Aerospace & Defense Finance Conference

Dec. 2006

Presented by

Barry Eccleston

President & CEO, Airbus North America

Who we of 1 Assemblyare* st pieces well advanced

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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.

Where were 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

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294

311

325

303

305

320

378

353

* 2006 deliveries through Oct. 31.

Where were going: orders

% share of gross unit orders: 1995 Mid-Nov. 2006
100

80

Boeing 81%

60

Boeing 56% Airbus 44%

40
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20

Airbus 19%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

0 1995

2006

Where were going: order backlog

Aircraft over 100 seats

Airbus 2,310 51%

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Boeing 2,254 49%

4,564 orders
Source: company Web sites

End October 2006

Where were going: the challenges Assembly of 1st pieces well advanced

Get the A380 back on track A350XWB EIS Maintain strong customer relationships

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Getting there: What we do well

The A320 Family

4,843 orders 171 customers
(End Nov. 2006)

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Getting there: What we do well The A330/A340/A350 Family

1,095 orders 75 customers
(End Nov. 2006)

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Getting there: What we do well The A380 Family

166 orders 15 customers
(End Nov. 2006)

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Getting there: What we do well The A400M

192 orders 9 customers
(End Nov. 2006)

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Getting there: Fixing what we dont 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

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Cut Costs Cut Costs

Secure Competitiveness

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

Reduce Overhead Costs

Maximize Cash Restructure Industrial Set-up Streamline FAL Focus on Core

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Focus on Structure

Under Under development !! development

7 8

Objectives of Develop Faster

Develop Faster
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Reduce cycle time of new A/C development from 7.5 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 Maximize Cash

Maximize Cash
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Operating working Capital and Capex addressed by other modules Reduce financial working capital (Pre-delivery Payments, payables and receivable management) Develop cash-oriented behavior

Objectives of Smart Buying

Smart Buying
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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 Lean Manufacturing

Lean Manufacturing
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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. buy (plant level)

Objectives of Reduce Overhead Costs

Reduce Overhead Costs

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Reduce overhead cost across Airbus by 30% by 2010 Reduce personnel related general procurement spend Focus on all overhead staff

Objectives of Modules 6 to 8
Status
6

Approach

Restructure Restructure Industrial Industrial Set-Up Set-Up

Streamline Streamline FALs FALs

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Nothing decided: under study until year-end 06

Open and transparent dialogue; informationsharing Balanced across the Airbus countries

Focus Focus on Core on Core

Power 8 Roadmap

2006

2007 - 2008

2008 - 2010

Preparation

Ramp up

Full Implementation

Benefits Capturing

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Launch Oct. 16, 2006

Full Impact

Aerospace & Defense Finance Conference

Dec. 2006

Q&A

 AIRBUS NORTH AMERICA. All Confidential and proprietary document.

rights

reserved.

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

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