Aerospatiale Matra Says 1999 Sales, Orders Up (Jan. 21)
AEROSPATIALE MATRA is a French-based private company, operating on a global scale in four business sectors: **Aircraft (airplanes, helicopters, services) **Defense (strategic missiles and missile systems) **Space (satellites, launch vehicles, orbital infrastructures) **Systems, Services and Telecommunications (networks, C3I systems, encrypted radio-communications)
The company has 56,500 employees, including nearly 10,000 outside of France. The pro-forma sales 1998 were Euro 12,393 billion (FF 80.634 billion), including 70 percent in export markets. The 1999 sales will be about FF 85 billion (FF 25.7 billion for aircraft activities, FF 36 billion for Airbus activities, FF 7.4 billion for missiles systems, FF 10 billion for space activitiés and 5.7 billion for Systems, Services and Telecommunications.
In 1999 Aerospatiale Matra booked orders of more than Euro 15 billion (FF 100.billion) including FF 37 billion for Airbus, FF 20 billion for Eurocopter, FF 15 billion for missiles systems, FF 5 billion for telecommunications and FF 10 billion for space. At the end of 1999, the order book was up to Euro 37 billion (FF 45 billion), nearly 3 years of activities.
Business highlights this past year included: **A record-breaking year by Airbus, with firm orders for 476 aircraft, equal to 55 percent of the world market. **The signature of a production contract for a first batch of 160 Tiger helicopters for France and Germany. **PAAMS (Principal Anti-Air Missile System) program, launched on August 11, with the announcement of a 14 billion franc contract awarded by French defense procurement agency DGA (acting on behalf of France, the UK and Italy) to Europaams, a company formed by Aerospatiale Matra Missiles, Alenia Marconi Systems, Matra BAe Dynamics and Thomson-CSF.
Aerospatiale Matra was listed on the Paris Bourse Monthly Settlement Market on June 4, 1999, and was included in the CAC 40 index on November 5. Stock market capitalization for 1999 was 8.6 billion euros. Shareholders: **Lagardère, the core shareholder with 33% **the French State, 47.7% **Floating (employees + public and institutional investors): 19.3%
Aerospatiale Matra is both prime contractor and principal partner, acting through group companies and subsidiaries, including Aerospatiale Matra Airbus, Aerospatiale Matra ATR, Socata, Sogerma, Eurocopter, Aerospatiale Matra Lanceurs, Matra Marconi Space, Matra BAe Dynamics, Aerospatiale Matra Missiles, Multicoms, Matra Nortel Communications, Matranet, MSI (Matra Systèmes et Informations) and Matra Groslier Network.
Aerospatiale Matra is a major player in all significant European aerospace and defense programs : **Aircraft: Airbus, ATR, TB and TBM families and A400M, as well as Falcon, Mirage and Rafale (through company's stake in Dassault Aviation) **Satellites: Envisat, Intelsat, Helios, etc. **Launchers: Ariane 4, Ariane 5 **Helicopters: NH 90, Tiger, EC 155, etc. **Missiles: Aster, Apache, Eryx, Meteor, Storm Shadow, etc.
For over 30 years, Aerospatiale Matra has teamed up with major companies throughout Europe, including BAe Systems, DASA, CASA and Finmeccanica.
Aerospatiale is now the second largest aerospace and defense company in Europe, and Number 5 worldwide, with leading international positions in its core businesses: **No. 1 in helicopters and in commercial launch vehicles **No. 2 in commercial jetliners, satellites and tactical missiles.
On October 14, 1999, DaimlerChrysler, Lagardère group and the French government announced an agreement for the merger of the aerospace and defense businesses of Aerospatiale Matra and DaimlerChrysler Aerospace (DASA), as the European Aeronautic, Defense and Space company (EADS). On December 2, the Spanish company SEPI decided to join CASA activities to EADS, further strengthening the new group, now Number 3 worldwide.
AIRCRAFT Aerospatiale Matra's aircraft business generates more than half of the company's sales. Comprising five subsidiaries Aerospatiale Matra Airbus, Aerospatiale Matra ATR, Socata, Sogerma and Eurocopter it covers all aspects of this sector: civilian aircraft from 4 to nearly 400 seats, aircraft maintenance, repair and overhaul (MRO), civil and military helicopters (Eurocopter) and combat aircraft. AEROSPATIALE MATRA AIRBUS Aerospatiale Matra is one of the lead partners in Airbus Industrie, with a 37.9% share, on an equal footing with DaimlerChrysler Aerospace Airbus, and alongside BAe Systems (20%) and CASA (4.2%). Aerospatiale Matra Airbus, a wholly-owned subsidiary of Aerospatiale Matra, has 13,100 employees and operates four industrial facilities, at Méaulte, Nantes, Saint-Nazaire and Toulouse. It spans the entire aircraft production process, from design and development (including the flight deck), to production, final assembly line and through-life technical monitoring. Highlights For 1999 **476 firm Airbus orders and 294 delivered **Delivery of the 1,000th aircraft in the A320 family, and the 2,000th Airbus jetliner. **Launch of the A318, and first orders booked. · **Assembly of the first A340-600 subassemblies in Nantes. **Green light for preliminary marketing of the A3XX to major airlines.
AEROSPATIALE MATRA ATR Aerospatiale Matra ATR, a wholly-owned subsidiary of Aerospatiale Matra, is the regional aircraft specialist. In a 50/50 partnership with Alenia/Aerospazio of the Italian group Finmeccanica, Aerospatiale Matra ATR which has 500 employees - designs and produces twin-turboprops with 40 to 70 seats, the ATR 42 and ATR 72, at plants in, Nantes, Saint-Nazaire and Toulouse. These aircraft are sold by the ATR consortium. Highlights For 1999 **Aerospatiale Matra ATR met its goal by booking 30 orders, along with the sale of 13 pre-owned aircraft, and 30 in leasing arrangements. During the year, it delivered a total of 35 ATRs (12 ATR 42 and 23 ATR 72), including the first deliveries to India. **Since the outset of this program, a total of 613 ATR regional aircraft have been sold throughout the world.
SOCATA Socata, is a wholly-owned subsidiary of Aerospatiale Matra which employs more than 750 persons for aerostructure activities and design and production of light aircraft for training and other missions. The 4/5-seater TB range includes the single-engine TB 9, TB 10, TB 200, TB 20 and TB 21, as well as the twin-engine TB 360. The TBM 700 is high performance, pressurized business aircraft, capable of many missions (liaison, training, freight, evacuation, aerial photographies...) Highlights For 1999 **16 TBM 700 and 21 TB series aircraft sold. **21 TBM 700 (including the first large-door model) and 21 TB models delivered. **Launch of the special TB 10 Privilege" series **Socata continues its marketing push in the United States.
SOGERMA Sogerma, a wholly-owned subsidiary of Aerospatiale Matra, provides a wide range of engineering, production and maintenance services: Civil and military aircraft engineering and maintenance in the international market. Equipment design and manufacture. Maintenance of Pratt & Whitney turboprops. Design and production of composite parts for the aircraft, automotive and rail industries. Sogerma is also one of the world's leading providers of landing gear maintenance, repair and overhaul services for both large and small aircraft. More than 3500 employees work for Socata whic sales for 1999 increased by nearly 9 % with regard to 1998 (Euro : 413 million) . Highlights For 1999 **100 converted aircraft delivered. **Sogerma reorganized into two business units: Airbus equipment and military aircraft. **Agreement with Lockheed Martin, expanding Sogerma's scope of activity on C-130 transports.
EUROCOPTER Eurocopter, a jointly-owned subsidiary of Aerospatiale Matra (70%) and DaimlerChrysler Aerospace (30%), is the world's leading helicopter manufacturer for the fourth year in a row, with a turnover of Euro 1.78 million (FF 11.3 billion) and Euro 3.156 million (over than FF 20 million)of consolidated orders more than half for the Tiger. Eurocopter offers a particularly broad range of machines, from light single-engine models (EC 120 Colibri, Ecureuil), light twins (BO 105, EC 135, BK 117) and medium twins (Dauphin, EC 155), to the 10-ton class Super Puma and combat helicopters (Tiger, NH 90). Highlights For 1999 **382 helicopters sold contract for a first batch of 160 Tiger helicopters for France and Germany **Delivery of 241 new helicopters, including the 100th EC 135, the 500th Super Puma and the first EC 155, latest member of the Dauphin family.
MISSILE SYSTEMS Aerospatiale Matra is the leading European manufacturer of tactical missiles, and Number 2 worldwide based in terms of sales. The group's missiles and missile systems activities are now concentrated in Matra BAe Dynamics (equally owned by Aerospatiale Matra and British Aerospace) and in Aerospatiale Matra Missiles (a wholly-owned subsidiary of Aerospatiale Matra). Matra BAe Dynamics also has a 30% share of LFK, a DaimlerChrysler Aerospace subsidiary which is the German leader in this sector. Aerospatiale Matra's missiles business now has backlog of orders equal to four years of sales. It generates 53% of total revenues on export markets. Now under development at Matra BAe Dynamics and Aerospatiale Matra Missiles are some 20 major missile, missile system, drone and airborne countermeasure programs. Another 25 major programs are already in volume production. A few of these programs are listed below: **Air-to-ground missiles: Scalp/Storm Shadow, Apache cruise missiles ; laser-guided: AS 30L laser-guided missiles, ASMP missile with nuclear warhead **Air-to-air missiles: Mica, ASRAAM, Meteor, Magic, etc. **Air defense/antimissile missiles: Aster/PAAMS, Roland, Rapier, Mistral. **Antiship missiles: ANF, NSM, Exocet, Otomat, etc. **Antitank missiles: Trigat, Eryx, Milan, Hot, etc. **Drone/RPV systems: Piver CL-289, Brevel, Eagle, etc.
These two entities are prime contractors for the world's largest range of tactical misiles. They are involved in virtually all European programs, and have developed strong links with most of their counterparts in the sector. On October 20, 1999, Aerospatiale Matra, British Aerospace (BAe) and Finmeccanica signed an agreement providing for the creation of a joint missiles company. This new company will consolidate the operations of Aerospatiale Matra Missiles, Matra BAe Dynamics and Alenia Marconi Systems (equally owned by Marconi Electronic Systems and Finmeccanica). The new European missile systems group will generate annual sales of 2.5 billion euros, with more than 10,000 employees in Italy, the United Kingdom and France. It will also hold 30% of the main German guided missile business, LFK, now held by MBD. Highlights For 1999 **Contract from the Italian government to provide Storm Shadow cruise missiles for Eurofighter and Tornado aircraft. **Signature of a contract worth over 2 billion francs to supply Rapier Mark 2 anti-aircraft missiles. **Signature of the Roland missile upgrade contract. **Following France and Germany, Britain confirms a united European determination to launch the Trigat program.
SPACE Aerospatiale Matra is one of the leading space companies in the world. It operates through two subsidiaries: Aerospatiale Matra Lanceurs (launch vehicle and strategic missiles unit), and Matra Marconi Space. Offering a comprehensive range of space skills and expertise, Aerospatiale Matra will play a pivotal role in European industry consolidation. Aerospatiale Matra Lanceurs, a wholly-owned subsidiary of Aerospatiale Matra, is the industrial architect and systems integrator for all Ariane launchers. As the major supplier to launch marketing and production management company Arianespace, it supports all Ariane design and production prime contractors. Aerospatiale Matra Lanceurs is also prime contractor for France's strategic missiles. To complete its launchers'offer, Aerospatiale Matra created with the Russian RKA and TsSKB Progress and Arianespace, the Starsem company which commercialises Soyuz launchers. Matra Marconi Space, an equally-owned subsidiary of Aerospatiale Matra and GEC, groups the company's satellite and space systems operations. It has been prime contractor for 59 satellites launched to date, and is active in telecommunications, scientific, Earth observation and military programs, as well as launch vehicles and orbital infrastructures. These two companies have a number of operations in common, providing complementary products and services for launchers (vehicle equipment bay and stages for Ariane) and orbital infrastructures. Aerospatiale Matra is the European leader in launch vehicles and satellites. On October 18, 1999, Aerospatiale Matra (Paris), DaimlerChrysler Aerospace (DASA, Munich) and Marconi Electronic Systems (London) signed an agreement provinding for the consolidation of their space operations within a new European company, Astrium. Official launch of the new company is expected this year, following approval by the European Commission. And during the next few months, Astrium will further enhance its capabilitites by adding Alenia Spazio, part of the Italian group Finmeccanica. Highlights For 1999 **Nine Ariane 4 launches during the year. **First Ariane 5 commercial launch a complete success. **Arianespace places an order with Aerospatiale Matra Lanceurs for 20 Ariane 5s (total now 36). **Signature of the Mars Express contract. **Launch of Helios 2. **In January 2000, Matra Marconi Space is chosen by Intelsat to supply the largest and most powerful satellite ever ordered by this international organization.
SYSTEMES SERVICES AND TELECOMMUNICATIONS Created on September 1, 1999, Aerospatiale Matra'Systems, Services and Telecommunications business which generates annual sales about FF 9 billion and employs some 8,300 people has been organized into 5 operating units and a Major Operational Systems Management : **C4ISR (Commande, Contrôle, Communication, Computer, Intelligence, Surveillance, Renseignement) is the heart of the business in terms of information technologies and command systems. It includes the subsidiaries MS&I, APIC, Fleximage and ISTAR **Services and Tests comprises testing activities and the subsidiaries APSYS, CRIS, G2i and Sycomore **Design and production comprises Matra Datavision and its subsidiaries **Internet and Operators Services comprises Matranet, MCNSat Holding, MGN and Multicoms. **Telecoms includes Intecom and Matra Nortel Communication. This unit oversees secure private mobile radio activities worldwide. In France, it is in charge of all government, enterprise and operator sectors, and switching, transmission and access technologies for voice and data on both fixed and mobile networks. In cooperation with the other sectors of Aerospatiale Matra and AMLI, the Systems, services and telecommunications' Major Operational Systems Management, proposes global solutions. For instance if a country requests at the same time a helicopter brigade with Air Surveillance functions and a command and communication ground based system, the Group will be able to propose, beyond traditional technologies and services, an integrated coordinated solution. Highlights For 1999 **Delivery of 12 ATEC Series 6 test benches **Contract awarded by Renault to install computer-aided engineering solutions **Growth of PMR business and signature of a major contract concerning the national Mexican secure radio-communications.
