60

Driving successby executing our goals

Aerospace

61

Giuseppe OrsiCEO

HELICOPTERS

Driving successby executing our goals

61

62

Projected revenues at 2010

Source : FI/DMS Feb 2006

Investor Day 2006 Investor Day 2007

Revenues: €3,700 m

ROS : > 10 %

Commercial BU30%

Italy BU6%

UK BU26%

International BU30%

Gov.nmt UK 32%

Gov. International

20%Gov.nmt Ita ly

8%

Commercia l40%

Gov. USA5%

Revenues: €3,392 m

ROS : >10%

� Market growth

� Higher order intake (+ €1bn/year)

� Continuous success in commercial market and interna tional bids

USA BU8%

63

Revenue growth 2006/2010

Source : FI/DMS Feb 2006

Revenues: €2,727m

ROS : 11%

Revenues: €3,700m

ROS : > 10 %

2006 2010

Commercial BU22%

Gov.nmt Italy13%

Gov.nmt UK28%

Gov. International37%

Italy16%

UK30%

USA14%RoW

40%

UK29%

USA15%

RoW47%

Italy9%

Commercial BU30%

Italy BU6%

UK BU26%

International BU30%

USA BU8%

64

Backlog 2007 and order intake 2008-10

MAIN CONTRACTS IN BACKLOG:

Government:

• MCSP• Future Lynx• Skios• IMOS• Apache M Tads• VH 71• NH 90• AW 101 and Lynx

MAIN ORDERS OUTLOOK:

Italy:•CH 47 Army (12 u. 2008)

UK: • AW 139 SAR (15 u. 2010); • Apache IOS (2009)• IMOS (2009)

US:• VH 71 Inc. 2 (2009)

International:• A129 Turkey + EW101 INT

Commercial:

• 280 h/c

Commercial:• Almost 500 helicopters for civil market

(136 AW109 series + 144 AW139 for commercial customers)

�by BU�(total €10 bn)

�UK BU�44%

�Italy BU�7%

�USA BU�5%

�Commercial BU

�19%

�Internat. BU�25%

� by BU�(total €13 bn)

�USA BU�15% �UK BU

�24%

�Italy BU�11%

�Internat. BU�30%

�Commercial BU

�20%

�Order Intake 2008-2010

�Estimated Backlog 2007

65

0

100

200

300

2005 2006 2007 2008 2009 2010

HE

LIC

OP

TE

RS

DE

LIV

ER

Y (U

NIT

S)

Organic growth:

2010-05 = +100%

Further Increase in Industrial Output

Proven Past Performance

AW139

A109

Grand

A119

0

1000

2000

3000

4000

2005 2006 2007 2008 2009 2010

RE

VE

NU

ES

€M

2010-05 = +55% ROS consistently above 10%

CAGR 2005-2006: 13% CAGR 2006-2010: 8%

Commercial BU

UK BU

International BU

USA BU

Italy BU

CAGR 2005-2006: 24% CAGR 2006-2010: 13%

66

• Capitalise on the already established final assembly lines of Vergiate and Yeovil

• Accelerate AAC (Philadelphia) growth capability (55 helicopters in 2009)

• Support the consolidation of DENEL (South Africa) final assembly line for 109 LUH (Nigerian Air Force + various negotiations ongoing)

• Accelerate the “go live” for the production of components (first fuselage in 2008) and final assembly in China (from 2009/10 for internal market)

• Consolidate the 3 main fuselages sources (Poland, Turkey and Italy) and reinforce the supply chain to secure the timely flow of the components.

• Consolidate the AWARE (lead times) project to gain in additional productivity and efficiency;

Organic growth:Further increase in industrial output

Philadelphia

Anagni

Cascina Costa

2005 2010128 Helos 260 Helos

67

• Initial target of €50 m of saving from integration achieved.

• Extra target of €15 m by 2010. Estimate is based on the completion of the single SAP project (launched in 2007) that w ill bring enhanced efficiency and effectiveness in operations.

• Continuous improvement and alignment to best practi ce within thegroup (centres of excellence) will bring extra effi ciency.

• Increase in profitability will allow AgustaWestland to compensate for the margins dilution related to customers that work on a cost plus basis and/or do not typically allow double digit pr ofit within their procurement process (US, UK and some international customer)

• EBIT margins are therefore confirmed above 10% in 2 010

Efficiency

68

CAPEX IN 2007-2010

Maintenance 32%

Mandatory8%

Product develop.

60%

Capex (Accumulated 2007-2010 €447 m)

Capitalised R&D 2007-2010€472m

BA609 10%

AW149 49%

Grand 4%

XX9 16%

AW139 18%

EH101 3%

Total R&D (Accumulated 2007-2010 €1.23 bn)

Main CAPEX projects:- Expanded manufacturing facility in Philadelphia

– AW139: €34 m

- Expanded facility in Anagni: €11 m

- Digital manufacturing: €7 m

- Flight simulator in Sesto Calende: €6 m

- Single SAP: €23 m

Investments: R&D and CAPEX

Main R&D projects

XX9: new medium-light multirole helicopter; increased market requirement; will fill the gap between the 109 and the 139.First prototype in 2010/11.

AW149: new medium multirole helicopter; growing military and governmental needs of customers around the world; several thousand utility helicopters in the intermediate/medium categoryare flying worldwide; a vast majority need replacement.First prototype in 2009

BA 609 : first civil TILTROTOR in the world; vertical take off; speed and range comparable to fix wing.Two prototypes already flying

�Total Gross R&D Investments�2007-2010

�Private �Venture

�12%

�Cap. �Eligible for �Gov. Gr.

�27%

�Customer �funded 50%

�Capitalised�11%

69

Extensive Product Range

70

Driving successby executing our goals

Aerospace

71

Aeronautics

Giovanni BertoloneCEO

Driving successby executing our goals

72

Alenia Aeronautica: mission and goalsAlenia Aeronautica: mission and goalsAlenia Aeronautica: mission and goalsAlenia Aeronautica: mission and goals

FinmeccanicaFinmeccanicaFinmeccanicaFinmeccanica’’’’ssss leading company for aeronautics, Alenia Aeronautica is growing leading company for aeronautics, Alenia Aeronautica is growing leading company for aeronautics, Alenia Aeronautica is growing leading company for aeronautics, Alenia Aeronautica is growing as a major as a major as a major as a major global player thanks to its overall capabilities in system develglobal player thanks to its overall capabilities in system develglobal player thanks to its overall capabilities in system develglobal player thanks to its overall capabilities in system development and integration.opment and integration.opment and integration.opment and integration.

• Distinctive core Distinctive core Distinctive core Distinctive core competencescompetencescompetencescompetences

• Civil & Civil & Civil & Civil & defencedefencedefencedefencecross cross cross cross fertilisationfertilisationfertilisationfertilisation

• New role for supply New role for supply New role for supply New role for supply chain chain chain chain

• Strategic Strategic Strategic Strategic international international international international alliances alliances alliances alliances

• Major role in the Major role in the Major role in the Major role in the biggest fighter biggest fighter biggest fighter biggest fighter programmesprogrammesprogrammesprogrammes

• Independent prime Independent prime Independent prime Independent prime partner in partner in partner in partner in aerostructuresaerostructuresaerostructuresaerostructures

• World leadership in World leadership in World leadership in World leadership in tactical airlifter & tactical airlifter & tactical airlifter & tactical airlifter & advanced traineradvanced traineradvanced traineradvanced trainer

• Leading partnerships Leading partnerships Leading partnerships Leading partnerships in regional jet and in regional jet and in regional jet and in regional jet and turboprop turboprop turboprop turboprop

• EFA: EFA: EFA: EFA: Future Future Future Future Enhancement contract awarded Enhancement contract awarded Enhancement contract awarded Enhancement contract awarded (Tranche2); Saudi export contract awarded (72 a/c) (Tranche2); Saudi export contract awarded (72 a/c) (Tranche2); Saudi export contract awarded (72 a/c) (Tranche2); Saudi export contract awarded (72 a/c) JSF: second source for 1.200 wings, FACO in Italy JSF: second source for 1.200 wings, FACO in Italy JSF: second source for 1.200 wings, FACO in Italy JSF: second source for 1.200 wings, FACO in Italy

• 787: starting series production timing and quality 787: starting series production timing and quality 787: starting series production timing and quality 787: starting series production timing and quality on track deliveries from on track deliveries from on track deliveries from on track deliveries from GrottaglieGrottaglieGrottaglieGrottaglie (Italy), (Italy), (Italy), (Italy),

• C27J: JCA Contract Awarded; 14 a/c delivered to 4 C27J: JCA Contract Awarded; 14 a/c delivered to 4 C27J: JCA Contract Awarded; 14 a/c delivered to 4 C27J: JCA Contract Awarded; 14 a/c delivered to 4 countries (Italy, Greece, Lithuania and Bulgaria). countries (Italy, Greece, Lithuania and Bulgaria). countries (Italy, Greece, Lithuania and Bulgaria). countries (Italy, Greece, Lithuania and Bulgaria). M346: IAF confirmed to be launching customerM346: IAF confirmed to be launching customerM346: IAF confirmed to be launching customerM346: IAF confirmed to be launching customer

• SuperjetSuperjetSuperjetSuperjet Roll out (26 Roll out (26 Roll out (26 Roll out (26 ththththOctoberOctoberOctoberOctober), ), ), ), SuperjetSuperjetSuperjetSuperjetInternational incorporated in Venice. International incorporated in Venice. International incorporated in Venice. International incorporated in Venice.

• ATRATRATRATR---- 600 launching new version600 launching new version600 launching new version600 launching new version

What we have done inWhat we have done inWhat we have done inWhat we have done in one yearone yearone yearone year

………… thus growth and profitability targets confirmedthus growth and profitability targets confirmedthus growth and profitability targets confirmedthus growth and profitability targets confirmed

+ 90+ 90+ 90+ 90----100% revenues growth 100% revenues growth 100% revenues growth 100% revenues growth for 2006 for 2006 for 2006 for 2006 ----’’’’10101010

Investor Day 2006Investor Day 2006Investor Day 2006Investor Day 2006+ 90+ 90+ 90+ 90----100% revenues growth 100% revenues growth 100% revenues growth 100% revenues growth

for 2006 for 2006 for 2006 for 2006 ----’’’’10101010

Investor Day 2007Investor Day 2007Investor Day 2007Investor Day 2007

vsvsvsvsWhat we said last yearWhat we said last yearWhat we said last yearWhat we said last year

73

76%

17%7%

Europe

ROW

USA

Fighters/Trainers44%

Aerostructures20%

Regional 19%Transport /Special

Mission 17%

Revenues breakdown and targetRevenues breakdown and targetRevenues breakdown and targetRevenues breakdown and target2006 and forecast 20102006 and forecast 20102006 and forecast 20102006 and forecast 2010

REVENUESREVENUESREVENUESREVENUES 2006200620062006: : : :

€€€€1,908 m1,908 m1,908 m1,908 m

Revenues 2006 by AreaRevenues 2006 by AreaRevenues 2006 by AreaRevenues 2006 by Area

58%26%

16%

EuropeUSA

ROW

Revenues 2010 by AreaRevenues 2010 by AreaRevenues 2010 by AreaRevenues 2010 by Area

Fighters/Trainers30%

Aerostructures30%

Regional 22%Transport /Special

Mission 18%

Increase 90Increase 90Increase 90Increase 90---- 100% 100% 100% 100%

EBITEBITEBITEBIT 2006200620062006: : : : €€€€203 m203 m203 m203 m

ROS:ROS:ROS:ROS: 10.6% 10.6% 10.6% 10.6% ROS:ROS:ROS:ROS: ~~~~ 11%11%11%11%

REVENUES 2010REVENUES 2010REVENUES 2010REVENUES 2010::::aroundaroundaroundaround 70% 70% 70% 70% derivesderivesderivesderivesfrom current backlogfrom current backlogfrom current backlogfrom current backlog ((((~~~~ €€€€7777.5.5.5.5 bnbnbnbn))))

74

The The The The growthgrowthgrowthgrowth at a at a at a at a glanceglanceglanceglance

Company revenues growth mainly driven by the performance of JCA/C27J, M346, ATR, Superjetand, naturally, of B787…

CAGR: 11%CAGR: 11%CAGR: 11%CAGR: 11%

CAGR: CAGR: CAGR: CAGR: ~~~~ 19%19%19%19%

€€€€29 29 29 29 bnbnbnbn

€€€€1111.9.9.9.9 bnbnbnbn

Aeronautics Target Market € bn

Aeronautics Revenues € bn

€€€€19 19 19 19 bnbnbnbn

…………is expected to exceed is expected to exceed is expected to exceed is expected to exceed target market growthtarget market growthtarget market growthtarget market growth

�2006 �2007 �2008 �2009 �2010

Aerostructures

Fighter&Trainer

Transport & Special Miss.

Regional

�2006 �2007 �2008 �2009 �2010

Aerostructures

Fighter&Trainer

Transport & Special Miss.

Regional

75

Main products portfolio evolutionMain products portfolio evolutionMain products portfolio evolutionMain products portfolio evolution

SecuredOpportunity

2006200620062006 07070707 08080808 09090909 2010201020102010 11111111 12121212 13131313 14141414 2015201520152015 >2016>2016>2016>2016

SuperjetSuperjetSuperjetSuperjet100100100100

JSFJSFJSFJSF

787787787787

Next generation civil Next generation civil Next generation civil Next generation civil programmesprogrammesprogrammesprogrammes

CCCC----27J27J27J27J

EurofighterEurofighterEurofighterEurofighter

ATRATRATRATR

M346M346M346M346

Major Components >50 SS/year, Aircraft delivery >10 SS/year / Saudi Export

Major Components >50 SS/year, Aircraft delivery >10 SS/year / Saudi Export

Volumes “full capacity”Volumes “full capacity”Escalation volumesEscalation volumes

Low Rate Initial production , Escalation volumes and Volumes “full capacity” (90-100 SS/year)

Low Rate Initial production , Escalation volumes and Volumes “full capacity” (90-100 SS/year)

SDD PhaseSDD Phase

SCAC participation for Product Improvement, High Tech ComponentsSCAC participation for Product Improvement, High Tech Components

Up to 207 A/C Joint Cargo Aircraft Intl customersUp to 207 A/C Joint Cargo Aircraft Intl customers

Volumes ATR up to 80 SS/year / ATR72-600 launchedVolumes ATR up to 80 SS/year / ATR72-600 launched

Series production phase For Italian Air Force and Intl. customers

Series production phase For Italian Air Force and Intl. customers

C27J Italy, Greece, Bulgaria, Lithuania, Other OrdersC27J Italy, Greece, Bulgaria, Lithuania, Other Orders

2016201620162016

UAV, UCAVUAV, UCAVUAV, UCAVUAV, UCAVUAS Systems)

Tranche 3

JCA 2 A/C +JCA 2 A/C +JCA 2 A/C +JCA 2 A/C +

DevelopmentDevelopment

Superjet Intl. Western sales, Worldwide after-salesSuperjet Intl. Western sales, Worldwide after-sales

Sky-x, Sky-y (Company Demonstrator)Sky-x, Sky-y (Company Demonstrator)

Devel.Devel.

Neuron (Intl. Tecnology Demonstrator)

Involvement in new programmes adequate to company capability/profitability

A350 Next generation Narrow body

76

INTERNAL ORGANISATIONINTERNAL ORGANISATIONINTERNAL ORGANISATIONINTERNAL ORGANISATION4Focus Technology Focus Technology Focus Technology Focus Technology on processing

aimed to a stable and lasting competitiveness (makemakemakemake----orororor----buybuybuybuy)

4Manufacturing Manufacturing Manufacturing Manufacturing rationalisationrationalisationrationalisationrationalisationmainly throughmainly throughmainly throughmainly through infra-group synergies perceiving

4Aircraft transformation business Aircraft transformation business Aircraft transformation business Aircraft transformation business (OAN) currently under (OAN) currently under (OAN) currently under (OAN) currently under restructuringrestructuringrestructuringrestructuring

4Increase riskriskriskrisk----sharing sharing sharing sharing partnership partnership partnership partnership with selected suppliers;

4VerticalisationVerticalisationVerticalisationVerticalisation of packages; “Global Global Global Global SourcingSourcingSourcingSourcing” strong increase

4Full deployment of Alenia Networked Alenia Networked Alenia Networked Alenia Networked project project project project towards an““““Extended Extended Extended Extended EnterpriseEnterpriseEnterpriseEnterprise”””” integrated at system level with its stakeholders

EXTENDED EXTENDED EXTENDED EXTENDED ENTERPRISEENTERPRISEENTERPRISEENTERPRISE

4 Towards a Global Global Global Global Logistic SupportLogistic SupportLogistic SupportLogistic Support model to deliver standardisedgoods and services

SUPPLY CHAINSUPPLY CHAINSUPPLY CHAINSUPPLY CHAININDUSTRIAL REORGANISATIONINDUSTRIAL REORGANISATIONINDUSTRIAL REORGANISATIONINDUSTRIAL REORGANISATION

CONTINUOUS IMPROVEMENT ACTIONS

THROUGH LIFE THROUGH LIFE THROUGH LIFE THROUGH LIFE LOGISTIC LOGISTIC LOGISTIC LOGISTIC SUPPORTSUPPORTSUPPORTSUPPORT

4Focus on G&A/ICT costs efficiencyFocus on G&A/ICT costs efficiencyFocus on G&A/ICT costs efficiencyFocus on G&A/ICT costs efficiency, LabourLabourLabourLabour productivity productivity productivity productivity improvement, reduction of nononono----quality costsquality costsquality costsquality costs,optimisation of offoffoffoff----load load load load costs

Achieving Achieving Achieving Achieving improved performance:performance:performance:performance:focus on efficiencyfocus on efficiencyfocus on efficiencyfocus on efficiency

Savings

2007-2010

˜ €60 m 56%

44%of

which…20082008200820082010201020102010

2009200920092009

StructuralStructuralStructuralStructural

Continuous Continuous Continuous Continuous improvementimprovementimprovementimprovement

STRUCTURAL ACTIONSSTRUCTURAL ACTIONSSTRUCTURAL ACTIONSSTRUCTURAL ACTIONS

77

Investments: R&D and CAPEXInvestments: R&D and CAPEXInvestments: R&D and CAPEXInvestments: R&D and CAPEXCapex (Accumulated 2007- 2010 ˜ €1.5 bn)

Total R&D (Accumulated 2007-2010 ˜ €1.7 bn)CapitalisedCapitalisedCapitalisedCapitalised breakdownbreakdownbreakdownbreakdown

�Main Investments are Main Investments are Main Investments are Main Investments are

related to related to related to related to programmesprogrammesprogrammesprogrammes

supported by brilliant supported by brilliant supported by brilliant supported by brilliant

market and profitability market and profitability market and profitability market and profitability

perspectivesperspectivesperspectivesperspectives

�Significant R&D Significant R&D Significant R&D Significant R&D

activities mainly activities mainly activities mainly activities mainly

related to related to related to related to programmeprogrammeprogrammeprogramme

development or development or development or development or

customer fundedcustomer fundedcustomer fundedcustomer funded

Mandatory 4%Mandatory 4%Mandatory 4%Mandatory 4%Maintenance 6%Maintenance 6%Maintenance 6%Maintenance 6%

Product Development 90%Product Development 90%Product Development 90%Product Development 90%

Customer funded 31%Customer funded 31%Customer funded 31%Customer funded 31%

CapitalisedCapitalisedCapitalisedCapitalised 62%62%62%62%

Expensed 7%Expensed 7%Expensed 7%Expensed 7% AerostructuresAerostructuresAerostructuresAerostructures 35%35%35%35%

Fighters, Trainers 30%Fighters, Trainers 30%Fighters, Trainers 30%Fighters, Trainers 30%

Transport &Transport &Transport &Transport &Special Missions Special Missions Special Missions Special Missions

25%25%25%25%

Regional 10%Regional 10%Regional 10%Regional 10%

78

B 787 highlights B 787 highlights B 787 highlights B 787 highlights

� IndustrialIndustrialIndustrialIndustrial�GrottaglieGrottaglieGrottaglieGrottaglie Plant startPlant startPlant startPlant start----up phase successfully up phase successfully up phase successfully up phase successfully

completed, confirming validity of highly innovative completed, confirming validity of highly innovative completed, confirming validity of highly innovative completed, confirming validity of highly innovative and automatic industrial processes;and automatic industrial processes;and automatic industrial processes;and automatic industrial processes;

�Customer Customer Customer Customer recognisedrecognisedrecognisedrecognised extremely high product extremely high product extremely high product extremely high product excellence since the first barrel manufactured excellence since the first barrel manufactured excellence since the first barrel manufactured excellence since the first barrel manufactured

�CommercialCommercialCommercialCommercial� ~~~~ 750 750 750 750 a/c orders already awarded by Boeinga/c orders already awarded by Boeinga/c orders already awarded by Boeinga/c orders already awarded by Boeing�Aeronautics basic Business Plan based on 800 Aeronautics basic Business Plan based on 800 Aeronautics basic Business Plan based on 800 Aeronautics basic Business Plan based on 800

shipsetsshipsetsshipsetsshipsets�300 300 300 300 shipsetshipsetshipsetshipset orders booked so farorders booked so farorders booked so farorders booked so far

(i.e. revenues until 2010)(i.e. revenues until 2010)(i.e. revenues until 2010)(i.e. revenues until 2010)�Financial (Financial (Financial (Financial (€€€€m)m)m)m) by 2007by 2007by 2007by 2007 until 2010until 2010until 2010until 2010�InvestmentsInvestmentsInvestmentsInvestments 690690690690 ~~~~ 1000100010001000

Of whichOf whichOf whichOf which

* * * * CapexCapexCapexCapex 520520520520 ~~~~ 700700700700* R&D* R&D* R&D* R&D 170170170170 300300300300

�Revenues Revenues Revenues Revenues ~ ~ ~ ~ 150150150150 ~~~~ 1500150015001500

�ProgrammeProgrammeProgrammeProgramme ProfitabilityProfitabilityProfitabilityProfitability expected in expected in expected in expected in line with Company average by 2011line with Company average by 2011line with Company average by 2011line with Company average by 2011----2012; possible upside beyond 2012 2012; possible upside beyond 2012 2012; possible upside beyond 2012 2012; possible upside beyond 2012 due to processes and technologies due to processes and technologies due to processes and technologies due to processes and technologies currently being researched and currently being researched and currently being researched and currently being researched and developeddevelopeddevelopeddeveloped

79

$ $ $ $ HedgingHedgingHedgingHedging�Natural hedge for 50%; potential increase will be pursuedNatural hedge for 50%; potential increase will be pursuedNatural hedge for 50%; potential increase will be pursuedNatural hedge for 50%; potential increase will be pursued

�Partnership with Boeing is Strategic and LongPartnership with Boeing is Strategic and LongPartnership with Boeing is Strategic and LongPartnership with Boeing is Strategic and Long----term ... term ... term ... term ... working together to achieve shared and balanced solutionworking together to achieve shared and balanced solutionworking together to achieve shared and balanced solutionworking together to achieve shared and balanced solution

B 787 highlights B 787 highlights B 787 highlights B 787 highlights

81

Space Services

Giuseppe VerediceCEO

Driving successby executing our goals

82

Telespazio:On track for delivering value

Disclosed Goals� 2010E Revenues €550 m

Disclosed Goals� 2010E Revenues €550 m� 2010E Ebit Margin 11-12%

Investor DayLondon November 20th, 2006

Investor DayLondon November 20th, 2006

Investor DayCascina Costa November 26th, 2007

Investor DayCascina Costa November 26th, 2007

�Satellite capacity availability

�Value Added Services market exploitation

�COSMO first satellite successfully launched

�New Institutional “Large Programmes”

One year after:One year after:

�Sicral 1b contract awarded, Sicral 2 and Athena Fidus Programmes in progress

�New Applications development on going

�Market exploitation of high quality radar imagery

�Ground Segment development activity growth expected

83

2006 - 2010Growth and business change

1%

27%56%

16%Network & Connectivity

Navigation & Infomobility

Satellite Operations &ProgramsEarth Observation

East Europe

1%South

America2%

Germany10%

France7%

Italy80% Italy

75%

France12%

Germany6%

South America

4%

East Europe

3%

20%15%

Cosmo17%

EGNOS/Galileo

8%

SICRALs11%

38%

2006€360 m2006

€360 m2010E€550 m2010E€550 m

By Business AreaBy Business Area

By geographic AreaBy geographic Area

84

Revenues growth

360

30

60

30

90

40

2006 2010E

€ m

550

45% of 2010 Revenues come from Strategic Drivers45% of 2010 Revenues come from Strategic Drivers

EGNOS/Galileo: Navigation & Infomobility solutions and applications, Galileo Test Range, Satellite Operations

SICRALs: Telecommunication services for European defence customers, System Development, Satellite Operations

BroadBand based Value Added Services

COSMO SkyMed: Worldwide Satellite Radar Data sales, Satellite Radar based advanced applications, System Development, Satellite Operations

Geo-Database: Geo-Information Services on-demand

~290

85

Ebit margin improvement

27.6

57-63

7.6%

11-12%

2006 2010E

Ebit Ebit %

Ebit% increases of ~4 percentage points thanks to:

�Business mix change:� Decrease of third party satellite capacity reselling� Increase of connectivity offer based on “proprietary”

satellite capacity (Sicrals’, Athena Fidus)� Growth of Value Added Services offer based on

advanced satellite systems (Cosmo, EGNOS/Galileo)

� Growth of Value Added Services offer based on advanced solutions (BroadBand, Geo-Data Base)

� “Large Programmes” Ground Segment engineering development

�Efficiency gain from “Standard Portfolio” Sales & Marketing approach

�Decrease of G&A expenditures as % of Revenues: ~2 percentage points

Ebit increases at 20% CAGREbit increases at 20% CAGR

€ m

86

Investments: R&D and CAPEX

33%

55%

11%

1%

Capex (Accumulated 2007-2010 in €250 m)Capex (Accumulated 2007-2010 in €250 m) Total R&D (Accumulated 2007-2010 in €70 m)Total R&D (Accumulated 2007-2010 in €70 m)

Customer Funded

54%

Expensed46%

No Capitalised R&D Investments

Expected Accumulated Revenues 2008 – 2016 - €1.8 bnExpected Accumulated Revenues 2008 – 2016 - €1.8 bn

�Satellite Capacity (SICRALs, Athena Fidus) €0.4 bn

�Galileo/EGNOS and Navigation & Infomobility Applicat ions, Galileo Development) €0.5 bn

�Geo Data Base Development €0.3 bn

�BroadBand based Applications €0.6 bn

Maintenance

Mandatory

SatelliteCapacity

Product Development