Martin LeeMarch 2017

Agenda3

1. Airbus Defence and Space

2. Procurement within Airbus Defence and Space

3. Supplier Engagement

4. Opportunities

5. Questions

4

Airbus Defence and Space

Airbus Defence and Space

CEO

Dirk Hoke

CORPORATESECRETARYThomas Gottschild

HUMANRESOURCESLars Immisch

FINANCE

Julian Whitehead

STRATEGY

Antoine Noguier

COMMUNICATIONS

Dirk Erat

LEGAL ANDCOMPLIANCEAndreas Riecker

MILITARYAIRCRAFT

Fernando Alonso

SPACESYSTEMS

Nicolas Chamussy

COMMUNICATIONSINTELLIGENCE &SECURITYEvert Dudok

OPERATIONS,ENGINEERING

André-Hubert Roussel

MARKETING & SALES

Jean-Pierre Talamoni

4

€14 Bnrevenue

Order book >€40 Bn

>€500m spent on R&D&T annually

24 Countries 100 sites

40,000 Staff

86 Nationalities

Voyager10km

Telecom Sat36000km

Geo Intel Sat12000km

Skynet 536000km ExoMars

225,000km

LISA Pathfinder120,000,000km

Solar Orbiter150,000,000km

A400M9km

Rosetta1 billion km Ground Control Systems

Secure Communications

Geo Intelligence Services

Border Security

Cyber Security

Aircraft Services

Zephyr21km

7

Airbus Defence and Space Activities in the UK

Military Aircraft

• Unmanned Aerial Systems –ZEPHYR HAPS (endurance world record holder)

• A400M Production, all wings produced at Filton

• A400M 14% UK Supplier content

• A400M In Support at Brize

• Telecommunication Satellites

• Earth Observation/Science Satellites

• Radar instruments

• Navigation Ground Control

• Predominantly a commercial company but with institutional business

• 60% of turnover is export

Space Systems

Communications, Intelligence & Security • Europe´s # 1 in Secure Communications services & solutions,

added-value services for air, sea and land applications

• Satellite based Geo-Intelligence Services

• Government Satellite Communication

• Cybersecurity Solutions and Services

Contribution to UK Economy8

• 10 UK sites• >4000 Staff• >2500 approved Suppliers• >15000 jobs sustained across the UK• €1Bn+ revenues • We typically contract >€500M with >1500 UK

companies per annum• We typically spend €250+M with overseas

suppliers every year• 20+ collaborations with UK universities

Key UK Facilities9

Stevenage 1300 employees Satellite Design and

Manufacture Paradigm HQ

Portsmouth 1100 employees Payload integration/test; RF products

and spacecraft instruments Ground Systems

Newport• 600 employees Cyber security, Defence Systems

and Airbus Group, Innovation

SSTL, Guildford 400 employees Smallsat Design and Manufacture

GEO-Information, Guildford, Leicester, & Newcastle

150 employees Satellite/Aerial Imagery Mapping & Analysis

Paradigm, Hawthorn 250 employees in total MilComms Services

10

Airbus Defence and Space Procurement

Procurement, Supply Chain and Logistics11

Supply Chain OperationsDay-to-day management of the supplier;

PO placement;Logistics/transport /warehousing

OQOTD

Supply QualityLong-term development of supply base;

Recovery; Supplier surveillance and impact; Quality management; OQD

Business SupportPerformance Metrics and data; Tools/processes;

Global sourcing; Support to contract negotiations (T&Cs)

Project Supply Managers Interface to/from projects

and proposals to procurement organization

Customer Satisfaction

Airb

us B

ids a

nd p

roje

cts

SUPPLIERS

Bids

Delivery

COMMON ENABLERS

Complemented by Project/Bid Engineering

Experts

Strategic

Tactical

CommoditiesSupplier Selection and Negotiation

Systems & Equipment

Flight SystemsPlatform Systems

PropulsionMission Systems

Structures & Materials

Ac StructuresAssemblies

Raw Materials

Services & IT

Equipment Support ServicesOperational Ground ServicesMRO & FAL Support Services

Training Services and SimulatorsIT & Software

As a partner to all internal customers, Procurements mission is to develop and maintain a reliable and competitive supply base that is committed to the continuous improvement of performance, products and

services

12Our Hot Spots

Niche capabilities(Innovative, emergent

and disruptive technologies)

CompetitivenessIn a

Global market

Operational Effectiveness & Excellence

(Capacity, timelinessand performance)

Cyber Security

(Keep Airbus Safe)

Collaborationand a relationship

were both parties benefit

Value Engineering(fitness for purpose, no expensive bells

and whistles)

Proven Capability

With no compromise on product quality

Adaptive, agile and resilient supply chains

Collective Intelligence

Cyber Security: Protect Airbus our Supply Chain and our Customers

13

Cyber security now an essential part of daily business• Criminal activity is becoming more frequent and more sophisticated• 81% of large organizations have reported a security breach • 60% of small organizations have reported a security breach • 70% of organzsations keep their worst security incidents under

wraps • 7% of the worst security breaches are partly caused by senior

management giving insufficient priority to security • The scale and cost of security breaches nearly doubled in 2014

Airbus supplier selection will consider your cyber security

14

Supplier Engagement

OUR SME Engagement Model 15

Discoverand understand the SME’s

SME Engagement Model

Engageremove entry barriers and provide opportunities

EmbraceTheir individuality and innovation

EncourageImprovement and support growth

DeliverOn performance and commitments

Our Commitment….WE WILL16

In order to assure our worldwide competitiveness we are highly focused towards the development and global sourcing of the most innovative products and services the market can offer . We actively encourage engagement with SME’s who can deliver a value added contribution in today’s challenging environment.

As part of the SME engagement process Airbus Defence and Space will:

• Work with external organisations to promote the development and growth of the SME community and engage with them at events aimed at promoting collaboration.

• Openly consider unsolicited innovative solutions, proposals and ways of working with agile and innovative SME’s.• Provide equal opportunity to suppliers based on their ability rather than their size or demographic structure.• Aim to maximise the contribution and support of SME’s and endeavour to achieve 25% SME content by value

throughout the supply chain. • Willing contract on terms that are proportionate to the value, risk and commercial construct required to appropriately

execute the contract.• Contribute to the development of innovative SMEs through stretch targets, constructive review and feedback and

engineering/technical assistance.• Only issue request s for proposal to SMEs were we intend to procure their services should they demonstrate that they

are the most appropriate Supplier for the defined opportunity.• Require and actively encourage environmental and social values and cyber protection of all IPR and data.

Targeted Innovation and R&T&D 17

• Innovation is being provoked in all aspects of the supply chain• Key elements for successful innovation Understanding and anticipating customer needs Re-use and standardization – drives down cost and risk Awareness of “what is out there” (“shopping around” for building blocks within the industry and other markets)

IDEA CONCEPT DEVELOPMENT PROSPECTIVESALES

Contract

Proposal

PROGRAM

R&T&D

TRL1 TRL2 TRL3 TRL 4-5-6 TRL 7-8-9

New Market

New Customer Requirements

Business Innovation

Institutional Requirementsand Funds £ € $

Airbus Requirementsand Funds €

SME’s

- Open innovation- Technology mining- Enabling or Disruptive technologies

Advanced Concepts

• Innovation “The process of translating an idea or invention into a product or service the creates value or for which customers will pay” Involves application of information, imagination and initiative Satisfies needs or expectations of customers Creates competitive advantage and long lasting value creation

18

Opportunities

Opportunities - General

• A new approach to ALM.• ITAR free content• Contract Electronics

Manufacturing• Low cost optical comms• Light weight structures• Graphene applications• Novel energy sources• Spin-in technologies• Photonics• High capacity low power/weight

batteries (significant advance on today’s Lithium Ion batteries)

• Collaboration with UK SME’s with disruptive technologies and solutions

19

Space Systems20

LISA PathfinderViewing the Universe in a new light via a ‘physics lab in space’ to determine the answer to key elements of Einstein’s theory of general relativity

• High power solid state power amplifiers (TWTA replacements) e.g. Ka-band 75-200W

• Active flat panel array antennas, active switch matrices, beamformers, high efficiency GaN MMIC

• High throughput satellites (HTS) migrating to use of higher frequency bands (Q, V and E/W bands – 37.5-42.5, 47-50GHz and 71-76GHz / 81-86GHz) –

• Innovative and compact butler matrices for use in multi-port amplifiers

• Lightweight / low loss, high frequency RF coaxial cables up to V-band

• On-board processing / computing / software defined radio for high throughput applications – path to 1Terabit/s satellites

• RF-MEMS, high speed ADC/DAC cores

• Radio Frequency (RF) & Microwave Communication Equipment

• Solar Array. Flight Control and Command Devices.

• Optical components. Computer, Data Storage and Servers.

• New equipment requirements for V and E-band LNA and V to Ka, W to Ka, and Ka to Q-band converters

• Low cost rad hard DC-DC (or PSU on a chip), ferrite switch technology, additive manufacture

Telecommunication Satelliteswith over 100 sent in to orbit, including the new all-electric satellites

ExoMarsLooking for life on the Red Planet

Telecommunication Satelliteswith over 100 sent in to orbit , including the new all-electric satellites

Military Aerospace21

• Zephyr, requires light weight and highly efficient technologies:

• Rechargeable power• light weight, photovoltaic cells• electric motors• Aero structures• Innovative Payloads

• Canadian C295 FWSAR campaign award is expected to take place by year’s end/beg 2017. UK typically provides cabin supplies.

• Effective through-life and MRO materials and solutions

• New Eurofighter orders will provide further opportunities

• Communications and audio management systems

• Ground equipment

Zephyr – powered by the SunWorld recording holding solar electric pseudo-satellite

offers persistent, flexible and affordable services with the ability to operate non-stop for weeks with a flexible

payload capabilityBased in Farnborough

Defence, Intelligence and Security22

• Routing technology for use in unreliable and low capacity links. (e.g. DLEP, ad-hoc networking)

• Secure gateways, cross-domain gateways and firewalls (accredited by CESG or have the potential to be, in particular for IL 5 or above)

• Modems with high capacity and anti-jamming capability

• Small High accuracy and stability clocks, in particular ones that can be stable and free-run within 1 U.I for several months at 10Mbps plus.

• Ruggedisation solutions to protect COTS in a wide range of environmental conditions (A1-3, C0-C2).

• Homomorphic encryption and secure multi-party computation capable of being accredited by CESG for use above official sensitive and on a realistic timescale. (IL5).

• Advances in malware detection, in particular zero day attacks, where the capability is proven against real threats

• Wireless LAN with potential for physical layer security 60GHz WLAN, LiFi

• Non-GPS navigation solutions (in particular if self-contained, small and low power).

• Steerable phased array antenna at Ka, E and G communications bands

• High video compression with a defined effect on video quality (e.g. real-time H.265)

• Any significant advance in Beyond Line of Sight communications (e.g. HF or Troposcatter)

• Radios which can achieve near Shannon limit communications with low bit error rate

• Secure handsets (in particular SCIP) which can be approved for use in scenarios above IL3

• High reliability, provably difficult to spoof Biometric ID systems (speculative)

• Physically Uncloneable functions suitable for use in deployed environments.

• Quantum computing safe cryptography

23

Questions

Voyager10km

Telecom Sat36000km

Geo Intel Sat12000km

Skynet 536000km

ExoMars225,000km

LISA Pathfinder120,000,000km

Solar Orbiter150,000,000km

A400M9km

Rosetta1 billion km Zephyr

21km ?

24More Information ………..

If you are a supplier interested in becoming part of our supply chain please register your company’s information through the

Airbus Defence and Space eProc Tool.

https://airbusdefenceandspace.com/contact-us/supplier-information/• Become a Supplier• Supplier General Terms & Conditions of Purchase• Export Control• Supplier Quality Requirements• External Regulations• Collaboration• Ethics and Compliance• Media Corner

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