In past years, EADS often stood out as a company constrained by its own complexities against a background of global growth; today, in times of worldwide volatility and threats posed by recession, it is the Company’s resilience and economic stability that stand out. We have what it takes to envisage our long-term future with confidence.

Record deliveries contributed to last year’s top and bottom line growth. Revenues rose to € 43.3 billion, the Group’s net income totalled more than € 1.5 billion. Nobody should be misled by our good 2008 results, though. Our customers, our own commercial businesses and the entire upstream value chain are suffering in the current economic downturn. Yet, we are committed to facing and shouldering the negative effects together with our suppliers, as far as possible.

The aircraft business has always been cyclical, which is why we are organised to deal with cycles; and this is also the reason why EADS’ Vision 2020 aims to increase the less cyclical defence, space and services business. Vision 2020’s validity has been underscored by today’s economic challenges, and tangible progress has been made in 2008, for example, by carving out major aerostructure activities and acquiring PlantCML in the United States. Vision 2020 is a vision at work. This holds true, even if the crisis may force us to give priority to organic growth, as we have prioritised the preservation of our robust balance sheet over capturing external growth opportunities.

While we maintain our course towards future goals, backed by an order book now worth some € 400 billion, we are diligently managing the present. We are continuously monitoring the market, our customers and suppliers, and have decided to adjust Airbus production rates as a preventive measure. Our solid backlog in defence and institutional activities provides some protection and stability.

The difficulties encountered in the A400M military transport programme have called for decisive measures. We are conscious of the implications the delay creates for customers, particularly those with demanding operations. We are committed to their requirements and also convinced that the programme’s challenges can only be resolved through cooperation.

To improve our programme management efficiency, we have integrated the Military Transport Aircraft Division into Airbus. This is an important step within our “Future EADS” integration programme. The recently launched initiative is creating a leaner organisation, building on the transformation drive initiated two years ago to strengthen profitability and organisational effectiveness.

Within the framework of Power8, more than half of the targeted savings of € 2.1 billion by 2010 have already been confirmed. Additionally, we have launched Power8 Plus, targeting € 1 billion savings in 2012 at Group level. I believe that what we have learned in redesigning our Company in the past years will help us to weather the current downturn and to forge a more integrated, more efficient, more effective EADS. We are better prepared than ever to face the challenges of the next few years.

Our Group is – and has been since its creation – geared towards crafting a long-term perspective of global competitiveness, employment, and technological leadership. That is why our ambitious R&D investment level is growing, despite the crisis. We are preparing for the future with prudence, but mindful of the overarching responsibility this Company has for providing mobility, advancing security, fostering sustainability and achieving technological breakthroughs. I look beyond the current crisis with confidence. And because EADS is now more resilient and more efficient, the crisis could be an opportunity to become even stronger. I believe in what this Company, its management and employees can achieve. EADS, for all these reasons, is a valuable enterprise.

Louis Gallois
Chief Executive Officer