Airbus 2015 Annual Report Download - page 74

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 42 l
Informationon GroupActivities
1.1 Presentation of the Group
Commercial Sector: Telecommunications Satellites,
Launch Services
The commercial telecommunication satellite market is very
competitive, with customer decisions primarily based on price,
technical expertise and track record. The main competitors for
telecommunications satellites are Boeing, Lockheed Martin,
MDA and Orbital in the US, Thales Alenia Space in France and
Italy, and Information Satellite Systems Reshetnev in Russia. The
market for telecommunications satellites is expected to remain
largely stable over the coming years at a level of approximately
20orders per year on average.
The market for commercial launch services continues to evolve.
Competitive pressure is increasing in light of other competitors
entering or coming back into the market. Airbus Defence
andSpace is active in providing launch services through its
shareholding in Airbus Safran Launchers, providing a complete
range of launch services with the Ariane, Soyuz, Vega and
Rockot launchers. Competitors for launch services include
ILS, SpaceX, ULA, Sea Launch and CGWIC. The accessible
market to Arianespace for commercial launch services for
geostationary satellites is expected to remain stable at around
20 payloads per year. However, due to various factors (such
as technology advances and consolidation of customers), this
figure remains volatile. This market does not include institutional
launch services for the US, Russian or Chinese military and
governmental agencies.
In 2015 Airbus Defence andSpace announced the creation of
Airbus OneWeb Satellites (AOS) JV, an equally owned company
with OneWeb that will design and build 900+ satellites for
the OneWeb constellation programme. This participation is
entrepreneurial in nature and is meant to drive innovation in a
new space market.
Communications, Intelligence & Security (CIS)
The business line Communications, Intelligence and Security
(CIS) brings together the growing but increasingly competitive
market for satellite and terrestrial communication, intelligence and
security services and solutions. CIS serves a common customer
base which includes governments, defence institutions, security
and public safety agencies, as well as commercial sectors such
as transportation (maritime, airport, metro), energy (oil, gas,
electricity), mining and agriculture.
This business line is divided into five segments: Integrated
Systems, Geo-Intelligence, Satellite Communications, Secure
Land Communications and Cyber Security.
Through Integrated Systems, Airbus Defence and Space
develops Command and Control solutions for Ministries of
Defence and border security and emergency response systems
for Ministries of the Interior in Europe and Middle East. The
market is very fragmented, with competitors coming from
defence, telecom, infrastructure and IT businesses.
CIS also dominates the satellite imagery (optical and radar) market
for Geo-Intelligence. This sector remains mainly government
orientated. However, the demand for satellite imagery is growing
in commercial markets as many companies see geospatial data
as key information for their business development.
The business line CIS is also a leader in commercial and
governmental satellite communications. This segment offers
a full portfolio of mobile and fixed satellite communication
solutions for application at sea, on land and in flight. Customers
are Ministries of Defence, the commercial maritime sector as
well as energy and mining businesses, humanitarian NGOs
and the media. Commercial satellite communication services
are subject to carve out.
The Secure Land Communications segment is a major actor
worldwide for Professional Mobile Radio (PMR) networks and
terminals solutions as well as call taking solutions for public
safety answering and control room. Main customers are
Ministries of the Interior and critical infrastructures, i.e. police,
fire brigades, ambulances, airports, and metro lines. The Secure
Land Communications segment is subject to carve out.
The border security segment develops land and maritime border
surveillance and protection systems, with a multi-level portfolio
of solutions ranging from sub-systems equipment to complete
nationwide systems integrating all the mobile and fixed assets
contributing to a customer country’s border security. In the area
of large-scale border security systems, it can be considered
as the world leader.
Airbus Defence andSpace is also a leading provider of consulting
services for products of cyber security. The market growth is
driven by an exponential increase of cyber-attacks and this
trend is foreseen to continue in the next years. Customers are
governments and private companies.
Airbus Defence andSpace has good market position in all
businesses covered in CIS. However, maintaining or improving
its position would require important investments in some areas
such as Secure Land Communications or Commercial Satellite
Communications Services. Airbus Defence andSpace is seeking
owners more suitable to develop these business areas further.
Due to the carve out, CIS focuses on public customers such as
armed forces for government satellite communications, where
we have long-term relationships with our customers. Whereas
budget pressures on public expenditure, above all military
expenditure, are high in Europe, investment into the services
and solutions offered by CIS is likely to continue in the face of
new global security threats.
Electronics
For integrated civil, defence and security systems, the Business
Line Electronics designs, develops and delivers electronic
components and products. It is composed of two main business
clusters: On the one hand defence and security applications
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015