Gif2008 Workshop a400m Suarez

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Global Investor

Forum 2008

A400MCarlos SuarezCEO

MTAD & Airbus MilitaryTom WilliamsExecutive Vice-President Programmes

Airbus

Seville, 17th / 18th January 2008



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The Company disclaims any intention or obligation to update these forward-looking statements. Consequently the Company isnot responsible for any consequences from using any of the below statements.

Certain of the statements contained in this document are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management‘s beliefs. These statements reflect the Company‘s views and assumptionsas of the date of the statements and involve known and unknown risk and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

When used in this document, words such as“ant icipate” , “believe ”, “estimate ”, “expect ”, “may ”, “intend ”, “plan to ” and “project ” areintended to identify forward-looking statements. Such forward-looking statements include, without limitation, projections for improvements in process and operations, new business opportunities, revenues and revenues growth, operating margin growth, cashflow, deliveries, launches, compliance with delivery schedules, performance against Company targets, new products, current andfuture markets for the Company products and other trend projections.

This forward looking information is based upon a number of assumptions including without limitation:· Assumption regarding demand· Current and future markets for the Company‘s products and services· Internal performance including the ability to successfully integrate EADS‘activities to control costs and maintain quality· Customer financing· Customer, supplier and subcontractor performance or contract negotiations· Favourable outcomes of certain pending sales campaigns

Forward looking statements are subject to uncertainty and actual future results and trends may differ materially depending on varietyof factors including without limitation:· General economic and labour conditions, including in particular economic conditions in Europe and North America,· Legal, financial and governmental risk related to international transactions· The cyclical nature of some of the Company‘s businesses· Volatility of the market for certain products and services· Product performance risks, and programme development and management risks· Collective bargaining labour disputes

· Factors that result in significant and prolonged disruption to air travel world-wide· The outcome of political and legal processes, including uncertainty regarding government funding of certain programs· Consolidation among competitors in the aerospace industry· The cost of developing, and the commercial success of new products· Exchange rate and interest rate spread fluctuations between the Euro and the U.S. dollar and other currencies· Legal proceeding and other economic, political and technological risk and uncertainties

Additional information regarding these factors is contained in the Company‘s “registration document” dated 25th April 2007

Safe Harbor Statement



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Background

• Long lasting sales campaign dating from FLA.• Launch date came out at the worst point for Airbus.

• Lack of non specific design activity in previous Airbuspartners.

• Multi mission role leads to a complex set of requirements.

• Lack of experience in Airbus for High Wing, “T” tail, turboprop aircraft and military qualification.

• Strong pressure from Nations to adopt the EPI engine asopposed to the cheaper and less risky PW solution for the

most powerful engine propeller combination ever developed.• Fixed Price Contract (“Commercial Approach”) with

unbalanced Risk taking.



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Programme execution

• Complex work share• Still using the NatCo based development teams.

• Better integration of design tools and PDM.

• Significant early changes in aircraft configuration.

• IFA represents a major stretch for the local team (a miniFAL), they were not sufficiently supported by the Airbusorganisation.

• EPI not organised as a proper programme managementorganisation.



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Key challenges for 2008

• Recover the engine delays.

• Manage the outstanding work (particularly the cargohandling system, …).

• React to the issues coming from first flight.

• Manage the military equipment development.

• Manage the ramp up.



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Supporting actions

• New leadership for the programme.

• New programme organisation in EPI. Audit launched withEPI.

• Stronger support at Bremen through the new integratedCoE fuselage.

• High level focus through weekly reviews with CEO.

• Stronger coordination between Airbus, MTAD (AirbusMilitary) and DS



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TP400-D6 Engine DevelopmentMilestones

TODAY’S

STATUS

CONTRACTUALDATE

30 Oct. 2007

N.A.

30 Oct. 2007

30 Jan. 2007

30 Jun. 2007

30 Nov. 2006

30 Dec. 2005

30 Aug. 2005

July 2008TP400 Engine First Flight Clearance

Oct. 2008TP400 Certification Std. Engine Delivery (HPC

redesign)

19 Nov. 2007Engine Delivery for Flight Test Bed

April 2008Flight Test Bed First Flight

Mar. 2009TP400 Engine Certification

Feb. 2008Engine Delivery or First A400M Test Aircraft

23 Feb. 2006First Engine & Propeller Test

28 Oct. 2005First Engine Test



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R U N N I N G H

R S

ETPv03 (2-09-2005)ETP06.01(September 2007)

ACTUAL (7-01-2008)

ETP06.01 FTB

Flight Clearance

ETP06.01 Initial

Flight Clearance

ETP06.01

ETP03

ETP Status: Running Hours

684:58 hr

Engine Contract Milestone

(M8) 1150 hours

• Approx. 1200hr are needed to build up maturity confidence before First Flight

• Current Flight Test Engine Standard will impose Flight Limitations and some

test need to be repeated when final Engine Standard available (HPC redesign)



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First Flight Schedule

Jul y A ugus t Sept em ber Oc tober N ovem ber Dec em ber January F ebruary M arc h A pri l M ay June Jul y A ugus t

20082007

St50

St 60 Outstanding Work St 40 SGT

Outstanding Work & St 35

St 30

St 20

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FlightLineSt 25

St 72 St 70

45a

Empennage Join-up

Fuselage Join-up A/C Integration &

Equipping

45b

Engine equipping

Software reloading

Weighing

Wing Join -up Wing E qu ipping & Test

Ready for

First Flight

Ready for

First Flight

Indoor Ground Tests

Outdoor

Ground Tests

Painting

Software Loading

GT



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IOC Flight Testing

And EIS

SOC Flight Testing

Impact to EIS

Contract

Qtr 1

2008 2009 2010 2011

FF IOC/EIS SOC

IOC/EISFF

MSN1

2m

SOC Flight Test

6 months delay

6 months delay

Engine clearance

OSW completion

Systems Integration

Engine unknowns

Systems development

Unknowns form Flight test

MMC/GADIRS/FMS

integration

Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4

SOC

6 m risk to SOC

MMC/GADIRS/FMS integration

CHS/ADS development

Military Qualification

IOC Flight Test

6 m risk to IOC/EIS



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A400M Programme Organisation

Sub-Contracts

Third Parties

Engine

Manufacturer Engine

Manufacturer

Propeller

Manufacturer Propeller

Manufacturer

...

Shareholder Agreements

Shareholders

IndustrialAgreements

Partners

LaunchContract

OCCAR

Organisation for Joint

Armaments cooperation

---------------

Organisme Conjoint de Coopération

en matière d'Armement

MoU

N

A

T

I

O

N

S

D e v e l o p m e n t

M a n a g e m e n t

C o n t r a c t

MTAD

MTAD



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A400M Rapid Response: Logistic andTactical

Tactical

Capability

Logistic Capability: Payload / Range

… fil ls the

logis t ic/tact ical gap

Tactical

Transports

C-130

Strategic Airlifters

An-124, C-17

A400M

… complements C-17

capabi l i ty

… affo rdab le

Proprietary Information



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An impressive Market Segment

3130 Medium size transports in service, in storage and on order, early 2007

1630 C-130

177 C-160

520 An-12 800 IL-76/78



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Market Requirement for A400M type transports

E u r o p

e

N o r t h

A m e r i

c a

L a t i n

A m e r i

c a A f r i c

a

M i d d l e E a

s t A s i a

A u s t r

a l a s i a

C I S + C h i n

a

plus Deliveries to current A400M Customers (192 a/c)

050

100

150

200

250

300

350

400

450

~1100 aircraft in 60 countries up to 2025



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Capacity Requirement A400M type transports

North

America

~400

CIS, China

~320

Customers

192

Export Potential:400 aircraft in56 countries

~ 1300 Deliveries 2006 – 2025+

New demand plus replacements translate into a worldwide need for some

1300 deliveries of A400M type aircraft



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Export Potential : 400 aircraft in 56countries

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20

30

40

50

60

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80

90

A s i a

excluding Current Customers, North America, CIS, China

M i d

d l e E a s

t

A f r i c a

L a t i n

A m e r i c

a

E u r o p e

A u s t r a l a s i a



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A400M Delivery Potential ~ 400aircraft

North

America

~400

CIS, China

~320

Customers

192

Export Potential:

400 aircraft in56 countries

Export Potential

200

Other Transactions

200

A400M Delivery Potential to

Customer and Export Nations:

~ 400



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Strong Market Prospects

• A400M marketing efforts have achieved 192 orders before firstflight.

• There is a strong market interest in the aircraft which will

strengthen as soon as the first aircraft starts flying.

• Even assuming conservative assumptions the A400M should

achieve 400 sales.

• HOWEVER this assumes no penetration into the USAF which

represents a further 400 units requirement.

• Just half of this US market would enable the currently planned

production rate (~30 aircraft/year) to be maintained for >15years

EADS is convinced that their confidence in the A400M

programme will be vindicated.



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A400M Operational Capabilities

Notwithstanding the immediate challenges ahead

the A400M will meet the demanding requirements of both

operational and humanitarian missions because:

. . . capabilities which put the

A400M into a class of its own.

• A400M provides true Logistic (Inter-Theatre) Airlift:

• High Cruise Speed, Long Range, Outsize Load Capacity

• A400M is a better Tactical Airlifter than current fleets:

• Greater Manouvrability…Softer Field Capability…Better Self-Protection

• A400M has a built-in Air-to-Air Refuelling capability:

• Fast / high enough for fast-jets…plus slow / low enough for helicopters

Gif2008 Workshop a400m Suarez

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