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EADS DEFENCE & SECURITY – GOING GLOBAL

EADS DEFENCE & SECURITY – GOING GLOBAL
By Julian Nettlefold, Editor, BATTLESPACE

BATTLESPACE meets Dr. Stefan Zoller, CEO EADS Defence & Security

BATTLESPACE travelled to Munich to interview Stefan Zoller about future plans for his Defence & Security segment.

In September 2003 Stefan Zoller gave BATTLESPACE a detailed description of the major reorganisation which had taken place to split the EADS Division Defence & Security into three separate business units, Defence Electronics, Defence and Communications Systems and Military Air Systems

He announced the formation of a new EADS Defence & Security Systems House to meet the growing needs of the Network Enabled Warfare Community in Europe. He said that given EADS’ wide customer base in Europe and the rest of the world, the company was well placed to meet the demands of the defence community in Europe whose NEC capability was lagging far behind the US and the UK. part of this development was the establishment of a number of networked NetCOS Synthetic Environment laboratories linking EADS plants across the world.

The new segment Defence and Communications Systems, which would have sales of €1.2bn and approximately 5500 employees, has required a considerable investment from the parent to install the required simulation and advanced electronic equipment required to meet the demands of its new customer base.

“Have you achieved those 2003 aims?” The Editor asked.

“2007 was our best year to date,” Zoller said. “We have achieved the planned site and workforce rationalisations at the same time as increasing profitability by enhanced operational performance. At first sight, the figures look distorted. But with regard to the 2007 figures it has to be taken into consideration that from 2007 onwards we only consolidate MBDA at 37,5% (50% in 2006).”

A snapshot of the Balance Sheet showed the figures as below:

Defence & Security Financial Figures 2007
Total Revenues 2007*: € 5.5bn
Ebit 2007*: € 340m
Order Backlog 2007*: € 17.9bn
Order Intake 2007*: € 7.5bn
Employees 2007: 22,000

Revenues Breakdown by Business Unit
2007 in m€
Military Air Systems: 2,138 (39%)
Defence and Communications Systems: 1,328 (25%)

Defence Electronics: 836 (15%)
MBDA: 1,130 (21%)

EADS Defence & Security achieved a number of substantial successes in 2007.
These included:
1. A 72 Eurofighter aircraft order from Saudi Arabia
2. The Eurofighter Typhoon Tranche 2 role enhancement contract
3. The award as Prime on the European Advanced UAV Risk Reduction Study
4. A Euro Hawk development contract

A number of Command, Control and Communication Information systems, including:
1. Oman Joint Command & Control Information System; German Air Force Deployable
Control & Reporting Centre
2. Swiss Future Soldier System (IMESS); Spanish Future Soldier System (COMFUT)
3. C3I German Army (FüInfoSys Heer)

Defence Electronics:
1. Captor active electronically scanning radar (CAESAR) first flight on Eurofighter
2. Terrain/Obstacle Collision Avoidance System (HELLAS) in 16 new German civil rescue helicopters
3. 44,000 Transmit/Receive modules for MEADS Design and Development Phase fire control radar

Security:
1. Contract for Qatar’s National Security Shield
2. Contract for UK Fire and Rescue Control System
3. Professional Mobile Radio
(40 new contracts – incl. BOSNet)

EADS Defence & Security Revenues remained stable at m€5465 from m€5864 in 2006 allowing for the MBDA effect of m€377. The Order Book expanded to m€7540 in 2007 excluding the MBDA effect of m€315.

“How do you see the European Missile business developing, particularly in the anti-tank market. After all in the 80s Milan was the world’s top selling anti-tank missile. Now your top position has been usurped by Javelin and Spike?”

“MBDA has a very strong level of order intake but most of these are now in the delivery phase. Europe needs to take a concerted look at new missile

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