January 21, 2010 / 12:55 PM / 8 years ago

FACTBOX-The big money behind Airbus A400M talks

Jan 21 (Reuters) - Billions of euros are at stake in talks over the future of the Airbus EAD.PA A400M military transporter. [ID:nLDE60K1E8]

The numbers are laid out in unprecedented detail in an audit report commissioned by a group of European purchasing nations.

Here are the key figures in Europe’s largest defence deal, according to the December 2009 report by PricewaterhouseCoopers, a summary of which was obtained by Reuters.

Airbus parent EADS declined to comment. All figures in millions of euros except where stated. For options discussed by PwC please click on [ID:nLDE60K0N5]



Original contract price 19,193

Revised cost estimate from Airbus 30,436

Resulting loss -11,243 Internal cost saving target 3,640*

Loss based on existing contract -7,603 Price increase requested by Airbus 5,203

New contract price 24,396

Implied loss if request approved -2,400

* Only achievable with improved management, says PwC

(Note: EADS has taken A400M provisionsof 2.4 billion euros, of which it says it has consumed 1.1 billion euros).



Amount spent on development so far (end 2008) 5,467

Remaining costs 24,969*

(includes provision against risks: 3,792)

Planned cost savings 3,640

Net remaining costs estimated by Airbus 21,326

PwC estimate of remaining costs 21,038

* PwC says this figure rose by 3.47 billion euros between Sept. and Nov. 2009 for reasons Airbus could not identify)



(Note: The report notes that EADS expressed concerns about the assumptions used in this part of the audit exercise)

Gross cash at end-2009 14,213

Gross cash at end-2013 (excl. A400M impact) 6,483

Funding sources

Credit facility 3,000

EMTN bond programme 1,500

Note: The EADS website says it has an undrawn 3 billion euro revolving credit facility maturing in July 2012, a 3 billion euro EMTN of which 2.5 billion has been issued, a short-term French commercial paper programme and a fully drawn European Investment Bank loan of 300 million euros. Reporting by Sabine Siebold and Tim Hepher; Editing by Andrew Callus

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