EADS N.V. - EADS CEO Camus describes global blueprint in annual new years greetings

EADS has become the driving force in global aerospace. "We are extremely proud about our achievements since the foundation of our company, and especially in the last year," EADS' CEO Philippe Camus highlighted in a new year's address before the press community in Paris. "In many areas, EADS now serves as the model of a highly successful cross-national company with a truly global business portfolio. With Airbus we have turned EADS into the innovation leader in commercial aircraft and have become the global No.1 in this market, defining a new global standard with the A380," Camus said.

EADS has also become a global force in defence. "We are now a leader in many segments of the defence market, and we are reshaping our competitive offering through tankers, transporters, missiles, satellites, space-systems, and air defence - the full spectrum of capability," Camus stated.

"Finally, we are succeeding in engaging the industrial and technological engine of Europe towards the security threats a more unstable and unpredictable world. EADS has done much to encourage European governments to invest in the latest defence capabilities," Camus said. "In this process we have played an important role in bringing the two sides of the Atlantic alliance together on common programmes in areas such as missile defence, air defence, long range strike, commercial aircraft security and many other areas."

"EADS delivers on its strategy of being the defining player in every aspect of aerospace," said Camus. "Airbus has the biggest order book, received more orders and delivered more aircraft than its competitor. And this trend will continue for some years. We also established strong positions in Europe, Asia and North America.

"Thanks to our financial discipline, we are proud that we are for the third consecutive year of EADS history on track to meet or exceed all our financial targets. In fact, I have reason to believe that we will reach our 2003 EBIT* target which was about € 1.4 bn, and I know that we've significantly surpassed our expected net cash position.

Camus pointed also highlighted that in 2004, EADS' defence business growth is expected to offset the decline of Airbus revenues brought about by the combination of the US currency weakness and slightly lower deliveries. "We have achieved strong progress in balancing our portfolio among the defence, space and commercial businesses. That's why EADS expects a 20 percent profitability increase in 2004 following the space turnaround, the successful ramp up of deliveries in our missile programmes, Eurofighter, military helicopters and the acceleration of the A400M development revenues." EADS has successfully weathered the downturn in the commercial aviation business. It has delivered profitable results on a par with the best European companies. "We have managed to deliver solid returns in a weak market, while still maintaining momentum in our future programmes such as the A380."

"Going forward, our task is to extend our leadership position in a number of critical areas," Camus continued. "First, we will get the A380 to the market, which will set the global standard in long range aviation for years to come. At the same time, we are directing our researchers to look over the horizon of our product range in each and every bit of our business. In the defence realm, EADS will use its excellent position in dual use technologies and platforms to offer a new generation of air refuelling tankers, long range transport, mission aircraft and stand-off strike capabilities. In the process, we will increase our defence leadership, including in North America. Finally, we intend to further apply our leadership in high technology space systems to the demands of net-centric warfare.

As global aerospace leader, we have a large responsibility to our industry and our society; therefore we are going to create a global scientific and technological council uniting the best European, American and Asian experts to define the future of aerospace. An announcement will follow in due course."

"My colleague Rainer Hertrich and I have instructed the EADS Top Management to give a special focus to achieving world class customer satisfaction, especially regarding quality and timelines and to the successful management of programme performance, to increase our operating profit, to monitor the cash position, to strengthen our industrial presence in key markets around the globe especially in North America and Asia, to further increase the operational performance and strategic position of the defence business and to continue to lead the commercial aviation market."

"EADS, its employees and managers enter the New Year with confidence, pride, high ethical spirit and a strong sense of mission as a leader in the global aerospace and defence industry."

EADS is a global leader in aerospace, defence and related services. EADS has the fastest growing and biggest order book in the industry. With revenues of € 29.9 billion generated in 2002 and a worldwide workforce of more than 100,000, EADS is the second largest aerospace and defence company in the world. The EADS Group includes Airbus, the market leader in commercial aircraft, the world's largest helicopter supplier Eurocopter and the joint venture MBDA, a world leader in missiles. EADS is the major partner in the Eurofighter consortium, the prime contractor for the Ariane launcher, develops the A400M military transport aircraft as well as military mission derivatives of Airbus platforms and is the largest industrial partner for the European satellite navigation system Galileo.