In search of excellence; How to grow in a cash consuming world

Transcription

1 In search of excellence; How to grow in a cash consuming world 1 Name of the presentation

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 2

3 Fokker Technologies Super specialist based on rich heritage of aircraft manufacturing 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 Anthony Fokker Aviation Pioneer Fokker is involved in 75 Aircraft platforms resulting in Fokker s signature on over 14,000 aircraft today #1 in tails for business jets #2 in wiring systems #1 in out of production support

4 Balanced Portfolio Fokker has a semi captive program portfolio across 75 aircraft platforms from design through life time support Balanced Portfolio Across Program Lifecycles Revenue Mix 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 2011 P&WC Hawker Dassault 7X NH90 Cessna CJ3 / CJ4 B777 B737 B737 Apache Cessna A320 G550 Dash8-100/200/300 Sovereign Dash8-400 CRJ 100/200 CRJ Patriot Fokker A380 Chinook F JSF P-8A G650 A320NEO ARJ21 A400M C919 C-series Trent XWB A350 XWB Dassault SMS C919 NH90 F-16 C-17 Fokker A300/A310 Design-build Redesign - modifications Sustainment Aircraft platforms in Fokker portfolio in build life cycle Aircraft platforms in Fokker portfolio in support life cycle 4

5 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 Traditional model Asset light model Services model Dassault 7X Gulfstream G650 A380 Apache B747-8 A320, B737/B777, JSF A350, CSeries, Dassault SMS, NH90 Fo70 /Fo100 Fo50 Dash 8 Q100/200/300 F27 / F28 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 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 Note: 5 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

6 Fokker Aerostructures Markets Large Commercial Aircraft Business jets Position 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) Defense (US/EU/SP/LG) # 1 Dutch defense company key defence customers (Boeing, Lockheed Martin,Raytheon) global production footprint operation excellence in design&development, composite manufacturing and complex assembly

7 The evolution of Fokker Aerostructures : Building a strong and solid portfolio : Restructure becoming a growing and profitable organization : Building a sustainable and improving organisation Becoming World Class Building a strong Customer Base and being back In business Building a transparant and rock solid organisation steered by kpi s, strong drumbeats and multi-disciplinary teams Increase Maturity Levels of Sustainable key processes and enablers Being a high performer and a high adaptor Turnover: mio Turnover: mio Profitable and positive cashflow Turnover: mio Significant EBIT and positive cashflow growth Turnover: 400 mio Integral Change approach Integrated innovative solutions From production house to global supply chain 7

8 Right to win: Integration of smart solutions It s not about the smartest innovations it s about the smartest global integration. Data analysis Airline & aircraft economics Availability Reliability Knowledge based engineering 3D Design DOA / POA Technical manuals R&D Fokker Academy Technical training Quality control First time right Experience Aircraft economics Customer intimacy Remarketing Global reach Configuration management 24/7 Paperless Program management Low cost supply chain Compliancy World class performance Process innovation Human Capital Handbooks Airworthiness Flight testing Type Certificate Holdership Proprietary technologies Stress engineering Systems, Design & Development

9 To become a global player A clear Make-Buy decission tree is key Key technology YES Y Develop technology in house YES Best in Class? NO N Investments Alliances with strategic partners Process & Technology Contributes to USP? No more investments / future outsourcing YES Y Preserve the current state NO Profitable? NO N Operational improvements Outsourcing 9

10 The Global Game An integrated global approach is key in aerospace Fokker Aerostructures Global Footprint Architecture North Nth America America US$ supply chain US Defense access (buy American) Europa Nth America Central management and HQ Engineering and technology development Innovative automated production processes Dutch defense offset India Nth America China Nth America Strategic low cost sourcing Self-propelled (sub-) assembly facility Defense and commercial offset Integrated business model 10

11 Execution Excellence `Our strategic Roadmap drives our improvements, enabled by an integral change approach leading to firm results` Mission Vision Value Drivers KPI s Execution Working Capital Program Driving Quality Global Operations Integral Changes SCM Tools Shakespear Spend reduction RLIP CLIP Darwin 90 days US Sourcing Key Area KPI Finacial Impact Operations Supply Chain Productivity 65% 86% 4 Mio euro Ebit per Year Effciciency 82% 98% 3 Mio ebit per year Quality (NC level) Mio euro Ebit per Year Spend reduction Mio euro Cost reduction Dollar Content 22% 46% 40 Mio risk additonal dollar spend CAP Change Approach Lean Six Sigma General CLIP On time delivary 30% 78% Stockturn 3, Mio working Captital reduction Machining changed the world World Class Composites Sheetmetal LEF Throughputtime reduction Variation Control Yield management Overhead (GA level) 5% 3,50% 4,5 Mio ebit per Year >> Yearly Cost reduction >> Yearly Cash reduction 11

12 Design is generating results - Design (add on concept) in depth TO (ME)l Prod. EBIT red W.C. red Stockturn % dollar 180% 88% 31 44,1 6,6 55% Play Global, Act local: Fokker production system & Global Sc approach % 86% 29 39,5 6,0 50% Simplify & Re-tune for next maturity step % 87% 29 23,7 5,0 45% 132% 87% 25 13,3 4,5 38% 124% 86% 24 5,0 4,0 34% 120% 82% 14,5-3,8 24% 105% 78% 3,5-3,9 22% 100% 63% - - 3,7 20% Key enablers development: Human Capital, Technology and Logistic control Chain optimization integral Driving quality, Xmatrix MA, fact and maturity scan driven improvement selection (top and bottom) Chain optimization; the basics Designed improvement strategy, Working Capital reduction program (integral change), shakespear Peformance driven and multi disciplinairy teams dedicated to primairy processes, 6 S Leadership(teams), Demand and Performance Basics in place:erp system in place, Basic KPI s, Drumbeats Weeding & Set the Direction: From production house to Supply Chain Manager

13 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 13