MBDA Italia vision of the National Air Defense

MBDA Italia vision of the National Air Defense through the Missile Systems’ Sustainability Plan Guido Lami - MBDA GROUP DIRECTOR ENGINEERING & SEEKERS AIR POWER: FROM MOST RECENT OPERATIONS TO FUTURE DEVELOPMENTS CASD, MARCH 20 -21, 2014 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

MBDA Italy perception of the overall context üIt became “usual” to assign to financial themes the sovereignty and capability issues in the current debate, even in fields related to public interests ü Our Minister of Defense declared to the Parliament last March 12: “In the last years, we European have became experts about spread, bond and other measures against financial crisis, decreasing our attention to security dimension…. ” ü Thus also Defense and Security matters are subject to such a financial crisis, that sometimes produces an impact toward “think national” also where international cooperation are well consolidated with structural cooperative programs, economic recession reinforces discrepancies pushing the system to support national interests Réf. : - Page 2 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

MBDA Italy perception of the overall context ü The European Defense scenario should arise from a precise analysis of geopolitical matters as well as operative capabilities expressed by Military Forces ü National participation to the development of a European Defense project is also dependant on industrial capabilities ü Under this perspective and starting from current budget constraints, Italian Mo. D has to go beyond a simple cooperating declaration and show a concrete support to the debate ü A national rationalization of future operative requirements with resizing of products portfolio are necessary to achieve cost reduction, capabilities and sovereignty ü To adhere to a European Model without a national plan supported by relevant stakeholder could represent a major risk A new model already exists in FR and UK (Lancaster Treaties) and together with their better economic general condition could lead Italy and its industry at a secondary role Réf. : - Page 3 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

MBDA Italy Vision üMBDA Italy, part of the integrated international MBDA Group since 2001, is experimenting this difficult condition: Øwithout Agreement between Governments on new programs equally supported by financial contribution, Øit’s not enough to be part of an integrated company to work maintaining technology at the state of the art and supporting IT Mo. D for future capabilities where sovereignty is considered necessary üA new “Partnership” model to approach Defense and Security is requested for both, Military Forces and the Defense Industry; üIn the next future the “Libro Bianco” results could be the answer to this need to define packages where a missile national company could contribute Réf. : - Page 4 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

MBDA Italy Vision : The Challenge IT Armed Forces Reduction in spend SGD SMD IT Réf. : - Page 5 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

MBDA Italy vision: experience on UK Government - Industry approach to Defense üAs part of a French-English -Italian integrated company, MBDA It is in the position to see directly some development related to the relationship between Defense Industry and Military Authorities; üIn UK, e. g. it has been adopted the: Defense Growth Partnership Government and Industry Working Together Réf. : - Page 6 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

MBDA Italy vision: Partnership Model Overall Principles ü Long term arrangement using an Mo. D IT / MBDA Italy partnering approach to deliver the new MBDA Italy portfolio ü Requirements Ø Mo. D Equipment Planning Assumptions Ø Balanced pipeline responding to the planning assumptions Ø Flexibility and agility to facilitate changing requirements Ø Assurance of Operational Sovereignty Ø Delivery of measured efficiency benefits Ø Delivery of additional benefits through maturing of partnering arrangement ü Key Enablers Ø Collaborative Relationship with Transparency Ø Commitment to Long Term bilateral relationship Ø Exportability and International Collaboration Réf. : - Page 7 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

MBDA Italy Vision - Partnership Model 10 Key Principles • • • Faster "Time to Theatre" - Capability not just Equipment Commonality, Modularity and Technology Insertion - Through Life Cost Effective Platform Integration Flexible and Agile Project and Commercial Management Best use of Full Supply Network - Technology, Cost, Risk Innovation at all levels - Business and Technical Collaborative Behaviours and Mutual Trust Open Communication and Transparency Building Confidence through "Steps of Success" Strong and Joint Leadership with Team Approach Réf. : - Page 8 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

Evolution of capability - Air Defense Next charts show two examples of Italian missile (missiles, systems, platforms) asset/capability ( BMD e Shorad ) currently operative and their expected probable evolution in MBDA Italy view based on: • • Military Forces Operative requirements known today ; Standardization and reuse of products and solutions already in service and/or in the development phase, resolution of obsolescence; • Launch of intergovernmental agreements at European level in order to share projects with the related development cost and the export returns; • • Budget/Balance constraints respect; Preserving technological and industrial capabilities to support national sovereignty. Réf. : - Page 9 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

Evolution of Capability - BMD Air Defense Current Situation Evolution MFCR MEADS Po. C (Proof of Concept) 2018 Capability BMC 4 I End of development and acquisition GE/IT/(PL) - USA Development Entry Level ATBM (Anti Tactical Ballistic Missile) Capability MEADS (IOC and FOC) ELAC PAAMS/Aster 30 B 1 ELAC SAAM ESD/Aster 30 B 1 PAAMS /Aster 30 (Horizon) SAAM ESD / Aster 30 (FREEM) SAMP/T / Aster 30 B 1 Development FR / IT Aster B 1 NT Réf. : - Page 10 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011. (Aster 30 B 1 NT for FOC (Full Operational Capability) PAAMS and SAAM ESD) SAMP/T (current)/Aster 30 B 1

Evolution of capability - Shorad Air Defense Current Situation ASPIDE Missile Evolution 2018 Capability Development UK /IT ASPIDE Evolved * ASPIDE Evolved Development SIRIUS and ESHORAD / ASPIDE Evolved Integration Skygard / ASPIDE Evolved Integration for future Ships Albatros NG/ Aspide Evolved SPADA ATL / ASPIDE Skygard / ASPIDE Albatros / ASPIDE * Aspide Evolved, CAAM ER in UK, will be integrated in UK Shorad “FLAADS Land” system renamed “ESHORAD” also for UK Réf. : - Page 11 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

CONCLUSION : OUR INDUSTRIAL STRATEGY VISION Taking a fresh and ambitious approach through a: ü Joint commitment from Government and Defense Industry to work together to develop new opportunities by ü Building on our nation’s strengths in air power capabilities and deliver growth through ü Innovative and tailored solutions for Customers around the globe Partnering – Principle for Successful Delivery Réf. : - Page 12 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

• Back UP slides Réf. : - Page 13 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

MBDA Battlespace Network Weapon System Team CW Network Missile Precision Effects Réf. : - Page 14 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

Réf. : - Page 15 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.

Approccio Top-down per la definizione della Strategia R&T • • • Mantenimento e acquisizione di nuove Capacità Operative Militari da parte dei Clienti, Italia in priorità ma anche FR/UK/GE ed export conseguente definizione della strategia R&T Evoluzione e Sviluppo di nuovi Prodotti funzionali alle Capacità Operative (Sistemi d’Arma oggi, Servizi in futuro) Concezione, Definizione e Sviluppo di dimostratori dei Sottosistemi e Equipaggiamenti Individuazione e Maturazione delle Tecnologie Rivestono fondamentale importanza per lo sviluppo delle nuove capacità i concetti di : • • • Analisi dei Competitor Riduzione dei costi durante tutto il ciclo di vita dei prodotto (should cost e target cost) Modularità e ri-uso dei sistemi/sottosistemi fino a livello di componente Identificazione ed utilizzo di tecnologie innovative orientate alla competitività Riuso delle tecnologie per diverse applicazioni militari, nonché dualità Réf. : - Page 16 Il documento e le informazioni contenute sono di proprietà di MBDA e non devono essere divulgate a terzi o riprodotte senza autorizzazione di MBDA. © MBDA 2011. This document and the information contained herein is proprietary information of MBDA and shall not be disclosed or reproduced without the prior authorization of MBDA. ã MBDA 2011.