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Open Days Bruxelles

October 2007

REGIONAL ASSETS AND STRATEGIES

TO ATTRACT INVESTORS

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An innovative project to attract

aerospace companies in Auvergne : AIRSET

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Auvergne, a region of France with key aeronautics assets

Auvergne, a crossroad region in the heart of Europe

• 1 300 000 inhabitants• A large airport platform (regional hub for Air France)• A GDP per capita of 21 455 euros (2003)

Auvergne, a key player in the aeronautics industry

• 4th aeronautics region of France• Aeronautic background linked to national history (WWII

building of bomber aircraft)• A wide range of skills in mechanics and metal working• International notoriety in composite materials for

aeronautics• 2000 employees devoted to maintenance • Key know-how in the electronics and connectics sector• European leadership in alloys• A worldwide reference for pneumatic tire technology

Air France GroupMRO center

Certified for Embraer aircraft

World-class leader in radial aeronautics tires

Leading European player and the worldwide co-leader in aluminium alloys for the aeronautics industry

European Leader in steel manufacture

French leading company in the work of aluminum, titanium,

stainless steel, steel

Manufacturer of the 1st 100%-composite

material aircraft in the world

AuvergneAéronautique

AIA (l’atelier industriel aéronautique) - MRO

center for military aircraft The aeronautics

industry in Auvergne

10th largest airport of France

Turnover of 13 bn euros

100 companies regrouped in one association (AVIA)

16 000 employees

A world leader for Unmanned Aerial

Vehicle (UAV)

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A strong motivation from the Regional Government of Auvergne to structure and consolidate aeronautics industry

A strong motivation and commitment to foster economic regional development

• Willingness to launch federating projects in key industrial fields of Auvergne, among which Aeronautics, to help :

– regional companies to improve their competitiveness

– new companies to create jobs in Auvergne

Resources available to boost economic development in Auvergne

• Dedicated human resources for the regional economic development– Operational arm of the local government (ARDE) where dedicated

resources can supervise the implementation of big industrial projects

– Strong involvement of the Regional government in various economic development projects

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The Region Auvergne initiated an ambitious aeronautic project

launched in 2006 under the name AIRSET

What is AIRSET ?

A one-stop shopping solution for aircraft asset management

A one-stop shopping solution for aircraft asset management

For which type of aircraft?

1. Regional aircraft1. Regional aircraft

2. Business aircraft2. Business aircraft

&

Who is it for?

1. Aircraft owners1. Aircraft owners

2. Aircraft operators2. Aircraft operators&

Where will it be located?

In the Auvergne region, the heart of Europe

In the Auvergne region, the heart of Europe

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A global offer, available from a one-stop shop, to optimizethe fleet management of regional and business aircraft

Service portfolio of AIRSET

Remarketing of aircraft Delivery of aircraft Return of aircraft Repossession of aircraft Support to acquire an aircraft (…)

Financing scheme Lease management Risk management

Site selection Tailored storage program Ferry of aircraft to storage

facility Induction into storage Storage surveillance Reactivation and preparation

for Ferry (…)

Checks pre and post-flight Planned checks Customization Cabin modifications Cabin refurbishing (…)

One-stop

shop

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One contact in one location federating in-situ and external expertise to help customers save time and money

ONE STOP SHOPAsset management

Online technical documentation

database

Multilingual call center

as clientinterface

CUSTOMER SERVICE H24

Network of certified expertise• Maintenance Repair and Overhaul• Cabin refurbishing• Production and repair of parts made

of composite material

Network of certified expertise• Maintenance Repair and Overhaul• Cabin refurbishing• Production and repair of parts made

of composite material

• Boilermaking work• CMS (Cabin management system)• IFE (In-flight entertainment)• Painting

Fully-serviced Airport zone

Fully-serviced Airport zone

Modern airport dimensionned to cope with a growing traffic

Resources and infrastructure available to AIRSET

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AIRSET, a commercial company that exploit the concept developed on public funds

The Regional government

• Holder of the “AIRSET license” as it financed the preliminary studies and the pre-launch phase, the regional government has the license property

• The government is also supporting the economic development of the Auvergne region by helping local companies to acquire the necessary expertise and attracting new companies.

The commercial company AIRSET

• Company status: The private company is a SAS Société par actions simplifiée (Simplified corporation) with 10 shareholders.

• Relation with the public authorities:

– The private company is the licensee of the AIRSET concept which will remain the property of the public authorities

• Shareholders: The identified potential shareholders have complementary activities to avoid business conflict and have competence that will be useful for the commercial company.

S.A.S. AIRSET

K : 500.000 €

Shareholder B

license contrac

t

client X client Z…client Y

Supplier m…

Supplier l

Supplier k

Shareholder C…

Shareholder A

Supplier jSupplier i

ARDE

Shareholder

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All new services are being organized around the modern Clermont-Ferrand airport

A Modern airport, dimensioned to cope with growing traffic

• Special skills available in airport maintenance • 1st European airport authorized to experiment

the EGNOS signal for aircraft landing • A hub planned to receive 150 daily

flights, 1 million passengers• Certified ISO 9001/2000

Aircraft wiring and system integration (IFE, CMS)

Parts & small mechanism production

Surface treatment

Cabin refurbishment(seats, galleys, carpet)

MRO(Embraer, Fokker & Saab

Ratings)

Asset ManagementEngineering

Aluminium, titanium, stainless steel & steel work

TODAYTODAY

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An ambitious project to attract new investors

Fully-serviced Airport zone

• A 33-hectare zone reserved for subcontractors of the aircraft industry, connected to the 3000 meterrunaway by a private taxiway

• A space allotted for temporary plane parking sufficient to host 20 mid-sized planes

• Available premises • Zone located one-kilometer away for the motorway

+ Wheel & brake maintenance center

+ MRO(ATR, Cessna, Beech

ratings)

+ Aircraftpainting

cabin

+ CompositeRepair shop

+ Retrofit for EGNOS equipments

20082008

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A project imagined to stimulate the regional aerospace industry and attract new companies

A new dynamic

• This unique one-stop-shop for global and centralized aircraft asset management is a true locomotive for aerospace-related services in Auvergne.

Opportunities for external partners

New opportunities for development taking advantage of the Airset dynamic include:

• Specialised training institution for aerospace technicians

• Facilities to test and experiment satellite navigation applications for aviation using EGNOS and Galileo

• Composites training centre

• An aircraft paint shop meeting the strictest environmental standards ??

??

??

??

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The Airset service company in Auvergne whose clients are regional and business aircraft owners and operators with service needs in Europe has the ambition to extend the Airset network and create one stop shops for aircraft asset management worldwide.

This is why the Auvergne Regional Development Agency, owner of the Airset concept, is promoting its implementation in other regions of the world.

Opportunities in other places of the world

Canada

India Émirates China