Over the past year, the far-reaching governance decisions taken in 2007 have started to pay off. EADS has gained in focus, unity and efficiency. The 2008 financial results reflect not only the strength of our underlying business performance, but also the progress achieved in terms of accountability and strategic direction. All in all, it is fair to say that EADS has regained traction. On behalf of the entire Board of Directors, let me thank everyone who contributed to last year’s outstanding commercial successes and restored profitability.

Yet, although the results achieved in 2008 are very positive, they are now behind us and we need to address today’s challenges. The results show our resilience in the face of the macroeconomic uncertainties that characterise the present and will persist for some time. Difficult times call for prudent investment decisions as well as continuous efforts to increase operational efficiency. In this context, the Board of Directors is closely monitoring the development and execution of EADS’ key programmes. As always, the Board is committed to helping management improve EADS’ long-term value.

Notably, over the past year, the Group’s management has started to implement the Group-wide strategic roadmap called Vision 2020, launched by our Chief Executive Officer (CEO) Louis Gallois in late 2007. Today’s economic environment also underlines the importance of Airbus’ Power8 efficiency programme and the recently launched “Future EADS” integration and change project. The Board entirely supports our experienced CEO’s implementation of these timely initiatives and receives regular progress reports.

To sustain EADS’ global competitiveness and reinforce the Group’s high ethical and compliance standards, the Board has established a dedicated compliance organisation with responsibility for the entire Group. A Chief Compliance Officer has been nominated by the Board. As a key measure, he is introducing a system designed to alert him to compliance breaches. The Audit Committee is supervising his implementation of the EADS Compliance Programme.

The Board conducted a self-evaluation in 2008, which concluded that it is satisfied with its ability to co-operate and to fulfil its duties in the best interest of EADS. Playing to their respective strengths, all of the Directors have made vital contributions to analysing the effects of the economic turbulence and financial crisis. I am convinced that the Board’s wider set of skills and experience brings greater insight and enables us to consider situations from different perspectives.

While we share management’s conviction that EADS is poised to grow further and become a truly global industry leader, as envisaged in Vision 2020, the Board decided in 2008 to slow down the Company’s Mergers and Acquisitions (M&A) plans temporarily, insisting that cash conservation is more important at a time when future market visibility is low.

Prudence is currently of the utmost importance. Even so, the improved operational performance and the Group’s strong cash flow lifted earnings per share to € 1.95, enabling the Board to propose an increased dividend of € 0.20 to the Annual General Meeting. This recognises your loyalty while demonstrating our confidence in the Group’s medium-term solidity and long-term outlook. I am sure that EADS will master the enormous challenges ahead, thanks to our highly motivated employees and management.

Rüdiger Grube
Chairman of the Board

BODO UEBBER succeeded Rüdiger Grube as Chairman of the Board of Directors with effect as of 14 April 2009 when Mr Grube resigned due to his new responsibility as CEO of Deutsche Bahn.