Developing a blueprint for action

Following the initiative of CEO Louis Gallois, EADS has formulated a strategic vision, which has been presented to the Board of Directors. Called Vision 2020, this blueprint for EADS’ future articulates how it should grow, become more profitable and change in shape over the coming years. Not all elements of Vision 2020 are new, but it creates a framework for decision-making for the years until 2020 and sets out a series of medium-term goals that will drive concrete action from now on.

When formulating the vision, the views of management across EADS were taken into account. Consequently, it not only reflects the views of the Executive Committee but also those of the top executive team and senior management within the Divisions.

To transform this Vision into reality, Louis Gallois, Chief Executive Officer, tasked the EADS Top 200 (top executive team) with making concrete implementation roadmaps. These will support the establishment of building blocks for a group-wide action plan, which will be closely monitored by our Marketing and Strategy Organisation.

2020 strategic goals

The core of Vision 2020 is a better balanced EADS.

Therefore, we aim to achieve:

• A better balance between Airbus and our other activities.
  We at EADS are extremely proud of Airbus and its position as a world leader in its market. But commercial aircraft being a cyclical and extremely capital intensive business, we have to increase the share of EADS’ other Divisions in our revenues, in order to gain more stability and become less dependent on the evolution of the U.S. dollar. Commercial aircraft now represents 65% of the Group’s activities. Our goal is to reach a 50/50 balance, through organic growth, partnerships and acquisitions.
• A better balance between platforms and services.
  Delivering advanced platforms and systems has long been EADS’ main focus. Yet, there is also a huge growth potential in related services. Relying on our strong customer base, we are in a position to develop high-value services, which are a counter-cyclical and highly profitable activity. Our target is to achieve a 25% service share – against 10% – of business by 2020 (hence revenues at € 20 billion).
• A better balance between our European roots and our global footprint.
  EADS is mainly based in Europe, but our playing field is the world. To gain access to new markets, technology resources and low-cost, dollar-based sourcing, we need to expand our footprint and our partnerships throughout the world, especially in the United States and Asia. We aim to become a truly global industrial company, with 20% of our employees and 40% of our sourcing outside Europe.

Furthermore, EADS is facing two major challenges:

• Regaining profitability. This remains the Group’s highest priority: our goal is to recover a substantial margin by achieving best-in-class operational and financial efficiency. EADS will also put the emphasis on capital efficiency and focus on core businesses to lighten its balance sheet.
• Moving towards an eco-efficient enterprise. Environmental issues are to become a transversal driver towards sustainable development. We at EADS are determined to demonstrate our responsible attitude and to make eco-efficiency a competitive advantage.

Aligning resources with priorities

In addition to financial means, reaching the targets in Vision 2020 will require significant technological and organisational resources.

EADS will continue to deliver the best of European technology to serve its customers’ needs for mobility and security. EADS is already strengthening Group technology synergies. The Group will maintain, and where necessary increase, research efforts in areas such as eco-efficiency, while securing higher private and public research support.

People and competency management will be tailored to EADS’ new priorities. Management development will concentrate on getting the right person for the right position, while encouraging greater mobility, international diversity and integration. Maintaining and developing strategic competencies will be a priority.

Finally, EADS will become leaner, more integrated, fully transparent and more efficient.