Airbus 2014 Annual Report Download - page 40
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n 2013, Airbus Group revised its
strategy and announced a reorgan i-
sation of its defence and space
businesses. What progress has been
made since?
A lot, I can tell you. You’ll recall the out-
come of our strategic review, basically with two
main elements. First: we recognise commercial
aviation as our major growth engine. Second,
we adapt the defence and space businesses
to enhance competitiveness and focus on our
core competences.
You’ve seen the order intake at Airbus. We had
a net book-to-bill ratio of more than two in 2014.
Our order book is at an industry record level of
nearly 6,400 aircraft. Based on 2014 deliveries,
that’s ten years of coverage. All this is confirma-
tion that we’re right with respect to the commer-
cial aircraft business. That’s where the growth is.
In the defence and space businesses, too, the
progress has been impressive. In many ways,
even more so. The new Division, Airbus
Defence and Space, became operational in
2014 and has already made substantial pro-
gress in its restructuring effort, with headcount
and site reductions fully on track.
On top of that, we conducted a thorough and
detailed assessment of the defence and space
business portfolio. As a result, we’ve defined
our future core business within the segment:
space (including launchers and satellites), milit-
ary aircraft, missiles and related systems and
services. These are the areas we plan to focus
on in the years ahead. Other business areas
are identified as divestment candidates.
What exactly is the thinking behind this?
We need to rethink our structure in the defence
and space sector to address bottom line per-
formance. Our guiding principle is that we
orient our portfolio towards those businesses in
which we are able to maintain a leadership pos-
ition and succeed under any market cond itions.
We have a number of world-leading products
and capabilities in our portfolio. That’s where
we want to focus our attention in the years
ahead. We believe that some existing busi-
nesses, those earmarked for divestment, will
have better chances for growth and market
success in different ownership structures.
What’s the current status?
Have you already sold any assets?
Yes, indeed. Our entire stake in Patria has been
sold, as has the Oostkamp site in Belgium. The
next step is the carve out of Secure Land Com-
munications and Business Communications,
as well as Defence Electronics and Border Sec-
urity. At the same time, we have taken decisive
action within the launcher business with our
new joint venture.
How does this joint venture fit into
the scheme?
Again, the guiding principle is to focus our re-
sources in order to boost competitiveness. The
space launcher business is facing increased
international competition, from governments
worldwide, but also from new commercial
entrants. The new joint venture Airbus Safran
Launchers, which started operations in January
2015, brings together the expertise of Airbus
Group and Safran and, I believe, will be a major
worldwide player in the launcher domain, poised
to capture market growth and better serve instit-
utional as well as commercial customers.
By joining forces with Safran, we can integrate
the role of prime contractor and propulsion pro-
vider to enhance cost control and competitive-
ness. The joint venture also integrates sales
and launch operations. I would like to emphas-
ise that we see launchers as a core part of our
business going forward.
Do you have any other merger and
acquisition projects in the pipeline?
At the moment, clearly, the priority is on reshap-
ing the defence and space perimeter. That
means more focus on executing successfully
STRATEGY
IN ACTION
INTERVIEW WITH MARWAN LAHOUD
CHIEF STRATEGY AND MARKETING OFFICER
Marwan Lahoud
Chief Strategy and Marketing Officer
The priority is on
reshaping the
defence and space
perimeter
ANNUAL REVIEW 2014
38
02 PILOTING EFFICIENCY