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Growth Milestones 1942 Foundation 1950sManufacture of Aerospace components 1960sDesign & Manufacture first Landing Gear systems Manufactured the Apollo.

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Presentation on theme: "Growth Milestones 1942 Foundation 1950sManufacture of Aerospace components 1960sDesign & Manufacture first Landing Gear systems Manufactured the Apollo."— Presentation transcript:

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2 Growth Milestones 1942 Foundation 1950sManufacture of Aerospace components 1960sDesign & Manufacture first Landing Gear systems Manufactured the Apollo lunar module landing gear 1970sFirst Major R&O Contract for USAF 1985Management buy-out First major military manufacturing contracts (C-130, F-4, F-15, KC-135R) 1986Listed as a Public company (TSX:HRX)

3 Growth Milestones 1987Creation of Gas Turbine Division 1999Creation of Aerostructure Division 2000Merger with Devtek Corporation 2002Design Engineering Expansion 2003Awarded 10 year USAF R&O contract 2004Acquisition of Progressive Inc. (Dallas) 2007Celebrated 65 years 2010Acquisition of Eagle Tool and E-2 (Ohio) 2011Opening of Héroux-Devtek Mexico

4 Héroux-Devtek Today Cincinnati Kitchener Toronto City of Montreal Springfield Arlington Dorval Cleveland Longueuil Laval Queretaro 358 M$ Annual sales in Fiscal Employees 13 Facilities/Offices in North America Financially Sound Company Major Investments during the last 3 years Access to Capital

5 Héroux-Devtek Sales Debt / EBITDA Debt / Cap. Héroux-Devtek1.2x27.6% Industry Average1.9x31.5% Industry Median1.7x30.3% Financially sound

6 Our Customers END USERS O.E.M.s TIER I

7 Broadening services to provide ultimate customer satisfaction 5 Axis high speed and conventional profile milling Aluminum & Titanium Tooling & Support Raw material integrator Methods/concept Development Manufacturing R&D Customer support Vacuum/dip brazing Machined part/hardware Kits to support aftermarket/ aircraft modifications Small business partner Complex Machining Kitting Value-Added Services Hole drilling-fastener installation Wet sealant application Cold expansion of holes Bushing installation Emerging business for structural assembly Aircraft Assembly AEROSTRUCTURE DIVISIONS CAPABILITIES

8 12 large 5-axis gantries, 270,000 sq ft climate-controlled facility STATE OF THE ART MACHINING AND ASSEMBLY FACILITY

9 Landing Gear Division

10 Building on Experience to Design the Future 90 Engineers CATIA V5-R17/18 & V6 MBD/DPD Full Test capabilities: Drop test tower up to 100,000 lbs Fully Integrated facility Complete support I.L.S. Complete system integration Full landing gear systems Supply Chain Management Small to Large size landing gear components Hydraulic actuators Rotor HubsPrecisionManufacturingAssembly Repair & Overhaul EngineeringDesign LANDING GEAR DIVISIONS CAPABILITIES

11 Design & Development Office 90 experienced engineers St-Hubert 2DROPTESTTOWERS2DROPTESTTOWERS STATIC-FATIGUE-ENDURANCESTATIC-FATIGUE-ENDURANCE Drop Test Tower Specification Load Range (pounds): 5, ,000 Max. Sink Speed (ft./s): 24 High Speed Data Acquisition System (Ch.) 64/96 at 5kHz per channel Static/Fatigue/Endurance Test Rig Specification: 3200 sq. ft. of Floor Space Servo Controlled Loading Actuator: 16 Data Acquisition System (Ch.) 64/128

12 HDs route to integration Repair & Overhaul : Finishing Assembly Performance knowledge Product improvement One piece forging Corrosion Protection Credibility MFG of Spare parts Equipment Programming Know-how of critical part 80s Build To Print Assy C130 Assy to Lockheed KC-135 and P3 to US Government Landing Gear Design Design / Manufacture the Learjet 45 and RQ4A & B90s Systems Design and integration W&B, Steering, Retraction CH53K and Dassault 2010 Design Development and Qualification X45, BA 609, F-35 uplocks, Legacy 450 and LJ We use our Engineering Expertise as a Locomotive

13 Constraints that will have to be managed: –Development schedules are challenging –Limited Allocated space and geometry of our product –Loads and Interfaces –Changes during the development phase Integrators challenges Innovation Landing Gear ReliabilityWeight Cost Understand the Customers requirements

14 Integrators challenges Between the OEM and the supply chain J.D.P / P.D.R InterfacesHarmonize Interfaces with aircraft and the different systems LoadsLoads Development Design Trade OffDesign Trade Off studies DesignFinal Design optimisation Qualification Test Plan Material and ProcessesSelection of Material and Processes ForgingForging Drawing Release 12 months24 months6 months

15 Integrators challenges Between the OEM and the supply chain 12 months24 months6 months C.D.R. loadsDetail Design phase – Validation of the loads Reliability / Weight and CostsOptimization in terms of Reliability / Weight and Costs Performance & ReliabilityPerformance & Reliability of the complete system with the different systems (Retraction systems / Steering control / W&B controls / etc.) InterfaceAssemblies and Interface validation DrawingsDrawings Release Qualification Tests Procedures Preliminary Suppliers selectionPreliminary Suppliers selection

16 Integrators challenges Between the OEM and the supply chain 12 months24 months6 months Prototyping Final Drawings ReleasesFinal Drawings Releases (500+ different parts) Preparation of Tooling / Methods / Programming Suppliers SelectionSuppliers Selection Manufacturing and Processing Authorization First Article and Source Inspection AssemblyAssembly and Testing (HALT)Highly Accelerated Life Testing (HALT) Engineering Support

17 Integrators challenges Between the OEM and the supply chain 12 months24 months6 months Qualification Drop Testing Static Testing Endurance & Fatigue Testing Environmental Testing Safety of Flight = 6 months Full Qualification = 2 years

18 12 months24 months6 months Integrators challenges Between the OEM and the supply chain Typical Lead time – 18 months DWG releaseFirst delivery How do we cope with the schedule challenges? Organizational Structure Responsible for the first 10 shipsets Business Unit Team & People Commitment & Communication Supply Chain Risk Taking approach Manufacturing Forgings Supply Chain

19 Integrators challenges Between the OEM and the supply chain Other Challenges Development Costs Development costs are the responsibility of the integrators Tooling & Dies Engineering effort Qualification effort Need Risk Sharing Partners Contract Duration Prices are fixed for the duration of the contract Performance goals are set for the duration of the contract MTBF / MTBUR / DR Warranty Delivery Need Risk Sharing Partners Product Support Need to cover the Fleet Service centers Field Representatives Need to offer 24 / 7 service A.O.G. Trend Monitoring to avoid large retrofits Need Risk Sharing Partners

20 Innovation Customer wants more: Weight Reduction Noise Reduction Manufacturing Processes Performance Monitoring Landing Gear ReliabilityWeight Cost Low Life Cycle CostsNew Material

21 Innovation Research & Development Material & Processes Understand properties New Materials Green Corrosion Protection New manufacturing Processes Mechanics & Systems Noise Reduction Weight & Balance Performance monitoring Systems simulation Chrome Green

22 Thank you ! MERCI Thank You !


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