Strategy

VISION 2020

Following the initiative of CEO Louis Gallois, EADS has formulated a strategic roadmap called Vision 2020. This blueprint for EADS' future was presented to the Board of Directors in January 2008. Since then, it has been turned into a Group-wide action plan, applied by every Division.

We aim to achieve:

• A better balance between commercial aircraft and our other activities. Commercial aircraft is a capital intensive and cyclical business. In 2009, it represented 62% of Group revenues. Our goal is to reach a 50/50 balance and a more stable long-term cash flow performance through complementary investment cycles.
   
• A better balance between platforms and services. With a strong customer base for advanced platforms and systems, EADS is in a position to develop high-value related services, which are not only highly profi table but also counter-cyclical. Our target is to raise the service share of revenues from 12% in 2009 to 25% by 2020.
   
• A better balance between our European roots and our global footprint. To gain access to new markets and technology resources, as well as low-cost and multi-currency-based sourcing, we need to expand our international footprint. Our target is to have 20% of employees and 40% of sourcing outside Europe.
   
• Furthermore, we aim to become truly eco-efficient. We are determined to use eco-efficiency as a driver for innovation.
   
• The ambitious targets set out in Vision 2020 call for highly engaged people, innovating beyond technologies. EADS will therefore continue to deliver the best of European know-how, promoting innovation culture, greater mobility and international diversity within its workforce.

EADS PRIORITIES 2010

• Improve the ENGAGEMENT of EADS employees by responding to their expectations on personal development, people management and common values; reinforce diversity,  in particular gender diversity at every level.
   
• Give the top priority to CASH MANAGEMENT to protect the Group’s financial manoeuvrability.
   
• Achieve the SAVINGS targeted by improvement and efficiency programmes at Division level as well as those set by Future EADS and foster integration.
   
• Deliver and secure KEY PROGRAMMES – A400M, A380, A350, NH90 Naval, Saudi border surveillance, US defence programmes.
   
• Protect EADS’ reputation as a responsible company in our HOME COUNTRIES, to win over confidence and support from governments and public opinion.
   
• Prepare the PROGRAMMES OF THE FUTURE – notably future commercial aircraft, X4 and heavy lift helicopters, Ariane 6, Advanced UAV Talarion.
   
• Foster INNOVATION BEYOND TECHNOLOGIES and transform these initiatives into efficiency and new businesses.
   
• In line with Vision 2020, develop SERVICES and SECURITY activities. Focus on core and extend our footprint outside Europe. Increase our global reach in terms of partnerships, sourcing and employees.
   
• Ensure compliance with ETHICAL business conduct in all key business processes.
   
• Move to an ECO-EFFICIENT enterprise – promote eco-efficiency as a driver of innovation in research, production, product development and new business opportunities.

VISION AT WORK in 2009

The drive to implement Vision 2020 achieved significant milestones
in 2009:

• Strengthening the integration of our core business, we integrated military transport and commercial aircraft into Airbus. Structural links were implemented between Astrium and Cassidian Divisions. As a first result, an Electronics Centre of Excellence for space and defence was created to exploit synergies involving 2,500 people at 11 sites in five countries.
   
• Working towards better efficiency, we continued to improve organisation and deliver savings across the Group. The Future EADS integration and cost-saving programme advanced, for example, through creation of new Group-wide shared services for general procurement or facility management.
   
• Reinforcing programme management, we promoted best practices across the Group, drawing lessons from A380 and A400M programmes. Through comprehensive negotiations with launch customers, a new basis was found for the A400M programme.
   
• Continuing globalisation, we achieved first deliveries of A320 aircraft from the final assembly line in China. In the Middle East, we won a major contract to secure Saudi Arabia’s borders. In the US, success of the Light Utility Helicopter programme continued with a follow-on order for 51 aircraft.
   
• Expanding services, Eurocopter won major orders. Early in 2010, Astrium signed a two-year extension to the Skynet 5 services contract with the UK Ministry of Defence. Overall, EADS services grew 20% in 2009 organically, reaching 12% of the Group’s revenues.
   
• Building employee engagement, we launched a multi-year process across the entire EADS workforce. A first employee survey was performed and global as well as local results were communicated to all 4,000 managers. Improvement plans involving feedback from all 120,000 employees were developed throughout the Group.

VISION AT WORK in 2008

The drive to implement Vision 2020 has already achieved significant objectives in 2008: 

• Focusing on our core business: we carved out major aerostructure activities, establishing Aerolia in France and Premium AEROTEC in Germany. We completed the sale of Filton (UK) and Laupheim (Germany), and 70% of EADS Socata.
• Working toward better efficiency: we exceeded the targets of Power8. We launched Power8 Plus and “Future EADS” to further strengthen profitability and improve organisational effectiveness. (read more... )
• Reinforcing programme management: in 2008 we delivered 12 A380 according to plan and met A350 XWB development targets. The production of Ariane 5 ramped up as planned. All Light Utility Helicopters delivered to the US Army were ahead of schedule.
• Continuing globalisation: we acquired US-based PlantCML in the field of secured networks and set up a new A320 final assembly line in China. Partnering with Northrop Grumman, we won the initial US Air Force tanker competition.
• Expanding services: we defined ambitious roadmaps in all Divisions, focusing on high-value services.