International Aerospace & Defense Trade Summit

How to Do Business with Airbus?

Groton, CT

November 2015

November 2015Aerospace & Defense Connecticut

Connecticut

Marc Vibes – Director Procurement

Joe Marcheschi – Director Procurement

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Airbus Group at a glance

November 2015Aerospace & Defense Connecticut

- Airbus Military

- Cassidian

- Astrium

- Eurocopter- Airbus Commercial

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Airbus Group North America

•Airbus Group ~ 50

•Airbus Americas ~ 1300

•Airbus Defense & Space ~ 1200

•(Divestments in progress) ~ -750

•Airbus Helicopters ~ 1000

•Vector Aerospace ~ 1100

•STELIA Aerospace ~ 450

~50 Locations

~5100 Employees / Contractors

~3500 USA

~1600 Canada

November 2015Aerospace & Defense Connecticut

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Airbus in the US

November 2015Aerospace & Defense Connecticut

• Catalyst for $15.8 billion in annual aircraft related expenditure in the USA

• Supporting over 262,000 jobs

• Suppliers in over 38 states

• Five primary Airbus sites, employing over 2,000 employees

A strong and growing physical and economic presence in the USA

• 2016 – Mobile FAL to deliver first American assembled A320

Headquarters

Herndon, VirginiaAirbus Spares Center

Ashburn, Virginia

Airbus Training Center

Miami, FloridaAirbus Engineering Center

Wichita, Kansas

Airbus Engineering Center Mobile, Alabama

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Airbus expands in the US with an A320 family Final Assembly Line

2013

Start of construction

2015

Start of aircraft assembly

2016

First delivery

2018

40 to 50 deliveries

November 2015Aerospace & Defense Connecticut

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Procurement Organisation - worldwide coverage

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Sourcing Office

North AmericaSourcing Office

India and

Middle East

Sourcing Office

China and

East Asia

Central &

Operational

Teams

More than 2,700 Procurement employees representing

37 nationalities located worldwide,

looking after more than 8,500 Suppliers (excluding Airbus Military).

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Procurement organisation: specialised and performance-oriented

November 2015Aerospace & Defense Connecticut

Procurement

A350 XWB Procurement Procurement

Cabin

Procurement

Propulsion

Systems

Procurement

Operations

Airbus & Airbus Group Procurement Strategy & Services

Contracting

domain

Operational

domain

Procurement Compliance Management

Governance and

support units

Series Programmes Procurement

CommoditiesProcurement

Aerostructure

Procurement

Equipment/Systems

& Support

HR

Finance

Quality

Procurement

Dedicated Procurement

governance and support functions

Overall responsibility

for business with suppliers (TCO)

End-to-end supply chain operations

management

Specific & Cross-functional/divisional

activities & links

Airbus Group General

Procurement *

Airbus Military

Procurement

Procurement

Material and Parts

* Shared service for the whole Airbus Group

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Multi-Functional Teams (MFT’s) leading sourcing & contracting activities

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Engineering

Procurement Sub-Commodity (Lead)

Manufacturing Customer Services

Manage

Procurement

process for a

dedicated

portfolio

Finance /

Costing

Programs

Supply Chain

Management

Each Commodity is composed of sub-commodities leading Multi Functional Teams (MFT’s) in charge of

managing the Procurement process for dedicated products/services (for example hydraulics, wings…)

52 MFT’s within

Procurement

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Contracting domain - Procurement Marketing

November 2015Aerospace & Defense Connecticut

Define procurement & sub-commodity strategy

Supplier selection & contracting

Supplier monitoring & contract management

Control suppliers

Order and receive productsFrom strategy definition...

...to product support

Through Procurement Marketing activities, we support the procurement process end to end for USA, Canada and Mexico for Airbus Group

US CSO

Events/Networking

Request for an RFI*

RFI sending*RFI completion

and sending

Supplier graded and database

update

Reception confirmation

BU request reception from

GSNRFI sending*

BU request answer

Systematic step

RFI completion and sending

Supplier

Additional step if RFQ is launched

Research for potential suppliers

Need for additional information

Step created in August 2011

RFI assessment and database update

Interesting supplier pre-

selection

Supplier approved for

further investigation

Supplier phone call

Supplier meeting @ Herndon

Supplier Visit/SCORE

assessment

Supplier evaluation

form completed

Supplier database and supplier profile

update

N.A. Procurement - Process

Call for Tender

November 2015Aerospace & Defense Connecticut

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Procurement quality and supplier development domain

Aerospace & Defense Connecticut

Airbus supports its new and existing suppliers by providing “field engineers” on site to help them achieve

qualification, delivery performance improvement, industrial optimisation

and compliance with Airbus’ and external regulations.

PRE-ASSESSMENT of potential new suppliers

QUALIFICATION and re-qualification of suppliers

Product and Quality AUDITS

Industrial PROCESS CONTROL ASSESSMENT (combination of quality and supply chain)

CAPACITY contingency assessment

Supplier QUALITY continuous Improvement (SQIP Programmes)

November 2015November 2015Aerospace & Defense Connecticut

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Operational domain – Supplier Development

Define procurement & sub-commodity strategy

Supplier selection & contracting

Supplier monitoring & contract management

Control suppliers

Order and receive productsFrom strategy definition...

...to product support

November 2015Aerospace & Defense Connecticut

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

General Procurement Domain (AGGP)

November 2015Aerospace & Defense Connecticut

AGGP is one of the Airbus Group shared services which mission is to provide to all Airbus

Group divisions the goods and services of the general procurement scope

The objective is to satisfy the needs of the divisions in terms of delivering on time, on

quality and at the best price, while adding value to the business through the commodity

expertise and know how.

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Contracting domain – General Procurement

November 2015Aerospace & Defense Connecticut

Define procurement & sub-commodity strategy

Supplier selection & contracting

Supplier monitoring & contract management

Control suppliers

Order and receive productsFrom strategy definition...

...to product support

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Globalize & consolidate the supply chain

STIMULATE the competition within the supply base

FEWER and BIGGER suppliers with ENHANCED responsibility

L4L (Local for Local) will remain, key support for a Final Assembly Line

EARLY INVOLVEMENT of major suppliers in joint development teams including R&T

GLOBAL SOURCING* challenges for both Airbus and its suppliers

Develop Suppliers to world class status

PRE-ASSESSMENT of potential new suppliers; sustainable QUALIFICATION of suppliers

Product and process quality AUDITS

INDUSTRIAL PROCESS CONTROL ASSESSMENT (quality and supply chain)

RISK MANAGEMENT culture

*Global sourcing: international sourcing = Non-European countries

Airbus Procurement Drivers

November 2015Aerospace & Defense Connecticut

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

What are we looking for in potential suppliers

Quality accreditations, AS9100, NADCAP, etc.

Already working for an Airbus Group Business Unit or other aerospace OEM’s

Customer recognition, GOLD, 5 STAR, supplier of the year, etc.

Strong in commercial work

Financially stable and ability to invest, management and functional structure (GRESS-

GRAMS)

Strong manufacturing engineering capabilities

Innovative products and companies

Vertical integration

Global presence and core capabilities aligned with current needs (dynamic process

in nature)

November 2015Aerospace & Defense Connecticut

Direct with Airbus as T1 (GRESS-GRAMS)

As a T2 to a T1 (two main paths)

New programs – Approval cycle 6+ months

Tow – Approval cycle approximately 1 year

It is extremely important to understand your Tier… and

Common ways to enter our supply chain - flying parts

GRESS-General Requirements for Equipment and System Suppliers

GRAMS-General Requirements for Aerostructures and Material Suppliers

Not everyone has to be a T1!

November 2015Aerospace & Defense Connecticut

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

Airbus/Supplier joint efforts to meet customer demand

November 2015Aerospace & Defense Connecticut

Make it right the first time

Ensure sufficient capacity

Reach and sustain excellent performance

Be creative and propose solutions for cost optimisation

RAMP-UP

ON-TIME

DELIVERY

QUALITY

COST

02.2015

Airbus Group North America Procurement Contact Information

• Title your email response:

• “Goods & Services RFI response” for all non-

flying goods and services.

• “Flying Parts RFI response” for all products that

will actually be installed or used on an aircraft.

• Return the RFI document and company presentation

via email to:

NAsupplier@airbus.com

• Airbus will review your company’s submittal and will

record it in the North America Database.

• Note: Submitting an RFI does not guarantee inclusion

into any future Request for Quotes.

Airbus North Americas Headquarter: 2550 Wasser Terrace, Suite 9100 ,Herndon, VA 20171 USA

Process to follow:

• You must obtain a Request For Information (RFI)

document by sending an email to:

NAsupplier@airbus.com

• Answer all the questions on the RFI document.

• Prepare your company presentation.

November 2015Aerospace & Defense Connecticut

Useful sources of information

November 2015Aerospace & Defense Connecticut

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

http://www.airbus.com/tools/airbusfor/suppliers/

November 2015Aerospace & Defense Connecticut

Click here

to learn more about the Airbus Procurement

organization and major suppliers.

All sub-commodities for Airbus Commercial are

shown

November 2015Aerospace & Defense Connecticut

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

November 2015Aerospace & Defense Connecticut

© AIRBUS Americas. All rights reserved. Confidential and proprietary document.

November 2015Aerospace & Defense Connecticut

© AIRBUS Americas. All rights reserved. Confidential and proprietary document. This document and all information contained herein is the sole property of AIRBUS Americas. No intellectual property rights are granted by the delivery of this document or the

disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of AIRBUS Americas. This document and its content shall not be used for any purpose other than that for which it is supplied. The

statements made herein do not constitute an offer. They are based on the mentioned assumptions and are expressed in good faith. Where the supporting grounds for these statements are not shown, AIRBUS Americas will be pleased to explain the basis thereof.

AIRBUS, its logo, A300, A310, A318, A319, A320, A321, A330, A340, A350, A380, A400M are registered trademarks.