VDL Groep. Strength through Co-operation. VDL Defence Technologies

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2 VDL Groep Strength through Co-operation VDL Defence Technologies

3 Contents VDL Groep Benefits from offset with RUAG Defence VDL Defence Technologies 3 6 juni 2012 VDL Defence Technologies

4 VDL Groep Establishment in 1953 of Metaalindustrie en Constructiewerkplaats. Mr. P. Van Der Leegte laid the basis for the current VDL Groep. Growth through targeted acquisition, initially in the supply sector and since 1990 s in buses and finished products 80 companies in 16 countries Export 70% 785,000 m² production area 7,500 employees 4 6 juni 2012 VDL Defence Technologies

5 VDL Groep VDL Groep Subcontracting - Metalworking - Part and sheet metal - Mechatronic systems - Module assembly - Plastics processing - Surface treatment Buses & Coaches - Chassis modules - Coaches - Public transport buses - Mini & midi buses - Second-hand buses Finished products - Suspension systems - Heat exchangers - Production automation - Agricultural sector - Container handling - Packaging machines - Systems industrial sector 5 6 juni 2012 VDL Defence Technologies

6 Benefits from offset for VDL Defence Technologies 1. Market diversification 2. Non cyclic 3. Niche Market 4. Engineering (example AEV 3 driver seat) 5. Working with RUAG VDL Defence Technologies

7 Benefits from offset for VDL Defence Technologies 1. Market diversification Entering the defence market was a welcome addition to our existing market spread. Synergies with our existing markets, being medical, printing, solar and semi-conductor exist. Way of working and the requirement of certified processes are similar VDL Defence Technologies

8 Benefits from offset for VDL Defence Technologies 2. Non cyclic The defence market is non cyclic and is project driven. This is an excellent addition to our existing volatile markets being mainly semi-conductor driven VDL Defence Technologies

9 Benefits from offset for VDL Defence Technologies 3. Niche Market This market is strongly regulated and certified. Products and processes are very specific. The European market volume is decreasing. This creates a threshold for newcomers. VDL took the challenge and grew in this market. We are now the No. 1 supplying company of armoured steel products from the Netherlands VDL Defence Technologies

10 Benefits from offset for VDL Defence Technologies 4. Engineering Defining the boundaries and setting up procedures Strengthening the engineering strength at both sides Out-of-box thinking (civil >< military) Both at VDL and on-site engineering at RUAG s We brought Design-for-production and Design-for- assembly VDL Defence Technologies

11 Benefits from offset for VDL Defence Technologies Start of co-operation: 2007 Offset work for AEV 3 We were elected out of many dutch competitors Example: Driver seat The start was development and engineering based upon a project plan for this build-to-spec order VDL Defence Technologies

12 Benefits from offset for VDL Defence Technologies Approach of the Project The project plan clearly defined the scope of work Project teams on both sides were established Communication rules were defined (way of reporting, frequencies of meetings, escalation, etc) Design review milestones were defined (11 design reviews) Informing MEA of benefits for VDL VDL Defence Technologies

13 Benefits from offset for VDL Defence Technologies Challenges during project: At first fear of cold water Many changes Engineering activities on/off track? Takes a long time VDL Defence Technologies

14 Benefits from offset for VDL Defence Technologies Why was is a success? Project requirements by RUAG Excellent project management Engineering on site at customer Good fit between RUAG and VDL VDL Defence Technologies

15 The different phases in the design, engineering and manufacturing Requirements defined Volume claims defined VDL Defence Technologies

16 The different phases in the design, engineering and manufacturing Volume claims defined VDL Defence Technologies

17 The different phases in the design, engineering and manufacturing Requirements defined VDL Defence Technologies

18 The different phases in the design, engineering and manufacturing 2009 Final design VDL Defence Technologies

19 The different phases in the design, engineering and manufacturing Serial Production VDL Defence Technologies

20 The different phases in the design, engineering and manufacturing 2010 Final design VDL Defence Technologies

21 The different phases in the design, engineering and manufacturing Serial Production VDL Defence Technologies

22 Benefits from off set for VDL Defence Technologies Working with RUAG Defence People do the work in this partnership. No language barriers. Similar mentality (Swiss-Dutch and RUAG-VDL) Partnership has deepened over the years and more mutual projects have started VDL Defence Technologies

23 Who is VDL Defence Technologies? Specialized in engineering, production and assembly of military, components, assemblies and systems for military land systems: Mechanics, hydraulics, pneumatics, electronics and controls Single point of contact Proven track record Engineering (conceptual and detail) - All current systems, e.g. Solid Works, UG, Catia - Also at customer in native systems Certified processing of armoured steel Assembly / System supply Maintenance VDL Defence Technologies

24 VDL Defence Technologies Organization Capabilities Project management Supply chain management Quality management Development, engineering and prototyping Production: - Systems (Mechanics, hydraulics, pneumatics, electronics and controls) - (Sub)assemblies - Components Testing Installation / maintenance / after sales VDL Defence Technologies

25 Quality certifications Organization ISO 9001 ISO AQAP (working according to) 2110 Development & Design 2120 Production 2130 Inspection & tests AS9100B/C ABDO 2006 Production & Processing ISO 1090 ISO TL for bending TL for cutting TL for welding (as of summer 2012) Customer specific welding certifications 25 VDL Defence Technologies

26 Quality certifications BWB Germany Laserschneiden certification BWB Biegezulassung certification BWB

27 Quality certifications Welding ISO BWB DIN 2303 Q2 and Q3 Expected summer

28 AEV 3 Project Kodiak

29 AEV 3 Project Kodiak VDL Defence Technologies

30 AEV 3 Project Kodiak VDL Defence Technologies

31 AEV 3 Project Kodiak VDL Defence Technologies

32 Water jet cutting and milling of armoured steel Sheet metal VDL Defence Technologies

33 Contact VDL Defence Technologies Land Systems Paul Malcontent Brandevoortse Dreef DG Helmond The Netherlands Phone +31 (0) Mobile +31 (0) p.malcontent@vdldefencetechnologies.nl VDL Defence Technologies

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