS Tactical Future Potential Ballistic Missiles Programs U.S. Missile Defense (partnered with Boeing) Maneuvering Tactical Ballistic Missiles Helicopters Fixed-Wing Aircraft Cruise Missiles 18

19 Building Upon Key EADS Competencies and Capabilities Other Market Segments Commercial Aircraft Maintenance Repair and Overhaul Integrated Telecommunications Aircraft Environmental Subsystems Advanced Sensors 19

20 EADS Accessing the U.S. Aerospace and Defense Market Executing a long-term, well-resourced strategy of: Expanding U.S. presence Building upon key EADS competencies and capabilities Partnering with U.S. firms 20

21 Partnering with U.S. Firms Strategic relationships combining best capabilities and enabling complementary market access Program AGS Air Traffic Control Deepwater EuroHawk Mako MEADS Missile Defense Partner Northrop Grumman Boeing ICGS LM/NG Northrop Grumman GE Lockheed Martin Boeing 21

22 Partnering with U.S. Firms: Key Initiatives Deepwater MEADS Threat Set MEADS Tactical Ballistic Missiles Maneuvering Tactical Ballistic Missiles Helicopters Fixed-Wing Aircraft Eurohawk Cruise Missiles 22

23 EADS North America Strategy Invest (Commercial) Acquire/Invest (Defense) Other Markets Defense Reachback U.S. Firms Partnerships Joint Transatlantic Projects Direct Sale Building U.S. Citizenship 23

BOEING GLOBALIZATION PROGRAM

BOEING GLOBALIZATION PROGRAM Growth & Productivity: Leveraging Business Internationally Dennis Encarnation Harvard University BOEING GLOBALIZATION PROGRAM PART IV: Aerospace Industry AEROSPACE: TRANS-ATLANTIC