16 Sep 14. Airbus Defence and Space continues transformation with portfolio optimisation:
*Activities in Space (Launchers and satellites), Military Aircraft, Missiles and related Systems and Services are core and to be strengthened
*Businesses in non-core segments will be divested
*Reinforce Airbus Defence and Space as a sustainable and successful pillar of Airbus Group
After a detailed and comprehensive portfolio assessment, Airbus Defence and Space has defined Space (Launchers & Satellites), Military Aircraft, Missiles and related Systems and Services as its future core businesses. These are the areas in which the Division will further invest to strengthen its leading position. Some business areas are identified as divestment candidates as they do not fit the strategic goals and for which the company sees possibilities to increase their development potential in different set-ups. This concerns, first of all, our commercial and para-public communication business (including Professional Mobile Radio and commercial satellite communications services activities), which will have better chances for growth and market success in different ownership structures. Airbus Defence and Space further intends to sell some of its subsidiaries and participations, including Fairchild Controls, Rostock System-Technik, AvDef, ESG and Atlas Elektronik. For the Division’s Security and Defence Electronics businesses further industrial alternatives will be explored in order to best develop and position these businesses for future growth and value creation. “The portfolio decisions for Airbus Defence and Space are the logical follow-up to our Group Strategy Review in 2013. They will foster the strengths of the division and, hence, will result in an even stronger focus on our Group’s core activities, aeronautics and space,” said Tom Enders, CEO of Airbus Group. “Given the tight budgetary situation in our home countries and increasing competition on global markets, the portfolio review is an essential element to further develop our defence and space business and to ensure its competitiveness”, said Bernhard Gerwert, CEO of Airbus Defence and Space. “We have identified those segments where this is an achievable target and those where we should explore alternative options. In short, the portfolio review is a logical next step in the overall transformation process. It will strengthen Airbus Defence and Space’s business core, unlocking its full potential to drive the defence and space industry forwards, particularly on critically important international growth markets. All these decisions will of course respect our national security agreements and will be discussed with employee representatives in a fair and open way”, added Bernhard Gerwert. The first milestone of the Division’s transformation, as announced last year, was the reorganisation of the three former business entities – Astrium, Airbus Military and Cassidian – into one single organisation. This target was achieved on 1 July 2014, according to plan. A next significant milestone was to secure the future of the Division’s space launcher business, which received a major boost through the planned joint venture with Safran, as announced in June 2014, and which is currently being further developed.
Howard Wheeldon Comment: Continuing to implement the review of strategy announced in December 2013 confirmation that Airbus Defence and Space division plans to dispose of its communications business plus other subsidiaries and stakes in order to further streamline the operation is a sensible consolidation move. Out will go commercial and para-public communications, professional mobile radio and commercial satellite communications services. Space is a crowded business area these days but it is also one in which there has been an industry and government reluctance to invest and spend. Nevertheless, looking further out, there remains excellent potential for military satellite renewal, an area in whic