Aerospace Defence Sector

Aerospace and Defence
Strictly Private and Confidential November 2012

Index 2
Introduction .................................................................................................................................................................................................. Page 7
Section I: Analysis of the Aerospace & Defence sectors
1. Overview on the global market.................................................................................................................................................

Overview ........................................................................................................................................................................................ Page 10
A&D Market………………………………………………………………………………………………………. Page 11
Performance A&D Industry……………………………………………………………………………………….. Page 14
Aerospace Supply Chain…………………………………………………………………………………………… Page 17
Aerospace Supply Chain Components……………………………………………………………………………... Page 21
Outlook A&D Industry……………………………………………………………………………………………. Page 26
Global Merger and Acquisitions…………………………………………………………………………………… Page 27
Global R&D ………………………………………………………………………………………………………. Page 37
A&D Sectors………………………………………………………………………………………………………. Page 40
Commercial Aviation Market ……………………………………………………………………………… Page 41
Commercial Aircraft……………………………………………………………………………………….. Page 51
Regional Aircraft…………………………………………………………………………………………... Page 56
Business Jet………………………………………………………………………………………………... Page 59
Rotorcraft…………………………………………………………………………………………………. Page 61
Defence Market……………………………………………………………………………………………. Page 63
Space Market………………………………………………………………………………………………. Page 71
2. The US Aerospace & Defence industry ……...................................................................................................................... Page 87

US A&D Market…………………………………………………………………………………………………… Page 88
US Industrial R&D ……………………………………………………………………………………………….. Page 92
US Commercial Aviation…………………………………………………………………………………………... Page 95
US Global Commercial Aviation Forecast…………………………………………………………………………. Page 97
US Defence Sector………………………………………………………………………………………………… Page 98
US Space Sector…………………………………………………………………………………………………… Page 107
Index 3
3. The European Aerospace & Defence Industry ................................................................................................................. Page 113

European Global A&D Market……………………………………………………………………………………. Page 114
European Aeronautic Sector………………………………………………………………………………………. Page 126
European Aeronautic Sector – EGAMA…………………………………………………………………………... Page 131
European Space Sector ……………………………………………………………………………………………. Page 136
European Defence Sector…………………………………………………………………………………………. Page 143
European R&D Investments………………………………………………………………………………………. Page 146
4. TheItalian Aerospace & Defence Industry ........................................................................................................................ Page 149

Italian A&D Market Overview……………………………………………………………………………………... Page 150
Italian Civil Industry Overview…………………………………………………………………………………….. Page 153
Italian Defence Market Overview………………………………………………………………………………….. Page 157
Italian Space Market Overview……………………………………………………………………………………... Page 160
Appendix…………………………………………………………………………………………………………. Page 163

BRIC Countries……………………………………………………………………………………………………. Page 164
Brazilian A&D Market……………………………………………………………………………………………... Page 165
Russian A&D Market……………………………………………………………………………………………… Page 166
Indian A&D Market……………………………………………………………………………………………….. Page 170
Chinese A&D Market……………………………………………………………………………………………… Page 172
Index 4
Section II: Listed Players
Grouping Criteria And Companies’ Analysis………………………………………………………………………. Page 176

Players with revenues higher than € 10 billion……………………………………………………………………… Page 178
Boeing Co………………………………………………………………………………………………….. Page 180
EADS NV…………………………………………………………………………………………………. Page 187
United Technologies Corp………………………………………………………………………………… Page 194
Lockheed Martin Corp……………………………………………………………………………………. Page 201
Honeywell International Inc……………………………………………………………………………….. Page 210
General Dynamics Inc……………………………………………………………………………………... Page 218
BAE Systems plc…………………………………………………………………………………………... Page 225
Northrop Grumman Corp………………………………………………………………………………… Page 232
Raytheon Company………………………………………………………………………………………... Page 239
Finmeccanica SpA…………………………………………………………………………………………. Page 247
Rolls-Royce Holdings Plc ………………………………………………………………………..………… Page 255
Bombardier Inc…………………………………………………………………………………………….. Page 261
Thales SA………………………………………………………………………………….………………. Page 267
Safran SA……………………………………………………………………………………….………….. Page 274
L-3 Communications Holdings…………………………………………………………………………….. Page 281
Players with revenues between € 10 billion and € 1 billion………………………………………………………….. Page 288
Goodrich Corp…………………………………………………………………………………………….. Page 290
Huntington Ingalls Industries……………………………………………………………………………… Page 296
Embraer SA……………………………………………………………………………………………….. Page 302
Spirit Aerosystems Holding………………………………………………………………………………... Page 308
Rockwell Collins Inc………………………………………………………………………………………... Page 314
Alliant Techsystems Inc……………………………………………………………………………………. Page 320
Dassault Aviation SA………………………………………………………………………………………. Page 327
MTU Aero Engines Holding……………………………………………………………………………… Page 333
Zodiac Aerospace…………………………………………………………………………………………. Page 339
Index 5
SAAB AB-B……………………………………………………………………………………………….. Page 345

Triumph Group Inc………………………………………………………………………………………... Page 351
BBA Aviation plc…………………………………………………………………………………………... Page 357
Cobham plc………………………………………………………………………………………………... Page 363
Kongsberg Gruppen ASA………………………………………………………………………………….. Page 370
B/E Aerospace Inc………………………………………………………………………………………… Page 376
QinetiQ Group plc………………………………………………………………………………………… Page 382
Meggit plc………………………………………………………………………………………………….. Page 388
AAR Corp…………………………………………………………………………………………………. Page 394
Curtiss-Wright Corp……………………………………………………………………………………….. Page 400
Teledyne Technologies Inc…………………………………………………………………………………. Page 406
CAE Inc…………………………………………………………………………………………………… Page 412
Esterline Technologies Corp………………………………………………………………………………. Page 418
XI’an Aircraft International Corp………………………………………………………………………….. Page 424
Orbital Sciences Corp……………………………………………………………………………………… Page 426
Players with revenues between € 1 billion and € 100 million……………………………………….............................. Page 432
Cubic Corp………………………………………………………………………………………………… Page 434
Transdigm Group Inc……………………………………………………………………………………… Page 440
Barnes Group Inc…………………………………………………………………………………………. Page 445
Chemring Group Inc………………………………………………………………………………………. Page 451
Ultra Electronics Holdings plc……………………………………………………………………………... Page 457
Senior plc…………………………………………………………………………………………………... Page 463
GenCorp Inc………………………………………………………………………………………………. Page 468
Heico Corp………………………………………………………………………………………………… Page 474
Kratos Defense & Security…………………………………………………………………………………. Page 480
Index 6
OHB AG…………………………………………………………………………………………………... Page 486

Magellan Aerospace Corp………………………………………………………………………………….. Page 492
Ducommun Inc……………………………………………………………………………………………. Page 498
Heroux-Devtek Inc………………………………………………………………………………………… Page 504
UMECO plc……………………………………………………………………………………………….. Page 510
Aerovironment Inc………………………………………………………………………………………… Page 516
Hampson Industries plc……………………………………………………………………………………. Page 522
LMI Aerospace Inc………………………………………………………………………………………… Page 528
Astronics Corp…………………………………………………………………………………………….. Page 534
Players with revenues lower than € 100 million…………………………………………………………………….. Page 540
Cohort plc………………………………………………………………………………………………… Page 542
AVCorp Industries Inc…………………………………………………………………………………….. Page 545
Breeze-Eastern Corp……………………………………………………………………………………… Page 547
CPI Aerostructures Inc……………………………………………………………………………………. Page 549
Arotech Corp……………………………………………………………………………………………… Page 552
Aerosonic Corp…………………………………………………………………………………………..... Page 555
Introduction 7
This document aims to analyze the distinctive elements and trends of the Aerospace & Defence market (“A&D”) and further
provide information on the Groups and/or the listed companies operating in this market.
Section I contains a sector analysis, initially comprising of a brief outlook of the global market and before further focusing
on the US, European and Italian markets. In particular:
 Global market: an analysis of the extent of the market and the future growth forecasts for the Defence, Civilian and
Spatial sub-markets;
 US market: an analysis of the historical and future investment trends of the Defence Department’s allocated budgets and
related unspent amounts;
 European market: an estimate of the market value and, within the years 2010-2011, highlighting the economic drivers
(revenues, employees and orders), partitioning the market into Aerospace and Defence segments;
 Italian market: an estimate of the market value and the amount of the expenses related to Research & Development
activity.
In the end it has been introduced an appendix that provides an overview on A&D market of the new economic powers
(BRIC).
Section II examines individual companies and/or the listed groups operating in this sector. The market operators have been
divided into 4 groups, based on revenue reported in their last available annual report. Included for each operator is a
description of activities, strategic development plans (completed or ongoing) and financial results as well as a subsequent
analysis of performance in relation to the previous fiscal year.
Section I: Analysis of the Aerospace & Defence sector
9
1. Overview on the global market

Overview 10
The Aerospace & Defence (A&D) sector consists of a diverse set of companies. While there are large
conglomerates that develop and manufacture a wide range of aerospace and defence products, there are
also niche players that supply specific technologies or products. The barriers to entry in this sector are high.
Limited access to specific technologies, high development costs and government support make it difficult
for new companies to break into the market.
The commercial aerospace market is comprised of a few prime contractors producing aircrafts and engines,
and numerous companies supplying sub components. In contrast, the defence market has a much more
diverse in character, ranging from conglomerates to small niche players, and from companies developing
complex software to those simply producing metal ammunition cases.
Commercial aircraft manufacturers depend on demand from the highly cyclical airlines industry, while
defence companies are heavily reliant on government military spending.
A&D market 11
The Aerospace and Defence (A&D) Industry reported its best year ever in 2011 in terms of revenue and profit on
the strength of a surging commercial aviation market that more than offset a soft defence performance.
The United States is the largest market, accounting for 60% of the global aerospace and defence sector, followed by
Europe with 34% share and Asia-Pacific with 6% share. Boeing (USA) is the leading market player with 7.4% share
of the sector’s value followed by EADS (Netherlands) with 6.5% share, Lockheed Martin Corporation (USA) with
4.9% share and BAE Systems Plc (UK) with 3.8% share.
Global aerospace and defence (A&D) Industry revenues grew overall by 2.3% in 2011, to USD 681 billion in 2011
from USD 666 billion in 2010, driven largely by increased production levels of large commercial aircraft.
A&D market 12
Reported Change
Indicators 2011 2010 (2011 vs 2010)
Revenue (US$ billion) 681 666 2.3%
Operating earnings (US$ billion) 56 58 -3.1%
Operating margin percentage 8.2% 8.7% -5.3%
ROIC percentage 16.2% 16.1% 1.0%
A&D revenue/employee (US$) 323,839 323,785 0%
A&D operating profit/employee (US$) 26,668 28,141 -5.2%
Number of A&D employees 2,103,924 2,057,405 2.3%
Source: DTTL Global Aerospace and defence Industry Performance wrap-up
* ROIC – Return on Invested Capital, A&D operating profit/employee or Employee productivity is is a more
accurate measure of a company’s efficiency compared to revenue per employee, which can skew the results and lead
to challenging interpretations of operating efficiency.
In commercial aerospace the industry is looking up, air traffic is strong and steady, driving the lucrative aftermarket
business (the industry delivered a record number of large aircraft and the orders continue, driving record backlog -
more than eight years - at current production rates).
The commercial aircraft segment in 2011 set an annual production record of 1,011 deliveries by Boeing and Airbus.
Indeed, commercial aircraft segment revenues increased by 10.1% in 2011. Commercial aircraft production levels
are anticipated to continue to set new records in 2012, building on the strong growth between 2005 and 2011 when
over 12,500 large commercial aircrafts were ordered. Demand for production is being driven by lightweight aircraft
requiring less maintenance and more fuel-efficient jet engines that reduce the fuel costs for airlines. Also, sales of
new aircrafts are being supported by increasing travel demand, especially in markets such as China, India, Brazil, and
the Middle East, where more people can afford to travel for business and leisure.
A&D market 13
The defence sector is impacted largely by United States (U.S.) uncertainty. Parts of the defence industry are declining
due to decreased military spending primarily in the U.S. and Europe.
Defence companies face more pressure than ever to improve productivity, increase transparency, respond to
increasingly complex government regulations and oversight, tighter schedules, and generally higher expectations.
Persistent security threats (i.e. the Iranian nuclear threat), and geopolitical instability, as witnessed recently in the Middle
East, underscore the need for global security and could rapidly change defence priorities.
Global defence revenues decreased by 3.3% in 2011, primarily due to affordability, competing domestic priorities, weak
economies in the western world, and the drawdown of forces in Iraq and Afghanistan. As the largest global defence
marketplace, accounting for a major portion of defence spending, the U.S. is undergoing a cyclical downturn, starting
with an announced USD 487 billion defence budget cut over the next 10 years, followed by potentially another USD
500 billion sequestration driven defence budget cut. Alternatively, defence spending is increasing in geographies such as
India, China, Japan, the United Arab Emirates (UAE), Saudi Arabia, and Brazil.
.
Performance A&D Industry 14
The A&D industry has resulted in steady revenue and earnings growth, culminating in back-to-back record years of
revenues and profit. The decline in defence revenues should be offset by cost-cutting and aggressive growth actions
taken to maintain operating margins
Top 15 global A&D companies’ first nine months 2011 vs 2010 Performance of the largest 20 companies
2011 Profit year in the A & D sector for the first nine
2011 Revenue year over over year (YoY) 2011 Operating Margin
year (YoY) percentage percentage year over year (YoY) months of 2011 show an increase of
Company change change percentage change
Boeing 2,98% 9,80% 6,62%
around 3.5% in turnover while operating
EADS 3,59% 10,92% 7,07%
margins and earnings suffered overall
Lockeed Martin 4,19% -1,23% -5,20%
General Dynamics -1,40% 0,24% 1,67% declining -5.3% and -3.7% respectively.
Northrop Grumman -6,28% 15,10% 22,82%
United Tecnologies 9,53% 16,28% 6,16% This reduction in marginsfor some major
Raytheon 0,64% 10,76% 10,05%
Finmeccanica -5,20% -178,52% 182,82% international players, will lead to greater
GE Aviation 8,74% 7,21% -1,41%
Thales -0,54% NA NA competitiveness through the
Safran 7,20% NA NA
L3 Communication -2,37% -6,90% -4,64% implementation of stringent cost
Bombardier Aerospace 15,04% 12,95% -1,82%
Goodrich 14,90% 26,05% 9,70% rationalisation programs and not least the
Honeywell Aerospace 2,63% -11,11% -13,39%
Total 3,49% -3,73% -5,25 careful selection of development
programs.
Source: DTTL Global Manufacturing Industry group analysis from the first nine months of 2011 data
for the U.S. companies and analogous documents for the European companies.
Employee productivity as measured by operating earnings per employee, although down for the entire global
Industry, showed improvement for commercial aerospace and decreased for the defence segment.
In reviewing the top 20 of global A&D companies representing 70% of the total Industry, we estimate that
commercial aerospace segment revenues grew 10.1%, while defence segment revenues decreased by 3.3%. In
addition, it estimates that commercial aerospace segment operating earnings grew 14.1%, while defence segment
operating earnings decreased 9.2%. Commercial aerospace segment employee growth was 9.2% while defence
segment employee growth was –4.0%. Finally, growth in operating earnings per employee was 4.5%, and -5.4% for
the commercial aerospace and defence segments respectively.
The following figure compares the growth performance of both the commercial aerospace and defence segments in
2011 compared to 2010.
Commercial Aerospace Defense

2011 2010 Change 2011 2010 Change
(2011 vs2010) (2011 vs 2010)
Revenue (US$ billion)* 174.8 158.8 10.1% 279.6 289.1 -3.3%
Operating Earnings (US$ billion) 14.4 12.6 14.1% 24.9 27.5 -9.2%
A&D revenue/employee (US$) 402,259 399,174 0.8% 337,795 335,373 0.7%
A&D operating profit/employee (US$) 33,154 31,731 4.5% 30,126 31,858 -5.4%
Number of A&D employees 434,302 397,859 9.2% 827,725 862,161 -4.0%
* Extrapolation of the commercial aerospace versus defense performance of the Top 20 A&D companies.
Source: DTTL Global Aerospace And defence Industry Performance wrap-up

Largest increase in revenue (US$ bil) EADS 7,73 Largest

Largest increase in revenue (percentage) Triumph Group 124% increase
Largest increase in profit (US$ bil) Thales 1,29 in top
Largest increase in profit (percentage) Thales 471% 100 list
Highest operating margin Transdigm 40.4%
Largest decrease in revenue (US$ bil) Oshkosh Defense -2,8 Largest

Largest decrease in revenue (percentage) Oshkosh Defense -39% decrease
in top
Largest decrease in profit (US$ bil) Finmeccanica -5
100 list
Largest decrease in profit (percentage) Finmeccanica -303%
Source: PWC
As highlighted by Deloitte’s report (Global Aerospace And Defense Industry Performance wrap-up; July 2012) the
unstable economy and the high public deficits in many European countries have led to a widening gap between
European and the U.S. industry
Main Indicators 2011 U.S. Europe

Revenue (US$ million) 410,2 228,3
Oerating Profit (US$ million) 43,09 10,7
Operating Margin (%) 10.05 4.07
ROIC (%) 20.07 8.07
A&D revenue/employee (US$) 1,295,533 669,9
A&D operating profit/employee (US$) 316,6 340,7
Number of A&D employees 33,3 15,9
Aerospace Supply Chain 17
TYPICAL AEROSPACE SUPPLY CHAIN
Primes/Original Equipment Manufacturers (OEM)

Includes: design, assembly, integration & serviceCompanies: Boeing,
EADS - Aibus
Tier 1 Suppliers
Includes: structure, propulsion, pneumatic system, flight control,
navigation, fuel system, electrical power, etc.
Engines: Rolls-Royce, GE Aviation
Maintenance,
Repair and Wings: BAE plc
Overhaul
Undercarriage: Smiths
Industry
Tier 2 Suppliers
Includes: suppliers of hydraulic pumps, motors, controls, etc.
Tier 3 Suppliers
Includes: suppliers of components and parts such as solenoid, piston,
O' Ring, cylinder & connectors
Aerospace supply chain broadly includes primes/original equipment manufacturers (OEMs), Tier 1 suppliers,
Tier 2 suppliers and Tier 3 suppliers. The design, manufacturing and assembly function controlled by primes (e.g.
Boeing, EADS), is the most critical component of the value chain and is characterized by stiff entry barriers due
to related high cost and technological requirements. Primes are supported by Tier 1 suppliers who are
responsible for providing them with equipments and systems such as engines, flight control systems, fuel system
etc. Tier 2 suppliers manufacture and develop parts as per the specifications provided by primes and Tier 1
suppliers, while Tier 3 vendors are responsible for supplying basic products and components to vendors that are
higher up in the hierarchy.
The Tier 1 supplier’s market comprises players such as Rolls-Royce (engines), GE Aviation (engines), and BAE
Plc (wings) who generally have exclusive supplier contracts with OEMs. Further, down the pecking order, the
industry features numerous small and medium sized firms who support Tier 1 vendors by supplying components
and subsystems.
The supply chain gets support from the aftermarket industry (Maintenance, Repair and Overhaul) which handles
the maintenance and up-gradation of an aeroplane.
The Tier I & Tier II manufacturers were impacted to a greater extent by the slowdown compared to OEMs, who
were saved by the long-term nature of their orders. But the cash position of OEMs was affected due to payment
deferrals by customers and widespread cancellation of orders, which, in turn, impacted Tier I and Tier II
manufacturers to a large extent
Cost reduction, ability to focus on core business, and increased speed to market are the main factors driving the
globalisation/outsourcing in aerospace sector manufacturing. E.g. EADS sourced aircraft components worth
US$43 billion from across the globe. The company uses European suppliers and does the final assembly in
France. Bombardier uses North American suppliers and does the final assembly in Montreal. Increasingly,
Boeing and EADS look upon themselves as large-scale system integrators rather than aeroplane manufacturers.
Further, OEM integrators such as Airbus and Boeing are shifting their production to low cost China, India,
Malaysia, Singapore and other Asian countries. It is estimated that savings of around 20 to 30 percent can be
achieved by companies even after considering the transportation and others costs.
As original equipment manufacturers (OEMs) have started to focus more on their core competencies (aircraft
overall design, architecture, integration, and final assembly and delivery to end customers), and with technology
becoming more complicated, it requires specialized services to manage MRO requests efficiently. Compared to
the 1970s-80s, when U.S carriers used to manage more than 80 percent of their aircraft maintenance in-house,
the current comparable figure is only around 20 percent. Also, OEMs are searching for avenues to reduce
manufacturing costs by outsourcing more to Tier 1 OEMs; “design to build” packages rather than just “build to
print”. This passing forward of responsibility to suppliers has reduced procurement costs, with the resultant cost
savings invested in new products, services, and capital equipment.
Airframe manufacturers and Tier 1 suppliers are becoming large scale integrators and co-coordinators of
aeroplane production, while aligning themselves to share the associated risk. The aerospace industry is moving
towards greater dependence on Tier 1s and increased risk sharing by suppliers. There is more focus on system
integration, less internal production capability, and a desire to work with a lesser number of Tier 1 primes.
Simultaneously, there has been a significant reduction in dealings with Tier 2 and Tier 3 suppliers. For instance,
Embraer had about 350 suppliers for their EMB145 aircraft, of which four were risk sharing. On the other hand,
there were 38 suppliers for Embraer’s EMB170/190 aircraft, of which 16 were risk sharing. Similarly, Rolls
Royce had about 250 suppliers for their Trent 500 engine, which came down to 140 suppliers for the Trent 900,
75 suppliers for the Trent 1000 and it is estimated that there would be only around 25 to 35 suppliers for the
engine being developed for the single aisle/narrow body aircraft.
Important is the real contrast in the growth rates globally between OEMs and suppliers, with the former lagging
by nearly five percentage points on average – and this gap looks set to widen. In 2011, suppliers globally saw
average sales growth of 10.4%, compared to just 1.0% on average for OEMs.
Aerospace Supply Chain Components 21
Manufacturing in the aerospace sector is a complex process and involves production of various components
having different technological requirements. It is estimated that airframe and engine together account for around
65 percent of the total production cost of an aircraft, while systems and avionics put together account for
another 25 percent. Following are the details relating to major markets and players in these major component
categories:
Engine manufacturers
Aircraft manufacturers rely on specialized engine manufacturers for propelling their products. In many cases, this
gives airlines an opportunity to choose between two or more engine types, when they buy an aircraft. The engine
manufacturing segment can be broken down into three sub-categories: Turbofan, Turboprop and Turbo shaft.
Turbofans are mostly used in commercial and military aircraft; Turboprops are mostly used in business and
regional jets while Turboshafts are primarily used in helicopters and some vertical takeoff/landing aircraft. This
segment features high share of MRO as a percentage of total segmental sales. The largest part of revenue and
profit margin for engine manufacturers comes from the sale of spare parts, the rent of engines and maintenance
activity. The engine manufacturing market is oligopolistic by nature and is dominated by three major
manufacturers: GE Aviation (a subsidiary of General Electric, based in Evendale, Ohio, USA), Pratt & Whitney
(P&W, a subsidiary of United Technologies Corporation , UTC, based in Hartford, Connecticut, USA), and Rolls
Royce (Derby, UK). Another important engine manufacturer is Snecma (Courcouronnes, France).
Components value as a % of aircraft value Engine mfg: Market shares by volume
Landing Others, 5%
Gear, 4%
Interior, 6%
Rolls-
Royce, 15%
Avionics, International
11% Aero
Airframe, Engines, 11%
CFM
38% International,
Systems,
14% 42% Pratt&Whitne
y, 6%
Ge Aviation, Engine
Engine, 27% 20% Alliance, 1%
Sources: Aerospace Global Report 2011, Clearwater
This industry also features joint ventures primarily for risk sharing purposes as engine manufacturing requires high-
end technological expertise and large upfront investments. For the LCA market, there are two major joint ventures –
“International Aero Engines” (P&W: 32.5 percent, Rolls-Royce: 32.5 percent, JAEC: 23 percent and MTU aero
engines: 12 percent) and “CFM International”, a 50:50 joint venture between GE and Snecma. CFMI is the world’s
market leader in narrow-body aircraft propulsion and produces the CFM56, which for the first 25 years was the only
engine for the Boeing 737 family and later for the Airbus A340-200/300 family. In 1996, General Electric and Pratt
& Whitney formed another 50/50 joint venture the “Engine Alliance” in order to develop, manufacture, sell and
support a family of modern technology engines for new high-capacity, long-range aircraft. This GP7200 engine was
originally meant for the Boeing 747-500/600Xprojects, before these were cancelled due to a lack of demand from
airlines.
Instead, the engine has been re-optimized for use on the Airbus A380 and is competing with the Rolls-Royce
Trent 900, the launch engine for this aircraft.
Apart from the large OEMs and the corresponding joint ventures (with a regional emphasis on the U.S), there
are several first and second tier suppliers in the global engine market in Europe such as MTU Aero Engines of
Germany, Volvo Aero of Sweden, Avio S.p.A. of Italy, and ITP Engines of the UK.
The engine manufacturing outlook seems positive with demand anticipated to be driven by need for greener,
more fuel-efficient engines due to the extreme pressure, jet emissions put on the environment. There will arise a
demand for 141,000 engines, worth over US$800 billion, over the next 20 years. Most of this demand is expected
to emerge out of the faster growing markets of Asia, the Middle East and Latin America. Mature markets of
Europe and North America will also see demand as airlines seek to replace thousands of older aircraft. The
after-market and services opportunity created by these deliveries is estimated at around US$600 billion over their
service lives.
Engines delivery summary (2009-2028)
Sector Units Value(US$bn)

Large Commercial Aircraft 52,249 631
Regional Aircfats 14,384 44
Business Jets 72,409 103
Freighters 2,140 44
Total 141,182 822
Sources: Aerospace Global Report 2011, Clearwater

Avionics
Avionics/aviation electronics, comprise electronic aircraft systems like fly-by-wire (or even fly-by-light) flight
controls, system monitoring, anti-collision systems and pilot assistant/ interface systems like communication,
flight management systems, navigation, or weather forecast.
European competencies in avionics include pilot night-vision systems for helicopters, Traffic alert and Collision
Avoidance System (TCAS) or the fly by wire technology. Airbus and Eurocopter were first in the world to
introduce this technology in civil aircraft and helicopter. Thales, Diehl Aerospace and Liebherr Aerospace are
major European suppliers of flight avionics. Rockwell Collins, Honeywell International, L-3 Communications are
major players in the global avionics market.
Landing gear
The landing gear market for LCA is a duopoly between Messier-Dowty (a subsidiary of Safran) and Goodrich.
Both of them offer a complete range of landing gear and are the principal suppliers to Airbus and Boeing.
Liebherr, the third player in the segment, produces landing gear for regional and business jets. In the medium
term, Liebherr may penetrate the LCA market, and disturb the prevalent duopoly.
The segment’s cooperation with OEMs remains strong since landing gear needs to integrate with the structure
of the aircraft. Like the propulsion system, the landing gear also needs maintenance. Services too make up a
significant portion of total sales. For instance, services make up 48 percent of landing gear activity for the Safran
Group.
Maintenance, repair & overhaul (MRO) industry
The worldwide airline MRO market consists primarily of airframe
maintenance, engine and component work as well as line maintenance. On
an average, the aerospace industry spends more annually on MRO than on
manufacturing or development. The greatest share of revenue from MRO is Global MRO market size: 2008-2020
derived from engine maintenance (43%of total revenues) followed by heavy
maintenance visits and modifications (21% of total revenue). The regional 90 US $46 bn
80
distribution of MRO is similar to that for the global air transport market, 70 26
60
with a centre of gravity in North America followed by Western Europe and 50 US $43 bn US $65 bn
21 US $50 bn
40
13 14
the emerging Asia-Pacific region. MRO grew strongly in recent years in line 30 18 12
10
20 10 9
8 8 9
with air traffic. But this upswing came to an end in 2008, with business 10 19
9 8 10
0
2008 2010 2015 2020
slowing down during fourth quarter of 2008. The global MRO industry is
Engines
expected to reach US$50 billion by 2015 and to US$65 billion by 2020. This Components
Lines
implies 5-year CAGRs of 3.5% and 5.3% over 2010-2015 and 2015-2020,
Heavy maintenance visits & modifications
respectively. The MRO markets of China and India will clock CAGRs of
9.6% and 9.4%, respectively, over 2010-2020. On the other hand, North Sources: Aerospace Global Report 2011, Clearwater
American, Western European and African markets are expected to register
somewhat slower CAGRs of 1.6%, 3.6% and 3.5%, respectively, over the
same period against a global CAGR of 4.4%.
Outlook A&D Industry 26
For 2012 it is expected growth in commercial aerospace, resulting from strong and steady demand for global
aviation and increased commercial aircraft production. In the early part of 2012, economic indicators are
generally positive.
The aerospace industry is hopeful about the future as the sector is expected to grow at a 5-year CAGR of 5.3
between 2009 and 2014. The market is predicted to be valued at US$1,190.5 billion by end of 2014. This positive
outlook can be attributed to a positive GDP growth outlook, rising incomes, improving health of airlines, and
the large order backlogs with air-framers (Boeing, EADS).
A&D Sector – Size (USD Billion) GDP Growth Rates – CAGR (2010-2029)
1400 8.0%
7.4%
7.0%
1200 6.3%
6.0%
1000
5.0%
4.4%
4.0% 4.0%
800 4.0%
1190,5 3.2%
3.0% 2.7%
600 920,6 2.4%
1.9%
2.0%
400
658,8 1.0%
200
0.0%
World China India Africa Latin Middle North Asia Europe
0 America East america Pacific*
2005 2009 2014E
* Exc China & India
Sources: Data Monitor, Clearwater Sources: Bombardier market forecast, Clearwater

Global Merger and Acquisitions 27
2011 was a record year for aerospace and defence transactions with 341 deals totaling an estimated USD 43.7 billion
in value announced during 2011. This result beat the previous highs of 332 deals in 2010 and USD 42.0 billion in
total deal value recorded in 2007.
The USD 16 billion United Technologies acquisition of Goodrich Corporation was the primary value driver.
Deal activity by number and range of deal value measured • Volume drivers were more broad-based,
by number of deals
with higher numbers for small deals
400
(less than USD 50 million) and mega
350 4 6
21
Mega-deals (at least $1 billion) deals (above USD 1 billion) alike.
24
300 34
33 • Although mega deals were not as
250 Large deals (at least $250 million
58 76
up to $1 billion) common in 2011 as they were in 2007,
200
Middle-market deals (at least $50
these transactions have continued to
150 million up to $250 million)
recover from only two in 2009, up to six
100 213 205
2
Small deals ($50 million or less) in 2011.
50
12
30
0 Deals with undisclosed value
2010 2011 1Q2012 Source: PWC
This led to an increase in average deal sizes, even when removing the impact of the Goodrich deal. The Goodrich
transaction boosted US total deal value above historic norms despite a drop in the number of US deals.
The largest announcement during the first quarter of 2011 was TransDigm’s acquisition of AmSafe Partners
from Greenbriar Equity Group and Berkshire Partners for USD 750 million. AmSafe has a high installed base of
safety and restraint equipment among the global fleet, and is a supplier to the A380, A350 and 787 programs.
This transaction supports TransDigm’s acquisition growth strategy.
The other large deal this quarter was the USD 400 million acquisition of UFC Aerospace by BE Aerospace. This
acquisition improves BE Aerospace’s position in logistics services, as UFC Aerospace is a distributor of
fasteners, paints and tooling.
The outlook for megadeals over the balance of 2012 :

• United Technologies has announced that it would sell its Rocketdyne unit, in addition to Clipper Windpower
and several Hamilton Sundstrand industrial businesses, in order to help fund the Goodrich acquisition.
• Regarding to the Goodrich acquisition, the EU has announced a Phase II review of this deal in order to assess
competition concerns.
Deal activity by number of deals measured by Deal activity by total deal value measured by number
number of deals worth $50 million or more of deals worth $50 million or more
70
45 42,8
61 61
60 40
35 33,4
50
45
30
Number of Deals
US $ billions
40 38
25
21,3
30 20
23 16,0
20
15
16
9,4
10
10 5,3
2 2 5
0 1,2 1,2
0
0 0
2010 2011 1Q2012
2010 2011 1Q2012
Number of deals
Total deal value Source: PWC
Number of deals excluding deals with US targets and/or acquirers
Total deal value excluding deals with US targets and/or acquirers
Number of deals with US targets and/or acquirers
Total deal value for deals with US targets and/or acquirers
Divestiture of slower-growth defence businesses and private equity exits dominate the list of largest deals. Two
headline divestitures:
• The Northrop Grumman shipbuilding spin-off;
• The break-up of ITT, ranked among the top five deals this year.
In addition, four of the top 10 deals were sales by private equity companies to strategic investors.
On the buy side, only one private equity purchase made the list the Providence Equity Partners acquisition of SRA
International.
Private equity exits played a role in each year. Activist investors had a part to play in some of the large 2011
divestitures but financial investor involvement was most evident in the smaller deals.
The sample of first quarter 2012 deals with a disclosed value over USD 50 million is small and US companies
continued to drive this segment of the market.
Quarterly aerospace and defense deal activity measured by number and value of deals worth $50
million or more (2Q09–1Q12)
2009 2010 2011 2012

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Number of deals 11 11 10 10 13 16 22 22 15 11 13 2
Total deal value ($ bil.) 3.0 3.8 3.1 5.7 5.2 4.9 5.5 12.6 6.2 20.3 3.7 1.2
Average deal value ($ bil.) 0.3 0.3 0.3 0.6 0.4 0.3 0.2 0.6 0.4 1.8 0.3 0.6
Sources: PWC-mission-control-q1-2012
It is interesting to note that when the sample is expanded to include all deals, regardless of whether a value was
disclosed or not, the% of deals involving a US entity actually declined.
These concurrent trends of significant US involvement in the largest deals with overall deal activity driven more
by non-US players are expected to continue.
The drivers are that US entities tend to be among the larger sector constituents while non-US entities are
growing in terms of their importance to the sector. This is being supported by increasing defence budgets and
air travel in several overseas regions such as Asia and the Middle East.
Regional distribution of all deals measured by number of deals (%)
2010 2011
18,0% 13,3%
North America North America

Europe Europe
16,4% 28,3%
Asia & Oceania 58,3% Asia & Oceania
65,6%
Source: PWC-mission-control-q1-2012
North America drives overall activity on the basis of US acquisitions.

European acquirers played a much more significant role in the 2011 aerospace and defence deal market
compared with 2010.
All European outbound deals above the USD 50 million threshold acquisitions in 2011 were for North
American targets, boosting the number of cross-border deals for US targets.
Transactions involving Asian acquirers declined year on year..
Global Aerospace and Defense deals in 2011 measured by number and value of deals worth $50
million or more
Local Deals Inbound Deals
1,3%
9,8%
19,4%
North America
1,3% North America
South America
Europe Europe
36,6% 54%
Asia & Oceania Asia & Oceania
78%
Outbound Deals
5,0%
North America
47,5% Europe
47,5% Asia & Oceania
Sources: PWC-mission-control-q1-2012
European outbound activity was significant in 2011, and is likely to pick back up over the remainder of 2012.
EADS could drive some of this activity as they have indicated interest in using cash built up from commercial
aircraft orders to diversify into non-commercial aviation or commercial service targets.
EADS is looking to grow its US presence through acquisitions. The company gets less than 3% of its revenue
from US subsidiaries and has stated its intention to grow its US revenue from USD 1.8 billion today to about
USD 10 billion.
In addition, the US is an attractive market due to the relative size of defence spending as well as the
opportunity to create a natural currency hedge. This could lead to more European outbound deals for US
companies.
While many of the largest A&D companies are located in the US and Europe, foreign aerospace and defence
demand is supporting the development of sector constituents in emerging nations.
Regional distribution of all deals by acquirer region* Regional distribution of all deals by target region*
measured by number of deals worth $50 million or more measured by number of deals worth $50 million or more
2010 11 8 2 40 2010 11 5 5 40
2011 7 15 6 32 2011 8 11 6 35
1Q12 2
1Q12 2
0% 20% 40% 60% 80% 100%

0% 20% 40% 60% 80% 100%
Asia e Oceania Europe ex-UK & Eurozone
Asia & Oceania Europe ex-UK & Eurozone
UK & Eurozone North America
UK & Eurozone North America
* Charts do not include one deal in South America during 2011 Sources: PWC-mission-control-q1-2012
China is likely to remain active in cross-border deals with general aviation assets target, which should contribute
to Asia Pacific totals. Acquisitions to access Western aerospace technology are likely to the extent that these deals
can be approved. In addition, joint ventures will help bridge technological gaps as well as allow Western
aerospace companies access to this burgeoning market.
For example, Textron recently announced joint ventures with AVIC and China’s Chengdu government for
undisclosed values. The purpose of these agreements is to manufacture and certify business and general aircraft
in the country.
The distribution of deals by A&D category demonstrates the relatively favorable growth in aerospace, with the
proportion of targets in this part of the sector increasing over time.
With OEM (Original Equipment Manufacturer) backlogs contributing to higher overall sector growth
prospects, aerospace M&A is likely to continue to lead the A&D deal market in 2012
Deals by aerospace & defense category

Measured by number of deals worth $50 million or more
Sector liquidity and leverage
Measured by average of top 50 global public competitors 120%
25,5%
100%
1,8 7%
25,0% 18%
1,6
1,4 24,5% 80% Space
50%
1,2
$ billions
24,0% Defense
1 61% 38%
1,9 1,79 60%
0,8 1,73 23,5%
MRO
0,6 23,0%
40% 3%
0,4 Aerospace OEMs &
22,5% suppliers
0,2 8%
50%
0 22,0% 20% 41%
2 years ago 1 years ago Most recente quarter 25%
Cash & equivalents (left axis) Total debt/capital (right axis) 0%
2010 2011 1Q2012
Sources: PWC-mission-control-q1-2012 Sources: PWC-mission-control-q1-2012
In addition, financial investors were absent in the first quarter after increasing their participation during 2011.
While financial investors were not significant acquirers in the first quarter, these investors did continue their
involvement in the overall market for aerospace and defence M&A.
While financial investors are likely to continue to have an influential role in the A&D deal market during all of
2012, strategic investors remain best-positioned to lead overall activity. As indicated earlier, liquidity remains
high and, while financial leverage has edged upward, it does not appear to be an impediment to enacting larger
deals.
Deal activity by investor group

Measured by number of deals worth $50 million or more
However, both trends should be qualified
120,0% by the relatively small amount of deals
100,0% announced in the first quarter.
16,4% 21,3%
80,0%
60,0% Financial investor

100,0% Strategic investor
40,0% 83,6% 78,7%
20,0%
0,0% Sources: PWC-mission-control-q1-2012

2010 2011 1Q2012
Global R&D 37
The resources invested in aerospace, defense, and national security R&D continue to dominate U.S. federal funding
and constitute an important part of overall global R&D. U.S. federally funded defense R&D will reach nearly $75
billion in 2012, exceeding every other country’s total R&D except that of China, Japan, and Germany. With the
defense R&D of these leaders and others, global defense R&D will likely account for more than $150 billion in
2012 or nearly 10% of all global R&D. Of U.S. corporate R&D, the sector as a whole, at $13.8 billion, will account
for less than 5% in 2012, though key prime contractors are investing substantial funds in R&D activities.
It is important to consider that corporate R&D decisions and investments in this sector are often driven by the
directives and future mission requirements tied to the federal government funding that these companies receive for
both research services and procurement. Thus, corporate aerospace, defense, and national security R&D is more
strongly tied to federal budget priorities than any other sector.
The increasing importance of and reliance on unmanned and autonomous vehicles and real-time situational
awareness and sensor systems continue to change the aerospace, defense, and national security R&D landscape.
The unmanned aerial vehicle (UAV) sector alone is forecast by Teal Group to reach $2.6 billion in global R&D in
2011 and to more than double in less than a decade. Likewise, the autonomous underwater vehicle (AUV) market
is growing rapidly, at a rate currently estimated by Booz & Co. of nearly 13% per year, with R&D investments
mirroring this projected market growth. These systems, by their nature and scale, provide system-level R&D
opportunities that historically were limited to major prime contractors with large manufacturing capacities.
Global R&D 38
Global Industry Leaders in Aerospace / Defense R&D
0% 10% 20% 30% 40% 50% 60% 70% 80%
Boeing 67%
Lockheed Martin 65%
Northrup Grumman 47%
General Dynamics 46%
Raytheon 39%
General Electric 33% Key Aerospace/Defense Technology Development
Pratt&Whitney/UTC 26% Areas by 2014
Honeywell 23%
BAE Systems 18%
0% 10% 20% 30% 40% 50% 60%
EADS/Airbus 16% Robotic/drone systems 55%
Rockwell Collins 12% Cibersecurity 46%
L-3 Communications 11% Autonomous vehicles 42%
Bombardier 9% Electronic warfare 38%
Remote sensing 35%
Stealth technology 32%
Energy-efficient propulsion 28%
Laser-based weapons 26%
Chemical/bio sensors 25%
Sensor network 25%
Source: Battelle, R&D Magazine Survey
Global R&D 39
Larger corporations such as Boeing, Lockheed Martin, and Northrop Grumman are indeed engaged in developing
and producing UAVs and AUVs. One of the largest and best known developers of UAVs is General Atomics
Aeronautical Systems, a private corporation and manufacturer of the well-known Predator UAV.
These larger companies likely dominate the R&D expenditures, but many smaller companies are also engaged both
as subcontractors and primes in significant efforts in these technological areas. Kaman Aerospace, whose annual
aerospace R&D investment is less than 1% of its partner Lockheed Martin, has developed key components of the
K-MAX autonomous helicopter platform recently selected for full deployment. As in other industries, the R&D
capabilities inherent in these small to midsized firms make them attractive acquisition targets for larger
corporations. Airborne Technologies, a small UAV developer and manufacturer, was acquired by L-3
Communications last year as L-3 sought to broaden its capabilities. Early-stage R&D efforts in these technologies,
along with efforts in other sensor and monitoring technologies, cyber security, nanotechnology and advanced
materials, biofuels, and medical technologies, will see continued defense R&D funding, for which numerous
smaller firms may see a more level playing field over the next five to 10 years.
A&D Sectors 40
CIVIL AERONAUTIC SPACE SECTOR

DEFENCE SECTOR
SECTOR
The Civil Sector is defined as The Defense Sector is defined

those activities or services The Space Sector includes the
to include those activities or
directly related to aviation and manufacturing of satellites,
services directly related to
provided to four primary missiles that can change their
aviation or space provided to
groups of end-users: flight path (“guided missiles”)
public sector customers for
• Airlines; and launch vehicles.
military purposes. The sector
• Freight & shipping includes defence spending that
companies; is not related to aviation or
• Private individuals and space (e.g., spending on tanks
businesses; and other land-based military
• Public sector customers for vehicles).
non-military uses.
COMMERCIAL AVIATION
MARKET
The following charts are structured in order to provide a detailed
COMMERCIAL AIRCRAFT analysis separately for each sector just stated, reporting the global
trends and forecast and then focusing on USA, European and Italian
REGIONAL AIRCRAFT market values.
BUSINESS JET
ROTORCRAFT
41
COMMERCIAL AVIATION MARKET

Commercial Aviation Market 42
The field of commercial aircraft will continue the positive trend of growth regarding the production also during
2012 due mainly to two factors:
• The increase in passenger traffic (tourism and business) coming mainly from the areas of Asia Pacific;
• Innovative approach to solutions development of new generation aircraft.
Source: DTTL Global Manufacturing Industry Group,

January 2012
The figure illustrates a 30-year history and forecast for large commercial aircraft orders and production, including
a consensus estimate for 2012 and 2013. The latest data predicts commercial aircraft production to be between
26,900 and 33,500 units by 2030.
It should be noted that the seven-year moving average for production is expected to reach 1,000 aircraft by
2013. This is quite an accomplishment given that only about 20 years ago, the seven-year moving average for
aircraft production was approximately 500 aircraft per year.
For 2011, the International Air Transportation Association (IATA) reported passenger revenue growth of 5.9%.
This level of demand bodes well for the 20-year forecast of approximately 33,000 new planes at a value greater
than USD 4 trillion. Airline profitability is projected to be about USD 7 billion globally in 2011. However, rising oil
prices continue to threaten profitability into 2012.
IATA STATISTICS 2011 2010

Revenue Passenger Miles +5.9% +8.2%
Load 78.1% 78.4%
Cargo Freight Ton Miles -0.7% +20.6%
Load 45.9% 53.8%
Source: PWC
The following pages present an analysis of how the industry has performed in terms of traffic and utilization
during 2011 and the beginning of 2012.
Air travel markets expanded in June, but the trend in passenger traffic growth has slowed. Global passenger
markets were 6.2% higher in June than a year ago, up on weaker May growth of 4.5%. However, the broader trend
in air travel, as shown by seasonally adjusted global RPKs in the first chart below, is losing pace. Over the month,
air travel increased just 0.3% in June compared to May, an annualized rate of growth of less than 4%. In fact, the
trend in air travel from early 2012 through to June has been growing at a weak 2% annualized rate.
Source: IATA
The trend in total air freight continues to show improvement, with an increase of 0.6% in global FTKs in June
compared to May. This brings seasonally adjusted June FTK levels more than 3% above the low point in Q4 2011.
Moreover, air freight also expanded slightly compared to a year ago, with a 0.8% increase in June.
This increase is no longer being primarily driven by only Middle Eastern airlines.
Source: HIS Global Insight

Strong performance of air freight in North America over recent months means airlines in that region and in
the Middle East contribute about 45% each to the increase in global FTKs since the end of 2011. Air freight
carried by Asia/Pacific airlines, the largest share of the air cargo market, is now responsible for only about
2% of the improvement to date.
Air freight load factors improved slightly in June month-on-month, on the back of the improvement in
demand, maintaining levels above the 2011 year-end lows. Middle Eastern and North American airlines have
benefited the improvements in air freight demand, both regions increasing load factors on a year ago.
Revenue passanger Available seat Freight ton Available ton

YTD 2012 vs Passenger load Freight load
kilometres (RPK) kilometres (ASK) kilometres (FTK) kilometres
YTD 2011* factor (PLF) factor (FLF)
growth growth growth (ATK) growth
Africa 10,5% 9,7% 64,9% 11,2% 11,3% 26,1%
Asia/Pacific 7,0% 4,5% 77,3% -7,1% -1,7% 59,3%
Europe 6,5% 3,8% 78,6% -4,3% 1,2% 48,1%
Latin America 10,0% 8,2% 78,3% -0,4% 3,9% 39,5%
Middle East 18,1% 12,9% 77,5% 14,8% 14,0% 45,2%
North America 2,3% 0,5% 80,2% -1,2% 1,0% 41,0%
Industry 6,5% 4,7% 78,1% -2,1% 1,4% 44,7%
*Through June Source: IATA
Recent declines in business confidence have weakened the growth trend in air travel, and the pessimistic
outlook continues to pose a threat to the airline industry. Leading indicators also point toward a further
slowdown in world trade momentum, which could undermine passenger and freight demand in coming
months.
System-wide global commercial airlines EBIT margin, % revenue Net profits, $ billion
2009 2010 2011 2012F 2009 2010 2011 2012F
Central forecast Oil price spike Central forecast Oil price spike
Global 0,4% 4,0% 2,9% 1,4% -0,6% -4,6 15,8 7,9 3,0 -5,3
Regions
North America 1,2% 4,7% 2,9% 2,2% 0,0% -2,7 4,1 1,3 1,4 -1,5
Europe -2,2% 1,9% 0,9% 0,0% -1,6% -4,3 1,9 0,5 -1,1 -1,9
Asia-Pacific 2,8% 6,0% 5,3% 2,2% 0,0% 2,6 8,0 4,9 2,0 -1,1
Middle East -1,5% 3,6% 3,4% 1,7% 0,1% -0,6 0,9 1,0 0,4 -0,2
Latin America 2,8% 5,0% 2,3% 2,8% 0,0% 0,5 0,9 0,3 0,4 -0,4
Africa -1,2% 1,6% 0,8% 0,0% -1,2% -0,1 0,1 0,0 -0,1 -0,2
Source: IATA, ICAO, Haver
In December it highlighted the major risk facing the outlook to airline profitability as coming from the sovereign debt
crisis in the euro-zone. Liquidity from the European Central Bank and a second Greek bailout has not resolved this
problem, but has probably pushed this risk beyond 2012. However, sharply rising oil prices have replaced Eurozone debt
as the major downside risk in 2012.
The regional composition of the forecast has changed significantly, with US and Latin American airlines expected to
generate more profit, offset by larger losses in Europe and smaller profits in Asia-Pacific. Moreover, risks to the central
forecast have risen with turmoil in the Eurozone threatening a banking crisis, of a much larger scale than assumed in the
central forecast. Moreover oil prices risk from supply disruptions in the Middle East, be dismissed. These risks to airline
profits remain skewed towards the downside.
System-wide global commercial airlines 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 F
Central forecast Oil price spike
REVENUES, $ billion 332 379 413 465 510 570 476 547 597 631 637
% change 5,2 17,7 9,1 12,5 9,6 11,7 -16,5 14,9 9,3 5,7 6,5
Passenger 249 294 323 365 399 444 374 425 468 498 500
Cargo 40 47 48 53 59 63 48 66 69 70 73
Traffic volumes
Passenger growth, tkp, % 2,3 14,9 7 5 6,4 1,5 -2,1 7,3 5,9 4,8 3,2
Sched passenger numbers, millions 1.849 2.064 2.211 2.325 2.518 2.507 2.479 2.681 2.835 2.966 2.920
Cargo growth, tkp, % 3,9 7,9 0,4 4,8 4,8 -1 -9,8 18,7 -0,4 0,3 2
Freight tonnes, millions 33,5 36,7 37,6 40 42 41 40,7 48 47,7 47,8 48,5
World economic growth, % 2,8 4,2 3,4 4 3,8 1,7 -2,3 3,9 2,5 2,1 1,7
Passenger yield, % 2,4 2,6 2,7 7,8 2,7 9,5 -14 6,1 4 1,5 3,5
Cargo yeld % 2 7,4 2,4 5,9 5,5 7,4 -14,2 15 5,5 0 3,5
EXPENSES, $ billion 323 376 409 450 490 571 474 525 580 623 641
% change 4 16,2 8,9 10,1 8,8 16,5 -16,9 10,7 10,6 7,3 10,1
Fuel 44 65 91 117 135 189 125 139 176 207 231
% of expenses 14 17 22 26 28 33 26 26 30 33 36
Crude oil price, Brent, $/b 28,8 38,3 54,5 65,1 73 99 62 79,4 111,2 110 135
Jet kerosene price, $/b 34,7 49,7 71 81,9 90 126,7 71,1 91,4 127,5 126,5 155,3
Non-Fuel 279 311 318 333 355 382 349 386 404 416 410
cents per atk (non-fuel unit cost) 38,9 39,5 38,6 38,9 39,3 41,8 39,6 41,6 41,4 41,2 40,7
% change 0,3 1,4 -2,1 0,8 0,8 6,4 -5,2 5,1 -0,5 -0,5 -1,5
Break-even weight load factor, % 61,1 61,9 62 61,2 60,9 63,2 62,3 63,1 63 64,2 65,1
Weight load factor achieved, % 60,8 62,5 62,6 63,3 63,4 63,1 62,6 65,7 64,9 65,1 64,7
Passenger load factor achieved, % 71,5 73,4 74,9 76,1 77,7 76 76 78,4 78,3 79 78,2
OPERATING PROFIT, $ billion -1,4 3,3 4,4 15 19,9 -1,1 1,9 21,7 17,2 8,6 -3,7
% margin -0,4 0,9 1,1 3,2 3,9 -0,2 0,4 4 2,9 1,4 -0,6
NET PROFIT, $ billion -7,5 -5,6 -4,1 5 14,7 -26,1 -4,6 15,8 7,9 3 -5,3
% margin -2,3 -1,5 -1 1,1 2,9 -4,6 -1 2,9 1,3 0,5 -0,8
Source: IATA, ICAO, Haver
Business Aviation will continue to grow at stable rates, especially in the less-affected Med-Large Biz Jet segment,
whilst deliveries of over 9000 business jet aircraft are forecasted for the period 2008-2018.
Demand from outside North America and Europe will increase considerably as world economies grow. In
particular, India, China, Latin America, Middle East and Africa will lead with projected real GDP growth above the
world average of 3.4%.
By 2030, economies outside of North America and Europe will account for 51% of global GDP, up 11 percentage
points from their current position.
Annual Business Aircraft Deliveries, by Aircraft Segment
1190 1460
16.6%
37.5%
30.6% VLJ
Light
19.4%
Medium
37.5% Large
29.3%
15.3% 13.8%
2008 2017E
Source: Analysis of Global Aerospace, Defence and Civil Security Markets, Frost&Sullivan
Regional divergence in net post-tax profits, US$ Billion
6
5
4
3
2
2011
1
2012 central forecast
0
North America Europe Asia-Pacific Middle East Latin America Africa 2012 oil price spike
-1
-2
-3
-4
-5
Source: IATA
Asia-Pacific airlines have performed well in this environment, particularly Chinese airlines, raising the estimate for
industry net profits in 2011 to USD 7.9 billion. European airlines have been under downward pressure from weak
economic growth in the euro-zone.
51
COMMERCIAL AIRCRAFT
Commercial Aircraft 52
Revenue for the Industry grew at a rate of 2.3% to USD 681 billion in 2011 from USD 666 billion in 2010. An
increase in commercial aircraft delivery volume likely drove this performance and helped both Boeing and EADS to
achieve significant revenue growth as compared to 2010. Higher delivery volumes also generally benefitted the Tier
one and two suppliers and aerostructure subsectors, which accounted for 15 of the top 20 performers in 2011
revenue growth percentage. Overall, 65% of the companies’ revenue growth exceeded that of the total Industry
average.
Market forecasts of top large commercial aircraft manufacturers describe an expectation of between 26,900 and
33,500 commercial aircraft to be produced over the next 20 years.
Boeing was the overall A&D revenue leader and largest global A&D company, reporting USD 68.7 billion in revenue,
a 7% increase, likely due to higher delivery volume and favorable mix at Boeing Commercial Airplanes (BCA) and
sales growth in commercial aviation services. EADS increased revenue from €45.8 billion to €49.1 billion, also 7%
(13% when translated into US dollars). EADS reported the largest revenue growth, USD 7.7 billion finishing
narrowly behind Boeing by only USD 407 million.
United Technologies, GE Aviation, and Honeywell Aerospace also reported 7% growth. Companies reporting
double-digit growth include Safran, Goodrich, Precision Castparts, Harris, and Spirit Aerosystems. Triumph Group
reported the largest revenue percentage increase, 124%, on the strength of its acquisition of Vought. Triumph also
made the largest upward movement on the list, advancing 26 spots to 43. Oshkosh defence reported the largest drop
in revenue and profit as a result of lower M-ATV production due to the decreasing tempo of operations in Iraq and
Afghanistan.
Wide body aircraft deliveries are expected to grow faster than other segments.
Annual Aircraft Deliveries by Aircraft

Airliner market view – New orders Segment
1270 1550
3000
2500
Number of Aircraft
367 22.1% 21.0%

967
2000
537
1500 433
505
309
1000 2.111
1.430 1.683 51.7%
1.330 1.159 149 1.104 59.8%
500 240 112 139 167
386 405 357 435 475
0
2001(626 2002 (517 2003(496 2004 (602 2005 (1967 2006(1763 2007 (2650 2008 (1664 2009 (624 2010 (1413 2011 (2478
Total) Total) Total) Total) Total) Total) Total) Total) Total) Total) Toal)
27.3%
Year Ending 18.1%
Narrowbody Jet Widebody Jet

2008 2017E
Widebody Narrow Body Regional

Source: ACAS (February 2011)
Boeing was also the industry’s most profitable company, with USD 5.844 billion in operating profit, an increase
of 18%. Thales reported the largest profit percentage increase, 47.1%. Industry operating margin decreased 27
basis points to 8.86%.
The industry’s best operating margin belongs to Transdigm, at 40.4%, down slightly from 43.8% the prior year.
Boeing and Airbus have announced future production rate increases. In addition, Airbus recognized a record
year of 1,419 net orders, while the industry recorded 2,224 net orders for large commercial aircraft. Boeing’s
backlog is at a record USD 293 billion and Airbus’ backlog is at a record USD 679 billion (at list price), a 41%
increase.
Backlog (US$ billion) 12/31/11 12/30/10 12/31/09 12/31/08 Aircraft backlog Boeing Airbus Total
Backlog at December 31,2010 3,443 3,552 6,995
Boeing $293 $256 $250 $279 Net Orders 805 1,419 2,224
Airbus* $679 $480 $459 $471 Deliveries 477 534 1,011
Backlog at December 31,2011 3,771 4,437 8,208
*at list price Source: Boeing annual report; EADS annual report
In the longer term, this duopoly may face a challenge as new entrants seek to gnaw away at the market share of
established players. The Russian, Chinese and Japanese offerings may start to erode some market share from the
traditional players, especially in home markets.
Annual Aircraft Deliveries by Region
6,4% Although the majority of airframes will be
29,9%
assembled in Europe and North America,
31,0%
APAC will become a major outsourcing
6,4%
region for components and systems
22,3%
4,0% manufacturing.
APAC Africa & Middle East Russia/Cis Europe North America Latin America
Source: 2010 Frost&Sullivan, all rights reserved www.frost.com
Aircraft Demand (2010-2029) and Boeing & Airbus Order Backlog by Region
Boeing Backlog: 3,469 units
Total Demand: 28,980 units
Middle East The combined production pipeline for
8% Middle East
Latin & Africa 14% both the companies currently stands at
America 7%
CIS 3% Unidentified around seven years, considering the total
Europe 19%
Africa 2% 10%
Europe 24% backlog of around 6,825 aircraft and the
Oceania 5% Asia 23%
Asia Pacific North United States predicted annual build rate of around 950
34% America 29%
22% aircraft.
Airbus Backlog: 3,356 units Boeing in its 2010-2029 market outlook forecasts demand for 28,9801 new
aircraft valued at around USD 3,530 billion over the next 20 years. This
Middle East demand is expected to be driven by emerging economies on account of
Latin & Africa 19%
America & Asia Pacific
Carribean 6% 33%
favorable economic conditions, which are expected to increase the number
Europe 23% of air traffic passengers. Civil aerospace build rates and revenues ultimately
North
America depend on demand for air travel, which is linked to economic growth. In
19%
terms of region (by volume), 34% of this demand will emanate from the
Source: Boeing, Airbus, ClearWater Asia-Pacific, while North America and Europe will contribute 22% and
24% respectively.
Rapidly expanding air service within China and other emerging economies, coupled with the spread of low-cost
carrier (LCC) business models throughout the world, is further anticipated to boost this demand.
56
REGIONAL AIRCRAFT
Regional Aircraft 57
The other important area of commercial aviation is regional jets, which is dominated by Canada’s Bombardier
and Brazil’s Embraer. Regional jets are typically considered to be commercial jet transport aircraft with less than
100 seats.
Regional Jet Deliveries
250 232
220
206
197
200
162
150 134 138 130
121 120 128 122
112 110 Embraer Shipments
98
100 87 Bombardier Shipments
50
0
2002 2003 2004 2005 2006 2007 2008 2009
Source: Boeing, Embraer, Clearwater
Embraer in its market outlook 2010-2029 forecasts regional jet demand at around 6,875 aircraft for the next 20 years
with a value of around USD 200 billion. This comprises demand for 3,495 new aircraft for fleet expansion and 3,380
replacement aircraft. As much as 93% (6,400 planes) of this will be for large regional jets, which have a seating
capacity in the range of 60-120.
Regional Aircraft 58
Regional Jet Demand by Geography (2010-2029)

Total: 6,875 units
Asia
Pacific 8%
Latin
America
8%
Europe
Russia/CIS 22%
6%
Middle
East 4%
North
Africa 3% America
35%
Source: Embraer, Clearwater
The medium to long term for business jets should see significant growth, driven by economic growth and adapting
regulations in Asia and the Middle East, particularly in China.
The U.S. usually has been the largest market for regional jet deliveries. North America, with an expected 35% share
in new deliveries, holds on to its dominant position. But Europe/Russia with 28% share and China with 14% are
expected to be the next big markets in terms of deliveries of regional jets, even though their combined market
share will be less than that for North America.
59
BUSINESS JET
Business Jet 60
Business Jets – Market Forecast

The business jet segment is the most economically
450 18.000
15.500 sensitive segment in the civil aerospace industry as
400 16.000
350 14.000 business jet demand and usage is a function of
300 10.500 12.000
250 10.000
corporate performance/profitability, which, in turn, is
200 6.500 8.000 dependent on the economic climate. This segment
150 6.000
100 407 4.000 was therefore the most affected by the recession as
50
254 2.000
127 compared to the large commercial aircraft and
0 0
2002-2009 2010-2019 2020-2029
regional jets segments. Recession had a significant
Value of business jets shipped (USD billion)
impact leading to order cancellations, and a drop in
No. Of business jets shipped (RHS)
Source: Bombardier, Clearwater build rates at all major manufacturers.
The business jets segment includes also players such as Cessna, Dassault, Gulfstream and Hawker-Beech. Total
shipment in value terms is expected to almost double to USD 254 billion by 2019 as compared to USD 127 billion
during 2009. Geographically, North America and Europe are expected to drive demand with North America
predicted to account for 42% of the total shipments during 2010-2019 followed by Europe with 24%.
Furthermore, China and India are expected to drive demand with anticipated requirements for 600 and 325
business jets, respectively, over the same period (2010-2019).
61
ROTORCRAFT
Rotorcraft 62
Helicopters play a very important role not only in transportation, but also in construction, fire fighting, search and
rescue, and military applications. The recession also dealt a blow to the helicopters segment with segmental growth
falling to 7% during 2008 and to 5.7% in 2009, respectively. Helicopters, as a segment, had clocked double-digit
growth during 2007.
The major players in the helicopter market are Eurocopter, Agusta Westland (AGW), Bell Helicopter, Sikorsky,
McDonnell Douglas Helicopter Systems (MDHI), and Boeing Rotorcraft systems. In the civil helicopter market,
Europe is the global leader with players such as Eurocopter and Agusta Westland. Eurocopter is the largest
European manufacturer of helicopters and a world market leader in the civil category of the sector. Across the
world, there are more than 10,000 Eurocopter helicopters operating for about 2,800 customers.
According to estimates by research firm Frost & Sullivan, the civil helicopter segment is expected to expand from
24,625 units in 2009 to 36,946 units by 2015. It is also foreseen that up to 22% of new helicopters will be sold over
the next five years to customers based out of Asia Pacific, Africa and the Middle East.
63
DEFENCE MARKET
Defence Market 64
World military expenditure did not increase in 2011, for the first time since 1998. The world total for 2011 is
estimated to have been USD 1,738 billion, representing 2.5% of global gross domestic product or USD 249 for
each person. Compared with the total in 2010, military spending remained virtually unchanged in real terms.
The main cause of the halt in military spending growth was the economic policies adopted in most Western
countries in the aftermath of the global financial and economic crisis that started in 2008. These policies
prioritized the swift reduction of budget deficits that increased sharply following the crisis.
Military Expenditure
6.0%
5.0% 5.2%
United States
4.0% United Kingdom
3.0% 2.6% France
2.4% Germany
2.0% 1.8%
1.5% Italy
1.0%
0.0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: SIPRI Military Expenditure Database
The top six US defence companies (Boeing, Lockheed Martin, General Dynamics, Northrop Grumman, Raytheon,
and L-3) reported revenues down about 1% and profits up about 1%.
Defence Market 65
Military expenditure by region, 2002-2011
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
World Total 1.146 1.218 1.286 1.340 1.383 1.436 1.513 1.613 1.629 1.738
United States 432 492 536 562 571 586 629 680 698 711
Rest of the world 713 725 750 777 812 850 884 934 931 1026
Geographical regions
Africa 19,5 19,4 21,8 22,7 23,7 24,5 27,9 28,6 29,6 34,3
North Africa 6,3 6,5 7,1 7,3 7,3 8 9,4 10 10,5 13,9
Sub-Saharan Africa 13,2 12,9 14,8 15,4 16,3 16,6 18,5 18,6 19,1 20,4
Americas 497 552 600 631 644 664 714 768 791 809
Central America & Caribbean 4,9 4,8 4,4 4,7 5,1 5,7 5,8 6,4 6,5 7
North America 448 508 552 579 588 605 650 701 721 736
South America 44,9 40,1 43,1 47,2 51 53,5 58,6 60,3 63,6 66
Asia and Oceania 204 213 224 236 249 267 283 317 322 364
Central and Sud Asia 34,5 35,5 40,4 42,8 43,5 44,9 49,3 56,6 57,4 61,7
East Asia 131 137 143 151 162 175 185 208 212 243
Oceania 18,1 18,5 19,2 19,8 20,9 22,2 22,9 24,6 24,9 28,6
South East Asia 19,9 22 21,6 22 22,5 25,6 26,2 27,5 27,4 31
Europe 347 352 354 356 365 373 384 392 375 407
Eastern Europe 38,7 41,4 43,3 47,9 53,4 58,9 64,9 66,4 65,5 80,5
Western and Central Europe 308 310 311 308 311 314 319 325 310 326
Middle East 78 81,5 86,3 94,3 101 107 104 108 111 123
World military burden, i.e. world military spending as a share of world gross domestic product (%)
2,4 2,4 2,4 2,4 2,4 2,4 2,4 2,7 2,6 2,5
Source: Sipri Fact Sheet, March 2011
The Global defence spending is expected to decline in 2012 mostly as a result of reductions in the U.S., where
spending is likely to fall due to the withdrawal of US forces from Iraq and the draw-down in Afghanistan.
Furthermore austerity measures in United Kingdom (UK), and the rest of Europe are likely to mean continuing
falls there in the next 2 to 3 years.
On the other hand, spending in China, India, Saudi Arabia, the United Arab Emirates (UAE), Japan, and Brazil are
expected to continue to increase.
Defence Market 66
In 2010, global defence spending, inclusive of armed forces personnel, was estimated to be USD 1.6 trillion,
with the U.S. the leader by order value, ahead of China, followed by the UK, France, and Russia.
Top 10 Suppliers & Buyers of Major Conventional

Weapons, 2006-2010
It should be noted that nine countries spend over
Suppliers Buyers
1 United States India USD 40 billion for defence each year.
2 Russia China
3 Germany South Korea
Backlog (US$ billion) 12/31/11 12/31/10
4 France Pakistan
Lockheed Martin $81 $78
5 United Kingdom Greece
EADS Defense $73 $83
6 Netherlands United Arab Emirates
Finmeccanica $64 $70
7 China Singapore
BAE Systems $58 $63
8 Spain Algeria Boeing Defense, Space & Security $46 $48
9 Italy Australia Thales $43 $34
10 Sweden United States General Dynamics (exc. Gulfstream) $40 $42
Northrop Grumman $40 $64
Source: Sipri Fact Sheet, March 2011
Raytheon $35 $36
L-3 $11 $11
Total $491 $529
Defence Market 67
The 10 countries with the Highest military expenditure, 2011
Rank 2011 Spending Change Change Share of GDP

2010 Country ($b.,MER) 2010-2011(%) 2002-2011(%) (%estimate)
1(1) United States 711 -1.2 59 4.7
2(2) China 143 6.7 170 2
3(5) Russia 71.9 9.3 79 3.9
4(3) United Kingdom 62.7 -0.4 18 2.6 USA $711b. China $143b. Russia $71.9b. UK $62.7b. France $62.5 b.
5(4) France 62.5 -1.4 -0.6 2.3
6(6) Japan 59.3 0 -2.5 1
7(9) India 48.9 -4.9 66 2.6
8(7) Saudi Arabia 48.5 2.2 90 8.7 Japan $59.3b. India $48.9b. Saudi Arabia Germany Brazil
9(8) Germany 46.7 -3.5 -3.7 1.3 $48.5 b. $46.7 b. $35.4 b.
10(11) Brazil 35.4 -8.2 19 1.5
World 1738 0.3 42 2.5
Shares of world military spending Changes in military spending by

for the top 10 spenders, 2011 region, 2011 (% change, real terms)
12.0%
10.2%
10.0% 8.6%
Others 8.0%
25.7%
Brazil 1.0% 6.0%
USA 41.9% 4.6%
Germany
2.7% 4.0%
2.4%
India 2.8% 2.0%
Saudi 0.3% -1.2% -3.3% -1.9%
Arabia 2.8%
0.0%
Japan 3.4% World Africa North Latin Asia & Eastern West & Middle
France 3.8% China -2.0% America America Oceania Europe Central East
Europe
UK 3.6% Russia 4.1% 8.2%
-4.0%
Source: Sipri Fact Sheet
Defence Market 68
2009-2012
Defence Budget Global • Strong Growth Driven by Afghanistan &
Iraq conflict.
US$ 1.4 Trillion US$ 1.65
Trillion • Significant spend on UORs (Urgent
3% 4%
Operational Requirements).
7% 10% Row • Market unpredictable and driven by events.
21% Middle East
30%
Asia Pacific
23%
Europe 2013-2016
22%
North America
• Market stabilizes as forces begin
46%
34% withdrawing from Afghanistan (such as
Canada and the Netherlands).
2007 2016E
• Market increasingly driven by Asia-Pacific.
• Unclear how future US-China rivalry will
impact spending.
• Global Defence spending is expected to continue to grow at a steady rate over the next decade, with major
growth centered in the Asia-Pacific region, much of which as a result of China’s sharp rise in spending.
• Far East is expected to provide the largest growth opportunities over the next 5-10 years.
• Solid growth in the Indian Defence budget from USD 22 Billion to USD 36 Billion from 2007-2014.
• Solid growth in South Korea budget combined with major manpower reductions.
Defence Market 69
A number of underlying and interrelated factors are combining to change the way military procures and services its
equipment. As a result new opportunities emerge
2008-2020
The Unexpected
Major Regional War in Middle East
High Impact
Rapid growth in China’s military

Reduction in Defence Spending capabilities
in Major European Market
Adoption of Total Cost of
Ownership and TLCM Principies
Afghani control of national
Projected security duties Stabilisation and re-prioritization
Impact on the of US Defence Budget
Aerospace &
Defence Strong growth in Asia-Pacific
Introduction of new competitive
Industry Defence Markets
forces from weak public finances
Rapid technology cycles driving

system obsolescence
Increasing importance of after-
Financial difficulties for Tier-3 sub- market services
component manufactures on critical
supply line affecting delivery Introduction of new
Low Impact competitors/partners from Asia-Pacific
markets
Low Certainty High

Defence Market 70
The new opportunities are:
2 Sector with highest total growth potential 1 Unmanned Systems

High 1
( >10%) 1 2 Force Protection
2 3 Military Airlift
4 Combat Aircraft
5 Land Combat System
6 3 6 Soldier Modernization
Medium
( 5-10%) 5 4 7 Strategic & Tactical
Communications
8 Training & Simulation
8 9 7 9 Command & Control
1 Counter-IED
Low
( 0-5%) 2 Counter Rockets and
Mortar
Small Medium Large

( <USD 2 Billion) CAGR is calculated
( USD 2-USD 5 Billion) ( >USD 5 Billion) from 2008-2012
Annual Market Size of Vertical Market

71
SPACE MARKET
Space Market 72
The global space industry showed very strong growth in 2011, increasing more than 12% from 2010.
Commercial space revenue and government budgets reached a record total of $289.77 billion in 2011. This
follows a trend of continuing expansion in the global space economy, demonstrating a five-year growth rate of
41% from $205.04 billion in 2006, with the largest growth registered in commercial infrastructure and support
industries.
Much of the space economy’s continuing growth is driven by commercial space products and services, along
with infrastructure investment necessary to deliver those services. Commercial space products and services,
including telecommunications, Earth observation, and positioning services, remain the largest source of revenue
in the space economy, growing to $110.53 billion in 2011, a 9% increase from $101.73 billion in 2010.
Commercial infrastructure and support industries, including spacecraft manufacturing, in-space platforms,
ground equipment, launch services, independent research and development, and insurance premiums, showed
the strongest percentage growth of any space sector in 2011. Commercial infrastructure and support industries
revenues totaled $106.46 billion in 2011, a 22% increase from $87.61 billion in 2010. This growth was driven
primarily by sales of global navigation satellite systems (GNSS) receivers. Commercial space transportation
services revenues are estimated to total $0.01 billion in 2011, the same as in 2010.
Space Market 73
The space economy’s strength was evident as commercial infrastructure and support industries grew at an
impressive rate of 22% in 2011, reaching a total of $106.46 billion. The vast majority of the nearly $19 billion
increase is attributable to growth in ground stations and equipment, including personal navigation devices and
chipsets, which added more than $18 billion in value during the year.
Commercial space products and services remain the largest part of the space economy, growing to $110.53
billion in 2011, 9% more than 2010. Most of the nearly $9 billion increase occurred in the direct-to-home
(DTH) broadcasting sector, which added more than $7 billion in value.
The commercial space transportation services sector, consisting of companies such as Space Adventures and
Virgin Galactic, remained relatively static in terms of revenue because no commercial human spaceflights
occurred in 2011, although companies continued to collect deposits for future flights. A number of flight tests
are scheduled to occur in 2012, indicating the possibility of growth in the near future as new services begin to
carry passengers into space. Global Space Activity (Billion), 2011
0,01 Commercial Space
(< 1%) Product and Services
25,5
(9%) Commercial
Infrastructure and
47,25 Support Industries
(16%) 110,5 US Government
(38%) Space Budgets
Non US Government
Space Budgets
106,5
Source: The space report, 2012 (37%) Commercial Space
Transportation
Total: 289,77 $Billion Services
Space Market 74
Globally, government spending on space increased from 2010 to 2011. Government investment in space
worldwide increased by approximately 6% from 2010, bringing government spending to $72.77 billion in 2011.
Government spending accounted for 25% of the global space economy, a decrease from 27% in 2010. The U.S.
government spent $47.25 billion in 2011, a 0.4% decrease from the $47.44 billion spent in 2010, but it remained
responsible for 65% of global government space spending, other governments appropriate significant amounts.
Non-U.S. government space investment reached $25.52 billion in 2011. For non-U.S. countries such as Brazil,
India, and Russia, reviewed in both 2010 and 2011, government space expenditure grew strongly, with combined
spending increasing by 20% from 2010.
Some space agencies experienced more modest growth, as was the case for the European Space Agency (ESA),
whose budget increased by 7% in spite of the ongoing fiscal problems in some of its member states. Space
agencies in other nations, such as the United States and Japan, operated under flat or diminished budgets.
Most sectors of the space economy experienced growth in 2011, thanks to the efforts of a skilled workforce and
successful business leaders. Combined with the multiyear growth trend in the overall space economy, this
indicates positive prospects for developments in the space industry.
Space Market 75
In 2011, it is characterized by two main features:

• ever larger group of countries with satellite capabilities and the emergence of Brazil, India and China,
alongside the Russian Federation (i.e. the BRIC countries), as exporters of space technologies;
• from being a small exclusive club relying on strong Defence and Aerospace industries, to a larger group of
advanced and smaller developing countries with very diverse capabilities.
The larger BRIIC grouping which includes Indonesia forms a new nexus of satellite technology transfers to
developing countries, thus contributing to the increase in the number of countries with access to space.
The new landscape of space-faring nations is the result of two parallel trends: the ambition of many countries
around the world to develop independent national space programs, and the globalization of the Aerospace and
Defence industry.
The new landscape of space-faring nations is also in part the result of the globalization of the space industry
that takes place mainly via foreign direct investments and a robust international technology trade, with rising
exports and imports of high-technology products and services.
Space Market 76
Conservative estimates of space budgets of G20 countries, 2010
Current USD million
G7 53,239.6
United States 43,600.1
BRIC 10,537.1
China 6.502,00
European Union 6.294,55
Japan 3.551,00
Russian Federation 2.665,38
France 2.615,35
Germany 1.668,78
India 1.193,67
Italy 933,72
United Kingdom 482,68
Canada 338,08
Republic of Korea 273,84
Brazil 176,05
Argentina 55,20
Indonesia 42,10 Source: The space economy at a glance 2011 -
Turkey 33,11 © OECD 2011
Australia 11,83
Mexico 0,06
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000
These estimates provide orders of magnitude, as exchange rates may alter direct comparability. The above data
includes both civil and military budgets that does not include unofficial data or figures for Saudi Arabia and
South Africa. Furthermore European Union data includes only 17 countries with national space budgets:
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, the
Netherlands, Norway, Portugal, Spain, Sweden and Switzerland.
Space Market 77
Foreign direct investment is a particular form of investment, reflecting the establishment of a foreign-
affiliated firm under the management of a parent company. Flows of FDI have expanded rapidly in recent
years aided by the removal of many national barriers to capital movements and measures to enhance
integration within regional markets.
Looking at the comparative advantages of different countries in terms of technological competences,

infrastructure and wages, partnering efforts led to the creation of space-related US and European joint-
ventures in China, the Russian Federation, India, South Africa and other countries.
On a global scale, aerospace foreign direct investments already represent important knowledge transfers.
Investments in joint ventures accounted for some 59% of the value chain investments done by 121 major
aerospace manufacturers over the past 20 years, representing some USD 531 billion.
Space Market 78
Aerospace globalisation speeding up via large investments

in joint ventures
MRO 222
Organic
Manufacturing 178
41% Joint
venture
59% Engineering R&D 97
Others 17
Total: USD 531 billion invested in

Source: AeroStrategy
Training 17 organic and joint ventures'growth
Foreign direct investments are also increasingly international in nature. China and India, as the new
international players are now themselves investing in OECD countries. To close the technology gap with well
established aerospace players, suppliers in China and India have set up partnering arrangements or have made
acquisitions to become more firmly entrenched in the global supply chain.
Space Market 79
Despite the economic crisis, the space sector has fared relatively well since 2008. Telecommunications still
represent in early 2011 the main commercial space market, and several satellite operators have broken records in
revenues since the beginning of the economic crisis.
The satellite telecommunications operators have positioned themselves well, benefitting from growing mass
markets (e.g. satellite television broadcasting) and a robust demand from institutional users (i.e. defence, new
customers in the developing world, development of anchor contracts to cover the needs of different
administrations).
Future growth in broadband via satellite and more traditional telecommunications Fixed-Satellite Services (FSS)
are also confirmed by ITU data on satellite network co-ordination request submissions.
This positive situation in telecommunications has impacted the rest of the value chain in the space sector: the
main satellite manufacturers have also experienced a stable market for commercial telecom geostationary
satellites. They received 30 contracts in 2009 and 26 contracts in 2010, with an expected trend of a minimum of
20 contracts until 2015.
The institutional demand for satellites remains relatively strong and geographically diversified, particularly for
military/dual-use satellites, and small earth observation satellites. The total five-year value of satellite production
is estimated at some USD 65.5 billion.
Space Market 80
Five-year value of satellite production estimated at USD 65.5 billion

Estimates in USD billion and percentage A relatively recent trend is for satellite operators
to receive loan guarantees from national export
Space
Systems/Loral
(US),USD 3,8
credit agencies to fund their satellite fleets.
billion, 6.7% Boeing
(US),3,6 The French Coface has been particularly active
billion, 6.4%
Thales Alenia since the beginning of the economic crisis,
Space
(Europe),USD supporting the projects of customers of
4,3 billion,
7.6% European space manufacturers with more than
EADS Astrium USD 3.5 billion as of late 2010.
(Europe),USD
All others,USD
30,4 billion,
5,4 billion, The American Iridium mobile operator received
Lockheed 9.5%
53.7%
Martin in 2010 a record loan guarantee totaling 95% of
(US),USD
9,1 billion, USD 1.8 billion, for its contract with the
16.1%
European satellite manufacturer Thales Alenia
Space.
Source: Forecast International (2011).
Export Development Canada provided credit
In late 2010, China Development Bank provided a financing to Ukraine in late 2009 to buy a
commercial loan to Bolivia for its first communication satellite from the Canadian MacDonald,
satellite, for 85% of its estimated USD 300 million value, Dettwiler and Associates.
procured by to Chinese companies.
Space Market 81
The commercialization trend of space activities is still strong. For example there is a growing geographical diversity
of satellite manufacturers bidding for commercial satellite contracts.
Satellite orders per main satellite manufacturer in March 2010

Number of orders and percentage (total orders: 46 satellites)
MDA; 3
ISRO (India); 2
Loral; 8
INVAP (Argentina); 1
NPO; 4
Canada; 6,50% The space sector manufacturers are still
Others; 6,50%
Russian dependent on institutional budgets for much
Orbital Sciences; 4 Federation;
8,70% of the research and development in satellites
United States;
Lockheed Martin; 1 37% China; 6,50% CAST; 3
and launchers.
Europe;
Key customers for small and large satellites are
Boeing; 4
34,80%
EADS Astrium; 7 also still governments.
Thales Alenia; 9
Source: Lardier (2010).

Space Market 82
The number of smaller firms at different levels of the space sector’s value chain is increasing. These small and
medium companies play a major role in driving innovation, especially in knowledge-based industries, (e.g. 30 firms in
Finland, 20 firms in Denmark).
In addition to these trends, the growth in space-related entrepreneurial activity in the space industry has been
ongoing, particularly in the United States; there are many companies pursuing the development of new commercial
space operations, vying to transport cargo and passengers in suborbital and/or orbital flights (e.g. Virgin Galactic,
SpaceX, Bigelow, Orbital Sciences, Xcor and Armadillo Aerospace).
Investment in commercial spaceflight by source, 2009
Reinvestemen The total investment committed to the

t; 5%
commercial spaceflight industry is estimated at
USD 1.46 billion in 2009.
Private
equity, 30%
A significant aspect is the source of funding for
Individuals,
50% this fledging industry, dubbed sometimes the
“new space” industry, which is mainly based on
“angel’ investors”.
Government,
15%
Source: Tauri Group (2010).

Space Market 83
An analysis of GBAORD (Government Budget Appropriations Outlays) trends shows that civil space related
R&D budgets of many countries have peaked in the early to mid-1990s then decreased or stagnated, except for
the Russian Federation.
This trend may not translate into less funding. In fact, the share dedicated to space R&D has generally benefitted
from extra funding.
Civil space programmes as a percentage of civil GBAORD for selected countries

1981 to 2010 (or latest available year)
France Germany Italy Russian Federation* United States Total OECD

%
30
25
20
15
10
0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: The space economy at a glance 2011 - © OECD 2011

Space Market 84
Civil space programmes as a percentage of civil GBAORD for selected countries

1981 to 2010 (or latest available year)
Belgium Canada Japan Norway Korea United Kingdom

%
18
16
14
12
10
0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: The space economy at a glance 2011 - © OECD 2011

Space Market 85
The OECD total for civil space-related R&D budgets was USD 18.355 billion in 2009 (in current USD PPP),
with a few large countries dominating the total.
G7 countries dominated many of the top positions, with the United States leading with a budget of USD 10.8
billion.
Civil space budget in Government Budget Appropriations or Outlays for R&D (GBAORD)
Current USD PPP million and as % of civil GBAORD, 2010 or latest year available
9,103
OECD Total
United States 10.822
18,355
13,465
Other countries with
European Union (27 countries) 4.527 4,835
Russian Federation 2.562 22,14 relatively high space R&D
Japan 2.173 7,129
France
Germany
1.401
1.241
12,175
5,395
expenditures include the
Italy 847 7,409
Korea 463 3,548 Russian Federation, Japan,
Belgium 311 12
United Kingdom
Canada
303
274
2,8
3,741
France, Germany and Italy.
Spain 245 2,016
Chinese Taipei 180 3,047 In addition, many countries
Netherlands 166 3,221
Argentina
104
135
% of Civil GBAORD
7,764 have developed dual-use and
Switzerland 4,109
Norway 51
Denmark 37
2,386
1,948
military space programmes,
Australia 35 0,769
Finland 31 1,504 which may fall in defence
Poland 30 1,552
28
Czech Republic
Sweden 22
1,685
0,791
R&D budgets.
Greece 20 2,121
Portugal 13 0,497
Romania 11 3,59
Austria 11 0,394
Source: OECD, Main Science and
Israel 4 N/A Technology Indicators database, August
Luxembourg 3 1,557 2010
Slovenia 2 0,44
Slovak Republic 1 0,397
Hungary 1 0,069
Space Market 86
The G7 countries still represent the bulk of institutional investments in space with some USD 53 billion in
2009, followed by the very active BRIC countries, with USD 9.6 billion. The total space budget of the 35
countries examined represents conservatively some USD 64.4 billion in 2009, and an estimated USD 65.3
billion in 2010.
A number of countries have reduced their space budgets in 2010 because of budgetary measures (e.g. Greece,
Spain), while others are investing more as part of their innovation and R&D strategies (e.g. France, Germany,
India, the United States). Reduction or more modest increases are however expected in 2011 in most OECD and
non-OECD countries, as the impacts of the economic crisis are reflected in governments’ expenditures.
87
2. The US Aerospace & Defence Industry

US A&D Market 88
U.S. Industry grew revenue 3.3%, this growth was largely driven by higher commercial aircraft deliveries and a
stronger aftermarket business.
As discussed above, Boeing led all U.S. companies in total revenue and some of that is attributable to the growth in
the commercial aircraft business, while aerostructures company Triumph Group’s revenue increased the fastest at
124.4% driven by a USD 1.6 billion increase in revenue to USD 2.9 billion mainly due to the Vought acquisition in
2010. Another significant performer was GE Aviation, which saw revenue growth of 7.0%, or USD 1.2 billion, to
USD 18.9 billion on higher volume and prices primarily driven by increased services and equipment sales. Northrop
Grumman’s revenue decreased 6.2%, adjusted YoY for its divestitures, mostly due to lower sales volume on space
and manned aircraft programs in its Aerospace Systems segment and lower sales volume in Land and Self
Protection Systems in the Electronic Systems segment.
The U.S. operating earnings grew 2.9%, with reported operating margin declining 0.4%. Yet, this increase was offset
as U.S. companies recorded one-time A&D related company charges of USD 1.9 billion in 2011 versus USD 1.1
billion in 2010. Excluding one-time A&D related company charges, the U.S. Industry’s core operating earnings grew
by 4.6% and core operating margin expanded by 14 bps in 2011. In addition to Boeing and Lockheed Martin
recording the highest operating earnings as discussed earlier, Northrop Grumman’s operating earnings increased by
15.9% or USD 449 million to USD 3.3 billion in 2011, as the company benefitted from higher profits across each
segment as well as a net pension adjustment of USD 400 million.
Finally U.S. companies registered a modest increase in the level of employment of 0.9% to 1,295,533 in 2011.
US A&D Market 89
The U.S. aerospace industry booked a relatively strong performance in 2011, remaining one of the most
significant contributors to the national economy. Despite persistently sluggish market conditions around the
globe, annual sales reached USD 218.1 billion in 2011, marking the eighth consecutive year of growth.
US A&D Industry Sales
250
200
150
$ billion
100
50
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 E
Source: AIA-Aerospace Industries Association
At year’s end, annual sales are expected to be up across the board in 2011. Civil and military aircraft, missiles
and the space sector are all expected to top their respective 2010 totals.
Given that the demand for aftermarket products and services is closely tied to upstream market conditions, the
U.S. aircraft maintenance, repair and overhaul (MRO) sector also experienced somewhat of a resurgence in
2011, capturing a significant share of the nearly USD 50 billion global MRO market.
US A&D Market 90
The U.S. military aircraft sector expanded by nearly 6.7% over last year, with sales estimated at USD 66.51 billion.
While 2011 was a strong year for military aircraft, domestic purchases are expected to decline in the coming years
due to federal deficit reduction measures. These measures are likely to become even more significant factors as
much of the U.S. military aircraft fleet nears maximum service-life limits.
Aerospace Industry Sales by Product Group After a disappointing 2010, the U.S.
(Billion of Dollars)
civil aircraft sector returned to a
Civil Aircraft Military Aircraft
Missiles Space growth position. U.S. civil aircraft
Related Products & Services sales are expected to total USD 49.7
$218.1 $217.7
$208.9 $210.6 billion in 2011, a 3.2% annual
$199.5
30.0 30.6
29.4 29.7 increase. Looking forward, the sector
30.2
45.0 45.3 46.4 45.1 is likely to grow at a CAGR of some

43.2
24.2 25.1 25.6 25.1 3.4% during 2011-2013. Orders for
23.2
civil aircraft are expected to rise
58.9 62.4 66.5 65.1
54.7
sharply in 2011, reaching nearly USD
48.2 51.3 48.2 49.7 51.7 107 billion, a gain of 23%.
2008 2009 2010 2011 2012(E)

US A&D Market 91
In 2011, the industry contributed USD 87 billion in export sales to the domestic economy. The industry’s
positive trade balance of USD 57.4 billion places aerospace in the lead, representing the largest positive trade
balance of any manufacturing industry.
Aerospace – US Foreign Trade
U.S. aerospace exports are expected to

120
increase to nearly USD 90 billion in 2011, up
Exports Imports
12% after falling for two years. The increase
100 Surplus
is due primarily to strengthened civil exports,
80 which are expected to grow by 14% in 2011,

$ billion
reaching nearly USD 77 billion. U.S.

60 aerospace imports are also expected to
increase in 2011, driven primarily by
40
increased purchases of foreign aircraft
20
engines and engine parts. Overall, aerospace-
related imports are expected to reach USD
0 29.6 billion, an increase of 12%.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

US Industrial R&D 92
Aerospace R&D includes a wide range of activities, from basic scientific research to the development of new
technologies in increasingly diverse fields of study. Federal dollars continue to be a significant contributor to U.S.
aerospace R&D, but in recent years, the federal role has declined relative to industry funding. The three major
federal agencies that support aerospace R&D— Defense, NASA, and FAA—have different priorities and
missions that are reflected in their respective R&D portfolios. Defense’s R&D budget is greater than any other
agency—with a large majority of its R&D funds supporting development projects—and its R&D budgets for air
and space R&D has increased in recent years. NASA’s current prioritization of space exploration has driven R&D
funding priorities, and under current plans NASA will provide more funding for development activities than for
basic and applied research. Likewise, NASA’s projected funding for aeronautics research and science is in slight
decline. FAA, with the smallest R&D budget of the three agencies, focuses funding on the development of the
next generation air transportation system (NGATS), but its R&D funding has also declined.
During federal budget belt-tightening, it is not surprising that the U.S. Department of Defense (DOD) and other
national security funding, the largest component of the “discretionary” federal budget, faces significant pressures.
Historically, administration and congressional support has often shielded the defense budgets, especially the DOD
R&D budget, from sizable cuts.
This situation has changed as federal funding for DOD R&D is likely to decline for the third consecutive year.
The challenges for federal defense-related funding are likely to continue, and potentially change in structure, if the
automatic sequester budget cuts in the Budget Control Act of 2011 go into effect in 2013. While these dramatic
cuts are seen as unlikely for many reasons, they have initiated considerable examination of spending and priorities,
including within R&D efforts, which will likely exert pressure to reduce funding for the DOD and the defense
industry.
The potential combination of two trends— (1) tightening federal budgets and (2) fairly strong bipartisan support
for federal involvement in basic and early-stage research—may bring about increases in the shares basic and
applied research receive from federal defense-related resources. Discussion and debate go on regarding the need
to both improve and enhance the level of basic research funded by the DOD. Some indications of this shift,
though subtle, may be impacting FY 2012 appropriation efforts. Overall DOD R&D funding is likely to be
reduced by slightly more than 3% from FY 2011 to FY 2012.
However, within this reduction, basic and applied research are likely to see a 6.0% to 7.5% increase (depending on
final FY 2011 figures). At nearly $7 billion in FY 2012, DOD-funded basic and applied research will still account
for less than 10% of the total federal defense R&D budget, with the balance funding development-phase activity.
However, the increased budget for research, among the other reductions, may signify changes in the overall
landscape of defense R&D as most basic and applied R&D is performed outside the corporate environment.
This shift in resources, some observers suggest, may reduce overall development costs and improve program
outcomes.
Aerospace/Defense/National Security 2009 2010 2011

Top U.S. R&D Expenditures Millions, U.S. $
30
26.16 Boeing 6,506 4,121 3,005
24.85 25.67
Industrial R&D Spending, $Billion US
25 24.27 General Electric - Aviation 705.4 817.8 646.8

UTC - Aviation 654.4 716 681
20 Lockheed Martin 724 638 537.6
Raytheon 565 625 454
15 13.05 13.81 General Dynamics 520 508 377
11.56 12.32
Honeywell - Aviation 463.1 469.3 370.3
10 Northrop Grumman 465.1 459.7 321.9
Textron 401 403 334.5
5 Rockwell Collins 325.5 347.5 266.3
0
2009 2010 2011 2012 Source: Battelle/R&D Magazine and Company Information
Global US
US Commercial Aviation 95
Industry profits for 2010, the most recent year for which data is available, were USD 16.5 billion: the aerospace industry’s
profits as a percentage of sales were 6.8%.
To underline the rising commercial aircraft sales (up 7.5% year-over-year through September 2011)
Aerospace Profits & Profit Margins
Backlog Orders Shipments
530
20 18,7 18,4
480
18
16,3 16,5
430
16
14,1 14,6
14 380
12,6
12 330
$ billion
Profits
$ Billion
10 9,5 280
% of Sales
8 7,3 7,2 230
6,6 6,5
8,2
6 7,6 180
6,4 6,7 6,8 6,8
6,1
4 5,2 130
4,7 4,2
2 3,9 4,1
80
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: AIA-Aerospace Industries Association
The orders were up for the quarter and year-over-year comparisons in fact for civil aircraft they rose sharply in 2011,
reaching nearly USD 107 billion, a gain of 23%. The amount is far below the recent high of USD 224 billion in 2007,
but is well ahead of the 2009 low of USD 23 billion.
Following two years of significant decreases in sales, U.S. civil helicopter shipments increased to 454 aircraft in 2011,
representing an annual increase of 5.3%. This upward trajectory is expected to continue into 2012 as demand deferred
during the economic downturn reaches the market.
US Commercial Aviation 96
The industry’s robust workforce also points to the vital role played by aerospace in the U.S. economy. Directly and
indirectly, aerospace employs more than two million Americans.
Aerospace employment is likely to register a slight increase in 2011, as the hardest-hit sectors of the industry find
firmer footing. Total year-end employment is expected to be 624,400, up from 624,000. According to a recent study
by the U.S. Department of Commerce, aerospace supports more jobs through exports than any other industry. The
U.S. aerospace industry directly employs about 500,000 workers in scientific and technical jobs across the nation and
supports more than 700,000 additional jobs in related fields.
Aerospace Employment
900
850
Employees (thousands)
800
750
700
650
600
550
500
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

US Global Commercial Aviation Forecast 97
In the domestic market, mainline carrier capacity expanded slightly (2.2%) in 2011 but now is projected to
contract by 0.8% while capacity for the regional carriers is projected to also decline in FY 2012 (down 0.5%). In
the international sector, capacity is forecast to increase in all markets -- Atlantic, Latin, and Pacific -- resulting in
overall international capacity growth of 2.0%.
Passenger demand shows very little growth in 2012 with system RPMs forecast to grow 0.5% and all of this
increase projected to come from international markets. An upturn is projected in 2013 with system RPMs and
passengers increasing 2.6% and 1.9%, respectively, on a capacity increase of 2.1%.
US Defence Sector 98
U.S. defence budget reductions in the order of USD 487 billion over 10 years have essentially been agreed by U.S.
administration and congressional constituents. A recent challenge of the “super-committee” to agree on deficit-
reduction measures on 23 November, 2011 would, if implemented trigger the automatic “sequester” budget
reduction of an additional USD 500 billion over 10 years, starting in 2013. Taken altogether, that implies a
reduction in force structure, (e.g., soldiers, sailors, airmen, etc.), as well as a reduction in investment accounts (e.g.,
research and development (R&D), new program starts, numbers of units ordered, etc.). Assuming that cuts will
be proportional and that the entire amount is cut, it is estimated that up to 25% of defence and government
contractor budgets are likely to be impacted, all else being equal. The impact on the industrial base is likely to be
significant, given that essentially one out of four people in the defence contractor base within the U.S. would be
potentially impacted and possibly downsized out of the workforce, should the additional USD 500 billion cut take
effect. This could mean that the U.S. defence industry may not be able to afford to keep certain technology
capabilities alive in the industrial base. It might also mean that there may not be enough work to support two or
more companies in certain technologies, thus potentially reducing competition.
The U.S. defence budget associated with contractor spend is still the largest in the world, accounting for
approximately 53.9% of global procurement spend. Even though reductions in the DoD budget are expected to
be in the USD 24 billion to USD 50 billion per year range, the budget will still be five to six times the size of its
nearest peer country.
These budget reductions are likely to have two main impacts on the global market. First, non-American A&D
companies doing business with the U.S. government will likely still continue to do business there, albeit at a lower
level of participation, all things being equal. However, a “one size fits all” generalization would not adequately
describe the outlook for these companies in 2012. In particular, there may be cutbacks to specific programs that
could disproportionately affect certain European companies due to their program concentration. Additionally, new
program down-selects may occur in 2012 that could significantly strengthen a company’s U.S. presence if they win
new competitions. Secondly, U.S. A&D companies, facing potential revenue shortfalls from their traditional sources
in the DOD, will likely strengthen their marketing and competitive positioning in emerging markets, particularly in
India, Brazil, South Korea, Japan, Kingdom of Saudi Arabia, and the UAE. These countries, with their increasing
wealth and growing security concerns, are expected to increase their purchases of sophisticated weapons systems,
where U.S. companies have competitive strengths. Thus, for European A&D companies, there will likely be
increased and intense competition for these foreign military sales opportunities.
Finally, the more strategic impact may potentially be a reduced capacity to address multiple and simultaneous
expeditionary military, humanitarian, or police-action campaigns, although the DoD process for conducting a
strategic defence review may provide a clearer path forward. However, past is prologue and should there be a need,
the U.S. government would likely ramp up its capacity and capabilities to address defence and security requirements
in time of emergency, as they have done in the past, no matter what the budget is.
The following chart provides the breakdown of the US DoD’s budget, provided by the National Defence Budget
Authority. 350
Military Personnel
300
Operation &
250 Maintenance
Procurement
200
$ billion
150 RDT & E
100 Other
50
Military
Construction
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 E 2013 R Family Housing
The following chart provides the breakdown of the US Department of Defence’s budget by branches of the US
Army for FY 2011, 2012 Enacted and 2013 Requested
800
700
116.3
600 110.1
104.8
500 163.3 Defense-wide
161.7
$ billion
154.3 Air Force

400
173.5 Navy
300 172.5 170.1 Army
200
100 232 201.4 184.7 Source: 2012 US Department of

0
Defence
2011 2012 E 2013 R
2011 Total DoD Budget by Military Department (in $)

200.000.000
180.000.000 These three charts indicate a breakdown of the total

160.000.000
59.859.775 DoD budget by Military Department for FY 2011,
140.000.000
120.000.000 2012 and 2013.

4.198.125
100.000.000 42.675.814
80.000.000 36.401.933 2013 Total DoD Budget by Military Department (in $)

20.813.332
60.000.000 41.983.390
300.000.000
43.426.250 28.250.871
40.000.000
20.000.000 39.967.634 19.908.486 250.000.000

20.762.853
11.414.514 76.275.827
0
Operation and Procurement RDT&E
Maintenance 200.000.000
Army Navy Air Force Defence Wide
54.528.766
150.000.000
2012 Total DoD Budget by Military Department (in $)
4.672.827
300.000.000 59.448.103
100.000.000
37.089.310
250.000.000 76.470.177 18.279.816
50.000.000
82.492.726 43.894.985 25.481.196
200.000.000 22.853.350 16.942.996
55.471.696 0 8.949.275
150.000.000 Maintenance
9.079.119
56.715.705 Army Navy Air Force Defence Wide
100.000.000
40.873.188
19.288.988
50.000.000 95.331.749 45.790.822
26.481.707
24.836.442 17.727.772
0 8.403.603 Source: 2012 US Department of Defence
Maintenance
Army Navy Air Force Defence Wide

The below table and charts indicate a further breakdown by type of expenditure for the budget allocated for 2013
by the DoD indicating the delta for the period 2011-2012 and 2012-2013.
Procurement Army 2013
$ in Thousands Δ '11-'12 Δ '12-'13

Army
Aircraft
Other 32% Aircraft -1.548.372 -157.786
42% Missiles -235.555 -235.437
Weapons&Tracked Comb -910.400 -590.394
Ammunition -113.164 4.394
Other -7.534.258 -916.407
Missiles
Total -10.341.749 -1.895.630
7%
Weapons&Tr
Ammunition acked Comb
11%
Vehicles
8%
Procurement Navy 2013 $ in Thousands Δ '11-'12 Δ '12-'13
Navy
Aircraft 914.371 -862.791
Marine Corps Other
Procurement 14%
Weapons -360.522 -115.424
6% Shipbuilding&Conversion -422.326 -1.339.269
Ammunition Aircraft Ammunition -499.703 101.338
2% 40% Marine Corps Procurement -553.843 -89.928
Other 93.792 18.750
Shipbuilding
&Conversion Total -828.231 -2.287.324
31%
Source: 2012 US Department of Defence
Weapons
7%
Procurement Air Force 2013
$ in Thousands Delta '11-'12 Delta '12-'13

Air Force
Aircraft Aircraft -1.350.070 -2.877.178
Other 30%
Missiles 937.788 -583.148
53%
Ammunition -449.810 107.202
Other 166.368 -948.971
Missiles Total -695.724 -4.302.095
15%
Ammunition
2%
Procurement Defense-Wide 2013
Chemical
Agents & $ in Thousands Delta '11-'12 Delta '12-'13
Munition Defence-Wide
Destruction Procurement, Defense-Wide -23.561 -929.729
22% Defense Production Act
Defense 135.808 -80.775
Purchases
Production Chemical Agents & Munition
Act Purchases 87.115 -252.636
2% Procurement, Destruction
Defense-Wide Total 29.398 -1.182.365
76%

Defense Service Contract Spending by Contractor Size ($) For the period observed (2000 to 2011),
250 large contractors had the highest
growth rate with an 11-year CAGR of
200
50 10.4%. The second highest growth rate
42 41
47
49 Contractor Size Category
(11-year CAGR)
was for small contractors, with a 6.5%
Constant 2011 Billions
150 47
43
60
Big 6 Contractors (6.7%) 11-year CAGR, on par with the 6.7%
37 57 60
33 55 Other Large Cotractors (10.4%)
56 Medium Contractors (5.6%) CAGR for Big 6 contractors (Lockheed,
100 28 44 45
Small Contractors (6.5%)
34 42
20
21 Boeing, Northrop, GD, Raytheon, and
25 65 63
21 60 60
20
47 49 53 BAE). Medium-sized contractors
50 49 45
38 42
33 experienced the lowest growth rate,
33 33 36 41 41 39
22 26 26 31
0
19 20 with an 11-year CAGR of 5.7%.
2000 2001 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011
Large contractors nearly tripled their market value from USD 39 billion in 2000 to USD 101 billion in 2011, while the
Big 6 more than doubled from USD 20 billion in 2000 to USD 41 billion in 2011; this is down from USD 50 billion in
2009, which is notable because the dollars awarded to other large contractors remained stable during that timeframe.
Medium-sized contractors and small contractors nearly doubled their market values in 2000-2011, from USD 33 billion
to USD 60 billion and from USD 19 billion to USD 39 billion, respectively.
In terms of market share, Big 6 contractors declined from 22% in 2000 to 21% in 2011 (after reaching a high of
27% in 2006), other large contractors increased from 22% in 2000 to 28% in 2011, medium-sized contractors
dropped from 36% in 2000 to 31 in 2011, and small contractors remained relatively steady at 20-21%.
In the recent years of budget tightening (2009-2011), total defence contract dollars for services awarded to small
contractors decreased by just under USD 3 billion, while those going to medium-sized contractors decreased by USD
6 billion. The total value of contract dollars for defence services awarded to the Big 6 contractors decreased by USD
9 billion, while other large contractors declined by less than half a billion dollars. The relative market share of the
small and medium size categories remained unchanged in 2011 compared to 2009. The big 6 declined from 23% in
2009 to 20% in 2011, while other large contractors increased from 28% in 2009 to 30% in 2011.
The makeup of the top 7 defence service

Top 20 Defense Services Contractors, 2000-2011
contractors has been stable, with the only
Top 20 Contractors in 2000 Obligations in 2000 Millions Top 20 Contractors in 2011 Obligations in 2011 Millions
Loocked Martin $ 8,111 Loocked Martin $ 13,590 differences between 2000 and 2011 being
Boeing $ 4,665 Nortrop Grumman $ 8,459
Raytheon $ 3,082 Boeing $ 6,018 the disappearance of TRW (acquired by
TRW[Northrop Grumman] $ 2,104 Raytheon $ 5,567
Northrop Grumman $ 1,857 SAIC $ 4,730
$ 19,818 $ 38,364
Northrop Grumman) and the entry of L3
General Dynamics $ 1,724 General Dynamics $ 4,038
SAIC $ 1,680 L3 Communications $ 3,635 into 7th place in 2011. However, there has
Computer Science Corp. $ 1,451 Humana $ 3,439
Bechtel $ 839 TriWest Healthcare $ 3,093 been more significant upheaval within the
Halliburton $ 753 Health Net $ 2,963
Fondation Health Federal Service $643 ITT $ 2,945 rest of the top 20, with eight of the
Litton [Northrop Grumman] $ 606 Computer Science Corp. $ 2,926
Dyncorp International $ 604 BAE Systems $ 2,891 remaining contractors in 2011 being
BAE Systems $ 587 Dyncorp international $ 2,861
ITT $ 587 Fluor $ 2,722
Newport News Shipbuilding [N.G] $ 582 Booz Allen Hamilton $ 2,543
newcomers compared to 2000. Health care
FedEx $ 562 KBR $ 2,250
Johns Hopkins University $ 539 CACI $ 2,219 service providers account for three of these
The Mitre $ 523 URS $ 1,754
Booz Allen Hamilton $ 514 Hewlett-Packard $ 1,750 new firms: Humana, TriWest Healthcare,
Total for Top 20 $ 32,012 $ 80,395
Total for all industry $ 92,304 $ 198,536 and Health Net.
The impact of mergers and acquisitions is also evident, as three of the top 20 contractors in 2000 were later acquired
by Northrop Grumman: TRW, Litton, and Newport News Shipbuilding.
Overall, the top 5 contractors’ share of the market has declined from 21% in 2000 to 19% in 2011, while the share
held by the top 20 has increased from 35% in 2000 to 40% in 2011.
US Space Sector 107
Last year was particularly challenging for the U.S. space industry. Developments in 2011 that have directly
impacted the industry included: retirement of the space shuttle, which caused the loss of thousands of
high-tech industry jobs; the near cancellation of the James Webb Space Telescope; and reductions in
NOAA polar orbiting weather satellites and national security space programs. Despite these roadblocks,
there were some bright spots including an agreement on a way forward for an important new NASA
exploration initiative, the Space Launch System, which will develop a new launch system to enable human
exploration beyond Earth orbit. Budget cuts will continue to play havoc in the U.S. space industrial base,
and an anticipated increase in competition from Indian, Chinese and Russian space programs will
exacerbate the situation.
US Space Sector 108
The US Space market accounts for 75% worldwide institutional spending and 95% of worldwide military
spending. The two main government agencies that consume most of the Space Institutional budget are
NASA and Department of Defense (DoD).
The US has been the major Space power over the last five decades and has led the world in terms of space
exploration as well as in the use of space assets for civil and military applications.
The US’s FY 2012 budget includes 10,2 billion for the DoD Space Program to maintain US supremacy in
space (providing communications, navigation, missile warning and environmental monitoring capabilities).
This includes nearly 0,5 billion to develop spacecraft and sensors for the Defense Weather Satellite System
(DWSS).
The budget also supports the Obama Administration’s restructured strategy for the National Polar orbiting
Operational Environmental Satellite System (NPOESS) involving three agencies: DoD, Department of
Commerce and NASA.
US Space Sector 109
In the FY 2013 Space budget request continues to pursue satellite block buys to avoid costly production
breaks, preserves the most critical industrial base capabilities, and reduces nonrecurring engineering costs
for the procurement of the Advanced Extremely High Frequency (AEHF) and Space Based Infrared
System (SBIRS). The Department will achieve additional efficiencies through a new acquisition strategy for
the Evolved Expendable Launch Vehicle program; and by restructuring the Joint Space Operations Center
Mission System, next generation GPS satellites and commercial imagery. Additionally, the Department will
restructure the Operationally Responsive Space program in order to provide more responsive and timely
space capabilities to the warfighter. Overall, space funding in FY 2013 is 8,0 billion and totals 40,1 billion
from FY 2013-FY 2017.
US Space Sector 110
Satellite Manufacturing Revenues (in $)
14,0
13,5 Average: USD 11.7B +/- 15%
12,0
Revenue (in Billion of U.S. dollars)
11,6
12,0 10,5 11,9
10,8
10,0
Two-thirds of 2011 U.S. satellite manufacturing
8,0 7,7
revenues were derived from U.S. government
6,0 5,0
4,8 5,6 6,2
4,0
contracts.
3,1
2,0
World Revenue includes U.S. revenue.
0,0
2006
2007
The U.S. share of global satellite manufacturing
2008
2009
2010
2011 remained constant at 52%.
U.S. Revenue World Revenue

Source: SIA-Satellite Industries Association
• U.S. Satellite Manufacturing revenues increased by 10%, from USD 5.6 billion in 2010 to USD 6.2 billion in 2011:
 U.S. firms built 22% of the spacecraft launched in 2011, but earned more than half of satellite
manufacturing revenues, reflecting production weighted toward more technologically sophisticated
satellites
• Europe accounted for 32% of 2011 Satellite Manufacturing revenues
• Asia accounted for 15% of 2011 Satellite Manufacturing revenues
US Space Sector 111
Satellite Launch Industry Revenues (in $ Billion)
Average: USD 3.9B +/- 31%
World Revenue includes U.S. revenue.
70% of 2011 U.S. launch revenues derived

from U.S. government contracts.
Source: SIA-Satellite Industries Association
• U.S. launch revenues rose from USD 1.2 billion to USD 1.9 billion, increasing the U.S. share of global revenue
from 27% in 2010 to 39% in 2011.
• Worldwide Launch Industry revenues increased by 10% in 2011, compared with a 4% decline in 2010.
 Launches for government customers remained the major revenue driver in 2011, accounting for 59% of
all commercially-procured launch revenues - an increase from 54% in 2010
 The number of commercially-procured launches increased marginally, from 54 in 2010 to 56 in 2011
 The average revenue per launch increased due to a greater number of heavier-class launches.
• European, Russian, and Asian launch revenues comprised 25%, 19%, and 17% of the global total, respectively
US Space Sector 112
U.S. Satellite Industry Employment decreased by 1% in the first three quarters of 2011, a net loss of 2,169 jobs.
The pace of job losses slowed compared to the prior year, which saw a 2.7% drop in U.S. satellite industry
employment.
U.S. satellite companies shed 14,309 jobs, or 5.6%, between 2006 and 3Q 2011:
• Since reaching an employment peak in 2008, the industry has shed 21,877 jobs (an 8.3% decline), linked to the
global economic downturn;
• Three of the four industry segments experienced job losses in 2011:
• Satellite Services lost 1,087 jobs, or 1.4%;
• Satellite Manufacturing shed a net 941 jobs, or 3.5%;
• Launch Industry employment declined by 1,565 jobs, a decline of 3.2%.
• The Ground Equipment segment grew by 1,424 jobs, or 1.6%.
113
3. The European Aerospace & Defence Industry
Strictly Private and Confidential

European Global A&D Market 114
In 2011, European A&D companies’ revenue grew 0.8%. EADS contributed 30.0% of total European Industry
revenue in 2011 due to increased aircraft production and orders. In addition to strong revenue growth at
Babcock International, as highlighted earlier, Safran’s revenue increased 5.7%, driven by higher OEM volumes
and improved aftermarket trends in its Aerospace and Security business. Although 68.0% of European A&D
companies generated incremental revenue growth in 2011, cumulative revenue at BAE Systems, Finmeccanica,
and Dassault Aviation decreased by USD 8.3 billion in 2011, muting the region’s growth. Coupled with the
declines of Finmeccanica and BAE Systems mentioned above, Dassault Aviation’s revenue decreased 21.1% due
to a reduction in new aircraft deliveries to 63 from 95 in 2010
European companies’ reported an operating earnings decline of 21.6% in 2011, as the impact of non-recurring
A&D related charges was greater in Europe than in the United States, while and the European core operating
earnings fell by 7.1%. The European companies recorded a more pronounced drop in reported operating
earnings and operating margins than their U.S. counterparts in 2011. Collectively, the reported operating earnings
of the European companies decreased 21.6% and the reported operating margin contracted by 133 bps to 4.7%
in 2011. European companies as a whole recorded non-recurring A&D related company charges of USD 3.0
billion in 2011 versus USD 1.1 billion in 2010 primarily associated with Finmeccanica’s 2011 USD 2.1 billion
charge discussed above. Excluding one-time charges, the European Industry’s core operating earnings decreased
by 7.1% and core operating margins contracted 51 bps in 2011. Higher sales in Airbus Commercial and
Eurocopter drove strong operating earnings improvement at EADS. Other companies such as SAAB recorded
improved operating margins partly due to one-time gains in 2011. Thales operating earnings benefitted from
strong improvement across all defence & security divisions as well as the absence of charges discussed earlier.
European companies recorded an overall industry employment increase of 4.6% to 669,984 (+29,437) in 2011.
The overall growth of Europe’s A&D sector was mainly driven by civil air transport, military aircraft and
helicopters, aero-engines and landing systems.
In the civil aeronautical sector, the industry maintained a steady pace on the production and delivery fronts,
while new orders peaked up significantly in the large commercial aircraft segment after hitting very low levels in
2009. The situation was less rosy in other civil segments such as general aviation and rotorcraft, which still had to
grapple with a significant downturn in the first half of 2010 (even though the second half saw the start of a
recovery).
Large delivery volumes were recorded in the military aeronautics area, where a strong focus was put on new
programme developments, upgrading and through-life product support.
Europe’s defence sector achieved good results in 2010, as it benefited from a further rise in export opportunities
outside Europe (in particular in the Middle East and Asia). This was especially true for land-related defence
business, where performance was better than in the naval segment.
Meanwhile, activity in the European space industry reached an all-time high last year thanks to the robust health
of European institutional markets. Employment in the sector evolved accordingly and is now back to the peak
reached in the 1990’s with some 33,600 full-time jobs.
Aerospace and Defence Industries - Key Characteristics of

the Year 2010
Europe’s aerospace and defence companies
Turnover € 162.9 bn
proved able to turn in good overall Military 58%
Civil 42%
performances in 2010, despite the continuing Direct Employement 704,2
impact of the global economic downturn in the Arospace 500
R&D expenditure (aeronautics only) € 13 bn
first half. Exports (aeronautics only) 61%
Operating Profit Margin 6,8%
Source: ASD Eurospace, Facts and Figures, 2011
• A turnover increase of more than 5%, mainly driven by the aerospace sector (especially its military
component).
• A 2% decrease in employment in the aeronautics sector was offset by a 6% increase in employment in the
space industry, which maintained employment levels in the aerospace sector at the same level (half a million
people) as in 2009.
• An increase in total employment of 1.2%, mainly driven by a rise in the defence sector (particularly in the
land sector).
• A relatively stable R&D ratio against turnover.
• A growth in exports outside Europe for the European aeronautical and land defence industries.
• An increase in the operating profit margin across the different ASD sectors (net of organic growth) at 6.8%,
up from 5.7% in 2009.
Aerospace and defence industries pursued the expansion of their activities outside Europe in 2010; in fact new
partnership programmes worldwide are:
• AgustaWestland and Tata Sons, an Indian industrial group, signed agreements to create a joint venture in India;
• Russian Helicopters and AgustaWestland set up a joint partnership;
• BAE Systems completed the acquisition of Atlantic Marine Holding Company, a U.S. naval service business;
• BAE Systems established a joint venture with Mahindra & Mahindra Limited, Defence Land Systems India
Private Limited;
• Meggitt Aircraft Braking Systems signed a MoU with Irkut Corporation, to develop the entire digital brake-by-
wire braking system for the Russian company’s new commercial aircraft programme;
• The joint venture ICN, owned by DCNS and its Brazilian partner Odebrecht, started the execution of the
contract signed with the Brazilian Navy for the construction of four submarines and a naval base.
European aerospace and defence companies have been enlarging their industrial presence in emerging countries
representing huge potential markets such as Brazil, China, India, the Gulf States and Mexico.
ASD Sector Turnover Breakdown (billion euro)

Billion Euro at current price
180
The European industry’s turnover is
162,9
160 154,7
expressed in Euro, the 2010 results were
139
140 132,2
120 114,9
125,5
positively influenced by the progression of
106,6
97,3 100,4
100
81,6
90,5 94,5 currencies such as the Swedish and the
80
60
Norwegian Krone, the Swiss Franc, the
45,5 46,8
40
26,5 27,8 29,1
34,3
Zloty, the Czech koruna, the US dollar and
20
6,8 7,2 8,6 7,4 8,8 9,4
0
the Pound Sterling against the Euro.
Aerospace and Defence Aeronautics (civil+military) Space Land and Naval Defence
2005 2006 2007 2008 2009 2010
Sector Turnover Breakdown

In particular for the year 2010 the total turnover
for A&D was €162.9 billion and the more
Land and profitable was the Aeronautics (civil + military)
Naval Defence
29% with a percentage of 65%, followed by Land and
Naval Sector (29%) while the Space sector
Aeronautics
Space (civil+military account for only 6% of total turnover.
6% )
65%

Aerospace and Defense Industry Employment 2003 - 2010

Employment in A&D industries reached 704,200
Number of employees
720 (,000)
696
704 in 2010, i.e. +1.2% compared to 2009. The
700 681
680 strongest increase was still observed in the defence
660 649
638
640
614 sector (+ 8.1%) which can be explained by the level
620 601
600 589
580
of activity observed in this sector as well as by the
560
540
re-evaluation of defence statistics in some
520
2003 2004 2005 2006 2007 2008 2009 2010 countries such as Germany and the Netherlands.
In aeronautics, the sector recorded a decrease of
National Contributions to Direct Aerospace and Defense Industry
Emplyment 2% in employment.
Number of employees (,000) Aerospace and Defence 2010 Employment Breakdown

250
193,1
200
Employment total: 704,200 employees
151,1
150 132,7
Land and Naval
100 Defence
51,6 30,1%
50 38,5
21,2 20,1 15,9 13,3 9,9
8,1 8 7,3 7,1 6,1 4,8 4,5 4,5 3,4 3
0
Aeronautics
65,1%
Space
4,8%
European Industry Operating Profit margin
% Operating Profit
8%
7.1%
7% 6.8%
6%
5.7%
5%
4%
4.2%
3%
2%
1%
0%
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
-1%
In 2010 A&D industries recorded a significant increase in operating profit margin (net of organic growth),
which shot up from 5.7% in 2009 to 6.8% - very close to the all-time high of 7.1% achieved in 2008. Such a
growth was mainly driven by the significant improvement of EADS’ performance in 2010 (particularly Airbus
Military), while other major players generally maintained good results.
Synoptic chart of ASD «Aeronautics» and «Defence» sectors

(figures in Euro bln)
Civil Military
Civil
Aeronautics
Military Land & Naval
Aeronautics Defence
Aeronautics 106.6
Defence 93.5
Aeronautic and Defence 153.4
Civil Aeronautics Military Aeronautics Civil Land & Naval Defence
59.9 46.7 46.8

In 2010 the European aerospace and defence industries continued to be an important contributor to the
European economy in terms of advanced technology, spin-offs to other sectors and trade surplus - thanks to their
high export propensity. The aeronautical industry represented 2.6% of the EU’s external exports.
ASD military aerospace/defence industries revenues

(percentage) Aeronautics € 42 bn
aircraft 12 In 2010, three-quarters of
helco 4,5
engines 5,5 European defence investments
Naval ATC/avionics 3
18% were provided by A&D companies,
electronic/equipment 17
Missiles € 4 bn the remaining quarter coming from
Aeronautics
45% Space € 1 bn
Land € 29 bn imports, MoD in-house and
Land vehicles/weapons 10
31% outsourcing to the civil sector.
electronics 10
equipment 9 Around 87% of the A&D turnover
Naval € 17 bn
in defence is generated by the 6 LoI
Space Missiles vessels 10
1% 5% electronic/weapons 4 Countries ( The Letter of Intent –
European MS Defence investments (percentage) equipment 3
Total € 93 bn LoI – Framework Agreement
Treaty between the Defence
Ministries of France, Germany,
Intra-EU
25% Intra-EU € 23 bn
Domestic
Italy, Spain, Sweden and the UK),
Export extra-EU € 25 bn
Europe
48% Domestic Europe € 45 bn 13% by other EU countries and
Aeronautics 21
Export extra-
Land and Naval 24
non-EU countries included in the
EU
27% ASD perimeter.
Breakdown of European ASD Industry Turnover by Top world A&D companies’ ranking in 2010
product segment and final products by revenue (in million €)
Naval vessels 7%
Naval Safran 10.760
Land equipment 7%
electronic/weapons 2% Rolls-Royce 11.230
Land equipment 6% Naval equipment 3%L-3 Communications 11.830
GE Aviation 12.950
Land electronics 7%
Thales 13.310
Finmeccanica 15.320
Land vehicules/weapons
7%
UTC 17.610
Aircraft final Raytheon 19.000
Missiles 3% product 32% General Dynamics 24.490
BAE Systems 26.100
Aerostructures (Civil &
Military) 3%
Northrop Grumman 26.220
Lockheed Martin 34.550
Aeroequipment, stand, Eads 45.750
alone ATC, avionics, Boeing 48.500
optronics 13%
Civil aeroengines 9% 0 10.000 20.000 30.000 40.000 50.000 60.000
MRO airlines 5%
Military Aeroengines 3%
When considering the 2010 global ranking (in terms of revenue) of the world’s top aerospace & defence
companies, the European companies appeared well positioned vis-à-vis their US counterparts, with EADS coming
2nd after Boeing, BAE Systems 5th, Finmeccanica 9th, Thales 10th, Rolls-Royce 13th and Safran 14th.
Ranking of major European companies in A&D in 2010

by revenue (in million €)
Krauss-Maffei Wegmann 900

Meggit 1.350
GKN 1.690
The six largest European players generated
Babcock 1.730
over €120bn in the A&D sectors in
Avio 1.750
Kongsberg 1.920 Europe, representing 3/4 of the total
Quinetiq 1.980
Rheinmetall 2.010 turnover generated.
Zodiac 2.150
Overall about 20 companies can be
Cobham 2.220
DCNS 2.500 considered as large players.
SAAB 2.560
MTU Aero Engines 2.710 A second group of around 100 medium to
Dassault Aviation 4.190
large companies is followed by a vast
Safran 10.760
Rolls-Royce 11.230 number of specialized SMEs employing an
Thales 13.130
Finmeccanica 15.320 estimated 200,000 employees across
BAE systems 26.100
Europe.
EADS 45.750
0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 50.000

European Aeronautic Sector 126
In 2010 Europe’s aeronautical sector (civil and military activities) recorded a turnover of €106.6bn, an
increase of 6.1% on 2009 figures. The appreciation of some European currencies against the euro in 2010
contributed to this increase in Euro denominated turnover.
The airline industry enjoyed a recovery in 2010 after suffering significant loses in 2008 and 2009. Many
airlines recorded above-average passenger and cargo traffic growth as well as a return to profit.
Passenger air travel recovered well after the 2008/9 decline: 2010 saw demand (expressed in Revenue
Passenger Kilometres, RPK) increase by over 8%, with capacity growth (expressed in Available Seat
Kilometres, ASK) accelerating as the year progressed and as airline confidence recovered. Business jet flights
also increased.
Civil aeronautics represents nearly 60% of the European aeronautics industry in terms of turnover.
Turnover* and Employment
While the turnover of the European aeronautics

industry grew by 6.1% in 2010, employment in
the sector contracted by 2% compared to the
previous year.
European Aeronautical Labour Productivity

* Based on unconsolidated turnover
Since 1980, the turnover per employee in the
European aeronautical sector has steadily
increased, reaching an overall long-term growth of
more than 3% per year. After a peak reached in
2007 and a labour productivity decline in 2008 and
2009, 2010 saw another important increase. Over
the 1991-2010 period, labour productivity in the
sector grew by 61%.
Turnover Breakdown by Market:

Civil/Military; European In 2010, civil markets remained prevalent accounting for 56% of the turnover
Domestic/Exports
of the European aeronautical industry, however due to the increased
Military importance of the military market their share shrank by nearly 3 percentage
European
Domestic points compared to 2009. 74% of the civil turnover was generated by exports
24%
Civil Export
outside which represents an increase of 3% on the previous year.
Europe
Military 41%
Export outside On the military side, the European domestic market remained predominant
Europe
20% with a share of 55% of the total military turnover, although the export market
grew at a slightly faster pace than the domestic one.
Civil European
Domestic
15%
Comparison aeronautical turnover breakdown for 2006 and 2010
50,0%
44,1% 43,7%
45,0% 42,5% 41,8%41,4%
40,0%
2006
35,0% 2007
2008
30,0% 28,5%
26,0% 2009
24,8% 24,4%
25,0% 23,2% 2010
22,0%
19,4%
20,0% 17,3% 17,7%
15,5%16,4% 14,8% 15,1%
15,0% 13,5%
10,0% 8,0%
5,0%
Source: ASD Eurospace, Facts and Figures,
2011 0,0%
Civil Export Outside Europe Civil European Domestic Military Export outside Europe Military European Domestic
National Contributions to Direct European Aeronautical

Industry Employment
Overall, the European aeronautical industry continued
Number of to reinforce its position as a global actor serving markets

employees (’000)
160,0
143,0 all over the world, with exports representing 61% of the
140,0
120,0
total turnover.
100,0 93,3
88,7 The export breakdown illustrates that civil activities still
80,0
represented the majority of exports, while military
60,0
35,5 activities continued to increase their share to 32% of all

40,0
25,8
20,0 13,3 13,0
7,9 6,8 6,5 4,9 4,0
exports (up from 25% in 2008).
3,5 3,1 3,0 3,0 2,3 0,7 0,4
0,0
Breakdown of European Aeronautical Industry
Turnover by aircraft final products
Civil Business
National Contributions to Direct European Helicopters Aircraft Regional
Aerospace Industry Employment 9% 6% Aircraft
Number of
Military 2%
180,0 employees (’000) Helicopters
9%
160,0 155,1
140,0
120,0
Military Aircraft Commercial
96,9 94,7
100,0 24% Aircraft
80,0 51%
60,0
40,1
40,0 28,2
20,0 13,8 13,3
8,6 6,8 6,5 5,4 5,3 3,9 3,6 3,2 3,0 2,3 1,0 0,6
0,0 Source: ASD Eurospace, Facts and Figures, 2011
The turnover of the final products is estimated at €51bn.

This figure also includes the customer support services which generally accompany the sale of aircraft. 2010
saw an increased proportion of military aircraft (+6%) compared to over the commercial aircraft.
Comparative aerospace industry turnover*

The following currency rates have been used: Comparative aerospace industry employment
1US$ = 0,75431 €, 1¥ = 0,00860 €, CAN $ = 0,73254 €
Canada Brazil
Japan** 6,8% 1,8%
Canada 2.5%
5,4% Brazil
Japan 1,6%
3,6%
USA*
Europe 49.7%
Europe 39,2%
USA**
37,1% 52.3%
* unconsolidated turnover for Europe * excluding company staff not directly related to development
** Turnover estimated, excluding turnover not directly manufacturing of aerospace products
** excluding employment not directly associate to aerospace

European Aeronautic Sector-EGAMA 131
Number of GA aircraft deliveries per year
EGAMA represents a group of leading

1200
1117
European general aviation (GA) manufacturers 1071
976
1000 944
ranging from complex business jets to 854
800 764
helicopters and small leisure aircraft, as well as 620
652
615
589
600 556
519 528
the supply chain of these companies. Their 457
419
388 376
400
activities result in some 30,100 jobs. EGAMA 295
325 329
298
200
aims at fostering co-ordinated industrial views
on strategic areas of interest such as 0
2004 2005 2006 2007 2008 2009 2010
Fixed-wing Aircraft Helicopter Total General Aviation

airworthiness, safety, the environment, air
traffic management, security and R&T. Source: ASD Eurospace, Facts and Figures, 2011
Between 2004 and 2007, the number of aircraft deliveries for EGAMA members consistently increased each year,
with particularly high growth rates observed in 2005 and 2006 (more than 20%), as well as in 2007 (15%). Since
2008, the year of the financial recession, deliveries have decreased each year, down to a total of 854 in 2010 (which
is still 37% higher than the 2004).
Commercial value of GA in € million
10.000
8.982
9.000 8.555
8.048
8.000 7.530
7.000 6.400
6.000 5.377 5.439
5.000 4.720 4.526 4.456

4.428
4.027 3.835
4.000 3.502 3.620
3.327
2.923 3.074
3.000 2.756 2.621
2.516
2.000
1.000
0
2004 2005 2006 2007 2008 2009 2010
The total commercial value of GA products rose significantly between 2004 and 2008 before it contracted by
6% in 2009. 2010 was marked by a strong recovery resulting essentially from the higher commercial value
generated by fixed-wing segment (+25%).
In terms of commercial value, in 2010 as in 2004, the “fixed-wing” segment contributed for about the same
value as the helicopter segment.
Employment in General Aviation 30,100 employees were working for the GA industry in
EGAMA companies in 2010. This represents an
40000
35.300
increase of 13% compared to 2004 and due exclusively
35000
30.400
28.200
30.100 to the growth observed in the helicopter segment.
30000 27.500
26.600 26.800
25000 22.400 The growth in employment was particularly rapid in
20.100
18.100
20000
14.700 14.800 15.020
17.600
2007 (only in the helicopter segment about 55% of total
15000 11.900 12.000 12.300 12.800 12.900
10.100 10.000 GA) and 2008, reaching a rate of more than 10%. This
10000
5000 growth was mainly driven by the helicopter segment. In

0
2004 2005 2006 2007 2008 2009 2010
2009 as the result of 2008 crisis it contracted by 20%
Number of GA fixed-wing aircraft deliveries per year

in Europe and outside
In 2010 the total number of GA fixed-wing aircraft 600
519 528
deliveries decreased by a further 9%, which brought 500

419
the total number of General Aviation fixed-wing 400
388
329
313
295 298
aircraft deliveries back to their 2004 level. 300
255
292
249
227 215
194
Europe represented 65% of total deliveries in 2004 200 170 162 167 165
133 133
101
and in 2005. This figure dropped to 45% in 2010. 100
0
2004 2005 2006 2007 2008 2009 2010
Fixed-wing Aircraft Europe Fixed-wing Aircraft outside Europe Fixed-wing Aircraft Total
Number of Helicopter Deliveries per Year in Europe and

Outside
Helicopter deliveries increased up to 2008, with
700 652 a growth rate of 15% in 2005 and more than
615
589
600 556
20% in 2006 and 2007. Since 2009, deliveries
500 457
376
407 396 have dropped – by 6% in 2009 and 9% in 2010.
400 369 370
314
300
295
254 256
Despite this recent contraction, in 2010,
246
194 201
200 143
182 186
helicopter delivery figures were 70% higher than
122
100 in 2004. Throughout the period analysed
0
2004 2005 2006 2007 2008 2009 2010 Europe has represented between 30% and 40%
Helicopter Europe Helicopter outside Europe Helicopter Total
of the total of helicopter deliveries, with a peak
The number of employees in the GA fixed-wing Employment in GA fixed-wing aircraft per year in Europe and
of 40% reached in 2009.
outside
segment slightly increased each year up to 2008.
14000 12.800 12.900
After a strong decrease of 21% in 2009, 11.900 12.000 12.300
12000
10.200 10.300 10.100
employment levels seemed to stabilized in 2010. 10000 9.300 9.400 9.700 10.000
7.700 7.600
Europe represented around 80% of jobs in the 8000
6000
fixed-wing segment up to 2008. This figure has
4000
2.600 2.600 2.600 2.600 2.600 2.400 2.400
now dropped to 76% after the 2008 crisis. With a 2000
total of 10,000 employees in 2010, the total 0

2004 2005 2006 2007 2008 2009 2010
labour force in the fixed-wing segment has Employment Fw acft Europe Employment Fw acft outside Europe Employment Fw acftTotal
contracted by 16% compared to 2004 levels. Source: ASD Eurospace, Facts and Figures, 2011
Employment in GA Helicopter per year in Europe and outside
25000
22.400
20.100
20000 18.100
17.60018.000
16.100
14.700 14.800 15.200
14.500 14.400
15000
12.300 12.400 12.600
10000
4.400 4.000
5000 3.100 3.700
2.400 2.400 2.600
0
2004 2005 2006 2007 2008 2009 2010
Employment Helico Europe Employment Helico outside Europe Employment Helico Total
The total number of employees in the helicopter segment has strongly increased since 2004, despite the
drop observed in 2009. Europe represents around 80% of employment in the helicopter segment. With a
total of 20100 employees in 2010, the total labour force in GA Helicopter has grown by 37% since 2004.
European Space Sector 136
Main industry facts 2009 2010

The European space manufacturing industry
Direct industry employment 32,535 34,334
is a niche strategic sector, four large
Other personnel working on site 1,482 1,020
Total space industry employment 34,017 35,355 industrial holdings (EADS, Finmeccanica,
Final sales (M€) 5,472 6,146
Safran, and Thales) are directly responsible
Final sales by Customer (Europe & Exports) M€ constant e.c. 2009 2010 Change for more than 70% of the total employment
Final sales 5,623.14 6,145.99 9.3%
in the space industry. The largest dedicated
European public customers 2,876.99 3,252.25 13.0%
European private customers 1,388.81 1,429.8 3.0% space business units and industrial
Other European customers 84.09 84.04 -0.1%
Public customers RoW 411.73 541.11 31.4% capabilities are found in EADS Astrium and
Private customers RoW 840.22 804.01 -4.3%
Other customers RoW 36.64 34.78 -5.1% Thales Alenia Space.
Mergers and acquisitions have restructured
Final sales by type of system M€ constant e.c. 2009 2010 Change the sector, industry restructuring explains
Final sales 5,623.14 6,145.99 9.3%
Launcher systems 1,096.42 1,070.38 -2.4% some of the reduction in employment which
Satellite applications systems 3,081.17 3,108.1 0.9%
Scientific systems 844.83 989.52 17.1% has affected the sector since the mid-1990s,
Ground sytems and services 507.43 877.82 73.0%
Other & Unknown 108.64 100.17 -7.8% but market-related factors apply as well.

Final Sales (M€ current e.c.) & Employment (FTE)

Main industry facts 2009 2010
Direct industry employment (FTE) 32,535 34,334
Other personnel working on site (FTE) 1,482 1,020
Total space industry employment (FTE) 34,017 35,355
Final sales (M€ constant e.c. 2010 ) 5,623 6,146
Employment started growing again in 2006 and

has maintained an upward trend ever since,
backing revenue growth in the same period.
Sales by main customer (M€, current e.c.)
In 2010, the space manufacturing industry
experienced a significant growth of final sales
(+12.3% in current terms, +9.3% in constant
e.c.) supporting continued direct employment
growth (+5.5%).

The European space industry has access to two main markets: an institutional domestic market and a market for
commercial and export customers. Exports also include sales to institutional customers outside Europe, such as
space agencies in established or emerging space powers (178M€). The European institutional market represented
more than half of the final sales of the European space manufacturing industry in 2010. The commercial & export
markets include a wide variety of customers, such as satellite operators, Eutelsat and SES in Europe, Arabsat and
Globalstar outside Europe, which represent €1.6bn worth of sales. They are closely followed by launch service
providers which procure launch systems from industry for a total of 670 M€.
Final sales by customer (Europe and exports M€)
Other/unknown customers
Sales of equipments and parts RoW

Exports
22%
Sales Private satellite operators RoW
Private Europe
Customers an sales
Sales to Aerospace 78%
Sales to European private operators
Sales to Public institutions RoW

Public
Sales to other European Institutions Customers
Sales to ESA
Source: ASD Eurospace, Facts and Figures, 2011 0 500 1000 1500 2000 2500
The European industry has access to a large array of Matrix of sales

M€ European Customers Rest of the World Total
customers, public and private entities, in Europe and
Public Customers 3,252.2 541.1 3,793.3
abroad, but its core business remains with European Private Customers 1,429.8 804.0 2,233.8
Other/unknown 84.0 34.8 118.8
public customers (54% of final sales in 2010). Total 4,766.1 1,379.9 6,146.0
Final sales by Customer
(Europe & Exports) M€ constant e.c. Commercial (private) customers represent, as a whole, 37% of industry’s
Private
sales (2.2 B€). They are composed mainly of private entities operating
customers
(RoW) launchers or satellites, and as a result, their purchases are concentrated on
13%
Private
customers Public telecommunications systems and operational launchers.
(Europe) customers
(Europe)
24%
54% Institutional (public) customers are those government funded entities
that pursue space programmes. They represent 63% of industry sales
Public
customers
(RoW) (3.8 B€, in growth from 2009)
9%
The sales of the European space industry are mainly located in Europe (78% of final sales). Exports represent a
smaller but significant share (22%). European customers (€4.7bn) are dominated by ESA (€2.1bn) and Arianespace
(€0.67bn). Together, European private operators also represent an important share too (€0.76bn).
Export sales (or sales to customers in the Rest of the World, €1.38bn) are more or less evenly split between three
categories, public operators, private operators and sales to other companies in the sector. It is interesting to note that
exports are almost exclusively composed of telecommunications systems.
Institutional customers in Europe

Other &
The European Space Agency (ESA), at €2.1bn, was the largest
unknown, 2%
customer of the European space industry in 2010. Sales to ESA grew
Sales to
Arianespace,
that year, supported by increased output from the s the Agency and
14%
Sales to
those related to Galileo activities. As a technical body, ESA manages
private
satellite
Sales to ESA, 44%
programmes of its own as well as programmes funded by third
operators,
16%
parties, such as Eumetsat (the Meteosat programme) or the European
Commission (The GMES sentinels and Galileo procurement).
Sales to military
institutions, 9%
Sales to European Sales to European Institutions by system (M€)

Sales to other Sales to public Commission, 1%
civil public satellite 0 50 100 150 200 250 300 350 400 450
agencies, 12% operators, 2%
Launcher
Within institutional customers in Telecoms
Earth Observation
Europe, military entities represent Navigation
only 9% of final sales at €420M, but Science
Human Space Infrastructure …

sales of military systems are worth Microgravity
more at €834M as the procurement EGSE,MGSE (Test & Supporter equip.)
Ground Stations (TT&C,….)

of defence systems is often Services to industry (Enginnering, …
ESA Other Institutional
delegated to civil agencies or to Other unknow
private entities with PPP schemes.

Matrix of Sales
Civil Systems Military Sistems Total
Civil Customers 5,238.1 420 5,658.1
Military Customers 73.8 414.1 487.9
Total 5,311.9 834.1 6,146.0

Military Civil
European space industry products include military and Customers; Customers;
50% 50%
civil systems. Civil system sales are still the vast majority
of sales (86%), but military systems sales were in growth
in 2010, at 834.2 M€ (+21%). This growth was mainly
supported by ground system sales, to military European
customers.
With the evolution of public procurement practices, and
Military
in particularly the transfer of system ownership outside Systems
(2010); 14%
the public domain, the procurement of military systems
is now spread across a variety of actors. This is why the
Civil Systems
sales of military systems (834.2 M€) exceed the value of (2010); 86%
sales to military institutions (487.9 M€). Military systems

are mainly sold to European customers (77%).
2010 sales versus 2009 in M€

In 2010 the increase of sales was supported equally by
Other &
growth in three market segments (in growing order of
unknown
importance):
Total ground
systems and
services • Ground systems (particularly on military markets)
Total
scientific • Scientific systems
programmes
Total satellite
• Satellite applications systems (and more specifically
applications 2010
2009 navigation and telecommunications systems).
Total
Launcher
Satellite applications systems are the main source of
0 1000 2000 3000
income for the European industry (3.1 B€ i.e. 50% of
Final sales by type of system (M€, current e.c.)
final sales), and is the main domain of exports (with
1.13 B€). Telecommunications systems are more easily
exported than other systems, and in 2010 their exported
value exceeded that of European sales. Main customers
for telecommunications systems are private satellite
operators worldwide (1.2 B€) while public institutions
represent almost 600 M€. The 1.2 B€ of commercial
sales are evenly distributed between European

customers and exports.
European Defence Sector 143
Land and Naval Turnover from 2003 to 2010
Billion €
The European defence sector consists of land
50,0 46,8
45,5
45,0 and naval businesses; in that broad range of
40,0
35,0
34,3 products and services, it is worthwhile
27,8 29,1
30,0 26,0 26,8 26,5 mentioning the growing importance of the
25,0
20,0 content of combat systems in the naval sector,
15,0
and of net-centric electronic systems for the
10,0
5,0 battlefield in the land sector.
0,0
2003 2004 2005 2006 2007 2008 2009 2010 In 2010 turnover and employment were
Land and Naval Employment from 2005 to 2010 globally higher than in the previous year,
250000 number of confirming the resilience of the defence
employees 211,900
195,900 business to the global economic downturn. On
200000 185,100
177,300
155,200
163,100 the other hand the sector started to face a
150000
more challenging trading environment as
100000 governments have been looking for cost

savings to compensate their soaring debt levels.
50000
2010 saw a decrease in the turnover generated
0 by the naval sector, which contrasted with the
2005 2006 2007 2008 2009 2010
increase observed in the land sector.
Split of employment between Land & Naval
Employment increased slightly in the land sector and remained
140000 128.700
virtually unchanged in the naval sector.
120000
Half of the sector’s revenues stem from an advanced offer of
100000
83.200
80000
land systems with specialised versions: armoured tracked and
60000 wheeled tracked vehicles and artillery. Supply of turrets, advanced

40000 ammunition, optronics and logistics complete the picture of land
20000 platforms. Protection against mortar, rocket and artillery attacks
0 has also been emerging as a new area of interest. The other half
Land Naval
Land & Naval % Breakdown of Total Turnover

of revenues in the land segment relates to electronics, including
embedded sensors for installation on platforms of Command &
Control Navigation systems, integration with autonomous
Network Enabled Capability involving a spectrum of sensors,
Naval
36,2% communication and systems for application at soldier, tactical and
Land strategic levels. In 2010 the European naval sector continued to
63,8%
be affected by the global economic downturn. During the year the
world’s military naval activities registered a slowdown with only
€4bn of orders for new vessels (-55% compared to 2009 and -
Source: ASD Eurospace, Facts and Figures, 2011 30% compared to 2008).
SAAB 67% 33%

TELESPAZIO
FINMECCANICA
10.2% 100% 100%
AUGUSTAWESTLAND
50%
ATR ALENIA AERMACCHI
50% 15%
AVIO GROUP
33%
BAE
THALES ALENIA SPACE THALES
SYSTEMS 67%
21%
37.5% 33%
25%
DASSAULT
AVIATION 3.8%
MBDA EUROFIGHTER 45.3% 30%
ARIANESPACE
37.5% 46% 2.1% 10%
2.1%
2.1%
EADS EMBRAER
1.1%
100% 100% 100% 100% SAFRAN
AIRBUS EUROCOPTER CASSIDIAN ASTRIUM

32%
NH
62.5%
European R&D Investments 146
The EC JRC ranks the world’s top 1400 companies by independent investment in R&D. In the aerospace and
defense domain, the 2010 data covers 55 companies: 19 from the U.S., 31 from Europe, and 5 from the rest of the
world.
Aerospace and Defense R&D, 2010
R&D Investment (in $ Million) R&D % of Sales R&D % of Operating Profit

US 9,596 3.1% 30.3%
Europe 11,365 5.6% 98.1%
Rest of the World 654 2.1% 31.4%
Total 21,615 3.9% 47.6%
Source: EC JRC; analysis by CSIS, 2010
European aerospace and defense companies have a larger presence in the top 1400 IR&D (internal R&D) investors
than the U.S. and the rest of the world combined. In addition, European companies collectively spend more on
IR&D than their peers elsewhere, though U.S. firms on average spend the most per company. These trends hold true
for the entire 2007-2010 period. While total dollars spent is an important input measure, measuring effectiveness and
productivity requires something else. IR&D investment as a share of sales and operating profit provides additional
measures that help shed more light on R&D spending.
Though IR&D as a share of sales declined over the four-year period in all three geographic segments, it began to
rebound in the US and the rest of the world in 2010, while stabilizing in Europe. European aerospace and defense
companies, however, spend a considerably higher percentage of their revenues on IR&D than their U.S. and global
counterparts.
The ratio of IR&D investment to operating profit is also a useful metric. Operating profit comprises the profit left
over after paying for the costs of production (including R&D expenses), before interest and taxes. For aerospace and
defense companies in the U.S. and the rest of the world the ratio of IR&D spending to operating profit is around
thirty percent, while for European companies it is nearly 100 percent.
But in order to reap the rewards of investments in R&D, those investments must be effectively translated into sales
and profits. In order to analyze this, we divide sales by R&D investment to determine the returns these companies
are getting out of their R&D investments. While R&D productivity increased industry-wide, with $1 in 2007
generating $23 in sales and $25 in 2010, the variation in productivity between geographic segments is stark. One
IR&D dollar invested in 2010 by a European aerospace and defense company resulted in $18 of sales and $1 of
profit, while in the U.S. it generated $33 in sales and $3 of profit, and $48 in sales and $3 of profit in the rest of the
world.
The EC JRC data looks at the broader aerospace and defense sector, which includes many commercial aerospace
companies. By taking a subset of these companies, those that derive the preponderance of their revenues from
defense, we can isolate data on IR&D investment and productivity for the defense industry
Pure Defense R&D, 2010
R&D Investment (in $ Million) R&D % of Sales R&D % of Operating Profit

US 2,459 2% 16%
Europe 5,673 5% 117%
Total 8,133 3.1% 40.5%
Source: EC JRC; analysis by CSIS, 2010
Within the defense sector, European firms still dominate in terms of company representation and overall IR&D
investment. European companies spend more than twice as much as U.S. firms on IR&D – in overall spending and
as a share of sales – and also slightly outpace the U.S. in IR&D investment per company.
Like in aerospace and defense, IR&D spending in the pure defense sector is down from 2007 levels, and IR&D
productivity is up in both Europe and the U.S. The productivity gap between U.S. and European companies seen in
the aerospace and defense section grows even wider for the pure defense companies. In 2010, $1 spent on IR&D by
a European defense firm returned $20 in sales, while $1 spent by an American company generated $59 in sales.
Nonetheless, European companies may be learning closing the gap. Between 2007 and 2010, European defense
companies saw the greatest improvement in IR&D productivity, a 26 percent increase, while U.S. defense firms
improved by 19 percent. U.S. defense and aerospace companies experienced the lowest improvement rate, with only
an 8 percent rise in IR&D productivity between 2007 and 2010.
In the upcoming era of budget austerity, improving R&D productivity will be paramount. Recent data show that for
IR&D, defense companies have done this better than diversified aerospace and defense companies. Moreover,
Europeans firms improved faster than their U.S. counterparts while maintaining higher overall IR&D investment
levels. Though American companies still have a substantial lead in IR&D productivity, Europeans are beginning to
close the gap.
149
4. The Italian Aerospace & Defence Industry

Italian A&D Market Overview 150
The worldwide aerospace market is valued at €187.550 million. The aerospace sector in Italy generates about
€6000 million (8.1% of the European market).
The technological capabilities and productive sector remained intact and strong further evidenced by the
commercial success achieved in different countries with advanced products, such as the AW101 helicopters,
AW139, T129, M346 new trainers, the ATR regional aircraft, the aircraft C27J tactical transport, the Falco UAV,
radar RAT31 and Grifo, corvettes and patrol boats, naval artillery, armored vehicles Centaur, the Lince vehicles,
new vehicles average and multi-role armored troop carrier with amphibious capabilities.
For these issues Italy is considerable achievement in a globalized market, competitive and selective as the current.
Italy ‘s aerospace industry is the 4th largest aerospace and defence industry in Europe and the 7th largest
worldwide; representing the biggest high-tech systems manufacturing sector in Italy and employing a workforce
of 50,400 with a decrease respect 2010 when the employees were 52,000 .
In 2011, the sector sales were €13.6 billion respect €13.3 billion registered in previous year, with €7.5 billion of
this coming from exports by the sector.
The aviation industry, while representing only 0.65% of GDP (eg aerospace reaches 1%), contributes on average
to the extent of 8-10% to the national balance of trade surplus and to more than 2% national. to the exports.
The Italian aerospace industry represents the largest manufacturing sector in Italy in the field of hightech
integrated systems. The Italian aeronautical industry is a strategic area supported by national and regional
programs and characterized by international collaboration. The key players are Finmeccanica, its subsidiaries, a
wide network of SMEs, research centers and universities. Italy is well integrated in international projects and has
primarily fostered relationships with non-European partners. Infact it stressed that the projection of
manufacturing Italian companies across national boundaries, as large companies with systems capabilities
integrated, Finmeccanica, Fincantieri, IVECO, AVIO acquired subsidiaries in especially in USA, United Kingdom
and Poland, where they operate a total of about 30,000 employees.
The structure of national market is centered around 4 main groups mentioned above, some medium to large
companies with autonomous capabilities, and to about 120 small and medium-sized mainly operating in the
supply chain and technological niches of excellence.
The Finmeccanica Group (60 percent owned by the government) has a leading role in the aerospace, defense and
security sectors. The Group holds a 50 percent share in Agusta Westland, the world’s second biggest producer of
civil helicopters, and owns Alenia Aermacchi and the Avio Group. Alenia Aermacchi is a recent merger of Alenia
Aeronautica and its subsidiaries Alenia, Aermacchi and Alenia SIA. Alenia Aermacchi manufactures products for
military and commercial aircraft, turboprops, aero structures, advanced mission systems, unmanned aerial systems
(UAS), parts, subassemblies and is a provider of aircraft maintenance services. It is the world leader in the
production of training aircraft. Avio – founded by Fiat and now owned by Finmeccanica and the British private
equity firm Cinven – is one of the oldest companies operating in the aerospace industry worldwide and a leading
manufacturer of aircraft and naval engines and a leader in space propulsion. Another important player is Piaggio
Aero Industries that designs, develops, constructs and maintains aircraft, engines and aircraft structural
components. Mubadala Development Company and the Tata Group are stakeholders in the company.
Italian Civil Industry Overview 153
The main civil industrial programs and partnerships in which the Italian industry participates include:
• Boeing 787 Dreamliner: Alenia North America and the Boeing Company set up the joint venture “Global
Aeronautica” to produce the 787 Dreamliner, a mid-sized, wide-body, twin-engine jet airliner. Alenia produces
composite fuselage and horizontal stabilizers for the B787. Fuselage parts are integrated in the industrial
complex in Grottaglie prior to shipment to the Boeing assembly facility in Everett, WA.
• EADS Airbus: Alenia Aermacchi is a partner in the European Aeronautic Defense and Space Company N.V.
(EADS). It produces aero structures for the A321 and A340–500/600, and supplies fuselage parts for the
A380. In an equal-share joint venture with EADS, Alenia Aeronautica owns ATR that dominates the regional
turboprop market.
• Superjet 100: In partnership with the Russian company Sukhoi, Alenia has developed an advanced
environmentally-friendly regional jet. Finmeccanica owns 25 percent of Sukhoi's civil division.
• ATR: The EADS and Alenia Aermacchi JV holds four-fifths of its market segment worldwide. ATR will
produce 70 planes in 2012 and 80 in 2013. The turboprop market has gained importance due in part to rising
fuel costs.
U.S. companies remain leaders in terms of the strength of aircraft manufacturers and also in the supply of aircraft
parts. In Europe, more than 70 percent of aircraft related imports originate from the United States, and 30
percent of these imports are parts and components. U.S. exports of civil aircraft, engines and parts to Italy totaled
630 million USD in 2011. U.S. suppliers will continue to benefit from this competitive advantage.
The Italian aerospace industry is characterized by clusters located in close proximity of Alenia Aermacchi and its
subsidiaries. The regions that host these clusters include Piedmont, Lombardy, Lazio, Puglia and Campania. Incentives
are provided by regional policies to support investments. Technological and manufacturing know-how includes: fixed
wing (Alenia), rotating wing (Augusta Westland), propulsion, software, fuselage components, design and assembly of
parts (in aluminum, titanium and composite materials), metallurgy, mechanics, electro-mechanics, electronics,
manufacturing and processing of plastics, rubber and all high-performance materials for complex applications. About
25 percent of the national companies operating in the sector are located in the Campania cluster (29 major companies
plus 130 sub-suppliers). The Piedmont cluster is a production and scientific pole whose focus is technological
innovation. Turin University Polytechnic and other specialized research centers provide design and R&D services. Five
regional players and over 300 SMEs stand out at national and international level, both in civil and military fields.
The tendency during the last several years has been the creation of inter-regional clusters in order to streamline the
supply chain to match activities with the expertise of Italy’s research centers and universities. Inter-regional clusters
have been formed by the Campania and Puglia regions, and by Campania, Puglia and Piedmont.
With its industrial backbone of smaller enterprises, Italian industry has made an effort to support subsystem
integrators who have the necessary financial and management resources. Secondly, Italian industry policy aims to
strengthen its stake in the civil market, particularly since it must lessen the dependency on the defense market that has
been reduced due to budget constraints. The partnership with Sukhoi is an example of Italy’s goal to become an
important player in the civil aviation market. Another trend of Italian aviation companies is the establishment of
production sites in North Africa and global sourcing.
The Alitalia (main carrier) fleet is perhaps the youngest in Europe and comprised of 144 aircraft. A modernization
process began in 2009 with the introduction of the new Airbus A320. In 2012, at least 20 new planes will join and 16
old planes will leave the Alitalia fleet. On the long-haul routes, service is provided by the Boeing 777-200, Boeing 767-
300 Extended-Range version and Airbus A330. On medium-haul routes, service is provided by the Airbus A321, A320
and A319, MD80 and MD82. Service on the regional routes is provided by the Embraer 170, 175, 190 and Bombardier
CRJ900. Alitalia’s low cost carrier Air One plans a fleet of 10 Airbus A320 aircraft by 2012.
Europe holds an extremely strong position in large civil aircraft and in helicopters. The third largest manufacturer is
ATR that continues a conservative approach by relying mainly on turboprop technology versus its larger competitors.
Europe has a considerable market for turboprop aircraft, and Piaggio is another important manufacturer. Its P180
Avanti is the world's fastest turboprop.
Business and General Aviation, the segment with the smallest aircraft, is dominated by U.S. and Other North American
manufacturers. In General Aviation, Europe holds about a third of the relevant market with the 3 firms PiaggioAero
(Italy), Pilatus Aircraft (Switzerland), and SOCATA (France). Business aviation is concentrated in 6 European countries
including Italy which holds about 10% of the market share. The increase in demand for regional and national flights in
Italy has been influenced by the dissatisfaction of many business users with the state-owned railway service.
The general aviation industry has defined roadmaps to reduce aircraft environmental impact by 50%. New lighter,
more aerodynamic planes using satellite-linked avionics will reduce fuel consumption and noise.
The ambitious goals involve materials, power, fuel, “smart wings”, cockpit advances and independent energy sources
for equipment. In October 2011, Alenia Aeronautica announced the 2012-2020 corporate strategy with a 3.9 billion
USD (1.3 billion USD for the civil sector) investment plan for the development of a new regional aircraft and
innovative unmanned aerial vehicles (UAV).
Europe leads in the civil helicopter market with Eurocopter and Agusta Westland. Agusta Westlands’ international
network of collaborations has allowed the Anglo-Italian Group to broaden its product range thus opening up new
markets. The Group has developed a holistic approach from product definition, to the sales process, to aircraft delivery,
training, maintenance and spare parts support. Agusta Westlands develops all avionics resulting in added flexibility and
cost containment. In the engine market, aside from the large OEMs and corresponding joint ventures, there are several
first and second tier suppliers including Avio S.p.A.
Italian Defence Market Overview 157
In regards to European defence and national strategies for the development of alliances or rearrangement of
structured cooperation between countries and major industrial groups, it is important for the Italian defence
industry to focus on the close bilateral open agreement between Italy and Germany, at both ministerial and
industrial association levels. With regards to this, recently rumors talk about the possible merger between
Finmeccanica and Thales able to oppose at the alliance Bae Systems-EADS, that would create an European
industrial giant, capable of competing with the U.S. Boeing and that would cut Finmeccanica off from the big
world powers.
The international framework of reference retains many elements of continuity with previous years, due to
continued high volatility, resulting from numerous regional crises, not least those on the southern shores of the
Mediterranean. Furthermore this framework is not to be considered consolidated due to the nature of changing
situations of cross border tension, exacerbated by a possible interaction with the persisting effects arising from a
global financial crisis. Some areas of particular importance to the nation, both for proximity and geographic
interests, present considerable problems, with particular emphasis the wider Mediterranean area, including the
Balkans, Eastern Europe, the Caucasus, the North Africa, the Horn of Africa, the Near and Middle East and the
Persian Gulf.
The following charts show the breakdown of the Italian Ministry of Defence’s expenditure and the breakdown
of the Italian Ministry of Defence’s expenditure as a percentage of the Italian GDP.
18.000
15.408
16.000 14.149 14.080 14.340 14.280 14.360
13.803 13.639
14.000 12.107
12.000
€.million
10.000 External functions
8.000 Pensions
5.271 5.287 5.381 5.529 5.594 5.770
6.000 4.556 4.695 4.795 Carabinieri
4.000 Defence
2.000 771 729 365 289 304 231 309 324 326
0
246 238 222 115 100 112 116 164 101
2003 2004 2005 2006 2007 2008 2009 2010 2011
1,20
1,03 1,02
0,96 0,93 0,96
1,00 0,91 0,90
0,87
0,83
0,80
% GDP
External functions
0,60
Pensions
0,34 0,34 0,34 0,36 0,35 0,34 0,36 0,35 0,36
0,40 Carabinieri
Defence
0,20
0,06 0,05 0,03 0,02 0,02 0,01 0,02 0,02 0,02
-
0,02 0,02 0,02 0,01 0,01 0,01 0,02 0,01 0,006
Source: IAI-Istituto Affari Internazionali 2011
2003 2004 2005 2006 2007 2008 2009 2010 2011
The following chart shows the breakdown of the Italian Ministry of Defence Budget expenditure in 2011.
Operations
10.2%
Infrastructures
0.2%
Workforce
60.6%
Investments and
R&D
29.0%
Breakdown of the Defense Function by the

Expenditure Sectors Expenditure Breakdown By Defence Department
100%
100% 12,5% 90%
22,6% 23,6% 20,1% 22,3% 24,1% 24,8% 24,6% 21,8% 21,8% 23,4% 22,0%
90% 80%
80% 15,2%
13,2% 12,3% 10,1% 70%
70% 16,3% 17,3%
60% 18,2% 18,0% 19,0% 19,1% 19,7%
60% 18,7%
50% 50%
40% 72,3% 40%
61,0% 66,7% 65,4% 65,9%
30% 59,1%
30%
20% 39,2% 35,7% 36,5% 38,5% 36,0% 37,5%
20%
10%
10%
0%
2006 2007 2008 2009 2010 2011 0%
2006 2007 2008 2009 2010 2011
Personnel Operations Investments
Army Navy Air Force
Source: IAI-Istituto Affari Internazionali 2011
Italian Space Market Overview 160
Regarding the Space sector the Agenzia Spaziale Italiana (ASI), Italy’s space agency, managed a budget of
€362.0 million (USD 445.0 million) in 2010, excluding contributions made to ESA. This represents a 9.7%
spending increase by ASI when compared to €330.0 million in 2009. Italy’s contribution to ESA totaled €370.0
million (USD 737.5 million) in 2010, an increase of 0.1% from 2009. Combining, the ASI budget and Italy’s
ESA contribution results in a total expenditure of €732.0 million (USD 899.8 million), representing
approximately 0.16% of Italy’s planned 2010 budget of €458.0 billion (USD 563.0 billion). The total Italian
space budget increased by 4.46% compared to 2009. Space spending has been spared from Italian government-
wide budget cuts in 2010, and future budgets are also expected to remain unaffected. A 2010–2020 Strategic
Vision Plan developed by the Italian government for ASI in 2010 plans for €7.0 billion (USD 8.6 billion) of
Italian space-related spending over the period. Approximately 37% of these funds are to be devoted to science
activities, 33% to Earth observation, and the remainder is to be split equally between launch vehicle
development and Italy’s contribution to the ISS.
In November 2010, the fourth and final satellite in the COSMO-SkyMed constellation of radar Earth
observation satellites was launched. The total cost of the COSMO-SkyMed development program, funded by
both ASI and the Italian Ministry of Defence, is estimated at €1.13 billion (USD 1.39 billion). ASI plans to
issue a €600.0 million (USD 737.5 million) contract in 2011 to procure two new satellites to replace the first two
COSMO-SkyMed spacecraft. The new satellites are expected to launched in 2014 or 2015. Within ESA, Italy
continues to lead the Vega small launch vehicle development program.
The Italian aerospace and defence sector is spread widely throughout the country (Abruzzo, Campania, Friuli,
Latium, Liguria, Lombardy, Piedmont, Apulia, Sicily, Tuscany and The Veneto), although five aerospace districts
stand out for their concentration of activity:
• Piedmont accounts for about €2.6 billion of annual aerospace and defence sales, approximately 25% of the
national sector, and employs 12,500 people. The area is specialized in technological innovation and R&D and
counts over 300 companies operative in the sector, including several big players such as Alenia Aermacchi, ,
Avio, Aviospace, Selex Galileo, Thales Alenia Space and some scientific research institutes and universities
like Politecnico of Turin, INAF (National Institute for Astrophysics) and INRIM (National Institute of
Metrological Research).
• Lombardy accounts for about €4.0 billion of turnover and €1.7 billion of exports that accounts for a 38%
share of Italian aerospace exports. This area accounts for more or less 185 companies (87% SMEs and 13%
Prime Contractors) with 15,000 employees (27% SMEs and 73% Prime Contractors). The region produces
Mechanical Components and Subsytems, Avionics and system integration, Systems and Equipment,
Structures, Tools and System for production, Testing and Maintenance, Special Materials, Trainer Aircraft,
Helicopters and vertical flight, Satellites and scientific payload systems.
• Latium accounts for about €5.0 billion in turnover employing around 33,000 workers. The district aims to
enhance the hi-tech and innovative products in the sector and to include around 250 companies plus 10
important institutions / research centers (ASI-Italian Space Agency, CNR-National Research Council,
INFN-National Institute of Nuclear Physics, CSM-Materials Development Center), five Universities and
five Scientific/Technological Parks.
• Apulia counts over 50 enterprises, producing sales of around €1 billion and employing over 5000 people.
The competences of the district include: planning; construction; aircraft and helicopter complex systems;
as well as planning, development, and marketing of advanced real time software systems for aerospace,
civil, and military application.
• Campania accounts for about 10% of Italy’s aerospace & defence workforce (10,000 employees),
generating around €2 billion in revenues annually, contributing to the 21% of the entire Italian Aerospace
market. The importance of Campania in aerospace technology is evidenced by the presence in the region
of prestigious universities, the numerous research facilities and the close interconnection between the
industry and R&D. The tradition of research and technological innovation sees CIRA (Italian Centre of
Aerospace Research) as the key player and includes INAF, ENEA, CNR, the Regional Centres of
Expertise (MARS, AMRA, CERICT, New Technology, Technapoli), and the consortium of private SME
companies such as ALI, SAM and CHAIN.
163
Appendix
BRIC Countries 164
The international balance of power has changed significantly in the past two decades. The disintegration of the
Soviet Union, the economic rise of a number of Asian countries and the ever growing transfers of technologies,
facilitated by the rise of the information society, have all contributed to this new international landscape.
In the past few decades, some large economies such as Brazil, Russia, India and China (BRIC) have acquired a
vital role in the world economy as producers of goods and services, receivers of capital, and as potential
consumer markets. The BRIC economies have been identified as some of the fastest growing countries and the
engines of the global recovery process, which underscores the changed role of these economies.
The emergence of several BRIC countries is also reflected in A&D Industry so it could be interesting to give a
brief description of the market for each of these countries in the following charts.
Brazilian A&D Market 165
The Brazilian A&D industry will continue to thrive over the next few years, driven by GDP and individual income
growth, as well as wealth creation particularly in the middle class. In addition, the expansion of credit and long-
term financing has been powerful drivers of economic growth. Finally, real-dollar exchange rates have stabilized,
resulting in lower foreign exchange credit risk. These drivers have provided a foundation for robust economic
activity and bode well for the A&D market in Brazil. Air travel demand has increased at impressive levels and
nearly tripled in the past decade, as more people can afford to fly for business and leisure. In commercial airlines,
revenue from domestic and international regular flights operated by Brazilian companies has increased from
R$13.8 billion in 2003 to R$21.6 billion in 2010. In defense and security, the Brazilian Air Force budget has
increased from R$4.6 billion to R$8.02 billion, signaling an increased priority for national defense. This is one of
the most significant military investments for the Brazilian government.
In addition to organic market expansion, Brazil’s involvement in the 2014 International Federation of Association
Football World Cup and 2016 Olympic games will increase travel to the country generating additional revenue for
the industry. These mega events are likely to expand the interest in tourism, business, and infrastructure
development. The Brazilian government plans to invest R$5.6 billion to modernize airports in preparation for the
sporting events. Another important factor driving the markets is the high-speed development of biofuels for
aviation. Thus for the next year, industry sector activities in Brazil appear to be increasing.
Russian A&D Market 166
Aerospace is one of the Russia's highest value adding manufacturing sectors, with between 275 and 300 aerospace
companies, including 108 industrial producers, and 111 R&D and design bureaus.
The Russian aerospace industry is one of several key business sectors kept under constant review and scrutiny by
the Russian Government. It is estimated by the Federal Target Programme “The Development of Civil Aviation
Engineering in Russia for 2002-2010 and to 2015” to spend $6.3 billion for the support and development of the
aviation industry as Russia is looking towards the hi-tech sector as a source of its future growth. It has been stated
that Russia expects to become the world’s third largest aircraft manufacturer by 2015.
The Programme prepared by the Industry and Trade Ministry envisages that sales of Russian airplanes are to
account for 10% of the world market, while helicopter sales are to account for 27%-30%. The share of domestic
components are to account for at least 70% of the cost of airplane production by 2020–2025.
The global aerospace industry has been focused on Russia due to the huge growth potential in the Russian market
as manufacturers replace and upgrade equipment and look for modern materials, components, and technologies
for their products.
Key government organisations representing 80% of the Russian Aerospace:

United Aircraft Corporation (UAC), $3.81 bn (revenue in 2009). A holding consisting of the leading Russian
aircraft design and manufacturing companies, focused on the country's aircraft output and improving efficiency.
United Engine-building Corporation, $1.8bn* UEC consolidates over 80% assets in Russia’s engine-building
sector. Was established as Oboronprom affiliate to control design and manufactoring of series production of
engines for aerospace, energetic and transport.
Helicopters of Russia Holding, $0.9bn*. The managing body of the consolidated Russian helicopter industry,
incorporates 14 helicopter companies, setting new standards of competitiveness, efficiency, technology, and
profitability.
Rostekhnologii was established to promote the development, production and export of high-tech industrial
products.
Memorandum Of Understanding was signed at the Farnborough International Airshow 2010 between the United
Aircraft Corporation and A|D|S UK. The Russian Association of Aircraft Engine Manufacturers also signed a
similar MoU with A|D|S. Aerospace is likely to be a particularly fruitful sector for collaboration, with Russia set
to develop Europe’s largest aerospace market by 2013.
Regarding the opportunity areas in trade they are:
• Parts/Products/Platforms: UAC requires a number of parts for existing aircraft and is also to be prime
contractor on major upgrade programmes. The wider range of required products includes engines, control
drives, power supply units for airfields, frequency converters, avionics, communication systems, navigation
systems, on-ground electronic equipment, seals, emergency equipment, interior, fasteners, paints, lacquers.
Significant share of Russian manufacturers including the Aerospace companies need to upgrade their
manufacturing technologies and equipment. For example, a number of Samara-based aerospace
manufacturers of carrier rockets, jet propulsions, aviation engines and different components for them, bearings
for aerospace industry, etc., look for state-of-the-art machine-tools and tolling. Regional administrations launch
machine tool modernisation programmes in their regions, with recent initiatives in Samara, Ulyanovsk, and the
Sverdlovsk Region.
• Seaplane production: is fast developing and international business partners are sought for design, marketing,
supply of propellers and other components.
• Advanced Composites: New projects emerging in the Russian Aerospace sector envisage the use of advanced
composite materials. UAC has announced a new $100m JV to manufacture composite wing components in the
city of Kazan, Tatarstan. At the inception phase, the JV would import raw material for composite components.
“Aerocomposite”Ltd., created by UAC, deals with design, testing, manufacturing and realisation of composite
parts, aggregates and components of civil aircraft. It is currently cooperating with British companies e.g.
“Instron”, “SciTech” and is eager to find new partners. Sukhoi, one of Russia’s premier aircraft designers, is
already designing, producing and testing parts and units built from polymer and composite materials.
• Aircraft Projects : A number of indigenous aircraft programmes are underway or being planned that present
opportunities for companies with contract research and/or consultancy capabilities - SSJ 100; MS-21; Tu-204
SM.
• Helicopters: Russian Helicopters is the leading Russian full-cycle designer and manufacturer of helicopters for
civilian and defence markets. The holding actively works with international suppliers and seeks new partners in
the following areas: Safety, medical, search and rescue and fire protection equipment for helicopters, Avionics
Navigation and connection systems, Fasteners, External equipment, Tools and materials and Helicopter market
analysis and specialized Mass Media.
With regard to the Space opportunites Russia intends to create a brand new Spaceport – Vostochny. The project
will be implemented in stages, with construction stareted in 2011. In 2015 the first unmanned launch will take
place, and the launch of the space shuttle is planned for 2018. The Vostochny is likely to launch Russia’s first
manned mission to Mars. The construction of Vostochny will require an investment of $11.5bn and it is going to
become Russia’s major spaceport, with most launches to be made from there.
Indian A&D Market 170
India is a nation on the ascent in terms of wealth creation, spending on space, commercial air transportation, and
defense sector. First, the Indian space sector has been experiencing growth with the launch of Chandrayaan-1, the
Indian Remote Sensing series and Indian National Satellite system. The Indian Space Research Organization
(ISRO) is experiencing success with the in-country design and production of spacecraft. ISRO is likely to
establish new facilities and develop a host of technologies for India’s first manned mission scheduled for 2016. A
new project, the Indian Regional Navigational Satellite System, has been developed for improving national
intelligence, surveillance, and reconnaissance capabilities with a launch of the first satellite planned during 2012-
2013. Finally, the Chandrayaan-II mission is expected to launch in 2013, with the objective to collect samples of
lunar soil and conduct in situ chemical and mineralogical studies.
Second, regarding commercial aviation, India is one of the fastest growing aviation markets and is expected to be
the third largest domestic market after the U.S. and China by 2020. The commercial aviation market in India
during that time is expected to grow at a compound annual growth rate (CAGR) of 18 percent, and the market
for new passenger aircraft in India is expected to be US$150 billion, with 1,320 new airplanes delivered over the
next 20 years. Traditional mainline as well as low-cost carriers are expected to participate in fleet renewals and
additions to serve growing and new markets.
Indian A&D Market 171
In addition, the flourishing Indian private general aviation and business jet market are expected to grow to 12
percent of the global market, surpassing China and Japan. It is expected to reach to 2,000 units purchased by
2020, up from 650 units delivered by August 2011 year to date. Furthermore, there is an emerging demand for
helicopters and unmanned aerial vehicles (UAV).
Finally, increased defense spending is a welcome bright spot in India for global suppliers experiencing downturns
in their home countries. India’s 2012 Defense Procurement Procedure will likely also define offset guidelines with
the introduction of certain standard global practices and provision for foreign exchange risk. The indigenous
Indian defense sector continues to look for favorable support from the Indian Ministry of Defense (MOD) in
terms of expeditious awarding of contracts, providing tax incentives, issuing industrial licenses, increasing foreign
direct investment, and building up the indigenous defense industrial base. Foreign defense contractors will likely
need to continue to work with these indigenous suppliers in order to be successful in India.
Chinese A&D Market 172
China is expected to continue the modernization of the industry, with several development programs underway.
China is the market which holds most allure for aviation companies worldwide, by virtue of its size, fast growth rate
and the fact that it is now gradually opening up to the Western world. Boeing predicts growth in air travel of 7.6 per
cent over the next 20 years, with a need for 5,000 new aircraft by 2030.
In the commercial aircraft industry, the COMAC C-919 single aisle commercial air transport program is well under
development, with first flight scheduled in 2014 and entry into service in 2016. COMAC forecasts 2,000 C-919
aircraft to be produced over the next 20 years, approaching 7 percent market share of the consensus market forecast
for global production. In addition, COMAC is developing the ARJ-21 regional aircraft, which has already undergone
first flight, and is expected to be delivered to airline customers in 2012. Together, these two aircraft launch programs
represent the emergence of an industry that has struggled over time, but now appears to be emerging as a credible
producer of commercial air transportation products. It is expected that the Chinese commercial aircraft industry will
continue to gain attention in 2012, with continued western supplier involvement and partnership creation, as well as
continued technology development.
Chinese A&D Market 173
In the space sector, the Chinese industry continues to advance its space program with the development of a space
station. A plan announced by the Chinese government at the end of 2011 includes the launch of a space lab and
collecting samples from the moon by 2016. It also includes plans for a manned spaceship and space freighters. The
new space plan would include the design, manufacture, and deployment of the Beidou Satellite Navigation system,
China’s version of a global positioning systems (GPS), navigation and timing system, similar to the U.S.-based global
positioning system. Recent achievements made by China’s aerospace industry in 2011, including a successful docking
between the Shenzhou-8 unmanned spacecraft and the Tiangong-1 space lab module. China is also increasing its
defense capitalization, expanding its submarine fleet and developing its first aircraft carrier, purchased from Russia. It
also has a fifth generation stealth fighter, the J-20, under development, which has captured the attention of global
competitors.
174
Section II: Listed Players

175
The Players
5.
Grouping Criteria And Companies’ Analysis 176
 Companies analyzed in this document have been grouped according to the revenues reported in the
last available Annual Report (note that some companies do not close their fiscal year on Dec. 31st).
 This document focuses specifically on public companies generating revenues in excess of € 100
million.
 To make this document easy to read, selected companies were divided in the following groups:
 the first group includes those with revenues greater than € 10 billion;
 the second, those with revenues between € 10 billion and €1 billion;
 the third, those with revenues between €1 billion and € 100 million ;
 The overview of the companies highlights includes:
 company activity and business lines;
 recently undertaken and/or future strategic activities;
 information on management, shareholders, financial highlights (financial statement figures
from the last 2 available Annual Reports, balance sheet figures from the last available Annual
Report) and stock price performance;
 business line breakdowns for revenues, EBIT, EBIT Margin and, where available, geographical
breakdown of these financial drivers;
 yearly variance of financial results.
Grouping Criteria And Companies’ Analysis 177
IN THE ANALYSIS, COMPANY DATA ARE REPORTED IN EURO, DESPITE THAT MANY ARE NOT
LISTED ON A EUROPEAN STOCK MARKET AND AS A RESULT CHARACTERIZED BY FIGURES
WITH DIFFERENT CURRENCIES. THEREFORE, THE FOLLOWING EXCHANGE RATES HAVE
BEEN USED, EACH THE CLOSING RATE AT YEAR END 2011:
•€/US $ = 1.296
•€/£ = 0.833
•€/ CAD $ = 1.324
•€/SEK = 8.918
•€/BRL = 2.416
•€/CNY = 8.134
•€/NOK = 7.742
SOURCE: Bloomberg@ Dec 30, 2011
By convention the NFD has been calculated as following: NFD = +Debt – Cash.
Players with revenues higher than € 10 billion 178
 Listed below are the Aerospace & Defence global market’s players that reported more than € 10 billion in
revenues in their latest available annual financial statements:
BOEING CO/THE 53.032
EADS NV 49.128
UNITED TECHNOLOGIES CORP 44.896
LOCKHEED MARTIN CORP 35.876
HONEYWELL INTERNATIONAL INC 28.184
GENERAL DYNAMICS CORP 25.212
BAE SYSTEMS PLC 21.323
NORTHROP GRUMMAN CORP 20.378
RAYTHEON COMPANY 19.178
FINMECCANICA SPA 17.318
BOMBARDIER INC-B 13.381
ROLLS-ROYCE HOLDINGS PLC 13.348
THALES SA 13.028
L-3 COMMUNICATIONS HOLDINGS 11.704
SAFRAN SA 11.658
Players with revenues higher than € 10 billion 179
 The following table includes share price (and variation over 3, 6 and 12 months), Market Cap, Net Financial Debt
and Enterprise Value for players belonging to the first group.
% change % change % change

Market Cap Market Cap N.F.D. EV
Players Share Price No of Shares over the last over the last over the last
Local Currency (€ Mln) (€ Mln) (€ Mln)
3 months 6 months 12 months
BOEING CO/THE USD 71,4 751,80 53.678 42.533 847,9 43.381 6 -5 12
EADS NV EUR 30,8 826,93 25.478 25.478 -4.452,0 21.026 20,3 11,4 45
UNITED TECHNOLOGIES CORP USD 79,9 911,79 72.806 57.689 3.317,6 61.006 11,8 -5,5 12
LOCKHEED MARTIN CORP USD 91,1 324,42 29.567 23.428 2.218,2 25.646 12 3 28
HONEYWELL INTERNATIONAL INC USD 58,5 779,18 45.543 36.087 2.602,4 38.689 10 -2 29
GENERAL DYNAMICS CORP USD 65,5 352,78 23.111 18.312 988,3 19.300 5,7 -9,8 7,5
BAE SYSTEMS PLC GBp 324,4 3.249,29 10.541 13.276 1.270,7 14.547 19,7 5 22
NORTHROP GRUMMAN CORP USD 66,9 247,21 16.536 13.102 729,9 13.832 17,1 11,9 29
RAYTHEON COMPANY USD 56,5 332,02 18.766 14.869 466,8 15.336 14,6 10 37
FINMECCANICA SPA EUR 3,6 578,15 2.065 2.065 4.514,0 6.579 28,7 -7,3 -28,8
BOMBARDIER INC-B CAD 3,5 1.440,35 5.041 4.055 339,5 4.395 -4,9 -19,3 -21,8
ROLLS-ROYCE HOLDINGS PLC GBp 835,5 1.872,26 15.643 19.702 -141,6 19.560 5,0 2,9 35
THALES SA EUR 26,7 202,33 5.395 5.395 -421,6 4.973 14,6 -2,3 5
L-3 COMMUNICATIONS HOLDINGS USD 70,2 96,55 6.782 5.374 2.593,2 7.967 9,0 6,4 13
SAFRAN SA EUR 28,1 417,03 11.733 11.733 1.014,0 12.747 5,4 9,5 4
180
Boeing Co
Boeing Co - USA 181
Description
 Boeing Co is a leading aerospace company and one of the largest manufacturers of commercial
jetliners and military aircraft, satellites, missile defence systems, human space flight and launch
systems, providing products and tailored services to airlines and US and allied armed forces around
the world. The activity of the Group can be divided into the following segments:
 COMMERCIAL AIRPLANES (CA): development, production and marketing of commercial
jet aircraft and supplying of supporting services to world leading airlines.
 BOEING DEFENSE, SPACE & SECURITY (BDS): including Boeing Military Aircraft
(BMA), Network and Space Systems (N&SS), and Global Services and Support (GS&S).
Boeing is involved in the research, development, production and support of the following
products: military aircraft, transports, tankers, and helicopters; missiles; space systems; missile
defence systems; satellites and satellite launch vehicles; and communications, information and
battle management systems.
 BOEING CAPITAL CORPORATION (BCC): arranges, structures and provides innovative
financing solutions for commercial and Government customers of the CA segment. In the
space and defense markets, BCC arranges and structures financing solutions for the IDS
segment government customers. BCC’s portfolio includes finance leases, notes and other
receivables, equipment under operating leases, investments and assets held for sale or re-lease.
 OTHER: includes EO&T, Corporate Headquarters and Boeing Shared Services Group.
Boeing Co - USA 182
Strategic Developments
 June 26, 2012: Boeing Company and Embraer announced an agreement to collaborate on the KC-390 aircraft
program.
 May 9, 2012: Boeing announced that it has completed the acquisition of Inmedius, a provider of software
applications and services for managing and sharing information and learning content.
 March 15, 2012: Boeing subsidiary Boeing Defence Australia (BDA) has been awarded a three-year contract to
perform aircraft surface finishing services for the Royal Australian Air Force (RAAF) aircraft fleet.
 February 29, 2012: Boeing has received an $11.4 million indefinite delivery, indefinite quantity (IDIQ) contract
from the U.S. Air Force
 January 10, 2012: Boeing and Air France-KLM Group have finalized an order for 25 Boeing 787-9
Dreamliners.
 December 30, 2011: Boeing and Northrop Grumman GMD Team Receives Contract from US Missile Defense
Agency.
 November 17, 2011: Boeing and Lion Air finalized an order for 201 Boeing 737MAX and 29 737-900ER
airliners. The worth of the order is $21.7 billion at list prices.
 May 19, 2011: Boeing and Lufthansa Cargo finalized an order for five Boeing 777 Freighters. The order is
valued at $1.35 billion, based on Boeing list prices.
 April 6, 2011: Boeing and Qatar Airways announced orders for three 777 Freighters and two 777-300ERs. The
orders are valued at $1.4 billion at list prices.
 March 30, 2011: Boeing and GE Capital Aviation Services (GECAS) finalized an order for 10 777-300ER
(extended range) airplanes. The order is worth approximately $2.8 billion at list prices.
Boeing Co - USA 183
Financial Highlights
Company Name Boeing Co/The Management

W. James McNerney, Jr. Chairman and CEO
Country UNITED STATES
Gregory D. Smith Exec VP and CFO
Currency USD
James A Bell CFO
Market Price 71,3
J Michael Luttig Exec VP
Number of Outstanding Shares (Mln) 752
James F Albaugh Exec VP
Market Cap (€ Mln) 41.346
Dennis A Muilenburg Exec VP
N.F.D. (€ Mln)@12/31/2011 848
Enterprise Value (€ Mln) 42.194
Income Statement (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Source: Bloomberg @ 14/09/2012
Sales 49.615 53.032 6,9%
Shareholders
Ebitda 5.163 5.771 12%
EVERCORE TRUST COMPA 9,36%
Ebit 3.831 4.490 17%
CAPITAL WORLD INVEST 6,98%
Net Income 2.552 3.100 21%
STATE STREET CORP 4,33%
Ebitda % Sales 10% 10,9%
VANGUARD GROUP INC 4,27%
Ebit % Sales 7,7% 8,5%
T ROWE PRICE ASSOCIA 4,02%
Net Income % Sales 5,1% 5,8%
BLACKROCK INSTITUTIO 2,62%
JENNISON ASSOCIATES 1,62%
Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
FIDELITY MANAGEMENT 1,55%
Total Assets 52.901 61.713 16,7%
NORTHERN TRUST CORPO 1,33%
of which Net Fixed Assets 6.891 7.185 4,3%
TIAA CREF INVESTMENT 1,13%
N.F.D. 1.469 848 -42,3%
Market 62,79%
Tot Equity 2.208 2.784 26,1%
Boeing Co - USA 184
Revenues Breakdown
Revenues EBIT* EBIT MARGIN

Segment (€ Mln) Dec-10 Dec-11 Dec-10 Dec-11 Dec-10 Dec-11 Revenues
Commercial airplanes 24.561 27.908 2.319 2.697 9% 10% Geographic Area (€ Mln) Dec-10 Dec-11
Boeing Military Aircraft** 10.985 11.532 964 1.177 9% 10% Asia excl. China 5.623 5.739
China 2.399 3.687
Network and Space Systems** 7.295 6.692 549 532 8% 8%
Europe 6.074 7.600
Global Services and Support** 6.365 6.447 705 727 11% 11%
Oceania 1.317 2.366
Boeing Capital Corporation 493 410 117 96 24% 23%
Africa 738 1.357
Other 106 106 -252 42 -237% 39%
Canada 472 477
Total segments 49.806 53.095 4.402 5.271 9% 10%
Latin America 718 1.046
Intersegment and Other -191 -63 0 0
Middle East 2.843 4.226
Overhead Costs and Other 0 0 -572 -781
Total geographic areas 49.615 53.032
Group's Result 49.615 53.032 3.831 4.490 8% 8%
*EBIT of each segment does not include overhead costs and other unallocated costs
**Part of the Integrated Defense Systems segment
Revenues fiscal year 2011 - Geographic areas Revenues fiscal year 2011 - Segments
Asia excl.
China
Boeing Network and
11% China Space
7% Military
Aircraft** Systems**
22% 13%
Global
USA Europe Services and
50% 14% Support**
Oceania Africa 12%
4% 3%
Boeing
Canada
Capital
1% Commercial
Middle East Latin America Corporation
8% 2% airplanes Other 1%
52% 0,2%
Boeing Co - USA 185
Analysis of Results
 In 2011, Boeing group revenues were € 53.0 billion recording a 7% increase from 49 billion, due to higher
new airplane delivery mix and higher commercial aviation services revenues.
 Commercial Airplanes revenues increased by 13.6% in 2011 to € 27.9 billion due to higher new airplane
deliveries, including the impact of entry into service of the 787-8 and 747-8 Freighter.
 Boeing’s Defense, Space and Security segment revenues increased by € 24.6 billion primarily due to higher
revenues in the Boeing Military Aircraft (BMA) and Global Services & Support (GS&S) segments, partially
offset by lower revenues in the Network & Space Systems (N&SS) segment.
 Boeing Capital Corporation revenues decreased by 16.7% due to lower operating lease income from a smaller
portfolio of equipment under operating leases as a result of aircraft returns and lower lease rates on re-leased
aircraft and lower interest income on notes receivable resulting from a lower weighted average notes
receivable balance and a decrease in the weighted average annual effective interest rate during 2011.
Boeing Co - USA 186
Analysis of Results
 In 2011, Group EBIT was € 4.5 billion, up 17% versus the 2010 total of € 3.8 billion.
 EBIT for the Commercial Airplane Segment increased by € 2.7 billion in 2011 compared to 2010, primarily due to
higher revenues and a reduction in research and development costs, partially offset by increases in period costs
associated with business growth.
 Boeing Defense, Space and Security segment EBIT increased by 9.87 percent to € 2.4 billion due to higher earnings
in the BMA and GS&S segments, partially offset by lower earnings in the N&SS segment.
 Group’ Net Income for fiscal year 2011 was € 3.1 billion, up 549 million in 2010.
187
EADS NV
EADS NV – Netherlands 188
Description
 European Aeronautic Defence and Space (EADS) was established in 2000 following the merger of Aerospatiale
Matra (French company), Costrucciones Aeronauticas Sa (Spanish company) and DaimlerChrysler Aerospace Ag
(German company).
 In the global market EADS operates through the following operating units:
 AIRBUS: one of the world's leading aircraft manufacturers that consistently captures approximately half or
more of all orders for airliners with more than 100 seats. The Airbus product line comprises of 14 aircraft
models, from the 100-seat single-aisle A318 jetliner to the 525-seat A380 - which is the largest civil airliner in
service.
 AIRBUS MILITARY: (formerly Military Transport Aircraft) develops aircraft for military and security tasks,
including in-flight refueling and maritime surveillance. Airbus Military is also responsible for the European
heavy military transport A400M program.
 EUROCOPTER: the world’s leading helicopter manufacturer. It captures more than 50% of sales for civil and
parapublic helicopters and has a strong growing military business.
 CASSIDIAN: provider of comprehensive and integral systems solutions for aerial, land, naval and civilian
security applications. Through Cassidian, EADS is a major partner in the Eurofighter consortium as well as a
key stakeholder in the missile systems provider MBDA.
 ASTRIUM: is Europe’s preeminent space group and the third largest worldwide. It is the leading European
supplier of satellites, launchers and space services. It plays a key role in Europe’s institutional and military
space programs.
 OTHER: includes activities in turboprop aircraft, general aviation and freighter conversion, aerostructure and
aircraft seats business as well as its activities managed in the US. The Business Units ATR, EADS EFW,
EADS Sogerma, Socata and EADS North America fall within Other Businesses.
 September 12, 2012: BAE Systems plc and EADS N.V., that are currently partners with the Eurofighter and
MBDA joint ventures, confirm the possible combination of their businesses. This potential combination would be
implemented through the creation of a dual listed company structure, under which both companies would operate
as one group by means of equalisation and other agreements but would be separately listed on their existing
exchanges. BAE Systems shareholders would own 40% and EADS shareholders 60% respectively of the enlarged
group.
 September 11, 2012: KfW Bankengruppe ,a bank controlled by the German government, will acquire part of
Daimler that owns about 15% of EADS but controls nearly 22.5% of the company.
 July 12, 2012: Airbus wins US$16.9 billion worth of commitments at Farnborough International Air Show 2012.
 April 26, 2012: Astrium wins €300 million Solar Orbiter contract from ESA
 March 27, 2012: Astrium, Europe’s number one space company, has been awarded two contracts from the Russian
Satellite Communications Company (RSCC) for the delivery of two telecommunication satellites Express AM4R
and Express AM7
 March 21, 2012: Airbus has joined a consortium including Virgin Australia to study a new pathway to produce
sustainable aviation fuels.
 January 10, 2012: EADS North America awarded $212 million production contract for 39 UH-72A Lakota
helicopters
 December 14, 2011: CASSIDIAN and Alenia Aeronautica agree on UAS cooperation
 August 1, 2011: EADS acquires Vizada for its Astrium Division, a French Private Equity fund and the majority
shareholder, for $ 960 million.
 June 30, 2011: Eurocopter Holding Acquires 98.32% Of Vector Aerospace Corporation Shares Following
C$13.00/Share Cash Offer.
 April 7, 2011: EADS North America announced that it has expanded the company’s Space and related product
activities in the U.S., supporting government agencies, private sector customers and academia.
Company Name EADS

Country NETHERLANDS
Currency EUR Management
Market Price 25,7 Arnaud Lagardere Chairman
Number of Outstanding Shares (Mln) 827 Thomas Enders CEO
Market Cap (€ Mln) 21.255 Harald Wilhelm CFO

Jean J Botti CTO
N.F.D. (€ Mln)@12/31/2010
12/31/2011 -4.452
Source: Bloomberg @ 14/09/2012 Income Statement (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Shareholders Sales 45.752 49.128 7,4%
SOGEADE 22,17% Ebitda 2.500 3.173 27%
Ebit 1.060 1.449 37%
DAIMLERCHRYSLER AERO 22,17%
Net Income 553 1.033 87%
SOCIEDAD ESTATAL DE 5,41%
Ebitda % Sales 5,5% 6,5%
CAPITAL WORLD INVEST 2,97% Ebit % Sales 2,3% 2,9%
CAPITAL RESEARCH GLO 1,44% Net Income % Sales 1,2% 2,1%
CARMIGNAC GESTION 0,95%
OPPENHEIMERFUNDS INC 0,93% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Total Assets 83.187 88.476 6,4%
PRIMECAP MANAGEMENT 0,74%
N.F.D. -6.586 -4.452 32,4%
NATIXIS ASSET MANAGE 0,72% Tot Equity 8.936 8.870 -0,7%
Market 41,71%
Revenues Breakdown
Revenues EBIT* EBIT MARGIN Revenues
Business Unit (€ Mln) Dec-10 Dec-11 Dec-10 Dec-11 Dec-10 Dec-11 Geographic Area (€ Mln) Dec-10 Dec-11
Airbus 27.067 30.389 291 543 1,1% 1,8% Europe 21.402 20.654
Airbus Military 2.488 2.130 21 49 1% 2,3% North America 3.507 5.852
Eurocopter 4.391 4.957 183 259 4,2% 5,2% Asia - Pacific 11.335 14.303
Cassidian 5.747 5.582 450 312 7,8% 5,6% Middle East 6.247 5.111
Astrium 4.985 4.949 283 267 5,7% 5,4% Latin America 2.537 2.874
Other 1.045 1.090 25 59 2,4% 5% Rest of world 724 334
Total Business Units 45.723 49.097 1.253 1.489 2,7% 3,0% Total geographic areas 45.752 49.128
Intersegment and Other 29 31 0 0
Group's Result 45.752 49.128 1.060 1.449 2,3% 2,9%
*EBIT of each business unit does not include overhead costs and other unallocated costs
Revenues fiscal year 2011 - Segments

Other Revenues fiscal year 2011 - Geographic areas
Astrium
2% Latin America
10% Rest of world
6%
Middle East 1%
Cassidian 10%
12% Europe
42%
Eurocopter
10%
Airbus Asia - Pacific

Airbus Military 62% 29%
4%
North America
12%
Analysis of Results
 During 2011 EADS’ revenues increased 7.4% to a new high of € 49.1 billion, driven by record aircraft deliveries at
Airbus and increased commercial activity at Eurocopter.
 Airbus Division comprises Airbus Commercial and Airbus Military. Record deliveries lifted consolidated revenues 10%
to € 30.3 billion, from € 27 billion for 2010. The increase was due to higher revenues at Airbus Commercial, partially
offset by a decrease in revenues at Airbus Military.
 Airbus Military revenues decreased by 6.7%, from € 2.5 billion for 2010 to € 2.1 billion for 2011. The decrease was
primarily due to € 0.3 billion lower revenue recognition on the A400M programme in 2011, partially offset by an increase
in revenues from tanker activities.
 Eurocopter segment’s revenues increased by 12.1%, from € 4.4 billion for 2010 to € 5 billion for 2011, despite an overall
decrease in helicopter deliveries from 527 in 2010 to 503 in 2011. The revenue increase was primarily due to a favourable
mix effect in commercial deliveries and from support activities, as well as additional revenues of € 0.2 billion in 2011
related to the fi rst-time consolidation of Vector Aerospace.
 Cassidian revenues decreased by 2.2%, from € 5.7 billion for 2010 to € 5.6 billion for 2011
 Astrium segment’s revenues revenues were stable at € 4.9 billion supported by excellent programme execution
Analysis of Results
 In 2011, the group’s EBIT rose to € 1.5 billion from € 1.1 billion in 2010. This mainly due to good performance in
Airbus’ series programmes, as well as at Eurocopter.
 Airbus’s EBIT gained from operational improvement, rising 91% to € 543 million, due primarily to an increase at
Airbus Commercial. Airbus Commercial’s EBIT increased by 86.6%, from € 0.3 billion for 2010 to € 0.5 billion for
2011, mainly due to operational improvements, including higher aircraft deliveries.
 Airbus Military’s EBIT increased from € 21 million for 2010 to € 49 million for 2011, primarily due to a favourable
delivery mix, operational improvements and overhead cost reductions.
 The EBIT for Eurocopter grew 41.5%, from € 183 million for 2010 to € 259 million for 2011, primarily due to a
favourable mix effect in commercial deliveries and support activities as well as better operational performance. An
increase in research and development expenses was roughly offset by cost savings.
 Cassidian’s EBIT decreased by 27.6%, from € 450 million for 2010 to € 312 million for 2011, primarily due to a
significant increase in research and development expenses, a restructuring provision of € 38 million in relation to its
transformation programme and a net negative charge of € 34 million on programmes in 2011.
 Astrium’s EBIT fell slightly to € 267 million, weighed down by lower services activity, acquisition expenses and a
restructuring charge.
 In 2011, the group recorded a Net Profit of € 1 billion, up near two fold from € 553 million in 2010, thanks to
strong momentum in the commercial aviation market refl ected in new order and delivery records at Airbus.
194
United Technologies Corp

United Technologies Corp – USA 195
Description
 United Technologies Corp (UTC) provides high technology products and services to the aerospace industry
worldwide. The Group’s activity can be divided in the following segments:
• COMMERCIAL BUSINESS: its products and services are sold to international customers operating in
the commercial and residential real estate industry. The Group operates in this segment through Otis (a
leader in elevator and escalator manufacturing, installation and service company), Carrier (a manufacturer
and distributor of heating, ventilation and air conditioning and refrigeration systems) and UTC Fire &
Security (a global provider of security and fire safety products and services) and UTC Power (a producer
fuel cells and a developer of renewable energy solutions and combined cooling, heating and power
systems for the distributed energy market).
• AEROSPACE BUSINESS: serving customers operating in commercial, industrial and government
aerospace sectors. The Group operates through:
• Pratt & Whitney: specialised in the design, manufacture and service of aircraft engines, industrial
gas turbines and space propulsion systems.
• Hamilton Sundstrand: a producer of technologically advanced aerospace and industrial products.

The company designs and manufactures integrated aerospace systems for nearly all forms of
aircraft, and is a major supplier for international space programs. Its industrial products serve
industries ranging from hydrocarbon, chemical and food processing to construction and mining.
• Sikorsky: an operator in helicopter design, manufacture and service. The company's helicopters and
support solutions serve both the commercial and military markets.
 July 26, 2012: United Technologies Corp. announced it has completed its acquisition of Goodrich Corporation,
marking a major milestone for the company and strengthening its position in the commercial aerospace industry.
Goodrich will be combined with Hamilton Sundstrand to create the new UTC Aerospace Systems business unit.
 July 23, 2012: United Technologies Corp. announced it has reached agreement to sell its Rocketdyne unit,
currently part of Pratt & Whitney, to GenCorp Inc. for $550 million. The transaction is expected to close in the
first half of 2013.
 April 4, 2012: Hamilton Sundstrand Corporation, a subsidiary of United Technologies Corp., and a key supplier
of the Boeing 787 Dreamliner program, and Air France Industries KLM Engineering and Maintenance have
signed a long-term repair license agreement for providing MRO (Maintenance, Repair and Overhaul) services for
Hamilton Sundstrand’s components on the Boeing 787.
 December 14, 2011: Embraer Defense and Security selects Hamilton Sundstrand for KC-390.
 September 21, 2011: United Technologies Corp. announced it has reached agreement to purchase Goodrich
Corporation for $127.50 per share in cash.
 June 21, 2011: Boeing has selected Hamilton Sundstrand Corporation as a supplier to the Boeing KC-46 aerial
refueling tanker.
 May 16, 2011: Bombardier Aerospace has selected Hamilton Sundstrand Corporation to provide key systems
content (aircraft’s electric system, including generation and distribution) on the new Global 7000* and Global
8000* business jets.
 May 16, 2011: The U.S. Department of Defense awarded Pratt & Whitney a $1.13 billion contract for F135
production engines to power the F-35 Lightning II.
 March 07, 2011: Sikorsky Aircraft Corp. and Milestone Aviation Group Limited jointly announced the scheduled
deliveries of five Sikorsky S-76C++™ helicopters to Milestone in the second half of 2011 under a firm order
contract signed last December
Company Name United Technologies Corp

Management
Louis R. Chênevert Chairman & CEO
Currency USD
Gregory J Hayes Senior VP/CFO
Market Price 82
J Thomas Bowler Jr Senior VP
Elizabeth Amato Senior VP
N.F.D. (€ Mln)@12/31/2011 3.318
Sales 41.915 44.896 7,1%
Shareholders
Ebitda 6.591 7.288 10,6%
STATE STREET CORP 12,19% Ebit 5.544 6.249 12,7%
VANGUARD GROUP INC 4,81% Net Income 3.374 3.842 13,9%
FIDELITY MANAGEMENT 2,81% Ebitda % Sales 16% 16%
MASSACHUSETTS FINANC 2,80% Ebit % Sales 13% 14%
BLACKROCK INSTITUTIO 2,69% Net Income % Sales 8,0% 8,6%
CAPITAL RESEARCH GLO 2,46%
JP MORGAN CHASE & CO 2,28% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Total Assets 45.130 47.413 5,1%
of which Net Fixed Assets 4.845 4.784 -1,3%
N.F.D. 4.788 3.318 -30,7%
BANK OF NEW YORK MEL 1,75%
Tot Equity 17.475 17.883 2,3%
Market 64,27%
Revenues Breakdown

Business unit (€ Mln) Dec-10 Dec-11 Dec-10 Dec-11 Dec-10 Dec-11 Geographic Area (€ Mln) Dec-10 Dec-11
Otis 8.934 9.596 1.987 2.172 22% 23% USA 22.306 23.484
Carrier 8.785 9.235 819 1.173 9,3% 12,7% Asia - Pacific 6.162 7.248
UTC Fire & Security 5.007 5.320 551 534 11,0% 10,0% Europe 9.225 9.722
Pratt & Whitney 9.980 10.362 1.533 1.542 15% 15% Rest of world 4.146 4.151
Hamilton Sundstrand 4.327 4.745 708 835 16% 18% Total geographic areas 41.915 44.896
Sikorsky 5.157 5.675 552 648 10,7% 11,4%
Total Business Units 42.190 44.932 6.151 6.904 15% 15%
Group's Result 41.915 44.896 5.544 6.249 13% 14%
*EBIT of each business unit does not include overhead costs and other unallocated costs
Revenues fiscal year 2011 - Segments Revenues fiscal year 2011 - Geographic areas
Sikorsky Rest of world

13% 9%
Otis
21%
Hamilton
Sundstrand
Europe
11% USA
22%
53%
Pratt &
Whitney Carrier
23% 20%
UTC Fire
Asia - Pacific
& Security
12%
16%
Analysis of Results
 In 2011, UTC revenues grew 7.1% to € 44.9 billion from € 41.9 billion in 2010.
 Otis’ revenues grew 7.4% in the year compared with 2010. The organic revenue increase in the year was due to
higher new equipment sales volume in China, Russia and Brazil partially offset by declines in North America
 Carrier’s revenues rose € 9.2 billion in 2011, with the recovery in the transport refrigeration market providing the
most significant contribution.
 UTC Fire & Security’s revenues grew 6.2% in 2011 to € 5.3 billion, as compared with 2010. The organic revenue was
driven by increased volumes in the products businesses, while the service and install businesses remained flat.
Geographically, the organic growth was driven by stronger volume in the product businesses, partially offset by
declines in the U.K. and U.S. service businesses.
 Pratt & Whitney’s revenues reached 10.4 billion in 2011. This growth was driven by growth in the large commercial
engine business (5%), higher spares volume across the business (combined 2%), and higher industrial volume at
Pratt & Whitney Power Systems (1%). These increases were partially offset by lower military engine sales.
 Hamilton Sundstrand’s revenues were increased € 4.7 billion in 2011. The organic revenue growth (9%) reflects
higher volumes in both the aerospace (6%) and the industrial (3%) businesses. The increase within aerospace was
driven by higher aftermarket volume (5%), primarily commercial spares. The industrials businesses increase was led
by the compressor business as a result of volume increases in the manufacturing and energy sectors, particularly in
the U.S. and Asia.
 Sikorsky’s revenues increased 10% in 2011 to € 5.7 billion, as compared with 2010. The increase in organic sales was
primarily attributable to higher military aircraft sales including higher international development aircraft sales and
favorable military aircraft configuration mix (8% combined), which more than offset a decrease from commercial
operations (2%) due to fewer aircraft deliveries. Net sales from aftermarket support increased (4%) primarily driven
by higher spares volume.
Analysis of Results
 In 2011, Group’s operating profits grew by 10.6 % to € 6.2 billion, compared to 2010.
 Otis’ EBIT grew 9.3% in 2011 compared with 2010. The operational profit improvement in the period was due to
higher new equipment volume, increases in contractual maintenance and repair services.
 Carrier’s EBIT was up 43.1% in 2011 compared with 2010, the improvement was driven by strong conversion on
organic sales growth, particularly in the higher margin transport refrigeration business, lower bad debt expense, and
earnings improvement in Carrier’s joint venture in Japan
 UTC Fire & Security’s operating profits fell to € 534 million in 2011 from € 551 million in 2010. The decline (3.1%)
reflects lower margins on projects and unfavorable sales mix, led by the U.K. on lower sales and productivity.
 Pratt & Whitney’s EBIT showed slight growth of 0.6% in 2011 compared to 2010, mainly due to higher year-over-year
research and development costs, unfavorable commercial engine business mix and fewer military engine business
deliveries, partially offset by higher commercial spares volume. Additionally, gains recorded on contract settlements
and contract close-outs were offset, in part, by losses incurred as a result of increased airline industry exposures during
the year.
 Hamilton Sundstrand’s EBIT increased to € 835 million (+17.9%) in 2011, as compared with 2010. The increase in
operational profit reflects an increase in both the aerospace (7%) and the industrial (5%) businesses. The growth
within aerospace reflects higher commercial spares volume, including a reduction in military ground vehicle volumes
and an increase in volume of lower margin commercial programs. The increase within the industrial businesses reflect
the benefit of higher volume and cost reduction initiatives.
 Sikorsky’s EBIT increased 17.3% in 2010 versus the prior year. The operational profit improvement was primarily
attributable to an increase in aftermarket support (10%) driven by higher spares volume.
 In 2011, Group’s Net Profit grew 13.9% to € 3.8 billion compared to previous FY.
201
Lockheed Martin Corp

Lockheed Martin Corp – USA 202
Description
 Lockheed Martin Corporation was established in 1995 as a result of the Lockheed Corporation and Martin Marietta
Corporation merger. The Group operates in research, design, development, production and integration of advanced
technology systems and products and provides a broad range of management, engineering, technical, scientific,
logistic and information services. Lookheed Martin services customers in domestic and international defense and
civil markets.
 The Group operates through the following business lines:
 AERONAUTICS: engaged in the design, research and development, systems integration, production,
sustainment, support and upgrade of advanced military aircraft, air vehicles and related technologies. This
segment includes 3 business lines:
• Combat Aircraft: where it designs, develops, produces and provides systems support for fighter aircraft.
Recently the Group was involved in the development of various aircrafts such as the F-35 Lightning, F-
22 Raptor and F-16 Fighting Falcon;
• Air Mobility: where it designs, develops and produces full system support and sustainment services for
tactical and strategic airlift aircraft. Main programs include production, support and sustainment of the
C-130J Super Hercules, support of the legacy C-130 fleet, support of the existing C-5A/B/C fleet and
development, installation and support of the emerging C-5M Super Galaxy fleet.
• Advanced Research and Development: it is involved in advanced development programs and advanced
design and rapid prototype applications, mainly focused in unmanned air systems.
 ELECTRONIC SYSTEMS: Lockheed Martin is engaged in the design, research, development, integration,
production and sustainment of high performance systems for undersea, shipboard, land and airborne
applications. Major product lines include: missiles and fire control systems; air and theater missile defense
systems; surface ship and submarine combat systems; anti-submarine and undersea warfare systems;
avionics and ground combat vehicle integration; systems integration and program management for fixed
and rotary-wing aircraft systems; radars; platform integration systems; homeland security systems;
surveillance and reconnaissance systems; advanced aviation management solutions; security and
information technology solutions; and simulation and training systems. The segment depends upon both
military and civilian agencies of the U.S. Government as customers. This business unit can be divided in 3
sub-divisions:
 Maritime Systems & Sensors;
 Missiles & Fire Control (M&FC);
 Platform, Training & Energy (PT&E).
 SPACE SYSTEMS: specialising in the design, research, development, engineering and production of
satellites, strategic and defensive missile systems and space transportation systems. This business unit can
be divided in the following sub-divisions:
 Satellites: it designs, develops, manufactures and integrates advanced technology satellite systems for
government and commercial applications;
 Strategic & Defensive Missile Systems (S&DMS): it is the sole supplier of strategic fleet ballistic
missiles to the U.S. Navy since the program’s inception in 1955. The Trident II D5 is the latest
generation of submarine launched ballistic missiles, following the highly successful Polaris, Poseidon
C3, and Trident I C4 programs;
 Space Transportation Systems: it provides human space flight systems. It was selected by NASA to
design and build the agency’s next-generation human space flight crew transportation system known
as Orion, with an initial contract value of approximately € 2.8 billion.
 INFORMATION SYSTEMS & GLOBAL SERVICES (IS&GS): engaged in providing federal

services, Information Technology (IT) solutions and advanced technology expertise across a
broad spectrum of applications and customers. IS&GS provides full – cycle support and
specialised talent in the areas of software and systems and engineering, including capabilities in
space, air and ground systems and also provides logistics, mission operations support
peacekeeping and nation – building services for a wide variety of defense and civil government
agencies in the U.S. and abroad. This unit can be divided into the following segments:
 Information Systems;
 Mission Solutions;
 Global Services.
 August 15, 2012 Lockheed Martin Receives $150 Million Contract To Produce THAAD Weapon System
Equipment For The U.S. Army.
 June 28, 2011: The U.S. Air Force awarded Lockheed Martin a $241.6 million contract for Lot 10
production of the Joint Air-to-Surface Standoff Missile (JASSM) and Extended Range (ER) variant. The
JASSM Lot 10 contract is for 191 baseline missiles, 30 ER missiles, Test Instrumentation Kits and
systems engineering support.
 April 30, 2012: Lockheed Martin Wins $254 Million Support Contract for Defense Civilian Personnel
Data System.
 January 30, 2012: Lockheed Martin Receives $921 Million Contract for Production of Combat-Proven
PAC-3 Missiles.
 December 19, 2011: Japan Selects Lockheed Martin F-35 Lightning II
 November 14, 2011: Lockheed Martin Recieves $383M Contract From U.S. Army to Maintain Aerostat
Detection Systems.
 June 15, 2011: Lockheed Martin received a $445 million follow-on contract for Guided Multiple Launch
Rocket System (MLRS) Unitary rockets from the U.S. Army Aviation & Missile Command.
 June 14, 2011: As a result of continued difficult economic conditions, Lockheed Martin Space Systems
Company, a major business area of the Lockheed Martin Corporation, announced employment
reductions designed to address affordability and improve its competitive posture. Space Systems will
implement a broad-based workforce reduction of roughly 1,200 employees by year-end.
Lockheed Martin
Company Name
Corp
Currency USD
Market Price 93 Management
Robert J. Stevens Chairman & CEO
Number of Outstanding Shares (Mln) 324,4
Christopher Eugene Kubasik President
Bruce L. Tanner Executive Vice President & CFO
N.F.D. (€ Mln)@12/31/2011 2.218
Enterprise Value (€ Mln) 25.376 Income Statement (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Source: Bloomberg @ 14/09/2012 Sales 35.237 35.876 1,8%
Shareholders Ebitda 4.105 3.953 -3,7%
STATE STREET CORP 19,54% Ebit 3.294 3.176 -3,6%
CAPITAL WORLD INVEST 12,26% Net Income 2.221 2.048 -7,7%
MASSACHUSETTS FINANC 5,25% Ebitda % Sales 12% 11%
CAPITAL RESEARCH GLO 4,85% Ebit % Sales 9% 8,9%
VANGUARD GROUP INC 3,72% Net Income % Sales 6,3% 5,7%
WELLINGTON MANAGEMEN 2,57%

Total Assets 27.091 29.248 8,0%
BLACKROCK FUND ADVIS 1,79%
BANK OF NEW YORK MEL 1,62% N.F.D. 1.730 2.218 28,2%
AMERIPRISE FINANCIAL 1,38% Tot Equity 2.698 772 -71,4%
Market 44,93%
Revenues Breakdown

Segment (€ Mln) Dec-10 Dec-11 Dec-10 Dec-11 Dec-10 Dec-11
Aeronautical 10.114 11.081 1.156 1.258 11% 11%
Electronic Systems 11.109 11.282 1.349 1.380 12% 12%
Space Systems 6.359 6.276 747 763 12% 12,2%
Information System & Global Services 7.655 7.238 628 674 8,2% 9,3%
Total segments 35.237 35.876 3.879 4.075 11% 11%
Group's Result 35.237 35.876 3.294 3.176 9% 9%
Revenues fiscal year 2011 - Segments Revenues fiscal year 2010 - Segments
Information
Information System System &
& Global Services Aeronautical
Aeronautical Global
20% 29%
31% Services
22%
Space Systems
18%
Space Systems
18%
Electronic Systems Electronic
31% Systems
31%
Analysis of Results
 In 2011, Lockheed Martin’s revenues increased by 1.8%, to € 35.9 billion from € 35.2 billion in 2010.
 Aeronautical segment’s sales increased by 9.6% in fiscal year 2011. The growth in net sales was due to increases in all
three lines of business: Combat Aircraft, Air Mobility and Other Aereonautics Programs.
 Net sales for Electronic Systems rose by 1.5%. The increase was due to higher volume on air defense programs and
logistics activities.
 Net sales for Space Systems declined 1.3% in 2011 compared to 2010. Sales fell in all three lines of business: Satellites
and Space Transportation, Strategic & Defensive Missile Systems and Satellites The decrease was attributable to a
decline related to the NASA External Tank program, which ended in connection with the completion of the last Space
Shuttle mission in July 2011, a decline in volume related to the Orion program, and lower volume related to
government satellites.
 Net sales for Information & Global Services decreased by 5.4% in 2011 compared to 2010. The decrease primarily was
attributable to lower volume due to the absence of the DRIS program that supported the 2010 U.S. census and a
decline in activities on the JTRS program.
Analysis of Results
 In 2011, Group’s EBIT decreased by 3.6% to € 3.2 billion, compared to 2010.
 Aeronautical segment’s EBIT increased by 8.8% in 2011 compared to The increase primarily was attributable to higher
operating profit on C-130 programs due to increased volume and the retirement of risks, increased volume and risk
retirements on F-16 programs.
 The EBIT for the Electronic Systems segment increased by 2.3% in 2011 mainly due to higher volume and retirement
of risks on air defense programs (including PAC-3 and THAAD) and primarily due to the recognition of reserves on
certain undersea warfare programs in 2010.
 EBIT for the Space Systems segment increased by 2.2% in 2011. The increase principally was attributable to retirement
of risks on government satellite programs.
 Information & Global Services’ EBIT increased by 7.4% in 2011 compared to 2010, due to volume and the retirement
of risks in the year and the absence of reserves recognized in 2010 on numerous programs (including among others, the
NASA Outsourcing Desktop Initiative (ODIN) and Transportation Worker Identification Credential and Automated
Flight Service Station programs).
 In 2011, Group’s Net Income dropped to € 2 billion showing a 7.7% decrease compared to previous FY.
210
Honeywell
Honeywell International Inc - USA 211
Description
 Honeywell International Inc. (Honeywell) is a diversified technology and manufacturing company, serving
customers worldwide with aerospace products and services, control, sensing and security technologies for
buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and
advanced materials, and process technology for refining and petrochemicals. The company operates through
four businesses that are reported as operating segments:
 AEROSPACE: The aerospace products and services are used globally on virtually every commercial and
business aircraft operating today as well as for defense and space applications. The company provides
integrated avionics, engines, systems, and service solutions.
 AUTOMATION AND CONTROL SOLUTIONS (ACS): ACS provides innovative solutions that
make homes, buildings, industrial sites, airport facilities and infrastructure more efficient, safe and
comfortable. The ACS products and services include controls for heating, cooling, indoor air quality,
ventilation, humidification and home automation; advanced software applications for home/building
control and optimization; sensors, switches, control systems and instruments for measuring pressure, air
flow, temperature and electrical current; security, fire and gas detection; access control; video
surveillance; remote patient monitoring systems; installation, maintenance and upgrades of systems that
keep buildings safe, comfortable and productive; and automation and control solutions for industrial
plants, including advanced software and automation systems that integrate, control and monitor complex
processes in many types of industrial settings.
Description
 PERFORMANCE MATERIALS AND TECHNOLOGIES : a global leader in developing and

manufacturing advanced materials and process technologies that are used to reduce emissions, stop
bullets, enable the production of green fuels, increase oil refinery capacity, speed drug research, and
protect medicines. Advanced materials are critical in the manufacture of products ranging from nylon
to computer chips to pharmaceutical packaging, and process technologies developed by Honeywell's
UOP.
 TRANSPORTATION SYSTEMS: provides automotive products that improve the performance,
efficiency, and appearance of cars, trucks, and other vehicles through state-of-the-art technologies,
world class brands and global solutions to customers needs. Transportation Systems’ products include
Garrett turbochargers and charge-air and thermal systems; car care products including anti-freeze
(Prestone), filters (Fram), spark plugs (Autolite), and cleaners, waxes and additives (Holts); and brake
hard parts and other friction materials (Bendix and Jurid). Transportation Systems sells its products to
OE automotive and truck manufacturers (e.g., BMW, Caterpillar, Daimler-Chrysler, Ford, and
Volkswagen), wholesalers and distributors and through the retail aftermarket.
 August 2, 2012: Honeywell unveiled its first enterprise digital assistant with an Android operating system
(OS), offering mobile workers a device with the same platform that many use in their personal lives.
 June 4, 2012: Honeywell announced that it has acquired INNCOM, a Connecticut-based, privately held
manufacturer of advanced software-based energy management solutions and in-room controls for lodging,
healthcare and educational institutions.
 March 13, 2012: Honeywell and Emirates have consolidated their partnership by signing a General Terms
Agreement that extends until 2019.
 November 15, 2011: Flydubai Signs $20 Million Maintenance Support Contract With Honeywell.
 June 22, 2011: Honeywell announced that it has been awarded a three-year contract from the U.S. Army to
provide advanced ballistic materials that will improve the performance and reduce the weight of combat
helmets. Under the contract, Honeywell will deliver helmets made with next-generation Spectra Shield®
and Gold Shield® ballistic materials to the Army for testing and evaluation.
 June 19, 2011: Honeywell And Safran To Create Joint Venture To Launch New Green Aircraft Taxiing
System.
 June 13, 2011: Honeywell announced that it has signed a definitive agreement to acquire EMS
Technologies, Inc. (NASDAQ: ELMG), a leading provider of connectivity solutions for mobile
networking, rugged mobile computers, and satellite communications, for $33 per share in cash, or an
aggregate purchase price of approximately $491 million, net of cash acquired. The purchase price translates
to approximately 13 times EMS's 2010 earnings before interest, taxes, depreciation and amortization
(EBITDA), or approximately 9 times 2010 EBITDA excluding certain corporate costs.
Honeywell
Company Name
International Inc
Currency USD
Management
Market Price 61
David M. Cote Chairman & CEO
Number of Outstanding Shares (Mln) 779,2
David J. Anderson Senior Vice President & CFO
N.F.D. (€ Mln)@12/31/2011 2.602 Income Statement (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Enterprise Value (€ Mln) 39.286 Sales 24.959 28.184 12,9%
Source: Bloomberg @ 14/09/2012 Ebitda 3.085 2.724 -11,7%
Shareholders Ebit 2.323 1.986 -14,5%
STATE STREET CORP 9,84% Net Income 1.560 1.595 2,2%
MASSACHUSETTS FINANC 4,29% Ebitda % Sales 12% 10%
VANGUARD GROUP INC 4,08% Ebit % Sales 9,3% 7%
WELLINGTON MANAGEMEN 3,12% Net Income % Sales 6,3% 5,7%
EVERCORE TRUST COMPA 2,53% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Total Assets 29.191 30.714 5,2%
BARROW HANLEY MEWHIN 2,28%
N.F.D. 2.730 2.602 -4,7%
JP MORGAN CHASE & CO 2,05%
Tot Equity 8.323 8.411 1,1%
PRIMECAP MANAGEMENT 1,79%
Market 64,99%
Revenues Breakdown

Segment (€ Mln) Dec-10 Dec-11 Dec-10 Dec-11 Dec-10 Dec-11 Geographic Area (€ Mln) Dec-10 Dec-11
Aerospace 8.242 8.853 1.416 1.561 17% 18% USA 14.550 16.206
Automation & Control Soutions 10.608 11.986 1.366 1.607 13% 13% Europe 6.456 7.410
Specialty Materials 3.646 4.366 578 804 16% 18% Rest of world 3.954 4.568
Transport. Systems 2.463 2.978 272 374 11% 13% Total geographic areas 24.959 28.184
Corporate 0 0 -171 -213 n/a n/a
Total segments 24.959 28.184 3.460 4.133 14% 15%
Overhead Costs and Other 0 0 -1.137 -2.147
Group's Result 24.959 28.184 2.323 1.986 9% 7%
Transport.
Systems
11% Aerospace
31% Rest of
Specialty world
Materials 16%
15%
USA
58%
Automation & Europe
Control 26%
Soutions
43%
Analysis of Results
 During 2011, the Group’s revenues increased by 12.9%, to € 28.2 billion from € 24.9 billion.
 Aerospace sales increased by 7.4% in 2011 primarily due to increased commercial sales volume.
 Automation and Control Solution sales increased by 13% in 2011 compared to 2010, primarily due to a 6 percent
growth from acquisitions, net of divestitures, 5 percent increase in organic revenue driven by increased sales
volume.
 Specialty Materials sales increased by 19.7% due to a 16 percent increase in organic growth, 3 percent growth from
acquisitions, and a 1 percent favorable impact of foreign exchange.
 Transportation Systems sales increased by 21 percent in 2011 compared with the 2010 primarily due to a 16 percent
increase in organic revenue driven by increased sales volume and a favorable impact of foreign exchange of 5
percent. The sales increase was primarily driven by increased turbocharger sales to both light vehicle and commercial
vehicle engine manufacturers primarily due to new platform launches and strong diesel penetration rates in Western
Europe
Analysis of Results
 The Group, during 2011, showed a 14.5% EBIT decrease, to € 2 billion compared to the previous fiscal year.
 Aerospace segment profit increased by 10 percent in 2011 compared with 2010 primarily due to an increase in
operational segment profit of 9 percent and an increase of 1 percent due to lower OEM Payments made during
2011.
 Automation and Control Solutions segment’s EBIT increased by 18 percent in 2011 compared with 2010 due to
a 9 percent increase in operational segment profit, 6 percent increase from acquisitions, net of divestitures and 3
percent positive impact of foreign exchange.
 Specialty Materials segment’s EBIT increased by 39%. The increase in operational segment profit is primarily
due to the favorable price to raw materials spread in Resins and Chemicals and Fluorine Products and higher
service, product and licensing revenues in UOP, partially offset by continued investment in growth and plant
optimization initiatives.
 Transportation Systems segment EBIT segment profit increased by 24% predominantly due to the positive
impact from increased sales volume.
 In 2011, Group’s Net Income was of € 1.6 billion, reporting a 2.2% increase compared to previous fiscal year.
218
General Dynamics Corp

General Dynamics Corp – USA 219
Description
 General Dynamics is a market leader in business aviation; land and expeditionary combat vehicles and
systems, armaments, and munitions; shipbuilding and marine systems; and mission-critical information
systems and technologies. Established in 1952, it grew internally and through acquisitions until 1990, when it
sold nearly all of its divisions to improve the Defence business. Currently Group’s activities can be split in the
following business units:
 AEROSPACE: the unit designs, develops, manufactures and services a comprehensive offering of
advanced business-jet aircrafts. The Group’s product line includes 6 aircrafts for corporations, private
individuals and government users.
 COMBAT SYSTEMS: produces, supports and sustains land and expeditionary combat systems for the
US military and its allies. Combat Systems’ product lines include: Wheeled armored combat vehicles;
Battle tanks and infantry fighting vehicles; Munitions and propellant; Engineering and development;
Armament and detection systems; Rockets and missile components; Aerospace components and other.
 MARINE SYSTEMS: designs, builds and supports submarines and a variety of surface ships for the US
Navy and commercial customers. The segment’s products line includes: Virginia-class attack
submarines; Trident ballistic-missile submarine conversions (SSGN); Surface combatants (DDG-51,
DDG-1000, LCS); Auxiliary and combat-logistics ships (T-AKE); Commercial tankers; Engineering
design support; Overhaul, repair and life-cycle support services.
 INFORMATION SYSTEMS AND TECHNOLOGY (IS&T): the Group offers a breadth and depth of
technology and service capabilities that support a wide range of government and commercial needs. In
particular it provides system integration expertise; hardware and software products, engineering,
management and support services. Its main services are: Tactical and strategic mission systems; IT and
mission services: including wireline and wireless voice, video and data networks, mission simulations
and training services; Intelligence mission systems: provides the US and allied intelligence communities
with highly specialized capabilities, multi-level security and data mining.
 August 22, 2012: General Dynamics has acquired the defense operations of Gayston Corporation, a privately
held company that supplies precision metal components used in several munitions programs.
 June 19, 2012: The U. S. Navy has awarded General Dynamics Bath Iron Works, a subsidiary of General
Dynamics, a $66.1 million contract to provide ongoing planning yard services for the DDG 51 Arleigh Burke-
class guided missile destroyer and the FFG 7 Oliver Hazard Perry-class frigate programs.
 June 8, 2012: General Dynamics Team Awarded $385 Million Contract for U.S. Army Range Radar
Replacement Program.
 April 24, 2012: General Dynamics C4 Systems received a contract from the Federal Aviation Administration
(FAA) to deliver radios that allow air traffic control personnel to communicate with commercial and military
aircraft throughout the National Airspace System (NAS).
 January 5, 2012: General Dynamics Awarded $96 Million to Support Trident II Submarine Strategic Weapons
Systems.
 December 22, 2011: U.S. Navy Awards General Dynamics $191 Million for Common Missile Compartment
Work. General Dynamics Awarded $126 Million Contract for Light Armored Vehicles.
 November 21, 2011: General Dynamics Awarded $73 Million to Support Naval Sea Systems Command
 July 6, 2011: General Dynamics Information Technology has been awarded a task order to provide enterprise
communication services under the Defense Intelligence Agency’s (DIA) Solutions for the Information
Technology Enterprise (SITE) contract. The task order has a value of $178 million for five years if all options
are exercised.
 June 27, 2011: General Dynamics Armament and Technical Products was awarded a $286 million contract by
the U.S. Army for the production of the Hydra-70 air-to-ground rocket.
General Dynamics
Company Name
Corp Management
Country UNITED STATES Jay L. Johnson Chairman & CEO
Currency USD L. Hugh Redd Senior VP & CFO
Market Price 67 Gerard J Demuro Exec VP: Info Systems & Tech
Number of Outstanding Shares (Mln) 353 Joseph T Lombardo Exec VP: Aerospace
Market Cap (€ Mln) 18.176 David K Heebner Exec VP: Combat Systems
N.F.D. (€ Mln)@12/31/2011 988 John P Casey Exec VP: Marine Systems
Source: Bloomberg @ 14/09/2012 Income Statement (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Shareholders Sales 25.049 25.212 0,6%
CAPITAL RESEARCH GLO 5,3% Ebitda 3.483 3.409 -2,1%
MARSICO CAPITAL MANA 4,9% Ebit 3.044 2.952 -3,0%

Net Income 2.025 1.949 -3,7%
Ebitda % Sales 14% 14%
Ebit % Sales 12% 12%
UBS GLOBAL ASSET MAN 2,6%
HARRIS ASSOCIATES L 2,3%
CROWN FUND 2,0%
Total Assets 25.110 26.914 7,2%
EATON VANCE MANAGEME 1,7%
N.F.D. 456 988 116,8%
Market 69,6%
Tot Equity 10.274 10.209 -0,6%
Revenues Breakdown

Aerospace 4.088 4.628 664 562 16% 12% USA 20.437 20.370
Combat Systems 6.850 6.810 984 990 14% 15% Canada 659 622
Marine Systems 5.152 5.116 520 533 10,1% 10,4% UK 619 661
IS&T 8.959 8.658 941 926 10% 11% Rest of Europe 1.564 1.620
Total segments 25.049 25.212 3.108 3.011 12% 12% Asia - Pacific 860 1.145
Overhead Costs and Other 0 0 -64 -59 Africa - Middle East 439 518
Group's Result 25.049 25.212 3.044 2.952 12% 12% South America 255 245
*EBIT of each segment does not include overhead costs and other unallocated costs Rest of world 217 30
Aerospace South America

19% 1%
IS&T Africa - Middle
34% East
2%
Asia - Pacific
5% USA
83%
Rest of Europe
Combat 6% UK
Systems
3%
27%
Canada
Marine Systems 2%
20%
Analysis of Results
 General Dynamics, during 2011 generated consolidated revenues of € 25.2 billion, a 0.6% increase compared to the
previous fiscal year.
 The Aerospace segment was the company’s growth engine in 2011. The group’s revenues were € 4.6 billion, up
13%from 2010. This revenue growth was driven by initial G650 deliveries and robust demand for aircraft services across
our global network propelled.
 Combat Systems group’s net sales decreased in 2011 by 0.6% compared to 2010. This represents a modest decline in
sales from last year, the result of lower U.S. vehicle volume. International light armored vehicle (LAV) upgrades and
axles for military and commercial manufacturers helped to mitigate the U.S. vehicle decline.
 Marine Systems’ revenues - 3.4% in 2011 due to lower volume on tactical communications programs. This lower volume
was primarily the result of sluggish award activity caused by U.S. defense budget delays and prolonged customer
acquisition cycles.
 The Information Systems and Technology group’s revenues decreased by 3.4% in 2011 compared with 2010. This
decrease was principally due to the fact that the revenues in the tactical communication systems business were impacted
unfavorably by recent continuing resolutions and a protracted customer acquisition cycle that slowed orders
Analysis of Results
 Group’s EBIT, during 2011 decreased by 3% to € 2.9 billion.

 Aerospace segment’s EBIT decreased 15.2%. The decrease was mainly due to drop of Aircraft manufacturing, outfitting
and completions and Selling, general and administrative/other.
 Combat Systems’ EBIT in 2011 were up slightly 0.6%. This was primarily due to higher profitability on several major
programs in our U.S. military vehicles business.
 The Marine Systems group’s operating earnings were up in 2011 compared with 2010 reporting 2.5% growth, due to the
T-AKE contract modification negotiated during the year and favorable cost performance resulted in revisions in
contract estimates.
 The Information Systems and Technology segment’s EBIT decreased by 1.6%.
 Group’s Net Income in fiscal year 2011 was € 1.9 billion, a decrease of 3.7% compared to 2010.
225
BAE Systems Plc

BAE Systems Plc – UK 226
Description
 BAE Systems is a global defence and aerospace company delivering a full range of products and services for air,
land and naval forces as well as advanced electronics, information technology solutions and customer support
services.
 In addition to the UK, the US and the Kingdom of Saudi Arabia markets, BAE Systems has a presence in other
markets such as Australia, South Africa and Sweden. In the US market the Group operates through the subsidiary
BAE System Inc, developing products for electronic systems and military e civilian applications.
 The activities carried out by the Group can be divided in the following business areas:
 Defence: the company designs, develops, manufactures and integrates defence systems and equipment (air,
land and sea).
 Security: a leading role protecting people, assets and infrastructure, as well as helping to maintain national
security and economic stability.
 Electronics & Systems Integration: the electronics businesses provide flight and engine controls, electronic
warfare and night vision systems, surveillance and reconnaissance sensors, secure networked
communications equipment, and energy management systems.
 Cyber & Intelligence: the company works with government and commercial clients to collect and manage
information to provide intelligence, maintain security, manage risk and strengthen resilience in today’s
complex operating environment.
 Military & Technical Services: from preparation and training programmes that ensure military personnel
and equipment are ready for deployment, to maintenance and modernisation services.
 IT & Information Systems: the company provides managed IT operations and business solutions,
comprehensive analysis and threat assessments to a wide range of customers.
 Consultancy Services: the company develops and implements business strategies, initiatives and best
practice solutions that increase the business performance of the clients.
 September 12, 2012: BAE Systems plc and EADS N.V., that are currently partners with the Eurofighter and
MBDA joint ventures, confirm the possible combination of their businesses. This potential combination
would be implemented through the creation of a dual listed company structure, under which both
companies would operate as one group by means of equalisation and other agreements but would be
separately listed on their existing exchanges. BAE Systems shareholders would own 40% and EADS
shareholders 60% respectively of the enlarged group.
 August 27, 2012: BAE Systems recently received a contract award for more than $20 million to supply two
57mm Mk 110 MOD 0 guns and engineering support to the U.S. Navy and Coast Guard.
 July 11, 2012: BAE Systems and IBM team provide an integrated command and control solution.
 June 21, 2012: BAE Systems wins £15.5 Million MoD Contract for BAE 146 conversions for The Royal Air
Force.
 April 23, 2012: BAE Systems has received a $75 million order from the U.S. Defense Logistics Agency
(DLA) to produce and deliver hard armor inserts used to protect Soldiers and other men and women in
combat.
 December 22, 2011: BAE Systems Land & Armaments has received two contract awards totaling more than
$150 million to provide RG31 and RG32M vehicles to the United Arab Emirates and Sweden.
 November 17, 2011: BAE Systems has received a $132 million U.S. Navy task order to provide C4ISR
(Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) technical
services for military operations around the world.
 June 3, 2011: FNSS of Turkey, a joint venture between BAE Systems, Inc. and Nurol Holding of Turkey,
has received and signed a $559 million letter of offer and acceptance (LOA) from DEFTECH of Malaysia
for the design, development and manufacture of 257 DEFTECH AV-8 8x8 wheeled armored vehicles and
Integrated Logistics Support for the Malaysian Armed Forces.
Company Name BAE Systems PLC

Country BRITAIN
Currency GBp Management
Market Price 349 Ian Graham King CEO
Number of Outstanding Shares (Mln) 3.249 D Michael Bennett Senior VP
N.F.D. (€ Mln)@12/31/2011 1.271 Income Statement (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Enterprise Value (€ Mln) 14.890 Sales 25.174 21.323 -15,3%
Source: Bloomberg @ 14/09/2012 Ebitda 2.873 2.738 -4,7%
Shareholders Ebit 1.944 1.968 1,2%
INVESCO LTD 13,02% Net Income 1.262 1.488 17,9%
BLACKROCK INC 5,14% Ebitda % Sales 11% 13%
AXA 4,98% Ebit % Sales 7,7% 9,2%
FRANKLIN RESOURCES I 4,90% Net Income % Sales 5% 7,0%
CAPITAL GROUP INTERN 4,30%
BARCLAYS PLC 3,96% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
LEGAL & GENERAL INV 3,70% Total Assets 28.834 27.719 -3,9%
SILCHESTER INTL INVE 3,50% of which Net Fixed Assets 3.257 2.995 -8,0%
MAJEDIE ASSET MANAGE 2,40% N.F.D. -24 1.271 n/a
CAPITAL RESEARCH AND 2,25% Tot Equity 6.483 5.158 -20,4%
Market 51,85%
Revenues Breakdown

Electronic Systems 3.563 3.174 539 445 15% 14% UK 4.966 4.498
Cyber & Intelligence 1.441 1.679 83 86 5,7% 5,1% Rest of Europe 2.352 2.359
Platforms & Services (US) 9.154 6.306 486 307 5,3% 4,9% Middle East 3.786 2.859
Platforms & Services (UK) 7.707 7.387 490 710 6% 10% USA and Canada 12.242 9.603
Platforms & Services (International) 3.975 3.306 500 527 13% 16% Asia - Pacific 1.526 1.572
Total segments 25.840 21.851 2.097 2.076 8,1% 9,5% Africa, Central Latin America 302 431
Intersegment and Other -666 -528 0 0 Total geographic areas 25.174 21.323
Group's Result 25.174 21.323 1.944 1.968 8% 9%
Platforms & Africa, Central
Services Electronic Latin America
Cyber & Asia - Pacific
(International) Systems 2%
Intelligence 7%
15% 14%
8% UK
21%
Rest of Europe
USA and 11%
Platforms & Canada
Services (UK) Platforms & 45%
34% Services (US) Middle East
29% 14%
Analysis of Results
 In 2011 Group’s revenues reached € 21.3 billion, an decrease of 15.3% versus € 25.1billion in the previous fiscal year.
The Group has revised its reporting segments to align with the Group’s strategic direction and improve visibility in areas
of recent development of the business. BAE Systems now has five principal reporting segments.
 For 2011, Electronics Systems revenues reduced by 11% on 2010 reflecting the completed F-22 and Advanced Threat
Infrared Countermeasures (ATIRCM) production programmes, the impact of the delayed programme awards, and the
disruption caused by the Johnson City flood.
 Cyber&Intelligence segment recorded a 16% increase in revenue primarily reflecting higher volumes on legacy
programmes in the US Global Analysis business.
 Platforms & Services (US) revenues reduced by 30%. At Land & Armaments, sales reduced to £3.5bn (€ 4.4 bn),
primarily reflecting the anticipated lower level of Bradley reset/remanufacturing activity on a reduced level of military
operations, and the completed Family of Medium Tactical Vehicles (FMTV) programme. Sales1 at Support Solutions
increased by 1%.
 In 2011 Platforms & Services (UK) revenues were 4% below 2010 reflecting the impact of the terminated Nimrod
MRA4 and Harrier programmes following the Strategic Defence and Security Review (SDSR).
 Platforms & Services (International) revenues were 16% lower reflecting the maturing Tornado upgrade and core
support programmes, and the completed contract for Tactica vehicles.
Analysis of Results
 Group’s EBIT increased by 1.2% in 2011 compared to 2010, totaling € 1.97 billion.
 Electronic Systems segment’s EBIT reduced to 17% reflecting risk retirement on completion of the F-22 and
ATIRCM programmes.
 Cyber&Intelligence segment’s EBIT increased by 4.3% compared to 2010 after expensing costs of integrating
acquired businesses and Security Operations Centre investment.
 EBIT for Platforms & Services (US) reduced to 36.8% reflecting primarily self-funding of the costs on the Ground
Combat Vehicle (GCV) team during the award protest, and a short-term under-recovery of overheads from the
delayed placement of Caiman and GCV contracts.
 In 2011 Platforms & Services (UK) segment profit increased by 45% as a result of charge in the first half on the
Omani Offshore Patrol Vessel (OPV) programme; a benefit from a UK Ministry of Defence (MoD) settlement
agreement; and a benefit from the increase in the carrying value of the Trinidad and Tobago OPVs upon signature of
a contract for sale of these vessels to the Brazilian Navy.
 EBIT of Platforms & Services (International) increased by 5.3% on strong performance and risk reduction on the
Tornado upgrade and core support programmes.
 In 2011, Net Income of the Group was € 1.5 billion compared to € 1.3 billion in fiscal year 2010.
232
Northrop Grumman Corp

Northrop Grumman Corp – USA 233
Description
 Northrop Grumman Corporation is an integrated enterprise consisting of some 25 formerly separate businesses
that cover the entire defense spectrum, from undersea to outer space and into cyberspace. The Group provides
innovative systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to
government and commercial customers worldwide.
 The company is categorized into 4 segments:
 INFORMATION & SERVICES: a leading global systems integrator of complex, mission-enabling systems
mainly for the U.S. Department of Defence (DoD), also for many foreign Governments and commercial
customers.
 ELECTRONICS: develops, produces, integrates and supports high performance sensors, intelligence
processing, and navigation systems operating in all environments from undersea to outer space and
cyberspace. It also develops, produces and integrates power control, and ship controls for commercial and
naval ships. It provides systems direct to end user customers in domestic and international markets. In
specific markets it operates as a prime contractor, integrating multiple subsystems to provide complete
systems to meet customers’ solution requirements. The segment produces radar systems for the F-16, F-22
and F-35 aircrafts.
 AEROSPACE: designs, develops, produces, and supports fully missionized integrated battlespace systems
and subsystems, command and control systems, integrated combat systems, and airborne ground
surveillance.
 SHIPBUILDING: the Group, the nation’s industrial designer, builder, and refueler of nuclear-powered
aircraft carriers. Moreover, the Group is the main provider of U.S. Navy and U.S. Coast Guard; it also
provides commercial ships and a wide range of related maintenance and assistance services.
 August 13, 2012: Northrop Grumman Corporation has signed a U.S. Department of Defense Mentor-
Protégé agreement with Juno Technologies, a teammate on Northrop Grumman's Consolidated Afloat
Networks and Enterprise Services (CANES) program.
 July 23, 2012: The U.S. Air Force awarded Northrop Grumman Corporation two contract
modifications totaling $156 million to continue operating and maintaining the Battlefield Airborne
Communications Node (BACN) system in support of overseas contingency missions.
 April 4, 2012: Northrop Grumman Corporation has been awarded an Army Private Cloud (APC2)
contract by the U.S. Army.
 March 20, 2012: Northrop Grumman Awarded $96 Million for Missile Defense C2BMC Contract.
 January 30, 2012: U.S. Army Awards Northrop Grumman $122 Million Counter-Rocket, Artillery and
Mortar (C-RAM) Contract.
 December 30, 2011: Boeing and Northrop Grumman GMD Team Receives Contract From US Missile
Defense Agency.
 October 31, 2011: Northrop Grumman Awarded $124 Million Contract for Counter-Rocket, Artillery
and Mortar Systems.
 July 12, 2011: Northrop Grumman Awarded DoD Civil Engineering Support Contract
 May 9, 2011: The U.S. Air Force awarded Northrop Grumman Corporation a $372 million contract to
begin designing a new antenna system that will enable the B-2 Spirit stealth bomber to send and
receive battlefield information securely by satellite up to 100 times faster than it can today.
Northrop Grumman
Company Name
Corp
Currency USD Management
Market Price 66 Wesley G. Bush Chairman, President & CEO
Number of Outstanding Shares (Mln) 247 James F. Palmer VP & CFO
Market Cap (€ Mln) 12.651 David T Perry VP & Chief Global Bus Dev Officer
N.F.D. (€ Mln)@12/31/2011 730
Sales 21.714 20.378 -6,2%
Ebitda 2.609 2.947 13,0%
Shareholders
Ebit 2.181 2.528 15,9%
Net Income 1.584 1.634 3,2%
CAPITAL WORLD INVEST 5,99% Ebitda % Sales 12% 14%
VANGUARD GROUP INC 4,41% Ebit % Sales 10,0% 12,4%
MASSACHUSETTS FINANC 3,22% Net Income % Sales 7,3% 8,0%
FIRST EAGLE INVESTME 2,68% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
HARRIS ASSOCIATES L 2,42% Total Assets 24.234 19.606 -19,1%
PZENA INVESTMENT MAN 2,03% of which Net Fixed Assets 2.349 2.351 0,1%
N.F.D. 789 730 -7,5%
BLACKROCK ADVISERS 1,97%
Tot Equity 10.366 7.975 -23,1%
LSV ASSET MANAGEMENT 1,95%
Market 61,05%
Revenues Breakdown

Information Systems 6.477 6.111 583 591 9,0% 9,7%
Aerospace Systems 8.418 8.069 969 973 12% 12,1%
Electronics Systems 5.874 5.688 789 826 13% 15%
Technical Services 2.492 2.082 159 167 6,4% 8,0%
Total segments 23.261 21.950 2.501 2.556 11% 11,6%
Intersegment and Other -1.547 -1.572 -178 -199
Overhead Costs and Other 0 0 319 -29
Group's Result 21.714 20.378 2.181 2.528 10% 12%
Revenues fiscal year 2011 - Segments Revenues fiscal year 2010- Segments
Information & Shipbuilding Information

Shipbuilding
Sevices 18% & Sevices
18%
31% 31%
Electronics Electronics
21% 21%
Aerospace Aerospace
30% 30%
Analysis of Results
 In 2011, revenues drop approximately 6.0% compared to 2010.

 In 2011, Information Systems revenue decreased by 6%, as compared with 2010. The decrease is primarily due to $327
million lower sales in Defense Systems and $99 million lower sales in Civil Systems.
 In 2011, Aerospace Systems revenue decreased by 4%, as compared with 2010. The decrease is primarily due to $388
million lower sales in Space Systems (SS) and $255 million lower sales in Strike & Surveillance Systems (S&SS).
 In 2011, Information Systems revenue decreased by 6%, as compared with 2010. The decrease is primarily due to $327
million lower sales in Defense Systems and $99 million lower sales in Civil Systems.
 In 2011, Electronic Systems Electronic Systems revenue decreased by 3%, as compared with 2010. The decrease was
primarily due to $325 million lower sales in Land & Self Protection Systems, partially offset by $65 million higher sales
in Advanced Concepts & Technologies (AC&T).
 In 2011, Technical Services revenue decreased by 16%, as compared with 2010. The decrease is primarily due to $626
million lower sales in Defense and Government Services Division (DGSD) and $87 million lower sales in Training
Solutions Division (TSD), partially offset by higher sales of $182 million in Integrated Logistics and Modernization
Division (ILMD).
Analysis of Results
 In 2011 Group’s EBIT experienced a strong increase of 16% compared to 2010.

 Information Systems operating income increased by 1.3% as compared with 2010. The increase is primarily driven
by improved performance on several civil systems programs, including the Virginia IT Outsource (VITA) contract
and the effect of the sale of the County of San Diego contract, partially offset by the lower sales volume primarily
at Defense Systems.
 Aerospace Systems operating income increased by less than 1%, as compared with 2010. The increase is primarily
due to improved performance across several programs at Aerospace Systems and lower amortization expense on
purchased intangibles, partially offset by an unfavorable adjustment for performance incentives on a space
program at SS.
 Electronic Systems operating income increased by 4.6%, as compared to 2010. The higher operating income is
primarily due to performance improvements on several contracts nearing completion in Land & Self Protection
Systems and Intelligence, Surveillance & Reconnaissance programs. The improved program performance was
partially offset by reserves established in 2011 for reductions in workforce and a reserve on a program related to
outstanding contractual issues as the contract nears completion.
 Operating income at Technical Services increased by 5%, as compared with 2010. The increase is primarily due to
effects of the change in participation in the NSTec joint venture and performance improvements on several
ILMD and DGSD programs, partially offset by unfavorable program performance on KC-10 and lower sales
volume on certain TSD programs.
 In fiscal year 2011, the Group Net Income was € 1.6 billion, up from € 1.5 billion the previous FY.
239
Raytheon Company
Raytheon Company – USA 240
Description
 Raytheon Company through its subsidiaries is a provider of defense and government electronics, space,
information technology and technical services. They design, develop, manufacture, integrate, support and
provide a wide range of technologically advanced products, services and solutions for governmental and
commercial customers in the United States and abroad.
 The Group is involved in approximately 14,000 contracts distributed between different lines of activity:
 INTEGRATED DEFENSE SYSTEMS (IDS): is a provider of integrated joint battlespace (e.g. space,
air, surface and subsurface) and homeland security solutions and delivers mission assured solutions for
ballistic missile defense, air defense, naval and maritime, and homeland security applications, which
enable situational awareness and joint integrated fires. IDS’ key customers include the U.S. Navy, Army,
Air Force and Marine Corps, the U.S. Missile Defense Agency and the Department of Homeland
Security. Key international customers include Japan, Saudi Arabia, Taiwan, Australia, Germany and the
UK.
 INTELLIGENCE & INFORMATION SYSTEMS (IIS): is provider of national and tactical intelligence
systems and information solutions for U.S. and foreign government clients. IIS leverages its command,
control and communications technologies and its capabilities in intelligence and information systems to
provide integrated ground systems for signal and image intelligence and weather and climate systems,
command and control solutions for air/space platforms, operations, maintenance and engineering
(OM&E) services, and information technology and homeland security solutions. IIS serves a variety of
customers including, the U.S. Air Force and Navy, the National Oceanic and Atmospheric Administration
(NOAA), NASA and the National Geospatial-Intelligence Agency (NGA), as well as other federal, civil,
military and international customers.
Description
 MISSILE SYSTEMS (MS): a developer and producer of missile systems for the army of the U.S. and other
allied nations. MS developed a broad range of cutting edge weapon systems that includes missiles, smart
munitions, projectiles, kinetic kill vehicles, space vehicles and directed energy effectors. MS’ major customers
include the U.S. Navy, Army, Air Force, Marine Corps and the armed forces of more than 40 allied nations.
 NETWORK CENTRIC SYSTEMS (NCS): develops and produces net-centric mission solutions for
networked sensors, command and control communications, and air traffic and homeland security. NCS
capabilities include network centric operations, mission systems integration and recognized excellence in
ground sensors, communications, command and control, and air traffic control systems. NCS’ major
customers include the U.S. Army, Air Force, Navy and Marine Corps, and the Federal Aviation Administration
(FAA), as well as numerous international customers.
 SPACE & AIRBORNE SYSTEMS (SAS): provides services in the design and development of integrated
systems and solutions for advanced missions, including traditional and non-traditional intelligence, surveillance
and reconnaissance, precision engagement, unmanned aerial operations, special forces operations and space.
SAS provides electro-optic/infrared sensors, airborne radars for surveillance and fire control applications,
lasers, precision guidance systems, electronic warfare systems and space-qualified systems for civilian and
military applications. SAS predominantly provides products and services to the U.S. Navy, Air Force and Army,
as well as classified and international customers.
 TECHNICAL SERVICES (TS): provides technology solutions for defense, federal government and
commercial customers worldwide, specializing in Mission Support–total life-cycle support that predicts
customer needs, senses potential problems and responds proactively with appropriate solutions, as well as
homeland security, customized engineering and manufacturing services and base and range operations. TS also
provides lifecycle logistics support to Raytheon products and systems in the field.
 August 1, 2012: Raytheon awarded $51 million to produce new Rolling Airframe Missile.
 July 25, 2012: Raytheon awarded $925 million for advanced Standard Missile-3.
 May 16, 2012: Raytheon awarded $313.8 million for Standard Missile-6 all-up rounds.
 March 12, 2012: Raytheon Wins $77.9 Million US Army Missile Subsystem Support Contract.
 January 10, 2012: Raytheon Awarded $212.8 Million for Evolved Seasparrow Missile.
 Dec 30, 2011: Raytheon Awarded Contract for $363.9 Million for two Radars
 June 21, 2011: Raytheon Company has received a $1.7 billion Direct Commercial Sales contract to upgrade
Saudi Arabia's Patriot Air and Missile Defense System to the latest Configuration-3
 April 27, 2011: Raytheon Company was awarded a $128.5 million contract to provide engineering services
for the Patriot Air and Missile Defense System.
 April 21, 2011: Raytheon Company received a $173 million U.S. Army fiscal year 2010 contract for the
production of Excalibur precision-guided projectile rounds for in-theater use.
 March 31, 2011: The Missile Defense Agency awarded Raytheon Company a $312 million manufacturing
contract for the Standard Missile-3 Block IB program.
 March 8, 2011: Raytheon Company has been awarded a $42 million U.S. Air Force contract for additional
AN/AAQ-29A forward looking infrared imaging systems for installation on Pave Hawk HH-60G
helicopters.
Company Name Raytheon Co

Market Price 58 William H. Swanson Chairman & CEO
Number of Outstanding Shares 332 David C. Wajsgras Senior Vice President & CFO
(Mln)
Market Cap (€ Mln) 14.809 Jay B. Stephens Senior VP, Secretary & Gen Counsel
N.F.D. (€ Mln)@12/31/2011 467
Source: Bloomberg @ 14/09/2012 Sales 19.430 19.178 -1,3%
Shareholders Ebitda 2.335 2.549 9,2%
BARROW HANLEY MEWHIN 6,22% Ebit 2.011 2.204 9,6%

Net Income 1.420 1.440 1,4%
Ebitda % Sales 12% 13%
Ebit % Sales 10,4% 11%
Net Income % Sales 7,3% 8%
BANK OF AMERICA CORP 2,37%
Total Assets 18.843 19.948 5,9%
FRANKLIN RESOURCES I 2,14%
BLACKROCK ADVISERS 2,04%
N.F.D. -22 467 n/a
Tot Equity 7.631 6.435 -15,7%
Market 68,10%
Revenues Breakdown

Integrated Defense Systems 4.220 3.825 678 645 16% 17% USA 14.968 14.420
Intelligence & Information Systems 2.127 2.326 -121 123 -5,7% 5,3% Asia - Pacific 2.055 1.972
Missile Systems 4.422 4.313 505 535 11% 12% Middle East and Africa 1.430 1.710
Network Centric Systems 3.794 3.470 541 515 14% 15% Other 976 1.076
Space and Airborne Systems 3.727 4.054 529 553 14% 14% Total geographic areas 19.430 19.178
Technical Services 2.679 2.587 231 241 8,6% 9,3%
Total segments 20.970 20.576 2.363 2.611 11% 13%
Corporate and Eliminations -1.540 -1.397 -180 -260
Group's Result 19.430 19.178 2.011 2.204 10% 11%
Technical Integrated
Defense Other
Services 6%
12% Systems Middle East
19% and Africa
9%
Space and Intelligence &
Airborne Information
Systems Systems Asia - Pacific
20% 11% 10%
Network USA
Centric Missile 75%
Systems Systems
17% 21%
Analysis of Results
 In 2011, Raytheon’s revenues were € 19.2 billion, a 1.3% decrease compared to € 19.4 billion for FY 2010.
 Integrated Defense Systems experienced a decrease in sales for 2011 of 9.4%. The decrease in net sales of $512
million in 2011 compared to 2010 was primarily due to $316 million of lower net sales from the scheduled
completion of certain design and production phases on a U.S. Navy combat systems program and the deferment of
certain work due to the U.S.
 In 2011, Intelligence & Information Systems reported a 9.4% growth in revenues. The increase in net sales of $258
million in 2011 compared to 2010 was primarily due to the difference in net sales from the UK Border Agency
Program.
 In 2011, Missile Systems decreased its revenues by 2.5%, primarily due to lower net sales of $210 million on the
Standard Missile-2 (SM-2) program, $90 million on the Evolved Seasparrow Missile (ESSM) program, and $70 million
on the Standard Missile-3 (SM-3) program, principally from lower volume driven by scheduled lower production build
rates. The decrease in net sales was partially offset by higher net sales of $92 million on the Small Diameter Bomb II
(SDB II) program and $86 million on the Paveway™ program, principally from higher volume due to scheduled
increases in design and production efforts.
 In 2011, Network Centric Systems reported a 8.6% decline that was primarily due to lower net sales on U.S. Army
sensor programs due to a planned decline in production, on a combat vehicle sensor program, on a U.S. Army radar
support program, principally due to the completion of significant upgrade efforts,
 In 2011, Space & Airborne Systems revenues increased by 8.8%, primarily due was primarily due to $200 million of
higher net sales related to RAST
 In 2011, Technical Services generated a 3.4% decrease in revenues due to lower net sales on a DTRA program.
Analysis of Results
 In 2011 Group’s EBIT was posted at 2.2 billion, a 9.6% increase.
 In 2011, Integrated Defense Systems recorded a 5% decrease in EBIT primarily driven by the change in net sales.
 In 2011, Intelligence & Information Systems showed a significant growth in EBIT to € 123 million, primarily due to
principally driven by the UKBA Program Adjustment in 2010, which had an impact of $395 million.
 In 2011, Missile Systems recorded an 6% growth in EBIT, primarily due to the activity on the SM-2, ESSM and SM-3
programs for the change in net sales.
 In 2011, Network Centric Systems’ EBIT decreased by 5% primarily due to decreased volume, which had an impact
of $59 million, principally driven by the programs discussed in net sales.
 In 2011, Space and Airborne Systems recorded a 4.5% growth in EBIT primarily due to increased volume
 The EBIT of the Technical Services segment increased by 4% primarily due to a change in contract mix and other
performance of $13 million, primarily driven by cost efficiencies and higher award fees associated with various
training programs, which had an impact of $8 million. Operating income also increased due to a net change in EAC
adjustments of $11 million, primarily driven by cost efficiencies on a weapon production and modification program,
which had a $7 million impact on operating income.
 In fiscal year 2011 Group’s Net Income was € 1.44 billion, a 1.4% growth compared to € 1.42 billion in fiscal year
2010.
247
Finmeccanica S.p.A.
Finmeccanica S.p.A. – Italy 248
Description
 Finmeccanica S.p.A., through its subsidiaries, operates in the following business segments:
 AERONAUTICS: Finmeccanica manufactures state of the art complete tactical airlifters, combat aircraft
and unmanned air vehicles for both civil and military applications. The Group produces training aircraft
complete with related support services. Its aeronautical business also includes aircraft modifications and
overhaul on behalf of the world's largest manufacturers. Through its subsisdiaries Alenia Aeronautica,
Alenia Aermacchi and Alenia Aeronavali, Finmeccanica has won key roles in the latest international
aeronautical programmes and include products and services for global players.
 HELICOPTERS: Finmeccanica is the world leader in the helicopter market, in the design and
development of helicopters and tiltrotors for civil and military use. It operates in this field through its
subsidiary company AgustaWestland that boasts the technology required to undertake every phase of a
helicopter, from the preliminary analysis and definition of operational requirements to the design,
development and production of transmissions, rotors, metal and composite structures and avionics
systems, as well as their integration into a complete “helicopter system”.
 SPACE: Via its agreements with the French company, Alcatel, Finmeccanica has created Europe's
leading operator in the space sector in the form of two joint ventures operating in satellite construction
and satellite services management. Finmeccanica has a long tradition of excellence in the space arena and
has achieved a world-leading position in the design, development and manufacture of positioning,
telecommunications, Earth observation and remote sensing satellites for civil and military use. One of its
most prestigious activities is the production of components for space transport systems and orbiting
structures, as well as the supply of high value-added satellite services.
Description
 DEFENCE ELECTRONICS and SECURITY: Finmeccanica is the second European player in the
defence electronics market and the sixth worldwide. This position stems from the recent agreements
with BAE Systems that led to a cluster that includes SELEX Sensors and Airborne Systems and
Galileo Avionica (operating with the new brand SELEX Galileo), SELEX Communications and
SELEX Sistemi Integrati. The three companies are active respectively in avionics, military and secure
communications, air traffic control and management. The grouping also includes Elsag Datamat, which
designs and produces systems and solutions for automation, security, transports, defence, space and
Information Technology and SELEX Service Management, a supplier of integrated communications
services for military and civil security.
 DEFENCE SYSTEMS: Finmeccanica is a recognized technology leader in the design, development
and production of missile systems, torpedoes, naval artillery and armored vehicles. Finmeccanica is
active in the field both through the MBDA joint venture, the major European missile systems
company, and its wholly owned subsidiaries Oto Melara and WASS, each of which is a leader in its
field.
 ENERGY & TRANSPORTATION: Ansaldo Energia is the Finmeccanica specialist in the production
of energy. It operates on the international market for customers including governments, independent
power producers and industrial users. The company offers a complete and largely proprietary range of
products, including single or combined cycle, atomic energy and services. Finmeccanica is active in the
railroad business through the design, development and production of rolling stock, signaling gear and
complete urban transport systems. ANSALDO STS controls Ansaldo Signal N.V., which operates in
the field of railway and urban transport signaling, and Ansaldo Trasporti-Sistemi Ferroviari S.p.A.,
whose skills lay in the integration of systems and technologies for the supply of turnkey rail and mass
transit systems. AnsaldoBreda is the Finmeccanica company that builds rolling stock for mass transit
systems.
 July 19, 2012: In the framework of a collaboration agreement between the Italian and Israeli governments,
Finmeccanica announced that it has signed contracts worth approximately USD 850 million through the
operational companies Alenia Aermacchi, Telespazio and SELEX Elsag.
 May 28, 2012: Finmeccanica orders signed for a value worth EUR 220 million. IDIQ contracts signed by
DRS for a value up to USD 134 million.
 May 10, 2012: Finmeccanica was selected by the Australian Government to supply 10 newly built Alenia
Aermacchi C-27J Spartan Battlefield Airlifters. The total value of the contract, which also includes logistic
support and training, is around EUR 800 million.
 March 30, 2012: Finmeccanica, through its company Alenia Aermacchi, has won a contract worth more
than EUR 500 million to supply technical and logistical support services as part of the Eurofighter
Typhoon programme.
 February 16, 2012: Telespazio, a Finmeccanica company, has been awarded new contracts with a total
value of about EUR 112 million in the first few weeks of 2012.
 January 26, 2012: Finmeccanica has been awarded new contracts worth a total of EUR 120 million through
its subsidiary SELEX Sistemi Integrati.
 December 23, 2011: Finmeccanica won new orders valued up to about EUR 109 million through its
companies DRS Technologies, Ansaldo STS, Alenia Aeronautica and Oto Melara.
 September 9, 2011: Finmeccanica won new orders for a total value up to about EUR 120 million in USA,
through DRS Defense Solutions, and in Russia, through SELEX Elsag.
Company Name Finmeccanica SpA
Country ITALY
Market Price 4 Giuseppe Orsi Chairman/CEO
Number of Outstanding Shares (Mln) 578,2 Gian Piero Cutillo CEO
Market Cap (€ Mln) 2.232 Alessandro Pansa CFO & Co-General Manager
N.F.D. (€ Mln)@12/31/2011 4.514
Sales 18.695 17.318 -7,4%
Ebitda 1.869 304 -83,7%
Shareholders
Ebit 1.084 -1.477 -236,3%
MINISTERO DELL'ECONO 32,45% Net Income 493 -2.345 -575,7%
TRADEWINDS GLOBAL IN 4,98% Ebitda % Sales 10% 2%
GRANTHAM MAYO VAN OT 2,04% Ebit % Sales 5,8% -8,5%
LIBYAN INVESTMENT AU 2,01% Net Income % Sales 2,6% -13,5%
VANGUARD GROUP INC 0,83% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
FIDEURAM GESTIONS SA 0,81% Total Assets 31.082 30.593 -1,6%

of which Net Fixed Assets 3.270 3.170 -3,1%
BLACKROCK ADVISORS U 0,63%
N.F.D. 3.946 4.514 14,4%
UBI PRAMERICA SGR SP 0,39%
Tot Equity 7.098 4.604 -35,1%
NUVEEN ASSET MANAGEM 0,37%
Market 54,60%
Revenues Breakdown
Revenues EBITA* EBITA* MARGIN Orders Portfolio Revenues

Segment (€ Mln) Dec-10 Dec-11 Dec-10 Dec-11 Dec-10 Dec-11 Dec-10 Dec-11 Geographic Area (€ Mln) Dec-10 Dec-11
Aeronautics 2.809 2.670 205 -903 7% -34% 7.538 8.248 Italy 3.790 3.436
Helicopters 3.644 3.915 413 417 11% 11% 8.572 9.004 UK 2.201 2.060
Space 925 1.001 39 18 4,2% 1,8% 1.264 1.423 Rest of Europe 4.723 4.595
Defence Electronics and Security 7.137 6.035 735 303 10,3% 5% 7.676 8.725 North America 4.677 4.001
Defence Systems 1.210 1.223 107 117 8,8% 10% 4.252 4.099 Rest of world 3.304 3.226
Energy, Trasport. & Other 3.618 3.163 90 -168 2,5% -5,3% 7.171 8.285 Total geographic areas 18.695 17.318
Total segments 19.343 18.007 1.589 -216 8,2% -1,2% 36.473 39.784
Intersegment and Other -648 -689 0 0 -663 -480
Overhead Costs and Other 0 0 0 0
Group's Result 18.695 17.318 1.589 -216 8,5% -1,2% 35.810 39.304
*Earning before Interests, Taxes and Amortization

Energy, Revenues fiscal year 2011 - Geographic areas
Trasport. & Aeronautics
Italy
Other 15%
20%
18%
Rest of
Defence world
Systems Helicopters 19%
7% 22% UK
North America 12%
Defence 23%
Electronics and
Security Space
33% 5% Rest of Europe
26%
Analysis of Results
 During 2011 consolidated revenues decreased by 7.4%, from € 18.7 billion to € 17.3 billion.
 Helicopters’ revenues increased 7.4% over December 31, 2010; in attributable to the different mix of revenues, with
certain product lines in the helicopter segment remaining in line with the figures reported a year earlier, while there was
excellent performance reported in product support (up 18.5%).
 Defence Electronics and Security revenues decreased by 15.4% compared to 2010. This due to the decline in activity
across all segments, mainly the decrease in the DRS production volumes as a result of the completion of important
programmes for the US military. The revenues for the period also reflected the loss of the contribution of important
orders that were being carried out for or were in the process of being received from Libya.
 The Aeronautics division reported revenue drop of 5% in 2011 due to less activity on the EFA programme and lower
revenues on the B787 programme, partially offset by expansion in production on the ATR, M346 and JSF programmes.
 Space segment’s revenues increased in 2011, growing 8.2% versus 2010 to € 1 billion. The growth was due largely to
higher production in both the manufacturing and satellite services segments.
 Defence Systems revenues increased slightly in 2011 at € 1.22 billion(+1.1%) . The essentially in line with the figure
reported at 31 December 2010 (€mil. 1,210). Increased activities in the land, sea and air weapons systems segment have
largely offset the decline in revenues in the underwater systems segment.
 The Energy, Transportation and Other segment reported sales of € 3.16 billion in 2011, down from 2010 (-12.6%). This
was mainly attributable to lower production volumes in the services segment, particularly on the solutions (changing
parts of the turbine) and repair (spare parts) sides.
Analysis of Results
 In 2011 Group’s EBITA was recorded a loss € 1.5 billion, a 114% decline in comparison to the previous FY.
 Helicopters’ EBITA increased 1% in 2011. This improvement is correlated with the different revenue mix mentioned
in revenue.
 The EBITA of the Defence Electronics and Security reached € 303 million in 2011, down from the figure reported at
in 2010 (€mil. 735), as a result of the significant deterioration reported in the major integrated defence and security
systems and command and control systems (SELEX Sistemi Integrati) segments that, in addition to reflecting the
decline in revenues and the different composition of: activities performed (penalised in part by the lack of new orders
and the consequences of the conflict in Libya); lower profits in certain business areas in the information technology
and security segment; the decline in revenues of DRS; lower production volumes; decreased activity in value-added
services for security applications.
 The EBITA in the Aeronautics segment decreased to a negative € 903 million due to “exceptional” costs connected
with the B787 programme, which was marked by new events that altered the existing scenario and due to negative
operating performance caused by reduced industrial efficiency in certain production processes, higher costs required
to complete several orders, mainly in the A380, Falcon ATR, G222 and ATR (special versions) programmes and the
different mix or programme activities.
 Space segment’s EBITA fell to € 18 million from € 39 million in 2010 due solely to the satellite services segment.
 Defence Systems’ EBITA reached € 117 million in 2010 from € 107 million in 2010 as result of higher production
volumes in the land, sea and air weapons systems segment and increased deliveries on orders in the missile systems
segment
 The Energy, Transportation and Other segment reported a decrease in EBITA to a negative value, € 168 million in
2011 versus € 90 million in 2010. This mainly due to lower revenues and the impact of the lower profitability of
certain orders in the plant engineering, service and nuclear segments as a result of a different production mix, and
regarding to Transportation segment was mainly attributable to vehicles segment.
 In fiscal year 2011 Group’s Net Income showed a loss to € 2.3 billion, a 575% decline.
255
Rolls Royce
Rolls Royce – UK 256
Description
 Rolls-Royce is a global business providing power systems for use on land, at sea and in the air. The Group has a
balanced business portfolio with leading positions in the civil and defence aerospace, marine and energy markets.
It operates in the following segments:
 CIVIL AEROSPACE: development, manufacture, marketing and sales of commercial aero engines and
aftermarket services. Rolls-Royce supplies with its products more than 600 airlines and 4,000 corporate and
utility operators. The business unit has a high market share, thanks to Group’s long term relationships with
the main aircrafts producers, as Boeing, Airbus, Embraer and Gulfstream, and top airlines such as Air
China, Air New Zealand, Lufthansa, Singapore Airlines, Thai Airways and Qantas.
 DEFENCE AEROSPACE: development, manufacture, marketing and sale of military aero engines and
aftermarket services. Rolls-Royce is the world’s second largest defence aero-enginemanufacturer, providing
around 25% of the world’s military engines. The portfolio covers all major sectors, including transport,
helicopters, combat, trainers and tactical aircraft.
 MARINE: a leader in marine propulsion for cruise, fast vessel, naval and offshore markets and world leader
in ship design for the offshore sector. Rolls Royce serves over 2,000 customer and 70 navies.
 ENERGY: development, manufacture, marketing and sales of power systems for the offshore oil and gas
industry, electrical power generation and aftermarket services.
 July 17, 2012: Rolls-Royce has signed a £10 million contract with Simon Møkster Shipping for a wave piercing
offshore vessel with a striking new bow design that will go into service for Statoil in the Arctic region.
 June 20, 2012: Rolls-Royce has signed an £18 million contract with Italian shipyard Rosetti Marino S.p.A for the
design and delivery of an integrated power & propulsion and equipment system for an anchor handling vessel.
 May 28, 2012: Rolls-Royce has secured contract extensions, which will see the company provide ongoing
support for engines on the UK’s C-130 Hercules transport and VC10 tanker fleets.
 March 22, 2012: Rolls-Royce has received recent contracts exceeding $275 million to provide support services
for the US Armed Services.
 December 19, 2011: Rolls-Royce has won a €250 million contract with AREVA to supply safety
instrumentation and control (I&C) technologies and systems for the French nuclear reactor modernisation
programme.
 November 14, 2011: Rolls-Royce wins Saudi Arabian Airlines order worth up to $500m to provide engines and
TotalCare® support for four Airbus A330 aircraft already announced and four options.
 August 18, 2011: Rolls-Royce wins £15m Brazilian order for offshore supply vessels
 June 29, 2011: Rolls-Royce has won a $1bn order from Singapore Airlines to supply Trent 700 engines to power
15 Airbus A330 aircraft, along with TotalCare® services support.
 June 21, 2011: Rolls-Royce has reached an agreement with Etihad Airways, the national airline of the United
Arab Emirates, to provide long-term engine services and performance enhancement kits worth a total of $360
million.
Revenues Breakdown
Rolls-Royce
Company Name
Holdings PLC
Country BRITAIN
Management
Currency GBp John Frederick Rishton CEO
Market Price 870 Mark Morris Finance Director
Number of Outstanding Shares (Mln) 1.872 Micheal James Terrett COO
N.F.D. (€ Mln)@12/31/2011 -142 Income Statement (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Source: Bloomberg @ 14/09/2012 Ebitda 1.685 1.776 5,4%
Shareholders Ebit 1.244 1.284 3,2%
INVESCO LTD 11,22% Net Income 647 1.020 57,7%
LEGAL & GENERAL INV 3,98% Ebitda % Sales 13% 13,3%
BLACKROCK INV MANAGE 3,21% Ebit % Sales 9,4% 9,6%
Net Income % Sales 5% 7,6%
BAILLIE GIFFORD AND 2,98%
FIDELITY INVESTMENTS 2,75%
NORGES BANK INVESTME 2,36%
Total Assets 19.479 19.706 1,2%
GOVT OF SINGAPORE IN 2,16%
Flourish Investment 2,15%
N.F.D. -1.603 -142 91,2%
Northern Cross Inter 2,14%
Tot Equity 4.774 5.422 13,6%
Market 67,05%

Civil Aerospace 5.902 6.686 470 599 8% 9,0% UK 1.913 1.633
Defense Aerospace 2.547 2.682 371 451 15% 17% Rest of Europe 2.857 2.385
Marine 3.109 2.725 398 388 12,8% 14,2% USA 3.715 4.293
Energy 1.479 1.439 32 29 2,2% 2,0% Canada 359 361
Total segments 13.038 13.531 1.272 1.466 10% 10,8% Asia 1.767 1.721
Overhead Costs and Other 263 -184 -28 -182 Africa 131 313
Group's Result 13.301 13.348 1.244 1.284 9% 10% Midde East and SE Asia 1.902 2.133
*EBIT of each segment does not include overhead costs and other unallocated costs Rest of world 658 508
Energy
Rest of world
11% Midde East and 4%
SE Asia UK
16% 12%
Marine Africa
20% Civil Aerospace 2% Rest of Europe
49% 18%
Asia
13%
USA
Defense 32%
Aerospace Canada
20% 3%
Analysis of Results
 In 2011, Group’s revenues increased by 0.4 %, to € 13.5 billion.
 Civil Aerospace’s revenues showed a 13.3% increase as a result of significantly higher deliveries of widebody (Trent
family of engines) and corporate and regional engines (BR710 engine).
 Defence Aerospace segment’s revenues rose by 5.3% as a result of an eight per cent increase in OE revenue and a
three per cent increase in services revenue with MissionCare™ contracts secured to provide availability-based engine
support for the C-130 fleets of the UK and US air forces.
 The Marine segment’s revenues drop in 2011 versus 2010 in fact revenue decreased 12 per cent, impacted mainly by
slow second half OE revenue that resulted in OE revenue for the full year down 23 per cent.
 Energy segment’s revenue declined by 3%, largely due to the phasing of OE delivery in the power generation business
 The Group’s EBIT for 2011 was up 3.2% in 2011 versus 2010 to €1.29 billion.
 Civil Aerospace segment’s EBIT showed 27.3% growth; Defense Aerospace’s EBIT showed a 21.7% increase as a
result of increased revenue, cost reduction and benefit of termination settlements as a result of the UK MoD’s SDSR.;
Marine segment experienced a 2.7% decrease in EBIT relative to a fall in revenue, and the Energy segment recorded
an EBIT decline of 11.1% as a result of a change in revenue mix and the additional charges incurred to develop the
civil nuclear business and our options in tidal and fuel cells.
 Group’s Net Income, for the fiscal year 2011, was € 1 billion, up 57.7% compared to 2010.
261
Bombardier
Bombardier – Canada 262
Description
 Bombardier is a world-leading manufacturer of innovative transportation solutions ranging from regional
aircraft and business jets to rail transportation equipment, systems and services. The Group operates
through two segments:
 AEROSPACE: the world’s third largest civil aircraft manufacturer, and a leader in the design and
manufacture of innovative aviation products and services for the business, regional and amphibious
aircraft markets. The Aerospace segment has production sites in Canada, the U.S., the United
Kingdom (Northern Ireland) and, more recently, in Mexico. In addition, Aerospace has maintenance
service centers, authorized service facilities, distribution centers and depots for spare parts and several
sales and marketing offices around the world.
 TRANSPORTATION: a leader in rail equipment and system manufacturing and a provider of related
services, offering a full range of passenger railcars, locomotives, light rail vehicles and automated
people movers. It also provides bogies, electric propulsion, control equipment and maintenance
services, as well as complete rail transportation systems and rail control solutions. The Transportation
segment is present in 24 countries comprising of 50 production and engineering sites and 21 service
centers.
 August 3, 2012: Bombardier Transportation announced that it has signed a contract with the Port Authority
of New York and New Jersey (PANYNJ) to provide operations and maintenance (O&M) services for a
further 10 years and a capital asset replacement program to ensure the system continues to perform optimally.
 June 28, 2012: Bombardier Transportation and its Chinese joint venture partner New United Group to supply
propulsion and control equipment for 20 metro trains of six cars each.
 March 30, 2012: Bombardier announces today that it has closed an unsecured ?500 million (approximately
$665 million US) revolving facility with a syndicate of international financial institutions.
 October 9, 2011: GE Aviation and Bombardier announced Engine Service Agreements for challenger and
global aircraft.
 June 24, 2011: Bombardier Aerospace announced that a European customer, who wishes to remain
unidentified at this time, has placed a firm order for 10 Bombardier CS100 jetliners for approximately $628
million US.
 June 21, 2011: Bombardier Aerospace announced that Korean Air, South Korea’s flagship airline, has signed
an agreement to acquire 10 Bombardier CS300 aircraft with an additional 10 options and 10 purchase rights
on CS300 airliners.
 June 21, 2011: Bombardier Aerospace announced that VistaJet of Switzerland has placed a firm order for 10
Global 8000 aircraft. The total value of the order is approximately $650 million US, at list price.
 June 14, 2011: Bombardier Transportation has been awarded the major contract for the Sub Surface Railway
(SSR) automatic train control (ATC) signalling upgrade for London Underground in the UK. The contract,
valued at approximately £354 million GBP (approx € 402 million euro / $ 577 million US), is a part of
London Underground's SSR Upgrade Programme (SUP).
Company Name Bombardier Inc

Management
Country CANADA
Laurent Beaudoin Chairman
Currency USD
Jean-Louis Fontaine Co-Vice Chairman
Market Price 3,8
J. R. André Bombardier Co-Vice Chairman
Number of Outstanding Shares (Mln) 1.440 Pierre Beaudoin President
Market Cap (€ Mln) 4.212 Pierre Alary Senior VP & CFO
N.F.D. (€ Mln)@01/31/2011 339
Enterprise Value (€ Mln) 4.551 Income Statement (€ Mln) Jan-10 Jan-11 ∆ % (2010-2011)
Shareholders Ebitda 1.211 1.126 -7,0%
FIDELITY MANAGEMENT 8,87% Ebit 827 810 -2,1%
IA CLARINGTON INVEST 2,40% Net Income 539 583 8,2%
MCLEAN BUDDEN LTD 2,40% Ebitda % Sales 8,1% 8,2%
GOODMAN & CO INVESTM 1,87%
CI INVESTMENTS INC 1,42%
Balance Sheet (€ Mln) Jan-10 Jan-11 ∆ % (2010-2011)
RBC GLOBAL ASSET MAN 1,22%
Total Assets 16.413 18.077 10,1%
PYRAMIS GLOBAL ADVIS 0,76% N.F.D. 610 339 -44,3%
MD MANAGEMENT LTD 0,65% Tot Equity 2.908 3.358 15,5%
Market 77,96%
Revenues Breakdown
Revenues EBIT EBIT MARGIN Revenues
Segment (€ Mln) Jan-10 Jan-11 Jan-10 Jan-11 Jan-10 Jan-11 Geographic Area (€ Mln) Jan-10 Jan-11
Aerospace 7.219 6.646 365 346 5,1% 5,2% USA 3.372 3.126
Transportation 7.722 7.020 482 464 6,2% 6,6% UK 1.197 1.171
Adjustments 0 0 -26 0 Germany 1.525 1.130
Group's Result 14.942 13.666 827 810 6% 6% France 1.240 1.029
Italy 417 370
Asia 729 913
Africa 310 475
Rest of world 6.151 5.453
Rest of world
40%
Africa
3%
Aerospace
Transportation
49% USA
51% Asia
23%
7%
Italy
3%
France
Germany UK
7%
8% 9%
Analysis of Results
 In fiscal year 2011, Group’s sales decreased 8.5% to € 13.7 billion from € 14.9 billion in 2010.
 Aerospace segment’s revenues fell 7.9%. This was mainly due to lower deliveries of business aircraft, partially offset
by higher net selling prices for large business aircraft and lower deliveries of commercial aircraft partially offset by
higher net selling prices.
 Transportation segment’s revenues fell by 9.1% to € 7 billion primarily as a result of lower activities in locomotives
and commuter and regional trains in Europe and intercity trains in Asia.
 Group’s EBIT in 2011 fell 2.1% to € 810 million.
 Aerospace’s EBIT fell 5.3% due to a reduction in deliveries.
 The EBIT of the Transportation segment decreased by 3.7% due to lower volumes and certain provisions and PP&E
writedowns.
 In fiscal year 2011, Net Income totaled € 583 million, recording an 8.2% increase compared to € 539 million from the
previous FY.
267
Thales Sa
Thales Sa – France 268
Description
 Thales Group’s businesses are primarily dedicated to critical information systems for defence, aerospace
(aeronautics and space), and security applications, in particular for ground transportation. The business
lines, through which the Group operates, are:
 AEROSPACE & SPACE: this segment includes two divisions: Aerospace (equipment, systems and
services for civil and military aircraft) and Space (satellite solutions through Thales Alenia Space and
satellite services through Telespazio). These two divisions develop onboard systems and solutions
for the defence market (combat aircraft, military helicopters, UAVs and telecommunications and
military surveillance satellites), civil government (maritime patrol aircraft, civil defence helicopters
and weather and oceanography satellites) and commercial markets (commercial aircraft and civil
telecommunications satellites).
 DEFENCE: it serves two main markets: air defence and missile systems for military customers, and
civil air traffic management systems; it develops network centric systems and network-enabled
equipment for land forces and joint and allied commands. It also draws on its dual technology
capabilities to develop tailored offerings for selected civil customers.
 SECURITY: it leverages the company’s technology expertise to provide risk management solutions
for civil, government and private-sector customers.
 TRANSPORTATION: as a leader in providing mission critical solutions for the safety and security
markets it offers a wide range of railways signaling solutions and integrated transportation systems,
to ensure safe and secure transportation of goods and people.
Strategic Development
 August 16, 2012: Thales Australia has strengthened its relationship with General Dynamics Ordnance and
Tactical Systems, having been named the U.S. based company’s representative for ammunition products in
Australia and New Zealand.
 July 17, 2012: Contract signed with Omani Navy for the delivery and integration of sensors and CMS.
 May 28, 2012: Thales awarded a global multiyear support contract for multiple Aircrafts Fleets of the South
African Air Force.
 April 5, 2012: Thales has been awarded a major contract by the defence ministry of a European country to
develop a new HF radio location system.
 February 24, 2012: Thales Alenia Space today signed a contract with the European Space Agency (ESA) to
supply Meteosat Third Generation (MTG) satellites for Eumetsat, the European meteorological satellite
organization.
 December 20, 2011: Thales and Safran signed a Memorandum of Understanding to create an equally-owned
joint venture for optronics (electro-optical) systems and equipment.
 November 23, 2011: Thales Alenia Space announced it has signed a contract with Turkmenistan Ministry of
communication for the design, manufacture and delivery of the first Turkmenistan Telecommunication Satellite.
 September 28, 2011: Thales has acquired 100% of the capital of Omnisys, a Brazilian, electronic engineering
company to supply high-tech solutions for civil, military and space applications with headquarter in São
Bernardo do Campo.
Company Name Thales SA

Country FRANCE
Market Price 27 Luc Vigneron Chaiman & CEO
Number of Outstanding Shares (Mln) 202 Alex Dorrian Executive VP International
Source: Bloomberg @ 14/09/2012 Ebitda 401 1.254 212,4%
Shareholders Ebit -43 839 1842,1%
FRENCH STATE 27,08% Net Income -108 512 375,7%
DASSAULT AVIATION SA 25,96% Ebitda % Sales 3% 9,6%
TSA 22,99% Ebit % Sales -0,3% 6,4%
TRADEWINDS GLOBAL IN 4,96% Net Income % Sales -0,8% 3,9%
SOFIVISION 4,08%
DNCA FINANCE 1,77%
Total Assets 19.020 21.076 10,8%
THALES SA 1,75%
FIRST PACIFIC ADVISO 1,48%
N.F.D. -95 -422 -345,7%
INTERNATIONAL VALUE 1,19%
Tot Equity 3.681 4.130 12,2%
Market 8,74%
Revenues Breakdown

Aerospace & Transport 5.539 5.682 -221 294 -4,0% 5,2% France 2.931 3.407
Defence & Security 7.515 7.253 153 504 2,0% 6,9% UK 1.500 1.492
Other & divested businesses 71 93 -24 -49 -33,8% -52,7% Rest of Europe 3.419 3.457
Total segments 13.125 13.028 -92 749 -0,7% 5,7% North America 1.315 1.269
Intersegment and Other 0 0 0 0 Middle East 1.257 947
Overhead Costs and Other 0 0 49 90 Asia-Pacific 1.887 1.849
Group's Result 13.125 13.028 -43 839 0% 6% Africa - Latin America 815 607
*EBIT of each segment does not include overhead costs and other unallocated costs Total geographic areas 13.125 13.028
Other & Africa - Latin
divested America
businesses 5%
1%
Asia-Pacific
14% France
Aerospace & 26%
Transport Middle East
43% 7%
Defence &
Security UK
56% North America 11%
10%
Rest of Europe
27%
Analysis of Results
 Revenues amounted to €13 billion at 31 December 2011, a level almost unchanged from 2010 (€13.1 billion), taking
into account a negative foreign exchange impact (-€52million) primarily reflecting the conversion into euros of the
revenues from the subsidiaries located outside the euro zone. This negative exchange variation was due primarily to the
depreciation of the American dollar (-€61m) and the pound sterling (-€30m) against the euro, partially offset by the
increase in the Australian dollar (+€44m).
 In the Aerospace & Transport sector, revenues reached €5.7 billion an increase of +3% over 2010. Revenues from
Avionics rose sharply, driven by the increase in the Airbus business (cockpit and cabin equipment, support) and by the
first deliveries for the regional aircraft certified during the year (ATR 600, SSJ). Revenues for tubes and imaging sub-
systems were almost stable during the year. Revenues from Space improved, particularly in the observation segment
(CSO, Meteosat), but also driven by the ramp-up of the Iridium NEXT project. In contrast, Transport Systems
revenues were down versus 2010, mainly due to less revenue from main lines activities in Saudi Arabia and Europe, as
well as from the London Underground.
 Revenues of the Defence & Security sector dipped only moderately to €7.2 billion compared with €7.5 billion at 31
December 2010 (-3%). Revenues generated by Defence Mission Systems decreased slightly, as lower activity on several
export naval programmes was only partially offset by an increase in sonar activities. The reduction in C4I Systems
revenues was sharper, particularly in radio-communications and security systems. The Land Defence activities, in
contrast, posted stable revenues (armaments contracts for France and Australia), as did Air Operations (a slight
increase in military systems making up for a less favourable trend in air traffic control).
Analysis of Results
 EBIT improved strongly and totalled €839 million, or 5.7% of revenues (versus a loss of -€43 million in
2010). This improvement in EBIT reflects the positive impact of the Probasis performance plan, led by
improved project execution.
 The Defence & Security sector significantly improved its EBIT, which amounted to €504 million and
represented 6.9% of revenues, despite higher restructuring costs (€97million versus €71m). This strong
improvement can be seen in all divisions making up this sector. C4I Systems recorded strong growth in their
results, thanks to improved project execution and a reduction in general and sales expenses, which offset an
unfavourable volume effect. Results for Defence Mission Systems also improved, based on the savings
generated by the Probasis plan and the absence of negative variances on the Meltem contract, which had
severely weighed on results in 2010. The growth in results from the Land Defence activities was driven
primarily by the increase in the armaments business and lower development costs. Finally, and despite the
development costs remaining high because of the renewal of the radar product range, results from Air
Operations also improved, thanks to better results from the air traffic control business, the profitability of
which had been affected by the difficulties of the Lorads III project in 2010.
 EBIT for the Aerospace & Transport sector amounted to €294 million (5.2% of revenues), compared with a
loss of -€221 million in 2010. This favourable change was essentially driven by the improvement in results of
the Avionics business. This activity benefited both from the very sharp reduction in negative variances, which
had impacted the 2010 results (A400M, developments), the positive impact of higher volumes in civil aviation,
and the positive effect of the agreement signed with Airbus for the A400M project. Despite lower revenues,
the Transportation Systems business also posted a significant increase in results because of lower variances on
projects (ticketing). Finally, the Space activities recorded almost stable results.
 In fiscal year 2011, Net Income totaled € 512 million, compared to negative result of € 108 million from the
previous FY.
274
Safran Sa
Safran Sa – France 275
Description
 SAFRAN is an international high-technology group including a number of companies with prestigious
brands. Group’s activities can be divided into the following segments:
 AEROSPACE PROPULSION: groups activities related to propulsion systems for airplanes,

helicopters, missiles and launchers, in the civil, military and space sectors: design, production,
marketing, testing, maintenance and repair. Companies through which the Safran operates in this
sector include: Snecma, Turbomeca, Snecma Propulsion Solide e Techspace Aero.
 AIRCRAFT EQUIPMENT: group designs, produces, markets and provides MRO operations for
systems and equipment used on civil and military airplanes and helicopters. ompanies through which
the Safran operates in this sector include: Aircelle, Hispano-Suiza, Messier-Dowty, Messier-Bugatti,
Labinal, Teuchos, Sagem.
 DEFENCE SECURITY: operates in specialized optronics systems and equipment, develops and
markets gyrostabilized pods, sights, periscopes, infrared cameras, multifunction binoculars and many
other leading-edge products. Finally offers a complete range of world-class inertial navigation
systems. These products are used on military transport and combat aircraft, helicopters, warships,
submarines, armored vehicles and artillery systems. In addition, the segment offers a number of
advanced solutions for the digital battlefield: soldier modernization programs, vehicle digitization
(“vetronics”), encryption, communications systems, tactical drone systems, and more.
 July 30, 2012: Snecma (Safran Group) and Rolls-Royce have signed a contract with the UK Ministry of
Defence to undertake studies into the next generation of UK and French combat aircraft engines, through
their 50-50 Rolls-Royce Snecma Ltd joint venture, established in 2001.
 June 13, 2012: Sagem acquires Brazilian company Optovac Mecânica e Optoeletrônica Ltda, a Brazilian
company specialized in optronics and night vision equipment.
 March 27, 2012: Sagem's JIM LR binoculars win Long Range Thermal Imager contract for British army .
 January 20, 2012: Sagem (Safran group) selected by Embraer for KC-horizontal stabilizer trim system.
 December 20, 2011: Thales and Safran signed a Memorandum of Understanding to create an equally-owned
joint venture for optronics (electro-optical) systems and equipment.
 July 26, 2011: Safran announced that it has finalized the acquisition of L-1 Identity Solutions, Inc., a leading
identity management solutions provider in the United States, for a total cash amount of $1.09 billion .
 June 23, 2011: As part of the largest single firm aircraft order in aviation history, AirAsia announced that it
has selected CFM International’s advanced LEAP engine to power 200 Airbus A320neo aircraft.
 June 22, 2011: Republic Airways Holdings, the parent company of U.S.-based Frontier Airlines, announced
that it has select CFM International’s advanced LEAP-X1A to power a total of 80 Airbus A320neo aircraft.
The engine order is valued at more than $2.0 billion U.S. at list price.
 June 21, 2011: CIT Group Inc. (NYSE: CIT) announced from the 49th International Paris Air Show that CIT
Aerospace placed an order for CFM International’s LEAP-X1A engine to power 15 Airbus A320neo aircraft.
 June 20, 2011: GE Capital Aviation Services (GECAS) announced that it has selected CFM International’s
advanced LEAP engine to power 60 new Airbus A320neo aircraft scheduled to begin delivery in 2016. The
engine order is valued at $1.4 billion U.S. at list price.
Company Name Safran SA

Country FRANCE Management
Currency EUR Jean-Paul Herteman Chairman
Market Price 28 Ross Lachlan McInnes Executive VP & CFO

Dominique-Jean Chertier Member Mgmt Board
Xavier Lagarde Member Mgmt Board
N.F.D. (€ Mln)@12/31/2011 1.014
Sales 11.028 11.658 5,7%
Ebitda 1.526 1.591 4,3%
Shareholders Ebit 951 929 -2,3%
FRENCH STATE 30,20% Net Income 207 478 130,9%
NATIXIS ASSET MANAGE 6,16% Ebitda % Sales 13,8% 13,6%
CLUB SAGEM 4,98% Ebit % Sales 8,6% 8,0%
SAFRAN SA 1,86% Net Income % Sales 1,9% 4,1%
ASTON CAPITAL PARTNE 1,83%
HARTFORD INVESTMENT 1,57%
VANGUARD GROUP INC 1,29% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
FIDELITY INTERNATION 0,58% Total Assets 18.511 20.702 11,8%
FIDELITY MANAGEMENT 0,47% of which Net Fixed Assets 2.253 2.486 10,3%
BLACKROCK GROUP LIMI 0,36% N.F.D. -11 1.014 n/a
Market 50,70% Tot Equity 4.705 5.122 8,9%

Revenues Breakdown
Revenues EBIT* EBIT MARGIN Revenues*

Aerospace Propulsion 5.604 6.110 663 931 12% 15% France 2.798 2.909
Aircraft Equipment 2.834 3.097 125 202 4% 7% Europe (Excl. France) 2.811 2.768
Defense 1.240 1.264 55 51 4% 4% North America 2.739 3.126
Security 1.041 1.249 124 116 12% 9% Asia 1.332 1.821
Other 41 16 -102 -140 -249% -875% Rest of World 1.080 1.022
Total segments 10.760 11.736 865 1.160 8% 10% Total geographic areas 10.760 11.646
*Excludes Other Revenues
Overhead Costs and Other 0 0 86 -231
Group's Result 11.028 11.658 951 929 9% 8%
Security Asia
11% 15%
North America
Defense
27% Rest of World
11%
Aerospace 9%
Propulsion
52%
Aircraft
Equipment
26% France
Europe (Excl.
25%
France)
24%
Analysis of Results
 Safran Group’s consolidated revenues, for the year 2011, reached € 11.6 billion, showing a 5.7% increase compared to €
11 billion in the previous fiscal year.
 Revenue for the Aerospace Propulsion business came in at €6.1 billion in 2011, up 9% (5.8% like-for-like) on 2010.
Revenue growth reflects the ramp-up of service activities for CFM engines, high-thrust civil engines and helicopter
turbine engines, along with the rise in original equipment deliveries.
 The Aircraft Equipment segment reported revenue totaling €3.1 billion in 2011, up 9.3%, or 8.7% like-for-like, on 2010.
Revenue gains were powered mainly by double-digit growth in nacelles, wheels and brakes, original equipment and
services.
 Revenue for the Defence business came in at €1.3 billion in 2011, up 1.9%, or 2.7% like-for-like, compared to 2010. The
advance was mainly driven by double-digit revenue growth in the optronics business buoyed by a robust order backlog
(Felin integrated equipment suites for the French Armed Forces, long-range infrared goggles for export markets).
 The Security business delivered a 20% increase in revenue year on year, at €1.2 billion. Like-for-like, revenue advanced
9.6%, spurred by a bullish year for e-documents, particularly in the banking and telecommunications sectors in Latin
America, and by a robust performance from the identity systems business in emerging countries.
Analysis of Results
 Group’s consolidated EBIT fell 2.3% to €929 million in 2011 from €951 million in 2010.
 The EBIT of the Aerospace Propulsion showed a 40.4% increase. This improvement results from upbeat activity in
the civil aviation aftermarket and the ramp-up of recent Support-By-The-Hour maintenance contracts for helicopter
engines, as well as from increased unit revenue on CFM56 engines Performance was also driven by the Safran+ cost-
cutting program despite higher R&D costs, chiefly for Leap engines. Currency hedging had a positive impact on
profitability.
 Aircraft Equipment reported a strong increase in EBIT for 2011 to € 202 million. This strong advance was driven by
the expected upturn in the nacelles business, which reported a profit for the first time in many years, and by a
favorable product mix and volume effect for harnesses and landing systems.
 Defence EBIT also showed a decline, totaling € 51 million in 2011. The improvement in 2011 was powered by the
optronics business that performed well, aided by the favorable product mix and volume effect.
 Security segment’s EBIT climbed 9% in 2011. The rise in profitability reflects high-margin identity solution contracts
as well as a favorable product and volume mix for the e-documents business.
 Group’s Net Income in 2011 showed a strong growth 131% to € 478 million.
281
L-3 Communications
L-3 Communications – USA 282
Description
 L-3 Communications (L-3) is a prime system contractor in aircraft modernization and maintenance, Command,
Control, Communications, Intelligence, Surveillance and Reconnaissance (C3ISR) systems, and government
services. L-3 is also a leading merchant supplier of high technology products and systems. The Group operates
through the following units:
 C³ISR: provides products and services for the global Intelligence, Surveillance and Reconnaissance market,
specializing in signals intelligence (SIGINT) and communications intelligence (COMINT) systems. These
products and services provide the ability to collect and analyze unknown electronic signals from command
centers, communication nodes and air defense systems for real-time situation awareness and response.
Products and services are used to connect a variety of airborne, space, ground and sea-based
communication systems and are used in the transmission, processing, recording, monitoring and
dissemination functions of these communication systems.
 GOVERNMENT SERVICES: provides a full range of engineering, technical, advisory, training and
support services to the DoD and U.S. Government intelligence agencies and allied foreign governments.
 AIRCRAFT MODERNIZATION AND MAINTENANCE (AM&M): provides modernization, upgrades
and sustainment, maintenance and logistics support services for military and various government aircraft
and other platforms. The Group sells these services primarily to the DoD, the Canadian Department of
National Defense and other allied foreign governments.
 ELECTRONIC SYSTEM: comprises from individual components and subsystems through fully
integrated systems and platform solutions: avionics and displays, security and detection, microwave and
RF, SATCOM and antennas, sensors and simulation, and marine and power.
 July 24, 2012: L-3 Communications announced that it has been awarded a contract with a one-year base
period and four one-year options, with an estimated contract value of $1.98 billion, from the U.S. Army
Contracting Command.
 April 11, 2012: L-3 Communications announced that it has entered into an agreement to acquire the assets
of Thales Training & Simulation Ltd’s civil aircraft simulation and training business.
 April 2, 2012: L-3 Communications announced that its L-3 Unidyne division has been awarded two firm-
fixed-price contracts valued at $52 million to execute the U.S. Navy’s FY11 and FY12 Service Life
Extension Program (SLEP) efforts for the Landing Craft Air Cushion (LCAC).
 December 13, 2011: L-3 Communications announced that it has entered into an agreement to acquire the
Kollmorgen Electro-Optical (KEO) unit of Danaher Corporation. KEO develops and manufactures
specialized equipment, including submarine photonics systems and periscopes, ship fire control systems,
visual landing aids, ground electro-optical and sensor-cueing systems.
 October 3, 2011: L-3 Receives $44.8 Million TSA Order for Its Innovative ProVision(R) ATD Image-Free
Personnel Screening System .
 June 28, 2011: L-3 Communications announced that its Platform Integration division has been
competitively awarded an approximately $104 million contract to perform aircraft sustainment for the U.S.
Navy's fleet of P-3, EP-3 and NP-3 aircraft.
 May 23, 2011: L-3 Communications announced that its Systems Field Support (SFS) division has been
awarded contracts with a total potential value of more than $300 million over five years from the U.S. Navy
(USN) and U.S. Air Force (USAF) to provide full Contractor Logistics Support (CLS) for their respective
fleets of C-12 aircraft.
L-3 Communications
Company Name
Holdings In

Currency USD
Management
Market Price 73
Michael T. Strianese Chairman & CEO
Ralph G. D'Ambrosio Senior Vice President & CFO
Market Cap (€ Mln) 5.446 Steven M. Post Senior VP, Secy & General Counsel
N.F.D. (€ Mln)@12/31/2011 2.593
Ebitda 1.528 1.457 -4,7%
Shareholders
Ebit 1.350 1.266 -6,2%
Net Income 737 738 0,1%
CLEARBRIDGE ADVISORS 5,44% Ebitda % Sales 13% 12%
LSV ASSET MANAGEMENT 4,24% Ebit % Sales 11% 11%
STATE STREET CORP 3,97% Net Income % Sales 6,1% 6,3%
LONGVIEW PARTNERS (G 3,73%
LAPENTA ROBERT V 3,73%
Total Assets 11.921 11.957 0,3%
BANK OF NEW YORK MEL 3,35% of which Net Fixed Assets 712 721 1,2%
BLACKROCK INSTITUTIO 3,03% N.F.D. 2.724 2.593 -4,8%
ARTISAN PARTNERS HOL 2,83% Tot Equity 5.289 5.188 -1,9%
PUTNAM INVESTMENT MA 2,78%
Market 61,09%
Revenues Breakdown

C3ISR 2.564 2.753 302 316 12% 11% U.S. 10.606 10.079
Government Services 3.029 2.794 264 216 8,7% 7,7% Canada 235 253
AM&M 2.146 1.882 177 179 8% 10% UK 178 239
Electronic Systems 4.359 4.274 608 555 14% 13% Germany 166 190
Total segments 12.098 11.703 1.350 1.266 11% 11% Australia 127 91
Intersegment and Other 0 0 0 0 0% 0% Italy 52 76
Group's Result 12.098 11.704 1.350 1.266 11% 11% China 77 72
Other 656 704
C3ISR C3ISR
23% 21%
Electronic Electronic
Systems Systems
37% 35%
Government
Services
Government 25%
AM&M AM&M
Services
17% 19%
23%
Analysis of Results
 In 2011, consolidated net sales decreased compared to 2010 at € 11.7 billion.
 C3ISR net sales for the year ended December 31, 2011 increased by 7%, compared to the year ended December 31,
2010. This increase was primarily due to increased volume and new business for networked communication systems for
manned and unmanned platforms, airborne ISR logistics support and fleet management services to the DoD, and
international airborne ISR platforms. These increases were partially offset primarily by lower sales for airborne ISR
platforms to the DoD and force protection products to foreign ministries of defense.
 Government Services net sales for the year ended December 31, 2011 decreased by 8%, compared to the year ended
December 31, 2010. The decrease in sales was due to: (1) $124 million primarily related to the loss of the Afghanistan
MoD support contract and the FAA IT support services contract, (2) $118 million in lower linguist services, training,
intelligence support, and logistics support services for the U.S. Army due to the drawdown of U.S. military forces from
Iraq, (3) $75 million in reduced SSES pass-through volume, (4) $51 million of lower sales related to the SBInet program
for the U.S. Department of Homeland Security and an international maritime security enhancement program, and (5)
$42 million for IT support services for the U.S.
 AM&M net sales for the year ended December 31, 2011 decreased by 12%, compared to the year ended December 31,
2010. The decrease was primarily the result of $332 million from the SOFSA contract loss, $75 million from lower JCA
volume, and $35 million due to lower sales for MHP, partially offset by increased CLS services for U.S. Army C-12
aircraft.
 Electronic Systems net sales for the year ended December 31, 2011 decreased by 2%, compared to the year ended
December 31, 2010, reflecting lower sales of: (1) $376 million due to declining DoD demand for night vision products,
combat propulsion systems, mobile satellite communication systems and simulation & training devices, (2) $40 million
due to lower manufacturing yields for power devices for satellite communications systems, and (3) $9 million from the
sale of a general aviation product technology license in the 2010 fourth quarter that did not recur in the 2011 fourth
quarter.
Analysis of Results
 Consolidated EBIT for 2011 decreased by 6.2%, to € 1.3 billion compared to 2010.
 C3ISR operating income for 2011 increased by 5%, compared to 2010; Government Services operating income for
2011 decreased by 18%; AM&M operating profit for 2011 increased by 1.2% versus 2010 and operating income for
Electronic Systems decreased by 9%
 In 2011, Net Income remained stable to € 738 million compared to previous FY.
Players with revenues between € 10 billion and € 1 billion 288
 Listed below are the Aerospace & Defence global market’s players that, in the latest available annual financial
statement, reported revenues between € 10 billion and € 1 billion:
GOODRICH CORP 6.230

HUNTINGTON INGALLS INDUSTRIE 5.073
EMBRAER SA 4.080
SPIRIT AEROSYSTEMS HOLD-CL A 3.753
ROCKWELL COLLINS INC 3.708
ALLIANT TECHSYSTEMS INC 3.559
DASSAULT AVIATION SA 3.305
MTU AERO ENGINES HOLDING AG 2.932
ZODIAC AEROSPACE 2.735
SAAB AB-B 2.635
TRIUMPH GROUP INC 2.629
BBA AVIATION PLC 2.564
COBHAM PLC 2.225
KONGSBERG GRUPPEN ASA 1.954
B/E AEROSPACE INC 1.929
QINETIQ GROUP PLC 1.763
MEGGITT PLC 1.746
AAR CORP 1.593
CURTISS-WRIGHT CORP 1.585
TELEDYNE TECHNOLOGIES INC 1.498
CAE INC 1.376
ESTERLINE TECHNOLOGIES CORP 1.326
XI'AN AIRCRAFT INTL CORP-A 1.088
ORBITAL SCIENCES CORP 1.038
Players with revenues between € 10 billion and € 1 billion 289
 The following table includes share market price (and percent variation over 3, 6 and 12 months), Market Cap, Net
Financial Debt and EV for players belonging to the first group.

Market Cap Market Cap Local EV
Local Currency (€ Mln) Currency (€ Mln)
GOODRICH CORP * USD 125,92 125,92 16.052 12.258 1.091,0 13.349 2 1 50
HUNTINGTON INGALLS INDUSTRIE USD 41,9 49,51 2.076 1.585 728,3 2.314 9 11 46
EMBRAER SA BRL 14,3 740,47 10.618 4.030 -352,5 3.678 4,9 3,7 26,8
SPIRIT AEROSYSTEMS HOLD-CL A USD 23,8 119,50 2.840 2.169 789,4 2.958 3,3 -6 42
ROCKWELL COLLINS INC USD 53,1 142,15 7.550 5.765 -1,5 5.764 8,2 -10 -6
ALLIANT TECHSYSTEMS INC USD 51,2 32,67 1.671 1.276 565,7 1.842 12,5 -5,5 -14,5
DASSAULT AVIATION SA EUR 694,0 10,13 7.027 7.027 -207,8 6.820 0 0 2
MTU AERO ENGINES HOLDING AG EUR 61,3 52,00 3.188 3.188 18,7 3.206 5,5 2 28
ZODIAC AEROSPACE EUR 82,5 56,87 4.692 4.692 585,4 5.277 5 4 46
SAAB AB-B SEK 128,5 107,24 13.781 1.596 -530,9 1.065 15,5 -1 3
TRIUMPH GROUP INC USD 61,1 49,93 3.050 2.329 871,2 3.200 11 -5 19
BBA AVIATION PLC GBp 207,6 479,47 995 1.233 326,1 1.559 -3 -4 21
COBHAM PLC GBp 231,3 1.078,58 2.495 3.090 279,0 3.369 0,8 4 28
KONGSBERG GRUPPEN ASA NOK 112,5 120,00 13.500 1.805 -283,0 1.522 0,9 -5 9
B/E AEROSPACE INC USD 41,6 103,97 4.323 3.301 726,8 4.028 -3 -13 26
QINETIQ GROUP PLC GBp 175,5 660,48 1.159 1.436 156,5 1.592 20,7 17 48
MEGGITT PLC GBp 413,1 784,12 3.239 4.013 946,0 4.959 13 1 29
AAR CORP USD 17,1 40,17 686 524 559,1 1.083 65 -22 -17
CURTISS-WRIGHT CORP USD 32,5 46,95 1.524 1.164 302,5 1.467 7 -14 9
TELEDYNE TECHNOLOGIES INC USD 64,9 36,82 2.388 1.824 203,2 2.027 4 6 22
CAE INC CAD 10,5 258,71 2.717 2.133 403,6 2.536 8 3 3
ESTERLINE TECHNOLOGIES CORP USD 58,95 30,86 1.819 1.389 657,0 2.046 -5 -12 -3
XI'AN AIRCRAFT INTL CORP-A CNY 7,72 2.477,62 19.127 2.311 -81,1 2.230 -7 -10 -20
ORBITAL SCIENCES CORP USD 15,0 59,03 887 678 -98,8 579 22,3 10,8 5,5
* Data refer to 26/07/2012, after that the company has been delisted
290
Goodrich Co.
Goodrich Co. – USA 291
Description
 The Goodrich Group is one of the largest worldwide suppliers of components, systems and
services to the commercial and general aviation airplane markets. It is also a leading supplier of
systems and products to the global defense and space markets. It operates on a global basis with
manufacturing, service and sales undertaken in various locations throughout the world. Its products
and services are principally sold to customers in North America, Europe and Asia. Group’s activity
can be divided in the following business lines:
 ACTUATION AND LANDING SYSTEMS: produces products associated with aircraft
engines, including cowlings and their components, fuel delivery systems, and structural and
rotating components. The business also provides maintenance, repair and overhaul services
and electronic control software and hardware.
 NACELLES AND INTERIOR SYSTEMS: provides systems and components pertaining to
aircraft taxi, take-off, flight control, landing and stopping, and airframe maintenance. The
business also produces aircraft equipments, provides overhauls and repairs as well as full
technical and aircraft on ground support and heavy airframe maintenance.
 ELECTRONIC SYSTEMS: produces a wide array of systems and components that provide
flight performance measurements, flight management and control and safety data.
 July 26, 2012: United Technologies Corp. announced it has reached agreement to purchase Goodrich
Corporation for $127.50 per share in cash. This equates to a total enterprise value of $18.4 billion, including
$1.9 billion in net debt assumed. Goodrich and Hamilton Sundstrand have combined to form UTC Aerospace
Systems.
 July 10, 2012: Goodrich Signs Agreement with SYPAQ to Represent DB-110 Surveillance System in Australia.
 May 2, 2012: Goodrich Delivers First Composite Sail Cusp for Virginia Class Submarine.
 April 2, 2012: Goodrich Corporation has signed a nacelle services agreement with LOT Polish Airlines for
support of the nacelles and thrust reversers for the airline's fleet of Embraer 195 aircraft powered by CF34-10E
engines.
 November 16, 2011: Boeing Selects Goodrich for Boeing C-17 Globemaster III Landing Gear System Overhaul
Services.
 November 14, 2011: Goodrich Corporation has signed two significant support agreements with Emirates. The
first is a General Terms Agreement (GTA) which provides the framework for all future maintenance, repair and
overhaul (MRO) agreements between Emirates and Goodrich. The second represents the first application of
this GTA.
 June 20, 2011: Goodrich Corporation has been selected by KLM, transavia.com to supply wheels and carbon
brakes for all new Boeing 737 Next Generation aircraft deliveries and to retrofit 737 NG in-service aircraft.
 June 17, 2011: Goodrich Corporation has been selected to supply wheels and carbon brakes on Saudi Arabian
Airlines' fleet of 12 new Boeing 777-300ER aircraft.

Sales 5.375 6.230 15,9%
Ebitda 986 1.270 28,7%
Company Name Goodrich Corp
Ebit 770 1.031 33,8%
Country UNITED STATES Net Income 446 625 40,0%
Currency USD Ebitda % Sales 18% 20%
Market Price 127 Ebit % Sales 14% 17%
Number of Outstanding Shares (Mln) 126 Net Income % Sales 8,3% 10,0%
N.F.D. (€ Mln)@12/31/2011 1.091 Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Enterprise Value (€ Mln) 13.429 Total Assets 7.153 8.266 15,6%
Source: Bloomberg @ 26/07/2012* of which Net Fixed Assets 1.174 1.260 7,3%
N.F.D. 1.203 1.091 -9,3%
Tot Equity 2.614 2.884 10,4%
* At this date the company has been delisted due to the acquisition by United Technologies Corp. For this reason the
shareholders and management board are not reported.
Revenues Breakdown

Actuation and Landing Systems 1.922 2.272 211 288 11% 13% USA 2.710 3.087
Nacelles and Interior Systems 1.805 2.158 429 563 24% 26% Europe 1.796 2.107
Electronic Systems 1.648 1.800 251 302 15% 17% Asia Pacific 452 190
Total segments 5.375 6.230 890 1.153 17% 19% Canada 248 492
Intersegment and Other 0 0 -120 -122 Rest of World 169 354
Group's Result 5.375 6.230 770 1.031 14% 17% Total geographic areas 5.375 6.230
Rest of World
6%
Canada
Electronic Systems 8%
29% Asia Pacific
Actuation and 3%
Landing Systems
36%
USA
49%
Nacelles and Europe

Interior Systems 34%
35%
Analysis of Results
 Group net sales for the 2011 were € 6.2 billion, increasing by 16% when compared to the previous fiscal year.
 Actuation and Landing Systems segment’s sales increased by 18.2% to € 2.2 billion, due primarily to large
commercial airplane OE sales of approximately $156 million, large commercial, regional, business and general
aviation airplane aftermarket sales of approximately $115 million, higher defense and space OE and aftermarket
sales of approximately $86 million, regional, business and general aviation airplane OE sales of approximately $36
million across all businesses and plus other aerospace and non-aerospace sales of approximately $61 million.
 Nacelles and Interior Systems’ were up by 19.5% due to large commercial OE and large commercial, regional,
business and general aviation airplane aftermarket sales, primarily in aerostructures and interiors business
 Electronic Systems’ sales were up by 9.2% due to higher defense and space OE , large commercial, regional,
business and general aviation airplane aftermarket sales, primarily in sensors and integrated systems and engine
controls and electrical power businesses
 In 2011, Group EBIT was € 1 billion, rising 33.8% from the previous fiscal year.
 Actuation and Landing Systems segment’s EBIT increased by 36.7% due to sales volume and favorable product mix
across all businesses, favorable pricing partially offset by higher operating costs and favorable foreign exchange.
 Nacelles and Interior Systems’ EBIT was up by 31.3% thanks to higher sales volume and favorable product mix,
primarily in aerostructure and interior activity and favorable pricing and lower operating costs.
 Electronic Systems’ operating income increased by 20.3% in 2011 due to higher sales volume and favorable product
mix across all businesses.
 Group’s Net Income for fiscal year 2011 was € 625 million, increasing by 40% from the previous FY.
296
Huntington Ingalls Industries Inc.

Huntington Ingalls Industries – USA 297
Description
 Huntington Ingalls Industries (HII) designs, builds and maintains nuclear and non-nuclear ships for the U.S.
Navy and Coast Guard and provides after-market services for military ships around the globe. For more than a
century, HII has built more ships in more ship classes than any other U.S. naval shipbuilder. Its primary
business divisions are:
 NEWPORT NEWS SHIPBUILDING (NNS) - a division of Huntington Ingalls Industries, is the
nation's sole-industrial designer, builder and refueler of nuclear-powered aircraft carriers and one of the
only two shipyards capable of designing and building nuclear-powered submarines. It has three
subsidiaries:
 NEWPORT NEWS INDUSTRIAL (NNI), a subsidiary of Huntington Ingalls Industries, is an
outgrowth of Newport News Shipbuilding's participation in the construction of Navy nuclear
plant prototypes.
 NEWPORT NEWS NUCLEAR (NNN), Inc., a subsidiary of Huntington Ingalls Industries
(HII), was formed to provide the Department of Energy with the excellence in nuclear operations
and program management that HII's Newport News Shipbuilding division has delivered to the
U.S. Naval Nuclear Propulsion Program for more than 50 years.
 NEWPORT NEWS ENERGY (NNE), a subsidiary of Huntington Ingalls Industries, was
formed in 2008 to expand Newport News Shipbuilding's role in the commercial nuclear and
alternative energy markets.
 INGALLS SHIPBUILDING - a division of Huntington Ingalls Industries, builds highly capable
warships for the surface Navy fleet, U.S. Coast Guard, U.S. Marine Corps and foreign and commercial
customers. It has two subsidiaries:
 AMSEC LLC, a subsidiary of Huntington Ingalls Industries, is a full-service supplier to the U.S.
Navy and commercial maritime industry.
 Continental Maritime San Diego (CMSD), a subsidiary of Huntington Ingalls Industries, is a
certified Master Ship Repair Contractor for the U.S. Navy.
 July 27, 2011: The U.S. Navy today awarded Huntington Ingalls Industries a $1.5 billion fixed-price incentive
contract for the detail design and construction of the amphibious transport dock LPD 27. The ship will be built
at the company's Ingalls Shipbuilding division.
 February 27, 2012: Huntington Ingalls Industries announced today that its Ingalls Shipbuilding division has
received a $70 million cost-plus-fixed-fee advance procurement contract modification from the U.S. Navy to
provide long-lead materials for LPD 27, the 11th amphibious transport dock of the USS San Antonio (LPD 17)
class
 December 21, 2011: Huntington Ingalls Industries announced that its Newport News Shipbuilding (NNS)
division has received a $113 million contract from the U.S. Navy to continue ship and propulsion plant design
engineering and engineering services for the aircraft carrier John F. Kennedy (CVN 79).
 December 2, 2011: Huntington Ingalls Industries announced that the company's Ingalls Shipbuilding division
has been awarded an advance procurement contract for work on the U.S. Navy's third Zumwalt-class destroyer,
DDG 1002. The contract is valued at $46 million.
 October 31, 2011: Huntington Ingalls Industries announced that the company's Ingalls Shipbuilding division
has been awarded a $13 million contract for continued work on the U.S. Navy's Zumwalt (DDG 1000) class of
destroyers.
 September 30, 2011: Huntington Ingalls Industries, Inc. announced that its Newport News Shipbuilding (NNS)
division has been awarded a contract by Bechtel Marine Propulsion Corp. (BMPC) to provide maintenance
services at the Kenneth A. Kesselring Site in West Milton, N.Y., a research and development facility that
supports the U.S. Navy's Nuclear Propulsion Program.
 September 26, 2011: Huntington Ingalls Industries, Inc. announced that its Ingalls Shipbuilding division was
awarded a $697.6 million fixed-price incentive.
Huntington Ingalls
Company Name
Industries
Management
Currency USD
Thomas Fargo Chairman
Market Price 42
C Michael Petters President & CEO
Barbara Niland CFO
N.F.D. (€ Mln)@12/31/2011 728 Income Statement (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
Source: Bloomberg @ 14/09/2012 Ebitda 333 451 35,5%
Shareholders Ebit 191 309 61,3%
PENNANT CAPITAL MANA 8,78% Net Income 104 -73 -169,6%
STATE STREET CORP 8,63% Ebitda % Sales 6% 8,9%
FRANKLIN RESOURCES I 7,67% Ebit % Sales 3,7% 6,1%
HOTCHKIS & WILEY CAP 5,66% Net Income % Sales 2,0% -1,4%
GREENLIGHT CAPITAL I 5,13% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
SOUTHPOINT CAPITAL A 5,05% Total Assets 4.014 4.630 15,3%
METROPOLITAN WEST CA 3,86% of which Net Fixed Assets 1.541 1.569 1,8%
ETON PARK CAPITAL MA 3,55% N.F.D. 633 728 15,1%
BLACKROCK INSTITUTIO 2,52% Tot Equity 1.094 673 -38,5%
Market 43,79%
Revenues Breakdown

Ingalls 2.335 2.226 -47 -170 -2,0% -7,6%
Newport News 2.913 2.906 274 264 9% 9%
Total segments 5.248 5.132 227 94 4% 1,8%
Group's Result 5.187 5.073 191 309 3,7% 6,1%
Revenues fiscal year 2011 - Segment Revenues fiscal year 2010 - Segments
Ingalls Ingalls
43% 45%
Newport News
57% Newport News
55%
Analysis of Results
 Group net sales for the 2011 were € 5.1 billion, decreasing by 2.2% compared the previous fiscal year.
 Ingalls revenues decreased by 5%, compared to 2010. The decrease was primarily driven by lower revenues in
Surface Combatants, partially offset by higher revenues in Amphibious Assault Ships programs and the NSC
program.
 Newport News revenues remained stable to € 2.9 billion in 2011. Lower revenues in Aircraft Carriers and Fleet
Support were offset by higher revenues in Submarines
 In 2011, Group EBIT was € 309 million, rising 61.3% from the previous fiscal year.
 Ingalls operating loss was € 170 million compared to a loss of € 47 million in 2010. The higher loss was primarily the
result of the 2011 goodwill impairment charge previously described, partially offset by the 2010 $113 million pre-tax
charge resulting from our decision to wind down shipbuilding operations at our Avondale facility and the charges
and adjustments recorded in the third quarter of 2010
 Newport News operating income was € 264 million compared to € 274million in 2010. The decrease was primarily
due to higher revenues on lower margin programs and risk retirement on the CVN-70 USS Carl Vinson and the
CVN-77 USS George H.W. Bush that occurred in 2010, partially offset by risk retirement on the SSN-774 Virginia-
class submarine program in 2011.
 Group’s Net Loss for fiscal year 2011 recorded to €73 million, decreasing by 169% from the previous FY.
302
EMBRAER
EMBRAER - Brazil 303
Description
 Embraer is one of the largest aircraft manufacturers in the world focusing on specific market segments
with high growth potential in commercial, defense, and executive aviation. The Group develops and adapts
successful aircraft platforms and judiciously introduces new technology whenever it creates value by
lowering acquisition price, reducing direct operating costs, or delivering higher reliability, comfort, and
safety. Embraer’s operations are focused on four strategic business segments:
 COMMERCIAL AVIATION: the two segments specialize in commercial aviation products. Since
1996, Embraer has produced and delivered more than 1000 ERJs to more than 37 airlines in 24
countries. Embraer’s family of four E-Jets are aircraft specifically designed for the 70 to 120-seat
capacity segment. Depending on the combination of models, they can share up to 100 percent parts
commonality.
 EXECUTIVE AVIATION: The launch of the Legacy 600 jet in 2000 marked the entrance of
Embraer into the Executive Aviation market. Aircraft in this segment include the Phenom 100 and
300, the Legacy 450, 500 and 600 executive jets and the Lineage 1000 jet
 DEFENCE AND GOVERNMENTAL AVIATION: The product portfolio in this segment
contains aircraft for several different purposes: Intelligence, Surveillance and Reconnaissance (ISR);
training and combat; and official civilian and military transportation.
 OTHER AVIATION ACTIVITIES: Embraer offers aircraft maintenance, replacement parts and
training services.
 July 31, 2012: Embraer announced an agreement with Venezuela’s Conviasa Airlines for the sale of six
EMBRAER 190 jets. The deal also includes 14 purchase options for the same aircraft model. The value of the
order, at list price, is USD 271.2 million, based on January 2012 economic conditions.
 June 12, 2012: Embraer S.A. and Zodiac Aerospace reached an agreement to set up a joint venture to manufacture
cabin interior parts for the EMBRAER 170/190 family of jets.
 April 9, 2012: Embraer S.A. and Boeing announced a cooperation agreement to work together to benefit their
customers, their companies and the global aviation industry.
 March 22, 2012: Embraer, Boeing and Airbus today signed a memorandum of understanding to work together on
the development of drop-in, affordable aviation biofuels.
 December 30, 2011: The U.S. Air Force announced that it has selected the A-29 Super Tucano, produced by
Embraer Defense and Security, for the Light Air Support (LAS) program.
 September 8, 2011: Embraer Defense and Security and AEL Sistemas, a subsidiary of Israel’s Elbit Systems Ltd.,
formalized a partnership to create a new company, Harpia Sistemas S.A., to focus on the unmanned aerial systems
(UAS) market.
 June 20, 2011: Sriwijaya Air, of Jakarta, Indonesia, has signed an agreement subject to final documentation for the
acquisition of 20 EMBRAER 190 jets, with purchase rights for ten more aircraft. The total value of the deal, at list
price, is USD 856 million, based on January 2011 economic conditions.
 April 12, 2011: Embraer S.A. signed a framework agreement with AVIC (Aviation Industry Corporation of China)
aiming to implement a Legacy 600/650 production line in China, using the infrastructure, financial resources and
workforce of their joint venture company Harbin Embraer Aircraft Industry Company (HEAI).
 March 21, 2011: Embraer and Alitalia have finalized an agreement for the delivery of 15 EMBRAER 175 and 5
EMBRAER 190 jets through a lease structure to be arranged by third parties. The delivery of the new E-Jets is
scheduled to begin in the third quarter 2011.
Company Name Embraer SA
Country BRAZIL Management

Currency BRL Alexander Goncalves Silva Chairman
Market Price 14 Hermann Heinemann Wever Vice Chairman
Number of Outstanding Shares (Mln) 740 Frederico Pinheiro Fleury Curado President & CEO
Market Cap (€ Mln) 4.395 Jose Antonio De Almeida CFO
N.F.D. (€ Mln)@12/31/2011 -353
Shareholders Ebitda 717 382 -46,7%
CAIXA DE PREVIDENCIA 9,03% Ebit 558 216 -61,2%
OPPENHEIMERFUNDS INC 8,44% Net Income 513 65 -87,4%
THORNBURG INVESTMENT 7,00%
Ebit % Sales 14,3% 5,3%
BNDES PARTICIPACOES 5,37%
BLACKROCK INC 5,13%
CIA BOZANO 4,31%
EMBRAER 2,08%
Total Assets 5.022 6.878 37,0%
of which Net Fixed Assets 825 1.126 36,5%
VANGUARD GROUP INC 0,83% N.F.D. 29 -353 n/a
BLACKROCK GROUP LIMI 0,72% Tot Equity 2.152 2.421 12,5%
Market 55,02%
Revenues Breakdown

Commercial Aviation 2.360 2.598 275 102 12% 4% Europe 1.273 1.029
Executive Aviation 876 779 124 39 14% 5% Asia Pacific 870 945
Defense & Government 595 596 101 57 17% 10% Latam 601 539
Other 54 86 58 24 106% 28% North America 520 830
Total segments 3.885 4.059 558 223 14% 5% Commercial Aviation 496 679
Intersegment and Other 21 21 0 -7 Rest of World 147 60
Group's Result 3.906 4.080 558 216 14% 5% Total geographic areas 3.906 4.080
Other Rest of World
Defense & 2% 2% Europe
Government
15% Commercial 25%
Aviation
17%
Executive North
Aviation America
19% Commercial 20% Asia Pacific
Aviation 23%
64%
Latam
13%
Analysis of Results
 In 2011, Group’s revenues experenced a 4.5% growth, to € 4.1 billion from € 3.9 billion.
 Commercial Aviation’s revenues increased by 10% compared to 2010. The increase was primarily a consequence of
increased deliveries in this segment in 2011, coupled with a better product mix.
 The Executive Aviation segment’s revenues decreased by 11% as a result of the continued pressures faced in this
segment throughout 2011, which resulted in a reduction of 31.3% in deliveries of executive jets in 2011, or 45 jets, to
99 executive jets in 2011.
 Defense and security revenues remained stable to €596 million, primarily as a result of the mix of revenues from the
business.
 Other Aviation Activities segment reported a growth in revenues of 59% primarily due to the KC-390.
 Group’s EBIT, in 2011, decreased by 61.2%, to €216 million.
 Group’s Net Income for fiscal year 2011 was € 65 million, a 87.4% decrease on 2010’s net income of € 513 million.
308
Spirit Aerosystems
Spirit Aerosystems – USA 309
Description
 Spirit AeroSystems, Inc. is the world’s largest independent non-OEM designer and manufacturer of
aerostructures and the largest independent supplier of such major aircraft components. The Group
operates both in the commercial (aerostructures for business and commercial jet) and in the military
market (main customers are the US Government and the Department of the Defense); the Group
finally supplies its customers with aftermarket support, including spare parts and repair services.
Group’s activities can be divided in the following segments:
 FUSELAGE SYSTEMS: designing, engineering, manufacturing, marketing and support of

aircraft forward, mid- and rear fuselage sections;
 PROPULSION SYSTEMS: design, engineering and manufacturing of the aerodynamic
structures for jetliner engines (nacelles) and those connecting engine to the aircraft wing (struts
and pylons);
 WING SYSTEMS: designing, engineering and manufacturing of aircraft wings, wing
components and flight control Surfaces.
 July 9, 2012: Spirit AeroSystems, Inc. and China Airlines announced the signing of a supply
agreement whereby Spirit Aftermarket Customer Support (ACS) will provide thrust reverser, fuselage,
and wing component spare parts for China Airlines' fleet of Boeing aircraft.
 April 4, 2012: Spirit AeroSystems, Inc. and Europe Airpost (a branch of ASL Aviation Group)
announced the signing of a supply agreement whereby Spirit Aftermarket Customer Support (ACS)
will provide thrust reverser, fuselage, and wing component spare parts for Europe Airpost's fleet of
Boeing 737 Classic and Next-Generation aircraft.
 December 16, 2011: Spirit AeroSystems, Inc. and Skymark Airlines Inc. announced the signing of a
supply agreement whereby Spirit Aftermarket Customer Support (ACS) will provide thrust reverser,
fuselage, and wing component spare parts for Skymark Airlines's fleet of Boeing 737NG aircraft. This
multi-year contract will enable Skymark Airlines to obtain predictable and competitive pricing for all
parts in the Spirit catalog while ensuring availability for key parts and components.
 June 3, 2011: Spirit AeroSystems, Inc. and Air Europa Lineas Aereas, S.A.U announced the signing of
a supply agreement whereby Spirit will supply thrust reverser, fuselage and wing components for Air
Europa's fleet of Boeing 737 and 767 aircraft. This multi-year contract will enable Air Europa to
obtain predictable and competitive pricing for all spare parts in the Spirit catalog while ensuring
availability for key parts and components. Air Europa currently operates 25 Boeing 737NG airplanes
and two Boeing 767 airplanes.
 May 20, 2011: Spirit AeroSystems, Inc. and Scandinavian Airlines (SAS) announced the signing of a
supply agreement whereby Spirit will supply spare parts for SAS' fleet of Boeing 737 aircraft. This
multi-year contract will enable SAS to obtain predictable and competitive pricing for all 737 parts in
the Spirit catalog while ensuring availability for key parts and components. SAS currently operates 74
Boeing 737 airplanes.
Spirit Aerosystems
Company Name
Holdings In
Country UNITED STATES Management
Currency USD Robert D. Johnson Chairman
Market Price 24 Jeffrey L. Turner President & CEO
Number of Outstanding Shares (Mln) 119 Philip Anderson Sr. VP & CFO
Market Cap (€ Mln) 2.192 John Lewelling Sr. VP
N.F.D. (€ Mln)@12/31/2011 789
Shareholders Ebitda 368 378 2,8%
ARTISAN PARTNERS HOL 8,84% Ebit 275 275 -0,3%
SCOPIA MANAGEMENT IN 6,47% Net Income 169 148 -12,1%
T ROWE PRICE ASSOCIA 5,37% Ebitda % Sales 11,4% 10,1%
ADVISORY RESEARCH IN 4,94% Ebit % Sales 8,6% 7,3%
ADAGE CAPITAL PARTNE 4,47% Net Income % Sales 5,2% 4,0%
BLACKROCK ADVISERS 3,98% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
GOLDMAN SACHS GROUP 3,80% Total Assets 3.936 3.890 -1,2%

OSTERWEIS CAPITAL MA 2,84%
N.F.D. 552 789 43,1%
PIONEER INVESTMENT M 2,62%
Tot Equity 1.397 1.516 8,5%
Market 52,56%
Revenues Breakdown

Fuselage Systems 1.570 1.871 226 246 14% 13% USA 2.835 3.249
Wing Systems 824 932 78 0 9% 0% UK 309 326
Propulsion Systems 819 942 106,1 150 13% 16% Rest of world 75,6 178
Total segments 3.213 3.745 410 396 13% 11% Total geographic areas 3.219 3.753
Intersegment and Other 6 7 -1 1
Group's Result 3.219 3.753 275 275 9% 7%
Propulsion Rest of world

Systems UK 5%
25% 9%
Fuselage Systems
50%
Wing Systems
25%
USA
86%
Analysis of Results
 In 2011, Spirit Aerosystems’ total revenues increased 16.6%, from € 3.2 billion in 2010 to € 3.8 billion.
 The revenues for the Fuselage Systems segment increased 19.2%, compared with the 2010 fiscal year. The increase in
net revenues is due to the recognition of deferred revenue, recognition of revenue from non-recurring work on B787-
9 DMI and revenue for pricing adjustments on prior and current-year deliveries all as a result of the B787
Amendment which was finalized in May 2011.
 Wing Systems’ revenues showed an increase of 13% in 2011, compared to revenues of the prior year. The increase in
net revenues is due to the recognition of deferred revenue, revenue for non-recurring work on the B787-9 DMI and
revenue due to pricing adjustments on prior and current-year deliveries all as a result of the B787 Amendment, which
was finalized in May 2011.
 Revenues from the Propulsion Systems segment were up 15%. The increase in net revenues is due to the increase in
B747 and B777 deliveries, additional aftermarket volume, and higher revenue from non-recurring efforts, which
include design and development efforts.
 In 2011, the group’s EBIT remained stable at € 275 million compared to 2010.
 The operating income of the Fuselage Systems segment was up 9% versus 2010 at € 246 million, Wing Systems’ EBIT
reported a 100% decrease compared to fiscal year 2010 and the Propulsion Systems segment showed a 41.2% EBIT
gain.
 Group’ Net Income, for fiscal year 2011, was € 148 million compared to € 169 million in FY 2010 , decreasing 12.1%.
314
Rockwell Collins
Rockwell Collins – USA 315
Description
 Rockwell Collins, Inc. is a leader in providing design, production and support of communications and
aviation electronics for military and commercial customers worldwide. The Group operates in 2 main
business lines:
 GOVERNMENT SYSTEMS: supplies defense communications and defense electronics systems,
products and services, which include subsystems, displays, navigation equipment and simulation
systems, to the U.S. Department of Defense, other government agencies, civil agencies, defense
contractors and foreign ministries of defense. These systems, products and services support airborne
(fixed wing and rotary), ground and shipboard applications.
 COMMERCIAL SYSTEMS: supplies aviation electronics systems, products and services to
customers located throughout the world. The customer base includes original equipment
manufacturers (OEMs) of commercial air transport, regional and business aircraft, commercial
airlines, and fractional and other business aircraft operators. These systems and products include
flight deck electronic systems and products, including communications, navigation, surveillance,
displays and automatic flight control and flight management systems, as well as in-flight
entertainment, cabin electronics, information management, electro mechanical pilot controls and
actuation and simulation and training.
 The Group operates through several Joint Ventures (JV’s):
 Data Link Solutions LLC (DLS), a JV with BAE Systems, plc, for joint pursuit of the worldwide
military data link market;
 Vision Systems International, LLC (VSI), a JV with Elbit Systems, Ltd., for joint pursuit of helmet
mounted cueing systems for the worldwide military fixed wing marketplace;
 Integrated Guidance Systems LLC (IGS), a JV with Honeywell International, Inc., for joint pursuit
of the development of weapons guidance and navigation solutions.
 August 7, 2012: Rockwell Collins has been awarded a contract by the Naval Research Lab (NRL) to provide
its TacNet Tactical Radio™ (TTR), a small form factor terminal, that will bring Link 16 networking
capability to a broader range of military platforms.
 July 10, 2012: Hainan Airlines has selected Rockwell Collins to service and support its fleet of 10 Boeing
787 Dreamliner aircraft through the company’s DispatchSM Program.
 April 16, 2012: Rockwell Collins has been awarded a contract to perform concurrency upgrades to two U.S.
Navy E-2C Weapon System Trainers and one Simulated Maintenance Trainer. With options, the program
has a potential value of $38 million over the life of the contract.
 April 3, 2012: A $17.2 million contract renewal will allow Rockwell Collins to build on its track record of
providing 100 percent availability of helicopter cockpit replacement parts for its Common Avionics
Architecture System for the U.S. Army’s 160th Special Operations Aviation Regiment (SOAR).
 January 30, 2012: Rockwell Collins has launched work on Phase 2 of a Defense Advanced Research Projects
Agency (DARPA) research contract valued at $5.3 million.
 December 6, 2011: Rockwell Collins awarded $46 million order for Defense Advanced GPS Receivers.
 November 15, 2011: Emirates Airlines has selected a comprehensive package of Rockwell Collins avionics
for 32 new Airbus A380 and 30 new Boeing 777 aircraft.
 June 23, 2011: Chile-based LAN Airlines recently selected a full suite of Rockwell Collins avionics, including
its WXR-2100 MultiScan™ Threat Detection System and GLU-925 Multi-Mode Receiver (MMR), for 80
Airbus A320s, which is one of the largest aircraft orders for an airline in South America. Deliveries will
begin later this year and continue through 2016.
 June 22, 2011: Bombardier has fully reimbursed Rockwell Collins for a $237 million interest-free cash
payment made earlier this year. The loan was made to help bridge the short period until certification of the
Global Vision flight deck featuring Pro Line Fusion®.
Company Name Rockwell Collins Inc

Currency USD Clayton Jones Chairman, President & CEO
Market Price 53 Robert Kelly Ortberg Co-COO
Kent L Statler Co-COO
Patrick Allen CFO
N.F.D. (€ Mln)@09/31/2011 -2
Income Statement (€ Mln) Sep-10 Sep-11 ∆ % (2010-2011)
Sales 3.573 3.708 3,8%
CAPITAL WORLD INVEST 10,35% Net Income 433 489 13,0%
VALUEACT HOLDINGS LP 7,22% Ebitda % Sales 20,5% 20,5%
STATE STREET CORP 3,95% Net Income % Sales 12,1% 13,2%
ARTISAN PARTNERS HOL 3,18%
Balance Sheet (€ Mln) Sep-10 Sep-11 ∆ % (2010-2011)
LATEEF INVESTMENT MA 2,80%
Total Assets 3.907 4.158 6,4%
of which Net Fixed Assets 545 582 6,6%
N.F.D. 88 -2 n/a
Tot Equity 1.147 1.179 2,8%
Market 58,59%
Revenues Breakdown

Segment (€ Mln) Sep-10 Sep-11 Sep-10 Sep-11 Sep-10 Sep-11 Geographic Area (€ Mln) Sep-10 Sep-11
Government Systems 2.207 2.170 468 457 21% 21% US 2.534 2.589
Commercial Systems 1.366 1.538 221 294 16% 19% Europe 637 654
Total segments 3.573 3.708 689 751 19% 20% Asia Pacific 191 206
Intersegment and Other 0 0 -70 -98 Canada 128 186
Overhead Costs and Other 0 0 0 0 Africa/Middle East 52 42
Group's Result 3.573 3.708 619 653 17% 18% Latam 31 31
*EBIT of each segment does not include overhead costs and other unallocated costs Total geographic areas 3.573 3.708
Revenues fiscal year 2011 - Geographic areas

Revenues fiscal year 2011 - Segments Africa/Middle
Canada Latam
5% East
1% 1%
Asia Pacific
Commercial 5%
Systems
41% Europe
18%
Government
Systems
59% US
70%
Analysis of Results
 During the 2011 fiscal year (year end September 30, 2011), consolidated revenues rose 3.8%, from € 3.6 billion in
2010 to € 3.7 billion at year end 2011.
 Government Systems’ sales decreased 1.7%, due to the net reduction in satellite communication program revenues,
driven by the combined impact of a recently completed upgrade program and the adverse impact of delayed funding
authorizations from the U.S. Government and due to decrease of Surface Solutions and Navigation Products sales.
 Commercial Systems’ sales increased by 12.6%. This growth was due to an increase in total air transport aviation
electronics and total business and regional aviation electronics sales
 Group’s EBIT grew 5.5% to € 653 million in 2011 compared to 2010.
 Government Systems’ EBIT fell 2.3%, primarily attributable to reduction in sales volume.
 Commercial Systems’ EBIT grew 32.8% in 2011. This was primarily due to the incremental earnings from higher
sales and the favorable impact of the adjustment to customer incentive reserves, partially offset by higher SG&A and
company-funded R&D expenses.
 Group’s Net Income, for fiscal year 2011, was of € 489 million, showing a 13% increase compared to the previous
fiscal year.
320
Alliant TechSystems
Alliant TechSystems – USA 321
Description
 Alliant TechSystems Inc. (ATK) is a leading Aerospace & Defence company producing advanced weapon and
space systems. The group’s activity is organised into 3 operating segments:
 AEROSPACE: ATK Aerospace is the world's top producer of solid rocket propulsion systems and a
leading supplier of military and commercial aircraft structures. It also specializes in small and micro-
satellites; satellite components and subsystems; lightweight space deployables and solar arrays; and low-
cost, quick-to-market launch solutions; flares and decoys; and energetic materials and related
technologies. The group also has extensive experience supporting human and space payload missions.
 DEFENCE: An industry leader in ammunition, precision and strike weapons, missile warning solutions,
and tactical rocket motors across air-, sea-, and land-based systems. The group is the largest U.S.
producer of small-caliber ammunition, as well as a leading producer of medium- and large-caliber
ammunition and medium-caliber gun systems. The group is home to ATK's Advanced Anti-Radiation
Guided Missile (AARGM), next-generation GPS-guided mortar and artillery projectiles, Joint and Allied
Threat Awareness System (JATAS), AAR-47 missile warning system, fuzes and warheads, propulsion
and controls for missile defense interceptors, weaponized special mission aircraft and advanced
propulsion. The group also brings extensive experience and expertise in defense facility management
and modernization.
 SPORTING: ATK Sporting is the established market leader in sporting and law enforcement
ammunition, tactical, and shooting accessories. The company serves sport shooting enthusiasts, law
enforcement professionals, military and tactical markets worldwide. The group’s products include some
of the most widely known and respected brands in the industry, including Federal Premium, CCI, Speer,
RCBS, Alliant Powder, Champion, Weaver, Eagle Industries, and BLACKHAWK! Industries.
 June 4, 2012: ATK Receives $36 Million Order for Production of 120mm Training Ammunition.
 April 30, 2012: ATK has received orders totaling more than $266 million for small caliber ammunition under
an Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the U.S. Army Contracting Command, Rock
Island (ACC-RI).
 February 20, 2012: -- ATK announced that it has been selected by the U.S. Army to develop an alternative
warhead for the Guided Multiple Launch Rocket System (GMLRS).
 November 30, 2011: ATK was awarded a $20 million contract by Orbital Sciences Corporation to provide its
UltraFlex™ solar arrays to power Orbital's enhanced Cygnus™ cargo logistics space vehicle, which is being
utilized under NASA's Commercial Resupply System contract.
 October 10, 2011: Alliant Techsystems announced that its Eagle Industries business has received a five year,
$50 million indefinite delivery, indefinite quantity (IDIQ) contract from Marine Corps Systems Command to
produce the U. S. Marine Corps' new USMC Pack.
 September 29, 2011: ATK Awarded $46.5 Million Ammunition Contract from U.S. Navy, Air Force, Marine
Corps and Coast Guard.
 July 11, 2011: ATK has received a $77 million, three-year contract to develop and qualify the M829E4 120mm
Advanced Kinetic Energy (AKE) tactical tank round for the U.S. Army.
 May 4, 2011: ATK has received orders totaling more than $488 million for small caliber ammunition pursuant
to an Indefinite Delivery/Indefinite Quantity (IDIQ) contract with the U.S. Army Contracting Command,
Rock Island (ACC-RI).
 May 3, 2011: ATK announced that it has received a $110 million contract from Lockheed Martin to produce
composite components for low rate initial production (LRIP) Lots 5 through 9 of the F-35 Lightning II – Joint
Strike Fighter
Alliant Techsystems
Company Name
Inc
Currency USD
Market Price 51 Management
Number of Outstanding Shares (Mln) 33 Mark W. Deyoung President & CEO
Market Cap (€ Mln) 1.289 Neal S Cohen Executive VP & CFO
N.F.D. (€ Mln)@03/31/2011 700
Enterprise Value (€ Mln) 1.989 Income Statement (€ Mln) Mar-10 Mar-11 ∆ % (2010-2011)

Ebit 425 406 -4,5%
FIRST EAGLE INVESTME 13,98%
Net Income 215 242 12,4%
TRADEWINDS GLOBAL IN 5,41%
Ebit % Sales 11,4% 10,9%
ALLIANZ GLOBAL INV O 4,46%
Balance Sheet (€ Mln) Mar-10 Mar-11 ∆ % (2010-2011)
HOTCHKIS & WILEY CAP 3,52%
Total Assets 2.986 3.429 14,8%
FORT WASHINGTON INVE 3,11% N.F.D. 771 700 -9,2%
STATE STREET CORP 2,51% Tot Equity 623 900 44,4%
Market 49,36%
Revenues Breakdown

Segment (€ Mln) Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11
Armament Systems 1.283 1.394 130 163 10% 12%
Aerospace Systems 1.252 1.105 113 101 9% 9%
Security and Sporting 588 717 83 99 14% 14%
Missile Products 587 520 45 53 8% 10%
Total segments 3.709 3.736 371 417 10% 11%
Intersegment and Other 0 0 54 -11
Group's Result 3.709 3.736 425 406 11% 11%
Missile Missile
Products Products
14% 16% Armament
Armament Systems
Systems 34%
37% Security and
Security and
Sporting Sporting
19% 16%
Aerospace Aerospace
Systems Systems
30% 34%
Analysis of Results
 During fiscal year 2011, ATK total revenues decreased by 0.7%, to € 3.7 billion
 Aerospace Systems segment sales decreased by 11.7% from € 1.2 billion in 2010 to € 1.1 billion in 2011 as a result of
a decrease in space launch systems resulting from the wind-down of the Space Shuttle Program, a decrease within
strategic and commercial rocket motors driven by lower volume and a decrease resulting from the termination of a
space mission systems program.
 Sales in the Armament Systems segment showed an increase of 8.6%, from € 1.3 billion in 2010 to € 1.4 billion in
2011, driven primarily by an increase in small-caliber systems due to continued strong customer requirements for
small-caliber ammunition, non-standard ammunition and weapon sales, and facility modernization project sales.
 Missile Products sales decreased 11.4% from € 587 million in 2010 to € 520 million in 2011, due in large part to a
decrease within propulsion and controls primarily related to decreased scope and funding on the NASA Constellation
Attitude Control Motor and Standard Missile-3 programs.
 The company’s Security & Sporting division accounted for sales of € 717 million in 2011, up 22% from € 588 million
as a result of an increase in accessories driven by the acquisition of Blackhawk in April 2010 and an increase in
ammunition sales volume.
Analysis of Results
 In 2011, the group’s EBIT fell to € 406 million, a decline of 4.5% in comparison to 2010.
 Aerospace Systems operating income for 2011 declined 10.2% to € 101 million compared to € 113 million in the prior
year. The decrease was primarily the result of lower sales volume.
 The operating income of the Armament Systems segment for the year rose 26% to € 163 million from € 130 million
in the prior year. The increase primarily relates to higher overall sales and improved operating efficiencies.
 Missile Products operating income for 2011 was € 53 million compared to € 45 million in the prior year. The increase
was primarily driven by the lack of the $13.4 million non-cash trade name impairment charge taken in fiscal 2010 and
improved margins in tactical rocket motors.
 Security and Sporting EBIT totaled € 99 million, up 19% in 2011 from € 83 million in the prior year. The increase
primarily relates to higher overall sales volume and improved operating efficiencies.
 The group’s Net Income for 2011 was € 242 million, an increase of 12.4% from the prior year.
327
DASSAULT AVIATION
Dassault Aviation S.A. 328
Description
 Dassault Aviation SA is a France-based company that operates in the global civil and military aviation
industry. The Company specialises in the design, manufacture and sale of combat aircrafts and executive
jets.
 Its portfolio of products includes Falcon family for the civil aviation market, as well as Mirage 2000 and
Rafale aircrafts for the military sector. In addition, Dassault Aviation SA offers spare parts, tools and a
range of services, such as technical support, maintenance and repair of airframe equipment and parts,
among others.
 Alongside the aircraft sector, the Company also focuses on space vehicles studies and pyrotechnical
activities.
 Dassault Aviation SA has a number of subsidiaries, located in the United States and France, including
Dassault Falcon Jet, Dassault Falcon Service, Dassault Procurement Services and Sogitec Industries.
 As of December 31, 2009, the Company was 50.6% owned by Groupe Industriel Marcel Dassault and
46.3% owned by EADS France.
 February 29, 2012: Dassault Aviation’s US subsidiaries Dassault Falcon Jet and Dassault Procurement Services
were approved as member companies of the International Aerospace Environmental Group (IAEG).
 October 10, 2011: Dassault Falcon and Minsheng Financial Leasing today signed a Memorandum of
Understanding for 10 Falcon 7X aircraft and 10 Falcon 2000S.
 July 29, 2011: Dassault Aviation and Thales signed a contract for the upgrade of the Indian Air Force’s Mirage
2000 fleet.
 May 27, 2011: On Wednesday, May 25, 2011 a Falcon 7X experienced a pitch trim event during descent. The
crew successfully recovered the aircraft to a stable flight profile and performed an uneventful landing. Out of an
abundance of caution, Dassault Aviation has contacted the EASA (European Aviation Safety Agency) to request
that Falcon 7X operations be temporarily suspended as of Thursday, May 26. This is the first event of this nature
that’s been reported since the aircraft entered service in 2007. As of July 19, 2011, the issue was not yet fully
resolved.
 March 14, 2011: BAE Systems and Dassault Aviation have signed a Memorandum of Understanding (MoU) to
collaborate exclusively on the preparation and submission of a joint proposal to the UK and French Ministries of
Defence for the design, development, production and support of a Medium Altitude Long Endurance (MALE)
Unmanned Aircraft System (UAS).
 March 9, 2011: Dassault’s Falcon 7X was named the winner of the Business Aviation category at the Aviation
Awards Asia.
Huntington Ingalls
Company Name
Industries
Thomas Fargo Chairman
Market Price 42
C Michael Petters President & CEO
Barbara Niland CFO
PENNANT CAPITAL MANA 8,78% Net Income 104 -73 -169,6%
STATE STREET CORP 8,63% Ebitda % Sales 6% 8,9%
FRANKLIN RESOURCES I 7,67% Ebit % Sales 3,7% 6,1%
HOTCHKIS & WILEY CAP 5,66% Net Income % Sales 2,0% -1,4%

GREENLIGHT CAPITAL I 5,13%
Total Assets 4.014 4.630 15,3%
SOUTHPOINT CAPITAL A 5,05%
METROPOLITAN WEST CA 3,86% N.F.D. 633 728 15,1%
ETON PARK CAPITAL MA 3,55% Tot Equity 1.094 673 -38,5%
Market 43,79%
Revenues Breakdown

Commercial Aircraft 3.228 2.415 n/a n/a n/a n/a France 828 856
Military Aircraft 959 890 n/a n/a n/a n/a Rest of World 3.359 2.449
Total segments 4.187 3.305 n/a n/a n/a n/a Total geographic areas 4.187 3.305
Group's Result 4.187 3.305 591 387 14% 12%

Military Aircraft Rest of World

27% 74%
Commercial
France
Aircraft
26%
73%
Analysis of Results
 During 2011, consolidated revenues fell 21.1% compared to 2010, to € 3.3 billion.
 Revenue from Commercial Aircraft sales in 2011 decreased by 25.2% to € 2.4 billion in 2011 from € 3.2 in 2010. In
particular, only 63 brand new aircraft were delivered in 2011, compared to 95 in 2010.
 Military Aircraft sales fell 7.2% to € 890 million in 2011 from € 959 million in 2010, in fact 11 RAFALE were
delivered to the French Air Force and Navy in 2011, unchanged from 2010.
 The Group’s EBIT decreased by 34.6% to € 387 million in 2011 from € 591 million from 2010. These worsenings
are mainly explained by a net sales decrease and an increase of Research and Development expenses
 Group’s Net Income, for fiscal year 2011, was of € 323 million, showing a 20.6% increase compared to the previous
fiscal year.
333
MTU Aero Engines

MTU Aero Engines – Germany 334
Description
 MTU Aero Engines Group (MTU), with its consolidated group of companies is Germany’s leading aero engine
manufacturer and ranks among the industry’s major global players. The Group manufactures both commercial
and military engines, and is a provider of commercial maintenance, repair and overhaul services. MTU’s
activities are divided in 2 operating units:
 ENGINES: includes commercial and military engine business, spare parts for commercial and military
engines, and military MRO. MTU operates in partnership with the world’s leading engine manufacturers
(General Electric, Pratt & Whitney, and Rolls-Royce) on programs to develop and produce commercial
engines. It designs and manufactures modules and components and carries out final assembly work.
Major engine programs include the GP7000 for the Airbus A380 and the V2500 for the Airbus A320
family. The focus of MTU’s work on engine modules lies on low-pressure turbines and high-pressure
compressors. The Group is also active in the industrial gas turbine (IGT) sector, developing and
manufacturing stationary gas turbines. In the military domain, MTU develops and manufactures engine
modules and components, manufactures spare parts, supervises engine final assembly, and provides
maintenance services. As leading industrial partner to the German armed forces, the company provides
service support for virtually every type of aero engine in service with the Bundeswehr. MTU is the
German partner in all major military engine programs at European level, the most important of these
being the EJ200 for the Eurofighter Typhoon, and the TP400-D6 for the new A400M military
transporter.
 MAINTAINANCE (MRO): All MRO activities are pooled in the MTU Maintenance Group, which
repairs and overhauls aero engines and industrial gas turbines. The company is particularly active in the
high-growth markets of the V2500, CF6, and CF34 programs and in the field of industrial gas turbines.
Commercial MRO customers include airlines and IGT operators all over the world.
 July 16, 2012: MTU wins AeroLogic for the maintenance of GE90-110B engines.
 July 6, 2012: Sagem and MTU Aero Engines create new joint venture, AES Aerospace Embedded Solutions
GmbH.
 December 8, 2011: MTU Aero Engines and Sagem have signed a Memorandum of Understanding (MoU) to
form a joint venture in the field of the development of safety-critical software and hardware for military and
civil aviation applications.
 September 21, 2011: MTU Aero Engines of Germany and the Chinese engine manufacturer AVIC
Commercial Aircraft Engine Co. Ltd. (ACAE) have signed an agreement on key terms for a possible
cooperation on the future CJ1000 engine.
 June 22, 2011: For Germany's leading engine manufacturer, the air show in France's Le Bourget was a huge
success: MTU CEO Egon Behle reported that the company had bagged orders in the total amount of more
than 600 million euros.
 June 21, 2011: MTU Aero Engines has concluded a strategic agreement with TECT Power for the supply of
compressor blisks.
 April 12, 2011: MTU's Maintenance group did extremely well in the first quarter: In the first three months of
this year, new contracts worth around 400 million euros were signed. One of the largest was awarded by
Atlas Air. The U.S. carrier had started to send the CF6-50 and CF6-80 engines powering its Boeing 747 fleet
to MTU Maintenance Hannover for maintenance, repair and overhaul (MRO) back in 1999. Now the existing
contract was expanded to include additional engines and renewed to run through 2020. MTU Maintenance
Berlin-Brandenburg's CF34 MRO team, too, succeeded in securing some attractive deals.
MTU Aero Engines

Company Name
Holding AG Management
Country GERMANY Egon Wilhelm Behle CEO/Chairman
Currency EUR Reiner Winkler CFO
Market Price 60,7 Rainer Martens COO
Market Cap ($ Mln) 3.154 Income Statement (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
N.F.D. ($ Mln) 12/31/2011 19 Sales 2.707 2.932 8,3%
Enterprise Value ($ Mln) 3.173 Ebitda 399 419 5,1%
Source: Bloomberg @ 17/09/2012 Ebit 268 284 5,9%
Shareholders Net Income 142 158 11,3%
CAPITAL RESEARCH AND 10,22% Ebitda % Sales 15% 14%
CAPITAL RESEARCH GLO 6,63% Ebit % Sales 9,9% 10%
GOLDMAN SACHS GROUP 3,78% Net Income % Sales 5,3% 5,4%
UBS AG 3,63%
FIDELITY INTERNATION 3,04% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
GRYPHON INTERNATIONA 3,02% Total Assets 3.451 3.739 8,3%
AMERIPRISE FINANCIAL 2,99% of which Net Fixed Assets 560 585 4,5%
BLACKROCK INC 2,99%
N.F.D. 97 19 -80,7%
Tot Equity 819 906 10,6%
Market 60,75%
Revenues Breakdown

Commercial & Military Engines 1.664 1.847 190 199 11% 11% North America 1.552 1.907
Commercial Engine Maintenance 1.074 1.117 76 89 7% 8% Germany 486 430
Total segments 2.738 2.963 267 289 10% 10% Rest of Europe 318 282
Overhead Costs and Other -30 -31 1,4 -4,6 Asia 221 211
Group's Result 2.707 2.932 268 284 9,9% 10% South America 104 89
*EBIT of each segment does not include overhead costs and other unallocated costs Australia 18 6
Africa 9 7
South America
3%
Commercial
UK 1%
Engine
Maintenance Asia
38% 7%
Germany
15% North America
Commercial & 65%
Military Engines
62%
Analysis of Results
 In 2011, MTU generated € 2.9 billion in revenues, representing a 8.3% increase in relation to 2010 revenues of €
2.7 billion.
 The Commercial & Military Engine (OEM) business revenues in 2011 rose by €183.1 million (11%) to €1.8 billion.
This increase was mainly due to the ramp-up in deliveries of GP7000 and Genx engines.
 The Commercial Engine Maintenance (MRO) revenues grew by €42.6 million (4%) to € 1.1 billion. The main
sources of this increase are the KC-10 maintenance contract, which is being serviced by the MTU sites in
Hannover.
 Group’s EBIT increased by 5.9% to € 284 million.
 The OEM segment EBIT increased 4.7% while the MRO segment showed a 17.2% EBIT increase, as a result of
the increased activity of the segment.
 Group’s Net Income for fiscal year 2011 rose 11.3% to € 158 million.
339
Zodiac Aerospace
Zodiac Aerospace 340
Description
 Zodiac Group’s activity is diversified into three segments:
 AEROSAFETY & TECHNOLOGY SEGMENT: designs and supplies equipment, products,

complete systems for safety and protection as well as technological solutions for applications in a wide
variety of sectors. Its mission is also to innovate in the field of telemetry & high technology data
communications with added value safety enhancing products, systems for the aeronautical and
aerospace industries and for sector such as automotive market with solutions for airbags.
 AIRCRAFT SYSTEMS : supplies reliable and high performance equipment to aircraft and engine
manufacturers and are recognised throughout the world as specialists in high technology equipment
and systems in service of essential functions both in flight and on the ground. The Segment is
developing advanced skills in the following fields:
 Intertechnique: fuel circulation (circulation, fuel management), systems monitoring and
management; on-board computers; monitoring and measurement of the temperature and
humidity.
 Intertechnique & Avox Systems: oxygen systems.
 ECE: electrical power management cockpit controls and displays; lighting and actuators.
 IN-LHC & IN-FLEX: hydraulics and controls.
 PRECILEC: actuators, sensors, & motors.
 CABIN INTERIORS: it specialises in manufacturing and selling seats for commercial aircraft. It also
designs and produces on-board cabin systems and equipment.
 January 19, 2012: Zodiac Aerospace has completed the acquisition of Contour Aerospace Ltd from PAIG
Investments Limited, an investment vehicle controlled by the RBS Special Opportunities Fund.
 December 13, 2011: Zodiac Aerospace has signed a definitive agreement with PAIG Investments Limited,
an investment vehicle controlled by the RBS Special Opportunities Fund, regarding the purchase of
Contour Aerospace Ltd.
 September 5, 2011: Zodiac Aerospace has concluded the purchase of Heath Tecna, which will reinforce its
competencies in the field of Cabin Interiors.
 April 6, 2011: Driessen-Zodiac Aerospace and Airbus have signed an agreement on progressively
introducing galleys and stowages as single source Supplier Furnished Equipment (SFE) on the A320 Family.
The offer is based on a modular concept, optimizing the initial configuration and easing later re-
configurations, which facilitates the re-marketability of the aircraft. Airline-customers will also benefit from
pre-assigned customer support conditions, complementing the existing support of the Airbus’ Customer
Services for all SFE cabin equipment.
 January 27, 2011: Zodiac Aerospace is pleased to announce that Corsairfly has confirmed the selection of
the Zodiac Aerospace SiT Inflight Entertainment system (IFE) for its Airbus A330 and Boeing 747 aircraft.
Both linefit and retrofit aircrafts are part of the contract, making the SiT system a new alternative to the
current IFE offering on new A330/340.
Company Name Zodiac Aerospace
Country FRANCE
Market Cap (€ Mln) 82 Olivier Guy Zarrouati Chairman
Number of Outstanding Shares (Mln) 57 Jean-Jacques Jegou CFO
Market Cap (€ Mln) 47
N.F.D. (€ Mln)@08/31/2011 585 Income Statement (€ Mln) Aug-10 Aug-11 ∆ % (2010-2011)
Enterprise Value (€ Mln) 632 Sales 2.150 2.735 27,2%
FIDOMA 6,49% Net Income 148 238 60,5%
SOCIETE FONCIERE FIN 5,81% Ebitda % Sales 14% 21%
ZODIAC AEROSPACE 4,89% Ebit % Sales 11,2% 17,9%
FONDS STRATEGIQUE D' 4,08% Net Income % Sales 6,9% 8,7%
FAMILIE DOMANGE 3,32%
MARECHAL ROBERT 2,81% Balance Sheet (€ Mln) Aug-10 Aug-11 ∆ % (2010-2011)
FAMILIE DESANGES 1,83% Total Assets 2.798 3.142 12,3%
FAMILIE GERONDEAU 1,35% of which Net Fixed Assets 244 256 5%
ARTISAN PARTNERS HOL 1,19% N.F.D. 514 585 13,8%
JUPITER ASSET MANAGE 1,13% Tot Equity 1.548 1.592 2,8%
Market 67,10%
Revenues Breakdown

Business Unit (€ Mln) Aug-10 Aug-11 Aug-10 Aug-11 Aug-10 Aug-11 Geographic Area (€ Mln) Aug-10 Aug-11
Cabin Interiors 1.146 1.600 144 252 13% 16% Americas 891 1.160
Aerosafety & Technology 509 572 63 67 12% 12% Europe 797 905
Aircraft Systems 482 563 37 75 8% 13% Rest of World 462 670
Total Business Units 2.137 2.735 244 394 11% 14% Total geographic areas 2.150 2.735
Intersegment and Other 13,0 0,0 -4 -10
Group's Result 2.150 2.735 240 385 11% 14%

Aircraft Systems
Rest of World
20,60%
25%
Americas
42%
Aerosafety &
Technology
21%
Cabin Interiors
58% Europe
33%
Analysis of Results
 In 2011, Group’s sales grew 27.2%, totaling € 2.7 billion. The Group benefited from substantial internal impetus
driven by the increase in air traffic, higher production rates from aircraft manufacturers and growth in after-sales
activities.
 Revenue from the Cabin Interiors business (the Cabin Interiors Segment) grew strongly by 39.2% to end the year at
€1,6 million as a result of the continued recovery seen in the Galleys, Cabin Equipment and Cabin Systems
Divisions, and the strong end to the fiscal year seen in the Seats Division.
 The Aircraft Systems Segment had a very successful fiscal year, reporting revenue of €563 million, compared with
€481 in 2010, reflecting growth of 17.1%. The segment benefited from the recovery in deliveries to business jet
manufacturers, increasing production rates for commercial airliner programs
 With sales revenue of €572 million, compared with €509 million in 2010, the AeroSafety & Technology Segment
reported revenue growth of 12.3% . Revenue growth was driven by growth in Emergency Evacuation Systems,
Electrical Interconnect Systems and Emergency Arresting/Deceleration Systems.
 Group’s operating income grew strongly 60.3% to € 385 million in 2011.
 Current Operating Income for the Cabin Interiors Segment grew by €144 million to end the year 74.8% higher at
€253 million; for Aircraft Systems Segment the EBIT rose by 58.9% while in AeroSafety & Technology Segment
EBIT rose by 6% to €67 million.
 Group‘s Net Income for fiscal year 2010 fell to € 148 million, showing a 14.3% decline compared to the previous
fiscal year.
345
SAAB – Svenska Aeroplan Aktie Bolaget

SAAB – Svenska Aeroplan Aktie Bolaget - Sweden 346
Description
 Saab serves the global market with world-leading products, services and solutions ranging from military defence
to civil security. Saab’s operations are focused on three strategic business segments:
 AERONAUTICS: Saab’s extensive military and civilian aeronautics operations are dominated by the
Gripen program but also include the unmanned aerial vehicles (UAV) of the future. In civilian operations,
Saab is a supplier of structures and subsystems to the aircraft manufacturers Airbus and Boeing.
 DYNAMICS: Saab has extensive experience in precision engagement and force protection technology -
above, on and below the surface. Dynamics offers ground combat weapons, missile systems, torpedoes,
sensor systems, unmanned underwater vehicles and signature management systems for armed forces as well
as remotely operated vehicles and security systems for the offshore industry and nuclear power plants.
 ELECTRONIC DEFENCE SYSTEMS: Saab is one of the world’s premier suppliers of solutions for
surveillance, threat detection and location, platform and force protection, as well as avionics. The
operations are based on Saab's close interaction with customers requiring efficient solutions for surveillance
and for threat detection, location and protection. This has created a unique competence in the area of radar
and electronic warfare, and a product portfolio covering airborne, landbased and naval radar, electronic
support measures and self-protection systems.
 SECURITY AND DEFENCE SOLUTIONS: At Saab we develop technology to detect possible threats at
an early stage, train and prepare for different kinds of scenarios, and ultimately protect society and its
individuals. Business area Security and Defence Solutions offers C4ISR systems, Airborne Early Warning
System, Civil Security systems and solutions, Training and simulation, as well as Telecom carrier and power
solutions.
 SUPPORT AND SERVICES: Business area Support and Services offers Integrated Support Solutions,
Maintenance, Logistics and Technical Support, Field Facilities and Regional Aircraft Support.
 August 13, 2012: Saab has received an order from its German partner Diehl BGT for the Surface-to-
Surface Missile RBS15 Mk3.
 June 29, 2012: Saab has received four orders from the Swedish Defence Materiel Administration, FMV, for
Gripen development, support and maintenance through 2016. The orders entails an initial order of SEK 3,6
billion.
 April 26, 2012: Saab has received an order from the Royal Thai Navy for the upgrading of the command and
control system on the aircraft carrier H.T.M.S. Chakri Naruebet. The order amounts to MSEK 180.
 January 18, 2012: Saab has signed a major support agreement with Sikorsky Aerospace Services regarding
technical maintenance and support for Sweden's BLACK HAWK helicopters.
 December 30, 2011: Defence and security company Saab has received an order from the Swedish Defence
Materiel Administration, FMV. The order sum amounts to M146 SEK.
 November 3, 2011: Defence and security company Saab has signed an extension to a support contract with the
British Army. The order sum is MSEK 150.
 September 22, 2011: Defence and security company Saab has signed a frame agreement and received a first order
from the EADS company Cassidian to supply safety-critical avionics equipment for the new advanced UAV
system Talarion.
 July 19, 2011: Defence and security company Saab AB has completed the divestment of its shares in the 3D
mapping company C3 Technologies AB announced on July 14th 2011. The consideration amounts to
approximately SEK 1,009m (circa $ 155m).
 June 29, 2011: Defence and security company Saab AB announced a definitive agreement to acquire the U.S.
company Sensis Corporation (Sensis), a leading provider of air traffic management (ATM) solutions and
surveillance technologies, for approximately $ 155m (about SEK 1,008m).
Company Name Saab AB
Country SWEDEN
Currency SEK Management
Market Price 127 Marcus Wallenberg Chairman
Number of Outstanding Shares (Mln) 107 Hakan Buskhe President & CEO
Sten Jakobsson Deputy Chairman
N.F.D. (€ Mln)@12/31/2011 -531
Enterprise Value (€ Mln) 996
Sales 2.740 2.635 -3,8%
Ebitda 253 471 86,2%
INVESTOR AB 30,00% Net Income 49 249 413,9%
WALLENBERG FOUNDATIO 8,70% Ebitda % Sales 9,2% 17,9%
SWEDBANK ROBUR FONDE 4,80% Ebit % Sales 3,9% 12,6%
HANDELSBANKEN FONDER 2,66% Net Income % Sales 1,8% 9,5%
UNIONEN 2,50%
AFA INSURANCE 2,30% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
FJARDE AP-FONDEN 2,10% Total Assets 3.283 3.566 8,6%
SHB/SPP FUNDS 2,10% of which Net Fixed Assets 342 367 7,2%
N.F.D. -267 -531 -98,8%
SEB FONDER AB 2,10%
Tot Equity 1.283 1.465 14,2%
SEB FONDFORVALTNING 2,00%
Market 40,74%
Revenues Breakdown

Aeronautics 727 692 21 37 3% 5% Sweden 1.034 973
Defence & Security Solutions 682 618 15 44 2% 7% Rest of EU 531 506
Dynamics 521 473 36 54 7% 11% Asia 441 580
Electronic Defense 377 440 11 33 3% 8% Africa 318 201
Support & Services 346 352 39 48 11% 14% America 247 213
Total segments 2.654 2.575 123 217 5% 8% Rest of World 127 126
Intersegment and Other 0 0 -16 115 Rest of Europe 41 36
Overhead Costs and Other 0 0 0 0 Total geographic areas 2.740 2.635
Group's Result 2.740 2.635 108 332 4% 12,6%
Rest of World
Rest of Europe
Support & 5%
America 1%
Services
14% 8%
Aeronautics
Africa
27%
7,6% Sweden
Electronic
37%
Defense
17%
Defence &
Security
Rest of EU
Solutions Asia 19%
24% 22%
Dynamics
18%
Analysis of Results
 During 2011, SAAB’ total revenues decreased by 3.8% compared to 2010 to € 2.6 billion.
 Aeronautics’ revenues decreased by 4.8% in 2011 as a result of the lower activity of deliveries of Gripen to South
Africa.
 Defence and Security Solutions’ revenues decreased by 9.5% as a result of a challenging market situation in South
Africa.
 Dynamics segment revenues fell by 9.2% in 2011 as a result of a lower order intake during 2010 and consequently
lower activity levels in the first half of 2011 compared to 2010.
 Electronic Defense segment sales increased by 16.7% as a result of a higher activity level in a significant airborne
early warning project during the year. The project was finalised at the end of the year.
 Support & Service segment revenues increased by 1.9%, Sales were in line with 2010, despite lower orders received,
due to a strong inflow of smaller orders in 2011.
 The group’s EBIT for 2011 totaled a € 332 million a strongly growth compared to € 108 million in 2010. The
operating income for the Aeronautics segment jumped to € 37 million in 2011 from € 21 million in 2010. Defence
and Security Solutions segment EBIT grew to € 44 million in 2010 from € 15 million in 2010. Dynamics, Electronic
Defense and Support & Service segment operating incomes were € 54 million, € 33 million and € 48 million,
respectively.
 Group’ Net Income for fiscal year 2011 jumped to € 249 million from € 49 million in 2010.
351
Triumph Group Inc.

Triumph Group – USA 352
Description
 Triumph Group, Inc. is a global leader in supplying and overhauling aerospace systems and
components. Operating in 58 locations, Triumph designs, engineers, manufactures, repairs and overhauls
aircraft components, subassemblies and systems. A wide variety of products and services are offered through
two operating groups:
 TRIUMPH AEROSPACE SYSTEMS GROUP: the broad capabilities of Triumph Aerospace

Systems Group include the design and development, manufacture, repair, sales and life cycle support of
complete metallic structural assemblies, as well as mechanical, electromechanical, hydraulic, and
hydromechanical control systems. The Group also performs complex machining processes, machining
capabilities and structural component forming and provides customers with the full range of structural
components, as well as complete assemblies and subassemblies.
 TRIUMPH AEROSTRUCTURES - VOUGHT AIRCRAFT DIVISION: is a leading global

manufacturer of aerostructures for commercial, military and business jet aircraft. Products include
fuselages, wings, empennages, nacelles and helicopter cabins. The Divisions offers a full range of design,
testing, manufacturing and support capabilities.
 TRIUMPH AFTERMARKET SERVICES GROUP: Triumph Aftermarket Services Group is an

international supplier of maintenance, repair, and overhaul services for the commercial and military
aviation industry. The Group also designs, engineers, manufactures, repairs and overhauls aftermarket
aerospace gas turbine engine components.
 March 29, 2012: Triumph Group, Inc. announced that its subsidiary, Triumph Insulation Systems, has
entered into a long term contract with DAHER-SOCATA, a subsidiary of DAHER Group, to provide
the full life cycle of thermal and acoustic insulation systems for the international aerospace market.
 October 31, 2011: Triumph Group, Inc. announced the acquisition of the assets of Aviation Network
Services, LLC, a leading provider of repair and refurbishment of aircraft interiors primarily for
commercial airlines.
 May 17, 2011: Triumph Group announced that its subsidiary, Triumph Aerostructures-Vought Aircraft
Division, has been selected by Bombardier to design and build the wing for the new Global 7000* and
Global 8000* large, ultra long-range business jets. The company will provide the all new high speed
transonic wing designed to significantly optimize aerodynamic efficiency from its Dallas, Texas facility.
Company Name Triumph Group Inc

Currency USD Richard C Ill Chairman/CEO
Market Price 60 Jeffry Frisby President/COO
Number of Outstanding Shares (Mln) 50 M David Kornblatt Exec VP/CFO
Market Cap (€ Mln) 23 John B Wright II VP/Secretary/General Counsel
N.F.D. (€ Mln)@12/31/2011
03/31/2011 982
Source: Bloomberg @ 17/09/2012 Sales 999 2.242 124,4%
VANGUARD GROUP INC 6,26% Ebit 120 258 115,7%
EAGLE ASSET MANAGEME 4,21% Net Income 52 116 121,2%
ALLIANZ GLOBAL INV O 3,71% Ebitda % Sales 16,2% 15,0%
SYSTEMATIC FINANCIAL 3,68% Ebit % Sales 12,0% 11,5%
BANK OF NEW YORK MEL 2,99% Net Income % Sales 5,2% 5,2%
RAINIER INVESTMENT M 2,31% Balance Sheet (€ Mln) Mar-10 Mar-11 ∆ % (2010-2011)
DIMENSIONAL FUND ADV 2,26% Total Assets 1.306 3.454 164,5%
STATE STREET CORP 2,22% of which Net Fixed Assets 254 567 123,6%
INVESCO LTD 2,16% N.F.D. 269 982 265,1%
Market 67,63% Tot Equity 664 1.259 89,6%
Revenues Breakdown
Revenues EBIT* EBIT

Segment (€ Mln) Mar-10 Mar-11 Mar-10 Mar-11 MARGIN
Mar-10 Mar-11 Revenues
Aerostructure 467 1.640 79 207 17% 13% Geographic Area (€ Mln) Mar-10 Mar-11
Aerospace Systems 365 396 52 58 14% 15% USA 802 1.937
Aftermarket Services 173 210 9 22 5% 11% Rest of World 197 305
Total segments 1.006 2.247 140 287 14% 13% Total geographic areas 999 2.242
Intersegment and Other -7 -5 -20 -28
Group's Result 999 2.242 120 258 12% 12%
Aftermarket
Services Rest of World
9% 14%
Aerospace
Systems
18%
Aerostructure
73%
USA
86%
Analysis of Results
 Revenues jumped to € 2.2 billion for the fiscal year ended March 31, 2011, increasing by 124.4% compared to
previous FY .
 The Aerostructures segment net sales increased by 251.2%, to € 1.6 billion for the fiscal year 2011 from € 467 million
for the fiscal year 2010. The acquisition of Vought contributed of increased net sales.
 The Aerospace Systems segment net sales increased by 8.5%, to € 396 million for 2011 from € 365 million for 2010.
Organic sales increased by $25.0 million due to improvements in the broader market and benefits from large
outsourcing programs.
 The Aftermarket Services segment net sales increased by 21.4%, to € 210 million for 2011 from € 173 million for
2010.
 The Group’s operating income, during the FY 2011 totaled € 258 million, a 115.7% growth compared to the previous
fiscal year.
 Aerostructures segment’s operating income increased by 162%. This growth was primarily due to contribution from
the acquisition of Vought ($161.6 million), as well as improvements in organic gross margin.
 Aerospace Systems segment operating income increased by 10.7%, to Operating income increased primarily due to
margins attained on increased sales , including the contribution from the Fabritech acquisition, as well as decreases in
legal fees.
 Aftermarket Services segment operating income increased 156.3% primarily due to increased sales volume.
 Group’ Net Income, for fiscal year 2011, was € 116 million, showing a 121% increase compared to 2010.
357
BBA Aviation
BBA Aviation – UK 358
Description
 BBA Aviation is a world leader in the provision of services to the Business and Commercial aviation
markets. The Group operates internationally through several subsidiaries and it is organized in the following
operating units:
 FLIGHT SUPPORT: the Group operates in this segment through 2 subsidiaries: Signature Flight
Support and ASIG. Signature Flight Support’s products and services include fuelling, hangar and
office rentals, ground handling, passenger services, maintenance, fuel purchasing and de-icing at
strategic USA and international locations. Signature currently operates at 80 locations throughout the
United States, Europe, South America, South Africa and in Asia. ASIG is a leading fueller of
commercial aircraft in the USA and UK and 4th largest independent provider of support services for
fuelling, ground handling, de-icing, cargo and other related services to commercial aviation. ASIG
operates in 65 cities throughout North America, Europe and Asia and has built a service network
capable of providing truly global solutions in aviation services.
 AFTERMARKET SERVICES & SYSTEMS: the Group operates in this segment through 2
subsidiaries: Dallas Airmotive International and APPH Group. Dallas Airmotive International is a
leading independent OEM-authorized turbine engine repair and overhaul company in the world; the
only company authorised by virtually all the major turbine engine manufacturers. APPH Group
operates a worldwide landing gear and hydraulics business from the UK and USA. It also provides
design and development to manufacture and assembly of equipment for all types of aircraft.
 August 10, 2012: Signature Flight Support announced that it has signed an agreement with Airside FBO
Operations Ltd., of Edmonton, Alberta, Canada to become a fully licensed Signature Flight Support
location.
 December 7, 2011: Ontic, the aerospace industry’s leading performance-driven producer of licensed
and/or acquired OEM legacy products and systems, has signed a new license with Honeywell. The
license is for the new manufacture and repair of 300 products that will transition to Ontic from 8
Honeywell divisions in the United States. The products include electronic assemblies and microcircuits,
electro-mechanical assemblies and mechanical assemblies.
 July 27, 2011: ASIG, an industry leader in aviation services, announced that it renewed aircraft refueling
agreements with American Airlines and its regional carrier, American Eagle, at 15 airports in the United
States.
 June 9, 2011: ASIG, an industry leader in aviation services, announced that Singapore’s Changi Airport
(SIN) has awarded ASIG a license to provide ground handling services. ASIG won the license through a
competitive bid process. Services incorporated under the license include comprehensive ramp handling,
cabin cleaning, passenger services and cargo transportation.
 February 24, 2011: BBA Aviation Engine Repair and Overhaul (ERO) company Dallas Airmotive has
received authorization from Honeywell Aerospace to supply turbofan engine and APU support services
for the Asia Pacific region. Included will be Major Periodic Inspection (MPI) services on TFE731,
engines, and line authorizations on CFE738 and HTF7000 engines and APUs (36 series, RE100, RE220).
Company Name BBA Aviation PLC
Country BRITAIN Management

Currency GBp Michael Harper Chairman
Market Price 207 Simon Pryce CEO
Number of Outstanding Shares (Mln) 479 Mark Hoad Finance Director
Market Cap (€ Mln) 1.193 Ian David Cameron Simm General Counsel
N.F.D. (€ Mln)@12/31/2011 507
AVIVA INVESTORS 9,47% Ebit 204 234 15,1%
AVIVA PLC 8,55% Net Income 121 183 51,0%
HARRIS ASSOCIATES L 7,66% Ebitda % Sales 12,8% 12,4%
HARRIS ASSOCIATES L 7,40% Ebit % Sales 9,2% 9,1%
STANDARD LIFE INVEST 7,31% Net Income % Sales 5,5% 7,1%
NEWTON INV MGMT 5,02%
PRUDENTIAL PLC 4,99% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
NEWTON INV MGMT 4,98% Total Assets 2.577 2.712 5,3%
BLACKROCK INC 4,96% of which Net Fixed Assets 617 621 0,6%
M&G INVESTMENT MANAG 4,64% N.F.D. 591 507 -14,2%
Market 35,02% Tot Equity 909 1.176 29,4%
Revenues Breakdown

Flight Support 890 1.596 88 150 10% 9% North America 1.667 1.912
Aftermarket Services 530 968 58 110 11% 11% UK 262 348
Total segments 1.420 2.564 146 259 10% 10% Mainland Europe 161 167
Rest of World
Mainland 5%
Europe
6%
Aftermarket
Services UK
38% 14%
Flight Support
62%
North America
75%
Analysis of Results
 In 2011, BBA Aviation total revenues rose by 16.5% to €2.6 billion.

 Revenues from Flight Support rose 79.4% as a result of increased activity, increased fuel prices (£43.8 million) and
acquisitions, which added £10.6 million of revenue in the year.
 Aftermarket Services & Systems segment’s revenues climbed 82.7%. The balance of the increase was accounted for
by the acquisition of the GE Aviation Systems’ fuel measurement business.
 Group’s EBIT, in 2011, was € 234 million, experiencing a 15.1% increase in comparison to the previous fiscal year
due principally to increased activity across both divisions
 Flight Support segment operating profit rose by 69.8%, primarily as a result of higher activity levels.
 Aftermarket Services & Systems segment’s operating profit grew 90.6% due to increased activity in ERO (Engine
Repair and Overhaul) and Legacy Support together with the contribution from the fuel measurement business
 Group’s Net Income, for the fiscal year 2011, was € 183 million. This was an increase of 51% from the previous
financial year.
363
Cobham
Cobham – UK 364
Description
 Cobham plc is an international company engaged in the development, delivery and support of advanced
aerospace and defence systems in the air, on land, at sea and in space. The Company has three technology
divisions and one service division that collectively specialize in the provision of components, subsystems and
services that keep people safe, improve communications and enhance the performance of aerospace and
defence platforms. Cobham’s Strategic Business Units are:
 AEROSPACE COMMUNICATIONS: designs and manufactures some of the world’s foremost audio
and radio communications systems, serving clients including Boeing, Airbus, Bell and Eurocopter, space
agencies and military forces on land and sea in more than 100 countries.
 ANTENNA SYSTEMS: Cobham Antenna Systems has been a world leader in the design and
manufacture of communication systems and antennas. It is a leading supplier of flat plate array antennas,
standard and custom passive RF components and assemblies, including specialised microwave and
electro-mechanical rotating devices.
 AVIATION SERVICES: boosts one of the largest civil maritime surveillance contract in the world and
training of all UK helicopter pilots for the Royal Navy, Royal Air Force and British Army. It also
specialises in the conversion and support of a wide range of civil and military platforms including the
Nimrod MR2, R1 and Sentry E3-D fleets.
 COMMERCIAL SYSTEMS: is a leading provider of integrated avionics systems and emergency locator
systems for military and civil customers.
Cobham – UK 365
Description
 DEFENCE SYSTEMS: designs and manufactures microwave components, integrated assemblies and sub-
systems for the US Department of Defense and other military and government customers around the
world. The division is also the world leader in advanced tactical military vehicle intercom systems and
soldier and ground vehicle situational awareness products.
 LIFE SUPPORT: is the US military’s preferred source for pilot oxygen regulators, monitors and associated
test equipment, with On Board Oxygen Generation Systems (OBOGS) enabling increased mission
duration and flexibility. Safety and Survival. Cobham is a leading designer and manufacturer of On Board
Inert Gas Generating Systems(OBIGGS) increasing safety by inerting fuel tanks on commercial and
military airframes. Cobham’s diving products are used for MCM/EOD and Special Forces operations.
 MISSION EQUIPMENT: is the market leader for Air-to-Air Refuelling, providing innovative nose to tail
solutions to defence customers worldwide, refuelling systems and wing-tip to wing-tip mission systems for
fast jets, transport aircraft and rotor craft.
 TACTICAL COMMUNICATIONS AND SURVEILLANCE: is a world leader in security, sharing and
communicating situational awareness in challenging environments, from urban environments to the digital
battlefield. It provides specialist communications, security and surveillance products together with
integrated solutions to 18 armed forces and more than 140 agencies globally. Markets served include
counter-terrorism and intelligence, law enforcement and public safety, military platform communications
and situational awareness and force protection. It also offers broadcast solutions for electronic news
gathering, portable field monitoring and video-assist applications.
Cobham – UK 366
 August 15, 2012: Cobham has been awarded orders totalling more than £13.8M during the second quarter of
2012 to supply European customers with hand-held Improvised Explosive Device (IED) detection equipment
incorporating the Group’s leading-edge Ground-Penetrating Radar (GPR) systems.
 July 9, 2012: Cobham has completed the divestment of its non-core US-based rescue beacon business to J.F.
Lehman & Company for US$ 73 million. In addition, it has divested its small related European operation to
management for a nominal sum.
 April 30, 2012: Cobham has been awarded a US $39 million contract from the US Naval Air Systems Command
(NAVAIR) to manufacture the AN/ALQ-99 Low Band Transmitter-Antenna Group for US Navy and Marine
Corps EA-6B and EA-18G electronic warfare aircraft.
 January 30, 2012: Cobham Mission Equipment has been selected by Boeing to provide Body Fuel Tanks in
support of the US Air Force’s KC-46 Tanker Programme.
 December 7, 2011: Cobham has been selected by Embraer Defense and Security to design and supply the aerial
refuelling probe for the KC-390 Tactical Military Transport and Tanker Aircraft.
 November 3, 2011: Cobham Awarded Multi-Year Contracts in Excess of US $72 Million For Specialised Military
Antennas.
 October 31, 2011: Cobham Completes the Acquisition of US Trivec-Avant Corporation, a Global Leader in
Satellite Communication Antennas, for US$126 Million .
 June 21, 2011: Cobham Analytic Solutions has been awarded a prime supplier position on a five-year, multiple-
award, Blanket Purchase Agreement (BPA) to provide professional services to the Deputy Assistant Secretary of
Defense (DASD), Developmental Test and Evaluation (DDT&E). This BPA has a total contract ceiling of $190
million for the base year and four option years.
 March 29, 2011: Cobham will provide Chaff and Flare Defensive Aids Systems for the Eurofighter Typhoon
fighter jet Tranche 3A programme, under a contract worth more than £18m (approximately € 21m).
 March 17, 2011: Cobham has been awarded a $9 million contract from the US Navy to develop an advanced,
oxygen-generating life support system for use by a broad range of fighter, patrol and military transport aircraft.
Cobham – UK 367
Company Name Cobham PLC
Country BRITAIN
Market Price 228 Warren Tucker CFO
Number of Outstanding Shares (Mln) 1.079 Robert Murphy CEO
Market Cap (€ Mln) 2.949 Lyn Colloff Secretary
N.F.D. (€ Mln)@12/31/2011 279
INVESCO LTD 5,48% Ebit 272 343 26,2%
NEWTON INV MGMT 5,30% Net Income 183 225 23,1%
SPRUCEGROVE INVESTME 5,02% Ebitda % Sales 18,4% 22,4%
BLACKROCK INC 4,97% Ebit % Sales 11,9% 15,4%
MASSACHUSETTS FINANC 4,94% Net Income % Sales 8,0% 10,1%
LEGAL & GENERAL INV 4,46%
ABERDEEN ASSET MANAG 3,49% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
ARTEMIS INVESTMENT M 3,48% Total Assets 3.085 2.740 -11,2%
THREADNEEDLE ASSET M 3,15% of which Net Fixed Assets 408 382 -6,2%
WALTER SCOTT & PARTN 3,08% N.F.D. 391 279 -28,7%
Market 56,63% Tot Equity 1.291 1.223 -5,3%
Cobham – UK 368
Revenues Breakdown

Division (€ Mln) Dec-10 Dec-11 Dec-10 Dec-11 Dec-10 Dec-11 Geographic Area (€ Mln) Dec-10 Dec-11
Aerospace & Security 818 764 187 183 23% 24% USA 1.381 1.248
Defence Systems 434 389 64 69 15% 18% UK 203 205
Mission Systems 385 446 78 105 20% 24% Other EU 283 304
Aviation Services 328 370 44 53 13% 14% Australia 226 263
Other -9 -9 2 -2 -22% n/a Rest of World 190 206
Totale Divisions 1.956 1.960 374 408 19% 21% Total geographic areas 2.283 2.225
Intersegment and Other 327 265 -102 -66
Overhead Costs and Other 0 0 0,0 0,0
Group's Result 2.283 2.225 272 343 12% 15%
*EBIT of each division does not include overhead costs and other unallocated costs
Rest of World
Aviation Services 9%
19% Australia
Aerospace &
Security 12%
39%
Mission Systems
22% Other EU USA
14% 56%
Defence Systems
20% UK
9%
Cobham – UK 369
Analysis of Results
 In 2011, Cobham’s total revenues decreased by 2.5%, to € 2.2 billion, it was adversely impacted by US dollar exchange
rates and a net reduction from the impact of acquisitions and disposals.
 Total Aerospace and Security revenue decreased by 6.6% , as a result an adverse US dollar exchange rate, a net
reduction from acquisitions and disposals and an organic decline of 3%. There was lower land based vehicle
intercoms revenue and reduced shipments of surveillance equipment, particularly in the US.
 The Defence Systems segment reported a 10.5% decrease in revenue to € 389 million. Revenue was impacted by an
adverse US dollar exchange rate and an organic decline of 7%. The business is almost entirely focused on the US
defence market with orders and revenue affected by the 10% reduction in investment outlays.
 Mission Systems’ revenues grew 15.9% to € 446 million in 2011, driven by the Mission Equipment business, primarily
due to increased revenue from aerial refuelling products and strong aftermarket sales. Headline revenue also benefited
from the January 2011 acquisition of Telerob, which was partly offset by the adverse US dollar exchange rate.
 Aviation Services segment showed an 12.7% increase in revenues to € 370 million, primarily due to the Australian
operations, and a favourable Australian dollar translation rate.
 Group’s EBIT, in the fiscal year 2011, was € 343 million, a 26.2% increase in comparison to 2010. EBIT performance
broke down as follows: Aerospace and Security : down 2.1%; Defence Systems: +8.8%; Mission Systems: +34.4%;
Aviation Services +21.1%.
 Group’s Net Income, for fiscal year 2011, was € 225 million, increasing 23.1% compared to fiscal year 2010.
370
Kongsberg Gruppen
Kongsberg Gruppen - Norway 371
Description
 Kongsberg Gruppen (KONGSBERG) is an international technology corporation that delivers advanced and
reliable solutions that improve safety, security and performance in complex operations and during extreme
conditions. KONGSBERG works with demanding customers in the global defence, maritime, oil and gas
and aerospace industries.
 KONGSBERG MARITIME: provides innovative and reliable solutions for merchant marine,
offshore, subsea, navy, coastal marine, fisheries, maritime simulation & training, port & harbour
surveillance and more.
 KONGSBERG OIL & GAS TECHNOLOGIES: serves the oil & gas industry with a range of high
performance information technology solutions for drilling operations, production, reservoirs and the
subsea environment.
 KONGSBERG DEFENCE SYSTEMS: is Norway's premier supplier of defence and aerospace-
related systems. The portfolio comprises products and systems for command and control, weapons
guidance and surveillance, communications solutions and missiles. Kongsberg Defence Systems also
makes advanced composites and engineering products for the aircraft and helicopter market.
 KONGSBERG PROTECH SYSTEMS: is the world's leading supplier of Remote Weapon Stations
providing flexible solutions that meet our customer's specific requirements. Through world class
innovation, program execution and customer understanding, the aim of the groupo is to provide high
tech systems for enhanced situational awareness and protection of personell and property in high-risk
areas.
 August 21, 2012: Kongsberg Satellite Services (KSAT) is awarded a contract to provide ground station services
to serve the next generation weather satellites developed by the National Space and Aeronautical and Space
Administration (NASA), USA. The contract value is apprx. MNOK 132.
 June 21, 2012: KONGSBERG has signed a contract with BAE Systems to supply combat systems for military
vehicles.
 March 30, 2012: KONGSBERG has booked an order on the remote weapons stations (RWS) valued at NOK
100 millions from the French Renault Truck Defense.
 February 14, 2012: KONGSBERG has received three orders with a total value of MNOK 200 for deliveries of
Rudders & Vertical Leading Edges, Centre Fuselage Parts and Air to Air Weapon Pylons for F-35 Joint Strike
Fighter.
 December 21, 2011: KONGSBERG has been awarded a framework agreement valued at MNOK 960 for
delivery of PROTECTOR "Nordic" Remote Weapon Stations for the Norwegian and Swedish Armed Forces.
 June 24, 2011: KONGSBERG has received an order valued at NOK 112 millions (€15 millions) from the
Swiss Army for the delivery of PROTECTOR Weapon Control System, including logistics for the Swiss
vehicle program GMTF.
 June 23, 2011: KONGSBERG has booked an order valued at NOK 315 (€42.4 millions) millions from the US
Army. The order is part of the increase of the Common Remotely Operated Weapon Stations (CROWS)
framework agreement for up to 11.690 systems signed in February 2011.
 January 31, 2011: KONGSBERG has booked an order on PROTECTOR remote weapon stations (RWS)
valued at NOK 80 millions (€10.7 millions) from the Swedish Defence Forces (FMV).
Kongsberg Gruppen
Company Name
AS
Country NORWAY Management
Currency NOK Nicholas Martin Prest Chairman
Market Price 113 A E stanley Carter Co-Chairman
Number of Outstanding Shares (Mln) 120 Andrew S. Thomis CEO
Market Cap (€ Mln) 1.744 Simon Walther Finance Director/Secretary
N.F.D. (€ Mln)@12/31/2011
04/30/2011 -283
Enterprise Value (€ Mln) 1.461 Income Statement (€ Mln) Apr-10 Apr-11 ∆ % (2010-2011)
NORWEGIAN GOVT MINIS 50,00% Ebit 273 263 -3,7%
GOVERNMENT PENSION F 8,62% Net Income 193 185 -4,3%
ARENDALS FOSSEKOMPAN 7,96% Ebitda % Sales 16,0% 15,8%

Ebit % Sales 13,6% 13,5%
MP PENSION 4,01%
ODIN FORVALTNING AS 3,45%
SKAGEN AS 2,59%
Balance Sheet (€ Mln) Apr-10 Apr-11 ∆ % (2010-2011)
SWEDBANK ROBUR FONDE 1,65%
Total Assets 1.805 2.017 11,7%
JP MORGAN CHASE BANK 1,65%
ORKLA ASA 1,33%
N.F.D. -234 -283 -20,8%
DANSKE CAPITAL NORGE 1,09%
Tot Equity 630 708 12,4%
Market 82,35%
Revenues Breakdown
Revenues EBITA* EBITA* MARGIN Revenues

Segmento (€ Mln) apr-10 apr-11 apr-10 apr-11 apr-10 apr-11 Geographic Area (€ Mln) apr-10 apr-11
Maritime 812 864 128 139 16% 16% Norway 312 354
Defence Systems 436 503 32 34 7% 7% EU 357 408
Protech Systems 734 541 129 98 17,5% 18,0% Rest of Europe 47 75
Totale Segmenti 1.982 1.908 288 271 15% 14% North America 852 664
Intersegment and Other 20 46 0 5 South America 24 33
Overhead Costs and Other 0 0 -2 0 Asia 374 396
Group's Result 2.002 1.954 286 275 14,3% 14,1% Other 35 24
*Earning before Interests, Taxes and Amortization Totale Aree Geografiche 2.002 1.954
Revenues fiscal year 2011 - Segments Revenues fiscal year 2011 - Geographic Areas
Other
1%
Norway
Asia 18%
Protech Systems 20%
28% South America
2%
Maritime EU
45% North 21%
America
34%
Defence
Systems Rest of Europe
27% 4%
Analysis of Results
 In 2011, Kongsberg Gruppen’s total revenues decreased by 2.4%, to € 1.9 billion.

 The Maritime segment’s revenues increased by 6% reflecting good results within the supplies to offshore rigs, LNG
vessels and FPSO vessel.
 The Defence Systems segment reported a 15% increase in revenue to € 503 million thanks to large deliveries to the
Poland coastal artillery, anti-aircraft to Finland and the Naval Strike Missile (NSM) to Norway.
 Protech Systems’ revenues fell 26% to € 541 million in 2011 as a result of reduced deliveries to the business area’s
largest customer - the U.S. Army.
 Group’s EBITA, in the fiscal year 2011, was € 275 million, a 4% decrease in comparison to 2010.
 Group’s Net Income, for fiscal year 2011, was € 185 million, decreasing 4.3% compared to fiscal year 2010.
376
B/E Aerospace
B/E Aerospace – USA 377
Description
 B/E Aerospace Inc. the world's leading manufacturer of cabin interior products for commercial aircraft and
business jets and a leading aftermarket distributor of aerospace fasteners. The business segments are:
 CONSUMABLES MANAGEMENT: As the world’s leading distributor of aerospace fasteners and
consumables for the commercial, business jet, and military markets, B/E Aerospace stocks more than
400,000 part numbers, including Honeywell Aerospace spare parts, in 40 locations worldwide.
 COMMERCIAL AIRCRAFT: B/E Aerospace’s commercial aircraft segment includes seating
products, interior systems and engineering services for commercial aircraft, and thermal and power
management for the commercial and military aerospace markets. B/E is known worldwide as the
leading manufacturer of aircraft seating, offering a wide selection of First Class products, Premium
Class seating (including lie-flat seat beds), premium economy, main cabin, and regional aircraft seats as
well as spares and replacement parts for aircraft seats. B/E is the leading provider of engineering,
design, integration, installation and certification services for commercial aircraft passenger cabin
interiors. B/E offers a broad range of interior reconfiguration services that allow airlines to modify
the cabin layout, install telecommunications and entertainment equipment, relocate galleys, lavatories,
overhead bins, and crew rest compartments. In addition, B/E is the industry leader in thermal
management and electronics cooling; specializing in aluminum brazements, chassis, enclosures, heat
exchangers, power supplies and full electronic box build and interconnect capability.
 BUSINESS JET: B/E Aerospace is the leading manufacturer of broad range of products that include
a complete line of business jet seating and divan products from traditional designs to unique lie-flat
offerings as well as Super First Class environments for commercial aircraft. Additionally B/E
manufactures lighting systems, air valves and oxygen delivery systems as well as sidewalls, bulkheads,
credenzas, closets, galley inserts, lavatories, and tables.
 June 25, 2012: B/E Aerospace announced that it has signed a definitive agreement to acquire Interturbine
Aviation Logistics GmbH, Interturbine Logistics Solutions GmbH, and Interturbine Technologies GmbH
(collectively Interturbine), a leading provider of material management logistical services to global airlines
and maintenance, repair and overhaul (MRO) providers.
 January 17, 2012: B/E announced that The Boeing Company has selected B/E Aerospace to become the
exclusive manufacturer of modular lavatory systems for Boeing’s 737 Next-Generation family of airplanes,
as well as the 737 MAX which is expected to be introduced into service later this decade. The estimated
value of the award is in excess of $800 million, exclusive of retrofit orders, which are expected to be
substantial.
 July 12, 2011: B/E Aerospace announced that the Company has been selected by three major Middle
Eastern airlines to outfit their new-buy wide-body aircraft with B/E Aerospace next generation super first
class suites. The awards are initially valued in excess of $125 million.
 April 15, 2011: B/E Aerospace was selected by Deutsche Lufthansa AG ("Lufthansa") to outfit its new-buy
A330 aircraft and to retrofit its current fleet of A330 and A340 aircraft with B/E Aerospace next
generation business class seating. The awards are primarily for the retrofit of Lufthansa's existing A330 and
A340 aircraft and are initially valued in excess of $100 million.
 February 1, 2011: B/E Aerospace was selected by a number of China's leading airlines, including Air China,
China Southern Airlines, and Hainan Airlines, to equip their commercial airliner fleets with both B/E
Aerospace seating products and B/E Aerospace food and beverage preparation and storage equipment. The
awards are initially valued at approximately $200 million.
Company Name B/E Aerospace Inc

Market Price 41 Amin J. Khoury Chairman & CEO
Number of Outstanding Shares (Mln) 104 Werner Lieberherr President & COO
Market Cap (€ Mln) 3.305 Thomas P. McCaffrey Senior VP, CFO & Treasurer
N.F.D. (€ Mln)@12/31/2011 727
HONEYWELL INTERNATIO 5,77% Ebit 244 330 35,4%
LONE PINE CAPITAL LL 5,73% Net Income 111 176 59,0%
VANGUARD GROUP INC 4,75% Ebitda % Sales 18,6% 19,6%
AMERICAN CENTURY COM 3,34% Ebit % Sales 15,9% 17,1%
RAINIER INVESTMENT M 2,45% Net Income % Sales 7,2% 9,1%
RCM CAPITAL MANAGEME 2,35% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
GOLDMAN SACHS GROUP 2,17% Total Assets 2.637 2.961 12,3%
STATE STREET CORP 2,12% of which Net Fixed Assets 131 161 23,0%
BLACKROCK FUND ADVIS 2,03% N.F.D. 900 727 -19,3%
Revenues Breakdown

Commercial Aircraft 770 1.005 115 167 15% 17% North America 776 1.000
Business Jet 165 196 11 22 7% 11% Europe 382 468
Consumables management 596 728 118 141 20% 19% Asia, Middle East and Other 373 461
Group's Result 1.531 1.929 244 330 16% 17%
*EBIT of each segment does not include overhead costs, other unallocated costs and impairment charge

Asia, Middle East

Consumables and Other
management 24%
38%
Commercial North America

Aircraft 52%
52%
Europe
24%
Business Jet
10%
Analysis of Results
 For the year ended December 31, 2011, revenues were € 1.9 billion, an increase of 26% in comparison to the
previous fiscal year as a result of a higher level of new aircraft deliveries, a higher level of aftermarket activity
associated with the retrofit of existing aircraft, and ongoing maintenance of the global fleet of aircraft.
 Commercial aircraft segment revenues rose 30.5%, Business jet segment revenues grew 18.9% and Consumable
management segment revenues increased by 22.1% as compared with the prior year.
 B/E Aerospaces’ EBIT, for FY 2011, was € 330 million as a result of the higher level of sales, improved mix of
products sold, manufacturing efficiencies and global supply chain and program management initiatives.
 In 2011, Consumable Management segment operating earnings increased 19.7%.
 Business jet segment operating earnings, increased by 105%, as compared with the prior year, as a result of both the
increase in revenues and an improved mix of revenues.
 Commercial Aircraft segment recorded an operating earnings increase of 45.3% in 2011. The increase was primarily
due to an improved revenue mix and ongoing operational efficiency initiatives.
 In the fiscal year 2011, Group’s Net earnings totaled € 176 million, up 59% from € 111 million in 2010.
382
QinetiQ
QinetiQ – UK 383
Description
 QinetiQ is a leading international defence and security technology company. The Group develops
innovative technology-based products and provides technological support services for major government
agencies, such as the UK Ministry of Defense (MOD) and the US Department of Defence (DoD), and
for commercial customers around the world.
 The UK, US and Australia are principally its home markets and its success in delivering improved
capabilities and value for money has earned it the trust of many different customers:
 It provides procurement and technical support to nations seeking to procure new capabilities
 Its track record of supporting NATO programmes makes it a natural partner for non-aligned
European nations who wish to inter-operate with NATO
 Through its technical support services it can provide technology transfer and local training for
sovereign states wishing to create national facilities and capability.
QinetiQ – UK 384
 August 3, 2012: QinetiQ’s Transceiver, currently in orbit around the Mars on the European Space Agency’s
Mars Express, is set to monitor NASA’s Mars Science Laboratory (MSL) through entry, descent and landing
on to the surface of the planet on Monday.
 July 12, 2012: QinetiQ is working with the UK Ministry of Defence (MOD) to establish a new Unmanned
Air Systems Capability Development Centre (UASCDC) to support the rapid development of unmanned air
systems (UAS) programmes from concept to deployment.
 March 23, 2012: QinetiQ announced today that it has completed the supply and service support to two
international ranges in Australia and Norway, the first time that QinetiQ has provided this service in
Norway.
 February 2, 2012: QinetiQ is to provide its 'game-changing' E-X-Drive® transmission as the key
component of a hybrid electric drive propulsion system to the BAE Systems-Northrop Grumman team that
was recently awarded a $449.9 million contract for the technology development phase of the U.S. Army’s
Ground Combat Vehicle (GCV) programme.
 December 5, 2011: Logica, the UK’s leading provider of business and technology services to British utilities,
announced that QinetiQ will join its partnership with SAP, the UK and Ireland’s leading supplier of
business software solutions to utilities, to bid to become the data services provider to the Data and
Communications Company (DCC).
 September 14, 2011: QinetiQ and Dytecna Ltd. today signed a MoU which will see two leading experts
from the defence and security industry pursue shared product development opportunities relating to force
protection.
 September 13, 2011: QinetiQ and Northrop Grumman produce novel, proven and cost-effective Vertical
Take-Off Unmanned Air System (VTUAS) solution for Royal Navy
QinetiQ – UK 385
Company Name QinetiQ Group PLC

Currency GBp Mark Elliott Chairman
Market Price 176 J Michael Harper Deputy Chairman
Number of Outstanding Shares (Mln) 660 Leo Martin Quinn CEO
Market Cap (€ Mln) 1.391 David Antony Mellors CFO
N.F.D. (€ Mln)@12/31/2011
03/31/2011 324
ARTISAN PARTNERS HOL 13,63% Ebit 115 168 45,6%
RUANE CUNNIFF & GOLD 9,71% Net Income -76 6 107,9%
Ruane Cunniff & Gold 9,60% Ebitda % Sales 15,1% 12,7%
RUANE CUNNIFF & GOLD 9,05% Ebit % Sales 5,9% 8,2%

Net Income % Sales -3,9% 0,3%
FIDELITY INTERNATION 7,48%
SCHRODERS PLC 7,32%
Balance Sheet (€ Mln) Mar-10 Mar-11 ∆ % (2010-2011)
INVESTEC ASSET MANAG 5,64%
Total Assets 1.958 1.780 -9,1%
of which Net Fixed Assets 343 313 -8,6%
INVESTEC ASSET MANAG 4,05%
N.F.D. 567 324 -42,9%
BLACKROCK INC 3,63%
Tot Equity 568 549 -3,4%
Market 25,16%
QinetiQ – UK 386
Revenues Breakdown

Segment (€ Mln) Mar-10 Mar-11 Mar-10 Mar-11 Mar-10 Mar-11 Geographic Area (€ Mln) Mar-10 Mar-11
UK Ministry of Defence 833 734 71 58 9% 8% North America 990 1.139
QinetiQ North America 754 706 63 53 8% 8% UK 864 748
Other Govts 364 603 10 63 3% 10% Rest of World 96 156
Group's Result 1.950 2.043 115 168 6% 8%

Rest of World
UK Ministry of 7%
Other Govts Defence
29% 36%
UK
37%
North America
56%
QinetiQ North
America
35%
QinetiQ – UK 387
Analysis of Results
 In 2011, the Group delivered an 4.7% increase in total revenues, from € 1.9 billion to € 2.0 billion.
 Sales to the UK Government fell 11.9% to € 734 million in 2011, from € 833 million in 2010, principally due to
pressure on customers’ budgets and delays in spending approvals.
 The QinetiQ North America segment reported a 6.3% decrease in revenues to € 706 million as a result of the US
Government in-sourcing around last year end as well as the switching of some work to small business preference
contracts.
 Sales to other governments rose 65.5% to € 603 million. This includes a US $288m contribution from the new Q-
NET vehicle survivability product and illustrates the lumpy profile of the Global Products revenue.
 Group’s EBIT increase by 45.6% to € 168 million as a result of a higher mix of revenues from product sales.
 EBIT in the UK Government was down 17.6% principally due to falling revenue and hence utilisation.
 QinetiQ North America’ EBIT showed weakness, down 15.8% year over year.
 EBIT in the Other Governments segment was up 510.0% to € 63 million.
 Group’s Net Income increased to € 6 million, up from a Net Loss of € 76 million in 2010.
388
Meggitt PLC
Meggitt PLC – UK 389
Description
 Meggitt PLC is an international aerospace, defence and electronics group. Their activities can be divided in
3 segments:
 AEROSPACE EQUIPMENT: produces mainly wheels and brakes, thermal management systems
(environmental control, ice protection), fluid control products, fire, overheat and smoke detection,
polymer and composite seals. The segment includes the Braking Systems division specializing in
aircraft braking advanced technologies, such as steel and composite carbon brakes, engine interfaces,
vibrations monitoring systems, engine sensors and condition monitoring systems.
 SENSING SYSTEMS: provides industrial position sensors, avionics and an extensive range of high
value sensors and related electronics used primarily in monitoring the condition of aircraft, marine
and industrial power generation turbines.
 DEFENCE SYSTEMS: provides aerial, land and marine targets, command and control systems, and
field services for small and large arms training and systems development, aeromechanical launch and
recovery systems for decoys and targets, and environmental control systems.
 August 1, 2012: Meggitt has been awarded a five-year agreement from Sikorsky Aircraft Corporation for the
manufacture of fuel tanks, ice protection equipment, composites and interiors. The contract is valued at up
to $129 million.
 April 24, 2012: Meggitt has enhanced its position as a major fire protection systems supplier to Airbus,
winning the fire detection, control and APU and engine extinguishing systems for the A320neo
programme.
 January 13, 2012: Sikorsky Aircraft, a subsidiary of United Technologies Corp. has selected Meggitt Polymer
& Composites and Meggitt Safety Systems for the newly-formed team building a next-generation
helicopter—known as the S-97 Raider™—for evaluation by the US military.
 November 16, 2011: Meggitt announced that its contract with the Ministry of Defence for the supply of its
Dismounted Close Combat Trainer (DCCT) to the British Army has been amended. This involves a £13
million modification and upgrade to the DCCT in which devices needed to support Future Integrated
Soldier Technology (FIST) enhancements will be added.
 October 12, 2011: Bombardier has selected Meggitt Aircraft Braking Systems’ integrated braking system for
the Global* 7000* and Global 8000* business aircraft. The award consists of nose and main wheel carbon
brakes and a fully integrated brake-by- wire automatic braking control system.
 August 3, 2011: Boeing has selected a Meggitt cargo and cabin smoke detection system for the KC-46
refuelling tanker.
 July 18, 2011: Meggitt is pleased to announce that Securaplane Technologies Inc (“Securaplane”), a wholly-
owned subsidiary of the group, has been awarded a multi-million dollar contract from Gulfstream for its
advanced lithium battery system.
Company Name Meggitt PLC
Country BRITAIN
Currency GBp
Management
Market Price 413
Colin Terry Chairman
Terence Twigger CEO
Market Cap (€ Mln) 3.887 Stephen Young Finance Director
N.F.D. (€ Mln)@12/31/2011 946
CAPITAL GROUP COMPAN 9,56% Ebit 285 338 18,7%
CAPITAL RESEARCH AND 9,18% Net Income 167 222 33,2%
BAILLIE GIFFORD AND 8,35%
Ebit % Sales 20,4% 19,3%
M&G INVESTMENT MANAG 8,13%
FMR LLC 4,98% Total Assets 3.962 4.783 20,7%
FIDELITY MANAGEMENT 4,54% of which Net Fixed Assets 249 276 11,0%
VANGUARD GROUP INC 3,56% N.F.D. 866 946 9,3%
LEGAL & GENERAL INV 3,39% Tot Equity 1.726 2.152 24,7%
Market 35,86%
Revenues Breakdown

Aircraft Braking Systems 372 385 83 83 22% 22% North America 757 966
Equipment 366 634 67 75 18% 12% UK 141 161
Sensing Systems 250 281 46 51 19% 18% Rest of Europe 313 390
Control Systems 219 242 46 49 21% 20% Rest of World 182 230
Polymer & Composites 187 205 21 23 11% 11% Total geographic areas 1.394 1.746
Total segments 1.394 1.746 264 281 19% 16%
Group's Result 1.394 1.746 285 338 20% 19%
Polymer & Rest of World
Composites Aircraft
Braking 13%
12%
Systems
Control 22%
Systems
14% Rest of Europe
North America
22%
56%
Sensing Equipment UK
Systems 36% 9%
16%
Analysis of Results
 In 2011, the Group’ revenues increased by 25% compared to 2010. Organic revenue grew by a healthy 12% before
the effect of the Pacific Scientific Aerospace (PacSci) acquisition, which completed in April 2011. .
 Revenues from the Aircraft Braking Systems segment totaled increased by 3,5% to € 320 million as a result of high
aftermarket revenues with very strong growth in business jets and regional aircraft.
 Meggitt Control Systems revenues was up 10% thanks to a growth of of sales from OE and 47% from the
aftermarket.
 Equipment segment revenues totaled was up 73% to € 634 million largely due to an excellent performance from
Heatric, the printed circuit heat exchanger business.
 Sensing Systems’ revenues increased by 12,2% to € 281 million due to a growth in civil markets that included
production rate increases in Airbus A380 and Boeing 787, both of which are equipped with Sensing Systems engine
condition monitoring units.
 Polymers & Composites revenues were € 205 million (+9.7%). Organic growth in revenues was driven by strong
large jet and regional aircraft demand resulting in civil growth of 25%. Military sales grew 10% across a range of
platforms, including increasing content on ground vehicle retrofits.
 Group’s EBIT, in 2011, was up 18.7% at € 338 million.
 Aircraft Braking Systems EBIT was € 83 million; the Equipment segment recorded an EBIT of € 75 million, EBIT
for Sensing Systems was € 51 million, EBIT for Control Systems was € 49 million and the Polymers & Composites
business reported EBIT of € 23 million.
 Group’s Net Income, for fiscal year 2011, was grew to € 222 million.
394
AAR Corp
AAR Corp - USA 395
Description
 AAR Corp, and its subsidiaries, are diversified providers of products and services to worldwide aviation and
defense industries. Group’s activities can be divided in 4 business segments:
 AVIATION SUPPLY CHAIN: including the purchase and sale of a wide variety of new, overhauled and
repaired engine and airframe parts and components for the airline and defense customers. It also repairs
and overhauls a wide variety of avionics, electrical, electronic, fuel, hydraulic and pneumatic components
and instruments and a broad range of internal airframe components for the same customer categories. It
provides customized inventory supply and management programs and performance-based logistics
programs for engine and airframe parts and components in support of airline and defense customer’s
maintenance activities.
 MAINTENANCE, REPAIR & OVERHAUL (MRO): including airframe maintenance services and the
repair and overhaul of most types of landing gear for its airline and defense customers.
 STRUCTURES & SYSTEMS: including the manufacturing and the repair of pallets and a wide variety of
containers and shelters in support of military and humanitarian tactical deployment activities. The
segment also designs, manufactures and installs in-plane cargo loading and handling systems for
commercial and military aircraft and helicopters; it designs and manufactures advanced composite
materials for commercial, business and military aircraft as well as advanced composite structures for the
transportation industry.
 AIRCRAFT SALES & LEASING: including the sale or lease of used commercial jet aircraft. In this
segment, the Group purchases aircraft from airlines and aircraft leasing companies for its own account or
in partnership with strategic or financial partners typically under JV agreements. The business unit also
provides advisory services which includes assistance in remarketing aircraft, records management and
storage maintenance.
AAR Corp - USA 396
 July 25, 2012: AAR has been selected by the U.S. Army Aviation and Missile Command (AMCOM) to upgrade
and modify the Government of Egypt’s Project 776 Integrated Air Defense Command and Control System
used by the Egyptian Armed Forces’ HAWK Air Defense System.
 April 12, 2012: AAR (NYSE: AIR) joined with other aerospace leaders as part of a panel at the 11th annual
Aviation Summit, hosted by the U.S. Chamber of Commerce and the National Chamber Foundation in
Washington D.C., to present and discuss the future of aviation.
 March 15, 2012: AAR announced that it has been selected by Airbus Military to provide off-wing repairs
management and logistics services. The five-year programs will be managed by AAR’s Defense Systems &
Logistics operating unit.
 December 2, 2011: AAR CORP. announced today that it has completed the acquisition of Telair International
GmbH (Telair) and Nordisk Aviation Products, AS (Nordisk) from Teleflex Incorporated. The combination of
Telair and AAR Cargo Systems creates a formidable market leader in the design, production and servicing of
aircraft cargo systems for both commercial and military platforms.
 September 20, 2011: AAR and the Boeing Company have signed a letter of intent to cooperate on component
maintenance, repair and overhaul (MRO) capabilities to support Royal Netherlands Air Force (RNLAF)
rotorcraft operations.
 August 15, 2011: AAR CORP announced that is has been awarded an eighteen month contract from Virgin
America to provide maintenance and installation services for the airline’s growing fleet of Airbus 320 series
aircraft.April 05, 2010: AAR announced that it received an order to provide Containerised Roll-in/Out
Platforms (CROP) for the U.S. Army, valued at $65 million. The platforms will be built at AAR’s
manufacturing facility in Cullman, Alabama, commencing in the summer of 2010. The order is part of a five-
year Indefinite Delivery/Indefinite Quantity (IDIQ) contract that was established in 2005.
AAR Corp - USA 397
Company Name AAR Corp

Management
Currency USD
David Storch Chairman/CEO
Market Price 17,1
Richard Poulton VP/CFO/Treasurer
Timothy John Romenesko President/COO
N.F.D. (€ Mln)@05/31/2011 298
Income Statement (€ Mln) May-10 May-11 ∆ % (2010-2011)
Sales 1.016 1.393 37,1%
Ebitda 102 146 42,6%
Shareholders
Ebit 72 100 38,5%
FRANKLIN RESOURCES I 9,05%
Net Income 34 54 56,5%
EARNEST PARTNERS LLC 7,48%
DIMENSIONAL FUND ADV 7,35%
INVESCO LTD 4,39%
Balance Sheet (€ Mln) May-10 May-11 ∆ % (2010-2011)
STORCH DAVID P 3,09%
Total Assets 1.157 1.315 13,6%
AMERIPRISE FINANCIAL 2,61%
N.F.D. 276 298 8,0%
Market 50,71% Tot Equity 576 644 11,9%
AAR Corp - USA 398
Revenues Breakdown

Segmento (€ Mln) May-10 May-11 May-10 May-11 May-10 May-11 Geographic Area (€ Mln) May-10 May-11
Government & Defense 150 441 33 81 22% 18% USA 811 1.142
Aviation Supply Chain 286 336 52 56 18% 17% International 204 251
Maintenance & Repair 233 304 71 54 31% 18% Total geographic areas 1.016 1.393
Structures and Systems 347 289 29 43 8% 15%
Totale Segmenti 1.016 1.370 185 234 18% 17%
Group's Result 1.016 1.393 72 100 7,1% 7,2%
Structures and
Systems Government & International
21% Defense 17%
32%
Maintenance &
Repair
22% Aviation Supply
Chain USA
25% 83%
AAR Corp - USA 399
Analysis of Results
 During 2011, Group’s revenues increased by 37.1% from 2010 to € 1.4 billion.
 Government & Defense segment revenues jumped 193% to € 441 million in 2011. Sales to government and defense
customers increased 46.1% principally due to the inclusion of Airlift, which was acquired on April 7, 2010, and
increased sales at the Company's defense logistics business.
 Aviation Supply Chain segment’s revenues grew by 17.7% over the year when compared to 2010. The parts supply
businesses benefitted from the improved airline environment as maintenance activity increased and airlines restocked
inventory levels.
 Maintenance Repair and Overhaul posted a 30.6% increase due to strong growth in heavy maintenance and landing
gear facilities.
 Structures & Systems segment’s revenues dropped 16.7% due to the expected decline in volume at the mobility
products business as that business completed contract requirements on two large contracts last fiscal year.
 Group’s EBIT, in 2011, reached € 100 million, showing a 38.5% decrease compared to the previous year due to the
impairment charges and an increase in selling, general and administrative expenses.
 The EBIT from the Goverrnment & Defense segment totaled € 81 million, up 146.5% in 2011. Aviation Supply
Chain segment EBIT grew by 7.3%, Maintenance Repair and Overhaul segment posted a 25% decrease in EBIT,
while the Structures & Systems segment’s EBIT rose by 46.2%.
 Group’s Net Income for 2011 amounted to € 54 million, increasing by 56.5% compared to previous FY.
400
Curtiss Wright
Curtiss Wright – USA 401
Description
 Curtiss-Wright Corporation is a diversified, multinational provider of products and services to a

broad range of industries in the motion control, flow control, and metal treatment markets. It
provides products and services to a number of global markets, such as defense, commercial
aerospace, commercial power, oil and gas, automotive, and general industrial. Curtiss Wright is
organized in the following units:
 FLOW CONTROL: designs, manufactures, distributes, and services a range of flow control
products for military service and commercial applications. Its products include highly
engineered valves, pumps, motors, generators, instrumentation and control electronics and
related products which manage the flow of liquids, vapor and pressurization.
 MOTION CONTROL: designs, develops, and manufactures mechanical systems, drive
systems, and electronic controls and sensors mainly for the aerospace and defense industries.
 METAL TREATMENT: provides various metallurgical services, principally shot peening,
coatings, and heat treating. The unit provides these services to a broad spectrum of customers
in various industries, including aerospace, automotive, construction equipment, oil and gas,
petrochemical, and metal working.
 April 19, 2012: Curtiss-Wright Corporation announced that it has acquired the Versatile Measuring
Instruments (VMI) and Lisle-Metrix (L-M) product lines from the Amidyne Group for approximately $7
million.
 April 2, 2012: Curtiss-Wright Corporation announced that it has been awarded contracts valued in excess of
$40 million to provide valves for the U.S. Navy's Virginia-Class submarines, as well as an assortment of spare
components for nuclear powered ships.
 December 5, 2011: Curtiss-Wright Corporation announced today that it has acquired the assets of Anatec
International, Inc. and Lambert, MacGill, Thomas, Inc. (LMT). Anatec and LMT perform testing and
inspection services for commercial nuclear power plants to ensure safety, operational soundness and
compliance with regulatory codes.
 September 7, 2011: Curtiss-Wright Corporation announced that it has received a contract from BAE
Systems.Total orders in 2011 are anticipated to approach $2.5 million, with an estimated total value of $27.5
million over the lifetime of both programs.
 September 6, 2011: Curtiss-Wright Corporation (NYSE:CW) today announced that it has been selected by
SELEX Galileo to supply rugged embedded digital signal processor modules for use on Saab's new Gripen
Next Generation (NG) fighter aircraft.
 July 28, 2011: Curtiss-Wright Corporation announced that it has acquired ACRA Control, Limited (ACRA) for
approximately €42 million (approximately $61 million) in cash. ACRA is a leading supplier of data acquisition
systems and networks, data recorders and telemetry ground stations for both defense and commercial
aerospace markets.
 July 27, 2011: Curtiss-Wright Corporation announced that it has been awarded a contract by Parker Hannifin
for structural development, assembly and test of the aft strut fairing hydraulic module for use on the Boeing
787 airplane. The value of the contract and prior agreements over the lifetime of the platform is estimated to
be approximately $112 million.
Company Name Curtiss-Wright Corp

Management
Country UNITED STATES Martin Benante Chairman & CEO
Currency USD David Linton Co-COO
Market Price 32 David Adams Co-COO
Number of Outstanding Shares (Mln) 47 Glenn Tynan VP: Finance/CFO
N.F.D. (€ Mln)@03/31/2011
12/31/2011 302 Income Statement (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
SINGLETON GROUP LLC 8,02% Net Income 82 101 22,4%
GAMCO ASSET MANAGEME 5,91% Ebitda % Sales 13,7% 14,3%
ALLIANZ GLOBAL INV O 4,86% Net Income % Sales 5,6% 6,3%
DIMENSIONAL FUND ADV 4,40% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
GABELLI FUNDS LLC 3,37% Total Assets 1.730 2.047 18,3%
ARTISAN PARTNERS HOL 2,68% of which Net Fixed Assets 307 342 11,6%
BLACKROCK INSTITUTIO 2,61% N.F.D. 253 302 19,3%
SNYDER CAPITAL MANAG 2,55% Tot Equity 895 948 5,9%
Market 56,04%
Revenues Breakdown

Flow Control 791 818 81 80 10% 10% USA 1.034 1.116
Motion Control 499 548 62 62 12% 11% UK 89 107
Metal Treatment 171 219 20 34 12% 15% Canada 45 63
Total segments 1.461 1.585 163 176 11% 11% Rest of World 292 299
Intersegment and Other 0 0 -24 -18 Total geographic areas 1.461 1.585
Group's Result 1.461 1.585 139 158 9% 10%
Metal
Treatment
14%
Rest of
World
Canada
19%
4%
UK
Motion Flow Control 7%
Control 52%
34% USA
70%
Analysis of Results
 In 2011, Curtiss Wright’s total revenues rose by 8.5% in comparison to the previous fiscal year to € 1.6 billion. The
increase in sales in 2011 primarily reflects higher volume in all segments, with the largest percent increase occurring in
the Metal Treatment segment.
 Revenues from the Flow Control segment experienced 3.5% growth. The increase was due to the incremental
contributions from acquisitions as well as increased sales in the power generation, commercial aerospace, and general
industrial markets.
 Motion Control segment’s revenues grew by 9.7% driven by increases in the commercial and defense markets, of 15%
and 7%, respectively.
 The Metal Treatment segment showed a 28% increase in revenues, due to increased demand across all of our major
lines of business and markets, particularly for our shot peening and coatings services to commercial markets.
 Group’s EBIT, in 2011, reached € 158 million, showing a 6.2% increase in comparison to the previous fiscal year.
 The Flow Control segment’s operating income decreased by 0.9%. The decrease was mainly due to under absorption
of fixed overhead costs in our oil and gas division, primarily the result of delays in new capital projects with
international customers as well as start-up costs relative to our super vessel business.
 The Motion Control segment’s EBIT was essentially flat compared to the same period in 2010.
 The Metal Treatment segment’s EBIT grew 69.9% and was favorably impacted by approximately $3 million from
acquisitions and the effects of foreign currency translation.
 Group’s Net Income, in 2011, totaled € 101 million rising by 22.4% compared to previous FY.
406
Teledyne Technologies
Teledyne Technologies – USA 407
Description
 Teledyne Technologies is a leading provider of sophisticated electronic components, instruments &
communications products, including defense electronics, data acquisition & communications equipment for
airlines and business aircraft, monitoring and control instruments for industrial and environmental applications
and components, and subsystems for wireless and satellite communications. Teledyne Technologies operates
through the following operating units:
 INSTRUMENTATION: Instrumentation segment provides measurement, monitoring and control
instruments for marine, environmental, scientific and industrial applications. It also provide power and
communications connectivity devices for distributed instrumentation systems and sensor networks
deployed in mission critical, harsh environments.
 DIGITAL IMAGING: Digital Imaging segment includes digital image capture products, primarily
consisting of high performance sensors, cameras and software for use in industrial, scientific, medical and
professional applications products, specialty semiconductors and micro electro mechanical systems
("MEMS"), and infrared detectors, cameras and optomechanical assemblies. It also includes the sponsored
and centralized research laboratories benefiting government programs and businesses, as well as major
development efforts for innovative digital imaging products for government and space applications.
 AEROSPACE AND DEFENSE ELECTRONICS: Aerospace and Defense Electronics segment provides
sophisticated electronic components and subsystems and communications products, including defense
electronics, data acquisition and communications equipment for air transport and business aircraft, harsh
environment interconnects, and components and subsystems for wireless and satellite communications, as
well as general aviation batteries.
 ENGINEERED SYSTEMS: Engineered Systems segment provides innovative systems engineering and
integration, advanced technology development, and manufacturing solutions to space, military,
environmental, energy, chemical, biological, nuclear systems and missile defense requirements. This
segment also designs and manufactures hydrogen gas generators, thermoelectric and electrochemical
energy solutions and small turbine engines.
 August 3, 2012: Technologies Incorporated announced that its subsidiary, Teledyne Limited, has acquired the
parent company of PDM Neptec Limited (“PDM Neptec”). PDM Neptec provides underwater cables, fiber
optic and electrical subsea connectors and custom engineering solutions.
 May 29, 2012: Teledyne Technologies Incorporated ("Teledyne") and LeCroy Corporation ("LeCroy") jointly
announced today that they have entered into a definitive agreement that provides for the merger of LeCroy
Corporation with a wholly-owned subsidiary of Teledyne.
 February 27, 2012: Teledyne Technologies Incorporated announced that it has acquired VariSystems Inc.
VariSystems, headquartered in Calgary, Alberta, is a leading supplier of custom harsh environment
interconnects.
 September 20, 2011: Teledyne Technologies Incorporated announced that its Teledyne Oil & Gas group was
awarded a development contract from Cameron do Brasil Ltda, a subsidiary of Cameron International
Corporation to design and deliver a subsea high-power electrical interconnect system for a deepwater oil field
in Brazil.
 August 31, 2011: Teledyne Technologies Incorporated announced that its subsidiary, Teledyne Brown
Engineering, Inc., in Huntsville, Ala., was awarded by the Missile Defense Agency (MDA) its Objective
Simulation Framework (OSF)
 July 11, 2011: Teledyne Technologies Incorporated announced that its subsidiary, Teledyne Brown Engineering,
Inc., in Huntsville, Ala., was awarded a contract from the United States Special Operations Command
(USSOCOM) to design, develop, test, manufacture and sustain the Shallow Water Combat Submersible
(SWCS), a replacement system for the current SEAL Delivery Vehicle. The contract, including all options, is
valued at $383 million.
Company Name Teledyne Technologies Inc

Currency USD Robert Mehrabian Chairman/President/CEO
Ivan Blukis Chief Business Risk Assurance
Market Price 65
Dale Schnittjer Senior VP & CFO
Patrick Neville VP: CIO
John Kuelbs Exec VP/Secretary/General Cnsl
N.F.D. (€ Mln)@12/31/2011 203
FIDELITY MANAGEMENT 7,71% Ebit 138 175 27,3%
WELLINGTON MANAGEMEN 7,20% Net Income 93 197 111,8%
VANGUARD GROUP INC 5,57% Ebitda % Sales 14% 15%
SINGLETON GROUP LLC 5,43% Ebit % Sales 10,9% 11,7%
BLACKROCK FUND ADVIS 4,30% Net Income % Sales 7,3% 13,1%
HARRIS ASSOCIATES L 3,33%
JENNISON ASSOCIATES 3,10% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
RR PARTNERS LP 2,88% Total Assets 1.202 1.409 17,2%

EARNEST PARTNERS LLC 2,87%
N.F.D. 148 203 37,0%
Tot Equity 607 759 25,0%
Market 55,00%
Revenues Breakdown

Aerospace & Defense 474 518 45 72 9% 14% USA 905 966
Instrumentation 442 476 88 95 20% 20% International 363 532
Engineered Systems 258 235 23 22 9% 9% Total geographic areas 1.269 1.498
Digital Imaging 95 270 4 12 4% 5%
Total segments 1.269 1.498 160 201 13% 13%
Group's Result 1.269 1.498 138 175 11% 12%

Aerospace &
Defense
34% International
36%
Instrumentation
32%
USA
64%
Digital Imaging Engineered
18% Systems
16%
Analysis of Results
 In 2011 sales were € 1.5 billion, a growth of 18.1% compared to FY 2010. The increase in sales reflected higher sales
in each business segment except the Engineered Systems segment.
 The Aerospace and Defense segment’s sales rose 9.1%, which resulted primarily from higher sales of microwave
devices and interconnects. The 2011 sales increase reflected higher sales of microwave devices and interconnects, as
well as, incremental sales of $ 25.7 million from the 2010 acquisition of Intek.
 Instrumentation sales were up 7.6%. The 2011 sales change reflected higher sales of marine and environmental
instrumentation products by over 5% and 10%, respectively.
 The Engineered Systems segment showed a 8.7% drop in revenues. The decrease in the Engineered Systems segment
revenue reflected lower sales of missile defense engineering services, lower sales from NASA programs, lower sales
of gas centrifuge service modules and lower sales related to the Joint Air-to-Surface Standoff Missile (“JASSM”)
turbine engine program partially offset by incremental sales of $6.2 million from a recent acquisition.
 Finally, the Digital Imaging segment reported in 2011 a 185.6% growth in revenues, included the recent acquisitions,
primarily the February 2011, acquisition of DALSA, as well as higher organic sales.
 In 2011 Group’s EBIT was € 175 million, an increase of 27.3% compared to FY 2010.
 Aerospace and Defense segment’s EBIT, in 2011, rose 62.5%, the Instrumentation segment showed a 7.8% increase
and Digital Imaging EBIT rose 209.6%. The increases reflected the impact of higher sales.
 Engineered Systems segment recorded a 7.6% drop in EBIT. The decrease in operating profit in the Engineered
Systems segment reflected the impact of lower sales, partially offset by lower pension expense and higher margins.
 Group’s Net Income, for fiscal year 2011, was € 197 million, increasing by 111.8% compared to fiscal year 2010.
412
CAE
CAE – Canada 413
Description
 CAE is a world leader in providing simulation and modelling technologies, and integrated training solutions
for the civil aviation industry and defence forces around the globe. The Group operates in the following
markets:
 SIMULATION PRODUCTS/CIVIL: is one of the leaders in the sale of civil aviation simulation
equipment. Airlines, third-party training centers and original equipment manufacturers around the
globe rely on CAE for expertise and innovation in products that enhance the safety of flight.
 TRAINING & SERVICES/CIVIL: offers a full suite of training solutions covering every segment of
aviation: commercial, business, general and military. CAE’s training network includes 24 training
centers around the world equipped with more than 140 full-flight simulators. The Group has a wealth
of experience in developing prototype simulators for new types of aircraft, including over 20 models in
the past and, more recently, the Airbus A380 and Dassault 7X. It also offers a full range of supporting
services including sales of spare parts, simulator updates and simulator relocations.
 SIMULATION PRODUCTS/MILITARY: provider of military training systems and services for the
defence forces of nearly 50 nations. It is the global leader in rotary-wing and transport aircraft training
solutions. It designed a broader range of helicopter simulators and more training systems for the C-130
Hercules aircraft than any other company in the world.
 TRAINING & SERVICES/MILITARY: offers turnkey training solutions as well as comprehensive
portfolios of training support and simulation-based professional services.
CAE – Canada 414
 August 22, 2012: Teledyne Technologies Incorporated announced today that it has acquired VariSystems Inc.
VariSystems, headquartered in Calgary, Alberta, is a leading supplier of custom harsh environment interconnects.
 July 5, 2012: CAE awarded contracts valued at more than C$50 million for three full-flight simulators, training
devices and updates.
 May 16, 2012: CAE acquires Oxford Aviation Academy for C$314 million strengthening its global leadership
position and footprint and extending its offering with a complete end-to-end solution.
 April 2, 2012: CAE awarded contracts valued at more than C$90 million for seven full-flight simulators and
training devices
 January 18, 2012: CAE awarded military contracts valued at more than C$100 million
 December 14, 2011: CAE awarded contracts valued at more than C$50 million for four full-flight simulators and
training devices.
 September 6, 2011: CAE announced that it has been awarded a series of military contracts valued at more than
C$100 million, including a subcontract to design and manufacture four additional C-130J simulators for the
United States Air Force (USAF) as well as contracts in Germany to provide support services for the German Air
Force’s Eurofighter simulators and to upgrade Tornado flight simulators.
 July 20, 2011: CAE announced that it has sold four CAE 7000 Series Level D full-flight simulators (FFS) and
associated training devices with a total list price of approximately C$60 million: an Airbus A320 FFS to Aeroflot,
the largest airline of the Russian Federation; an A320 and a B737 to the Zhuhai Flight Training Centre (ZFTC), a
joint venture of China Southern Airlines and CAE; and a Bell 412 helicopter FFS to an undisclosed customer.
 July 5, 2011: CAE announced it has been awarded a series of military contracts valued at more than C$115
million, including a contract from the United States Navy to develop two MH-60R helicopter simulators, a
contract from Boeing to design and manufacture training devices as part of the C-130 Avionics Modernization
Program (AMP) for the United States Air Force, a contract from Professional Way in Malaysia to build a CAE
3000 Series AW139 full-flight simulator and a contract from the United States Army to develop a suite of
Abrams tank maintenance trainers.
CAE – Canada 415
Company Name CAE Inc
Country CANADA
Currency CAD
Management
Market Price 10,5
Marc Parent President & CEO
Nick Leontidis Exec. VP: Strategy
N.F.D. (€ Mln)@03/31/2011 290
Income Statement (€ Mln) Mar-10 Mar-11 ∆ % (2010-2011)
Sales 1.153 1.232 6,8%
JARISLOWSKY FRASER L 9,12% Net Income 109 121 10,9%
CAPITAL GUARDIAN TRU 4,47% Ebitda % Sales 23,4% 24,1%
MACKENZIE FINANCIAL 4,32% Ebit % Sales 17,3% 17,3%
GREYSTONE MANAGED IN 3,80% Net Income % Sales 9,5% 9,8%
BMO FINANCIAL CORP 3,03%
CONNOR CLARK & LUNN 2,36% Balance Sheet (€ Mln) Mar-10 Mar-11 ∆ % (2010-2011)
FIRST CANADIAN MUTUA 2,30% Total Assets 1.981 2.128 7,5%
FIDELITY MANAGEMENT 2,16% of which Net Fixed Assets 867 915 5,6%
GUARDIAN CAPITAL LP 2,01% N.F.D. 136 290 113,5%
LETKO BROSSEAU & ASS 1,72% Tot Equity 873 705 -19,3%
Market 64,71%
CAE – Canada 416
Revenues Breakdown
Simulation Products 627 649 110 100 17% 15% US 336 353
Training & Services 526 583 90 95 17% 16% Canada 119 156
Total segments 1.153 1.232 200 195 17% 16% UK 112 128
Overhead Costs and Other 0 0 0 0 Rest of Europe 301 269
Group's Result 1.153 1.232 200 213 17% 17% Asia 133 159
*EBIT of each segment does not include overhead costs and other unallocated costs Australia 54 74
Other 98 93
Other
Training & 7% US
Australia
Services 29%
6%
47%
Asia
13%
Simulation Canada
Products Rest of EuropeUK
13%
53% 22% 10%
CAE – Canada 417
Analysis of Results
 In fiscal year 2011, CAE’s total revenues increased by 6.8%, to € 1.2 billion.
 Training & Service revenues increased by 10.7%. The increase over last quarter was mainly attributable to higher
revenue generated in North and South America and to a lesser extent in Europe
 Simulation Products revenues recorded a 3.5% growth. The increase in revenue over last year was mainly due to
strong performance in the Military portion of the business, which saw higher volume on programs executed in
Canada, Germany and the U.S., partially offset by an unfavorable foreign exchange impact.
 Group’s EBIT, in 2011, reached € 213 million, increasing by 7% compared to the previous fiscal year.
 Training & Service EBIT increased by 6%. Segment operating income increased mainly due to higher volume in the
Europe and the Americas.
 Simulation Products EBIT fell by 9% in comparison to 2010. The decrease was primarily due to an unfavorable
foreign exchange impact, a lower utilization of funds from research and development cost-sharing programs and a
decline in project margins, resulting from more challenging market conditions in fiscal 2011 than in fiscal 2010.
 Group’s Net Income, for fiscal year 2011, reached € 121 million, showing a 10.9% increase compared to previous
FY.
418
Esterline Technologies
Esterline Technologies - USA 419
Description
 Esterline Technologies is a specialized manufacturing company serving principally aerospace and defense
markets. Company’s businesses can be divided in three segments:
 AVIONICS & CONTROLS: focuses on technology interface systems for commercial and military
aircraft and similar devices for land-based and sea-based military vehicles, secure communications
systems, specialized medical equipment, and other high-end industrial applications.
 SENSORS & SYSTEMS: produces high-precision temperature and pressure sensors, electrical power
switching, control and data communication devices, micro-motors, motion control sensors, and other
related systems, principally for aerospace and defense customers.
 ADVANCED MATERIALS: develops and manufactures high-performance elastomer products used
in a wide range of commercial aerospace and military applications, combustible ordinance
components and electronic warfare countermeasure devices for military customers, and thermally
engineered components for critical aerospace applications.
 July 27, 2011: Esterline Corporation, a leading specialty manufacturer serving aerospace and defense markets,
announced it has completed the acquisition of France-based Souriau Group (“Souriau”) for approximately
$705 million in cash. Souriau serves the aerospace, defense, power generation, rail, and industrial equipment
markets, and will add to Esterline’s Sensors & Systems segment by category, customer, and geography.
 May 4, 2011: Esterline Corporation, a leading specialty manufacturer serving aerospace and defense markets,
announced it has entered into exclusive negotiations with Sagard Private Equity Partners and other
shareholders and made a binding offer for the acquisition of 100% of the Souriau Group (“Souriau”), a
leading global supplier of highly-engineered connectors for harsh environments. Souriau, which serves the
Aerospace, Defense & Space, Power Generation & Rail, and Industrial Equipment markets, will enhance
Esterline’s Sensors & Systems segment by category, customer, and geography. It will also reinforce Esterline’s
existing presence in France, which presently includes facilities in Bourges, Niort and Sarralbe.
 January 3, 2011: Esterline announced the acquisition of Eclipse Electronic Systems, which strengthens the
company's position in the intelligence, surveillance and reconnaissance (ISR) market.
Esterline
Company Name
Technologies Corp
Management
Richard Bradley Lawrence Chairman/CEO
Currency USD
Frank E Houston Senior Group Vice President
Market Price 59
Robert D George VP/CFO/Treasurer/Secretary
Marcia Mason VP/General Counsel
N.F.D. (€ Mln)@10/31/2011 657
Income Statement (€ Mln) Oct-10 Oct-11 ∆ % (2010-2011)
Sales 1.178 1.326 12,5%
Ebitda 201 218 8,6%
Shareholders
Ebit 145 153 5,2%
Net Income 109 103 -6,3%
Ebitda % Sales 17% 16,4%
RELATIONAL INVESTORS 6,99%
Ebit % Sales 12,3% 11,5%
LORD ABBETT & CO LLC 3,85%
Balance Sheet (€ Mln) Oct-10 Oct-11 ∆ % (2010-2011)
Total Assets 1.997 2.607 30,6%
N.F.D. 148 657 344,7%
NORTHERN TRUST CORPO 2,56%
Tot Equity 1.092 1.214 11,2%
Market 45,27%
Revenues Breakdown

Segment (€ Mln) Oct-10 Oct-11 Oct-10 Oct-11 Oct-10 Oct-11 Geographic Area (€ Mln) Oct-10 Oct-11
Avionics & Controls 610 650 97 104 16% 16% USA 647 734
Sensors & Systems 230 320 26 17 11% 5% Canada 225 249
Advanced Materials 338 356 53 63 16% 18% France 85 138
Total segments 1.178 1.326 176 185 15% 14% UK 206 194
Intersegment and Other 0 0 -31 -32 Rest of world 66 94
Overhead Costs and Other 0 0 0,0 0 Other -53 -84
Other
Sensors & Rest of world -6%
Systems 6%
24% Advanced
Materials
UK
27%
13%
USA
49%
France
9%
Avionics &
Controls
49% Canada
17%
Analysis of Results
 In 2011, Esterline’s total revenues rose 12.5% to € 1.3 billion.
 Avionics & Control segment’s sales improved by 6.6%, which reflected increased sales volumes of avionics systems of
$25 million
 The 38.9% growth in sales reported by the Sensors & Systems segment mainly reflected incremental sales from the
Souriau acquisition in the third quarter of fiscal 2011 of $78 million and increased sales volumes of advanced sensors
of $16 million and power systems of $22 million.
 Advanced Materials segment’s revenues rose 5.5%, principally reflected a $33 million decrease in sales volumes of
defense technologies and a $54 million increase in sales of engineered materials. The decrease in sales of defense
technologies mainly reflected lower sales volumes of countermeasures, principally due to lower requirements from our
non-U.S. customers. The increase in sales of engineered materials reflected strong demand for elastomer and insulation
materials for commercial aerospace applications.
 Esterline’s EBIT reached € 153 million in 2011, increasing 5.2% in comparison to the previous fiscal year.
 Avionics & Control segment’s EBIT improved by 7.4% this reflects increased sales volumes of aviation products.
 Sensors & Systems’ EBIT showed a 33.6% decline on 2011. Souriau incurred an operating loss of $22.4 million,
principally reflecting the inventory fair value adjustment.
 Advanced Materials segment reported a 19.6% increase in 2011, primarily reflecting the increase in engineered
materials.
 Esterline’s Net Income was € 103 million in 2011, an 6.3% decrease compared to previous FY.
424
Xi’an Aircraft
Xi’an Aircraft 425
Description
 Xi’an Aircraft International Corporation manufactures large and mid size aircraft components and
aluminum materials. The Company primarily contracts and produces vertical stable board, horizontal stable
board, front inspection door for Boeing 737 and components for Boeing 747 and ATR-42. Xi’an Aircraft
also produces decorating materials and automibile parts.
Xi'an Aircraft
Company Name
International C
Country CHINA
Currency CNY Management
Market Price 8 Tang Jun Chairman
Number of Outstanding Shares (Mln) 2.478
Jiang Jianjun President
N.F.D. (€ Mln)@12/31/2011 -81
Sales 1.294 1.088 -15,9%
Ebitda 66 41 -37,4%
Shareholders
Ebit 43 15 -64,3%
XI AN AIRCRAFT INDUS 57,07%
Net Income 42 13 -68,8%
CHINA SOUTHERN FUND 1,75%
HONG YUAN SECURITIES 0,81%
E FUND MANAGEMENT 0,79% Ebit % Sales 3,3% 1,4%
YINHUA FUND MANAGEME 0,66% Net Income % Sales 3,3% 1,2%
SHANGHAI MUNICIPAL H 0,61%
BOSHI FUND MANAGEMEN 0,59% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
CHINA ASSET MANAGEME 0,58% Total Assets 2.483 2.603 4,8%
RONGTONG FUND MANAGE 0,56% of which Net Fixed Assets 317 367 15,7%
GUANGFA SECURITIES C 0,31% N.F.D. -115 -81 29,7%
426
Orbital Sciences Corp

Orbital Sciences Corp - USA 427
Description
 Orbital Sciences Corp develops and manufactures small rockets and space systems for commercial, military and civil
government customers, including the U.S. Department of Defense (DoD), the National Aeronautics and Space
Administration (NASA) and other U.S. government agencies. The Group operates through the following operating
segments:
 LAUNCH VEHICLES: involved in developing and producing interceptor launch vehicles, target launch
vehicles and space launch vehicles. Develops and produces rockets that are used as interceptor launch vehicles
for missile defense systems, including interceptor boosters that carry “kill vehicles” designed to defend against
ballistic missile attacks. It also develops and produces small-class launch vehicles that place satellites weighing
up to 4,000 lbs. into low-Earth orbit, including the Pegasus, Taurus and Minotaur space launch vehicles that
are used by commercial, civil government and military customers.
 SATELLITES & SPACE SYSTEMS: involved in developing and producing communication satellites, science
and technology satellites, related subsystems, and space technical services. Main products are small
geosynchronous-Earth orbit satellites that provide cable and direct-to-home television distribution, business
data network connectivity, regional mobile telephony and other space-based communications services and
small- and medium-class low-Earth orbit and other spacecraft that are used to conduct space-related scientific
research, to carry out interplanetary and other deep-space exploration missions, to demonstrate new space
technologies, to collect imagery and other remotely-sensed data about the Earth and to enable national
security applications.
 ADVANCED SPACE SYSTEMS: involved in developing and producing human-rated space systems,
advanced launch systems and satellites and related subsystems primarily used for national security space
programs. Designs and manufactures advanced human-rated systems to be used in Earth orbit, lunar and other
space missions, and advanced launch vehicle systems, including launchers used to boost research test vehicles
and platforms used to test new space technologies.
 TRANSPORTATION MANAGEMENT SYSTEMS: develops and produces fleet management systems that
are used primarily by metropolitan mass transit operators in the United States.
 June 25, 2012: HISPASAT and Orbital Sign Contract for the Construction of Two New Amazonas Satellites.
 April 3, 2012: Orbital Sciences Corporation announced that the U.S. Air Force has exercised an option order
for a Minotaur I space launch vehicle to support the ORS-3 “Enabler” mission for the Operationally
Responsive Space (ORS) Office of the Department of Defense.
 September 1, 2011: Orbital Sciences Corporation, one of the world’s leading space technology companies,
today announced that NASA’s Goddard Space Flight Center (GSFC) has selected the company to design, build
and test the Ice, Cloud and land Elevation Satellite-2 (ICESat-2) Earth science satellite.
 June 13, 2011: Orbital Sciences Corporation announced that THAICOM Plc. has awarded the company a firm
contract for the Thaicom 6 communications satellite. The Thaicom 6 satellite is planned to be launched in mid-
2013.
 May 25, 2011: Orbital Sciences Corporation announced that it was recently awarded a production contract for
seven Coyote supersonic sea-skimming target (SSST) vehicles and related equipment by the U.S. Navy. The
latest order for Orbital’s Coyote target program is in addition to existing production contracts for the Mach
2.5-capable, low-altitude target missile used by the Navy to test fleet self-defense systems against a threat-
representative target. This latest SSST order is the fifth full-rate production contract following a highly
successful five-year development and flight test program. The total value of the new contract is $26.4 million.
 March 10, 2011: Orbital Sciences Corporation announced that it has been awarded a major new contract by the
U.S. Missile Defense Agency (MDA) to supply Intermediate-Range Ballistic Missile (IRBM) target vehicles for
use in future tests of missile defense systems. The seven-year contract, which covers development and
production of up to 22 target rockets and related systems over the 2011-2018 period, has a firm value of
approximately $230 million for the first eight vehicles to be delivered by 2015, with up to $870 million in
contract options for 14 additional vehicles, countermeasures equipment, modeling and simulation support,
logistics activities and launch services to be provided from 2012 to 2018.
Orbital Sciences
Company Name
Corp
Market Price 15 David W Thompson Chairman/President/CEO
Number of Outstanding Shares (Mln) 59 James R Thompson Vice Chairman/Senior Exec Advisor
Market Cap (€ Mln) 685 Garrett E Pierce Vice Chairman/CFO
N.F.D. (€ Mln)@12/30/2011 -99

Sales 999 1.038 4,0%
Ebitda 77 87 13,4%
Shareholders
Ebit 56 62 9,3%
TIMESSQUARE CAPITAL 6,87% Net Income 37 52 42,0%
VANGUARD GROUP INC 5,69% Ebitda % Sales 7,7% 8,4%
BLACKROCK FUND ADVIS 4,42% Ebit % Sales 5,6% 5,9%
SECURITY INVESTORS L 4,00% Net Income % Sales 3,7% 5,0%
NWQ INVESTMENT MANAG 3,94%
BLACKROCK ADVISERS 3,69% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
CI GLOBAL HOLDINGS I 3,16% Total Assets 820 872 6,4%
N.F.D. -98 -99 -0,9%
CLEARBRIDGE ADVISORS 2,62%
Tot Equity 439 496 13,1%
STANDARD LIFE INVEST 2,48%
Market 60,47%
Revenues Breakdown

Launch Vehicles 335 373 16 11 5% 3% USA 836 799
Satellites and Space Systems 383 427 26 29 7% 7% Europe 79 113
Advanced Space Programs 327 335 16 22 5% 7% Americas 72 101
Total segments 1.046 1.135 59 62 6% 5% East Asia & Australia 11 25
Intersegment and Other -47 -97 0 0 Total geographic areas 999 1.038
Overhead Costs and Other 0 0 -2 0
Group's Result 999 1.038 56 62 6% 6%
Advanced Americas East Asia &
Space 10% Australia
Programs 2%
29,5% Launch Europe
Vehicles 11%
32,8%
Satellites and USA

Space Systems 77%
37,6%
Analysis of Results
 During 2011, the Group increased by 4% in revenues from € 999 million in 2010 to € 1 billion, due to higher revenues
in all business segments.
 Launch Vehicles’ revenues grew by 11.2%, due to increased activity on target launch vehicle and space launch vehicle
contracts.
 Satellites & Space Systems segment recorded a 11.4% increase in revenues due to increased activity on
communications satellite contracts and space technical services contracts.
 Advanced Space Programs’ revenues rose by 2.5%, primarily due to increased activity on national security satellite
contracts, partially offset by a decrease in activity on the Orion contract, which was terminated for convenience in the
second quarter of 2010, and decreased activity on the CRS contract.
 The group’s EBIT in 2011 reached € 62 million, up 9.3% compared to the previous fiscal year, due to higher operating
income in the advanced space programs segment and the satellites and space systems segment.
 Launch Vehicles’ operating income decreased to € 11 million in 2011 primarily due to the effect of the Taurus XL
launch failure in March 2011, partially offset by the absence of unrecovered research and development expenses that
were recognized in 2010.
 The 11% increase in operating income for the Satellites & Space Systems segment was primarily due to increased
activity on communications satellite contracts.
 The operating income of the Advanced Space Programs segment increased by 33.3% primarily due to increased
activity on national security satellite contracts.
 Group’s Net Income for fiscal year 2011, was € 52 million, showing a 42% increase compared to the previous fiscal
year.
Players with revenues between € 1 billion and € 100 million 432
 Listed below are the global market players in the Aerospace & Defence sector that in their latest available annual
financial statement, reported revenues between € 1 billion and € 100 million :
CUBIC CORP 992
TRANSDIGM GROUP INC 930
BARNES GROUP INC 902
CHEMRING GROUP PLC 894
ULTRA ELECTRONICS HLDGS PLC 878
SENIOR PLC 769
GENCORP INC 708
HEICO CORP 590
KRATOS DEFENSE & SECURITY 558
OHB AG 556
MAGELLAN AEROSPACE CORP 522
DUCOMMUN INC 448
HEROUX-DEVTEK INC 287
UMECO PLC 268
AEROVIRONMENT INC 251
HAMPSON INDUSTRIES PLC 237
LMI AEROSPACE INC 196
ASTRONICS CORP 176

Players with revenues between € 1 billion and € 100 million 433
 The following table includes share market price (and variation over 3, 6 and 12 months), Market Cap, Net
Financial Debt and EV for players with revenues between € 1 billion and € 100 million.

CUBIC CORP USD 50,8 26,74 1.359 1.038 -261,6 776 14,2 10,7 24
TRANSDIGM GROUP INC USD 145,6 51,46 7.493 5.722 2.131,2 7.853 17,2 26 58
BARNES GROUP INC USD 25,9 53,97 1.400 1.069 218,8 1.288 8 -5 16,6
CHEMRING GROUP PLC GBp 354,70 193,29 686 849 315,1 1.164 10 -19 -35
ULTRA ELECTRONICS HLDGS PLC GBp 1.651,0 69,18 1.142 1.415 55,4 1.470 1 -7 16
SENIOR PLC GBp 211,10 413,24 872 1.081 111,6 1.192 15 6 42
GENCORP INC USD 10,0 59,70 595 455 106,8 561 69,6 57,0 141
HEICO CORP USD 37,82 21,33 807 616 17,5 634 -2 -12 -5
KRATOS DEFENSE & SECURITY USD 5,07 56,53 287 219 434,6 653 -7 -18 -42
OHB AG EUR 14,2 17,47 248 248 -31,4 217 15 6 38
MAGELLAN AEROSPACE CORP CAD 3,8 58,21 224 175 65,4 241 19,6 14 13
DUCOMMUN INC USD 14,4 10,59 153 117 270,7 387 76 3 -16,6
HEROUX-DEVTEK INC CAD 12,50 30,46 381 299 43,1 342,0 62 45 63
UMECO PLC * GBp 6,76 48,49 3 4 -10,3 -6,3 n/a n/a n/a
AEROVIRONMENT INC USD 23,0 22,26 512 391 -109,1 282,3 -2,2 -16 -23
HAMPSON INDUSTRIES PLC GBp 1,9 279,30 5 7 111,5 118,1 -90,5 -95,0 -99
LMI AEROSPACE INC USD 20,78 11,98 249 190 -6,0 184,0 23 8 9
ASTRONICS CORP USD 7,20 9,78 70 54 17,2 71,0 10,9 -12,1 1,0
* Data refer to 18/07/2012, after that the Company has been delisted
434
Cubic Corporation
Cubic Corporation - USA 435
Description
 Cubic's businesses are primarily engaged in the design, development, manufacture, integration, and
sustainment of high technology systems, products, and services for government and commercial customers.
 Cubic is a global leader in defense, and transportation systems and services, and is an emerging supplier of
smart card and RFID solutions. The company operates through the following segments:
 MISSION SUPPORT SERVICES - an industry leader in providing comprehensive support services

for all echelons of national militaries and security forces in the U.S. and allied nations.
 CUBIC DEFENSE APPLICATIONS - the leading provider of live air and ground combat training
systems worldwide, a key supplier of virtual and immersive training systems, communications and
electronics products, and an emerging provider of cyber technologies and global tracking solutions
for commercial and national military customers.
 CUBIC TRANSPORTATION SYSTEMS - the leading provider of revenue collection management
systems and services worldwide.
 July 18, 2012: The U.S. Air Force has awarded Cubic Applications Inc., a mission support services subsidiary of
Cubic Corporation, a contract to support the Air Advisor Academy located at Joint Base McGuire-Dix-
Lakehurst, New Jersey.
 April 24, 2012: Cubic Transportation Systems, a business segment of San Diego-based Cubic Corporation has
been awarded, through its Australian division, a three-year contract to provide expanded operations,
maintenance of ticketing equipment, infrastructure and delivery of associated services for passenger rail
operations in Sydney. The maximum value of the services to be provided by Cubic to RailCorp (Rail
Corporation New South Wales) under the contract is expected to be approximately $65 million.
 February 2, 2012: Cubic Defense Applications, a defense systems business of Cubic Corporation (NYSE:
CUB), has been awarded a new contract with a value of over $30 million for its P5 Combat Training
System/Tactical Combat Training System (P5CTS/TCTS).
 January 4, 2012: Cubic Applications, Inc. (CAI) is one of 29 companies awarded an indefinite-
delivery/indefinite-quantity contract from the U.S. Air Force worth a maximum of $4.7 billion.
 December 12, 2011: Cubic Corporation announced that it has signed a prime contract with a major Middle
East customer to provide comprehensive marksmanship and small arms training capabilities for worth more
than $120 million.
 December 6, 2011: Cubic Global Tracking Solutions, the asset tracking and monitoring division of Cubic
Corporation, has been awarded a contract of approximately $3.5 million for the U.S. Army to expand the use
of the Next Generation Wireless Communications (NGWC) solution.
 November 2, 2011: Cubic Worldwide Technical Services, Inc., a subsidiary of Cubic Corporation, has been
awarded a contract worth $19.8 million to provide a variety of training and support services to the Marine
Corps Aviation Training System (MCATS) program.
Company Name Cubic Corp

Market Price 51 Walter Zable Chairman
Number of Outstanding Shares (Mln) 27 Wiliam Boyle Senior VP/CFO/Interim Pres/CEO
Market Cap (€ Mln) 1.042 James Edwards VP/Secretary/General Counsel
N.F.D. (€ Mln)@12/31/2011
09/30/2011 -262
Income Statement (€ Mln) Sep-10 Sep-11 ∆ % (2010-2011)
Sales 921 992 7,6%
Ebitda 93 104 12,2%
Shareholders
Ebit 81 87 6,5%
ZABLE QTIP MARITAL T 19,21% Net Income 54 65 20,0%
ZABLE SURVIVORS TRUS 12,03% Ebitda % Sales 10,0% 10,5%
ROYCE AND ASSOCIATES 7,65% Ebit % Sales 8,8% 8,7%
AMERIPRISE FINANCIAL 2,45% Balance Sheet (€ Mln) Sep-10 Sep-11 ∆ % (2010-2011)
NEW JERSEY DIVISION 2,32% Total Assets 667 740 10,9%
ALLIANZ GLOBAL INV O 2,23% of which Net Fixed Assets 37 37 2,1%
N.F.D. -277 -262 5,6%
ZABLE WALTER C 1,68%
Tot Equity 376 426 13,1%
Market 44,80%
Revenues Breakdown
Segmento (€ Mln) set-10 set-11 set-10 set-11 set-10 set-11 Geographic Area (€ Mln) set-10 set-11
Transportation Systems 298 320 42 43 14% 13% United States 597 544
Defense Systems 280 303 22 29 8% 10% UK 167 205
Mission Support Services 342 367 20 19 6,0% 5,0% Canada 6 20
Totale Segmenti 920 991 85 91 9% 9% Australia 47 89
Intersegment and Other 2 1 0 0 Middle East 21 27
Overhead Costs and Other 0 0 -3 -4 Far East 63 65
Group's Result 921 992 81 87 8,8% 8,7% Other 20 40
*EBIT of each segment does not include overhead costs and other unallocated costs Totale Aree Geografiche 921 992

Far East Other
6% 4%
Middle East
Mission 3%
Support Transportation Australia
Services Systems 9%
37% 32% Canada
2% United States
55%
Defense
Systems UK
31% 21%
Analysis of Results
 During 2011, the Group increased by 7.6% in revenues from € 921 million in 2010 to € 992 million, due to growth in
all three business segments.
 Transportation Systems’ revenues grew by 7.6%. The overall increase in sales was primarily due to higher revenue
from new contract in Vancouver, B.C. Canada, contract with Transport for London (TfL) and contracts in Sydney and
Brisbane, Australia.
 Defense Systems segment recorded a 8.2% increase in revenues. Higher sales from air combat training, ground
combat training, and MILES (Multiple Integrated Laser Engagement Simulation) equipment all contributed to the
increase.
 Mission Support Services’ revenues rose by 7.3%. The acquisition of Abraxas in December 2010 added $50.0 million
to sales for 2011. Sales growth was also driven by increased activity in support of homeland security under our
Seaport-e contract, and in support of instruction and maintenance of flight simulators.
 The group’s EBIT in 2011 reached € 87 million, up 6.5% compared to the previous fiscal year, mainly due to higher
sales in Defense Systems segment.
 Transportation Systems’ operating income increased to € 43 million in 2011. Operating income was higher on
increased revenue from contracts in the U.K. and Australia.
 Defense Systems’ operating income rose € 29 million, up 32%. The growth in operating income was primarily
attributable to improved margins from the sale of a ground combat training system to a customer in the Far East.
 The operating income of the Mission Support Services segment decreased by 9.4%, mainly due to operating loss of
$3.5 million for 2011 of . Lower revenue from certain higher margin training and education contracts also contributed
to the decrease in operating income for 2011.
 Group’s Net Income for fiscal year 2011, was € 65 million, showing a 20% increase compared to the previous fiscal
year.
440
TransDigm Group Inc.

TransDigm Group Inc. - USA 441
Description
 Transdigm Group Incorporated, through its wholly owned subsidiaries, is a global designer, producer and
supplier of engineered aircraft components for use in commercial and military aircraft.
 Transdigm’s parts are designed into and sold as original aircraft equipment, and they generate recurring
aftermarket revenue over the lives of the aircraft, which average about 30 years. Approximately 60% of
their revenues are generated from aftermarket sales, and more than 95% of their sales are of proprietary
products for which they own the design. In addition, approximately 80% of sales are from products for
which Transdigm are the sole source supplier. They provide components for a large, diverse installed base
of aircraft and are not overly dependent on any single airframe.
 Major product offerings include ignition systems and components, gear pumps,
mechanical/electromechanical actuators and controls, NiCad batteries/chargers, power conditioning
devices, hold-open rods and locking devices, engineered connectors, engineered latches and cockpit
security devices, lavatory hardware and components, specialized AC/DC electric motors and specialized
valving.
 February 15, 2012: TransDigm Group Incorporated announced that it has completed the acquisition of
AmSafe Global Holdings, Inc. ("AmSafe"), for a total purchase price on a cash free, debt free basis of
approximately $750 million in cash from a group controlled by Berkshire Partners LLC and Greenbriar
Equity Group LLC.
 December 9, 2011: TransDigm Group Incorporated announced that it has completed the acquisition of
Harco Laboratories, Incorporated (Harco or the Company) for approximately $84 million in cash.
 August 31, 2011: TransDigm Group Incorporated announced that it has completed the acquisition of
Schneller Holdings LLC (Schneller or the Company), from an affiliate of Graham Partners, Inc., for
approximately $288.5 million in cash.
 August 5, 2011: TransDigm Group Incorporated, announced that it has entered into a definitive agreement
to acquire Schneller Holdings LLC (Schneller or the Company), from an affiliate of Graham Partners, Inc.,
for approximately $288.5 million in cash. Schneller, headquartered in Kent, Ohio, manufactures
proprietary, highly engineered laminates for commercial aircraft. The Company expects calendar 2011
revenues to be approximately $84 million, derived two-thirds from the commercial aftermarket with the
balance from commercial OEM.
 April 8, 2011: TransDigm Group Incorporated, a leading global designer, producer and supplier of highly
engineered aircraft components, announced that it has completed the divestiture of Aero Quality Sales to
Satair A/S for approximately $30 million in cash. AQS was part of the McKechnie Aerospace acquisition
which closed in December 2010.
 March 9, 2011: TransDigm Group Incorporated, a leading global designer, producer and supplier of highly
engineered aircraft components, announced that it has completed the divestiture of its fastener businesses
to Alcoa Inc. for approximately $240 million. The businesses, which were acquired as part of the
McKechnie Aerospace acquisition, design and manufacture fasteners, fastening systems and bearings for
commercial, military and general aviation aircraft.
Company Name TransDigm Group Inc

Management
Currency USD
W Nicholas Howley Chairman & CEO
Market Price 146
Raymond F Laubenthal President & COO
Gregory Rufus Exec VP/CFO/Secretary
Market Cap (€ Mln) 5.504 James Riley Executive VP
N.F.D. (€ Mln)@09/31/2011 2.131
Enterprise Value (€ Mln) 7.635 Income Statement (€ Mln) Sep-10 Sep-11 ∆ % (2010-2011)
Source: Bloomberg @ 14/09/2012 Sales 639 930 45,7%
LONE PINE CAPITAL LL 6,75% Ebit 280 376 34,2%
BERKSHIRE PARTNERS L 6,02% Net Income 126 133 5,3%
PENNANT CAPITAL MANA 4,61% Ebitda % Sales 47,5% 45,4%
WILLIAM BLAIR & COMP 3,31%
Balance Sheet (€ Mln) Sep-10 Sep-11 ∆ % (2010-2011)
SELECT EQUITY GROUP 2,55%
Total Assets 2.066 3.482 68,6%
JENNISON ASSOCIATES 2,54%
MAVERICK CAPITAL LTD 2,36%
N.F.D. 1.186 2.131 79,7%
BLACKROCK INSTITUTIO 2,21% Tot Equity 458 626 36,8%
Market 62,79%
Analysis of Results
 The Financial Data refer to the Aircraft Components Segment.

 In 2011, Transdigm group recorded a net sales increase of 45.7% to € 930 million. This increase is primarily due to
recent acquisitions of Dukes Aerospace and Semco Instruments, with organic sales up 12.3%.
 Group’s EBITDA increased 39.3% for the fiscal year 2011, reaching € 422 million, as a result of acquisitions.
 Group’s Net Income, for fiscal year 2011, was € 133 million, an increase or 5.3% from the 2010 financial year.
445
Barnes Group Inc

Barnes Group - USA 446
Description
 Barnes Group Inc. is an international aerospace and industrial components manufacturer and logistics
services company serving a wide range of end markets and customers. The products and services provided
by Barnes Group are critical components for far-reaching applications that provide transportation,
communication, manufacturing and technology to the world.
 Barnes Group has a globally diversified business model and operates under three reportable business
segments:
 AEROSPACE – a producer of precision-machined and fabricated components and assemblies for
original equipment manufacturer (“OEM”) turbine engine, airframe and industrial gas turbine builders
throughout the world, and for the military; a provider of jet engine component overhaul and repair
services for many of the world’s major turbine engine manufacturers, commercial airlines and the
military; and a manufacturer and provider of aerospace aftermarket spare parts and the repair of
aerospace engine components.
 INDUSTRIAL – a global supplier of high quality manufactured precision components for critical
applications serving diverse industrial end markets, such as transportation, energy, electronics, medical
and consumer products.
 DISTRIBUTION –an industry leader in logistics support through vendor managed inventory and
technical sales for maintenance, repair, operating and production supplies, as well as the design,
manufacture and distribution of engineered supplies for the global industrial base.
Strategic Development
 July 16, 2012: Barnes Group Inc. announced that it has entered into a definitive agreement to acquire
privately held Synventive Molding Solutions, a leading designer and manufacturer of highly engineered and
customized hot runner systems, components, and services.
 February 6, 2012: Barnes Group Inc. announced that its Barnes Aerospace, Ogden, Utah Division, has been
awarded the prestigious Shingo Silver Medallion award from The Shingo Prize for Operational Excellence.
 January 3, 2012: Barnes Group Inc. announced that on December 30, 2011, it completed the sale of its
Barnes Distribution Europe (“BDE”) business to Berner SE in a cash transaction for approximately $33
million.
Company Name Barnes Group Inc

Currency USD Thomas Barnes Chairman
Market Price 26 Gregory Milzcik President & CEO
Number of Outstanding Shares (Mln) 54 Patrick Dempsey Senior VP & COO
Market Cap (€ Mln) 1.080 Cristopher Stephens Jr Senior VP/Finance/CFO
N.F.D. (€ Mln)@12/31/2011 219
Ebit 67 98 47,6%
BARNES GROUP RETIREM 5,78%
Ebit % Sales 8,4% 10,9%
ALLIANZ GLOBAL INV O 4,89%
BARNES THOMAS O 4,45%
ALGER MANAGEMENT INC 3,72%
Total Assets 1.083 1.111 2,6%
SNOW CAPITAL MANAGEM 3,59% N.F.D. 266 219 -17,6%
HEARTLAND ADVISORS I 3,40% Tot Equity 549 557 1,4%
Market 50,44%
Revenues Breakdown

Segmento (€ Mln) dic-10 dic-11 dic-10 dic-11 dic-10 dic-11 Geographic Area (€ Mln) dic-10 dic-11
Logistics and Manufacturing Services 342 380 30 50 9% 13% United States 541 591
Precision Components 460 530 36 48 8% 9% International 284 341
Totale Segmenti 802 911 67 98 8% 11% Other -32 -29
Intersegment and Other 0 0 0 0 Totale Aree Geografiche 794 902
Overhead Costs and Other -9 -8 0 0
Group's Result 794 902 67 98 8,4% 10,9%
Other
-3%
Logistics and International

Precision Manufacturing 36%
Components Services
58% 42% United States
61%
Analysis of Results
 During 2011, the Group increased by 13.7% in revenues from € 794 million in 2010 to € 902 million, primarily due to
organic sales growth in Precision Components .
 Logistics and Manufacturing Services’ revenues grew by 11% reaching to € 380 million from € 342 million in 2010.
The improvement was due to the organic sales growth, the positive impact of foreign currency translation and to the
growth in aerospace aftermarket business.
 Precision Components segment recorded a 15.4% increase in revenues primarily due to organic sales increase driven
by increases in the industrial manufacturing business based in North America and Europe, that reflect improvements
in the transportation industry, including automotive, and sales in aerospace OEM business.
 The group’s EBIT in 2011 reached € 98 million, up 47.6% compared to the previous fiscal year.
 Logistics and Manufacturing Services’ operating profit increased to € 50 million in 2011, up 66% compared to 2010.
This increase was driven primarily by the profit impact of higher sales volume.
 The EBIT of Precision Components segment increased by 33% primarily due to the profit impact of higher sales
levels in 2011 combined with productivity improvements and lean initiatives. Operating profit increases were partially
offset by higher costs associated with investments in new product introductions and outsourcing certain
manufacturing processes.
 Group’s Net Income for fiscal year 2011, was € 49.9 million, showing a 21.5% increase compared to the previous
fiscal year.
451
Chemring PLC
Chemring PLC – UK 452
Description
 Chemring is a global group that specialises in the manufacture of energetic material products,
countermeasures and counter-IED solutions. It operates two divisions and is present in four market sectors.
 COUNTERMEASURES: Chemring is the world leader in the design, development and manufacture
of advanced expendable countermeasures and countermeasure suites for protecting air, sea and land
platforms against guided missile threats.
 ENERGETICS: Which includes:

• COUNTER-IED: Chemring is the leading supplier of vehicle–mounted Ground Penetrating
Radar (GPR) detection systems and has advanced technologies in other IED detectors and
counter-IED electronic countermeasures. The company manufactures high reliability detonators,
initiators and disrupters for demolition and explosive ordinance disposal.
• PYROTECHNICS: Chemring is a leading developer and manufacturer of pyrotechnics for
space, safety systems, military training, screening, signalling and illumination applications.
• MUNITIONS: Chemring offers a unique capability in supplying energetic materials,
components and sub-systems to leading prime contractors. The company also operates as a
prime contractor in certain market niches.
 July 2, 2012: Alloy Surfaces Company, Inc. (ASC) of Chester Township, Pennsylvania, a Chemring Group
PLC subsidiary, announces a $7.631M contract for the manufacture of MJU-50/B decoy devices to the
United States Air Force (USAF).
 May 1, 2012: Chemring Group PLC is pleased to announce that its UK subsidiary, Chemring
Countermeasures Ltd, has been awarded a five year long term partnering agreement worth £21 million, with
options for a further £38 million over the contract period.
 April 9, 2012: Kilgore Flares Company LLC, a Chemring Group company, has been awarded a contract worth
$36.4M for three types of airborne expendable decoy flares (countermeasures) from the US Army’s Rock
Island Contracting Center.
 January 13, 2012: Chemring Group PLC is pleased to announce that its Italian subsidiary, Simmel Difesa
S.p.A., has been awarded further contracts to the value of €38 million for the delivery of 81mm pyrotechnic
illumination mortar rounds
 September 29, 2011: Chemring Group PLC is pleased to announce that its US subsidiary, Non-Intrusive
Inspection Technology, Inc., has been awarded a $49.5 million contract from the US Army to supply spare
parts for the Husky Mine Detection System, in support of US peacekeeping operations around the world.
 September 2, 2011: Chemring Group PLC is pleased to announce that its US subsidiary, Chemring Ordnance,
Inc. of Perry, Florida, has been awarded a second option under its contract to manufacture the MK7 MOD 2
Anti-Personnel Obstacle Breaching System for the US Army and Marine Corps. The contract has a total
estimated value in excess of $150 million over three years if all option quantities are exercised.
 April 20, 2011: Chemring Group PLC announces that it has conditionally agreed to acquire the Detection
Systems operations and certain related assets of General Dynamics Armament and Technical Products, a
subsidiary of General Dynamics Corporation, for a total cash consideration of US$90.0 million (£55.2
million).
Management
Chemring Group
Company Name Peter C F Hickson Chairman
PLC
David J Price CEO
Country BRITAIN
Nigel Young Interim CFO
Currency GBp
Market Price 355
Number of Outstanding Shares (Mln) 193 Income Statement (€ Mln) Oct-10 Oct-11 ∆ % (2010-2011)
Market Cap (€ Mln) 823 Sales 716 894 24,8%
N.F.D. (€ Mln)@10/31/2011 315 Ebitda 184 195 5,7%
Enterprise Value (€ Mln) 1.138 Ebit 147 142 -3,6%
Source: Bloomberg @ 14/09/2012 Net Income 80 89 10,8%
Shareholders Ebitda % Sales 26% 22%
INVESCO LTD 29,65% Ebit % Sales 21% 16%
OLD MUTUAL ASSET MAN 5,16% Net Income % Sales 11,2% 9,9%

Balance Sheet (€ Mln) Oct-10 Oct-11 ∆ % (2010-2011)
PRUDENTIAL PLC 4,70%
Total Assets 1.211 1.373 13,4%
BLACKROCK INC 3,95%
N.F.D. 369 315 -14,6%
Revenues Breakdown

Segment (€ Mln) Oct-10 Oct-11 Oct-10 Oct-11 Oct-10 Oct-11 Geografic Area (€ Mln) Oct-10 Oct-11
Energetics 481 653 107 126 22% 19% USA 352 384
Countermeasures 236 241 71 56 30% 23% UK 134 155
Total Segments 716 894 177 182 25% 20% Europe 87 96
Intersegment and Other 0 0 -30 -41 Middle & Far East 62 167
Overhead Costs and Other 0 0 0 0 Australia 53 61
Group's Result 716 894 147 142 21% 16% Rest of World 29 31
*EBIT of each segment does not include overhead costs and other unallocated costs Total geographic areas 716 894
Rest of World
Australia 3%
Countermeasur 7%
es
27%
Middle & Far
East USA
19% 43%
Energetics
73%
Europe
11%
UK
17%
Analysis of Results
 Chemring revenues for 2011 climbed 24.8% from 2010 to € 894 million, due to the acquisition of of Chemring
Detection Systems and the growth in Organic revenue.
 Increases in sales were recorded in both divisions: Countermeasures revenues totaled € 241 million in 2011, up from
€ 236 million in 2010, due to increased revenue at NIITEK for HMDS spares and support. Energetics turnover in
2011 reached € 653 million, up from € 481 million in 2010 as a result of a growth in munitions revenue.
 Group’s EBIT in 2011 decreased by 3.6% to € 142 million compared to FY 2010.
 The Countermeasures operating profit decreased by 21% largely due to lower demand for decoys at Alloy Surfaces,
while Energetic operating income increased by 18%.
 Group’s Net Income, for fiscal year 2011, was € 89 million, an increase of 10.8% from the 2010 figure.
457
Ultra Electronics
Ultra Electronics – UK 458
Description
 Ultra Electronics is an internationally successful defence, security, transport and energy company that
offers support to its customers through the design, delivery and support phases of a programme.
Operationally, the Group is organised into three business units:
 AIRCRAFT & VEHICLE SYSTEMS: Ultra specialises in high integrity real-time control systems for
aircraft and vehicle applications. These include airframe ice protection, power distribution and
control equipment and noise and vibration cancellation systems. The Group also supplies advanced
human-machine interfaces and systems, including those to control uninhabited ground and air
vehicles. Ultra provides innovative small power sources including miniature pneumatic systems,
propane-powered fuel cells and multi-fuel UAV engines.
 INFORMATION & POWER SYSTEMS: Ultra supplies advanced command and control systems
for battlespace visualisation, air defence and naval combat management. The Group provides
perimeter security solutions for critical infrastructure, crisis response planning and management
software and secured networks. Ultra’s high integrity sensors and control systems are used for civil
and military nuclear reactors and a range of specialist, solid state electrical power systems are used
for naval vessels and mass transit. Ultra is a world-leading supplier of airport and airline management
and information systems.
 TACTICAL & SONAR SYSTEMS: Ultra supplies advanced high capacity communication systems
and tactical surveillance equipment to support network enabled warfare. Specialist areas include data
links, encryption for information assurance and electronic warfare. The Group also supplies world-
leading acoustic systems, equipment and products to meet the challenges of the underwater
battlespace. These include advanced sonar, anti-submarine warfare and torpedo defence systems.
Ultra has developed a range of highly efficient acoustic hailing devices.
 June 27, 2012: Ultra announces that it has agreed to acquire Barron McCann Technology Limited and Barron
McCann Payments Ltd (“BeMac”) for a cash consideration of £12m.
 June 8, 2012: Ultra announces that its Ocean Systems business, based in Braintree, Massachusetts, USA, has been
awarded an Indefinite Delivery, Indefinite Quantity (IDIQ) contract worth up to $49.2m by the US Navy.
 June 7, 2012: Ultra announces that it has agreed to acquire the power conversion business operated by RFI
Corporation (“RFI”), a wholly-owned subsidiary of DGT Holdings Corp., for a cash consideration of $12.5m
(subject to a potential working capital adjustment).
 May 30, 2012: Ultra announces that it has acquired Giga Communications Ltd (“Giga”) and associated businesses
in Australia and the USA for an initial cash consideration of £12.4m.
 April 11, 2012: Ultra Electronics, TCS, based in Montreal, Canada, has been awarded an order for Electronic
Warfare equipment totalling $3.4 million. The system will be delivered to the Defence Avionics Research
Establishment (DARE) in Bangalore, India. Ultra TCS will supply a shelter-based, mobile simulator system
including an integrated antenna.
 February 2, 2012: Ultra announces that its USSI business, based in Columbia City, Indiana, US, has received US
Navy contracts for sonobuoys worth just over $20m.
 December 5, 2011: Ultra announces that it has acquired Special Operations Technology, Inc. (“SOTECH”) for a
cash consideration of $38.4m. SOTECH offers turnkey communications surveillance systems, integrating
proprietary and commercial-off-the-shelf data analytic tools to manage large volumes of data from mobile, fixed
line and broadband networks.
 December 5, 2011: Ultra announces that it has acquired Zu Industries Inc. (“Zu”) for a cash consideration of
$76.6m. Zu specialised in the provision of equipment for cyber surveillance systems.
 October 19, 2011:.Under the patronage of the British Embassy, the official launch of Ultra Electronics Qatar
LLC was held at the „W‟ Hotel, Doha on Tuesday 18th October 2011. The event was opened by the British
Ambassador to Qatar, His Excellency Mr John Hawkins. The Company is a joint venture between Oryx Energy
Projects and Services and Ultra Electronics Holdings plc and has a local office in West Bay, Doha.
Ultra Electronics
Company Name
Holdings PLC
Country BRITAIN
Market Price 1.651 Douglas Caster Chairman
Number of Outstanding Shares (Mln) 69 Rakesh Sharma CEO
Paul Dean Finance Director
N.F.D. (€ Mln)@12/31/2011 55
Sales 852 878 3,1%
Ebitda 145 162 11,8%
Shareholders
Ebit 107 116 8,0%
SCHRODER INVESTMENT 7,34%
Net Income 80 79 -0,7%
ARTEMIS INVESTMENT M 5,05% Ebitda % Sales 17,0% 18,5%
M&G INVESTMENT MANAG 4,98% Ebit % Sales 12,6% 13,2%
MONDRIAN INVESTMENT 4,83% Net Income % Sales 9,3% 9,0%
THREADNEEDLE ASSET M 4,83%
F&C ASSET MANAGEMENT 4,77% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
SCHRODER INVESTMENT 4,75% Total Assets 784 931 18,7%
ARTEMIS INVESTMENT M 4,73% of which Net Fixed Assets 54 58 7,1%
BLACKROCK INC 4,21% N.F.D. -21 55 n/a
NORGES BANK 4,05% Tot Equity 292 342 17,3%
Market 50,46%
Revenues Breakdown

Tactical & Sonar 374 370 71 73 19% 20% North America 449 426
Information & Power 269 308 33 37 12% 12% UK 231 258
Aircraft & Vehicle 209 199 28 37 13% 19% Mainland Europe 92 112
Total segments 852 878 132 147 16% 17% Rest of World 81 81
Intersegment and Other 48 71 -25 -30 Total geographic areas 852 878
Overhead Costs and Other -48 -71 0 0
Group's Result 852 878 107 116 13% 13%
Rest of World
Aircraft & 9%
Vehicle
24% Mainland Europe
13%
Tactical &
North America
Sonar
49%
41%
Information &
Power
35% UK
29%
Analysis of Results
 Ultra Electronics’ revenues for 2011 grew 3.1% to € 878 million.
 Information & Power Systems revenues in 2011 grew by 15% to € 308 million from € 269 million in 2010.
 Tactical & Sonar Systems revenues showed slight decline to € 370 million, down 1%, from € 374 million in 2010
affected by defence procurement delays in the US.
 Aircraft & Vehicle revenues fell by 5% to € 199 million in 2011, from € 209 million in 2010, due to the reductions in
the period in the rate of production of hand controls for remote weapon systems.
 Group’s EBIT in 2011 was € 116 million. This was up 8% from 2010.
 Information & Power Systems operating profit increased by 11% to € 37 million from 33 million in 2010.
 Tactical & Sonar Systems operating profit grew 2% as a result of tracked sales volume and redundancy costs were
recognised in some businesses.
 Aircraft & Vehicle operating profit increased by 33% to € 37 million, reflecting the lower level of reinvestment in
the development of aircraft equipment, the improved US dollar hedged rate and accounting for activities in the UAE
as an associated undertaking.
 Group’s Net Income for fiscal year 2011 was stable at € 79 million comparing to 2010 figure.
463
Senior PLC
Senior PLC – UK 464
Description
 Senior PLC operates through two divisions, Aerospace and Flexonics:
 AEROSPACE:
• Fluid Conveyance Systems: Delivery of air, hydraulic fluids and fuel to critical airborne system
functions. Capability for “end to end” delivery systems in a range of composite and metallic
materials. Design of maintenance-free product solutions for harsh environments that are subject
to high temperatures, pressures and vibration levels.
• Sturctures: Focus on precision machined products and assemblies for airframe structures and
systems. Ability to replace complex assemblies with single piece monolithic parts. Adding value
by kitting and assembling for original equipment manufacturers.
• Gas Turbine Engines: Manufacture of precision engineered products that operate in a mission-
critical, harsh environment. Provision of engine core, ancillary systems and related structural
products to major engine manufacturers. Adding value through the development of advanced
manufacturing processes.
 FLEXONICS:
• Land Vehicle Emission Control: Focus on development of emission control products for the
truck and off-highway transport sector as well as select passenger vehicle applications. Adding
value through design of engineered products for customers to meet an increasingly stringent
regulatory environment.
• Industrial Process Control: Design and manufacture of fluid conveyance products for a range of
industrial process control applications mainly in the petrochemical and power generation
industries. Significant exposure to maintenance and upgrade requirements including provision of
on-site services. Increasing development of heat exchanger technologies for increased fuel
efficiency and to meet tightening emission standards.
Company Name Senior PLC
Country BRITAIN
Market Price 211 Charles Andrew Berry Chairman
Number of Outstanding Shares (Mln) 413 Mark Rollins CEO
Market Cap (€ Mln) 1.046 Simon Nicholls Group Finance Director
N.F.D. (€ Mln)@12/31/2011 112

Sales 680 769 13,0%
Ebitda 103 128 23,9%
Shareholders
Ebit 73 100 36,1%
BLACKROCK INC 13,79%
BLACKROCK INV MANAGE 12,38%
BLACKROCK GROUP LIMI 8,29%
Ebit % Sales 10,8% 13,0%
HENDERSON GLOBAL INV 7,28%
LLOYDS BANKING GROUP 6,91%
SCOTTISH WIDOWS INVE 6,10%
LEGAL & GENERAL GROU 5,10%
Total Assets 605 707 16,9%
KAMES CAPITAL PLC 3,14%
N.F.D. 77 112 45,8%
HENDERSON INVESTORS 3,07%
Tot Equity 271 332 22,3%
Market 30,11%
Revenues Breakdown

Aerospace 400 459 44 66 11% 14% North America 368 410
Flexonics 280 310 38 43 14% 14% UK 74 83
Total segments 680 769 82 108 12% 14% Rest of World 238 276
Overhead Costs and Other 0 0 -9 -9 Total geographic areas 680 769
Group's Result 680 769 73 100 11% 13%
Flexonics Rest of World

40% North America
36%
53%
Aerospace
60%
UK
11%
Analysis of Results
 Senior revenues for 2011 grew 13% from 2010 to € 769 million. This increase included £19.6m from acquisitions,
£15.6m of which related to the acquisitions of Damar and Weston in the Group’s Aerospace Division during the year
plus an additional £4.0m relating to incremental revenue from WahlcoMetroflex which was acquired in the Flexonics
Division in August 2010.
 Aerospace division revenues increased by 14.7% totaling € 459 million in 2011, from € 400 million in 2010. This was
due to an increase in sales to the principal Boeing and Airbus aircraft platforms.
 Flexonics turnover touched € 310 million in 2011 (+11%), compared to € 280 million in 2010. This was due to the
acquisition of WahlcoMetroflex , the increas in demand in most of its key land vehicle markets and the increase in
total sales of land vehicle components.
 Group’s EBIT in 2011 grew by 36.1% reaching € 100 million.
 Aerospace division's EBIT totaled € 66 million in 2011, up 49%, from € 44 million in 2010. This increases arose due
to a combination of the beneficial impact of increased volumes on core programmes and further success with the
Group’s operational excellence initiatives derived from the continued implementation of Lean Manufacturing
methodologies in all operations.
 Flexonics division’s EBIT was € 43 million for the year versus € 38 million in 2010 as a result of the overall increase
in volume.
 Group’s Net Income for fiscal year 2011 was € 66 million, an increase of 36.1% from the 2010 figure.
468
GenCorp
GenCorp - USA 469
Description
 GenCorp is a technology-based manufacturer of aerospace and defense systems with a real estate business
segment that includes activities related to the sale, and leasing of its excess real estate assets. Its continuing
operations are organized into two segments:
 AEROSPACE & DEFENSE: includes the operations of Aerojet-General Corporation, or Aerojet, which
develops and manufactures propulsion systems for defense and space applications, armament systems for
precision tactical weapon systems and munitions applications. GenCorp is one of the largest providers of
propulsion systems in the US and the only company that provides both solid and liquid propellant based
systems. Primary customers served include major prime contractors to the United States government, the
Department of Defense (DoD), and the National Aeronautics and Space Administration (NASA). The
segment operates in two broad industry sectors:
• Defense systems: including liquid, solid and air-breathing propulsion for strategic and tactical
missiles, precision strike missiles and interceptors required for missile defense. In addition, Aerojet is
a supplier of armament systems and both composite and metallic aerospace structural components
to the DoD and its prime contractors and fire suppression systems for DoD vehicles and police
cruisers.
• Space systems: including liquid, solid and electric propulsion systems for launch vehicles,
transatmospheric vehicles and spacecraft. Product applications for space systems include liquid
engines for expendable and reusable launch vehicles, upper stage engines, satellite propulsion, large
solid boosters and integrated propulsion subsystems.
 REAL ESTATE: includes the activities related to the re-zoning, sale, and leasing of Group’s real estate
assets.
GenCorp - USA 470
 July 23, 2012: GenCorp Inc. announced that it has signed a definitive agreement to acquire Pratt & Whitney
Rocketdyne (PWR) from United Technologies Corporation for $550 million.
 February 24, 2012: Aerojet, a GenCorp company, provided its solid rocket boosters to the United Launch
Alliance (ULA) Atlas V launch vehicle for the inaugural launch of the U.S. Navy's five-satellite Mobile User
Object System (MUOS).
 Nov. 21, 2011: Aerojet, a GenCorp company, announced today that it has been competitively selected by
Raytheon Missile Systems to complete the development of the Throttling Divert and Attitude Control System
(TDACS) for the Standard Missile-3 (SM-3) Block IIA program, an advanced version of the SM-3 now in
development.
 August 5, 2011: Aerojet, a GenCorp company, announced its key role in the successful launch of United
Launch Alliance's (ULA) Atlas V rocket from Cape Canaveral, Fla., carrying NASA's Juno spacecraft on a
mission toward Jupiter.
 July 11, 2011: Aerojet, a GenCorp company, announced that the European Space Agency's ATV-2 (Johannes
Kepler) successfully completed a major series of reboost maneuvers on the International Space Station (ISS)
using four Aerojet model R-4D-11 110-pound bipropellant rocket.
 June 21, 2011: Aerojet, a GenCorp company, QinetiQ, and EADS Astrium Crisa, an EADS company,
announced that the companies have entered into a joint agreement to supply the XENITH(TM) (Xenon Ion
Thruster) ion propulsion system to the worldwide commercial spacecraft market.
 June 10, 2011: Aerojet, a GenCorp company, announced that its engine helped propel today's launch of the
Delta II launch vehicle from Vandenberg Air Force Base (VAFB) in California. This 149th launch of the Delta
II engine carries NASA's Aquarius research satellite to orbit.
GenCorp - USA 471
Company Name GenCorp Inc

Management
Country UNITED STATES Scott J Seymour President & CEO
Currency USD Kathleen E Redd VP/CFO/Secretary
Market Price 9,97
Market Cap (€ Mln) 459 Income Statement (€ Mln) Nov-10 Nov-11 ∆ % (2010-2011)
N.F.D. (€ Mln)@11/30/2011 107 Sales 662 708 7,0%
Enterprise Value (€ Mln) 566 Ebitda 60 53 -10,7%
Source: Bloomberg @ 14/09/2012 Ebit 38 34 -10,1%
Shareholders Net Income 5 2 -57,4%
MARCATO CAPITAL MANA 9,66% Ebitda % Sales 9,0% 7,5%
GAMCO ASSET MANAGEME 8,16% Ebit % Sales 5,8% 4,8%
STEEL PARTNERS HOLDI 6,83% Net Income % Sales 0,8% 0,3%
GENCORP EMPLOYEE SAV 6,25%
FRANKLIN RESOURCES I 5,14% Balance Sheet (€ Mln) Nov-10 Nov-11 ∆ % (2010-2011)
VANGUARD GROUP INC 5,07% Total Assets 765 725 -5,2%
BLACKROCK FUND ADVIS 4,43% of which Net Fixed Assets 98 98 0,4%
GABELLI FUNDS LLC 4,36% N.F.D. 142 107 -25,0%
Market 50,10% Tot Equity -151 -160 6,2%
GenCorp - USA 472
Revenues Breakdown

Segment (€ Mln) Nov-10 Nov-11 Nov-10 Nov-11 Nov-10 Nov-11
Aerospace & Defense 656 702 52 58 8% 8%
Real Estate 6 6 4 4 74% 67%
Total segments 662 708 56 62 8% 9%
Group's Result 662 708 38 34 6% 5%
Real Estate
Real Estate 1%
1%
Aerospace &
Aerospace &
Defense
Defense
99%
99%
GenCorp - USA 473
Analysis of Results
 In fiscal year 2011 (ending 31 November), Gencorp Group’s revenues increased by 7%, from € 662 million in 2010
to € 708 million.
 Sales from the Aerospace & Defense segment increased to € 702 million, primarily due to the following: (i) an
increase of $27.7 million in the various air-breathing propulsion programs primarily due to the prior year’s awards on
SSST and T3 contracts; (ii) awards received in fiscal 2010 on the Hawk program resulting in $24.8 million of
additional net sales; and (iii) awards received in fiscal 2010 on the Bomb Live Unit — 129B composite case resulting
in $22.2 million of additional net sales.
 Sales from Real Estate for fiscal 2011 remained stable to € 6 million, as result of rental property operations.
 The group’s EBIT for fiscal year 2011 totaled € 34 million, falling 10.7%,
 Aerospace & Defense's EBIT increased by 11% to € 58 million mainly driven by a decrease in retirement benefit
expense of $8.3 million and favorable contract performance across multiple product lines.
 Real Estate’s EBIT in 2011 remained stable to € 4 million.
 Group’s Net Income for fiscal year 2011 was € 2 million, down 57.4% compared to 2010.
474
Heico Corp
Heico Corp – USA 475
Description
 HEICO Corporation, through its subsidiaries, is one of the world’s largest manufacturer of Federal
Aviation Administration (FAA). HEICO it is also a leading manufacturer of various types of electronic
equipment for the aviation, defense, space, medical, telecommunications, and electronics industries. Its
business boosts two operating activities:
 FLIGHT SUPPORT: designs and manufactures jet engine and aircraft component replacement parts
for sale at lower prices than those manufactured by OEMs. These parts are approved by the FAA and
are the functional equivalent of parts sold by OEMs. In addition, the Flight Support segment repairs,
refurbishes and overhauls jet engines and aircraft components, avionics and instruments for domestic
and foreign commercial air carriers and aircraft repair companies, and military and business aircraft
operators; manufactures thermal insulation products and other component parts primarily for
aerospace, defense and commercial applications; and distributes FAA-approved hydraulic, pneumatic,
mechanical and electromechanical components for commercial, regional and general aviation markets.
The Flight Support Group is 20% owned by Lufthansa Technik, the largest provider of aircraft
maintenance and repair services in the world.
 ELECTRONIC TECHNOLOGIES: designs, manufactures and sells various types of electronic,
microwave and electro-optical products, including infrared simulation and test equipment, laser
rangefinder receivers, electrical power supplies, back-up power supplies, electromagnetic interference
and radio frequency interference shielding, high power capacitor charging power supplies, amplifiers,
photodetectors, amplifier modules, flash lamp drivers, laser diode drivers, arc lamp power supplies,
custom power supply designs, cable assemblies, high voltage interconnection devices and wire, and
high-speed interface products that link devices such as telemetry receivers, digital cameras, high
resolution scanners, simulation systems and test systems to almost any computer.
 August 2, 2012: HEICO Corporation announced that its Flight Support Group has acquired 84% of the
assets and certain liabilities of CSI Aerospace, Inc.
 April 16, 2012: HEICO Corporation reported that its Radiant Power Corp. ("Radiant") subsidiary acquired
the aerospace assets of Moritz Aerospace, Inc. in an all cash transaction.
 October 20, 2011: HEICO Corporation announced that its Electronic Technologies Group entered into a
definitive agreement to acquire Switchcraft, Inc. ("Switchcraft") which is a leading designer and manufacturer
of high performance, high reliability and harsh environment electronic connectors and other interconnect
products. Switchcraft's products include connectors, jacks and plugs, cables, patch panels and switches utilized
in aviation, broadcast/audio, defense, industrial, medical and other equipment.
 October 3, 2011: HEICO Corporation today stated that it completed its planned acquisition of Buc, France-
based 3D Plus that is a leading supplier, distributor, and integrator of military aircraft parts and support
services primarily to foreign military organizations allied with the United States.
 January 3, 2011: HEICO Corporation announced that its Flight Support Group has acquired 80% of the
assets and certain liabilities of Blue Aerospace, LLC. Financial terms were not disclosed, but HEICO stated
that it expects the acquisition to be accretive to its earnings within the first year after the closing. Blue
Aerospace, in operation since 2002, is a leading supplier, distributor, and integrator of military aircraft parts
and support services primarily to foreign military organizations allied with the United States. Blue also
provides aircraft parts repair management and support. Blue is well known as an authorized distributor of P-3
spare parts and as the sole integrator for the SFAR88 Fuel Systems Safety Retrofit Kit for the C-130 and
derivative aircraft.
Company Name HEICO Corp

Currency USD Laurans A Mendelson Chairman & CEO
Market Price 38 Victor H Mendelson Co-President
Number of Outstanding Shares (Mln) 21 Eric A Mendelson Co-President
Market Cap (€ Mln) 622 Thomas S Irwin Senior Exec VP
N.F.D. (€ Mln)@10/30/2011 17 Carlos Macau Exec VP/CFO/Treasurer
Income Statement (€ Mln) Oct-10 Oct-11 ∆ % (2010-2011)
Sales 476 590 24,0%
Shareholders
Ebitda 98 121 23,8%
WERTHEIM HERBERT A 10,40%
Ebit 84 107 26,8%
MENDELSON LAURANS A 8,29%
ROYCE AND ASSOCIATES 7,74%
SELECT EQUITY GROUP 6,59%
Ebit % Sales 17,7% 18,1%
PLESSNER RENE 4,95%
BLACKROCK FUND ADVIS 4,92% Balance Sheet (€ Mln) Oct-10 Oct-11 ∆ % (2010-2011)
STATE STREET CORP 4,23% Total Assets 603 726 20,4%
GENEVA INVESTMENT MA 3,30% of which Net Fixed Assets 46 52 13,7%
NORTHERN TRUST CORPO 3,30% N.F.D. 6 17 195,1%
Revenues Breakdown

Segment (€ Mln) Oct-10 Oct-11 Oct-10 Oct-11 Oct-10 Oct-11 Geografic Area (€ Mln) Oct-10 Oct-11
Flight Support 318 416 52 73 16% 18% USA 327 391
Electronics Technologies 159 176 43 46 27% 26% Rest of world 149 199
Total segments 477 592 96 119 20% 20% Total geographic areas 476 590
Intersegment and Other -1 -2 -11 -12
Group's Result 476 590 84 107 18% 18%
Electronics
Technologies Rest of world
30% 34%
Flight Support
70% USA
66%
Analysis of Results
 During 2011, Heico Corp’s total revenues increased by 24% to a record € 590 million as compared to net sales of €
476 million in fiscal 2010. The increase in net sales reflects an increase of $127.2 million (€ 98.2 million), a 31%
increase, to a record $539.6 million (€ 416.6 million) in net sales within the Flight Support Group FSG as well as an
increase of $22.1 million (€ 17 million), an 11% increase, to a record $227.8 million (€ 175.9 million) in net sales
within the Electronic Technologies Group ETG.
 Revenues from Flight Support segment rose 31%. The net sales increase reflects organic growth of approximately
21%, as well as additional net sales of approximately $37 million (€ 28.6 million) contributed by the first quarter of
fiscal 2011 acquisition of Blue Aerospace. The organic growth principally reflects higher sales of new products and
services and an increase in demand for the FSG’s aftermarket replacement parts and repair and overhaul services as
a result of increased airline capacity and also reflects higher sales of and demand for the FSG’s industrial products.
 Electronic Technologies segment’s revenues jumped 11%. The net sales increase principally reflects organic growth
of approximately 10%. The organic growth in the ETG reflects continued strength in demand for certain of our
defense, aerospace, medical and electronic products.
 EBIT in fiscal 2011 increased by 27% to a record € 107 million as compared to operating income of € 84 million.
The increase in operating income reflects a $27.1 million (€20.9 million) increase (a 40% increase) in operating
income of the FSG to a record $95.0 million (€ 73.3 million) in fiscal 2011 from $67.9 million (€ 52.4 million) in
fiscal 2010 and a $3.4 million (€ 2.6 million) increase (a 6% increase) to a record $59.5 million (€ 45.9 million) in
operating income of the ETG in fiscal 2011, up from $56.1 million (€ 43.3 million) in fiscal 2010, partially offset by
a $1.2 million (€ 0.9 million) increase in corporate expenses. The increase in operating income of both the FSG and
ETG in fiscal 2011 principally reflects efficiencies gained from the increased sales volumes.
 Group’s Net Income for fiscal year 2011 was € 56 million, a 32.5% increase compared to the previous fiscal year.
480
Kratos Defense & Security Solutions Inc.

Kratos Defense & Security Solutions - USA 481
Description
 Kratos Defense & Security Solutions, Inc. is a specialized National Security Technology business providing
mission critical products, services and solutions for United States National Security priorities. Kratos’ core
capabilities are sophisticated engineering, manufacturing and system integration offerings for National
Security platforms and programs. Kratos’ areas of expertise include C5ISR, unmanned systems, cyber
warfare, cyber security, information assurance, critical infrastructure security and weapons systems
sustainment.
 It works primarily for the U.S. federal government, but it also performs work for state and local agencies. Its
principal services includes Command, Control, Communications, Computing, Combat Systems, Intelligence,
Surveillance and Reconnaissance (C5ISR), Weapon Systems Lifecycle Support, Military Weapon Range and
Technical Services, Network Engineering Services, Advanced IT Services, Security and Surveillance Systems,
and Critical Infrastructure Design and Integration Services.
 August 6, 2012: Kratos on Winning Team for $68 Million Award Contract to Provide Engineering and
Technical Support for Space and Naval Warfare Systems Center Pacific
 July 9, 2012: Kratos Composite Engineering, Inc. Receives $20.2 Million Single Award Contract to Provide
Unmanned Aerial Target Systems to Swedish FMV (Swedish Defence Material Administration).
 May 9, 2012: Kratos Defense & Security Solutions, Inc.(Nasdaq:KTOS), a leading National Security Solutions
provider, announced today that it has been awarded a contract to design, engineer and deploy a specialized
security system at the world headquarters of a global enterprise with revenues of approximately $25 billion.
 April 17, 2012: Kratos Defense & Security Solutions, Inc. announced that its Kratos Integral Systems
International, Inc. (Kratos ISI) subsidiary has been selected by Boeing Space & Intelligence Systems to provide
the primary and backup satellite command and control systems for the MEXSAT satellite system program.
 February 7, 2012: Kratos Defense & Security Solutions, Inc. announced that it has recently received $13.2
million in contract awards for specialized Battlefield Command Center and other Warfighter support
equipment. Certain of the specialized products Kratos will be providing will include Ballistic Protection
Enhancements.
 December 27, 2011: Kratos Defense & Security Solutions, Inc. announced that its Herley Industries, Inc.
subsidiary has received an exclusive three year requirements contract with a potential value of $13.6 million
from a major prime contractor for the continuing production of flight safety electronics hardware for five
critical U.S. missile programs.
 December 5, 2011: Kratos Defense & Security Solutions, Inc. announced that it has recently received $6.6
million in contract awards for specialized products related to certain Unmanned Aerial System, Command,
Control & Communication, and Warfighter related programs.
Kratos Defense &

Company Name
Security Solu
Market Price 5 Eric Demarco President & CEO
Number of Outstanding Shares (Mln) 57 Deanna Lund Exec. VP & CFO
Enterprise Value (€ Mln) 656 Sales 315 558 77,0%
OAK MANAGEMENT CORP 20,97% Net Income 11 -19 -266,9%

PARADIGM CAPITAL MAN 4,72%
Net Income % Sales 3,5% -3,3%
MILLENNIUM MANAGEMEN 3,35%
STATE OF WISCONSIN I 3,04%
WYNNEFIELD CAPITAL M 2,92% Total Assets 413 939 127,1%
BLACKROCK INSTITUTIO 2,26% of which Net Fixed Assets 22 56 157,0%
VANGUARD GROUP INC 1,77% N.F.D. 167 435 160,9%
DIMENSIONAL FUND ADV 1,57% Tot Equity 131 241 84,0%
Market 49,46%
Revenues Breakdown

Segmento (€ Mln) dic-10 dic-11 dic-10 dic-11 dic-10 dic-11
Defense,Weapon Systems, Technology&Training 287 471 19 26 7% 6%
Public Safety & Security 28 87 1 8 5% 9%
Totale Segmenti 315 558 21 34 7% 6%
Group's Result 315 558 19 31 6,1% 5,6%
Public Safety & Public Safety &

Security Security
9% 16%
Defense,Weapo Defense,Weapo
n Systems, n Systems,
Technology&Tr Technology&Tr
aining aining
91% 84%
Analysis of Results
 During 2011, Kratos’ total revenues increased by 77% to a record C 558 million as compared to net sales of € 315
million in fiscal 2010.
 Revenues from Kratos Government Solutions (KGS) Segment that include Defense,Weapon Systems,
Technology&Training, rose 64% mainly to the acquisitions of Herley and Integral that contributed $308.9 million
in increased revenue from 2010 to 2011.
 The Public Safety & Security’s (PSS) revenues jumped 209%. The increase in revenue was a result of the
acquisition of HBE.
 EBIT in fiscal 2011 increased by 64.1% to a record € 31 million as compared to operating income of €19million.
The increase in operating income reflects the increase of KGS’ EBIT (to € 26 million from € 19 million) and the
increase of PSS’EBIT (to € 8 million from € 1 million)
 Group’s Net Loss for fiscal year 2011 was € 19 million, showing a 267% decrease compared to the previous fiscal
year.
486
OHB Technology
OHB Technology – Germany 487
Description
 OHB Technology AG provides space technology, security, telematics and satellite services. The Company
develops, and operates satellites data transmission and processing. OHB, is also engaged in the fields of
manned spaceflight, aerospace transportation systems and start-up services for satellites. The Group
operates through the following operating segments:
 SPACE SYSTEMS + SECURITY: develops low-orbiting and geostationary small satellites for
scientific research, communications and terrestrial observation. Work on the International Space
Station ISS, Columbus and ATV is proceeding as part of main space flight efforts. Reconnaissance
satellites and broadband radio transmission of image data form the core of the security and
reconnaissance technology.
 PAYLOADS + SCIENCE: produces high-quality solutions targeted at space technology, automotive
industry and process control systems. Applications range from earth observation and navigation to
scientific payloads for exploration and the ISS as well as technology testing.
 SPACE TRANSPORTATION + AEROSPACE STRUCTURES: one of the leading suppliers of
aviation and aerospace components as well as antenna and mechatronic systems. Il also produces
around 10% of the hardware for the European Ariane 5 launch vehicle, making the OHB
Technology group the largest German supplier in the Ariane 5 program.
 TELEMATICS + SATELLITE OPERATIONS: organizes commercial transportation as efficiently
as possible. Develops systems to achieve precisely this covering everything from transport logistics
to consignment tracking and the transportation of hazardous materials and refrigerated goods. The
segment also provides OEM solutions for commercial vehicle makers amongst others. The OHB
Group exclusively distributes and markets communications services of the global ORBCOMM
satellite system in Europe.
 May 10, 2012: Contract signed by OHB System and DLR Space Administration for the definition phase of
the “Heinrich Hertz” satellite mission valued at around EUR 11 million.
 April 26, 2012: OHB System AG and Kayser-Threde GmbH, both subsidiaries of the European space and
technology group OHB AG signed contracts for the development, construction and testing of Meteosat
Third Generation (MTG) weather satellites with Thales Alenia Space, the programme prime contractor,
worth 750 million Euros.
 February 2, 2012: OHB System awarded contract for the construction of a further eight Galileo* navigation
satellites.
 October 25, 2012: OHB System AG, a company of OHB AG and Astrium, the industrial prime contractor in
the implementation of the European Data Relay Satellite System (EDRS), signed an addendum to the
existing preliminary authorization to proceed (PATP) for the development and construction of a dedicated
EDRS satellite.
 June 23, 2011: MT Aerospace Satellite Products has been awarded a contract by Thales Alenia Space for the
manufacture of 81 propellant tanks for the Iridium NEXT satellite program. The Wolverhampton/England-
based subsidiary of German aerospace supplier MT Aerospace will be delivering high performance titanium
diaphragm tanks for the next-generation constellation of satellites, anticipated to begin launching in 2015.
 June 20, 2011: The European space and technology group OHB AG has acquired the Space Systems
Division from Swedish Space Corporation (SSC) via an asset deal and integrated this business within the
newly incorporated company OHB Sweden AB, Stockholm. With 50 employees, this division generated sales
of around EUR 21 million last year.
 April 13, 2011: The prime contractor Astrium Services and OHB-System AG, a subsidiary of OHB
Technology AG signed an authorization to proceed (ATP) for the development and construction of a
satellite for the European Data Relay System (EDRS).
Company Name OHB AG
Country GERMANY
Market Price 14,2 Marco R Fuchs Chairman
Number of Outstanding Shares (Mln) 17 Manfred Fuchs Board Member
Market Cap (€ Mln) 248 Ulrich Schulz Board Member
N.F.D. (€ Mln)@12/31/2011 -31
Enterprise Value (€ Mln) 217 Income Statement (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
MAYROHFER ROMANA FUC 69,72% Ebit 23 27 20,0%
ENNISMORE FUND MANAG 2,56% Net Income 10 14 40,3%
HIGHCLERE INTL INVES 2,54% Ebitda % Sales 7,9% 7,8%
ECLECTICA ASSET MANA 2,53% Ebit % Sales 5,3% 4,9%
OHB AG 0,46% Net Income % Sales 2,3% 2,4%
OFI ASSET MANAGEMENT 0,18%

ALLIANZ GLOBAL INVES 0,13%
ECOFI FINANCE 0,10%
N.F.D. -40 -31 22,1%
DEGROOF GESTION INST 0,08%
Tot Equity 105 114 8,0%
Market 21,61%
Revenues Breakdown

Space Systems 286 363 13 25 5% 7% Europe 425 556
Aerospace+Industrial Products 147 201 5 2 4% 1% Total geographic areas 425 556
Total segments 434 564 18 27 4% 5%
Group's Result 425 556 23 27 5% 5%
Aerospace+Industrial Aerospace+Ind
Products ustrial Products
34% 36%
Space Systems
Space Systems
64%
66%
Analysis of Results
 In 2011, Group’s revenues increased by 30.6%, to € 556 million from € 425 million. The increase was due in large
part to a 132.6% increase in revenues from the Space Systems + Security segment. Moreover, the full-year inclusion
of Carlo Gavazzi Space SpA, consolidated for the first time in October 2009, had a positive effect on the result.
 The previous business units “Space Systems + Security”, “Payloads + Science” and “Space International” have been
integrated within the new business unit “Space Systems”, focused on developing and executing space projects. The
division’s revenues were € 363 million particularly due to progress made in the satellite programs.
 The previous business units “Space Transportation + Aerospace Structures” and “Telematics + Satellite
Operations” have been merged within the new business unit “Aerospace + Industrial Products ”, responsible for
fabricating aviation/aerospace products as well as telematics. The division’s revenues were € 201 million, up 27%,
due to the first-time consolidation of Aerotech Peissenberg.
 Group’s EBIT in 2011 increased by 20%, reaching € 27 million.
 Space Systems + Security segment’s EBIT was € 25 million.
 The EBIT reported by Aerospace+Industrial segment was € 2 million. This reduction was chiefly due to the first-
time consolidation of Aerotech Peissenberg.
 In 2011, the group’s Net Income was € 14 million, up 40.3% from € 10 million in the previous fiscal year.
492
Magellan Aerospace
Magellan Aerospace - Canada 493
Description
 Magellan Aerospace is an integrated leader selling products and services in the global aerospace industry. It
develops emerging market supply chains to support manufacturing participation in assisting our customer’s
market development.
 Magellan develops and produces complex and integrated products and services that bring value to our
customers. We serve the civil aerospace and defence market as well as industrial power applications of
aerospace engine technology. It designs, develops and manufactures:
 AEROENGINES: offers comprehensive gas turbine engine manufacturing solutions, including
product and global supply chain integration for commercial, defense and industrial markets. It supplies
highly complex components and assemblies and offers part repair and engine overhaul services to the
world’s leading aerospace OEM’s.
 AEROSTRUCTURES: Magellan is dedicated to a continuous investment in advanced technologies for
the manufacturing of aerostructures components and assemblies.
 ROCKETS & SPACE: Magellan Aerospace designs and manufactures an array of space and rocket
systems.
 SAND CASTINGS: Magellan is a global supplier of precision aluminum and magnesium sand cast
components.
 SPECIALTY PRODUCTS: Skills and knowledge from aerospace manufacturing have been
transferred to selected high-tolerance non-aerospace applications such as industrial power generation.
 July 10, 2012: Magellan Aerospace announced an agreement between Magellan Aerospace (UK) Limited and
Airbus for a contract extension to deliver aluminum and titanium, structural wing components from Magellan
UK divisions located in Wrexham and Bournemouth.
 May 11, 2012: Magellan Aerospace Corporation announced that it has been awarded a contract with The
Boeing Company for the continuation of the production of complex, hard metal structural assemblies for the
Next-Generation 737, 747-8, 767, 777, and the production of such assemblies for the new 787 Dreamliner
airplanes.
 March 8, 2011: Magellan Aerospace announced a new agreement with Bell Helicopter for a Wire Strike
Protection System (WSPS®) kit development.
 February 7, 2011: Magellan Aerospace Corporation announced that an agreement has been reached between
Airbus and Magellan Aerospace (UK) Limited securing a further work package, Crown Fittings, on Airbus’ new
A350 XWB. It is expected to generate revenues in excess of $US 20 million over the next ten years.
 February 7, 2011: Magellan Aerospace announced today an agreement with Hindustan Aeronautics Limited
(HAL) in Bangalore, India for a new Wire Strike Protection System (WSPS®). The agreement includes the
design and development of a WSPS for the HAL Advanced Light Helicopter (ALH), which will be carried out
at Magellan’s Bristol Aerospace division in Winnipeg in 2011.
Magellan Aerospace
Company Name
Corp
Country CANADA
Currency CAD Management
Market Price 4 Norman Murray Edwards Chairman
Number of Outstanding Shares (Mln) 58 James Butyniec President & CEO
Enterprise Value (€ Mln) 234 Sales 553 522 -5,5%
Source: Bloomberg @ 14/09/2012 Ebitda 74 69 -6,2%
EDWARD NORMAN MURRA 72,93% Net Income 26 28 8,9%
MOELLER LARRY G 3,86% Ebitda % Sales 13,4% 13,3%
MACKENZIE FINANCIAL 2,80% Ebit % Sales 8,7% 8,6%
FRANKLIN RESOURCES I 1,24% Net Income % Sales 4,7% 5,4%
EDCO CAPITAL CORPORA 1,04%

HAHNELT KONRAD B 0,13%
LOWE DONALD CAMERON 0,08%
N.F.D. 167 65 -60,8%
NEILL RICHARD A 0,07%
Tot Equity 167 214 28,2%
PALMER JAMES S 0,05%
Market 16,85%
Revenues Breakdown

Segmento (€ Mln) Dec-10 Dec-11 Dec-10 Dec-11 Dec-10 Dec-11 Geographic Area (€ Mln) Dec-10 Dec-11
Aerospace 474 461 41 40 9% 9% Canada 319 276
Power Generation 79 62 6 4 7% 7% United States 142 142
Totale Segmenti 553 522 47 44 9% 8% UK 92 104
Intersegment and Other 0 0 1 1 Totale Aree Geografiche 553 522
Group's Result 553 522 48 45 8,7% 8,6%

Revenues fiscal year 2011 - Geographic Areas
Power
Generation UK
12% 20%
Canada
United States 53%
Aerospace 27%
88%
Analysis of Results
 During 2011, Magellan Aerospace revenues decreased by 5.5% to a record € 522 million as compared to net sales
of € 553 million in fiscal 2010. The decrease in revenues from 2010 was mainly due to lower revenues earned on
the Corporation’s power generation project
 Aerospace segment’s revenue decreased by 3%. The revenues were primarily impacted by the movement in the
Canadian dollar, against the US dollar and British Pound
 Power Generation segment’s revenues showed a decline of 22%. Revenues earned in 2011 and in 2010 resulted
from the Ghana electric power generation project. The Corporation recognized revenue on this project on a
percentage of completion basis, hence the decrease in revenue over the prior year represented the Corporation’s
progress made towards completion of the project during the year.
 EBIT in fiscal 2011 decreased by 6.9% to a record € 45 million as compared to operating income of € 48 million.
For the Aerospace Segment the decrease was of 3.5% while the Power Generation’s EBIT decreased by 29%.
 Group’s Net Income for fiscal year 2011 was € 28 million, a 9% increase compared to the previous fiscal year.
498
Ducommun
Ducommun – USA 499
Description
 Ducommun is a premier supplier to the worldwide aerospace industry, growing by producing

subassemblies, subsystems and proprietary products with a balance between the commercial, military and
space market segments. The group is mainly active in the US market and its business includes 3 operating
segments:
 AEROSTRUCTURES (DAS): is a manufacturing services company supplying a wide variety of

composite and metal bond structures and assemblies, including aircraft wing spoilers, large fuselage
skins, helicopter blades, flight control surfaces and engine components, to a global customer base.
The company also designs, engineers and manufactures the largest, most complex contoured
aluminum, titanium and Inconel® aerostructure components in the aerospace industry.
 TECHNOLOGIES (DTI): designs, engineers and manufactures electromechanical components
and subassemblies, and provides engineering, technical and program management services
principally for the aerospace industry.
 DUCOMMUN MILTEC: is an engineering services company engaged in missile and aerospace
system design, development, integration, and test. The company proactively leverages the
knowledge base, capabilities, talent, and technologies of this focused market into NASA and
commercial ventures. Ducommun Miltec's primary customer base consists of the US Army Space
and Missile Defense Command (SMDC) and the Aviation and Missile Command (AMCOM), with
additional major customers including the Missile and Space Intelligence Center (MSIC), the US
Navy, and NASA Marshall Space Flight Center (MSFC).
 July 31, 2012: Ducommun Incorporated has received a contract from Bell Helicopter, a unit of Textron Inc., to
produce titanium firewall and baffle assemblies for the AH-1Z Cobra – the U.S. Marine Corps' newest attack
helicopter.
 December 13, 2011: Ducommun Incorporated announced that it has received contracts totaling approximately
$14 million from Bell Helicopter, a unit of Textron, Inc. The Ducommun LaBarge Technologies business unit
(DLT), a provider of electronics manufacturing services (EMS), will produce electronic assemblies and wiring
harnesses for the V-22 Osprey military aircraft. DLT has supported the V-22 program since 2005.
 August 09, 2011: Ducommun Incorporated announced that its Ducommun LaBarge Technologies (DLT)
subsidiary, a long-time supplier of electric AC and DC motors, stepper motors, resolvers and actuators for the
space, defense and oil service industries, has received a contract from Boeing Space & Intelligence Systems to
supply resolvers for a mechanism that is part of the Soil Moisture Active Passive (SMAP) Earth observation
satellite built and managed by NASA's Jet Propulsion Laboratory, Pasadena, California.
 July 19, 2011: Ducommun Incorporated announced that its Ducommun AeroStructures (DAS) unit is part of the
Boeing Company‘s supplier team selected to build the new fleet of aerial refueling tankers for the U.S.
 July 18, 2011: Ducommun Incorporated announced that its Ducommun AeroStructures (DAS) unit has been
awarded a contract to manufacture fuselage skins for the Bombardier* CSeries* aircraft. Ducommun will deliver
the fuselage skins, composed of advanced aluminum alloys, to Bombardier's China-based supplier and partner
Shenyang Aircraft Corporation (SAC), a unit of Aviation Industries of China (AVIC).
 June 28, 2011: Ducommun Incorporated completed its acquisition of LaBarge, Inc. As planned, Ducommun
acquired all issued and outstanding shares of LaBarge at $19.25 per share in cash for a total purchase price of
approximately $338 million, including the assumption of LaBarge's outstanding debt ($27.5 million).
Company Name Ducommun Inc

Currency USD Anthony J Reardon President/Chairman/CEO
Market Price 14 Joel Benkie Exec VP/COO
Number of Outstanding Shares (Mln) 11 Joseph Bellino VP & CFO
DIMENSIONAL FUND ADV 7,96% Net Income 15 -37 -340,2%
ROYCE AND ASSOCIATES 5,42% Ebitda % Sales 9,8% 7,2%
INGALLS & SNYDER 4,94% Ebit % Sales 6,5% 3,5%
VANGUARD GROUP INC 4,65% Net Income % Sales 4,9% -8,2%
DUCOMMUN ROBERT C 4,06%
PENN CAPITAL MANAGEM 3,48% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
RBC GLOBAL ASSET MAN 3,21% Total Assets 267 623 133,9%
BABSON CAPITAL MANAG 2,36% of which Net Fixed Assets 46 76 65,6%
DUPONT CAPITAL MANAG 2,32% N.F.D. -5 271 n/a
FRANKLIN RESOURCES I 2,29% Tot Equity 196 158 -19,6%
Market 59,31%
Revenues Breakdown

Aerostructures 210 226 22 20 11% 9% USA 306 409
Technologies 106 222 10 -26 10% -12% Rest of World 9 39
Total segments 315 448 32 -6 10% -1% Total geographic areas 315 448
Intersegment and Other 0 0 -12 22
Group's Result 315 448 20 16 6% 4%
Revenues fiscal year 2011 - Segment Revenues fiscal year 2011 - Geographic areas
Rest of World
9%
Aerostructures
50%
Technologies
50%
USA
91%
Analysis of Results
 In 2011, Ducommun total revenues increased by 42.2%, from € 315 million to € 448 million. The increase was
primarily due to LaBarge acquisition. In June 2011 Ducommun LaBarge Technologies (“DLT”) was formed by the
combination of the former Ducommun Technologies segment (“DTI”) and LaBarge.
 The Aerostructures segment revenues increased by a 7.8% primarily due to an increase in commercial sales, primarily
for large commercial aircraft and regional jet programs.
 The DLT segment revenues increased by 110.6% primarily driven by the sales from the LaBarge acquisition, partially
offset by lower revenues for engineering services and the legacy Ducommun DTI manufacturing business.
 Group’s EBIT in 2011 totaled € 16 million, a fall of 24% compared to the previous fiscal year due to new business
start-up costs.
 Also the group’s Net Loss to € 37 million showed a decline from Net Income of € 15 million in fiscal year 2010.
504
Heroux Devtek
Heroux Devtek – Canada 505
Description
 Héroux-Devtek is a Canadian company, serving two main markets: Aerospace and Industrial Products,
specializing in the design, development, manufacture and repair and overhaul of related systems and
components. Héroux-Devtek supplies both the commercial and military sectors of the Aerospace
segment with landing gear systems (including spare parts, repair and overhaul services) and airframe
structural components and assemblies. The company also supplies the industrial segment with large
components for power generation equipment and precision components for other industrial applications.
The Company's sales are mainly in Canada and in the United States. Heroux operates through two units:
 AEROSPACE: includes the Landing Gear and Aerostructure divisions and the Aircraft Engine
Components portion of the Gas Turbine Components Division. The Landing Gear Division
designs, manufactures, repairs and overhauls landing gears and has built a strong, well recognized
design engineering team. The Aerostructure Division manufactures airframe components ranging in
size from small to large, for the commercial and military aerospace markets.
 INDUSTRIAL: includes large power generation components and other industrial products
produced by the Gas Turbine Components Division. The Gas Turbine Components Division
manufactures aircraft engine components and large components for the power generation and other
industrial markets.
 June 21, 2011: Héroux-Devtek Inc. announced that it has been awarded a seven-year contract by Lockheed
Martin Aeronautics Company to manufacture the landing gear for the C-130J Super Hercules aircraft.
Héroux-Devtek will manufacture and assemble the landing gear for Lockheed Martin‘s global production of
C-130J aircraft and provide spare parts over a seven-year period beginning in January 2012. Based on current
program expectations, the contract has a potential total value of approximately $70 million.
 April 26, 2011: Héroux-Devtek Inc, a leading Canadian manufacturer of aerospace and industrial products,
announced the construction of a new manufacturing facility in the Querétaro Aerospace Park in Mexico. The
first phase of the project consists of the erection of a 47,200 square-foot facility for the production of
aerostructure components. The facility should be ready to produce its first components early in calendar year
2012. This first phase represents an investment of up to $20 million over the next three years. In due time, a
subsequent phase could see the plant expanded to 150,000 square feet.
 March 31, 2011: Héroux-Devtek Inc. announced that its Landing Gear product line operations have been
awarded several contracts from Boeing and various national militaries. Héroux-Devtek estimates the value of
the various contracts at approximately $35 million.
 February 8, 2011: Héroux-Devtek Inc., a leading Canadian manufacturer of aerospace and industrial
products, announced that its Aerostructure product line was awarded a seven-year contract by Bombardier
Aerospace to manufacture structural detail components that encompass Bombardier’s entire portfolio of
commercial and business aircraft, including new programs such as the CSeries* aircraft and Learjet 85*
business jet. Héroux-Devtek estimates the value of this contract at over C AD 175 million.
Company Name Heroux-Devtek Inc
Country CANADA Management

Currency CAD John M Cybulski Chairman
Market Price 12,5 Jean-Louis Fontaine Vice-Chairman
Number of Outstanding Shares (Mln) 30 Gilles Labbe President & CEO
Market Cap (€ Mln) 288 Real Belanger Exec VP & CFO
N.F.D. (€ Mln)@03/31/2011 55
Sales 242 270 11,6%
Ebitda 37 43 17,9%
Shareholders
Ebit 21 25 19,4%
DEANS KNIGHT CAPITAL 16,09%
CAISSE DE DEPOT ET P 13,91%
IG INVESTMENT MANAGE 12,74% Ebit % Sales 8,5% 9,1%
LABBE GILLES 12,44% Net Income % Sales 5,0% 5,3%
NATCAN INVESTMENT MA 9,96%
MACKENZIE FINANCIAL 3,32% Balance Sheet (€ Mln) Mar-10 Mar-11 ∆ % (2010-2011)
TD ASSET MANAGEMENT 1,57% Total Assets 298 357 19,7%
DIMENSIONAL FUND ADV 1,23% of which Net Fixed Assets 104 114 9,4%
MD MANAGEMENT LTD 1,11% N.F.D. 26 55 110,6%
HOFMANN HELMUT 0,80% Tot Equity 164 170 3,4%
Market 26,83%
Revenues Breakdown
Revenues EBITDA EBITDA MARGIN Revenues

Aerospace 242 270 19 22 8% 8% Canada 174 169
Industry 17 19 2 3 11% 16% USA 68 101
Total segments 242 270 21 25 9% 9% Total geographical areas 242 270
Group's Result 242 270 21 25 8% 9%
Industry
7% Canada
63%
USA
Aerospace 37%
93%
Analysis of Results
 In fiscal year 2011, Heroux Devtek total revenues rose by 11.6%, from € 242 million to € 270 million. Excluding the
$45.0 million (€ 34.7 million) sales of Eagle and E2 since the acquisition, consolidated sales were down by $7.8
million (€6 million) or 2.4%. The impact of the Canadian dollar, against the US currency, reduced consolidated sales
by $11.7 million or 3.7% compared to last year. This impact was reduced by higher sales in the Industrial segment..
 In 2011, Aerospace sales, excluding the acquisition of Eagle and E2 whose sales are included in the Aerospace
segment, declined $10.9 million (€ 8.4 million) or 3.7% mainly as a result of the negative US/CAD currency impact
of $9.8 million (€ 7.6 million) or 3.3% compared to last year. Including acquisitions revenues in the segment were up
11.2%.
 In 2011, Industrial sales, despite a lower exchange rate, increase 11.8% compared to last year due to increased heavy
equipment product sales.
 Group’s EBIT, for fiscal 2011, was € 25 million, improved by 19.4% compared to fiscal year 2010.
 Aerospace segment’s EBIT increased 16.7% to € 22 million.
 The Industrial segment’s EBIT improved considerably, touching € 3 million, an increase of 50% versus 2010.
 Group’s Net Income, for fiscal year 2011, was € 14 million, increasing by 19.5% compared to the previous fiscal
year.
510
Umeco
Umeco - UK 511
Description
 Umeco is a leading international provider of advanced composite materials and supply chain and
repair & overhaul services, principally to the aerospace & defence and automotive industries. The
Group operates through the following operating segments:
 STRUCTURAL MATERIALS: focuses on the development, manufacture and supply of

advanced composite materials.
 PROCESS MATERIALS focuses on the development, manufacture and supply of processing
materials and tooling for the advanced composites industry.
Umeco - UK 512
 July 20, 2012: Cytec Industries Inc. announced the completion of its acquisition of Umeco Plc. The $439
million acquisition supports Cytec's growth strategy to expand the Company's presence in the industrial
sector and to strengthen its technology leadership in advanced composites.
 August 8, 2011: In its first acquisition since divesting its Supply Chain activity to focus on its higher growth
advanced composites business, Umeco plc announces that its German subsidiary Umeco Composites
GmbH has purchased certain of the assets of Fenotec Ges.i.L (‘Fenotec’) from the administrator for the
cash sum of €2.2 million (circa £1.9 million).
 June 7, 2011: Umeco plc joins National Composites Centre
 May 20, 2011: Umeco announces the creation of a focused advanced composites business through the sale
of Pattonair for an enterprise value of approximately £145.8 million. The strategic disposal creates a
business focused on the advanced composites market which the Board considers has attractive long-term
growth prospects. Net cash proceeds are expected to be approximately £109.3 million (before transaction
costs). Andrew Moss (formerly Chief Operating Officer) appointed Chief Executive and Steven Bowers
(formerly Group Financial Controller) appointed Finance Director of Umeco, in each case with immediate
effect. Clive Snowdon, formerly Chief Executive, and Douglas Robertson, formerly Finance Director, have
resigned from the Board of Umeco with immediate effect.
 January 14, 2011: Umeco announced that the formation of its Chinese joint venture company, Shanghai
Umeco Composites Co., Ltd., has been approved by the Chinese authorities.
Umeco - UK 513

Sales 210 249 18,6%
Company Name Umeco PLC Ebitda 25 25 0,5%
Ebit 13 14 11,2%
Country BRITAIN
Net Income 14 3 -80,7%
Currency GBp Ebitda % Sales 11,9% 10,1%
Market Price 8,6 Ebit % Sales 6,1% 5,7%
Number of Outstanding Shares (Mln) 48 Net Income % Sales 6,5% 1,1%
N.F.D. (€ Mln)@03/31/2011 158 Balance Sheet (€ Mln) Mar-10 Mar-11 ∆ % (2010-2011)
Enterprise Value (€ Mln) 163 Total Assets 603 618 2,4%
Source: Bloomberg @ 18/07/2012* of which Net Fixed Assets 56 40 -28,4%
N.F.D. 97 158 63,5%
Tot Equity 214 206 -3,8%
* At this date the company has been delisted due to the acquisition by Cytec Industries Inc. For this reason the
shareholders and management board are not reported.
Umeco - UK 514
Revenues Breakdown

Structural Materials 122 144 9 13 8% 9% USA 58 71
Process Materials 88 105 10 10 12% 10% UK 49 52
Total segments 210 249 20 23 9% 9% Italy 22 26
Intersegment and Other 0 0 -7 -9 France 12 14
Overhead Costs and Other 0 0 0 0 Rest of Europe 35 49
Group's Result 210 249 13 14 6% 6% Rest of World 33 37
*EBIT of each segment does not include overhead costs and other unallocated costs Total geographic areas 210 249

USA
Rest of 29%
World
Process 15%
Materials Rest of
42% Europe
20%
Structural
Materials
58% UK
Italy 21%
France
5% 10%
Umeco - UK 515
Analysis of Results
 In fiscal 2011, the group’s revenues rose by 18.6%, from € 210 million to € 249 million. The growth in revenue
reflects improvements in market conditions for both Structural Materials and Process Materials.
 Structured Materials sales improved to € 144 million.
 Process Materials segment sales were up 20% to € 105 million, from € 88 million in the prior year.
 Group’s EBIT, in fiscal 2011, increased to € 14 million, an improvement of 11.2% in comparison to the previous
fiscal year.
 Structured Materials segment EBIT increased by 36% in 2011 due to operational gearing in the manufacturing
businesses which more than offset the effects of additional distribution revenues which attract lower margins.
 Process Materials EBIT was flat, despite increased revenues, due to delays in raw material price rises being passed
on to customers, primarily during the first half of the year.
 Group’s Net Income, for fiscal year 2011, was € 3 million, a decline of 80.7% when compared to the previous FY.
516
AeroVironment Inc.
AeroVironment - USA 517
Description
 AeroVironment is a technology solutions provider that designs, develops, produces and supports an
advanced portfolio of unmanned aircraft systems (UAS) and electric transportation solutions. Agencies
of the U.S. Department of Defense and allied military services use the company's battery-powered,
hand launched unmanned aircraft systems extensively to provide situational awareness to tactical
operating units through real-time, airborne reconnaissance, surveillance and communication.
AeroVironment's electric transportation solutions include a comprehensive suite of smart electric
vehicle (EV) charging systems, installation services and wireless data communication services for
consumers, automakers, utilities and government agencies, power cycling and test systems for EV
developers and industrial electric vehicle charging systems for commercial fleets.
 UAS business segment focuses primarily on the design, development, production and support of
innovative UAS that provide situational awareness and other mission effects to increase the security
and effectiveness of the customers’ operations.
 The Efficient Energy Systems, or EES, business segment focuses primarily on the design,
development, production and support of innovative efficient electric energy systems that address the
growing demand for electric transportation solutions.
 June 12, 2012: The Danish Acquisition and Logistics Organization today announced at Eurosatory it has
awarded AeroVironment a firm fixed-price order of $9.6 million to supply the Danish Armed Forces with the
company’s Puma AE™ small unmanned aircraft systems (UAS). AeroVironment was selected following a
competitive evaluation.
 May 23, 2012: U.S. Army Awards AeroVironment $5.1 Million Order for Switchblade Loitering Munition
Systems and Services.
 April 20, 2012: AeroVironment announced it received a firm fixed-price order valued at $20,430,433 from the
U.S. Army for RQ-20A Puma AE™ small unmanned aircraft systems (UAS).
 March 12, 2012: AeroVironment Receives $11.1 Million Order for RQ-11B Raven Small Unmanned Aircraft
System Contract.
 October 20, 2011: AeroVironment, Inc. announced that it has received a $7.3 million cost-plus-fixed-fee
contract from the United States Army. The contract establishes a not-to-exceed amount for digital Puma® All
Environment (AE) unmanned aircraft systems (UAS) contractor logistics support services in support of a
Joint Urgent Operational Need Statement.
 September 27, 2011: AeroVironment, Inc. announced that it received a $6.9 million firm-fixed-price order
from the U.S. Air Force under an existing contract with the U.S. Army. The order comprises new digital
Raven® small unmanned aircraft systems (UAS) and initial spares packages. The systems and spares packages
are scheduled for delivery within the next several months.
 September 8, 2011: AeroVironment Receives $16 Million Order for Raven Unmanned Aircraft Systems
Contractor Logistics Support for Raven systems.
 September 1, 2011: U.S. Army Awards AeroVironment $4.9 Million Contract for Switchblade Agile Munition
Systems and Services.
Company Name Aerovironment Inc

Market Price 23 Timothy Conver Chairman, President & CEO
Number of Outstanding Shares (Mln) 22 Thomas Herrig COO
Market Cap (€ Mln) 394 Jikun Kim Senior VP & CFO
N.F.D. (€ Mln)@12/31/2011
04/30/2011 -146
Income Statement (€ Mln) Apr-10 Apr-11 ∆ % (2010-2011)
Sales 193 226 17,2%
Ebitda 30 34 14,6%
Shareholders
Ebit 23 26 13,6%
CONVER TIMOTHY E 13,71%
TAMRO CAPITAL PARTNE 5,60%
BANK OF NEW YORK MEL 3,91% Net Income % Sales 8,3% 8,9%
CITADEL ADVISORS LLC 3,73%
BLACKROCK FUND ADVIS 3,54% Balance Sheet (€ Mln) Apr-10 Apr-11 ∆ % (2010-2011)
WHITING FAMILY LP 3,45% Total Assets 217,6 256,0 17,7%
ABN AMRO ASSET MANAG 3,38% of which Net Fixed Assets 15,5 13,5 -12,6%
EATON VANCE MANAGEME 3,19% N.F.D. -126,9 -145,7 -14,9%
INVESCO LTD 3,13% Tot Equity 180,1 203,3 12,9%
Market 51,87%
Revenues Breakdown
Revenues EBITA* EBITA MARGIN Revenues

Segmento (€ Mln) apr-10 apr-11 apr-10 apr-11 apr-10 apr-11 Geographic Area (€ Mln) apr-10 apr-11
Unmanned Aircraft Systems 173 193 n/a n/a n/a n/a United States 177 212
Efficient Energy Systems 20 33 n/a n/a n/a n/a Other 16 14
Totale Segmenti 193 226 n/a n/a n/a n/a Totale Aree Geografiche 193 226
Group's Result 193 226 23 26 11,9% 11,5%
*Earning before Interests, Taxes and Amortization
Revenues fiscal year 2011 - Segments Revenues fiscal year 2011 - Geographic Areas
Efficient
Energy Systems Other
15% 6%
Unmanned
Aircraft Systems United States
85% 94%
Analysis of Results
 Groups revenue for the fiscal year ended April 30, 2011 was € 226 million, as compared to € 193 million for 2010,
representing an increase of 17.2%.
 UAS revenue increased by 11%, to million for the fiscal year 2011, primarily due to an increase in service revenue of
$48.4 million (€ 37.3 million) and higher product deliveries of $21.9 million (€16.9 million), partially offset by
decreased customer-funded R&D work of $45.0 million (€ 34.7 million). The increase in UAS service revenue was
primarily due to an increase in support services revenue for the digital Puma AE systems.
 EES revenue increased by 69%, to million for the fiscal year 2011, due primarily to increased product deliveries of our
electric vehicle charging systems and power cycling and test systems.
 The group’s EBIT for 2011 was € 26 million, up from € 23 million in 2010.
 Group Net Income was € 20 million in 2011 versus Net Income of € 16 million in 2010.
522
Hampson
Hampson – UK 523
Description
 Hampson is the largest independent aerospace tooling solutions business in the world. It is a leader in
aerospace composite molds and aircraft tooling, in manufacturing of high temperature composite parts and
composite aircraft structures and it is an important composites/metal aerostructures supplier . The company
operates, across the US, Europe and India, through two business lines:
 TOOLING SOLUTIONS DIVISION: Hampson Aerospace specialises in the design, manufacture and
installation of aerospace tooling products including large fibre-placement moulds, lay-up moulds, resin
transfer moulds, bond tools, drill and trim fixtures, traditional metal detail tooling, final assembly jigs,
and fixtures and automated manufacturing and tooling systems.
 AEROSTRUCTURES & COMPOSITES DIVISION: Combining integrated sheet detail, forming,

machining, treatment, test and assembly processes, Hampson Aerospace delivers an endless range of
fabricated metallic, composite and hybrid assemblies, sub assemblies, components, kits and packages. In
addition, it fabricates advanced carbon fibre and thermoplastic components and structures and
manufacture glass, acrylic and laminated polycarbonate transparencies. Hampson Aerospace offers a
unique, single source of supply for airframe component and aerostructures manufacturing and assembly.
Hampson – UK 524
 February 29, 2012 - Hampson Aerospace announced it has been awarded a contract to provide the turnkey
tooling solution for the new Triumph Aerostructures – Vought Aircraft Division wing manufacturing facility
in Texas.
 August 26, 2011: Hampson announces the proposed disposal of the Shims Businesses to a newly
incorporated group formed at the direction of Bridgepoint Development Capital for an unadjusted cash
and debt free value of US$84.0 million (£51.5 million). The proceeds from the disposal will strengthen the
balance sheet.
 August 18, 2011: Composites Horizons Inc. (CHI), part of Hampson Aerospace, announced it has been
chosen by General Atomics Aeronautical Systems, Inc. (GA-ASI) to produce a second exhaust duct for the
company's Predator® C Avenger™ Unmanned Aircraft System (UAS). CHI has been able to meet GA-
ASI's aggressive development schedule and has worked closely with GA-ASI engineers to develop a final
product that has shown excellent performance and durability.
 June 3, 2011: Hampson Industries PLC, the international aerospace company, announces it has reached a
settlement with Erlson Precision Holdings Limited (“Erlson”), with regard to its dispute concerning the sale
of Erlson Precision Components Limited, formerly Hampson Precision Automotive Limited (“HPAL”), to
Erlson. Judgment was originally awarded in favour of Erlson on 20 April 2011, requiring rescission of the
sale and purchase agreement and the transfer of HPAL back to Hampson. Hampson applied for permission
to appeal the judgment. However, both parties concluded that it was in their and HPAL’s best interests to
agree that HPAL should be retained by Erlson. Hampson has agreed to pay £1.5 million to Erlson and to
make a contribution to Erlson for the costs it incurred in the litigation.
 June 23, 2011: Hampson Aerospace, the international aerospace group, announced that its Hampson
Aerospace Aerostructures & Composites Division has won a contract to supply HondaJet Ailerons.
Hampson – UK 525
Hampson Industries
Company Name
PLC
Currency GBp John W Poulter Chairman
Market Price 0,2 Norman D Jordan CEO
Number of Outstanding Shares (Mln) 279 Timothy W Hayter COO
Market Cap (€ Mln) 1 Ram Swamy Finance Director
N.F.D. (€ Mln)@03/31/2011 112
Sales 203 237 16,8%
Ebitda 41 25 -38,7%
Shareholders
Ebit 32 18 -44,3%
ABERFORTH PARTNERS 13,10%
Net Income 20 -33 -266,5%
LEGAL & GENERAL INVE 8,03%
LEGAL & GENERAL GROU 7,86%
Ebit % Sales 16,0% 7,6%
BLACKROCK INV MANAGE 5,26% Net Income % Sales 9,8% -13,9%
AXA 4,86% Balance Sheet (€ Mln) Mar-10 Mar-11 ∆ % (2010-2011)
FIDELITY INTERNATION 4,70% Total Assets 533 466 -12,5%
FIDELITY INTERNATION 4,31% of which Net Fixed Assets 58 44 -24,3%
WELLINGTON MANAGEMEN 4,21% N.F.D. 99 112 12,9%
STANDARD LIFE INVEST 4,02% Tot Equity 340 280 -17,7%
Market 38,70%
Hampson – UK 526
Revenues Breakdown

Composites & Transparencies 146 189 30 -26 21% -14% North America 146 181
Aerospace & Components 57 48 5 5 9% 10% Europe 15 25
Total segments 203 237 35 -21 17% -9% UK 38 23
Overhead Costs and Other 0 0 -8 46 Total geographic areas 203 237
Group's Result 203 237 32 18 16% 8%
Rest of World
Aerospace &
3%
Components
20%
UK
Europe 10%
11%
North
America
Composites & 76%
Transparencies
80%
Hampson – UK 527
Analysis of Results
 Groups revenue for the fiscal year ended March 31, 2011 was € 237 million, as compared to € 203 million for 2011,
representing an increase of 16.8%.
 Composites & Transparencies segment revenue increased 30%, to € 189 million for the 2011 fiscal year, driven largely
by activity under the Group’s largest ever tooling contract, which was awarded in September 2010 with a value at
inception of USD 53 million, together with increasing activity on the F-35 programme covering both tooling and high
temperature composite engine components..
 Aerospace & Components segment revenue fell 16%, to € 48 million for 2011, due to the inclusion of four and half
months of trading from HAML (which was divested in August 2009) in the prior year comparative. Adjusting for this
on a pro-forma basis, underlying revenue increased by £1.9 million (5%) over the year.
 The group’s EBIT for 2011 was € 18 million, down 44.3% from € 32 million in 2010. Group profitability was
adversely impacted by performance at one of the Group’s US tooling operations. A number of operational and
financial improvement initiatives have now been introduced at the business, including the implementation of SAP,
strengthening of a number of key management positions, enhanced processes and lean initiatives, all of which are
expected to contribute to improved results going forward.
 Composites & Transparencies EBIT decreased significantly despite the revenue increase, totaling a loss of € 26 million
in 2011 from € 30 million for the 2010 fiscal year.
 EBIT for the Aerospace & Components segment was flat year over year at € 5 million.
 Net Loss fell was € 33 million in 2011 versus Net Income of € 20 million in 2010.
528
LMI Aerospace
LMI Aerospace – USA 529
Description
 LMI Aerospace is a leading provider of structural components, assemblies and kits to the aerospace,
defense and technology industries. In addition to aerospace products, it produces components and
assemblies for laser equipment used by semiconductor and medical equipment manufacturers in the
technology industry.
 LMI Aerospace operates through these segments:
 AEROSTRUCTURES: fabricates, machines, finishes and integrates formed, close tolerance
aluminum and specialty alloy components and sheet metal products primarily for large commercial,
corporate, regional and military aircraft. They manufacture more than 30,000 products for integration
into a variety of aircraft platforms manufactured by leading OEMs, and Tier 1 aerospace suppliers,
including Gulfstream Aerospace Corporation, Boeing Company, Spirit AeroSystems, Sikorsky,
Vought Aircraft and Bombardier.
 ENGINEERING SERVICES: provides prototyping and complex design and engineering services to
the aerospace industry. It supports both military and commercial aircraft lifecycles from conceptual
design, analysis and certification through production support, fleet support and service life
extensions via a complete turnkey engineering solution.
 COMPOSITES: LMI’s composites division, Intec, provides state-of-the-art manufacture, design, and
test of composites, metal matrix, and other advanced materials. Intec’s collaborative testing,
machining, and fabrication processes reduce costs, reduce cycle time, and guarantee customers the
highest quality and value in repeatable production parts.
 August 8, 2012: LMI Aerospace, Inc. announced that it has acquired TASS Inc., a premier after-market
engineering and support services firm.
 April 19, 2012: LMI Aerospace, Inc. announced that its subsidiary, D3 Technologies, Inc., has been
recognized as Supplier of the Year in the Non-Production Services category by The Boeing Company.
 October 28, 2011: LMI Aerospace Inc. announced that it has received a contract award from Embraer for
the design and build of wing slat assemblies for the KC-390 aircraft. The new contract encompasses the
engineering, manufacturing, testing, tooling, certification, and product support of the complete wing
leading edge slat system.The total contract value is estimated to be $44 million.
Management
Company Name LMI Aerospace Inc
Michael J Biffignani CIO
Country UNITED STATES Lawrence E Dickinson VP, CFO & Secy
Currency USD Ryan Bogan VP & COO
Market Price 21
SAKS RONALD S 11,57% Net Income 10 13 26,7%
AMERIPRISE FINANCIAL 9,56% Ebitda % Sales 11,8% 12,7%
DIMENSIONAL FUND ADV 5,06% Ebit % Sales 8,5% 9,8%
KEYBANK NATIONAL ASS 4,81% Net Income % Sales 5,79% 6,45%
BURSTEIN JOSEPH 4,63%
KENNEDY CAPITAL MANA 3,56% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
COLUMBIA MANAGEMENT 3,09% Total Assets 139 158 13,8%
NEW JERSEY DIVISION 2,51% of which Net Fixed Assets 16 21 28,1%
Market 55,21% N.F.D. -1 -6 -351,0%
Tot Equity 116 129 12,0%
Revenues Breakdown

Aerostructures 115 130 11 14 9% 11% USA 172 196
Engineering Services 58 68 4 5 7% 7% Total geographic areas 172 196
Total segments 173 197 15 19 9% 10%
Group's Result 172 196 15 19 9% 10%
Engineering Engineering
Services Services
33% 34%
Aerostructures
Aerostructures 66%
67%
Analysis of Results
 In 2011, the Group reported a 13.7% growth in sales, from € 172 million to € 196 million.
 Revenues from the Aerostructures segment were up at € 130 million (+13%). This increase was due to high sales
generated in Large commercial aircraft, high sales related to the 747 and 767 platforms and increases in sales noted in
the 777 program. The improvement was also due to increase in sales of components for corporate and regional
aircraft driven by the new G650 aircraft at Gulfstream and by work performed for the Mitsubishi Regional Jet
program. In addition Military products sale increased mainly due to volume increases in the Blackhawk program.
 Engineering Services’ revenues recorded a growth of 17% from € 58 million in 2010 to € 68 million in 2011, primarily
as a result of a nacelle systems development program, the Boeing Integrated Test program, the increase in support
requirements on the Bombardier Lear Jet L-85 and the increase from services in support of the new Boeing Tanker
program.
 The EBIT generated by the Group, in FY 2011, grew to € 19 million a 30.7% increase from 2010.
 The EBIT of the Aerostructures segment increased by 34% to € 14 million in 2011.
 Engineering Services’ EBIT was € 5 million in 2011, a 21% growth compared to 2010.
 The Group’s Net Income in FY 2011 rose to € 13 million from € 10 million in 2010.
534
Astronics Corp
Astronics Corp – USA 535
Description
 Astronics Corporation is a leader in advanced, high-performance lighting, electrical power generation, control,
and distribution systems for the global aerospace industry. Its strategy is to expand the value and content it
provides to various aircraft platforms through product development and acquisition. Astronics Corporation,
and its wholly-owned subsidiaries Astronics Advanced Electronic Systems Corp. (AES), Astronics
Luminescent Systems Inc. (LSI) and Astronics DME Corporation (DME), have a reputation for high quality
designs, exceptional responsiveness, strong brand recognition and best-in-class manufacturing practices.
Astronics’s main Products and Technologies are:
 CABIN ELECTRONICS: Astronics supplies power sources for in-flight entertainment systems and
passenger personal electronic devices. Astronics’s patented EmPower® in-seat power system allows
airline passengers to power their laptop, MP3, or personal DVD player directly from a power outlet built
into the airline seat. It is also a leading supplier of products used to provide the power for in-flight
entertainment systems built into the seat-backs of passenger airlines.
 AIRFRAME POWER: Astronics CorePower™ line of products includes a wide range of Power
Distribution products as well as Power Generation for secondary power and primary Starter Generator
applications. Astronics is a recognized leader in the latest technology for Electronics Power Distribution
Systems (EPDS) that features full digital control Electronic Circuit Breakers, programmable to meet
current and future needs of the electrical system. Electronic Circuit Breakers are significantly smaller and
lighter than their conventional counterparts. The result is that the entire EPDS is much smaller, lighter
and more reliable than traditional systems. These features are uniquely suited for today’s Very Light Jet
and advanced helicopter programs.
 LIGHTNING SYSTEMS: Astronics provides Cockpit Lightining Systems, Exterior Lighting Systems
and Cabin Lighting Systems.
 SUPPORT: Astronics customers continually commend them on their support and services. Astronics is
an FAA and EASA approved repair facility, and provides 24/7 support. Astronics global presence means
fast response times. From support teams in Asia to AOG services in Europe, Astronics is prepared to
provide technical solutions around the clock; around the world. Astronics also provides installation
support, installation design services, on-site training, and custom design services.
 August 2, 2012: Astronics Corporation announced that its wholly-owned subsidiary, Astronics Advanced
Electronic Systems Corp. (AES), has signed agreements with multiple airlines in Asia, Europe, North
America and South America to supply their EmPOWER ® In-Seat Power systems. These agreements
include line fit and retrofit installations on over 500 narrow body aircraft.
 July 31, 2012: Astronics Corporation announced that it has acquired privately-held Max-Viz, Inc. (“Max-
Viz”), a market-leading developer and designer of Enhanced Vision Systems (EVS) for fixed and rotary
wing aircraft through both OEM and aftermarket channels in the general aviation, commercial and
military aerospace markets for $10 million in cash.
 May 24, 2012: Astronics Corporation announced that its wholly-owned subsidiary, Astronics Advanced
Electronic Systems Corp. (AES), signed a multi-year agreement with Thales Avionics, Inc. to provide
Astronics’ world leading EmPOWER® In-Seat Power Systems and other power conversion product
lines for integration with Thales’ In-Flight Entertainment and Connectivity (IFEC) Systems on all major
aircraft platforms including B787 and A350.
 November 30, 2011: Astronics Corporation announced that it has acquired privately-held Ballard
Technology, Inc., an Everett, WA company that designs and produces avionics interface solutions for
defense and commercial aerospace applications. Astronics acquired all of the stock of Ballard for $24
million in cash.
 October 9, 2011: Astronics Corporation announced that it has been selected by Honda Aircraft
Company to supply its 28VDC to 115VAC EmPOWER(R) System and its Windshield Heat Controller as
standard installations on the HondaJet aircraft.
Company Name Astronics Corp

Currency USD Peter J Gundermann President/CEO
Market Price 30 David C Burney Exec
Number of Outstanding Shares (Mln) 10 James Kramer VP/Finance/CFO/Treasure
Executive VP
Market Cap (€ Mln) 227 Mark Peabody Executive VP
N.F.D. (€ Mln)@12/31/2011 17

Ebitda 23 30 30,8%
Shareholders
Ebit 19 26 36,7%
NSB ADVISORS LLC 19,46%
Ebit % Sales 12,5% 14,6%
BLACKROCK INSTITUTIO 3,55% Net Income % Sales 7,6% 9,5%
EAGLE ASSET MANAGEME 3,50%
KEANE KEVIN T 2,71% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
NEXT CENTURY GROWTH 2,49% Total Assets 116 135 15,9%
BLACKROCK FUND ADVIS 2,34% of which Net Fixed Assets 24 32 33,2%
RBC GLOBAL ASSET MAN 2,22% N.F.D. 12 17 40,8%
DIMENSIONAL FUND ADV 2,07% Tot Equity 60 79 33,2%
Market 51,44%
Revenues Breakdown

Aerospace Electronics 139 165 23 31 17% 19% North America 130 152
Test Systems 12 11 -1 -4 -11% -33% Asia 10 10
Total segments 151 176 22 28 14% 16% Europe 9 12
Intersegment and Other 0 0 -3 -2 South America 2 2
Overhead Costs and Other 0 0 0 0 Other 0 0
Group's Result 151 176 19 26 12% 15% Total geographic areas 151 176
Europe South America
Test Systems Asia 7% 1%
6% 6%
Aerospace
North
Electronics
America
94%
86%
Analysis of Results
 In 2011, the group’s sales increased 16.6% from € 151 million in 2010 to € 176 million. The increase was a result of
increase from our Aerospace segment
 The Aerospace segment’s sales for 2011 increased by 19% from 2010. Sales growth was primarily driven by
increased sales of cabin electronics’ in-seat power systems and increased aircraft lighting products to the commercial
transport market as volumes increased.
 The Test Systems segment was created from part of the acquisition of DME on January 30, 2009. The Test Systems
segment reported a decline in sales in 2011, down 11%, continuing to face headwinds as military spending has
slowed and opportunities for large programs were fewer.
 EBIT for the group in 2011 was € 26 million, up 36.7% from € 19 million in 2010 as a result of increased EBIT in
the Aerospace segment due to the leverage provided on the increased sales volume partially offset by higher E&D
costs and increased SG&A costs.
 Net Income for 2011 was € 17 million, up of 44.4% from € 12 million in 2010.
Players with revenues lower than € 100 million 540
 Listed below are the Aerospace & Defence global market’s players that, in the latest available annual financial
statement, reported revenues lower than € 100 million ; they were reported for a more comprehensive analysis
Although there was no available meaningful data :
COHORT PLC 90
AVCORP INDUSTRIES INC 65
BREEZE-EASTERN CORP 66
CPI AEROSTRUCTURES INC 57
AROTECH CORP 48
AEROSONIC CORP 23
Players with revenues lower than € 100 million 541
 The following table includes share market price (and percent variation over 3, 6 and 12 months), Market Cap, Net
Financial Debt and EV for players belonging to the first group.

COHORT PLC GBp 9,20 40,79 4 5 -17,0 -12,3 46,2 22,3 48,6
AVCORP INDUSTRIES INC CAD 10,20 205,43 2.095 1.645 7,7 1.652,8 -10,0 -10,0 0,0
BREEZE-EASTERN CORP USD 11,20 9,49 106 81 -1,5 79,7 10,8 -8,3 -20,8
CPI AEROSTRUCTURES INC USD 12,20 8,35 102 78 13,1 90,9 3,7 -23,2 14,7
AROTECH CORP USD 13,20 15,94 210 161 4,2 164,9 -4,4 -29,3 -50,0
AEROSONIC CORP USD 14,20 3,84 55 42 6,2 47,9 -12,7 20,7 5,7
542
Cohort Plc
Cohort Plc - UK 543
Description
 Cohort plc is the parent company for three innovative, agile and responsive businesses operating in defence
and related markets. It aims to add real value through the experience and contacts of its senior team while
providing a light-touch but effective governance framework. Its objective is to deliver value to shareholders
through its three operating subsidiaries: MASS, SCS and SEA.
• MASS harnesses technology to deliver trusted services and solutions that improve the security, efficiency
and effectiveness of operations in government, industry and educational establishments. Full life cycle
coverage is provided including applied research, consulting, design, development, system integration,
support, managed service delivery and training. Expert areas include electronic warfare operational
support; secure communication systems; secure networks; test systems and data management. A core
competence of MASS is in multi-level security.
• SCS is an independent consultancy with a first-class reputation for providing a wide range of technical
support, consultancy and managed services to a diverse customer base. SCS's principal client has been
and remains the UK MoD and its agencies. Other customers include NATO, EDA, UK Government
Departments and major UK and international industrial players. The key SCS competence is Capability
Integration – ensuring that the individual elements that comprise a programme are coherently
articulated, inter-related and integrated.
• SEA specialises in providing systems engineering and specialist design solutions to Government and
Industry. SEA's skills cover sensors, communications and high-integrity systems. SEA works across the
whole product life cycle providing research, development, manufacture, training solutions and support
of complex systems. SEA is an expert in naval and tactical communications providing solutions for the
UK submarine flotilla and tactical battlefield data systems. SEA also provides a range of simulation-
based training solutions and middleware to provide realistic training for complex environments. In the
space domain SEA provides research through to high-integrity space flight hardware for near Earth and
deep space missions.
Cohort Plc - UK 544
Company Name Cohort PLC
Country BRITAIN
Management
Currency GBp Nicholas Martin Prest Chairman
Market Price 135 A E Stanley Carter Co-Chairman
Number of Outstanding Shares (Mln) 41 Andrew S Thomis CEO
Market Cap (€ Mln) 6.583 Simon Walther Finance Director/Secretary
N.F.D. (€ Mln)@10/31/2008
04/30/2011 -8
Enterprise Value (€ Mln) 6.574 Income Statement (€ Mln) Apr-10 Apr-11 ∆ % (2010-2011)
Source: Bloomberg @ 14/09/2012 Sales 93,7 78,2 -16,6%
Shareholders Ebitda 5,8 6,2 7,4%
DIRECTOR & RELATED H 31,45% Ebit 4,4 3,6 -18,3%
Net Income 2,7 3,3 20,5%
CARTER A E STANLEY 26,15%
PRIVATE INDIVIDUALS 6,13%
HARGREAVE HALE LTD 5,45%
PREST NICHOLAS MARTI 5,11%
DALE-STAPLES IAN 5,06% Total Assets 84,7 87,5 3,4%
OCTOPUS INVESTMENT L 4,61% of which Net Fixed Assets 9,52 9,38 -1,4%
ARTEMIS INVESTMENT M 3,55% N.F.D. -3,6 -8,1 -121,4%
AXA 3,45% Tot Equity 55,6 57,9 4,1%
Market -0,44%
545
AVCorp Industries
AvCorp Industries Inc - Canada 546
Description
 Avcorp designs and builds major airframe structures for some of the world’s leading aircraft companies,
including BAE Systems, Boeing, Bombardier, and Cessna. With more than 50 years of experience, over 500
skilled employees and 354,000 square feet of facilities, Avcorp offers integrated composite and metallic aircraft
structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs,
which require lower‐cost, light‐weight, strong, reliable structures.
Management
David R Levi Chairman
Company Name Avcorp Industries Inc
Mark Van Rooji President/Chairman
Country CANADA Edward M Merlo VP
Currency CAD
Market Price 0 Income Statement (€ Mln) Jun-10 Jun-11 ∆ % (2010-2011)
Number of Outstanding Shares (Mln) 205 Sales 58 65 11,3%
Market Cap (€ Mln) 7 Ebitda -1 2 113,4%
N.F.D. (€ Mln)@06/30/2011 8 Ebit -4 0 -92,6%
Enterprise Value (€ Mln) 15 Net Income -6 -2 -66,9%
Source: Bloomberg @ 14/09/2012 Ebitda % Sales -1,9% 3,6%
Shareholders Ebit % Sales -6,3% -0,4%

Net Income % Sales -9,6% -2,9%
PANTA HOLDINGS BV 42,99%
SHOLZ MICHAEL C 13,78%
Balance Sheet (€ Mln) Jun-10 Jun-11 ∆ % (2010-2011)
WORKING OPPORTUNITY 9,61%
Market 33,62%
N.F.D. 13 8 -41,0%
Tot Equity 2 0 -67,5%
547
Breeze-Eastern Corp
Breeze – Eastern Corp - USA 548
Description
 Breeze-Eastern Corporation, founded in 1926, designs and manufactures highly engineered defense and
aerospace products used by government and civilian agencies, and aircraft builders around the world.
 Breeze-Eastern products are considered the leaders in their respective fields, often specified by the world's
leading manufacturers of helicopters, weapon handling systems, military and civilian aircraft, and spare parts
distributors. Breeze-Eastern's sophisticated lifting and restraining products are used in cargo transport and on
rescue missions by most military and civilian helicopters and aircraft throughout the world.
Breeze-Eastern
Company Name
Corp Financial Highlights
Management
Currency USD
Brad Pedersen President and CEO
Market Price 7,5
Mark D Mishler Senior VP and CFO
N.F.D. (€ Mln)@12/31/2011
03/31/2011 4 Sales 53 60 13,3%
Enterprise Value (€ Mln) 59 Ebitda -4 9 132%
Source: Bloomberg @ 14/09/2012 Ebit -5 7 44%
Shareholders Net Income -5 4 -17%
TINICUM LANTERN II L 34,79% Ebitda % Sales -7% 15,3%
WYNNEFIELD CAPITAL M 22,31% Ebit % Sales -9,7% 12,4%
AXIOM CAPITAL MGMT 9,39% Net Income % Sales -8,8% 6,4%
VN CAPITAL MANAGEMEN 7,39%
T ROWE PRICE ASSOCIA 6,66% Balance Sheet (€ Mln) Mar-10 Mar-11 ∆ % (2010-2011)
DIMENSIONAL FUND ADV 3,54% Total Assets 59 60 2,7%
RECKER WILLIAM J 3,24% of which Net Fixed Assets 7 6 -12,8%

N.F.D. 11 4 -65,2%
GOLDSMITH & HARRIS I 2,23%
Tot Equity 21 26 20,2%
KENNEDY CAPITAL MANA 0,71%
UBS AG 0,52%
Market 9,22%
549
CPI Aerostructures Inc

CPI Aerostructures Inc - USA 550
Description
 CPI Aero is engaged in the contract production of structural aircraft parts principally for the U.S. Air Force
and other branches of the U.S. armed forces, either as a prime contractor or as a subcontractor for other
defense prime contractors. CPI Aero also acts as a subcontractor to prime aircraft contractors in the
production of commercial aircraft parts.
 As a prime contractor to the U.S. Government, they deliver skin panels, leading edges, flight control surfaces,
engine components, wing tips, cowl doors, nacelle assemblies and inlet assemblies for military aircraft such as
the C-5 “Galaxy” cargo jet, the T-38 “Talon” jet trainer, the C-130 “Hercules” cargo jet, the A-10
“Thunderbolt” or “Warthog” attack jet, and the E-3 “Sentry” AWACS jet.
 As a subcontractor to leading defense prime contractors such as Northrop Grumman Corporation, Lockheed
Martin Corporation, Sikorsky Aircraft Corporation and Vought Aircraft Industries, Inc., they deliver various
pods, and modular and structural assemblies for military aircraft such as the UH-60 “Blackhawk” helicopter,
the MH-60S mine counter measure helicopter and the C-5 cargo jet.
 They also operate as a subcontractor to aerospace and defense companies, including Sikorsky and Spirit
AeroSystems, Inc. in the production of assemblies for commercial aircraft. For Sikorsky, they deliver various
kits and assemblies for the S-92 civilian helicopter. They are providing Spirit AeroSystems with leading edges
for the wing of the new Gulfstream G650 business jet.
CPI Aerostructures Inc - USA 551
CPI Aerostructures
Company Name
Inc
Management
Currency USD Edward J Fred President & CEO
Market Price 12 Vincent Palazzolo CFO/Secretary
Number of Outstanding Shares (Mln) 8 Douglas J McCrosson COO
AUSTIN W MARXE AND D 9,95% Net Income 0,4 5,7 1299,7%
CRESCENDO PARTNERS I 9,10% Ebitda % Sales 2,5% 15,5%
RUTABAGA CAPITAL MAN 6,93% Ebit % Sales 1,6% 14,7%
LORD ABBETT & CO LLC 6,02% Net Income % Sales 1,2% 10,0%
PERRITT CAPITAL MANA 3,70%
CUBIC ASSET MANAGEME 3,38% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
DIMENSIONAL FUND ADV 2,70% Total Assets 44 69 57,5%

OBERWEIS ASSET MANAG 2,43%
N.F.D. 1 13 818,0%
FRED EDWARD J 2,05%
Tot Equity 34 42 20,9%
ROYCE AND ASSOCIATES 1,65%
Market 52,09%
552
Arotech Corp
Arotech Corp - USA 553
Description
 Arotech Corporation is a defense and security products and services company, engaged in two business areas:
• interactive simulation for military, law enforcement and commercial markets;
• batteries and charging systems for the military.
 It operates primarily through our various subsidiaries, which we have organized into two divisions and
subsidiaries (both 100% owned by it):
• It develops, manufactures and markets advanced high-tech multimedia and interactive digital solutions
for use-of-force training and driving training of military, law enforcement, security and other personnel
through its Training and Simulation Division:
 It provides simulators, systems engineering and software products to the United States military,
government and private industry through our subsidiary FAAC Incorporated, located in Ann
Arbor, Michigan (“FAAC”); and
 Through FAAC, it provides specialized “use of force” training for police, security personnel and
the military under the trade name IES Interactive Training (“IES”).
• It manufactures and sell lithium and Zinc-Air batteries for defense and security products and other
military applications through its Battery and Power Systems Division:
 It develops and sells rechargeable and primary lithium batteries and smarts chargers to the
military and to private defense industry in the Middle East, Europe and Asia under our Epsilor
nameplate (“Epsilor”), through its subsidiary Epsilor-Electric Fuel, Ltd. (“Epsilor-EFL”), at
Epsilor-EFL’s facilities located in Dimona, Israel (in Israel’s Negev desert area);
 It develops, manufactures and markets primary Zinc-Air batteries, rechargeable batteries and
battery chargers for the military, focusing on applications that demand high energy and light
weight, through our subsidiary Electric Fuel Battery Corporation, located in Auburn, Alabama
(“EFB”); and it produces water-activated lifejacket lights for commercial aviation and marine
applications under our Electric Fuel nameplate (“EFL”), at Epsilor- EFL’s facilities located in Beit
Shemesh, Israel (between Jerusalem and Tel-Aviv).
Arotech Corp - USA 554
Company Name Arotech Corp

Currency USD Robert S Ehrlich Chairman/CEO
Market Price 1 Steven Esses President/COO
Number of Outstanding Shares (Mln) 16 Yaakov Hear-Oz Senior VP
Market Cap (€ Mln) 11 ThomasJ Paup CFO
N.F.D. (€ Mln)@12/31/2011 4
EHRLICH ROBERT S 8,22% Ebit -1 -2 321,0%
ESSES STEVEN 5,77% Net Income -1 -9 1156,7%
CUSHNER ALEX 5,04% Ebitda % Sales 3,7% -0,1%
DIMENSIONAL FUND ADV 2,22% Ebit % Sales -1,3% -4,9%
VANGUARD GROUP INC 1,35% Net Income % Sales -1,7% -18,6%
PAUP THOMAS J 1,14%
SLOYER ELLIOT 1,05% Balance Sheet (€ Mln) Dec-10 Dec-11 ∆ % (2010-2011)
RENAISSANCE TECHNOLO 0,98% Total Assets 65 63 -3,0%
MARRUS MICHAEL E 0,40% of which Net Fixed Assets 2 4 48,7%
BOREY JR EDWARD J 0,39% N.F.D. -2 4 n/a
Market 73,44% Tot Equity 40 32 -21,6%
555
Aerosonic Corp
Aerosonic Corp -USA 556
Description
 Founded in 1953, Aerosonic has grown to be a leader in aviation instrumentation and avionics equipment –
including integrated cockpit displays, standby displays, digital and mechanical standby instruments, sensors and
probes. Its customers include the major manufacturers of today’s civil, military and business fixed wing and
rotorcraft platforms as well as all branches of the US military forces.
 Aerosonic offers customers a global network of products and services in North America, Europe and the Far
East. By maintaining design, manufacturing, repair and warranty facilities in major and emerging markets,
Aerosonic offers worldwide solutions. Its seamless network allows Aerosonic to provide high levels of
continuity, quality and value.
Management
Company Name Aerosonic Corp
Douglas J Hillman President/CEO
Kevin J Purcell Executive VP and CFO
Currency USD Thomas W Cason Executive VP and COO
Market Price 3
N.F.D. (€ Mln)@12/31/2011 6 Income Statement (€ Mln) Apr-10 Apr-11 ∆ % (2010-2011)
04/30/2011
Enterprise Value (€ Mln) 16 Sales 24 23 -4,9%
Source: Bloomberg @ 14/09/2012 Ebitda 4 2 -51,7%
ELECTRO TECHNIK INDU 11,15% Net Income 3 0 -85,3%
FINAN MARTIN 9,75% Ebitda % Sales 15,0% 7,6%

Ebit % Sales 13,3% 5,8%
MINERVA GROUP LP 7,41%
ATHENA CAPITAL MANAG 4,40%
STONE BRUCE J 3,72%
RUSSELL DONALD 3,39%
WELLS FARGO ADVISORS 2,22% N.F.D. 6 6 5,8%

Aerospace Defence Sector

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Aerospace Defence Sector

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Aerospace and Defence

Strictly Private and Confidential November 2012

1. Overview on the global market.................................................................................................................................................

2. The US Aerospace & Defence industry ……...................................................................................................................... Page 87

3. The European Aerospace & Defence Industry ................................................................................................................. Page 113

4. TheItalian Aerospace & Defence Industry ........................................................................................................................ Page 149

Appendix…………………………………………………………………………………………………………. Page 163

Grouping Criteria And Companies’ Analysis………………………………………………………………………. Page 176

SAAB AB-B……………………………………………………………………………………………….. Page 345

OHB AG…………………………………………………………………………………………………... Page 486

1. Overview on the global market

Commercial Aerospace Defense

Source: DTTL Global Aerospace And defence Industry Performance wrap-up

Largest increase in revenue (US$ bil) EADS 7,73 Largest

Largest decrease in revenue (US$ bil) Oshkosh Defense -2,8 Largest

Main Indicators 2011 U.S. Europe

TYPICAL AEROSPACE SUPPLY CHAIN

Primes/Original Equipment Manufacturers (OEM)

Components value as a % of aircraft value Engine mfg: Market shares by volume

Sector Units Value(US$bn)

Sources: Aerospace Global Report 2011, Clearwater

Sources: Data Monitor, Clearwater Sources: Bombardier market forecast, Clearwater

The outlook for megadeals over the balance of 2012 :

2009 2010 2011 2012

Regional distribution of all deals measured by number of deals (%)

North America North America

North America drives overall activity on the basis of US acquisitions.

Local Deals Inbound Deals

47,5% Asia & Oceania

0% 20% 40% 60% 80% 100%

Deals by aerospace & defense category

Deal activity by investor group

60,0% Financial investor

0,0% Sources: PWC-mission-control-q1-2012

Global Industry Leaders in Aerospace / Defense R&D

0% 10% 20% 30% 40% 50% 60% 70% 80%

CIVIL AERONAUTIC SPACE SECTOR

The Civil Sector is defined as The Defense Sector is defined

COMMERCIAL AVIATION MARKET

Source: DTTL Global Manufacturing Industry Group,

IATA STATISTICS 2011 2010

Source: HIS Global Insight

Revenue passanger Available seat Freight ton Available ton

Regional divergence in net post-tax profits, US$ Billion

Annual Aircraft Deliveries by Aircraft

367 22.1% 21.0%

Narrowbody Jet Widebody Jet

Widebody Narrow Body Regional

Regional Jet Deliveries

Source: Boeing, Embraer, Clearwater

Regional Jet Demand by Geography (2010-2029)

Business Jets – Market Forecast

Source: SIPRI Military Expenditure Database

Top 10 Suppliers & Buyers of Major Conventional

The 10 countries with the Highest military expenditure, 2011

Rank 2011 Spending Change Change Share of GDP

Shares of world military spending Changes in military spending by

Rapid growth in China’s military

Rapid technology cycles driving

Low Certainty High

Source: 2010 Frost&Sullivan, all rights reserved www.frost.com

The new opportunities are:

2 Sector with highest total growth potential 1 Unmanned Systems