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

MBDA Italy perception of the overall context It became “usual” to assign to financial themes the sovereignty and capability issues in the current debate, even in fields related to public interests 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….” 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

MBDA Italy perception of the overall context The European Defense scenario should arise from a precise analysis of geopolitical matters as well as operative capabilities expressed by Military Forces National participation to the development of a European Defense project is also dependant on industrial capabilities Under this perspective and starting from current budget constraints, Italian MoD has to go beyond a simple cooperating declaration and show a concrete support to the debate A national rationalization of future operative requirements with resizing of products portfolio are necessary to achieve cost reduction, capabilities and sovereignty 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

MBDA Italy Vision MBDA Italy, part of the integrated international MBDA Group since 2001, is experimenting this difficult condition: without Agreement between Governments on new programs equally supported by financial contribution, it’s not enough to be part of an integrated company to work maintaining technology at the state of the art and supporting IT MoD for future capabilities where sovereignty is considered necessary A new “Partnership” model to approach Defense and Security is requested for both, Military Forces and the Defense Industry; In the next future the “Libro Bianco” results could be the answer to this need to define packages where a missile national company could contribute

MBDA Italy Vision : The Challenge Armed Forces SGD SMD Reduction in spend Purpose of Slide: To lay out in diagrammatic format the challenge the Complex Weapons sector faced at the start of the Team CW journey Key Messages: The Challenge set through the DIS is to meet the UK Military’s capability requirements, within the available budget, whilst retaining sovereign capability. Industrial sustainment provides Sovereign TLCM Greater flexibility to insert technology into weapon systems over time Ability to tailor solution to UK requirements (rather than just buy what is on offer from MOTS) Understand exactly what the weapon does (open access and understanding) Help make the CW sector portfolio affordable.

MBDA Italy vision: experience on UK Government - Industry approach to Defense As 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; In UK, e.g. it has been adopted the: Defense Growth Partnership Government and Industry Working Together

MBDA Italy vision: Partnership Model Overall Principles Long term arrangement using an MoD IT / MBDA Italy partnering approach to deliver the new MBDA Italy portfolio Requirements MoD Equipment Planning Assumptions Balanced pipeline responding to the planning assumptions Flexibility and agility to facilitate changing requirements Assurance of Operational Sovereignty Delivery of measured efficiency benefits Delivery of additional benefits through maturing of partnering arrangement Key Enablers Collaborative Relationship with Transparency Commitment to Long Term bilateral relationship Exportability and International Collaboration

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 Purpose of Slide To lay out the ten Key Principles which are guiding the delivery of Team CW Key Messages Individuals working within the organisations who form Team CW ought to recognise the above principles and how important their application is in supporting the delivery of the Team CW vision.

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.

Evolution of Capability - BMD Air Defense Current Situation Evolution 2018 Capability BMC4I MFCR MEADS (IOC and FOC) End of development and acquisition GE/IT/(PL) - USA MEADS PoC (Proof of Concept) Development Entry Level ATBM (Anti Tactical Ballistic Missile) Capability ELAC PAAMS/Aster 30 B1 ELAC SAAM ESD/Aster 30 B1 PAAMS /Aster 30 (Horizon) SAAM ESD / Aster 30 (FREEM) SAMP/T / Aster 30 B1 (Aster 30 B1NT for FOC (Full Operational Capability) PAAMS and SAAM ESD) SAMP/T (current)/Aster 30 B1 Development FR / IT Aster B1 NT

Evolution of capability - Shorad Air Defense ASPIDE Missile SPADA ATL / ASPIDE Skygard / ASPIDE ASPIDE Evolved ESHORAD / ASPIDE Evolved Development SIRIUS and ESHORAD Skygard / ASPIDE Evolved ASPIDE Evolved Integration Albatros / ASPIDE Albatros NG/ Aspide Evolved ASPIDE Evolved Integration for future Ships Development UK /IT ASPIDE Evolved * Current Situation Evolution 2018 Capability * Aspide Evolved, CAAM ER in UK, will be integrated in UK Shorad “FLAADS Land” system renamed “ESHORAD” also for UK

CONCLUSION : OUR INDUSTRIAL STRATEGY VISION Taking a fresh and ambitious approach through a: Joint commitment from Government and Defense Industry to work together to develop new opportunities by Building on our nation’s strengths in air power capabilities and deliver growth through Innovative and tailored solutions for Customers around the globe Partnering – Principle for Successful Delivery

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MBDA Team CW Battlespace Weapon System Missile Network Network Precision Effects

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 con 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/sotto-sistemi fino a livello di componente Identificazione ed utilizzo di tecnologie innovative orientate alla competitività Riuso delle tecnologie per diverse applicazioni militari, nonché dualità