1. Airbus has seen strong growth over the past decade and expects continued growth in aircraft demand over the next 20 years. 2. Airbus' customer base is shifting more to Asia but its supply chain does not yet reflect this change. 3. Airbus aims to globalize and consolidate its supply chain by partnering with fewer but larger suppliers that can support its growth and production ramp-ups.

1. Strategic Procurement in Airbus
November 2012
Presented by
Dr. Holger ROHDE
VP Airframe Workpackages
Aerostructure Procurement

2. © 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

3. © 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

4. © 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

5. © 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)

6. © 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

7. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Air travel remains a growth market

8. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
20-year demand for ~27,350 aircraft
Source: Global Market Forecast 2012

9. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
20-year demand for ~27,350 aircraft
Source: Global Market Forecast 2012

10. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
A380
A350XWB
Long Range
Volume ramp-up evolution
Single Aisle
illustrativ
+40%

11. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
82
87
103
109
117
121 121
0
20
40
60
80
100
120
140
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Page 11
Nov
2008
2006
Nov
2010 Oct
2011

12. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Things to Remember
1. It‘s about growth
Page 12
3

13. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 13
Airbus Sourcing is not reflecting the customer shift to the East
Procurement
Set-up &
Strategy

14. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 14
Airbus Sourcing is not reflecting the customer shift to the East
Aerostructure
Equipment
General
Procurement
Material
Propulsion
General
Procurement

15. © 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
General
Procurement
Material
Propulsion
systems

16. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Multi-Functional Team
Page 16
1 Define Commodity Strategy
2 Manage work package
life cycle
3 Manage supplier performance
4 Define improvement actions

17. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Airframe WP – Products & Services
Page 17

18. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Airframe WP – Products & Services
Page 18
MFT
Services

19. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Airframe WP – Products & Services
Page 19
MFT Interior
MFT
Services

20. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Airframe WP – Products & Services
Page 20
MFT Tubes
& Pipes
MFT
Services
MFT Interior

21. © 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

22. © 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

23. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Multi-Functional Team
Page 23

24. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Multi-Functional Team
Page 24
Procure
ment

25. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Multi-Functional Team
Page 25
Procure
ment
Engi-
neering

26. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Multi-Functional Team
Page 26
Procure
ment
Engi-
neering
Pro-
gramms

27. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Multi-Functional Team
Page 27
Procure
ment
Engi-
neering
Pro-
gramms
Opera-
tions

28. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Multi-Functional Team
Page 28
Procure
ment
Engi-
neering
Pro-
gramms
Opera-
tions
Custo-
mer
Support

29. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Airframe WP – Products & Services
Page 29
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

30. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Electronic Communication Platforms
Page 30

31. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 31
Aerostructure
Equipment
General
Procurement
Material
Propulsion
25bn EUR
General Procurement

32. © 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

33. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 33
Airbus Sourcing is not reflecting the customer shift to the East
80% of CoS

34. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 34
Airbus Sourcing is not reflecting the customer shift to the East
Source: Sourcing report 2011 and
deliveries status onJuly 31st, 2012The Global Sourcing Challenge
Deliveries: 32%
Backlog: 23%
Buy: 33%

35. © 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

36. © 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

37. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 37
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

38. © 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

39. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 39
Aerostructure
Equipment
General
Procurement
Material
Propulsion
General Procurement
Globalize the Supply chain

40. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Things to Remember
1. It‘s about growth
2. It‘s global
Page 40
3

41. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 41
General
Procurement
Globalize and consolidate
the Supply chain:
Fewer and bigger

42. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 42
Globalize & consolidate the Supply chain: Bigger & fewer
10-20%
large suppliers
> 100k EUR per ship set
A320 & A330/340

43. © 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

44. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 44
Globalize & consolidate the Supply chain: Bigger & fewer
~75%
large suppliers
> 100k EUR per ship set
A350 XWB

45. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 45
Globalize & consolidate the Supply chain: Bigger & fewer

46. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 46
General
Procurement
Develop the Supply chain:
Robust & Ready for Ramp-up

47. © 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
Page 47

48. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Serial Phase
Industrial PROCESS
CAPABILITY ASSESSMENT
CAPACITY Contingency
Assessment
Supplier IMPROVEMENT
Page 48

49. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
What‘s the Target
Page 49
Lead the Change
Continuous
Improvement
Customer Demand
at Lower Cost
Operate a Robust
Process

50. © 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

51. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Improvement Portfolio
Page 51

52. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 52
Structural capacity & capability
Mature processes
Right First Time
Schedule Adherence control
Lean approach
W
H
A
T

53. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
Page 53
Supplier Ownership
Executive Level Sponsorship
Structured Project Management
Signed Performance
Improvement Agreements
H
O
W

54. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.
©AIRBUSS.A.S.Allrightsreserved.Confidentialandproprietarydocument.
• 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

55. © 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
Page 55
3

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