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BEYOND MAINSTREAM

MAY 2015

TAILWIND FOR THE AEROSPACE INDUSTRYA&D Management Issues Radar 2015

THE BIG 3

THINK ACTA&D MANAGEMENT ISSUES RADAR

2 ROLAND BERGER STRATEGY CONSULTANTS

3

2

1

Topic of the year

p. 4

73%of all industry leaders are very optimistic about the civil aerospace market. They expect further growth for at least five more years. p. 6

67%of our external experts optimistically expect an end to declining defense equipment budgets in Europe. Current geopolitical threats contribute to this judgment. p. 9

74% of the industry leaders questioned expect HR management to become even more important in the next decade. However, half of the companies have not started developing HR competencies on a broad scale. p. 12

ROLAND BERGER STRATEGY CONSULTANTS 3


Entering full-scale production. At present, manufacturing and supply chain management are the top opera-tional topics on companies' agendas in the aerospace & defense industry.

In defense, governmental budget cuts have caused the industry to focus on strategic topics: product strategy and the development of new markets. Even though we do not expect military spending to rise significantly, there are indications that Western governments, in the light of prevailing geopolitical conflicts, are inclined at least to stop cutting budgets. HR management se-cures a special role in this picture. We observe that, given the short-term focus of the defense industry on ensuring ramp- up of deliveries or winning highly com-petitive campaigns, a long-term approach to strategic HR management often takes the back seat. However, this will be a crucial success factor in the future.

There are buoyant market conditions in the civil aero-space sector, but government spending on defense in Europe has declined. Against this economic back-ground, the evolution of management priorities re-flects the changing focus as major aircraft programs (A350, B787, A400M…) have reached the end of their development and are entering into full-scale production. After years of focusing on program man-agement and global market development, OEMs and suppliers alike are concentrating on reaching higher production output, and we expect this to remain their main concern in the near future. A

Looking back at our regular annual survey, 2009 was a decisive year, with direct implications for 2015. Six years ago, public discussions about technical prob-lems with the Airbus A380 faded, whilst the develop-ment of the A400M and the A350XWB were proceeding at full speed; these programs have had a direct influ-ence on the whole aerospace industry, which has been focused on the completion of these major development programs, and ensuring cost effective production.

Since 2012, manufacturing and supply chain man-agement (flexibility, efficiency, ramp-up readiness) have been the most important topics. Marketing & sales is only a limited issue for the civil aerospace in-dustry, as the order backlog has grown rapidly over the last five years, reaching the amazing value of eight years of production for the short-range segment.

This "A&D Management Issues Radar" is the 7th edition of our annual survey, since we first launched it in 2008 to support executive-level thinking across the Aerospace & De-fense industry. The survey was conducted during winter 2014/2015, involving more than 150 senior industry executives worldwide in global companies from A (e.g., Airbus) to Z (e.g., Zodiac Aerospace), representing a broad range of civil and military segments and positions in the value chain, from OEMs – a third of the respondents – to Tier-1, Tier-2, and pure service providers. This year's survey has captured prevailing trends on the overall market perspectives and HR management.

For the 2014-2015 release, the main questions asked to A&D top managers were the following:

MARKET DYNAMICS> How long do you think that the current buoyant market conditions in the civil aerospace

sector will continue? What events are most likely to affect the current growth trend?> Do you think that the decline in government spending on defense in Europe has reached

an end? What actions are you planning to take to mitigate against any further downturn in defense spending?

HR MANAGEMENT > What are the industry challenges that most impact HR strategy and HR capabilities?

What are the most important HR levers that will contribute to your company's strategy?


ROLAND BERGER STRATEGY CONSULTANTS4

THE SURVEY'S SCOPETRENDS ON MARKET PERSPECTIVES AND HR


5

Source: Roland Berger "A&D Management Issues Radar 2015" survey

169 responses

#1

#2

#3

#4

ROLAND BERGER STRATEGY CONSULTANTS

TOP PRIORITY IN YOUR COMPANY'S AGENDA? [FOUR MOST FREQUENT ANSWERS]

MANUFACTURING IS KINGA

2000 2010 2011 2012 2013 2014/15

Program Management

Market Strategy/

Globalization

Program Management

Program Management Manufacturing Manufacturing

Market Strategy/

Globalization

Market Strategy/

Globalization

Market Strategy/

Globalization

Supply Chain

Management

Supply Chain

ManagementManufacturing

Market Strategy/

Globalization

Product Strategy

R&D Efficiency

Product Strategy

Product StrategyFlexibility

Program Management

Supply Chain

Management

Supply Chain

Management

Supply Chain

Management

New market/ new segment

entry

Marketing & Sales



6

Russia/Ukraine, as well as by an economic downturn in China (25%) or an increasing economic crisis in Eu-rope (20%). However, Roland Berger experts argue that these answers have to be put in perspective, as some of these factors may receive undue attention due to the extensive coverage in the media. C

First, the OEMs' customer portfolio is so diversified in terms of geographies that any event affecting one part of the world might have a limited impact else-where. Indeed, Europe may be in a crisis, but there is commercial growth anyway, and the bulk of A&D de-mand is not in Europe. The possible exception is an eventual downturn in China, which is seen as a risk factor because of the significance of Chinese carriers in both the Airbus and Boeing order books. There is nevertheless hope around the corner: Asia in general is expected to be (by far) the fastest growing market for new aircraft deliveries.

Additional investments in new production capacity

Investment planning for additional capacity is rather con-servative: two thirds of the industry leaders plan further investments but seem to be cautious not to build up ex-cess capacity. The main reason seems to be that the in-dustry has already done the bulk of the investments re-

It is a striking but not surprisingly strong majority: 73% of the experts questioned expect further production growth in the commercial aerospace sector for at least five more years. On the other hand, the fact that they are careful about building up further capacity might be a sign that they remain cautious about the future and do not want to add capacity near to the peak of the cycle. B

27% of the executives predict the end of the cur-rent cycle in the next three to five years. Another 35% say the cycle still has some time to run. In fact, there is not a single market study predicting a sharp downturn. The high volume of order backlogs for both Airbus and Boeing supports these expectations.

This optimism is also backed by recent experience (e.g., the 2009 financial crisis), which had a negative ef-fect on order income, but not on production or delivery.

On the industrial landscape side, Roland Berger ex-perts expect a stable market duopoly for the next de-cade between Boeing and Airbus. Competition from COMAC, Bombardier, Sukhoi or Embraer will grow but should not cause a serious threat in the large commer-cial aircraft sector, as it will take time for those suppli-ers to reach the level of aircraft availability and sup-port expected by first-tier international airlines.26% of the industry leaders think that the current growth trend is most likely to be affected by geo-polit-ical crises and conflicts like IS in the Middle East or

Civil market: Bullish on growth. The commercial aerospace market remains fairly optimistic. Even though managers are expecting years of growth rather than bad news, they are cautious about increasing capacity.

1



B

EXPECTATIONS OF MARKET CONDITIONS IN THE CIVIL A&D SECTOR[% of answers]

D

WILLINGNESS TO MAKE ADDITIONAL INVEST-MENTS IN NEW PRODUCTION CAPACITY[% of answers]

E

TRANSFERRED OPERATIONS ON LOW-LABOR-COST REGIONS[% of answers]

Gradual rate rises will be well managed by the OEMs in response to future changes in demand as the industry continues on a long- term supercycle

Making major investments in new productioncapacity to support further ramp-ups in production

More than 25% of our global operations

Willing to make some investments in expanding production capacity, but careful about addingtoo much additional capacity

10-25% of our global operations

Allowing minor investments to remove bottlenecks in existing

capacity, but not investing in new

capacity

Less than 10% of our global operations

The present cycle has some way to run (10-20% or more increase in volume terms), after which there

will be a downturn in >5 years' time

No, we have already made

sufficient investments

to support growth (further 20% or more)

Yes (no details)

We are near the top of the cycle (within 10%

in volume terms) and a downturn will come in

the next 3-5 years

No, we are not willing to authorize any

additional investments in expanding capacity

No

C

EVENTS MOST LIKELY TO AFFECT THE CYCLES OF GROWTH [% appearance of top 3 answers]

Geopolitical crisis, e.g., in the Middle East

Economic downturn in China

Deeper/lingering economic crisis

in Europe

More stringent macro-economy

policy in US limiting access to credit

Other

Health crisis

Rising energy/fuel cost

265

RISK FACTORS

7

8

9

2520

27

FURTHER GROWTH

73%

38

35

11 15

21

4310

30

7

9

24

30

NO 30%YES 70%

NO 32%YES 68%




ibility and long response times from the supply chain, low quality of components manufactured, and eroding labor cost advantages. Two or three years ago, the in-dustry had to ramp up in China and India, but neither of these countries are now considered as an ultra-low- cost country. The relative loss of importance of India is surprising in this context, looking at the recent govern-mental change and new industrial policies favoring for-eign direct investment in manufacturing, especially for the A&D sector. In general, the main relocation in low-cost countries came with the change in make-or-buy policies early which occurred in the 2000s. Of course, there has been noticeable exceptions, like Bombardier which has opened a USD-200-million manufacturing facility in Morocco. In the meantime, the majority of industrial capacity is situated in the US and Europe.

Nevertheless, transfer of operations outside of home countries is still on the companies' agenda, albe-it with shifting focus towards South-East Asia, Middle East, and Latin America, where the industry plans to expand its global sourcing. Malaysia, for example, has created major composite capabilities. F

quired for new programs and that the need is focused on removing production and supply chain bottlenecks. D

Boeing aims to increase its production of B737MAX by ~20% – from 42 to 52 per month in 2018. Airbus is going to double their A320neo production at its two plants in Tianjing and Mobile, to eight per month instead of four. Bombardier is ramping up production of its CSeries, which is expected to enter into service mid 2015.

In addition to the investments for the ramp-up of the A350XWB and the 787 and the increasing produc-tion rate for the single aisles A320neo and B737MAX, the Embraer Legacy 450/500 and the Embraer E-Jet 190 have been launched within the last two years. The main challenge will be the ability of a very stretched supply chain to cope with such growth.

Globalization efforts in low-cost regions

Regarding the globalization of operations, 70% of the industry leaders questioned stated that their company has transferred operations to low-labor-cost regions but that this relocation remains limited (<25%). E

The main reasons executives mention for this rela-tively low proportion are insufficient skills, lack of flex-

F

EVOLUTION OF REGIONAL FOCUS FOR TRANSFER OF OPERATIONS [% appearance of top 3 answers]

South-East Asia +7

Turkey/Middle East +3

Latin America +2

North Africa +0.2

Eastern Europe-0.1

US/North America-1

China-7

India-4



9

members signed a (nonbinding) pledge at their summit in Wales to lift their military spending to 2% of each country's gross domestic product over the next ten years. French President Francois Hollande stopped a planned reduction of troop numbers, and even the Ger-man government clearly changed direction: Defense Minister Ursula von der Leyen put forth plans not to cut her budget any longer, and Finance Minister Wolfgang Schäuble hinted at higher defense spending from 2017 to respond to a world that's become "more unstable."

Roland Berger expects that there will be few new programs, as most defense equipment are recent, but defense orders now look more secure.

New attractive export markets

In the respondents' view, the US and South-East Asia are large defense markets, but the Middle East still remains the most attractive market; indeed Saudi Arabia has recently surpassed India as the biggest importer of defense equipment. This explains why 13% of the respondents see India as the main export market, whilst 25% view the Middle East as the best prospect. H

The reasons for the assessment of India may be found in past campaign experiences – with rather lengthy, complex, and unreliable decisions and negotiations. The "Rafale deal" is one such example.

64% of the industry leaders questioned expect an in-crease in the number of geopolitical threats facing West-ern Europe in the medium-term future. 32% expect the situation to remain unchanged, i.e., as threatening as it is. This assessment is primarily driven by current con-flicts between Ukraine and Russia, but also by tensions in the Middle East, where numerous major armies of the world are engaged in one way or another. Last but not least, threats like IS can no longer be ignored. From a purely economic perspective, the comparison between the past five years and the coming five years doesn't look quite as bleak for the industry. It could be the right time to invest. 67% of the executives in our survey ex-pect an end of the decline in government spending on defense equipment, if not rising budgets. G

Russia has already declared it will increase military spending by 30% year-on-year to reach a post-Soviet Union high of USD 62 bn. European NATO members have agreed to increase the percentage of GDP spent on military purposes, although reaching the target val-ue of 2% is still far down the road. In recent years, only very few countries have reached this level (e.g., Ger-many spend corresponding to 1.3%), and the UK, which currently meets the 2% target, looks set to drift below this level in the next two to three years. For ten years or longer, the US has called on its European al-lies to come to terms with their commitment and stop curtailing their budgets. In September 2014, NATO

Defense market: time to invest? Top managers expect more geopolitical threats to continue to emerge. This may bring an end to defensive behavior in the defense segment.

2



G

END OF DECLINE IN GOVERNMENT SPENDING ON DEFENSE EQUIPMENT IN EUROPE[% of answers]

I

CONSOLIDATION/INDUSTRIAL COOPERATION IN EUROPE (NEXT 3-5 YEARS) [% appearance of answers]

J

ACTIONS TAKEN TO MITIGATE DOWNTURN IN DEFENSE SPENDING[% appearance of answers]

Yes, I expect defense spending to return to growth in the next 1-2 years

Yes, I expect defense spending to remain flat or grow in the mid-term

Unmanned vehicles

Implementing cost-cutting measures/restructuring

Refocusing scope of activities (e.g., portfolio review, abandon activities or markets)

Information systems and services/

C4ISTAR

Increasing exports

No, I expect additional cuts to

defense spending for the next 1-2 years

Combat aircraft

Diversifying into commercial

sectors

No, I expect additional cuts to defense

spending for >2 years

Transport armament

Diversifying into higher growth segments of the defense market

H

MOST ATTRACTIVE EXPORT MARKETS FOR DEFENSE EQUIPMENT [% appearance of top 3 answers]

Turkey/ Middle East

US/North America

South-East Asia

Eastern Europe

Western Europe

Latin America

India

257

10

13

13

15

14

16 15

52

9 23

10

13

13

7

2619

2523

17 No 33%Yes 67%

3

North Africa

PRESSING ISSUES IN

THE MIDDLE EAST

12

12

8

Land equipment/ armament

Helicopters

Complex weapons and missiles

Surface ships and submarines

MULTIPLE APPROACHES

POOLING AND

SHARING?




all in Europe, it will be in this segment; rather than a multinational joint program, bilateral relationships (e.g., UK-France/BAE-Dassault) may continue. I

The recent decision by United Technologies to spin off Sikorsky may trigger further consolidation in the he-licopters segment. However, given the already relative-ly concentrated nature of the industry, further consoli-dation may be hard to achieve without attracting the interests of the anti-trust authorities.

As always, consolidation is considered a hot topic in the defense industry, most of all in Europe, where the "pooling and sharing" discussion has become more urgent in times of decreasing budgets. Without new programs, the industry will have to consolidate like any other industry, regardless of their govern-ments' attitude (which, for example, stopped the pro-posed merger between BAE and EADS in 2012).

Under pressure from budget restraints, the indus-try executives mentioned cost-cutting, portfolio streamlining, and increased efforts to gain export busi-ness as their main managerial answers. Some compa-nies see diversification as a possible answer to ad-dress this issue. Although cost-cutting, exports and, to a lesser extent, diversification have always been high on the agenda, portfolio management is good news as it could bring fresh impetus to the industry. J

Diversification especially in the commercial sector (transportation & automotive, managed services, composites, electronics, cyber security) should be ap-proached with caution, since market dynamics and key success factors can be extremely different from those inherent to traditional defense business, like self-fund-ing vs. government funding, as well as reactivity and availability requirements.

Finally, strengthening military exports is not new, but few have successfully implemented it. Several hur-dles beyond mere export restrictions lie down the road: limited accessibility, third-party interferences (e.g., flight management systems FMS or US regulation of export and import of defense-related products, ITAR), local policies aiming at protecting local industry and building home-grown capabilities, offsets, procure-ment policies and processes, tender practices.

In 2012, French Dassault Aviation won a bid to supply 126 Rafale multirole combat aircraft to India. However, a first contract was only concluded in April 2015. On the positive side, Indian governmental policies and procurement systems are slowly changing, allowing foreign companies to invest in India and thus poten-tially gain access to more defense contracts.

Nevertheless, countries in the Middle East – due to ongoing political, territorial, and ideological tensions – spend a very high portion of their GDP on the military, creating a substantial market, despite their smaller economies. The recent contracts signed by the French government with Lebanon (EUR 3 bn) and Egypt (EUR 5 bn) demonstrate this trend. Ubiquitous tensions fuel further contracts in the field of border security. Presumably, this will go on and further invigo-rate OEMs with strong government support such as BAE, Dassault, Thales, and MBDA.

In turn, breaches of human rights in the Middle East region may lead to more and more public resis-tance regarding the political approval of defense ex-ports, especially in Germany. In addition, the recent turmoil around the deal for Mistral ships, which has been postponed as a result of the conflict in Ukraine, raises the question whether all industrial opportunities can be captured by European companies.

Consolidation and cooperation expected

Looking into the future of the defense industry, un-manned aircraft vehicles (UAVs) and, in general, un-manned systems (i.e., land or naval equipment) re-ceived a high ranking in our survey. UAVs are seen as the main product drivers for future consolidations and partnerships in Europe within the next three to five years. Simultaneous increase in demand for UAVs along with a decrease in military expenditures leads to shar-ing R&D and project costs. Indeed, industry coopera-tion is happening in this segment, and several projects are in their concept phases, which could involve several European players (e.g., BAE, Saab, Dassault, Airbus DS, Finmecanicca). If there is a major joint program at



12

a need for stronger coordination between HR and business departments to interlink business and HR strategy ("business alignment") can be observed. In particular core functions like recruitment, personnel development, performance measurement, and com-pensation must be aligned with business goals. K

The growing importance of HR management for the next decade is acknowledged by 74% of the industry leaders questioned.

In fact, the industry requires highly skilled technical specialists, e.g., licensed aircraft maintenance techni-cians, whose availability is limited in nature. The demo-graphic development, the aging workforce with too few young engineers, aggravates this problem.

Mainly concerned with classic industrial relations

Overall, companies appear to be taking a rather cau-tious and conservative attitude to developing their HR management. The assessment of HR performance by domains shows that companies are mainly concerned with classic social and industrial relations, with em-ployee engagement and culture management. Roland Berger experts think that in the very near future other strategic issues become more important, referring mainly to career and competence management, as well as state-of-the-art compensation and incentive

The aerospace industry is undergoing major shifts "from development focus to industrialization focus" or "from home market focus to global presence or towards a digital world", which requires a structurally different and culturally more diversified workforce, e.g., fewer development engineers and more manu-facturing personnel, as well as more local staff in emerging markets. Taking this into account, along with an aging workforce, HR has become the key en-abler for ensuring sustainable success in the future. Yet, with the short-term focus of the industry on en-suring ramp-up of deliveries or winning highly com-petitive campaigns, a strategic and long-term ap-proach to HR management often takes the back seat.

This is underlined by the self-assessment of sur-veyed managers which is extremely revealing. Only 17% are confident that HR is a differentiating factor for their company. 71% of the executives say their compa-ny has a solid basis and a few initiatives to support strategic moves, but with significant room for enhance-ment of their HR management, which has only been partially initiated. This doesn't come as a surprise if we look at the industry's key priorities within the last de-cade. 11% say there is no strategic approach in HR, and a significant minority fears that HR jeopardizes the short-term performance. Whatsoever, until recently HR management has played a minor role. While the quality of HR management varies within a company or group,

Neglected strategic lever? Developing and retaining the right people is foreseen to become even more important in the medium term. However, HR in A&D still lacks focus on crucial future challenges.

3



K

HR MANAGEMENT PERFORMANCE[% of answers]

L

MAIN CHALLENGES AFFECTING HR STRATEGY/CAPABILITIES [% appearance of top 3 answers]

Good/best in class: management of HR capabilities – considered as a differentiating factor

Management of a global footprint

Deliver profitable programs on targets

New products/new technolo-gies/innovation

Lower cost base

Management of complex supply

chain

Ramp-up in production

Average: basic functions performed – some initiatives to support strategic moves

Ramp-down in development

programs

Poor: basic functions performed – no strategy

Very poor: basic functions not performed jeopardizing

short-term performance

Development of business in new zones

Development of services

Other

11 117

71

7 1

815

149

14

1111

10

A MINOR ROLE FOR

HR

SHORT-TERMBIAS

systems. In this field, fewer than 40% of the top man-agers assess their company as "good/best in class." These strategic elements are key success factors and need to be addressed very soon to be able to master the future. M

Focus on short-term operational challenges

Based on their own statements, companies focus their HR strategies on short-term operational challenges re-lated to securing the on-time delivery of current pro-grams, the ramp-up of new programs, and the man-agement of the global supply chain. This is in line with the companies' market optimism and corresponding top priorities for 2015. L

However, mid- and long-term challenges like the preparation of a ramp-down in development programs are playing a minor role in HR's day-to-day agenda. Strategic competence management is hardly visible, although companies need to engage in workforce transformation to master future challenges. What and who is needed in order to stay or become competitive in the coming five to ten years? Threats to the busi-ness have not been fully translated into real operation-al HR concerns and systematic action.

Wanted: external competencies

Aligned with fairly optimistic views on market perspec-tives for both civil and defense, the three main levers are focusing on the acquisition of resources from an internal and external perspective.

"Recruitment of talent" (84% of answers) and "acquisition of new skills" (81%) are not surprisingly seen as the two main HR levers for the future, i.e., a clear focus on injection of external competencies, which are thought to be far more accessible than managing internal evolution. Companies are seeking new competencies and external experience to ensure that they can quickly adapt to changing client needs and disruptions in technological and cultural land-scapes. Source: Roland Berger "A&D Management Issues Radar 2015" survey



"Shift of internal competencies" is thus ranked third, with a share of 71% of the executives' answers. Re-flecting on the important social constraints in many key markets in Europe, Roland Berger industry experts are convinced that it ought to be at the top of the list and that consequently fostering internal mobility is re-quired. Companies need a high degree of internal mo-bility to ensure that employees as well as managers not only quickly adapt to new business challenges but also think and work more cross-functionally and inter-disciplinary.

Levers identified, not always tackled

For ten years, companies have built up their capabili-ties, and they have become much better in what they do and how they do it – a good job, not an outstanding one. The most important levers have been identified but not always been tackled.

However, the A&D industry seems to be looking for an all-embracing approach, and there is still a long way to go.

HR management needs now to move from a rather static attitude, i.e., supporting the business in execut-ing defined tasks, to a more dynamic service function, thereby helping to adapt corporations to industry shifts, while also developing ambitious transformation plans, and switching from a multi-local resource man-agement to managing a real global talent pool. These changes would enable HR to become a real contributor to overall corporate strategy, and not only merely an enabler.

M

HR PERFORMANCE BY DOMAINS[% of answers]

Social relations/industrial relations

Performance management, rewards, compensation and benefit

Engagement, behavior and culture management

Management of critical competences

People development and training

Capacity planning

Organization and management support

Recruitment

HR administration

Career management (incl. mobility)

17 26 56

14 46 40

14 41 44

20 41 39

16 42 43

14 51 35

17 50 33

25 35 40

15 50 35

35 39 26

Good/best in class Average Very poor/poor

Ø 19% Ø 42% Ø 39%


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SMART EFFICIENCYThe fast way for companies to become lean and agile Many companies are wrestling with the question of how ambiguous develop-ments are going to affect their bottom line. "Smart Efficiency" is an approach we have developed to enable companies to gear up for uncertainty and give themselves more breathing space. They can do this by simultaneously increasing their elasticity and efficiency. We present an analytical tool, propose an action roadmap, and help organizations to realize quick wins.

THE EUROPEAN A&D INDUSTRYLeaning against deindustrial-ization trend. Clouds in the sky bring new challenges. Germany, France, and the UK have all seen a sharp out- performance of their national A&D sector industries compared to their national manufacturing sectors in value added. It can be explained by an early exposure to the emerging markets, massive invest-ments, cutting-edge technologies, and high-skilled workforce. The A&D industry has secured ongoing product innovation. Most of all, it is an illustration of what cooperation at the European level can achieve.

WHITHER DEFENCE?Preparing for the next strategic defense and security review

Following the General Election in the UK, one of the first challenges to face the next government is the develop-ment of a Strategic Defenseand Security Review (SDSR). The SDSR is likely to be subject to high levels of scrutiny by the armed forces, the media, industry, trade unions, academia, and the taxpayer – with divergent and competing interests. The approach providing for the defense and security of the UK within the context of constrained resources will need to be carefully considered.

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This publication has been prepared for general guidance only. The reader should not act according to any information provided in this publication without receiving specific professional advice. Roland Berger Strategy Consultants GmbH

shall not be liable for any damages resulting from any use of the information contained in the publication.

© 2015 ROLAND BERGER STRATEGY CONSULTANTS GMBH. ALL RIGHTS RESERVED. TA_1

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Publisher

ROLAND BERGER STRATEGY CONSULTANTS GMBHSederanger 180538 Munich/Germany+49 89 9230-0www.rolandberger.com

Editor

THOMAS [email protected]

Thanks to our team for their valuable contributions:Pierre Bastien, Laurent Benarousse, Max Blanchet, Hélène Burger, Roberto Crapelli, Joao Saint-Aubyn, Damien Dujacquier, Rahul Gangal, Oliver Grassmann, François Guenard, Anas Hanan, Feng Ke, Maria Mikhaylenko, Stefan Keese, Serge Lhoste, Holger Lipowsky, Andrea Marinoni, Benjamaa Oulidi, Alain d'Oultremont, Anand Raghavan, Jonathan Wright, Qi Wu, Artem Zakomirnyi

The authors welcome your questions, comments and suggestions

MASSI BEGOUSPartner, Paris+33 1 [email protected]

MANFRED HADERPartner, Hamburg+49 40 [email protected]

ROBERT THOMSONPartner, London+44 20 [email protected]

JEREMIE MAMANProject Manager, Paris+31 1 [email protected]

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