A350XWB Programme Status North America Investor Forum 2010 New York, 18 th March 2010 Fabrice Brégier COO, Airbus
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.
Contents 3 Customers Aircraft Family - Performance New Technology Industrial Progress and Ramp-Up Extended Enterprise Programme Management Conclusion
Contents 4 Customers Aircraft Family - Performance New Technology Industrial Progress and Ramp-Up Extended Enterprise Programme Management Conclusion
A350 XWB - 530 orders from 33 customers 5 25 Countries 3 Alliances 5 Leasing companies Synergy Aerospace
Contents 6 Customers Aircraft Family - Performance New Technology Industrial Progress and Ramp-Up Extended Enterprise Programme Management Conclusion
A350 XWB a complete long-range family 7 Airbus A350-1000 Boeing 777-300ER 369 seats 360 seats 777-200ER A350-900 292 seats 315 seats 787-9 A350-800 280 seats 276 seats One new Family of technically advanced aircraft 787-8 246 seats Two aircraft types One generation apart A step ahead of the 787, a generation beyond the 777
Performance A350 vs 777: 25% lower fuel burnt 8 Block Fuel per seat -25% 777 Engines CFRP Airframe Total -25% 787 A350 XWB -25% Aerodynamics COC per seat
Status in 2010 9 Airbus A350-1000 369 seats In concept phase Freeze in 2011 Entry Into Service 2015 A350-900 315 seats End of detailed design Entry Into Service 2013 A350-800 276 seats Start of detailed definition phase Entry Into service 2014
Contents 10 Customers Aircraft Family - Performance New Technology Industrial Progress and Ramp-Up Extended Enterprise Programme Management Conclusion
Competitive Product 11 Cabin Advanced Systems XTRA Efficient Engines Composite Structure & Adaptive Aerodynamics 53%
A350XWB Technology Technology readiness using demonstrators 12
A350XWB Technology Examples of technology challenges 13 But technology challenges faced in 2009 Redesign of fuselage stringer damage tolerance Detailed re-modelling of fuselage-root joint New requirements for integration of systems (lightning strike for CFRP, ground fluctuation) Weight convergence on wing sizing
Engines - Rolls Royce Trent XWB on track 14 Trent 700 Fan Case Trent XWB Fan Case after assembly (f:118 ) First Engine on Test Rig mid 2010 and on Flying Test Bench (A380) in 2011
Contents 15 Customers Aircraft Family - Performance New Technology Industrial Progress and Ramp-Up Extended Enterprise Programme Management Conclusion
Final Assembly Line 16 Solar panels, Hangar Hangar, Toulouse S50 S40 Toulouse Final Assembly Line S30 Hangar construction in progress FAL assembly jigs ordered Streamlined concept
Composite Units 17 Autoclave Getafe, Spain Autoclave, Getafe Autoclave, Stade First Composite Layup, Nantes Composite Plant, Illiescas Assembly Building Illescas ATL, Stade Composite Manufacturing, Stade
Systems design & testing - Global testing pyramid for maturity at Entry Into Service 18 Design Component demonstrators Integration testing Iron-bird testing Flight test More demonstrators and integration tests Methods & tools validation Develop manufacturing processes Maturity at entry into service Sub-assembly demonstrators Full-scale airframe testing
Physical Mock-Up (PMU) Integration Trials 19 The Center Module Center Module installed Center Module Installation Tolerance Measurement New modularization concept to secure Pre-FAL and FAL operations
Center Wing Box Panels MSN001 manufacturing 20 Panel Lay up Stringer Panel Dismolded Finished Panel
Center Wing Box cruciform MSN001 forging machining 21 Cruciform Extrado Milling Cruciform Extrado Milling Vertical Cruciform milling Vertical Cruciform
A new approach to customisation - coming to reality 22 Why? Deliver steep ramp-up A380 / LR Lessons learnt HoV Cost Management Adaptability to various markets at short notice ADD ACS How? Enriched standard aircraft platform, adequately provisioned to ease inter-operability (adaptation to different market needs) New sourcing approach to secure the aircraft service readiness Customisation where it matters: Specific operational requirements Product branding and differentiation Catalogue offering of pre-developed modular cabin commodities Ease cabin reconfigurations / retrofits Enabling Platform for stronger residual values Industrialized Cabin Offering for a managed ramp-up
Customer Experience: Lavatory Customisation Example 23 SFE (Supplier Furnished Equipment) ACS (Airbus Contracted Supplier) Lavatories Modular Customisation with almost limitless combinations, perfectly fitting the A350XWB enabling platform
Contents 24 Customers Aircraft Family - Performance New Technology Industrial Progress and Ramp-Up Extended Enterprise Programme Management Conclusion
Extended Enterprise Make or Buy distribution 25 Make Center Wing Box Wing Covers Section 18 Majority of Section 19 Pylons and Air inlets Systems integration Buy Sections 11, 13 and 15 Movables Nacelle Electrical harnesses Landing Gears VTP and HTP Risk mitigation by a balanced distribution of the make (50%) and buy (50%) manufacturing Critical Components are kept within Airbus
Welcome on board to our A350 XWB Extended Enterprise Partners! 26 (1) New system policy: less but bigger WP Number of suppliers reduced by 40% (2) (1) SPIRIT UK & SPIRIT US (2) EADS EFW (Cabin + Aerostructure) COMPOSITE INDUSTRIE S.A. All A350XWB major partners committed to Extended Enterprise collaborative model
A350 Extended Enterprise policy 27 Through the A350 Extended Enterprise : We work together co-located on development plateau We use the same tools We use the same methods & processes We exchange Electronic Data We run a Change Process We develop a reinforced collaborative mindset A real concurrent design, that includes Risk Sharing Partners
Contents 28 Customers Aircraft Family - Performance New Technology Industrial Progress and Ramp-Up Extended Enterprise Programme Management Conclusion
New way of Working One single 3D Digital Mock-Up 29 Airbus Supplier Structures Engineering DMU-VPM Database Engineering Integration Engineering Engineering Electrical Engineering Manufacturing Engineering o Thanks to the DMU-VPM database, designers can easily access the full A350 Digital Mock-Up, allowing : Real-time, concurrent design for manufacture For both Airbus and Extended Enterprise DMU Digital Mock-Up
A350 XWB DMU (Digital Mock Up) as a Master 30 Unique referential for A350 XWB definition
Unified Planning Setting new pragmatic Programme Management Standards 31 Unified Planning is a major change step in Managing Aircraft Development s compared to previous Airbus programs. In line with Program Management Standards (PMI, DoD), built on Benchmarks and Return on Experiences Key Drivers: Transparency & visibility Coverage of all the contributors involved into A350 XWB, including external partners Single and harmonized way of working Same tool for all contributors securing one single set of data Establish Best in Class Programme Management to secure A350XWB On Time Entry Into Service and Deliveries
A350 XWB Programme development 32 2007 2008 2009 2010 2011 2012 2013 2014 2015 Design Freeze Detailed Definition Freeze Today A strong orders portfolio Family concept secured Technology demonstrated Industrial set-up on track Final assembly start MSN001 manufacturing has started First flight Suppliers on-board A350XWB Extended Enterprise Model Harmonized Planning and Product Lifecycle Management Tools New Programme management Focus on early maturity and risks mitigation EIS -900 EIS -800 EIS -1000 A350-900 on track for an Entry Into Service in Mid 2013
Contents 33 Customers Aircraft Family - Performance New Technology Industrial Progress and Ramp-Up Extended Enterprise Programme Management Conclusion
Conclusion 34 In 2010 the A350XWB is moving into the manufacturing phase Great achievements in all domains We have learned a lot and we have put in place the right enablers, but still major programme challenges ahead Production phase started