Security Business a Growth Path

Transcription

1 Business a Growth Path North America Investor Forum 2010 New York, 18 th March 2010 Hervé Guillou Head of EADS Defence & Communications Systems

2 Safe Harbour Statement 2 Disclaimer This presentation includes forward-looking statements. Words such as anticipates, believes, estimates, expects, intends, plans, projects, may and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements made about strategy, ramp-up and delivery schedules, introduction of new products and services and market expectations, as well as statements regarding future performance and outlook. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include but are not limited to: Changes in general economic, political or market conditions, including the cyclical nature of some of EADS businesses; Significant disruptions in air travel (including as a result of terrorist attacks); Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar; The successful execution of internal performance plans, including cost reduction and productivity efforts; Product performance risks, as well as programme development and management risks; Customer, supplier and subcontractor performance or contract negotiations, including financing issues; Competition and consolidation in the aerospace and defence industry; Significant collective bargaining labour disputes; The outcome of political and legal processes, including the availability of government financing for certain programmes and the size of defence and space procurement budgets; Research and development costs in connection with new products; Legal, financial and governmental risks related to international transactions; Legal and investigatory proceedings and other economic, political and technological risks and uncertainties. As a result, EADS actual results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see EADS Registration Document dated 22nd April Any forward-looking statement contained in this presentation speaks as of the date of this presentation. EADS undertakes no obligation to publicly revise or update any forward-looking statements in light of new information, future events or otherwise.

3 Contents 3 Evolution EADS business market growth Large portfolio management EADS market positioning Strategic enablers Focus on USA Conclusions

4 Evolution EADS Business 4 EADS Revenues vs. Order Book Bn Market started in 2001 after 09/11. Before mainly PMR driven. EADS has achieved to growth in following market evolution. activities based on the development of internal competences (e.g. PMR, C³I, homeland security) and acquisitions (e.g. Sofrelog, Plant CML) Revenues Order Book Profitability turnaround achieved in 2006 and benchmark in 2009.

5 Market Growth 5 Homeland security and homeland protection market evolution worldwide Bn CAGR: 7 % Aviation security Martime security CBRN mitigation Counter-terror intelligence Borders& perimeters IT, C3 & Cyber 1st responders Critical infra People screenuing, RFID & Biometrics Private sector Whereas Defence budgets in Europe are flat, budgets are strongly growing globally. Growth is driven by: - Diversification of conventional warfare funding into security programs. - Public-media continues to focus on economical and terror fear of the electorate. - Growth of security spending in some industrial sectors (transport, Oil & Gas, ). Source: HSRC -Homeland security research Outlook

6 Large Portfolio Management 6 Objectives Protection of the population Border Critical Infrastructures & Sites Protection Crisis & Emergency Response Maritime EADS DS Offer Public safety (police, fire, rescue) Major event security Coordination of government forces Surveillance of land, coastal and maritime borders and checkpoints Airspace surveillance Protection of critical assets (oil & gas, refineries, energies etc..) Harbours A mission-critical communications system is a crucial element in all these global security solutions Prevention & Plans definition Emergency calls mgmt (112) Major crisis management: Natural disasters, Industrial accidents, Blackmail, etc. Port security: control and protect vessels, vessel traffic, port infrastructures, flows of persons, cargo and industrial activities. Coastal security detection of pollution, trafficking or immigration. Maritime security Economic Exclusive Zone (EEZ) and the high seas surveillance. Market addressed through 2 business models: Integrated systems and mission critical communications systems

7 Competitors Analysis 7 Protection of the population Border Critical Infrastructures & Sites Protection Crisis & Emergency Response Maritime Products approach LSI approach

8 EADS Market Positioning 8 USA: PlantCML (emergency response solutions) Brazil: PMR Federal Police Spain: PMR network Germany: BOSNet France: Police & Fire brigade network UK: FiReControl Romania: Shengen Border Surveillance Key security positions PMR Networks: - Worldwide co-leader networks in 68 countries. Maritime security & coastal surveillance: - World leader (40% market share) - Systems in over 40 countries. India: Cyberabad PMR network China / Hong Kong Beijing PMR (Olympics 2008) PMR Hong Kong Police Partnership with HYT Gungzhou PMR Asian Games 2010 Philippines: PMR network Morocco: System for Tangermed port Australia: Sydney harbor Middle East Qatar: Nat. Shield PMR network Saudi Arabia: Border UAE: PMR network Critical Infrastructure (*) PMR: Private Mobile Radio Integrated systems: - World leader - Romania, Firecontrol, Qatar, Saudi Arabia, BOSnet.

9 Strategic Enablers 9 Integrated Systems Integrated Systems share is growing in Defence & in A lot of customers ( & new countries for Defence) not having sufficient internal system and procurement capabilities Other customers seeking capabilities instead of systems Emerging market segments Cyber security, maritime security, border security, information superiority Telecoms IT Telecoms & IT convergence E.g. broadband solutions, enabling enhanced situation awareness, as major driver Defence Defence & security convergence requirements of defence and governmental customers converging (resilience, sharing of information ) Regional growth Industrial footprint in USA and Middle East

10 Focus on USA - Plant CML 10 Public Safety Answering Point (PSAP) A facility equipped and staffed to receive calls Company acquired in April 2008 by EADS North America Provides public and private safety call centers & communications (e.g. radio dispatch, emergency call centers) Approx. 170 Mio$ turnover per year and 600 employees Main site: Temecula (California)

11 Conclusions 11 EADS has won significant major contracts in strong competition. market growing (average CAGR > 7%) and offering future significant growth potential for EADS. EADS well positioned due to excellent understanding of customers needs and access to best in class capabilities and technologies (internally and externally to EADS). EADS strengths are: - EADS capability approach having the users in the loop, - Finding the best solution focusing on system optimization, - Generation of local value.