Airbus 2015 Annual Report Download - page 72

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 40 l
Informationon GroupActivities
1.1 Presentation of the Group
and security forces – and the commercial sector, including
transportation (maritime, airport, metro), energy (oil, gas and
electricity), mining and agriculture. Key services and solutions
include: military and commercial satellite communication
services, Professional Mobile Radio communications,
emergency response centres (such as 9-1-1/112), border
surveillance systems, command & control (C4I) systems,
cyber security solutions and services and observation-
satellite-based geo-information services. Commercial satellite
communication services and Professional Mobile Radio have
been carved out for future sale.
 Electronics provides high-performance equipment for system
integrators that serve both Airbus Defence andSpace within
the AirbusGroup as well as external customers worldwide.
Products are mainly for the civil, defence and security markets
and cover ground, maritime, airborne and space applications.
Key products include radars and IFF systems, electronic
warfare equipment, avionics, space platform electronics,
space payload electronics as well as optronic sensors. All
but space electronics have been carved out for future sale.
Strategy
The strategic ambition of Airbus Defence andSpace is to be
a global leader in Space, Military Aircraft, Missiles and related
systems and services. The Division aims to preserve a leading
position in Europe and build an international footprint in selected
countries, delivering benchmark financial performance and
sustainable growth. Following a full portfolio review, Airbus
Defence andSpace is taking steps to both divest non-core
activities and invest in future growth. Significant progress has
been made for carving out non-core businesses (defence
electronics and border security, Secure Land Communications,
commercial satellite communications services, and a number of
participations and subsidiaries) while strategic growth options
are being defined for the remaining core business.
Military Aircraft. Airbus Defence andSpace is capitalising on
its strong market position in transport, mission and combat
aircraft and related services. In heavy transport, the focus will be
on completing the development and delivery the A400M airlifter
to its launch customers while ramping up sales campaigns in
order to address the significant demand expected for this aircraft
worldwide. For light & medium transport, Airbus derivatives –
including the highly successful A330 MRTT (multi-role tanker
transport) – and the Eurofighter combat aircraft, further export
opportunities will be pursued while investing in future capability
growth and innovation. Airbus Defence andSpace is also
aiming at establishing a substantive presence in the market for
Unmanned Aerial Systems (UAS).
Space. Airbus Defence andSpace has taken a major step
towards future competitiveness in space transportation with
the creation of the Airbus Safran Launchers (ASL) joint venture,
which will be responsible for developing, producing and
marketing the next-generation European launcher, Ariane6.
As a leading manufacturer of telecommunications and Earth
observation, navigation and science (ENS) satellites, as well
as orbital and space exploration systems, Airbus Defence
andSpace is continuously investing in innovation to ensure its
future positioning in these core segments. In addition, the ability
to provide space-related services through its Communications,
Intelligence & Security (CIS) business line, as well as space
electronics equipment, enables Airbus Defence andSpace to
offer fully integrated space solutions to its customers.
Missiles are a growing and profitable business, in which Airbus
Defence andSpace already has a strong presence through its
participation in the leading European missile maker, MBDA, as
well as its military launcher business.
Market
Airbus Defence andSpace is mainly active in public and para-
public markets. As a general trend, defence budgets are flat or
slightly increasing in Europe. Market access outside the home
countries may be subject to restrictions or preconditions such
as national content. Nevertheless Airbus Defence andSpace,
in conjunction with AirbusGroup, has already a strong export
orientation as well as international presence and partnerships
and will continue to develop them.
Military Aircraft
Customers
The Military Aircraft Business Line with its products Combat
Aircraft, Military Transport Aircraft, Mission Aircraft and
Unmanned Aerial Systems supplies the public sector, mainly
armed forces.
Customer relationships in this segment are characterised by their
long-term, strategic nature and long decision-making cycles.
Once a contract is signed, contract life including considerable
services business often carries on for decades.
Customers in the home countries of Airbus Defence andSpace
face budget pressures, leading the Group to focus on the export
market. However, ageing material leads to the need for some
ongoing or upcoming procurement decisions even in Europe,
such as France’s announcement for 12A330MRTT in 2014.
Unmanned Aerial Systems could lead to diversification into
commercial markets. It is also a sector in which Europe has a
strong need for investment, which could set the stage for new
cooperation programmes. France, Germany, Italy and Spain
have signalled their intention to cooperate on a medium altitude,
long endurance Unmanned Aerial System and Airbus Defence
andSpace is designated to participate in the two-year definition
study of the system.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015