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Name of the presentation 1

In search of excellence;

How to grow in a cash consuming world

SECURITY 2

1. Aircrafting signed by Fokker

2. Typical Business Models. How to compete in a capital

intensive, global game

3. The journey of Fokker Aerostructures

4. Conclusions

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Fokker Technologies Super specialist based on rich heritage of aircraft manufacturing

1911 1996

…delivered

leading innovation

that shaped the

aerospace

industry…

…manufactured

high quality

aircraft that

stood the test of

time…

…with over 500

aircraft still in

operation today

#2 in wiring systems #1 in tails for business jets #1 in out of production support

2013 Fokker is involved in 75 Aircraft platforms resulting in Fokker’s

signature on over 14,000 aircraft today

Anthony Fokker Aviation Pioneer

1890 - 1939

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Revenue Mix

2011

2015

Balanced Portfolio Fokker has a semi captive program portfolio across 75 aircraft platforms

from design through life time support

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Balanced Portfolio Across Program Lifecycles

Dassault SMS

Trent XWB

C-series

A350 XWB

A400M

A320NEO

G650 P-8A

JSF

A380

NH90

Dassault 7X

Hawker P&WC

Cessna

CJ3 / CJ4

ARJ21 C919

Apache

Cessna

Sovereign

B777

B737

A320

G550

Dash8-400

CRJ

Patriot

Chinook

F-16

C-17

Fokker

A300/A310 C919

NH90

B737

Dash8-100/200/300

CRJ 100/200

Fokker

F-16

2011 c. €28m

4.1% of

total revenues

2011 c. €253m

37.0% of

total revenues

2011 c. €208m

30.4% of

total revenues

2011 c. €195m

28.5% of

total revenues

Design-build Redesign - modifications Sustainment

Aircraft platforms in Fokker

portfolio in build life cycle

Aircraft platforms in Fokker

portfolio in support life cycle

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Typical lifecycles, Different cash models operated Typical lifecycles in Aerospace are over 30 years and take serious upfront investments, Fokker is

therefore changing its business models

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Traditional model Asset light model Services model

Key aspects

• Traditional design-build models

requires supplier to invest in design

phase

• Risk of delay in development

phase is with the supplier

• 25 to 40 year program involvement

Key aspects

• Asset light model, based on

customer financing and

prepayment of design phase

• Risk of delay in development

phase is with the customer

• Investments focus at working

capital build up at start of low rate

production and assembly (similar

to build to print)

Key aspects

• Current profile for out of production

Fokker fleet

• …moving to other out of production

aircraft will require stock

investment, offset by recurring

turnover

• Gaining foothold in the installed

base pre-empts revenue build up

full service suit

Dassault 7X

B747-8

A350, CSeries, Dassault

SMS, NH90

A320, B737/B777, JSF

Apache

Dash 8 Q100/200/300

Fo70

/Fo100

Fo50

F27 /

F28

Note: Typical cumulative cash model. Cash development for the Airbus A350 and Dassault SMS is based on milestone payments for

non-recurring cost made instead of traditional amortisation of non-recurring investments

Gulfstream G650

Fokker positions: • A380, Gulfstream G650, Dassault 7X

Fokker positions: • Airbus A350, Boeing 747-8, Bombardier

C-series, Dassault SMS

• Boeing 737 and 777, Airbus A320,

Cessna business jets

• JSF (after delay versus latest Lockheed

schedule), Apache

Fokker positions: • Fokker F27, F28

• Fokker 50, 70, and 100

• Bombardier Dash 8 ‘classic’

A380

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Fokker Aerostructures

• # 1 Dutch defense company

• key defence customers (Boeing, Lockheed

Martin,Raytheon)

• global production footprint

• operation excellence in design&development,

composite manufacturing and complex assembly

Markets Position

Defense (US/EU/SP/LG)

Large Commercial Aircraft

Business jets

• recognized position in design-build, composites

and assembly

• product position concentrated on wing and

empennage assemblies.

• Global Supply Chain (bridge supplier model)

developer

• leading company for design and manufacturing

of major integrated structures (tail sections and

wing components)

SECURITY 7

The evolution of Fokker Aerostructures

Building a transparant

and rock solid

organisation

steered by kpi’s,

strong drumbeats

and multi-disciplinary

teams

1996 – 2006: Building

a strong and solid

portfolio

2006 – 2012: Restructure

becoming a growing and

profitable organization

2013 – 2014: Building a

sustainable and

improving organisation

2014 - …. Becoming

World Class

Building a strong

Customer Base

and being back

In business

Turnover: 0 – 200 mio

Turnover: 200 – 300 mio

Profitable and positive

cashflow

Turnover: 300 – 400 mio

Significant EBIT and

positive cashflow growth

Turnover: 400 mio ……

Increase

Maturity Levels

of Sustainable

key processes

and enablers

Being a

high performer

and a high

adaptor

Integrated innovative solutions From production house to

global supply chain

Integral Change approach

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Right to win: Integration of smart solutions It’s not about the smartest innovations…… it’s about the smartest global integration.

Proprietary technologies

World class performance

Configuration management

Type Certificate Holdership

Process innovation

Airworthiness

DOA / POA

Human Capital

Stress engineering

Availability

Airline & aircraft economics

Reliability

3D Design

Knowledge based engineering

Handbooks

24/7

Flight testing

Global reach

Systems, Design & Development

Technical manuals

Aircraft economics

Customer intimacy

Remarketing

R&D

Fokker Academy

Technical training

Quality control

First time right

Paperless

Compliancy

Data analysis

Program management

Low cost supply chain

Experience

SECURITY 9

To become a global player…… A clear Make-Buy decission tree is key

Process &

Technology

Contributes to

USP?

Best in Class?

Profitable?

YES

NO

No more investments / future outsourcing

Y

N

Preserve the current state

Operational improvements

Outsourcing

Key technology

Y

N

Develop technology in house

Investments

Alliances with strategic partners

YES

NO

YES

NO

SECURITY 10

The Global Game An integrated global approach is key in aerospace

Fokker Aerostructures Global Footprint Architecture

• US$ supply chain • US Defense access (buy American)

Integrated business model

Nth

America

North

America

Nth

America

Europa

Nth

America

China • Central management and HQ • Engineering and technology development • Innovative automated production processes • Dutch defense offset

• Strategic low cost sourcing • Self-propelled (sub-) assembly facility • Defense and commercial offset

Nth

America India

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Execution Excellence

`Our strategic Roadmap drives our improvements, enabled by

an integral change approach leading to firm results`

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Key Area KPI 2007 2011 Finacial Impact

Productivi ty 65% 86% 4 Mio euro Ebit per Year

Effciciency 82% 98% 3 Mio ebit per year

Qual i ty (NC level ) 20 12 5 Mio euro Ebit per Year

Spend reduction 0 16 16 Mio euro Cost reduction

Dol lar Content 22% 46% 40 Mio risk additonal dol lar spend

CLIP On time del ivary 30% 78%

Stockturn 3,7 6 30 Mio working Capti ta l reduction

Overhead (GA level ) 5% 3,50% 4,5 Mio ebit per Year

Operations

Supply Chain

General

Mission Vision Value Drivers

KPI´s Execution

• Throughputtime reduction

• Variation Control

• Yield management

• Machining changed the world

• World Class Composites

• Sheetmetal LEF

• Shakespear Spend reduction

• RLIP CLIP

• Darwin 90 days

• US Sourcing

• Working Capital Program

• Driving Quality

• Global Operations

Integral Changes

SCM Tools

Lean – Six Sigma

CAP Change

Approach

>> Yearly Cost reduction

>> Yearly Cash reduction

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2013

Simplify & Re-tune for next maturity step

180% 88% 31 44,1 6,6 55%

2012

Play Global, Act local: Fokker production

system & Global Sc approach

185% 86% 29 39,5 6,0 50%

2011 Key enablers development: Human Capital,

Technology and Logistic control 160% 87% 29 23,7 5,0 45%

2010 Chain optimization integral Driving quality, Xmatrix MA, fact and maturity scan

driven improvement selection (top and bottom) 132% 87% 25 13,3 4,5 38%

2009 Chain optimization; the basics Designed improvement strategy , Working Capital

reduction program (integral change), shakespear 124% 86% 24 5,0 4,0 34%

2008 Peformance driven and multi disciplinairy

teams dedicated to primairy processes,

6 S 120% 82% 14,5 - 3,8 24%

2007 Leadership(teams), Demand and

Performance Basics in place:ERP system in

place, Basic KPI’s, Drumbeats

105% 78% 3,5 - 3,9 22%

2006 Weeding & Set the Direction: From

production house to Supply Chain Manager 100% 63% - - 3,7 20%

TO (ME)l Prod. EBIT red W.C. red Stockturn % dollar

Design is generating results

- Design (add on concept) in depth 2006 – 2013 -

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Conclusions

• Fokker has made a clear choice to become a specialist,

integrating world class solutions

• Fokker competes in a global market with complex business

models, this drives crucial make buy decissions

• There are 3 main pillars under the Aerostructures Journey: – An integral Change approach, from strategy through value drivers to change

accelleration, measured by clear KPI’s

– From production house to global solution provider

– Smart integrated innovations.

• It is possible to be a Dutch aerospace company with a

sustainable position; Fokker Aerostructures is half way on

this challenging journey

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