IFS Presentation March 31, 2017 © 2009 IFS

Paradigm shift in mro for aerospace using it solutions NILESH KUMAR PRACTICE HEAD – AEROSPACE & DEFENCE IFS SOLUTIONS INDIA nilesh.kumar@ifsworld.com +91 9810050404 © 2009 IFS

Introduction © 2010 IFS

IFS Presentation Global Presence The handful of people with you today are part of a larger global team of people here to serve you. Few companies are in the position to offer you both the personalized attention you need to ensure success and the global footprint required for a growing, 21st-Century business. COUNTRIES 50 NET SALES US$ 341 M EMPLOYEES 2,700 CUSTOMERS 2,000 LANGUAGES 20 Global Presence © 2010 IFS March 31, 2017 © 2010 IFS

IFS at a Glance Overview A leading global provider of end-to-end software solutions - applications: ERP, SCM, CRM, PLM, CPM, EAM, MRO, Projects Founded in 1983 - headquarters in Linköping, Sweden - Listed on the Stockholm stock exchange Some 2000 customers and some 830,000 users of IFS Applications™ Represented in more than 50 countries Strong Knowledge, Skills and Technical transfer strategy for our solutions IFS Overview © 2009 IFS

IFS Applications IFS Overview IFS MANUFACTURING™ SHOP FLOOR REPORTING COSTING SHOP ORDER REPETITIVE PRODUCTION BATCH PROCESS MAKE | CONFIGURE | ASSEMBLE TO ORDER ENGINEER TO ORDER MAKE TO PROJECT CONSTRAINT-BASED SCHEDULING MULTI-SITE PLANNING IFS MAINTENANCE ™ EQUIPMENT MONITORING METERING OVERALL EFFECTIVENESS WORK ORDER PREVENTIVE MAINTENANCE SCHEDULING & RESOURCE ALLOCATIONS PROCESS AUTOMATION INTEGRATION VEHICLE INFORMATION MANAGEMENT COMPLEX MRO IFS FINANCIALS™ GENERAL LEDGER CONSOLIDATED ACCOUNTS FIXED ASSETS RECEIVABLE PAYABLE CASH FLOW BUDGET MANAGEMENT eINVOICE IFS HUMAN RESOURCES™ PAYROLL ADMINISTRATION TIME & ATTENDANCE EXPENSE MANAGEMENT TRAINING EMPLOYEE DEVELOPMENT & CERTIFICATIONS RECRUITMENT SELF-SERVICE IFS PROJECTS™ PROJECT MANAGEMENT PROJECT BUDGETING PLANNING RISK MANAGEMENT SUB CONTRACT SALES CONTRACT REPORTING IFS DISTRIBUTION™ INVENTORY PURCHASING SUPPLIER SCHEDULES CUSTOMER ORDERS INVOICING DEMAND PLANNING IFS SALES & SERVICE™ SALES & MARKETING WEB STORE SALES CONFIGURATOR CALL CENTER FIELD SERVICE SERVICE CONTRACT MANAGEMENT IFS BUSINESS ENABLERS™ SYSTEM INTEGRATION & WEB SERVICES EVENT MANAGEMENT MOBILE & WIRELESS SERVICES PERSONAL PORTAL COLLABORATIVE SOLUTIONS IFS ENGINEERING™ PDM CONFIGURATION ASSET DATA MANAGEMENT ENGINEERING CHANGE PROJECT DELIVERY IFS Foundation1™— Technology and Architecture BUSINESS PERFORMANCE REPORTING ECO-FOOTPRINT MANAGEMENT DOCUMENT MODELER QUALITY CASE ACCOUNTING RULES IFS Overview

Construction, CONTRACTING, IFS Presentation Ifs solutions – focus Industries AEROSPACE & defense Utilities & telecom Process Manufacturing Automotive Construction, CONTRACTING, & service Management Retail & wholesale IFS Overview © 2010 IFS March 31, 2017 © 2010 IFS

Lufthansa Technic Qantas IFS IN Aersopace A FEW EXAMPLES Lufthansa Technic Qantas Examples of Customer Success stories © 2011 IFS

Critical business issues / challenges © 2009 IFS

15% on Concept/Assessment/Design 70% of whole life cost in support Through life support THE A&D Challenge Potential for Cost Reduction Initial Procurement reform - potential for major savings Efficient in-use management - greatest potential Improved ‘in-Service’ support - driver of Logistics efficiency/cost saving Management Effort - equipment programmes spend most on in-service issues ‘Designed-in’ - embedded costs are committed well before equipment is delivered Supportability - focus should be on designing supportability into equipment Design Stage - best chance to reduce support costs is at the design stage 15% on Concept/Assessment/Design .....but.....85% In-Service 70% of whole life cost in support Industry are best placed to design in Supportability’ into their equipment © 2009 IFS

Critical business issues Commercial aviation Commercial aviation—A market of great volatility and tremendous interdependencies. In light of today’s increasing competition and mounting cost pressures, operators need to: Optimize aircraft utilization to maximize revenue Contain operational and labor costs, including MRO activities, among others Continue to ensure A/C safety and regulatory compliance To meet these goals, operators demand consistently reliable service with increasingly leaner budgets, resulting in two overriding CBIs for MRO shops: Being able to provide quick turn times at competitive rates Reducing their own operational costs © 2009 IFS

DEFENCE Specific CHALLENGES IFS Presentation DEFENCE Specific CHALLENGES MAINTAINING OPERATIONAL EFFECT Extended use of Defence equipments - Typically used from 10 to 30 years and significantly increased equipment complexity Challenging Defence Budgets - Problem enhanced through credit crisis Increased demand for MOD/DOD process efficiency - Generally driven be government demand Need to manage resources better by integration of Finance and HR Capabilities - Defence resources (especially trained people) are scarce and increasingly expensive Need to manage resources and skills better due to increased regulatory requirements - A particular problem with aircraft maintenance Impact of Operational tasking (Increased) - Major transformation in global Defence Forces with more flexible roles and increased tasking Impact of Operational tasking (Operational Readiness) - Increased need for high agility and operational readiness against unspecified forces © 2009 IFS March 31, 2017 © 2009 IFS

derived CHALLENGEs TCO and Through life SUPPORT Success depends on a partnership between Industry and an Operator/MOD/DODs Information is key enabler Information needs of Operator/MOD/DOD/Industry change Shared Data is Critical To understand risks in contracting and bidding To exploit benefits (improve availability & efficiency, cost savings & profit) To establish trust © 2009 IFS

Trends & drivers © 2009 IFS

Market trend for in-service support A&D Transformational staircase Significantly enhanced potential Industry Involvement, Risk, but revenue Contracting for Capability Contracting for Availability Spares Inclusive Traditional Provider Operator Decider Moving up ‘staircase’ exploits Industry’s strengths by using Service Based Contracting to deliver equipments as a capability - buying Performance, not transactional goods and services MRO for aerospace & defence

Market trends for in-service support A&D transformational staircase Move from isolated applications / islands of information for MRO, Supply Chain, Quality, Engineering - To integrated IT solutions for end to end business process Outsourcing of various business processes to 3rd Party service providers Operations Engineering Supply Chain Management Quality & Compliance Control LINE BASE SHOP Maintenance Planning & Scheduling Supporting Processes (ERP Backbone) © 2009 IFS

A Common view of performance Market trends TCO and Through life SUPPORT Success depends on a partnership between Industry and an Operator/MOD/DODs Information is key enabler Information needs of Operator/MOD/DOD/Industry change Shared Data is Critical To understand risks in contracting and bidding To exploit benefits (improve availability & efficiency, cost savings & profit) To establish trust .....and this needs an e2e information capability for success A Common view of performance © 2009 IFS

It solutions © 2009 IFS

aerospace & defence – integrated mro IFS Presentation aerospace & defence – integrated mro Best practice solutions OPERATE Business Processes ENGINEER PLAN MAINTAIN UPGRADE DISPOSE MULTI- MODE MULTI- NATIONAL MULTI- CURRENCY MULTI- DIVISION MULTI- LANGUAGE MULTI- SITE CORPORATE PERFORMANCE MANAGEMENT FLEET & ASSET MANAGMENT Manage Master Configuration Manage Serial Configuration Manage Maintenance Programs Operate Asset Manage Line/Forward Maint. Plan Heavy/Depth Maint. Perform Reliability Analysis MAINTENANCE, REPAIR & OVERHAUL HEAVY MAINTENANCE COMPLEX ASSEMBLY COMPONENT Application Solutions Plan Maintenance Visit Scope Maintenance Visit Asset induction Work Scheduling Execute Visit Work Scope Asset Dispatch Maintenance Visit Closure Receive and Dispatch Maintenance Level Work Scopes Disassembly and Assembly Disposition and Repair Configuration and Compliance Agreements and Invoicing Receive and Dispatch Repair Order Mgmt Disposition and Repair Loan and Exchange Agreements and Invoicing SPARE PARTS MANAGEMENT Demand Forecasting Spare Part Sales Spare Part Catalog Supply Chain Network Procurement Receipt and QC Distribute Assets internally Manage Inventory Manage Rotable Pools Deliver to Customers Reverse Supply Chain Finance & eInvoice Human Resources Document Management Contract & Project Management Call Center & Case Management Facilities & Equipment Management Support processes © 2010 IFS March 31, 2017 © 2009 IFS

Integrated solution – common view IFS Presentation Integrated solution – common view Operational Requirements Maintenance Intervals Fleet Mods Plan Reports FLEET MAINTENANCE PLANNING Current & Forecast Availability Deferred Faults Mods Maintenance Equipment Performance / Statistics W101 Work Order DISTRIBUTE MAINTENANCE OPERATIONS CONFIGURATION Control Sub-Con Out W/SHOP MAINTENANCE & SCHEDULING Supply Chain Materials Maintenance Performance & Supply Chain Performance A54 Master Maintenance Schedule What is where – an asset centric view © 2009 IFS March 31, 2017 © 2009 IFS

Maintenance Action Required Contractor Support Facility Eurofighter Typhoon iers (industrial exchange & repair service) IFS Applications tracks critical assets both on the aircraft and through the industrial repair loop and transportation system Suppliers are paid for a ‘rotable’ exchange or repair service Performance Related Payment linked to the supplier’s performance Repair Consortium Customer Exchange Items Repair Items Maintenance Action Required Customer Spares Stock Contractor Support Facility Exchange Stock Facility Limited Repair Industry Manufacturer’s H O L E I N T W A A&D IN-SERVICE SUPPORT & ASSET Examples of Customer Success stories © 2009 IFS

Performance / Availability IFS Presentation Performance / Availability Drill-Down to Figures/Graphs visibility © 2009 IFS March 31, 2017 © 2009 IFS

Performance / Availability IFS Presentation Performance / Availability visibility © 2009 IFS March 31, 2017 © 2009 IFS

Performance / Availability IFS Presentation Performance / Availability Contribution of disparate data. Inventory Learning – from HR/Training Core Maintenance Costs Structure Data to Suit… Fleet View Asset Type View Etc… Scorecard Indicators & Trends User definable limits visibility © 2009 IFS March 31, 2017 © 2009 IFS

Fleet Status Drill-down to view Details of faults etc. visibility © 2009 IFS

benefits Mro shops Improve operational efficiency and control by Reengineering business processes, if needed Optimizing planning and forecasting over the long term Monitoring and adjusting daily maintenance operations Collaborate in real time with employees, customers and suppliers over web portals to Increase customer satisfaction Speed up internal and external processes Ensure accurate and fast information flow across the entire enterprise by Integrating shop-floor activities with material management, finance, workforce management, and business intelligence Ensure proper job assignments by keeping track of each employee’s certifications and skill sets And reduce costs … © 2009 IFS

Business intelligence tools (scorecards, cubes) Reducing Costs Supply chain management Operations IT Solutions provides tools to help lower costs in both areas. Maintenance management Eliminate nonproductive wait periods Achieve faster turnaround times Materials/inventory management Reduce lead times for parts and external services Lower on-hand stock Cost Tracking Tracking real-time labor costs Tracking costs to each work order and aircraft, identifying all man-hours spent, all materials issued, all external costs accrued Showing actual costs of materials in inventory Tracking purchased inventory and customer furnished inventory by condition code and owner code Business intelligence tools (scorecards, cubes)

E-MMS at Indian air force Enterprise Service Bus Business Process Interaction Services (Portal) Access Control Services iCAT IMMOLS DFS MRO Applications Enterprise Management System Security Management Maint ., Engg . & CAD IS Mail System Web Content Mgmt. Identity Management Knowledge Mgmt System Data Minning Business Intelligence & Reporting Collaborative e - Learning & Team Collaboration Search ETL Database, Warehouse & Content Mgmt. System Multidimesional OLAP Databases Unstructured Documents Kiosks Mail Interface Directory Services HQ Monitoring Control e Trolley 2. Solution Design  2.1 Architecture 

Independent analysis © 2009 IFS

Enterprise Asset Management Solutions Worldwide Outlook IFS A&D Market Share IFS holds the leading market position in the following market segments EAM in EMEA EAM in Aerospace & Defence EAM for the Fleet asset type EAM Field Service Management Enterprise Asset Management Solutions Worldwide Outlook Sourced from: Independent analysis © 2009 IFS

IFS Presentation March 31, 2017 © 2009 IFS