European Aeronautic Defence and Space Company EADS N.V. / Key word(s): Agreement
05.11.2010 16:49
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Ad-hoc release, 5 November 2010
EADS and Airbus welcome A400M agreement with customer nations
EADS and Airbus welcome the conclusion of negotiations with OCCAR and the
seven A400M launch customer nations. The agreement, finalised today in
Toulouse in the presence of the French Defence Minister Hervé Morin, the
national armament directors and other representatives from all customer
nations, is the long awaited further detailing of the principle agreement
reached in March 2010.
While the overall economics of the March agreement remain unchanged
(for details see the EADS press release from 5 March 2010 - attached), the
government payments are now more back-loaded than previously expected.
Negotiations on the export levy facility (ELF) scheme are expected to be
finalized before the end of the year.
'The A400M flight test programme is making excellent progress and
demonstrates the soundness of the product. We are very proud of the
achievements so far and are now moving towards the series production by the
end of the year', said Domingo Ureña, Managing Director of Airbus Military.
About the A400M:
The A400M is an all new military airlifter designed to meet the needs of
the world's Armed Forces in the 21st Century. Thanks to its most advanced
technologies, it is able to fly higher, faster and further, while retaining
high manoeuvrability, low speed, and short, soft and rough airfield
capabilities. It combines both tactical and strategic/logistic missions,
while being also able to be used as a tanker plane. With its cargo hold
specifically designed to carry the outsize equipment needed today for both
military and humanitarian disaster relief missions, it can bring this
material quickly and directly to where it is most needed. Conceived to be
highly reliable, dependable, and with a great survivability, the
multipurpose A400M can do the job of three of today's different aircraft
models in a single one. This means smaller fleets and less investment from
the operator. Able to do more with less, the A400M is the most cost
efficient and versatile airlifter ever conceived and absolutely unique in
its capabilities. The A400M launch customer nations include Belgium,
France, Germany, Luxemburg, Spain, Turkey and the UK.
About EADS:
EADS is a global leader in aerospace, defence and related services. In
2009, the Group - comprising Airbus, Astrium, Cassidian and Eurocopter -
generated revenues of EUR 42.8 billion and employed a workforce of more
than 119,000.
Contacts:
Alexander Reinhardt +49 171 76 50 320
Martin Agüera +49 89 607 34 735
Charles-Etienne Lebatard +33 1 42 24 24 25
Philipp Lehmann +49 89 607 34 287
www.eads.com
ATTACHMENT: EADS press release of 5 March 2010
Customer Nations and EADS Come to Principle Agreement on A400M - Additional
provision to be Booked
Leiden, 5 March 2010 - The Customer Nations and EADS have come to a
principle agreement regarding the A400M military transport aircraft with
the intention to amend the original contract accordingly in the coming
weeks.
In this principle agreement, the Customer Nations agree to:
- Increase the price of the contract by EUR2 billion;
- Waive all liquidated damages related to current delays;
- Provide an additional amount of EUR1.5 billion in exchange for a
participation in future export sales (Export Levy Facilities).
- Accelerate pre-delivery payments in the period of 2010 to 2014, a new
schedule of which will be finalised in the amended contract;
Based on this agreement, an estimate at completion of updated revenues and
costs including an assessment of risks, reviewed by the EADS Board of
Directors, leads to an increase of the A400M loss provision of EUR 1.8
billion pre tax for the full year 2009. The update of the provision is
based on a management assessment taking into consideration the principle
agreement between EADS and the seven Nations.
EADS EBIT* and net income will be negative in 2009 after incorporating this
charge. Results will be released at EADS' Full Year 2009 disclosure on 9
March 2010, including notes to the financial statements to be released with
the full year accounts comprising of more information about details of the
principle agreement including underlying management assessment. If
substantial changes on the assessment were to occur, EADS performance could
be significantly impacted. EADS will provide further information of the
amended contract once the negotiations are finalized. The A400M cash flow
profile for the coming years is still to be negotiated in the contract
amendment; all parties are willing to mitigate negative cash impacts as far
as possible.
EADS considers that this agreement provides a sound basis for a successful
evolution of the A400M programme. EADS will strive to identify
opportunities to significantly reduce risks in the A400M programme and to
deliver a state-of-the-art product within the new frame of the contract.
EADS thanks the nations for the decisive support they are bringing to the
programme through this agreement.
* EADS uses EBIT pre goodwill impairment and exceptionals as a key
indicator of its economic performance. The term 'exceptionals' refers to
such items as depreciation expenses of fair value adjustments relating to
the EADS merger, the Airbus Combination and the formation of MBDA, as well
as impairment charges thereon.
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Language: English
Company: European Aeronautic Defence and Space Company EADS N.V.
P.O. Box 32008
2303 DA Leiden
Niederlande
Phone: 00 800 00 02 2002
Fax: +49 (0)89 607 - 26481
E-mail: ir@eads.net
Internet: www.eads.com
ISIN: NL0000235190
WKN: 938914
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Berlin, Düsseldorf, Hannover, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: EADS and Airbus welcome A400M agreement with customer nations
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