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Aerospace & Defense Finance Conference

Dec. 2006

Presented by

Barry Eccleston

President & CEO, Airbus North America

Who we of 1 Assemblyare* st pieces well advanced…

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

• EADS company • 55,000 employees worldwide • ~600 employees in U.S. • 12 aircraft models within 4 families • 4,529 aircraft; 269 operators worldwide • 1,094 aircraft; 19 operators in North America • Annual turnover of $28 billion in 2005

* Data as of Nov. 30, 2006. North America = U.S. and Canada.

All rights reserved. 31.S. 294 311 325 303 305 320 378 353 * 2006 deliveries through Oct.Where we’re going: deliveries 52% 32% y share irbus’ deliver A Airbus 1000 800 600 400 200 0 1999 2000 2001 2002 2003 2004 2005 2006 914 800 620 Boeing 852 684 489 527 381 586 281 605 285 668 290 683* 330 © AIRBUS S. .A. Confidential and proprietary document.

All rights reserved. 2006 100 80 Boeing 81% 60 Boeing 56% Airbus 44% 40 © AIRBUS S.Where we’re going: orders % share of gross unit orders: 1995 – Mid-Nov.S. 20 Airbus 19% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 0 1995 2006 . Confidential and proprietary document.A.

310 51% © AIRBUS S.Where we’re going: order backlog Aircraft over 100 seats Airbus 2.S.254 49% 4. Confidential and proprietary document. All rights reserved.A.564 orders Source: company Web sites End October 2006 . Boeing 2.

S.Where we’re going: the challenges Assembly of 1st pieces well advanced… • Get the A380 back on track • A350XWB EIS • Maintain strong customer relationships © AIRBUS S. Confidential and proprietary document. .A. All rights reserved.

All rights reserved.Getting there: What we do well The A320 Family 4.843 orders 171 customers (End Nov. . Confidential and proprietary document.A.S. 2006) © AIRBUS S.

095 orders 75 customers (End Nov. All rights reserved. 2006) © AIRBUS S.Getting there: What we do well The A330/A340/A350 Family 1.A. Confidential and proprietary document.S. .

Getting there: What we do well The A380 Family 166 orders 15 customers (End Nov. Confidential and proprietary document. 2006) © AIRBUS S.A.S. All rights reserved. .

S. . 2006) © AIRBUS S.A. All rights reserved.Getting there: What we do well The A400M 192 orders 9 customers (End Nov. Confidential and proprietary document.

Getting there: Fixing what we don’t do well enough The three major burning issues Speed up A/C Speed up A/C Development Development Regain Leadership Maximize Cash Maximize Cash Secure Funding for Future Programs © AIRBUS S. Cut Costs Cut Costs Secure Competitiveness . All rights reserved. Confidential and proprietary document.A.S.

6 Focus on Structure Under Under development !! development 7 8 .A. All rights reserved.Power 8 – 8 modules to cover key targets Speed up A/C Speed up A/C Development Development Maximize Cash Maximize Cash Cut Costs Cut Costs 1 2 Develop Faster Smart Buying Lean Manufacturing 4 5 Focus on Operations Ready for Ready for launch !! launch 3 Reduce Overhead Costs Maximize Cash Restructure Industrial Set-up Streamline FAL Focus on Core © AIRBUS S.S. Confidential and proprietary document.

All rights reserved. Reduce cycle time of new A/C development from 7.A.S. Confidential and proprietary document.5 to 6 years Improve engineering productivity by 15% by 2010 Increase externally funded R&D Drive technology developments to readiness and prepare for breakthrough .Objectives of Develop Faster Develop Faster © AIRBUS S.

A. Confidential and proprietary document.Objectives of Maximize Cash Maximize Cash © AIRBUS S. payables and receivable management) Develop cash-oriented behavior .S. Operating working Capital and Capex addressed by other modules Reduce financial working capital (Pre-delivery Payments. All rights reserved.

Confidential and proprietary document. All rights reserved.A.S. Reduce General Procurement spend by $449m by 2010 Streamline logistics (from 80 warehouses to 4-8 logistics centers) Increase low-cost sourcing Reshape supply base Redesign SA/LR components/systems jointly with suppliers .Objectives of Smart Buying Smart Buying © AIRBUS S.

buy (plant level) .A. Confidential and proprietary document.S.Objectives of Lean Manufacturing Lean Manufacturing © AIRBUS S. All rights reserved. Deploy harmonized and consistent “Lean Airbus Production System” across all plants Increase productivity by 18% between 2006 and 2010 Reduce total cost of quality Optimize manufacturing/engineering interface Reduce material consumption Re-balance tactical make vs.

Confidential and proprietary document.S.A. All rights reserved.Objectives of Reduce Overhead Costs Reduce Overhead Costs © AIRBUS S. Reduce overhead cost across Airbus by 30% by 2010 Reduce personnel related general procurement spend Focus on all overhead staff .

S. informationsharing Balanced across the Airbus countries 8 Focus Focus on Core on Core .A.Objectives of Modules 6 to 8 Status 6 Approach Restructure Restructure Industrial Industrial Set-Up Set-Up 7 Streamline Streamline FALs FALs © AIRBUS S. Confidential and proprietary document. Nothing decided: under study until year-end ‘06 Open and transparent dialogue. All rights reserved.

Launch Oct.A. All rights reserved. 2006 Full Impact . 16.S.2010 Preparation Ramp up Full Implementation Benefits Capturing © AIRBUS S.2008 2008 . Confidential and proprietary document.Power 8 Roadmap 2006 2007 .

2006 Q&A .Aerospace & Defense Finance Conference Dec.

AIRBUS. The statements made herein do not constitute an offer. A319. This document and all information contained herein is the sole property of AIRBUS NORTH AMERICA. A300. will be pleased to explain the basis thereof. All rights reserved. This document and its content shall not be used for any purpose other than that for which it is supplied. © AIRBUS S.© AIRBUS NORTH AMERICA. A310. its logo. AIRBUS NORTH AMERICA. This document shall not be reproduced or disclosed to a third party without the express written consent of AIRBUS NORTH AMERICA. A340. A330. A400M are registered trademarks.A. A321. Confidential and proprietary document. A318. A320. A350. rights reserved. They are based on the mentioned assumptions and are expressed in good faith. No intellectual property rights are granted by the delivery of this document or the disclosure of its content.S. All Confidential and proprietary document. Where the supporting grounds for these statements are not shown. . A380.