EADS Procurement Talent Management Maria Granero EADS Defence & Security Head of Procurement Projects, Spend Map & Reporting Archamps, 07/12/07

Page 2 EADS at a Glance: A Global Leader No. 3 No. 4 No. 2 No. 1 Commercial Aircraft Helicopters Commercial Launch Vehicles Missile Systems Satellites Military Transport Military Air Systems No. 1

Page 3 Chairman of the Board of Directors Jussi Itävuori Human Resources Hans-Peter Ring Finance Marwan Lahoud Strategy & Marketing Jean J. Botti Chief Technical Officer Ralph D. Crosby Jr. EADS North America Fabrice Brégier Operational Performance Rüdiger Grube Chief Executive Officer Louis Gallois Lutz Bertling Eurocopter Carlos Suárez Military Transport Aircraft François Auque EADS Astrium Tom Enders (CEO) Fabrice Brégier (COO) Airbus Stefan Zoller Defence & Security EADS Management Structure

Page 4 EADS Revenues by Divisions as of March 07 By Division Revenues in million € *ATR, EADS EFW, EADS Socata, EADS Sogerma Services Headquarters Consolidation Other Businesses* Airbus Military Transport Aircraft Defence & Security Astrium Eurocopter Total EADS

Page 5 EADS Procurement EADS PDB Procurement Directors Board CPO Council Chief Procurement Officers Airbus Defence & Security Eurocopter Astrium Military Transport Aircraft Military Air Systems Defence & Communication Systems Defence Electronics MBDA Test & Services ATR EFW Socata Sogerma HQs Procurement & Services EADS DivisionsEADS Business Units Organisation

Page 6 EADS Procurement Talent Management 1) Definition of profiles 2) Skills assessment 3) Identification of gaps 4) Corrective initiatives 5) Monitor effectiveness Definition of profiles at Procurement functions according to job descriptions Skills assessment as part of annual skills assessment or employee job review Compare results of annual skills assessment to defined profiles Definition of training programmes and selected corrective initiatives Regular review of the effectiveness of training programmes and initiatives Process

Page 7 EADS Procurement Talent Management 1) Definition of profiles 2) Skills assessment 3) Identification of gaps 4) Corrective initiatives 5) Monitor effectiveness Definition of profiles at Procurement functions according to job descriptions Process

Page 8 1) Definition of profiles Definition of profiles according to job descriptions EADS Procurement population in 2006 was employees. Strategic SourcingProcurementPurchasing Director Head of department Senior Manager Manager Staff Support functions 1) 2)3) 4)5)6) 7)8) 9)10)11) 12) EADS Corporate Sourcing Focus EADS Divisions & Business Units Focus

Page 9 1) Definition of profiles Management Skills Professional Skills Head of DepartmentSenior Manager 100 % 0 % Management Skills Professional Skills Management Skills Professional Skills Procurement Director Relation between General Management and Professional Skills

Page 10 EADS Procurement Talent Management 1) Definition of profiles 2) Skills assessment 3) Identification of gaps 4) Corrective initiatives 5) Monitor effectiveness Process Skills assessment as part of annual skills assessment or employee job review

Page 11 2) Skills assessment Required Management Skills Profile Management Skills 2/3

Page 12 2) Skills asessment Professional Skills 1/3 Required Procurement Skills Profile

Page 13 EADS Procurement Talent Management 1) Definition of profiles 2) Skills assessment 3) Identification of gaps 4) Corrective initiatives 5) Monitor effectiveness Process Compare results of annual skills assessment to defined profiles

Page 14 3) Identification of gaps Conclusions: Strengths: Results orientation, Expertise and Customer orientation Development needs: - Senior Managers: Diversity management and People leadership - Executives: People leadership Analysis shows very few Executive potentials for Procurement functions: Succession Planning in procurement function is an issue! Current Management Skills Profiles in Procurement

Page 15 EADS Procurement Talent Management 1) Definition of profiles 2) Skills assessment 3) Identification of gaps 4) Corrective initiatives 5) Monitor effectiveness Process Definition of training programmes and selected corrective initiatives

Page 16 4) Corrective initiatives Objective Prepare procurement managers with potential for future sourcing challenges: - Improve the capacity to understand and implement strategic sourcing issues, - Increase awareness of state-of-art sourcing methods & tools, - Develop and promote exchange of best practices accross Business Units. Target population (180 participants ~7% of total procurement population) - EADS Managers with potential or recently nominated Senior Managers (25 participants per edition), - Participants from EADS top suppliers (5 participants per edition). Frequency - Yearly (10 training days) with currently closing 6th edition of programme. Managers - Procurement Managers Development Programme

Page 17 4) Corrective initiatives Content - Sourcing strategy: commodity strategy, future trends, global sourcing, - Sourcing tools: Supplier evaluation, eSourcing, sourcing risk management, - Sourcing practices: legal aspects in procurement, TCO, KPIs, - Visits to EADS procurement departments & external companies presentations. Best practice projects - Participants work in groups in selected best practice projects, - Final presentation of results and recommendations to EADS CPO Council. Organisation - Organised together with EADS Corporate Business Academy, - Participants nominated and selected by Procurement Directors & BUs HR. Managers - Procurement Managers Development Programme

Page 18 4) Corrective initiatives Professional training Yearly training with the objective to support EADS Lead Buyers in the areas of: - Commodity strategies, - Supplier risk assessment, - Global sourcing. Personal training Yearly training with the objective to support EADS Lead Buyers in the areas of: - Change management, - Project management, - Virtual and remote team management. Collaborative tool - Introduction of a collaborative tool (based in eRoom technology) to support Procurement Synergy Groups. Lead Buyers - Support: Training & Collaborative tool

Page 19 4) Corrective initiatives Objective Scope of responsibilities has grown. To meet future challenges, it is required: - Change Management, - Excellence in Leadership & People Management, - Intercultural Competencies. Target population (28 participants) - Senior Managers reporting to Procurement Directors, - High Performers with potential for promotion, - Selected and nominated by Procurement Directors and Business Units HR. Frequency - 1 time programme in 2005 to closed the skills gap, - Following years integrated into Corporate Business Academy programmes. Senior Managers - Procurement for Procurement

Page 20 4) Corrective initiatives Objective Enhance mobility within EADS Group, functions and locations through the exchange of information regarding: open positions, potential candidates and preparation of succession plans. Target population Executives & Senior Managers below Procurement Director level. Frequency - 1 Round yearly for Executives, - 2 Rounds yearly for Senior Managers. - Organised from 2005 to Organisation - EADS Management Development and EADS Corporate Sourcing. Executives & Senior Managers - Procurement job rotation

Page 21 EADS Procurement Talent Management 1) Definition of profiles 2) Skills assessment 3) Identification of gaps 4) Corrective initiatives 5) Monitor effectiveness Process Regular review of the effectiveness of training programmes and initiatives

Page 22 5) Monitor effectiveness How much did the PMDP supported you to …? PMDP Participants Survey Results Procurement Managers Development Programme

Page 23 5) Monitor effectiveness PMDP Participants Survey Results Procurement Managers Development Programme Conclusions: Programme supported the career development of participants: - To develop strategic understanding of sourcing challenges, - To think globally about EADS businesses, - To exchange practices with other Business Units.

Page 24 EADS Key Performance Indicators 5) Monitor effectiveness

Page 25 Conclusions Support the development of the procurement function from operational to more strategic role and activities, Update procurement employees toolbox to ensure continuous cost reduction and demand management achievements, Adapt to supply market changes (e.g. global sourcing, e-procurement), Address every procurement community according to their different needs, Involve the supply base, in order to address together the challenges related to procurement Increased attractiveness of the procurement function