We make it fly. Digital Transformation in the Airspace industry powered by Internet of Things

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We make it fly. Digital Transformation in the Airspace industry powered by Internet of Things Dr.-Ing. Anes Hodžić Airbus Digital Transformation Office Vice President, Digital Transformation and IoT Berlin, 25th September 2018

We are a leader in designing, manufacturing, and delivering aerospace products, services and solutions to customers on a global scale. Airbus is an international pioneer in the aerospace industry. A commercial aircraft manufacturer with two other Divisions - Defence and Space and Helicopters - Airbus is the largest aeronautics and space company in Europe and a worldwide leader. Airbus has built on its strong European heritage to become truly international with roughly 180 locations and 12,000 direct suppliers globally. The company has aircraft final assembly lines across Asia, Europe and the Americas, and has achieved a more than a sixfold order book increase since 2000. 2

COMMERCIAL AIRCRAFT Airbus is at the forefront of the aviation industry. We build the most innovative commercial aircraft and consistently capture about half of all commercial airliner orders. Thanks to its deep understanding of changing market needs, customer focus and technological innovation, Airbus helps airlines grow and people connect. 3

HELICOPTERS The world s No.1 helicopter manufacturer. We provide the most efficient civil and military helicopter solutions to our customers who serve, protect, save lives and safely carry passengers in highly demanding environments. 4

DEFENCE AND SPACE Airbus is Europe s largest and most innovative defence and space company. We develop and manufacture world-class aerospace products. Our exceptional platforms and services allow our customers to address even their most challenging operational needs. 5 Airbus Corporate Presentation

A growth story Airbus makes a vital and growing contribution to the economies of its home countries and the wider world fuelling prosperity around the globe. 2017 Revenue 59 bn* Order Book Growth +650% 997 bn 12,000 Suppliers from more than100 countries 131.9 bn 2017 Ebit 3.4 bn 2000 2017 * restated for IFRS 15 6

What If?

WE VE BEEN ASKING WHAT IF..?...we can reduce non-conformities in manufacture by half?...we could have access to massive aircraft data?...we shared data with suppliers and customers?...we empower our workers with right information at right time and place?...we can track our production system and all parts in realtime?...we could predict all instances of component failure?...our clients could really experience the product in advance?...we can accelerate the best ideas to an industrial scale?...we can have full transparency of our supply chain over product life time? 8

Cloud & as a service platforms Internet of things (IoT) & ubiquitous connectivity Collaboration & social networks ADVANCED ANALYTICS & BIG DATA Augmented reality & virtual reality Artificial intelligence & collective computing Additive manufacturing Mobility Augmented humans & robotics 9

We are already seeing benefits internally ADAPT QUICKLY TO FACTORY DISRUPTIONS A350 INTELLIGENT ADVISOR FOR INTEGRATED PLANNING 33% FASTER FIX 10

We are already seeing benefits internally INCREASE RELIABILITY BY IMPROVING COMPONENTS COMMON PLATFORMS ROOT CAUSE FOUND IN 2 WEEKS VS 2 YEARS 11

We are already seeing benefits internally ADAPT QUICKLY TO A330 PROGRAMME UX APPROACH TO EMPOWER THE WORKER

We are already seeing benefits internally RELEASING DATA FROM FUNCTIONAL SILOS AND IT SYSTEMS ENSURE END TO END DATA CONTINUITY TO ENSURE FASTER SEARCH

14 In the past, 400 parameters: <2% of available data

15 Digital platform enables capture of 24,000 parameters: 100% of data

16 The next revolution in Aviation From aircraft

17 The next revolution in Aviation to digital aircraft

18 The next revolution in Aviation to connected digital aviation

THE SKYWISE ECOSYSTEM MRO Connectivity Skywise core Suppliers Services for Customers External Internal Other 3 rd parties Other Functions Airlines Customer Support Procurement Zero AOG Plateau Engineering Production

Skywise Open Aerospace Data Platform to turn digital opportunities into tangible benefits PERFORMANCE RELIABILITY PROCESS RISK & ASSET MANAGEMENT SYSTEM INTEGRITY CABIN Fly longer Fly cheaper Fly comfier Fly greener Reduced Operational Interruption Towards Zero AOG Real time optimization per MSN One-click processes Higher productivity Better decisions Risk assessment Asset management End-to-end secure connectivity Scalable and secure platform Access to massive aircraft data Extendable to cabin data Connectivity for cabin and crew New passenger experiences 20

and provide basis for business acceleration 12 months ago we launched the open aviation data platform 4 Early Adopter Airlines 20+ Airbus Internal Applications Today Skywise has connected: 12M+ Flights 25M+ 22 Airlines Signed Maintenance Actions 6000 2500+ Aircraft Active Users 3.5 PB of aviation data 21

What if we can digitally enable the aviation value chain end to end? Suppliers Engineering Production Service & Support Customers 22

A commercial aircraft manufacturer What is IIoT for Airbus? with the two Divisions Defence and The Internet of Things (IoT) describes an ecosystem of sensors, embedded computers, and smart devices that communicate among themselves and with private/public cloud services in order to collect, analyze and present data about the physical world. Space and Helicopters. In Industrial IoT (IIoT) these data provide value-add by integration, automation, and improvement of business processes. We make it fly. Digital Transformation enabled by IoT 23 June 2018 Airbus Commercial Aircraft Presentation

A commercial aircraft manufacturer What are our IIoT working directions? We make it fly. with the two Divisions Defence and Connecting the unconnected Space and Helicopters. Capture, Process, Transmit, Analyze devices environmental data Digital Transformation Merging of physical and virtual worlds to improve business processes enabled by IIoT From Connected machines to Digital Twins Linking islands of automation along the value chain Capture, Process, Transmit Environmental data

A commercial aircraft manufacturer What benefits do we expect from IIoT? We make it fly. with the two Divisions Defence and Space and Helicopters. Enabling benefits along the Aerospace supply chain 25 June 2018 Airbus Commercial Aircraft Presentation

What are our IIoT learnings so far? We make it fly. FOCUS ON SOLVING REAL PROBLEMS THINK BIG, START SMALL, AND SCALE FAST LOOK FOR THE SOLUTIONS WHERE YOU CAN ITERATE AND DON T GET LOCKED-IN, SINCE A LOT OF IS GOING TO CHANGE IN NEXT 3 YEARS MAKE DATA SECURITY AS THE TOP PRIORITY Lessons learned along our IIoT journey INTEGRATE TECHNOLOGY SOLUTION WITH BUSINESS PROCESSES AND ARCHITECTURE BUILD AN ECOSYSTEM OF PARTNERS AND LEARN / CO-DEVELOP WITH THEM 26 ADDRESSING THE FULL POTENTIAL OF IIoT (SOLUTION SCALING) REQUIRES PROCESS CHANGES AND UPSKILLING OF YOUR EMPLOYEES PREPARE FOR THE MARATHON AND NOT FOR THE SPRINT