Koc Consulting Company Profile Koç Consulting Aydoğan Koç SİNERJİTÜRK-SAVUNMA'08 SAVUNMA SANAYİMİZİN İÇ VE DIŞ EKO SİSTEMİNİ GELİŞTİRMEK 27 ARALIK 2008 ANTALYA, TÜRKİYE

Koç Consulting at a Glance About Us We provide consultancy services to our customers from Industry, National MoD’s, National and International Institutions to develop and implement innovative aerospace & defence strategies and projects. Our “High-Tech” consultancy services are concentrated on following areas: Aerospace & Defence Management Aerospace & Defence Engineering International Cooperations We are the trusted advisor and independent counselor to many of the most influential aerospace & defence companies and institutions in Europe and Turkey.

Areas of Consulting Aerospace & Defence Management Consulting We support our customers to elaborate unique solutions in order to develop their business and enter new markets using our competences in : Executive Management International Project Management Industrial Strategies Organisational Development Technological Roadmaps Business Development Acquisition Support Proposal Management RFQ & RFP Development Negotiation & Contracting Benchmarking Integrated Master Plans

Areas of Consulting Aerospace & Defence Engineering Consulting Addressing all fields in aerospace & defence engineering we support our costumers with: System Engineering Development of new Technologies Know-how Transfer Technology Transfer Risk Management Subject Matter Experts Integrated Project Teams Quality Management Software Engineering Supply Chain Management Process Management Training and Workshops

Areas of Consulting International Cooperation Consulting For a successful entry into the global aerospace and defence market, we support our costumers with: International Market Analysis Market Entry Strategies Business Development & Sales International Cooperations Strategic Alliances & Joint Ventures Intercultural Training

Design & Configuration Development Capabilities & Expertise Human Resources: Engineering Expertise Air Systems In Service- Support Testing & Acceptance Final Assembly Production Development Engineering Flight Control System Basic Systems Avionics Engine Structure Design & Configuration Development Aerodynamics Software .

Capabilities & Expertise Capabilities & Expertise Human Resources: Engineering Expertise Space/Satellite Systems Structure Imaging System Power System Engineering Propulsion Thermal Architecture OBDH AODC Communication Payload AIT QA Electrical Architecture OBDH On-Board Data Handling . AODC Attitude Orbit Determination and Control

Guidance Navigation Control Capabilities & Expertise Human Resources: Engineering Expertise Launcher/ Missile Systems GNC Propellant Tanks Power Supply Liquid Propulsion Solid Propulsion Thrusters System Engineering Structure/Fairing Mechanisms QA/PA GNC Guidance Navigation Control .

Capabilities & Expertise Capabilities & Expertise Human Resources: Engineering Expertise Defence Enabling Technologies Avionic Systems Radar Software Development Sensors Simulators Testing & Acceptance Final Assembly Production Development Engineering .

Capabilities & Expertise Capabilities & Expertise Human Resources: Koc Consulting‘s Aerospace & Defence Network International Aerospace & Defence Network in: Ankara Madrid Toulouse Bremen Munich Turin Hamburg Noordwijk Vienna Istanbul Paris London Prague Los Angeles Richmond Cooperations with International Lawyers Institutes International Auditors Agencies National Chambers Universities .

Unique Features of Koç Consulting We are: Independent and objective consulting company Unique aerospace & defence consulting company in Turkey Specialized on aerospace & defence industry supported by functional experts in strategy, technology, innovation management and operations Supporting management on strategy, organization, technologies, innovation and performance improvements Addressing all fields of the sector: military & civil aircrafts, satellites, launchers, missiles, defence systems and aerospace services Consulting along all the value chain worldwide: OEM, suppliers, service providers, satellite operators, maintenance & overhaul providers, airlines and governments Animating think-tank workgroups dedicated to aerospace & defence technologies Teaming up with selected cooperation partners International present with offices in Munich (Germany) and Ankara (Turkey)

Issues for discussion – Product Development Excellence Arthur D. Litte & Koç Consulting study on development organization - The "Organizational Fit Index" to describe the fit between R&D Organization and corporate strategy Study results – all industries Organizational Fit Index Remarks Significant potential in optimizing fit between strategy and organization No industry specific pattern No strategy specific pattern No regional pattern Governance: Project / Program / Product management Operational structure: Integration and validation processes Operational structure: Management of critical interfaces Organizational structure and network Governance: Resources and budgets 61% 56% 60% 54% 71% 59% Individual discussion of organization & strategy Learning from cross industry examples

Issues for discussion – Product Development Excellence Integrated verification management over the entire product life cycle addresses four levers for cost reduction & efficiency improvement *SOP: Start of Production SOP* actual plan 1. 1. Process- & Functional Frontloading 2. 2. Reshape working Modes in Development Networks 3. Optimize Prototyping Phase 4. 4. Improved Ramp up Costs Improved requirements management Reduction of complexity (E/E Architecture) Concept development including virtual verification Improved testing strategies Competence Manage-ment, Make or Buy Strategies Solution corridors as working mode in development networks Synchronize SW – HW development Performance contracting with engineering partners Reduction of late changes Reduce change requests Improve configuration & verification-management Improve system integration Updates & customization via software flashing Reduce scrap/ rework Warranty/ penalties Product life cycle 15% Reduction of total PLM costs Example Automotive 3.

Issues for discussion – Supply Chain Management The delivery of total care aircraft programmes and long term service agreements are changing the way aircraft companies deal with their customers From – Product To – Service Sell Product Finance / Leasing Maintenance & Parts Product driven model with after-market initiatives bolted-on to capture attractive margins Service driven model where ‘power’ is sold to the customer Acquire Retain Grow Supply Finance Maintenance New Services Maximise Service Contract Lifetime Profitability Make Design

Issues for discussion – Supply Chain Management ..and they are looking to capitalise on this wider level of customer interaction to build knowledge and create a learning organisation Maximise Service Contract Lifetime Profitability Acquire Retain Grow Targeted and tailored propositions Learning from customer interactions Customer Management Service Development Products Innovation Technology Capability Budgeting Internal R&D Deliver against tailored contract(s) Meet and exceed customer expectations efficiently and profitably Delivery Customers Performance against SLAs Profitability and pricing Engine condition monitoring Customer Dialogue Research Feedback

Issues for discussion – Sourcing As the top tier companies have sought scale they have increasingly focused on core competencies around platform assembly Primarily direct supply Many direct suppliers No real role for “integrators” Many “supply paths” Fewer, but still many direct suppliers Limited role for “integrators” Larger role for value-adding suppliers Fewer “ supply paths” Far fewer direct suppliers Extensive role for “integrators” Still larger role for value-adding parts suppliers Raw materials Make-to-print parts and assemblers Large-scale integration Platform assembly Small-scale integration Value-added parts and assemblies OEM’s System Integrators Past Present Future

Why we need System Integrators (some examples)?

Issues for discussion – Product Development Excellence Innovation Excellence is displayed those success factors, which are attributed only average importance Mehrumsatz mit neuen Produkten in %* 3 4 5 0% 5% 10% 15% 20% 25% 30% Mittlere Bedeutung Örtliche Zusammenlegung von Entwicklungsteams in kritischen Prozessphasen Gezielte Verbesserung der Projektmanagementfähigkeiten Branchenübergreifende Bedeutung des kritischen Erfolgsfaktors Sehr hohe Bedeutung Nach außen gerichtete Unternehmenskultur Meilensteinbasierter Produktentwicklungsprozess Strategische Make-or-Buy Entscheidungen Klare Trennung von Produkt und Technologieentwicklung Ausgeprägte Produkt- und/ oder Technologieplattformen Systematischer Prozess zur Generierung neuer Ideen Kreative Mitarbeiter Top 3 Erfolgsfaktoren Erfolgsvoraussetzungen

Issues for discussion – Product Development Excellence Innovation Excellence Study – Aerospace and defense industry as "Power Innovator" 0% 10% 20% 30% 40% 50% 60% 70% 1% 2% 3% 4% 5% 6% 7% 8% 9% 11% Bau und Bauzulieferer Chemie und Rohstoffe Elektrotechnik und Elektronik Konsumgüter und Lebensmittel Luft- und Raumfahrt Pharma Telekommunikation, Informationstechnik und Medien Anteil des F&E Budgets am Gesamtumsatz in %* Umsatzanteil mit in den letzten 5 Jahren neu eingeführten Produkten in %* Branchenübergreifender Durchschnitt Automobilhersteller und -zulieferer Maschinen- und Anlagenbau Effiziente Innovatoren Power Innovatoren Konservative Innovatoren Erfolglose Innovatoren

Aircraft Systems Weapon Systems Life Cycle for the German Air Forces 1970 1980 1990 2000 2010 2020 2030 2040 Development 1955! F-4 Follow-on Programs ? Production Operation and Upgrades Eurofighter Development Studies Manufacturing Tornado Time Now Aircraft Systems Weapon Systems Life Cycle for the German Air Forces

 85 % of LCC are determined Life Cycle Phases  85 % of LCC are determined Development Prototype Manufacturing, Flight Test Series-production Phase-out Ca. 5-10 Years > 20 Years > 35 Years Operation Upgrades, Variants Studies Conceptual Design Preliminary Design & Definition Predevelopment Development & Production

Consolidation of European Aerospace Industry 2007 British Aerospace Finmeccanica DASA Casa Saab TST Dornier MBB Aermacchi EFIM (Incl. Agusta) Aeritalia Selenia Alenia SIA Marchetti Bristol Hunting Hawker Siddeley Matra EADS Dassault Aérospatiale Gripen Export Consolidation of European Aerospace Industry Finmecanicca De Havilland

Development for increasingly difficult tasks: Strategic Reconnaissance (HALE / MALE) Tactical Reconnaissance (URAV) Attack of ground targets (UCAV). Air to Air combat Expected Development

All out war incl. nuclear weapons Thread Scenario Evolution 1940-2000 All out war incl. nuclear weapons High intensity conflicts Medium intensity border-crossing conflicts Internal up rise suppression, ethnic/religious turmoil Peace enforcement operations Terrorist/Guerrilla warfare Singular strikes Scenario analysis will result in military needs and definition of required enabling technology programs!

Space capabilities have become essential to military operations The importance of Military Space Utilisation is growing Space is a key contributor to National and International defense strategies: Achieve autonomous capacity in intelligence and information (Comint, Elint, Imint) Prevent attacks via early warning and missile defense Significantly enhance modern military operations across the spectrum through satellites capabilities Enable deterrence Implement space control Source: USAF - A Space Roadmap for the 21st Century Aerospace Force Space capabilities have become essential to military operations

Space dominance Space power Space utilisation Access To space Coms Surveillance Intelligence Control Protection Space utilisation Space power Space dominance Space denial Destruction Deterrence Satellite systems Launcher Exo vehicles Ground segment Military Space Utilisation

Potential Future Military Space Systems Military Telecom Programs Mid-term demand covered by dual use and commercial services provided to national MOD`s Long-term demand should lead to a dedicated fixed and mobile communications system Military Reconnaissance Programs Mid-term demand covered by military and dual-use satellites Long-term demand determined by new satellite systems EHR (Extreme High Resolution) identification Hyper spectral for target identification Advanced radar for all-weather/day & night wide swath reconnaissance Tactical reconnaissance Potential Programs For New Applications on demonstrator level ELINT/COMINT/SIGINT Early Warning Laser communication Military Navigation Applications

Savunma Sanayisinin İç Eko Sistemine Bakış (1) Türk Savunma sanayisi son yıllarda önemli gelişmeler kaydetmiştir Savunma sanayinin geliştirilmesine yönelik stratejilerin, kısa, orta ve uzun vade planlarının hazırlanmış ve uygulama sürecine geçildiği gözlenmektedir Savunma sektöründe faaliyet gösteren firmalarımızın belirlenen stratejiler doğrultusunda gerekli altyapı oluşturma çalışmalarında olumlu gelişmeler olmaktadır Milli Savunma sanayinin yurtiçinde oluşturulması ve geliştirilmesine yönelik uygun ortam oluşturma gayretlerinin olumlu ve sürekli bir artış trendi içerisinde olduğu dikkati çekmektedir İhtiyaçların yurtiçinden karşılama oranlarında artış gözlenmektedir ve 2012 yılına kadar bu oranın % 50 seviyelerine ulaşması hedeflenmektedir

Savunma Sanayisinin İç Eko Sistemine Bakış (1) Sadece yurtiçi pazar değil yurtdışı pazarlarda hedeflenmektedir Türk firmalarının yurtdışı pazarlardaki rekabet gücü her geçen yıl artmaktadır Teknoloji geliştirme faaliyetlerinin konsept oluşturma safhasının tamamlanmış olduğu ve uygulama safhasına geçildiği gözlenmektedir Türk firmaları, AR-GE kaynaklarını artırmaktadır, fakat bu artış uluslar arası standartlara göre düşüktür Yurtdışı AR-GE faaliyetlerine katılımım az olmaktadır Yurt dışında savunma sektöründe çalışmış, bilgi birikimi ve tecrübesi yüksek Türklerden yeteri derecede istifade edilememektedir

Savunma Sanayisinin Dış Eko Sistemine Bakış Savunma sektöründeki firmaların ürünlerinin yüksek teknoloji ürünler olması Firma rakabet güclerinin çok yüksek olması Büyük ölçekli savunma sanayii firmalarının dünya pazarının büyük bölümüne hakim olması Teknoloji geliştirme ve ürüne dönüştürmede lider pozisyonlarını korumaları AR-GE çalışmalarına çok büyük kaynaklar ayırmaları Know-how ve teknoloji transferine sıcak bakmamaları Teknoloji transferine devletlerin kısıtlama koyması Avrupa Ülkelerinde savunma bütçelerinde önemli oranda kısıtlamalara gidilmesi Ülkelerin ortak proje modelini benimsemeleri … gibi hususlar Türkiye’den bakıldığında göze çarpan dış ortam görüntüleri olarak bize yansımaktadır

Savunma Sanayisinin İç ve Dış Eko Sisteminin Geliştirilmesi Önerileri Gelişmeyi tetikleyecek en önemli faktör olan TEKNOLOJİ’yi üretmek Türkiye teknolojiyi kullanma aşamasını tamamlamış, Teknolojiyi üretme aşamasına gelmiştir AR-GE çalışmaları daha fazla desteklenmeli ve özendirilmelidir Tedarik projeleri yoluyla teknoloji transferinde titiz olunmalı ve ihtiyaç duyulan teknolojiler tam anlamıyla alınmalıdır Savunma sektöründeki firmaların AR-GE’ye ayrılan bütçelerini yükselterek teknoloji üretmeleri Yurtdışından teknoloji transferi sağlayacak tüm imkanlar kullanılmalı, Yurtdışında bilgi birikimi ve tecrübesi yüksek, iyi yetişmiş Türk insan kaynaklarından veya kuruluşlarından etkin olarak istifade edilmesi Savunma Bütçelerindeki kısıtlamalardan dolayı yurtdışı pazardaki daralma nedeniyle yabancı firmaların Türkiye pazarına girme çalışmalarından azami derecede istifade etme imkanını iyi kullanmalı Teknoloji transferi sağlayabilecek yurtdışı firmalarla işbirliği imkanları araştırılmalı, ortak AR-GE projeleri gerçekleştirme fırsatı yaratılmalı, ortaklıklar oluşturulmalı Türk firmalarının özgün ürün geliştirme ve üretmeye teşvik edilmeli, yönlendirilmeli

Teşekkürler Koc Consulting Innere Wiener Str. 11a D-81667 Munich Germany Telephone: +49 89 95 44 63 60 Telefax: +49 89 95 44 63 61 E-Mail: info@koc-consulting.de Internet: www.koc-consulting.de Teşekkürler Koç Consulting Ltd. Cyberpark, Cyberpark Plaza B Bilkent - Ankara Turkey Telephone: + 90 312 265 06 10 Telefax: + 90 312 265 06 12 E-Mail: info@koc-consulting.com Internet: www.koc-consulting.com