4. HOLGER ROHDE Aarhus Presentation Slides2

Strategic Procurement in Airbus November 2012

Presented by

Dr. Holger ROHDE

VP Airframe Workpackages

Aerostructure Procurement

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

2012 announced outlook (Jan): Airbus: ¬570 / Boeing: ¬585-600 commercial deliveries – subject to confirmation

Largest aircraft manufacturer 9 out of last 10 years

0

100

200

300

400

500

600

700

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(outlook)

Airbus

Boeing

Annual deliveries

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

2012 announced outlook (Jan): Airbus: ¬570 / Boeing: ¬585-600 commercial deliveries – subject to confirmation

0

100

200

300

400

500

600

700

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(outlook)

Airbus

Boeing

Annual deliveries

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

13 models

11 861 aircraft sold

7447 delivered

342 customers

Airbus – End September 2012

Current status:

405 aircrafts delivered

Firm orders of 437 aircrafts

Airbus in-service fleet of some 6931 aircraft with 389 operators

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

13 models

11 861 aircraft sold

7447 delivered

342 customers

Airbus – End September 2012

Current status:

405 aircrafts delivered

Firm orders of 437 aircrafts

Airbus in-service fleet of some 6931 aircraft with 389 operators

Backlog of

~4,500 aircraft (or 8 yr of production)

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

13 models

11 861 aircraft sold

7447 delivered

342 customers

Airbus – End September 2012

Current status:

405 aircrafts delivered

Firm orders of 437 aircrafts

Airbus in-service fleet of some 6931 aircraft with 389 operators

Book-to-Bill >1

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Air travel remains a growth market

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

20-year demand for ~27,350 aircraft

Source: Global Market Forecast 2012

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

20-year demand for ~27,350 aircraft

Source: Global Market Forecast 2012

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

A380

A350XWB

Long Range

Volume ramp-up evolution

Single Aisle

illustrativ

+40%

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

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20

40

60

80

100

120

140

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

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Nov

2008

2006

Nov

2010 Oct

2011

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Things to Remember

1. It‘s about growth

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3

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Page 13

Airbus Sourcing is not reflecting the customer shift to the East

Procurement Set-up & Strategy

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Page 14

Airbus Sourcing is not reflecting the customer shift to the East

Aerostructure

Equipment

General

Procurement

Material

Propulsion

General

Procurement

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Page 15

Airbus Sourcing is not reflecting the customer shift to the East

Aerostructure

Equipment

General

Procurement

Material

Propulsion

General

Procurement

22%

11%

22% 6%

39%

Aerostructures

Equipment

GeneralProcurement

Material

Propulsionsystems

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Multi-Functional Team

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1 Define Commodity Strategy

2 Manage work package

life cycle

3 Manage supplier performance

4 Define improvement actions

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Airframe WP – Products & Services

Page 17

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Airframe WP – Products & Services

Page 18

MFT Services

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Airframe WP – Products & Services

Page 19

MFT Interior

MFT Services

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Airframe WP – Products & Services

Page 20

MFT Tubes & Pipes

MFT Services

MFT Interior

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Airframe WP – Products & Services

Page 21

MFT Services

MFT Interior

MFT Tubes & Pipes

MFT Doors

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Airframe WP – Products & Services

Page 22

MFT Services

MFT Interior

MFT Tubes & Pipes

MFT Doors

MFT Electrics

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Multi-Functional Team

Page 23

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Multi-Functional Team

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Procurement

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Multi-Functional Team

Page 25

Procurement

Engi-neering

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Multi-Functional Team

Page 26

Procurement

Engi-neering

Pro-gramms

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Multi-Functional Team

Page 27

Procurement

Engi-neering

Pro-gramms

Opera-tions

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Multi-Functional Team

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Procurement

Engi-neering

Pro-gramms

Opera-tions

Custo-mer

Support

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Airframe WP – Products & Services

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1 Strategic Supplier Manager Strategic Single Voice of Airbus

1 Operational Supplier Manager Manage Transversal Projects and Data

1 Supply Chain & Quality Manage Capacity, Capability and Performance

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Electronic Communication Platforms

Page 30

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Aerostructure

Equipment

General

Procurement

Material

Propulsion

25bn EUR

General Procurement

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Page 32

Airbus Sourcing is not reflecting the customer shift to the East

Aerostructure

Equipment

General

Procurement

Material

Propulsion

80% of CoS

General Procurement

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

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Airbus Sourcing is not reflecting the customer shift to the East

80% of CoS

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

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Airbus Sourcing is not reflecting the customer shift to the East

Source: Sourcing report 2011 and

deliveries status onJuly 31st, 2012 The Global Sourcing Challenge

Deliveries: 32%

Backlog: 23%

Buy: 33%

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Page 35

Airbus Sourcing is not reflecting the customer shift to the East

Deliveries: 31%

Backlog: 18%

Buy: 66%

The Global Sourcing Challenge

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Page 36

Airbus Sourcing is not reflecting the customer shift to the East

Deliveries: 25%

Backlog: 37%

Buy: 1.2%

The Global Sourcing Challenge

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

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Airbus Sourcing is not reflecting the customer shift to the East

Deliveries: 5%

Backlog: 12%

Buy: <1%

Deliveries: 5%

Backlog: 8%

Buy: <1%

The Global Sourcing Challenge

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Where are our Future Customers?

At end July 2012. Airline + lessor orders (distributed based on regional fleet in service of lessor aircraft today). Percentages are rounded

In addition, undisclosed orders for 2 aircraft

Source: Airbus

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

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Aerostructure

Equipment

General

Procurement

Material

Propulsion

General Procurement

Globalize the Supply chain

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Things to Remember

1. It‘s about growth

2. It‘s global

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3

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

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General

Procurement

Globalize and consolidate

the Supply chain:

Fewer and bigger

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Globalize & consolidate the Supply chain: Bigger & fewer

10-20% large suppliers

> 100k EUR per ship set

A320 & A330/340

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Page 43

Globalize & consolidate the Supply chain: Bigger & fewer

~40% large suppliers

> 100k EUR per ship set

A380

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

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Globalize & consolidate the Supply chain: Bigger & fewer

~75% large suppliers

> 100k EUR per ship set

A350 XWB

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

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Globalize & consolidate the Supply chain: Bigger & fewer

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

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General

Procurement

Develop the Supply chain:

Robust & Ready for Ramp-up

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Development Phase

Industrial PROCESS

CAPABILITY ASSESSMENT

Process and Product

QUALIFICATION

Product and quality AUDITS

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© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Serial Phase

Industrial PROCESS

CAPABILITY ASSESSMENT

CAPACITY Contingency

Assessment

Supplier IMPROVEMENT

Page 48

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What‘s the Target

Page 49

Lead the Change

Continuous Improvement

Customer Demand at Lower Cost

Operate a Robust Process

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

The Road to Industrial Excellence

Quality & Standardisation

Lean Supply Chain

Correction, Improvement, Development

Collaboration and Ownership

Page 50

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Improvement Portfolio

Page 51

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Structural capacity & capability

Mature processes

Right First Time

Schedule Adherence control

Lean approach

W

H

A

T

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Supplier Ownership

Executive Level Sponsorship

Structured Project Management

Signed Performance

Improvement Agreements

H

O

W

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. © A

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• Innovative and leading technologies

• Long term partnership in a growing market

• Optimized input cost via material enablement

• Support for continuous improvement

AIRBUS offers:

• Competitive partners (Price, quality and reliability)

• Industrial Excellence

• Financial health

• Best class project management

• High reactivity in Engineering & After Sales support

• Strong Supply Chain

AIRBUS expects:

Tier-n Tier-1 Airbus

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Things to Remember

1. It‘s about growth

2. It‘s global

3. It‘s about big,

strong partners

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© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

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