The Benefits for Business of Forging Closer China EU Trade and Investment Relations，Mr Laurence Barron

The Benefits for Business of Forging Closer China/EU Trade and

Investment Relations

Mr Laurence Barron Chairman

Airbus Group China

Sixth EU Asia Top Economist Round Table EU China Economic and Finance Forum

Beijing, 17 November 2014

17th November 2014

THE BENEFITS FORBUSINESS OF FORGING

CLOSER CHINA/EU TRADE AND

INVESTMENT RELATIONS

AIRBUS IN CHINA

© AIRBUS China LTD. All rights reserved. Confidential and proprietary document.

Airbus & JVs in China

Airbus China

20 Field service locations in 10 cities

Final Assembly Line

Industrial co-operation manufacturing sites

Shanghai

Hangzhou

Xi’an

Chengdu

Shenzhen

Guangzhou

Shenyang

Harbin

Haikou

Qingdao



Hua-Ou Aviation Training Centre and Support Centre –Airbus 50%

Airbus(China) Enterprise Management and Services Co.,Ltd. – Airbus 100%

Since 1994

–Strengthen and expand presence

–Training Centre: over 25,000 trainees

–Support Centre: 32,000 parts, EADS supplier avionics

repair shop, 37 aviation companies

Airbus Beijing Engineering Centre (ABEC) – Airbus 70%

– A350XWB/A380/SA engineering, customer services

Since 1997

Since 2005

Since 1994



Final Assembly Line-Tianjin – Airbus 51%

–1st flight 18th, May 2009; 1st delivery 23rd June, 2009

–Becoming Airbus FAL Centre in Aisa

Airbus Tianjin Delivery Centre (ATDC) – Airbus 100%

–47 aircraft scheduled deliveries in 2014

–Delivered more than190 aircraft

–Becoming Airbus Delivery Centre in Aisa

Composite Manufacturing Centre in Harbin – Airbus 25%

–A320 composite rudder, elevator and HTP spars

Since 2008

Since 2009

Since 2008

© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document.

Industrial cooperation highlight – A320 Family

• Wing supplied to FAL – C are made by AVIC in

China

• FAL- C: First Airbus final assembly line outside Europe

• Production rate: 4 aircraft per month

• Final assembly of A320neo from 2017 onward


Industrial cooperation highlight - A350XWB

Design

Rudder & Elevators

Spoilers & Droop panel

By ABEC

Harbin Manufacturing Centre

Manufacturing

AVIC, Chengdu

1st delivery of A350XWB Elevator (16th Sept 2013) and

rudder (planned by Dec 2014)


Increasing industrial turnover of Airbus in China

0

50

100

150

200

250

300

350

400

450

500

550

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015

Industrial Cooperation Value (Million USD)

Yearly Industrial Turnover*

$500M - Target by 2015

* Include: Airbus direct spent in aerostructure & raw materials; Airbus spents on the service from ABEC, FAL-C and ATDC


Year of 2014 – New Era of Airbus cooperation in China

Framework agreement with AVIC to enhance the cooperation for HMC

–Increase Airbus share from 20% to 25%

–Resolving technical & operational challenges

–Ensure effective management for production ramp-up

MoU with COMAC for non-competitive

cooperation– ATM/CNS roadmap harmonization

– PBN regulation

– GMF methods

– Customer finance methods

Extension of A320 FAL cooperation to 2025 and

becoming

Airbus FAL & Delivery Centre in Asia


The 200th FAL-C delivery will happen in Dec 2014

First delivery

Jun. 2009 100th delivery

Sept. 2012

150th delivery

Nov. 2013

6

2435 37 40

5

2

16

2009 2010 2011 2012 2013

FAL-C deliveries

A320 A319

Scheduled 200th delivery

Dec 2014


1263 employees working for Airbus and JVs in China

1994Airbus

2005ABEC

1997HUA-OU

2009HMC

2008FAL-C, ATDC

1263 employees

Airbus China Hua-ou

ABECFAL-C ATDCHMC XAC ATL

Airbus China 234

HUA-OU 87

ATDC 79

ABEC 120 FAL-C 400

HMC 327

XAC 4

ATL 3

Break down:

Data as at end of September 2014



0

200

400

600

800

1000

1200

198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014Q1

A380 A330/A340 A320 Family A300Logistics Centre opened

1069 by 2014Q1

First entry

into China

Hua-Ou Aviation

Centre opened

Airbus fleet is doubling every 4 years in the new century

Airbus China

office opened

A(B)EC

established

FAL-C/ATDC

first delivery

HMC opened

1994

1997

2005

2009

2011


50% market share

0%

20%

40%

60%

80%

100%Boeing

91%

Airbus9%

In-service aircraft in China

Airbus50%


China is catching up

116

141

260

181

197

824

229

0 200 400 600 800 1000 1200

Turkey

UAE

France

Russia

Gemany

UK

Mainland China

USA

2005 2006-2014Q3 net increaseAirbus in-service fleet by 2014Q3

*In terms of in-service fleet, by end of Q3 2014


Airbus operators / customers

Leasing

companiesFull service carriers Airbus operators

/customers

16 FSC

2 Lessor

2 LCC

Low cost carriers

Airbus Helicopters in China

1980

First Sale

in ChinaProduction License

for Dolphin AS365

EC120 Cooperation

with CATIC & STAE

EC175/AC352

Cooperation

with AVICOPTER

Creation of AH

China in Shanghai

Creation of AH China

in Hong Kong

Acquisition of 21%

of CGAMEC’s sharesOpening of AH

China offices

in Harbin,

Chengdu and

Wuhan

Opening of AH

Rep Office in Beijing

Opening of

HK CSC

Opening of HK

Logistic platform

Inauguration of EC225

FFS in Beijing

Airbus Helicopters in China History

1967 1992 20042002 2005 2006 20082007 2009 2011 2012 2014

Signing of

EC175/AC352

1,000 Production

Contract

Airbus Helicopters in China

AW10%

38AIRBUS Helicopters

41%

AVICOPTER5%

RUSSIAN7%

2SIKORSKY13%

OTHERS6%

2013 Results

Deliveries: 23 a/c

Bookings: 15 a/c

Fleet Share in Service

End of 2013AH China Headquarter

Branch and Customer Liaison offices

MRO Center

Customer Support Center and Logistic Hub

Cooperation

330 helicopters in China

Civil + Para-public Turbine

123 Airbus Helicopters

aircrafts

Commer

cial &

Private

Police

, SAR,

EMS*

O&G

67 a/c 25 a/c 31 a/c

37% 40% 55%

* First dedicated EMS helicopter in

China ordered by Beijing 999 center

in 2014 (1xEC135)

EASA certification in January 2014

Historic milestone in March 2014: production contract of 1000 helicopters

FAA certification expected mid-2014

Initial deliveries in Q2-2014

Ramp-up in 2015 to 2016, full production in 2017

Cooperation with Chinese Industry

EC 120

Z-9

EC 175 / AC 352

• Oil & Gas:

With 1 EC155B1 and 4 additional EC225 delivered to China in 2013, Airbus

Helicopters have the biggest fleet with more than 30 aircrafts in O&G segment.

• Police:

Two latest police aviation units (Wuhan and Dalian) have chosen Airbus

Helicopters EC135 and EC155B1 (delivered in 2013) for their operations.

• General aviation:

AS350B3 remains the single malt reference in Chinese general aviation

community. First EC130T2 in China was delivered earlier this year.

• EMS:

First helicopter to be fully equipped and dedicated to emergency medical

services in China has been ordered by Beijing 999 Center and this EC135

was delivered in October 2014.

Airbus Helicopters in China:

Recent Highlights to Increase Market Share

Questions&

Answers

Economy & Finance

The Benefits for Business of Forging Closer China EU Trade and Investment Relations，Mr Laurence Barron