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EUROPEAN MAJORS REPORT RESULTS

EADS
Thales

EADS Shows Continued Growth

27 Feb 13. EADS (stock exchange symbol: EAD) achieved strong revenue and underlying profit growth for the full year 2012. Despite a difficult macro-economic environment, EADS saw continued momentum in its commercial activities while defence revenues were broadly stable. The order intake(5) totalled €102.5bn in 2012 while EADS’ order book(5) increased in value to € 566.5bn at the end of the year. Revenues amounted to €56.5bn. The EBIT* before one-off of around €3.0bn reflected the strong operational performance at Airbus Commercial with positive contributions from Eurocopter and Astrium. The reported EBIT* increased to €2.2bn. The Net Cash position at the end of the year was €12.3bn.

“EADS achieved double-digit revenue and profit growth during 2012 while the order backlog increased further,” said EADS CEO Tom Enders. “A strong focus on deliveries helped to significantly improve cash generation during the fourth quarter. Going-forward, the focus on bottom line growth remains our priority number one as a management team. And there’s still some way to go to meet our profitability targets. If anything, the new governance, the new shareholder structure and the new Board as of end March will further energize the company and its employees on their successful international growth path.”

For the full year 2012, EADS’ revenues increased by 15 percent to
€56.5bn (FY 2011: € 49.1bn). This strong performance was driven mainly by higher volume and more favourable U.S. dollar rates at Airbus Commercial as well as solid increases at Eurocopter and Astrium. Revenues at Eurocopter and Astrium were boosted by the services businesses, including Vector Aerospace and Vizada. The companies acquired in 2011 contributed around €1.5bn to the 2012 revenues. Despite the overall defence environment, defence revenues were flat compared to 2011. Physical deliveries remained strong with a record 588 aircraft for Airbus Commercial, 29 aircraft for Airbus Military, 475 helicopters at Eurocopter and the 53rd consecutive successful Ariane 5 launch. EBIT* before one-off (adjusted EBIT*) – an indicator capturing the underlying business margin by excluding material non-recurring charges or profits caused by movements in provisions related to programmes and restructurings or foreign exchange impacts – increased sharply to €3.0bn (FY 2011: €1.8bn) for EADS and to around €1.8bn for Airbus (FY 2011: around €0.5bn). The Group performance was driven by the strong underlying performance at Airbus Commercial while Eurocopter and Astrium also delivered absolute increases to the EBIT* before one-off.

EADS’ reported EBIT* increased to €2,186m (FY 2011: €1,696 m) with one-off charges totalling €820m booked during the year. Of these total one-off charges, €522m were booked at Airbus during 2012, including the anticipated € 251 m on the A380 related to the wing rib feet repair. The A350 XWB charge of €124m to reflect the latest programme update is unchanged since H1 2012. Good progress is being made on the A350 XWB programme but it remains challenging and there is no room left in the schedule. Also included are the € 76 m charges related to the Hawker
Beechcraft Programme closure booked in the third quarter and a €71m charge for the foreign exchange impact on pre-delivery payments mismatch and balance sheet revaluation. At Eurocopter, the on-going renegotiation of certain contracts for governmental customers resulted in a €100m charge in the fourth quarter. At Cassidian, a total of €198m of charges were booked in the final quarter to reflect restructuring costs in line with the business transformation (€98m) and a charge related to portfolio de-risking (€100m), in particular for the secure systems and solutions business. Net Income increased by 19 percent to €1,228m (FY 2011: €1,033m), or earnings per share of €1.50 (earnings per share FY 2011: €1.27). The Net Income* before one-off(4) increased to €1,838m (FY 2011: €

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