Slide 1: Safe Harbor Statement
Safe Harbor Statement Certain of the statements contained in this document are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management‘s beliefs. These statements reflect the Company‘s views and assumptions as of the dat
Slide 2: Content; EADS Share Price Since IPO
Content 1. Group Overview 2. Operating Performance by Division 3. Financials 4. Outlook EADS Share Price Since IPO (10.07.2000 - 31.12.2002) 180 2000 2001 2002 160 140 120 100 80 60 40 20 M il M il Ju y ay De v ly De v ly De v Se g Se g Se g ne ne Fe n Fe . A u0 Ot Ja . Ot Ot No t ct ct M br M br Ap
Slide 3: Meeting the Economic Challenge
Meeting the Economic Challenge •Performance and cash targets met •Book to bill greater than 1, strong order book … with strong financial discipline •prudence for continued market uncertainty Business Highlights in 2002 Airbus: - 303 delivered aircraft; 54% market share in orders - Cash preserved and
Slide 4: Major Milestones; 2002 Financial Overview
Major Milestones Defence growth - EADS, Northrop, Thales and Finmeccanica teamed for NATO AGS - Northrop’s Global Hawk flies with EADS payload (Euro Hawk) - Full control of Paradigm (secure telecommunication for British MoD) - MBDA and Thales improve cooperation in missile seekers Global reach - Ral
Slide 5: EBIT Contributors
EBIT Contributors EBIT* 2002 in € m Airbus 1,361 ¾ Lower deliveries, higher R&D Aeronautics 261 ¾ Commercial aviation downturn HQ Consolidation** 112 ¾ HQ cost savings DCS 40 ¾ Turnaround thanks to restructuring (80) MTA ¾ One-time depreciation charge (268) Space ¾ Cancellation, technical issues, (3
Slide 6: Airbus and Military Transport Aircraft
Airbus €m 2002 2001 EBIT margin before R&D up, Deliveries (in units) 303 325 resists deliveries decrease Revenues 19,512 20,549 Absorption of market changes R&D self-financed 1,682 1,425** through production flexibility in % of revenues 8.6% 6.9% Gross order intake of 300 a/c EBIT* 1,361 1,655
Slide 7: Aeronautics and Space
Aeronautics €m 2002 2001 Civil aviation downturn and R&D increase impact EBIT Revenues 5,304 5,065 Eurocopter: R&D self-financed 150 132 4 367 a/c deliveries in % of revenues 2.8% 2.6% 4 No.1 worldwide in orders EBIT* 261 308 4 Partner in Deepwater in % of revenues 4.9% 6.1% programme Order book
Slide 8: Space Restructuring; Defence and Civil Systems
Space Restructuring Annual cost saving target by 2005 • Plan initiated in 2002 - Reorganisation of satellite BU in 3 prime and Sourcing 1 sub-systems divisions 29% - Headcount reduction of 1,600 people mostly in 2003 71% - Full set of actions : Make or Buy policy, Headcount strengthen expertise, syn
Slide 9: Profit & Loss Highlights
Content 1. Group Overview 2. Operating Performance by Division 3. Financials 4. Outlook Profit & Loss Highlights 2002 2001 in % of in % of € m Revenues €m Revenues Revenues 29,901 30,798 self-financed R&D 2,096 7.0% 1,841 ** 6.0% EBITDA 3,031 10.1% 3,213 10.4% EBIT* 1,426 4.8% 1,694 5.5% EBIT* befor
Slide 10: Successful Cash Management; Development of Net Cash
Successful Cash Management • Maintained strong net cash position at € 1.2 bn • Customer financing exposure significantly contained • Pre Delivery Payment flow limits working capital requirement • Strong Cash Flow from operations and working capital at € 2.7 bn 8.9% 8.6% 2002 • Positive Free Cash Flo
Slide 11: Q1 2003 key figures
Content 1. Group Overview 2. Operating Performance by Division 3. Financials 4. Outlook Q1 2003 key figures in € bn Q1 2003 Q1 2002 Revenues 5.5 6.4 EBIT* 0.1 0.3 FCF before cust. financing** (0.3) 0.4 New orders 5.4 3.8 March 2003 Dec. 2002 Net Cash position 0.5 1.2 Total Order-Book 162.7 168.3 * p
Slide 12: 2003 Guidance; EADS Delivers
2003 Guidance Prudent financial targets preserve our flexibility to respond to market changes • Based on 300 deliveries and the current $ rate (1€ = 1.10 $), we expect 2003 revenues in the same range as 2002. • We expect EBIT* 2003, in the same range as 2002. • We expect positive Free Cash Flow befo
Slide 13: Shareholders Information
Shareholders Information For questions or further information please call: France: 0 800 01 2001 Germany: 00 800 00 02 2002 Spain: 00 800 00 02 2002 E-mail: ir@eads.net To receive “Aero-Notes”, the letter to our shareholders, and other documents, visit our website at www.eads.net and go to Financial