8 rauen - military aircraft-global inv forum final 2.ppt ... · global investor forum 2003 ... low...

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1Global Investors Forum – Munich – 28th/29th April 2003

Military AircraftAloysius Rauen

President and CEO of Military Aircraft

2Global Investor Forum 2003

Business Overview

Current Programs

Future Business/Growth Opportunities

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Military Aircraft Market

* without CIS/China; e.c. 2002 Source: based on Teal Group

Mission Aircraft(incl. UAV)

appr. $28 bn

Mission Aircraft(incl. UAV)

appr. $28 bnCombat Aircraft

(incl. UCAV)appr. $141 bn

Combat Aircraft(incl. UCAV)

appr. $141 bn Trainer Aircraftappr. $12 bn

Trainer Aircraftappr. $12 bn

Transport Aircraft appr. $44 bn

Transport Aircraft appr. $44 bn

Worldwide Military Aircraft Market Forecast* (2002 - 2011):

Combat aircraft represent two thirds of the global military aircraft market

Eurofighter market share appr. $27 bn

Eurofighter market share appr. $27 bn

Total US$ 225 bn


� Series Programs and DevelopmentProduction of Eurofighter; Pre-development of Mako and MPA-R

� In-Service Support and UpgradesAfter-Sales Services for e.g. Tornado, F-4, F-5, F/A-18, MiG-29, C-130, C-160, E-3A AWACS

� AerostructuresWork performed mainly for other business units within EADS (e.g. Airbus)

Military Aircraft Overview

Key figures 2002Revenues: € 1.5 bnOrder book 12/02: € 3.3 bnHeadcount 12/02: 7,638

Key figures 2002Revenues: € 1.5 bnOrder book 12/02: € 3.3 bnHeadcount 12/02: 7,638

In-Service Support and Upgrades

Series Programs and Development

Sales Breakdown by Segments

Aerostructures52%

17%

31%

The current portfolio of the Military Aircraft Business Unit is well-balanced

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Toda

y

Aerostructures

Tier 1Commercial

A/CSupplier

IntegratedServices

TrainingServices

SupportServices

MilitaryAir Systems Integration

UnmannedCombat

A/V

TrainerA/C

MannedCombat

A/C

MissionA/C

Expo

rtB

usin

ess

Acqu

isiti

on

Military Aircraft Business

A32X Family

A330/340Eurofighter

MRO (e.g. Tornado,F-4, F-5, F/A-18, MiG-29, AV-

8B, C-160, C-130, P-3,BR1150, E-3A AWACS, …)

Logistics

Mid

-term

Long

-term

The Military Aircraft business stands on a stable baseand offers many opportunities for growth and expansion

A400MA380*

MPA-RA400M

(systems)ETAP Mako

Eurofighter ASTA*Ground Crew Training

Eurofighter SUZ*Tornado SUZ

Future Airbus Products UCAV

EurotrainingOutsourcing Opportunities

(Cooperative Models)

Multi-mission

A/C

* already contracted


Business Overview

Current Programs


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Eurofighter – Setting 21st Century Standards

The Eurofighter is the most modern combat aircraft on the market

� Air Dominance: A survivable, multi-role weapon system withreach and lethality, assuring dominance against all air threats

� Affordability: The combination of low per-unit cost, low lifecycle cost and high fleet efficiency makes the Eurofighterbenchmark in its class

� Availability: The areas of reliability, maintainability and testability have been given equal priority to performance, cost and flight safety

� Growth Potential: Continuous development with full customer involvement to maintain dominance as threats evolve over the entire life of the weapon system

� Customer Confidence: The largest current production program (620 aircraft) with a proven high level of technological maturity


(Role Optimisation)

Production of 620 Aircraft (Frame Contract)

Tranche 1 148 Aircraft



Development

1988 2000 2005 201520101998 1999 2006 2007 2008 20092001 2002 2003 2004 2011 2012 2013 2014

1988 2000 2005 201520101998 1999 2006 2007 2008 20092001 2002 2003 2004 2011 2012 2013 2014

(Air-to-Air)

(Air-to-Air and Air-to-Ground)

Integrated Logistic Support

Operation

Entry into Service Clearance Final Operational Clearance

Eurofighter – Program Overview

Eurofighter will secure profitable business well beyond the decade to come

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Eurofighter – Market Opportunities

Home Market:� Umbrella contract for 620 series

production aircraft (plus 90 options)signed

� Series production aircraft haveperformed first flights in all fournations

� First aircraft transferred to GermanAir Force to begin with ground crewtraining

Export Market:Austria: Contract negotiation ongoingGreece: Contract initialled in 2001

(Greek PM confirmed procurement decision)SingaporeNorway (dual track)

Production Workshare:EADS43%

BAE Systems37.5%

Alenia19.5%

Sustained profitable growth is secured through the already contracted 620 aircraft and export customer commitments


Business Overview

Current Programs


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Mako

The Mako concept fully meets the future training aircraft requirements and will be the right product at the right point in time

� Present training fleets are no longer adequate for modern fighter aircraft training

� The Mako Advanced Trainer is one of the preferred solutions for Eurotraining

� Benefits are increased cost effectiveness and performance

� The Mako Family (Advanced Trainer together with a Light Combat variant) will be an attractive product in the market for new aircraft of this class


Eurotraining

Full training services are an attractive and stable field of future business

� Aim: One common European training organisation for jet pilots, having 2 or 3 closely networked local training centers operated and fully supported by industry

� Planned to be fully operational in 2012

� Contracted one-year feasibility study started December 2002

Advanced European Jet Pilot Training (AEJPT)

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MPA-R

MPA-R offers EADS the opportunity to leverage on the experienceand recognition to place itself as a fully recognized and accepted

multi-mission aircraft prime

� Total 24 aircraft required (GE 10; IT 14)

� MPA320: State-of-the art modern concept, designed by EADS M (based on A320) is the leading edge for the next generation MPA

� Main competition:Lockheed Martin, L-3and Boeing

� Selection of winning conceptexpected 2003

The German/Italian requirement for a next-generation Maritime Patrol Aircraft (MPA)

Modern Cockpit

Effective Stores Management

Dynamic Flight &Mission Simulator

Maritime AirOperations Center

Integrated Logistic Support

Efficient Aircraft

Transportable AirOperations Center

ModernMissionSystem

Off-the-shelfhigh performance

sensors


� MoU signed in November 2001 and to last beyond 2010

� Industrial lead by each nation’s combat air system company (Dassault, EADS Ge & Sp, Alenia, Saab, BAESystems)

� Goal: Not to develop specific manned or unmanned aircraft or missiles, but rather to work on technologies, that could be used in all kind of possible existing & future equipment leading to a full development of a 5th

Generation Combat Air System (probably unmanned) with entry intoservice around 2018/2020

� Initial steps are Technology Development Programs & Vehicles between 2002 and 2011

European Technology Acquisition Programme (ETAP)

ETAP is the basis for a future jointEuropean 5th Generation Combat Air System

Six European nation (Fr, Ge, It, Sw, Sp, UK) technology and demonstration program

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Integrated Services

The continuous expansion of the service portfolio will secure profitable growth in the in-service support business

� MRO/Upgrades(e.g. Eurofighter and Tornado SUZ)

� Services(e.g. Logistic Information Aircraft Service System)

� Training(e.g. Eurofighter ASTA)

Trends� Outsourcing of armed forces non-core tasks to industry

� Co-operative models: Performance by air force / industry personnel in a collocated organisation under industrial leadership

� Total support packages: Provision of all services in the industry, including operation, logistics and training

EADS M is the complete military aircraft service provider for national Air Forces in Germany and Spain


Military Aircraft stands on a stable business base

� Contracted Eurofighter Core Program plus export opportunities

� Full life cycle service provider

� Eurotraining and Mako

� Unmanned Combat Aerial Vehicles (UCAV)

� Integrated Services

Conclusions

Military Aircraft – A European Air Systems Leader

Additional value will be created through the broad range of future business opportunities

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Thank you for your attention

8 rauen - military aircraft-global inv forum final 2.ppt ... · global investor forum 2003 ... low...

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