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(1)

ZODIAC AIRCRAFT SYSTEMS

Preferred Suppliers’ Selection

(2)

Operational Excellence

Operational Excellence

Operational Excellence is the result of huge efforts done internally in our

organization and in our processes, following basic Kaizen principles.

This lean approach applied in our Business Units leads to On Time / On Quality and cost decrease to our

Customers' satisfaction.

Continuous improvement culture with our supply base, has definitively been the base of our last 3 years

We decided to launch the selection called

“ Preferred Supplier ”.

(3)

Operational Excellence

Operational Excellence

Selection of best in class suppliers who have business performances with Zodiac Aircraft Systems

Will be part of our future for the coming years. This Preferred Supplier status will indeed allow you to get more benefits working closely allow you to get more benefits working closely with our Business units : follow up business meetings, and increase markets growth.

(4)

Operational Excellence and Preferred Supplier’s Selection

Operational Excellence and Preferred Supplier’s Selection

The Preferred Supplier’s program is a selection of global suppliers, always

among the Best in Class, to whom Zodiac Aircraft Systems offers a

(5)

Operational Excellence and Preferred Supplier’s Selection

Operational Excellence and Preferred Supplier’s Selection

Strict criteria are determined for each classification.

Each supplier is classified according to the strategy validated at Zodiac Aircraft Systems level

(6)

Zodiac Aircraft Systems : Benefits

Zodiac Aircraft Systems : Benefits

Best in Class Suppliers for Operational Excellence with the extended

supply-chain

Cost reduction, SOTD, SNCR, VLD, Certification

Focus resources on selected suppliers

Supplier reduction

Expected Benefits for Zodiac Aircraft Systems

Supplier reduction

Quarterly Business Meetings at the management level

Optimization of our global presence, including our CCC operations Dedicated Leadbuyers and SD experts

Long run of relationship based on :

Business Development and Performance results Long Term Agreements

(7)

Zodiac Aircraft Systems Commitments

Zodiac Aircraft Systems Commitments

Business Growth priority

RFI/RFQ Priority, awarding new programs and resourcing at equivalent

performances.

Provide access to Strategic Markets and business developments

Main Commitments from Zodiac Aircraft Systems to the

Preferred Suppliers

Provide LTAs to protect our business for a common profitable growth

Quarterly Business reviews at Zodiac Aircraft Segment level (Leadbuyer)

Provide Privileged Access to our Lean and SD expertise.

Confidentiality of information, especially regarding the End-Customers

(8)

Preferred Supplier : Benefits

Preferred Supplier : Benefits

Zodiac Aerospace’s Customer value, as a world leader in aerospace

Gain volumes and market growth through New programs and Re-sourcing Benefit from Zodiac Aircraft Systems’ continuous improvement approach Zodiac Aircraft Systems’ support for operational performances

Supplier Performance Management

Exclusive Preferred Supplier Value Package

Supplier Performance Management

Partnership in whole Zodiac Aircraft Systems’ activities

Access to 25 Business activities Worldwide opportunities

(9)

Preferred Supplier Commitments

Preferred Supplier Commitments

Best in Class in operational performances

Provide value and business solutions for the strategic commodities

Zodiac Aircraft Systems considered as a Key Customer

Main Commitments linked to the Preferred Supplier

Value Package

Achieve performances to meet Customer Satisfaction

Management meetings

Supplier Development plans and evaluations Continuous improvement and certifications

(10)

Strategic suppliers Strategic suppliers

Preferred Supplier’s & Classification effort

Business Growth focus on P Selection, Supplier Reduction effect

FY16 Classification update in Progress.

FY 15 Total Spend 502 M€ 2010 Classified Suppliers FY 14 Total Spend 410 M€

(11)

ZODIAC AIRCRAFT SYSTEMS

(12)

Voice of Suppliers

Voice of Suppliers

Survey : Supply Chain relationship between

your company and Zodiac Aircraft Systems

Knowing our suppliers is clearly a key to successful long term relationships.

(13)

Voice of Suppliers : Survey

Voice of Suppliers : Survey

Rolled out in July 2015, the survey has invited 130 suppliers.

47% of replies receiveYTD 5 Main Topics • Business Development • Purchasing Policy • Operational Performances • Operational Performances • Relationship • Open suggestions Deadline : September 30th, 2015

(14)

Survey previews

Survey previews

Purchasing Policy of Zodiac Aircraft Systems

•Do you clearly understand the Purchasing Policy of Zodiac Aircraft

Systems ?

Yes certainly 75% A new

communication is

• About 75 % of Suppliers advised understand our Purchasing Policy • About 25 % need a refresh

After this event, we expect that 100% of suppliers will understand our purchasing policy

necessary 23% Not at all 2%

(15)

Survey previews

Survey previews

Business Growth with Zodiac Aircraft Systems

•What was your growth with Zodiac Aircraft System over the last 3 years ?

Strong decrease ( >10% ) 3% Decrease (-2% to -10%) 7% Stable (+ / -1%) 26%

• About 30 % of Suppliers have grown by over 10% in the last 3 years

Stable (+ / -1%) 26% Increase ( + 2% to -10%) 31% Srong increase (>10%) 33%

(16)

Survey previews

Survey previews

Relationship with Zodiac Aircraft Systems

•How do you see your relationship

with Zodiac Aircraft Systems BUs ?

Partnership 45% Agreement 34% Agreement 34% Cooperative 21% Conflicting 0% Other 0%

• Good relationship with our Suppliers and no conflict situation

(17)

Survey previews

Survey previews

Relationship with Zodiac Aircraft Systems

•Do you receive your performance measured by Zodiac Aircraft Systems ?

You receive an automatic scorecard according

to a schedule fixed with your correspondents 86%

You receive your scorecard in a random way 10%

You receive your scorecard on request 2%

You never receive a scorecard 2%

You never receive a scorecard 2%

•Please rate our main operational KPI’s ?

Shared and and analysed in

collaborative way 50%

Unsterdood and shared with

(18)

Survey previews

Survey previews

Main Comments from Suppliers

Business Communication, Supplier Day Contract Management

Supplier Development action Performances Reviews

Forecast and Scorecards distribution

Forecast reliability

More performance reviews Air Supply implementation

Visibility of new project and programs for cooperation Monitoring of tiers-2 or tiers-3 often qualified or imposed by ZA

(19)

Next Step

Next Step

100% Completion by attendees

Deadline : 30 September 2015

Survey Supply Chain relationship

Results will be presented during the next

supplier event, including our actions plan.

Thank you in advance for your cooperation

References

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