Slide1: EADS The step beyond Intercultural Competences in HighTech Industries-Aeronautics, Space & Defence, Thorsten Möllmann, Vice President HR-Marketing, 18/11/06


Overview : EADS at a glance II. Intercultural Competencies Overview


EADS at a glance: EADS at a glance


The CompanyFoundation partners: The Company Foundation partners Foundation companies CASA (Construcciones Aeronaúticas SA) Aerospatiale Matra SA EADS is today the second-largest group in the global aerospace and defence industry, with a unique range of products and services. DaimlerChrysler Aerospace AG EADS Date of foundation: July 10, 2000


Slide5: EADS Management Structure


The Company : The Company EADS Date of foundation: July 10, 2000 Louis Gallois Tom Enders EADS Chief Executive Officers


EADS Management Structure : EADS Management Structure Finance Hans Peter Ring EADS North America Ralph D. Crosby Jr. Airbus Military Transport Aircraft Eurocopter Space Defence & Security Systems Marketing, Strategy & Global Development Jean-Paul Gut Louis Gallois Fabrice Brégier Francisco Fernández-Sáinz François Auque Stefan Zoller Lutz Bertling Manfred Bischoff - Arnaud Lagardère Chairmen of the Board of Directors Tom Enders - Louis Gallois Chief Executive Officers Human Resources Jussi Itävuori


Slide8: EADS Competitors


Competitive Position Revenues 2005 in bn € : Competitive Position Revenues 2005 in bn € Based on 2005 average exchange rates: € /$ = 1.245; € /£ = 0.684; €/SEK=9.269 * A&D activities only. Eliminations not considered Boeing EADS Lockheed Martin Northrop Grumman BAE Systems Raytheon General Dynamics Thales Finmeccanica* L3 Communications Saab 44.1 7.6 29.9 No. 1 in Europe 34.2 24.7 22.5 17.6 17.1 10.3 9.8 2.1 No. 2 worldwide


Competitive Position Orderbook 2005 in bn €: Competitive Position Orderbook 2005 in bn € * Aerospace and defence activities ** Commercial aviation based on catalogue prices for EADS, contractual prices for Boeing Based on 2005 average exchange rates: € /$ = 1.245; € /£ = 0.684; € /SEK = 9.269 87.4 60.1 45.2 34.1 27.6 26.2 5.6 4.6 EADS* Boeing* BAE Systems Lockheed Martin Northrop Grumman General Dynamics Raytheon Finmeccanica** Thales L3 Communications Saab * Commercial aviation based on catalogue prices for EADS, contractual prices for Boeing For US players, the backlog presented above is the total backlog (Funded backlog for L3) ** Aerospace and defence activities only / AgustaWestland 100% consolidated. Eliminations not considered No.1 worldwide 253.2 20.2 164.7


EADS Sites in Europe: EADS Sites in Europe


EADS InternationalA network of offices worldwide: EADS International A network of offices worldwide London Moscow Mexico Santiago Pretoria São Paulo Washington Ottawa Madrid Rome Riyadh Cairo Athens Ankara Abu Dhabi Sydney Bangkok Kuala Lumpur New Delhi Taipei Tokyo Beijing Seoul Jakarta Singapore Warsaw Munich Berlin Paris Brussels Muscat Hanoi Canberra Tripoli


A Global Leader: No. 3 No. 3 No. 4 No. 1 No. 1 A Global Leader Commercial Aircraft Helicopters Commercial Launch Vehicles Missile Systems Satellites Military Transport Aircraft Military Aircraft No. 1 No. 1


Slide15: Strategic Goals and Priorities


Strategic Goals & Priorities: 1. Maintain the long term commercial parity with Boeing 2. Develop strong growth drivers in non-Airbus portfolio - Focus on Defence & Security 3. Become a truly global industrial group 4. Optimize profitability Strategic Goals & Priorities


Slide17: Means to achieve these goals: EADS ‘Triple I’ Internationalisation Innovation Improvement


Slide18: EADS Employees Structure


EADS Employees by Divisionsas of December 31, 2005: EADS Employees by Divisions as of December 31, 2005 Total number of employees: 113,210 3,976 (3.5%) Military Transport Aircraft 7,536 (6.7%) Headquarters & Others Eurocopter 12,755 (11.3%) Defence & Security Systems 23,237 (20.5%) Space 10,985 (9.7%) 54,721 (48.3%) Airbus


EADS Employees by Countryas of December 31, 2005: France Germany Spain United Kingdom Other Countries 43,286 (38.2%) 41,438 (36.6%) 8,710 (7.7%) 14,297 (12.6%) USA 1,877 (1.7%) Rest of world 3,602 (3.2%) EADS Employees by Country as of December 31, 2005 Total number of employees: 113,210


Overview : Get to know EADS… II. Intercultural competenicies Overview


What EADS expects…. ?: What EADS expects…. ? The highest degree of professional excellence / technical and functional qualifications Team-working / networking skills Management and leadership skills Creativity and initiatives: entrepreneurship Mobility – Continuous individual development ► Functional ► Cross-divisional ► Geographical Intercultural awareness and adaptation


Human Aspect of Internationalisation: Human Aspect of Internationalisation Importance of international mindset ► Openness ► Sensitivity ► Flexibility ► Trust Importance of maintaining your own roots ► National heritage and identity ► Values, behaviours… ...enhance cultural awareness and adaptability, while respecting your own heritage and identity


Competencies for International Managers: Competencies for International Managers


Slide25: Globalization of the business world continues the trend of organizations utilizing managers for expatriate assignments or to work internationally on a day-to-day basis in transversal multi-national teams. One of the key contributors to success in today’s global organizations is the cross-cultural adaptability of leaders to various environments, people, situations, and different working styles Being successful in working internationally in today’s global business environment requires A different kind of competencies of managers and leaders A different set of knowledge, skills, abilities and other characteristics The following depicts some of the key areas needed to be successful internationally Introduction


Slide26: A must for international managers/leaders is: extensive past travel & moving experiences within their own country and internationally high technical competence in their respective area of expertise superior knowledge of global business and geopolitics indepth knowledge of various countries, its culture, history, people, systems, etc. excellent knowledge in organizational positioning / political savyness What is the knowledge of cross-culturally adaptable leaders?


What type of personality do cross-culturally adaptable leaders have?: What type of personality do cross-culturally adaptable leaders have? Cross-cultural adaptable leaders usually have a personality described as: highly extroverted very open to new experiences highly conscientious very agreeable highly emotionally stable very humble, modest and respectful authentic Empathetic inclusive and encouraging towards others


What are the skills and abilities of cross-culturally adaptable leaders?: What are the skills and abilities of cross-culturally adaptable leaders? A comprehensive study of international managers has shown that cross-culturally adaptable managers/leaders have: a sophisticated ability to develop and maintain relationships and networks a strong willingness and ability to communicate effectively with anybody anywhere outstanding conflict resolution and perspective taking skills a high tolerance for stress and excellent stress management skills the ability to substitute reinforcement, meaning a repertoire of leisure time activities/favorites to choose from independent from which country they are in…they find « fun things to do »)


Slide29: Developing today‘s and tomorrow‘s leaders for sustained business success


Slide30: EADS HR Organization Divisions AIRBUS AERONAUTICS SPACE EUROCOPTER DEFENCE & SECURITY SYSTEMS MTA


Target Population: Target Population Corporate HR Div/BU HR Responsibility „Owner“ Management Levels L 2 L 3 L0 L4 L 5 L 1 Executives Senior Manager Manager


Leadership Development Strategy: Leadership Development Strategy Recruit and deploy diverse workforce Develop INTERNATIONAL management and global leadership Develop system solutions Focus on global leadership Exploit cross-Div/BU synergies Strengthen global competitive position Develop a management able to think in broad systems Reinforce continuous IMPROVEMENT and entrepreneurial spirit Cross-functional mobility International Mobility Increase group-wide exchange Enhance integration Support INNOVATION Cross-Div/BU mobility Triple “I“ Strategy Develop, retain Top Talents through international assignments (EU/RoW) Plan succession Recruit and deploy diverse workforce Develop INTERNATIONAL management and global leadership


EADS’ Future Leaders:Key Management Competencies: EADS’ Future Leaders: Key Management Competencies International mindset, cultural awareness Managing complexy and uncertainty People and diversity management Team spirit and commitment Transparency and openness Creativity and innovation Entrepreneurial spirit – result driven High level of technical / professional skills and competencies


Management Development:to ensure that we have the right leaders …: Management Development: to ensure that we have the right leaders … in the right places at the right time … delivering business results


Career tools: Career tools on-the-job: Job Rotation Mobility Transversal Projects Special Assignments /Exchange programmes Mentoring Programme off-the-job: Management & Leadership Programmes Executive Education Strategic Platforms Action Learning Expeditions Management Development Compensation and benefits Variable pay Stock options…


LD&L Portfolio: LD&L Portfolio T.E.T. Summer academy Hot Topics EXPAND Executive Forums T.E.C. procurement Human resources experts Sales Marketing TRAINEE PROGRAM Development Center Finance FAST Program managers CREATING & SHARING COMMON STRATEGIC VISIONS IN EADS ACHIEVE FROM MANAGEMENT TO LEADERSHIP DEVELOPMENT OF MANAGERIAL COMPETENCIES Action Learning Exped. SHARE COMMON LEADERSHIP & MANAGERIAL CULTURE, SECURING THE SUCCESSION PLANNING L3 L4 L2


Slide37: Thank you for your attention