The Defence & Security Systems Division (“DS” or the “DS Division”) was created in 2003 to serve as the main pillar of EADS’ defence and security activities. By combining EADS’ Missile Systems (EADS’ share in MBDA), Defence and Communications Systems (DCS), Defence Electronics (DE), Military Air Systems (MAS) (and EADS’ share of the Eurofighter programme), as well as services activities within one division, EADS has focused its defence business to better meet the needs of customers requiring integrated defence and security solutions.

In its second full year of operation, the DS Division succeeded in expanding its cash flow and maintaining its EBIT* level over €200 million, mostly due to higher revenues driven by Eurofighter deliveries and MBDA programmes while investing significantly further in UAV programmes, further streamlining businesses and improving capabilities in Large Systems Integration (“LSI”). An additional external growth potential will be achieved through acquisitions in the naval and professional mobile radio businesses. DS’ portfolio of innovative products and integrated solutions that cover electronics, missiles, platforms, systems and services, is designed to meet growing and changing requirements for all military and security needs. DS intends to continue the process of strengthening its LSI role in EADS’ Systems and Solutions provider concept by increasing its focus on core businesses and fostering further efficiencies and adaptations. Through these measures, the DS Division expects to contribute to EADS’ overall objective of raising the percentage of revenues derived from defence from 25% to 30% over the next five years.

System Design Centre (SDC)

The System Design Centre supports defence and security customers in Concept Development and Experimentation (CD&E) with Modelling and Simulation (M&S) in a synthetic environment, providing system architecture design framework and relevant competencies to the DS BUs and the overall EADS Group. The SDC is installed in France, Germany and the U.K. and provides a transnational networked experimentation and test environment through its Network Centric Operations Simulations Centres (NetCOS). By applying standardised methods and tools, the DS Division’s LSI strategy is put on a solid and interoperable basis.

On a consolidated basis, the DS Division generated revenues of €5.6 billion for 2005, representing 16% of EADS’ total revenues.