Le Bourget – Breakfast Meeting

Le Bourget – Breakfast Meeting
Paris - 17th June 2009
Safe Harbour Statement
2
Disclaimer
This presentation includes forward-looking statements. Words such as “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”, “projects”,
“may” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements
made about strategy, ramp-up and delivery schedules, introduction of new products and services and market expectations, as well as statements
regarding future performance and outlook. By their nature, forward-looking statements involve risk and uncertainty because they relate to future
events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or
implied by these forward-looking statements.
These factors include but are not limited to:
• Changes in general economic, political or market conditions, including the cyclical nature of some of EADS’ businesses;
• Significant disruptions in air travel (including as a result of terrorist attacks);
• Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar;
• The successful execution of internal performance plans, including cost reduction and productivity efforts;
• Product performance risks, as well as programme development and management risks;
• Customer, supplier and subcontractor performance or contract negotiations, including financing issues;
• Competition and consolidation in the aerospace and defence industry;
• Significant collective bargaining labour disputes;
• The outcome of political and legal processes, including the availability of government financing for certain programmes and the size of defence and
space procurement budgets;
• Research and development costs in connection with new products;
• Legal, financial and governmental risks related to international transactions;
• Legal and investigatory proceedings and other economic, political and technological risks and uncertainties.
As a result, EADS’ actual results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a
discussion of factors that could cause future results to differ from such forward-looking statements, see EADS’ “Registration Document” dated
22nd April 2009.
Any forward-looking statement contained in this presentation speaks as of the date of this presentation. EADS undertakes no obligation to publicly
revise or update any forward-looking statements in light of new information, future events or otherwise.
EADS – Le Bourget, Breakfast Meeting
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Fabrice BREGIER, Airbus COO
Power8
A350XWB
Power8: Achievements
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• Power8 has delivered around 1,3 Bn€ gross cost savings in 2008.
• Power8 is on-track to secure 2009 targets and the targeted 2,1 Bn€ Ebit
contribution and 5 Bn€ in cumulated cash savings in 2010.
• Despite initial scepticism, economical slow down, financial impact of legislative
decisions (LME) we are delivering.
• On top of the original plan, Power8+ has launched a series of additional
initiatives (e.g. offshoring of some development activities, re-shape industrial
footprint) to overcome additional challenges and improve results beyond 2011.
EADS – Le Bourget, Breakfast Meeting
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The Power8 programme is well on track to turning
around the company’s performance and behaviours
Drive
Drive top
top
line
line growth
growth
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Customer First
Smart
Buying
Material
Drive
Drive
Reduce
Cost
Cost
Reduction
Reduction
Restore
Restore
strong
strong
Cash
Cash
Overheads
(ROC)
General
Procurement
Equipment
Aerostructures
PPS
Control Capex and
Investments
“Crisis
Management”
Streamline
Logistics
Reshape
Streamline
FALs
Industrial
Footprint
Lean
Manufacturing
Maximise Cash
Develop Faster
One
One Lean
Lean
Airbus
Airbus
Information & Communication Technology
Facility Management
EADS – Le Bourget, Breakfast Meeting
Power8: What’s changing?
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• Power8 is driving Airbus to
–
–
–
–
Drastically improve competitiveness
Streamline its organisation
Harmonise processes
Transform behaviours towards a much more performance focus and integrated
organisation
• Examples :
– Reduction of management layers and spans of control: 850 management positions
removed
– Over 5000 overhead positions have been cancelled
– Supplier base rationalisation
– Logistics and supply chain rationalised across Europe
– Externalisation/carve out of the selected plants
– Lean implementation delivering solid results in both manufacturing and engineering
– CAPEX requirements Harmonised and drastically reduced
EADS – Le Bourget, Breakfast Meeting
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We have also stretched in a Power8+ to
prepare the future beyond 2010
Power8+
Power8
2007- 2010
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2011- 2013
C. Additional Initiatives “menu”
A. Power8
• Lean Manufacturing
• Streamline FAL
• (Reshape Industrial
Footprint - Zephyr)
• P - Flying Parts
• P - General
Procurement
• Develop Faster
• Reduce Overhead
Cost
• Maximise Cash
• Facility Management
• ICT
• Logistics & Supply
Chain
• CAPEX
• Customer First
B. Stretched
Power8
Boost existing
P8 modules
Smart Buying
•Accelerate
Supplier
consolidation,
move more
suppliers to USD
and LCC, open
competition with
LCC and align
sourcing strategy
with Global
Industrial
Engineering
Footprint
Global Industrial Footprint
• Move non core Make detailed parts and subassemblies to low cost and USD zone
Global Engineering & R&D Footprint:
• Accelerate move of Airbus and subcontracted
engineering work to low cost and USD zone
• Specialised & enlarged Airbus Engineering centres
outside Europe.
ENABLER: Harmonise and simplify processes
EADS – Le Bourget, Breakfast Meeting
Power8: Summary
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• 3 Major effects of Power8 into Airbus:
– Boost Performance
– Streamline Processes & Organisation
– Change the Enterprise Model to prepare Future
EADS – Le Bourget, Breakfast Meeting
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A350 XWB : Detailed definition freeze
483 firm
orders
from 30
customers
MSN1 in FAL :
05/2011
First Flight :
02/2012
A350-900 First
delivery :
06/2013
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Synergy
Aerospace
2007
2008
Design
Freeze
MG5
Detailed
Definition
Freeze
EADS – Le Bourget, Breakfast Meeting
2009
2010
2011
2012
Final
First flight
assembly
start
2013
2014
EIS -900
EIS -800
2015
EIS 1000
On track with our
objectives
A350 XWB new ways of Working
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• New ways of working deployed to support the
development and the industrial ramp-up
– Integrated Organisation
– Extended Enterprise model with risk sharing partners
– New System Policy
– Worldwide competition
EADS – Le Bourget, Breakfast Meeting
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A350 XWB new ways of Working
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One design tool set common across Airbus and Suppliers
PDM
PRIMES SSI
Product Data Management
PTC
DMU
Digital Mock-Up
Dassault
DMU - A350 VPM
Systems
Design
Authoring
Tools interfaces
See-XP
Suppliers
Airbus
Structure
designer
Direct lessons learned from
A380 and A400M
Common architecture for tools
Same tools for Airbus and its
suppliers
Same data shared in the real
time
EADS – Le Bourget, Breakfast Meeting
DMU -VPM
database
Designer
Designer
Electrical
designer
Manufacturing
designer
Q&A
Paris - 17th June 2009
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