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 31st December 2007
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|
(in €m) |
Airbus |
Military Transport Aircraft |
Euro- |
Defence & Security |
Astrium |
Other Busi- |
HQ / |
Conso- | ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Total revenues |
25,216 |
1,140 |
4,172 |
5,465 |
3,550 |
1,269 |
18 |
40,830 | ||||
|
Internal revenues |
(526) |
(193) |
(146) |
(522) |
(12) |
(308) |
0 |
(1,707) | ||||
|
Revenues |
24,690 |
947 |
4,026 |
4,943 |
3,538 |
961 |
18 |
39,123 | ||||
|
Segment result |
(904) |
(156) |
210 |
307 |
165 |
94 |
41 |
(243) | ||||
|
thereof impairment charge for intangible assets and property, plant and equipment |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 | ||||
|
thereof additions to other provisions (see Note 22c) |
(3,084) |
(27) |
(325) |
(622) |
(103) |
(56) |
(226) |
(4,443) | ||||
|
Share of profit from associates accounted for under the equity method |
0 |
0 |
0 |
11 |
5 |
0 |
194 |
210 | ||||
|
Profit (loss) before finance costs and income taxes |
(904) |
(156) |
210 |
318 |
170 |
94 |
235 |
(33) | ||||
|
Disposal of goodwill |
0 |
0 |
0 |
12 |
0 |
0 |
0 |
12 | ||||
|
Exceptional depreciation/disposal |
23 |
1 |
1 |
10 |
4 |
0 |
34 |
73 | ||||
|
EBIT* pre-goodwill impairment and exceptionals (see definition in Note 5c) |
(881) |
(155) |
211 |
340 |
174 |
94 |
269 |
52 | ||||
|
Total finance costs |
|
|
|
|
|
|
|
(737) | ||||
|
Income tax benefit |
|
|
|
|
|
|
|
333 | ||||
|
Loss for the period |
|
|
|
|
|
|
|
(437) | ||||
|
Attributable to: |
|
|
|
|
|
|
|
| ||||
|
Equity holders of the parent (Net loss) |
|
|
|
|
|
|
|
(446) | ||||
|
Minority interests |
|
|
|
|
|
|
|
9 | ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Other Information |
|
|
|
|
|
|
|
| ||||
|
Identifiable segment assets (incl. goodwill)(1) |
34,162 |
2,523 |
5,281 |
9,463 |
6,059 |
1,055 |
(243) |
58,300 | ||||
|
thereof goodwill |
6,374 |
12 |
111 |
2,431 |
574 |
0 |
17 |
9,519 | ||||
|
Investments in associates |
0 |
0 |
3 |
89 |
15 |
9 |
2,122 |
2,238 | ||||
|
Segment liabilities(2) |
27,189 |
2,213 |
4,383 |
10,015 |
6,037 |
946 |
(584) |
50,199 | ||||
|
thereof provisions |
6,642 |
40 |
1,079 |
2,919 |
688 |
233 |
832 |
12,433 | ||||
|
Capital expenditures (incl. leased assets) |
946 |
102 |
206 |
233 |
446 |
57 |
68 |
2,058 | ||||
|
Depreciation, amortisation |
1,238 |
28 |
76 |
140 |
166 |
42 |
82 |
1,772 | ||||
|
Research and development expenses |
2,175 |
16 |
93 |
169 |
78 |
8 |
69 |
2,608 | ||||
b) Business Segment Information for the year ended 31st December 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 | ||||||||
|
Segment result |
(602) |
71 |
257 |
270 |
122 |
(288) |
296 |
126 | ||||||||
|
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 22c) |
(2,479) |
(2) |
(267) |
(549) |
(83) |
(178) |
227 |
(3,331) | ||||||||
|
Share of profit from associates accounted for under the equity method |
0 |
0 |
0 |
17 |
5 |
0 |
130 |
152 | ||||||||
|
Profit (loss) before finance costs and income taxes |
(602) |
71 |
257 |
287 |
127 |
(288) |
426 |
278 | ||||||||
|
Subsequent adjustment to goodwill |
0 |
0 |
0 |
52 |
0 |
0 |
12 |
64 | ||||||||
|
Exceptional depreciation |
30 |
4 |
0 |
9 |
3 |
0 |
11 |
57 | ||||||||
|
EBIT* pre-goodwill impairment and exceptionals (see definition in Note 5c) |
(572) |
75 |
257 |
348 |
130 |
(288) |
449 |
399 | ||||||||
|
Total finance costs |
|
|
|
|
|
|
|
(244) | ||||||||
|
Income tax benefit |
|
|
|
|
|
|
|
81 | ||||||||
|
Profit for the period |
|
|
|
|
|
|
|
115 | ||||||||
|
Attributable to: |
|
|
|
|
|
|
|
| ||||||||
|
Equity holders of the parent (Net income) |
|
|
|
|
|
|
|
99 | ||||||||
|
Minority interests |
|
|
|
|
|
|
|
16 | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Other Information |
|
|
|
|
|
|
|
| ||||||||
|
Identifiable segment assets (incl. goodwill)(1) |
33,958 |
1,716 |
4,593 |
9,591 |
5,488 |
1,168 |
490 |
57,004 | ||||||||
|
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 |
6,124 |
13 |
1,069 |
3,223 |
899 |
300 |
835 |
12,463 | ||||||||
|
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 | ||||||||
The “EBIT* pre-goodwill impairment and exceptionals” in 2006 includes on HQ/Conso. level the elimination of an addition to the provision for loss making contracts (€352 million) recognised in the Airbus division in order to account for the positive margin of the A400M contract on EADS group level. Due to the cost increase of the contract, a negative catch-up in the amount of €(66) million had to be recognised on group level to adjust previously accounted for EBIT* for the years 2003 to 2006.
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 programme 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 €9 million in 2007 and €64 million in 2006; 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) |
2007 |
2006 |
2005 |
|
|
|
|
|
|
Profit (loss) before finance costs and income taxes |
(33) |
278 |
2,712 |
|
Disposal of goodwill/subsequent adjustment to goodwill (see Note 4 c) |
12 |
64 |
0 |
|
Exceptional depreciation/disposal (fixed assets) |
73 |
57 |
136 |
|
Exceptional depreciation (others) |
0 |
0 |
4 |
|
EBIT* pre-goodwill impairment and exceptionals |
52 |
399 |
2,852 |
d) Revenues by Destination
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(in €m) |
2007 |
2006 |
2005 |
|
|
|
|
|
|
Germany |
4,332 |
4,126 |
3,235 |
|
France |
3,450 |
4,271 |
3,511 |
|
United Kingdom |
1,991 |
2,953 |
2,682 |
|
Spain |
1,173 |
1,361 |
1,017 |
|
Other European Countries |
6,436 |
4,465 |
3,126 |
|
North America |
7,923 |
9,425 |
9,026 |
|
Asia/Pacific |
8,826 |
7,857 |
7,734 |
|
Middle East |
2,507 |
3,334 |
1,860 |
|
Latin America |
2,054 |
1,213 |
645 |
|
Other Countries |
431 |
429 |
1,370 |
|
Consolidated |
39,123 |
39,434 |
34,206 |
Revenues are allocated to geographical areas based on the location of the customer.
e) Capital Expenditures
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(in €m) |
2007 |
2006 |
2005 |
|
|
|
|
|
|
France |
819 |
968 |
946 |
|
Germany |
477 |
789 |
962 |
|
United Kingdom |
512 |
715 |
707 |
|
Spain |
161 |
187 |
150 |
|
Other Countries |
59 |
49 |
53 |
|
Capital expenditures excluding leased assets |
2,028 |
2,708 |
2,818 |
|
Leased assets |
30 |
147 |
40 |
|
Capital expenditures |
2,058 |
2,855 |
2,858 |
f) Property, Plant and Equipment by Geographical Area
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(in €m) |
2007 |
2006 |
2005 |
|
|
|
|
|
|
Germany |
3,715 |
3,909 |
3,852 |
|
France |
3,908 |
3,548 |
3,140 |
|
United Kingdom |
3,028 |
3,177 |
2,682 |
|
Spain |
976 |
937 |
901 |
|
Other Countries |
447 |
615 |
857 |
|
Property, plant and equipment by geographical area |
12,074 |
12,186 |
11,432 |
Property, plant and equipment split by geographical area excludes leased assets (2007: €1,319 million, 2006: €1,992 million and 2005: €2,385 million).
