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The Group operates in five divisions (segments) which reflect the internal organisational and management structure according to the nature of the products and services provided.
- Airbus — Development, manufacturing, marketing and sale of commercial jet aircraft of more than 100 seats and the development and manufacturing of aircraft for military use.
- Military Transport Aircraft — Development, manufacturing, marketing and sale of military transport aircraft and special mission aircraft.
- Eurocopter — Development, manufacturing, marketing and sale of civil and military helicopters and maintenance services.
- Defence & Security — Development, manufacturing, marketing and sale of missiles systems; military combat and training aircraft; provision of defence electronics, defence-related telecommunications solutions; and logistics, training, testing, engineering and other related services.
- Astrium — Development, manufacturing, marketing and sale of satellites, orbital infrastructures and launchers; and provision of space services.
The following tables present information with respect to the Group’s business segments. Consolidation effects, the holding function of EADS Headquarters and other activities not allocable to the divisions are disclosed in the column “HQ / Conso.”. “Other Businesses” comprises the development, manufacturing, marketing and sale of regional turboprop aircraft and light commercial aircraft, aircraft components as well as civil and military aircraft conversion and maintenance services.
a) Business Segment Information for the year ended December 31st, 2006
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|
(in €m) |
Airbus |
Military Transport Aircraft |
Euro- |
Defence & Security |
Astrium |
Other Busi- |
HQ / |
Conso- |
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
25,190 |
2,200 |
3,803 |
5,864 |
3,212 |
1,257 |
30 |
41,556 |
|
Internal revenues |
(820) |
(226) |
(155) |
(557) |
(10) |
(336) |
(18) |
(2,122) |
|
Revenues |
24,370 |
1,974 |
3,648 |
5,307 |
3,202 |
921 |
12 |
39,434 |
|
Income from associates |
0 |
0 |
0 |
17 |
5 |
0 |
130 |
152 |
|
|
(572) |
75 |
257 |
348 |
130 |
(288) |
449 |
399 |
|
thereof impairment charge for intangible assets and property, plant and equipment |
(148)(4) |
0 |
0 |
0 |
0 |
(45)(2) |
0 |
(193) |
|
thereof additions to other provisions (see Note 21d) |
(2,479) |
(2) |
(267) |
(549) |
(83) |
(178) |
227 |
(3,331) |
|
Exceptionals |
|
|
|
|
|
|
|
(121) |
|
Total finance costs |
|
|
|
|
|
|
|
(244) |
|
Income tax benefit |
|
|
|
|
|
|
|
81 |
|
Profit for the period |
|
|
|
|
|
|
|
115 |
|
Attributable to: |
|
|
|
|
|
|
|
|
|
Equity holders of the parent (Net income) |
|
|
|
|
|
|
|
99 |
|
Minority interest |
|
|
|
|
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
Other information |
|
|
|
|
|
|
|
|
|
Identifiable segment assets (incl. goodwill)(1) |
33,958 |
1,716 |
4,595 |
9,679 |
5,498 |
1,178 |
2,475 |
59,099 |
|
thereof goodwill |
6,374 |
12 |
111 |
2,476 |
575 |
0 |
17 |
9,565 |
|
Investments in associates |
0 |
0 |
2 |
88 |
10 |
10 |
1,985 |
2,095 |
|
Segment liabilities(3) |
24,096 |
1,515 |
3,847 |
10,398 |
4,563 |
1,095 |
91 |
45,605 |
|
thereof provisions (see Note 21) |
6,272 |
13 |
1,070 |
3,224 |
936 |
300 |
879 |
12,694 |
|
Capital expenditures (incl. leased assets) |
1,750 |
121 |
110 |
214 |
462 |
68 |
130 |
2,855 |
|
Depreciation, amortisation |
1,140 |
30 |
74 |
131 |
126 |
88 |
102 |
1,691 |
|
Research and development expenses |
2,035 |
13 |
78 |
195 |
71 |
6 |
60 |
2,458 |
EBIT|
(1) |
Segment assets exclude current and deferred tax assets as well as cash and cash equivalents and securities. |
|
(2) |
Impairment charges relate to Sogerma. |
|
(3) |
Segment liabilities exclude current and deferred tax liabilities and interest bearing liabilities. |
|
(4) |
Impairment charge relates mainly to the A380 program. |
The “EBIT pre-goodwill impairment and exceptionals” includes on HQ/Conso. level the elimination of an addition to the provision for loss making contracts (352 M €) recognised in the Airbus division in order to account for the positive margin of the A 400M contract on EADS group level. Due to the cost increase of the contract, a negative catch-up in the amount of (66) M € had to be recognised on group level to adjust previously accounted for EBIT for the years 2003 to 2006.
b) Business Segment Information for the year ended December 31st, 2005
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|
(in €m) |
Airbus |
Military Transport Aircraft |
Euro- |
Defence & Security |
Astrium |
Other Busi- |
HQ / |
Conso- |
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
22,179 |
763 |
3,211 |
5,636 |
2,698 |
1,155 |
33 |
35,675 |
|
Internal revenues |
(238) |
(234) |
(134) |
(509) |
(10) |
(329) |
(15) |
(1,469) |
|
Revenues |
21,941 |
529 |
3,077 |
5,127 |
2,688 |
826 |
18 |
34,206 |
|
Income from associates |
0 |
0 |
0 |
4 |
0 |
0 |
206 |
210 |
|
|
2,307 |
48 |
212 |
201 |
58 |
(171) |
197 |
2,852 |
|
Exceptionals |
|
|
|
|
|
|
|
(140) |
|
Total finance costs |
|
|
|
|
|
|
|
(177) |
|
Income tax charge |
|
|
|
|
|
|
|
(825) |
|
Profit for the period |
|
|
|
|
|
|
|
1,710 |
|
Attributable to: |
|
|
|
|
|
|
|
|
|
Equity holders of the parent (Net income) |
|
|
|
|
|
|
|
1,676 |
|
Minority interest |
|
|
|
|
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
Other information |
|
|
|
|
|
|
|
|
|
Identifiable segment assets (incl. goodwill)(1) |
33,226 |
1,642 |
4,076 |
9,287 |
4,911 |
1,320 |
2,543 |
57,005 |
|
thereof goodwill |
6,987 |
12 |
111 |
2,469 |
559 |
0 |
29 |
10,167 |
|
Investments in associates |
0 |
0 |
0 |
31 |
0 |
10 |
1,867 |
1,908 |
|
Segment liabilities(2)(3) |
20,553 |
1,581 |
3,209 |
10,218 |
4,512 |
989 |
4,094 |
45,156 |
|
thereof provisions and employee benefit liabilities(3) |
4,205 |
14 |
927 |
3,031 |
1,006 |
247 |
1,294 |
10,724 |
|
Capital expenditures (incl. leased assets) |
1,864 |
93 |
79 |
205 |
467 |
64 |
86 |
2,858 |
|
Depreciation, amortisation |
1,131 |
41 |
68 |
146 |
117 |
55 |
95 |
1,653 |
|
Research and development expenses |
1,659 |
18 |
70 |
207 |
58 |
6 |
57 |
2,075 |
|
(1) |
Segment assets exclude current and deferred tax assets as well as cash and cash equivalents and securities. |
|
(2) |
Segment liabilities exclude current and deferred tax liabilities and interest bearing liabilities. |
|
(3) |
For the retrospective application in the amount of 1,118 M € due to the revised IAS 19 “Employee Benefits” please refer to Note 2 “Changes in accounting policies”. |
As a rule, inter-segment transfers are carried out on an arm´s length basis. Inter-segment sales predominantly take place between Eurocopter, Defence & Security and Airbus; as the Eurocopter and Defence & Security divisions act as suppliers for Airbus aircraft. Moreover, Airbus acts as a main supplier for the A400M program which is led by the Military Transport Aircraft division.
Capital expenditures represent the additions to property, plant and equipment and to intangible assets (excluding additions to goodwill of 64 M € in 2006 and 168 M € in 2005; for further details see Note 5e) “Capital expenditures”).
c) EBIT pre-goodwill impairment and exceptionals
EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to such items as depreciation expenses of fair value adjustments relating to the EADS merger, the Airbus Combination and the formation of MBDA, as well as impairment charges thereon. EBIT pre-goodwill impairment and exceptionals is treated by management as a key indicator to measure the segments’ economic performances.
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|
(in €m) |
2006 |
2005 |
2004 |
|
|
|
|
|
|
Profit before finance costs and income tax |
278 |
2,712 |
2,215 |
|
Subsequent adjustment of goodwill (see Note 4 c.) |
64 |
0 |
0 |
|
Exceptional depreciation (fixed assets) |
57 |
136 |
212 |
|
Exceptional depreciation (others) |
0 |
4 |
5 |
|
EBIT pre-goodwill impairment and exceptionals |
399 |
2,852 |
2,432 |
d) Revenues by destination
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|
(in €m) |
2006 |
2005 |
2004 |
|
|
|
|
|
|
France |
4,271 |
3,511 |
3,326 |
|
Germany |
4,126 |
3,235 |
4,322 |
|
United Kingdom |
2,953 |
2,682 |
2,653 |
|
Spain |
1,361 |
1,017 |
1,253 |
|
Other European Countries |
4,465 |
3,126 |
2,974 |
|
North America |
9,425 |
9,026 |
8,715 |
|
Asia/Pacific |
7,857 |
7,734 |
4,938 |
|
Middle East |
3,334 |
1,860 |
2,286 |
|
Latin America |
1,213 |
645 |
505 |
|
Other Countries |
429 |
1,370 |
789 |
|
Consolidated |
39,434 |
34,206 |
31,761 |
Revenues are allocated to geographical areas based on the location of the customer.
e) Capital expenditures
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|
(in €m) |
2006 |
2005 |
|
|
|
|
|
France |
968 |
946 |
|
Germany |
789 |
962 |
|
United Kingdom |
715 |
707 |
|
Spain |
187 |
150 |
|
Other Countries |
49 |
53 |
|
Capital expenditures excluding leased assets |
2,708 |
2,818 |
|
Leased assets |
147 |
40 |
|
Capital expenditures |
2,855 |
2,858 |
f) Property, plant and equipment by geographical area
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|
(in €m) |
2006 |
2005 |
|
|
|
|
|
Germany |
3,909 |
3,852 |
|
France |
3,548 |
3,140 |
|
United Kingdom |
3,177 |
2,682 |
|
Spain |
937 |
901 |
|
Other Countries |
615 |
857 |
|
Property, plant and equipment by geographical area |
12,186 |
11,432 |
Property, plant and equipment split by geographical area excludes leased assets (2006: 1,992 M € and 2005: 2,385 M €).
