ANNUAL REPORT 2011 AERNNOVA GROUP

index

1. 2. 3. 4. 5. 6. 6.1. 6.2. 6.3. 7. 8.

LETTER FROM THE CHAIRMAN EXECUTIVE COMMITTEE SHAREHOLDING STRUCTURE PROGRAMS GLOBAL FOOTPRINT 2011 MILESTONES Programs Engineering, R&D and Product Support Services Customers Acknowledgements in 2011 CORPORATE SOCIAL RESPONSIBILITY KEY FIGURES

6 8 9 10 12 14 14 24 29 30 36

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group

Aernnova is a Tier 1 global supplier of complex aircraft structures for the main OEMs. Our capabilities enable us to assume full responsibility for the programs, including conceptual design phase and detail design prototype manufacture, the testing and certification processes, serial production and, finally, after sales service. We can also address each of these activities individually adapting to the needs of our customers.

Aerostructure production covers a wide range of products that can be classified into the following families: Wings, Fuselages, Stabilizers, Control Surfaces, Nacelles and Fairings, among others.

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Iaki Lpez Gandasegui Chairman, President & CEO

Since Aernnova set out on its own as an aeronautical company (...) turnover has grown by 50% and workforce by 40% and we are now a key supplier for the main aircraft manufacturing OEMs. 2011 has been a year of business recovery for Aernnova as year-end turnover stood at 476 m and the company reached the 4122 employees. The first composite components for the horizontal stabiliser of the new Airbus A350 were delivered in 2011, as was the composite Central Wing Box of the new Bombardier C-Series.

1. letter from the chairman

In a context of economic downturn in Europe and slower growth of global economy, the aeronautical industry grew more than 4%. Orders almost doubled to close the year with a pipeline equivalent to 8 years business for the sector as a whole. Asia/Pacific and the Middle Eastern countries now account for 50% of the industry's demand. Going forward, this will have an impact on production globalisation trends. 2011 has been a year of business recovery for Aernnova, with turnover back up to pre-crisis levels at the close of the year. Yearend turnover stood at 476 m and the company reached the 4122 employees. This performance confirms the Aernnova strategy of pushing forward international expansion to underpin domestic business, hence driving both local and international employment. The recovery has been accompanied by qualitative improvements in our products and in our production capabilities. The first composite components for the horizontal stabiliser of the new Airbus A350 were delivered in 2011, as was the composite Central Wing Box of the new Bombardier C-Series. Our participation in these two aircraft places us on the cutting edge of aeronautical aerostructure engineering and manufacturing. These developments are the result of our R&D activities, which include the new programmes as well as fundamental research work. There are many programmes in this field that Aernnova has participated in both nationally and Europe-wide, including the Clean Sky programme. All these activities form part of the company's Technology Development Plan, with an annual average investment of 15% of total turnover. Aernnovas international expansion is advancing with major business growth in its new facilities in Mexico (Queretaro), the United States (Ann Arbor, Michigan) and Romania (Brasov). We have recently opened an engineering hub in India (Bangalore) and in the future, we will continue to enhance our overseas positioning in all our business activities. It is now five years since Aernnova set out on its own as an aeronautical company. In this short time, and in the middle of an economic downturn that has affected the whole developed world, we have managed to consolidate our position as a first-level supplier to the aeronautical sector. Turnover has grown by 50% and workforce by 40% and we are now a key supplier for the main aircraft manufacturing OEMs. Our management capacity has enabled us to expand internationally, a key factor in making us even more competitive, while the deep entrepreneurial culture shared by everyone involved in this project has given us an outstanding market position at the leading edge of the world aeronautical industry.

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2. executive committee

Iaki Lpez Gandsegui Chairman, President & CEO

Javier del Molino Lpez Chief Financial Officer

Pedro Fuente Arce COO Programs & Business Development

Jos Alvarez Gonzlez EVP & General Manager Aernnova Composites

Gonzalo Furrundarena Larrinaga EVP & General Manager Aerometallic Components

Enrique Palomino Bilbao EVP & General Manager Aernnova Engineering

Joseba Prez Trulls EVP & General Manager Operations

Strategic Committee

3. shareholding structure

Management

CCMC

Banco Espirito Santo Group

EBN BANCO

29 %

34 %

26 %

11 %

SYNERGY

100 %

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4. Programs

Design & Build

A350 AIRBUS
Horizontal Stabilizer Components: Spars, Ribs, Skins, Fittings (Final Assembly made by Airbus Spain) Elevators Bulkhead for MLG Bay

A380 AIRBUS

Rear Fuselage - Section 19 Internal Metallic Structure, including attachment fittings to Vertical Stabilizer. Horizontal Stabilizer: Leading Edges, Trailing Edges and Box Joint.

ERJ 145 EMBRAER

Complete Wing (Metallic & Composites)

170-190 EMBRAER

Complete Rear Fuselage and Empennage

KC-390 EMBRAER

Flaps Ailerons Rudder

CRJ 900-1000 BOMBARDIER

Horizontal Stabilizer. Vertical Stabilizer. Elevators Bullet Fairing Systems provisions: Electric, Hydraulics, Actuation.

CSeries BOMBARDIER

Center Wing Box (composite) Tailcone

S-92/H-92 SIKORSKY

Rear Fuselage / Aft Transition Tailcone. Horizontal Stabilizer. Engine Cowlings Main Rotor Fairings Systems: Electric, Hydraulics, Actuation.

Build to Print
Elevators Assy Main Landing Gear Doors Assy Horizontal Stabilizer Spars Fuselage Section 18 Covers Interior dado panels

A320 AIRBUS

Main Landing Gear Doors Assy Elevator Components Karman Fairings

A330/A340 AIRBUS

Horizontal Stabilizer. Vertical Stabilizer. Elevators Bullet Fairing Systems provisions: Electric, Hydraulics, Actuation.

CRJ 700 BOMBARDIER

Fully Equipped Wings

HAWKER BEECHCRAFT

Complete Rear Fuselage Assy Fwd Fuselage Components

NH90 AGUSTA WESTLAND

Tailboom Lower Fuselage Structure

29 H/S SUPERPUMA YKS ROKIS MKII AS332 EUROCOPTER

Design to Build
Design Engineering and analysis of the complete Swing Zone. Support to the manufacturing engineering

747-LCF BOEING

Design Engineering and analysis of the Section 42 as well as sections 11 and 12 of the wing for the versions of Freighter and Intercontinental

747-8 BOEING

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U.K. E SPAIN A C E

USA E

ROMANIA E INDIA E

CHINA D

MEXICO A M E

BRAZIL A E E

A C E E D I M

Major Assemblies Composites Product and Systems Engineering (AED)* Manufacturing Engineering (AME**-SERRA) Dedicated Projects Product Support Services (IKARUS) Metallic Components (AEROMETALLIC)
*AERNNOVA ENGINEERING DIVISION **AERNNOVA MANUFACTURING ENGINEERING

5. Global Footprint

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6. Milestones 2011 6.1 Programs

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Airbus A350
The A350 XWB Programme is the company's major challenge in 2011 with the different core activities taking an active part on it.

Elevator, Airbus A350

Aernnova's Product Engineering, in the context of the development of the Horizontal Stabiliser (HTP) and the Elevators, validated the maturity of the design and the configuration of the first airplane for flight test instrumentation (FTI) by doing most of the detail drawings of the different composite and metal parts. It is particularly remarkable, the HTP design innovations, new to Airbus aircraft, which not only led to a lighter design but also to a simplification in the HTP maintenance programme. The innovation consisted of a redesign of the catching of rudder actuators, which apply the force necessary to deflect the elevator over the structure. Moreover, it was sized and the load paths modified, so the internal metal fittings could be removed to provide a simpler aerostructure, less weight and a reduction of internal inspections from the aircraft maintenance programs. This concept has been developed with state-of-the-art means (with non-linear finite element model simulation) and has been validated in real trials in which the desired behaviour hypotheses have been confirmed.

Regarding tooling used in the manufacture and assembly, with a total of over 900, they have been made by Aernnova group's Manufacturing Engineering capacities and capabilities in the AME-SERRA centres in Spain and Romania. Such a process has had the support of a panel of certified multinational suppliers, working to the very highest standards of quality and competitiveness, using a range of different technologies and materials (steel, invar aluminium, etc.) These tools have been developed for use in new technologies such as RTM and ATL. The Romanian tooling plant has made a significant contribution to this achievement since it was set up and went into industrial operation in 2011. On the other hand, in the area of Engineering, 2011 marked the start of our collaboration with General Electric Aviation to provide support for the detailed design and structural analysis of the Wing Trailing Edge for the Airbus A350 XWB. The A350 has also involved specific new challenges in the area of Aerostructure Assembly. The first challenge lies in the use of composite fabrics made in ATL. Both the

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spars and the skin have different characteristics from traditional composite, and the cutting tools perform differently too. This led us to conduct a series of trials to identify the best possible cutting tool compatible with this material and to select the optimal parameters. These required our staff to qualify in over 20 special processes, under the customer's new regulations, placing us among Airbus' most qualified aerostructure suppliers. Another innovative development in Assembly, was implemented in the A350 Elevator and Rudder programs: the process of line reaming hinge fittings. In earlier products, the concept of obtaining the hinge line involved

fittings with a final diameter which were then shimmed to achieve alignment. This process in addition to obtaining a much lower accuracy in the final position of the hinge line was very costly to the assembly line because of the adjustments necessary to leave the piece within tolerances. A new operational method has been developed for the A350. Basically, the product is installed in a totally free position, without any pressure coming to bear on any particular tool. In this position, the fittings are then milled and reamed to create the hinge line that is guaranteed to be accurate. The tolerances that we have had to guarantee

in the tool itself have led us to implement a laser tracking measuring and positioning method quite different to the conventional one. We have also had to develop specific cutting tools that are not used on any other Aernnova Aerostructure assembly line, with special guidance systems and cutting conditions that have been adapted to the application. This new process eliminates the need for master gages, which were previously required to ensure co-ordination between the different assembly tooling lines. The first attempts to make the Elevator were successful, and the customer congratulated Aernnova for a successful installation of our assembly.

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Bombardier CSeries
Since the contract was signed in 2009, Aernnova has been involved in developing and manufacturing the Central Wing Box for the Bombardier CSeries. This work package includes latest generation composite materials production processes to which we bring our product design and manufacturing know-how.

Composite Central Wing Box, Bombardier CSeries

During 2011, we successfully accomplished Central Wing Box (CWB) first delivery after addressing some major challenges described below: The first of these was to develop the right cutting tool for drilling holes up to two and three times larger in diameter than usual and in packages made up of different materials such as titanium, aluminium and ATL composite. Therefore, the drilling characteristics of packages made out of these materials and over one inch thick are completely different from usual ones. The materials are highly abrasive and have different properties, so the progress and cutting speeds will differ in each one. We were therefore forced to develop a specific tool for this application, which also had to meet quality and cost parameters such as wear on the tool and minimum time for each drill. Aernnovas AME-SERRA manufacturing engineering provided over three hundred tools of different technologies and materials for the CWB manufacturing with in the CSeries program. Work also started on the concurrent engineering and on the design of manufacturing tooling in composite material for the Tail Cone, with delivery scheduled for 2012.

Another of the challenges we faced with the CWB was that the job took place inside a closed box, which we had to ensure was hermetically sealed as it is also used as a fuel tank. For that purpose, during the design phase, we had to define four accesses to the box, instead of the 2 initially planned, and make them compatible. Moreover, we produced specific auxiliary components in house, to be able to work inside the CWB. The results have been excellent and we have managed to hermetically seal the product at the first attempt. We signed a new contract this year, for the design, development, certification and manufacture of the Tail Cone for at least 40 aircraft.

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Hawker Beechcraft (King Air, Bonanza y Premier I)

HBC has trusted in Aernnova Mexico as a single supplier of Wings. The contract signed between the two companies also includes transferring the manufacture of all the components, which not only increases the scope of the contract, but also the chance to establish ourselves among the top players in key civil and business aircraft markets, such as USA and Canada.

Aernnova Mexico

The challenges overcome during 2011 were: The first wings were delivered for the King Air, Bonanza and Premier I aircraft, with a total of 60. In just one year, six wing types were industrialised and production rates of 17 wings per month were obtained. The transfer and industrialisation process started with a team of engineers and production operators who studied the production process in Salina (Kansas) for over 9 months and then transformed it into assembly manuals that will be the foundation for the first assembly operations in Queretaro. Afterwards, dozens of tools were then transferred, 150 operators and dozens of engineers were recruited and trained. As soon as the first products were manufactured we immediately achieved the production rates required by the customer. As assembly was transferred, work started on the complex task of transferring the components that had until then been manufactured in-house by HBC. Thousands of parts needed to be transferred to our supplier base in Mexico and to do this, we had to develop a new Supply Chain area in AAM recruiting 30 people.

It was an exciting year, full of challenges successfully addressed by team work and the support of staff in Spain and Brazil. This undoubtedly demonstrated Aernnova's outstanding capacity for successfully tackling projects of this kind. 2011 was also both a qualitative and quantitative milestone in the recent history of Aernnova Mexico. In quantitative terms, we grew from a staff of 100 employees, 100,000 production hours and revenues of 7m in 2010; to a staff of 300, 250,000 production hours, and revenues of over 21m in 2011.

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6. Milestones 2011 6.2 Engineering, R&D and Product Support Services

Top Engineering with extensive manufacturing experience.

Engineering
During 2011, apart from specific milestones regarding particular programs, Aernnova Engineering signed three significant contracts in the USA: Design and Structural Calculation Engineering from the conceptual phase to certification of the complete wing (CWB, flaps, ailerons and speed brakes) of a next-generation business jet. Design and Structural Calculation Engineering from the conceptual phase to certification of the Horizontal Stabiliser on the UAV Vulture II developed by Boeing Defence in St Louis (MI), which supposed an important milestone in Aernnovas development in the USA. Design and Structural Calculation Engineering from the concept to the detail phase of several substructures of the Nacelles of the A320 NEO with GTF and CFM engines developed for Goodrich and General Electric Aviation. Regarding Manufacturing Engineering, subsidiary AMESerra developed the tooling for Alsthom, for assembling the three main sub-components of the nacelles of the 6 MW wind generators, to be installed in off-shore wind farms.

Technology Projects, R&D

Aernnova has developed a significant number of Research and Technology projects during 2011, together with the technology developments required for the commercial programs included in previous pages. The projects with more relevancy in technology development during 2011 are highlighted next: VII EU Framework Program (2007-2013) CLEAN SKY Clean Sky, is a European Union- Industry initiative to make significant steps forward regarding the environmental impact of aviation. It will speed up technological breakthrough developments and shorten the time to market for new and cleaner solutions tested on full scale demonstrators. It is part of the VII EU Framework Program with an overall budget of 800 M from EU and another 800 M coming from the Industry. Clean Sky is estimated to run activities until 2017. Aernnova is an Associated partner to Clean Sky with a total scope valued over 8 M. Other Associated partners to Clean Sky are Airbus, Agusta-Westland, Alenia Aeronautica, Dassault Aviation, EADS-CASA, Eurocopter, Fraunhofer

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Institute, Liebherr-Aerospace, Rolls-Royce, Saab AB, Safran Thales and European Commission. Clean Sky is made up of six Integrated Technology Demonstrators. Aernnova participation is in the SFWA (Smart Fixed Wing Aircraft). This ITD will deliver active wing technologies and new aircraft configuration for breakthrough innovative products. Clean Sky SFWA objectives are 10% reduction of the aircraft drag, 20% reduction of fuel burn through the integration of advanced engines and the reduction of aircraft noise by up to 10 db through engine noise shielding configurations. Aernnova in particular, is responsible to perform part of the structural design of the CWB, assembly and final smart wing Integration with parts coming from the rest of partners. For next generation aircraft, achieving improved wing laminar flow is considered an important milestone because of the associated drag reduction, as well as associated Fuel Burn and Emissions reductions. In order to test the final outcomes of the project and the new design effectiveness, an Airbus A340 would be equipped with new outer wing sections. Furthermore, Aernnova will integrate self-developed innovative SHM system which will also be validated in the flight test. This Aernnova PAMELA SHM is able to detect wings damages and defects in real time. It will be installed wireless for the first time, enabling the direct communication between the new wing structure and the maintenance personnel. This technology allows reducing Maintenance Costs and then, the overall cost of the aero-structure along the PLC (Product Life Cycle). Other projects also financed by the VII Program are the following: LAYSA: Developments to integrate nano-materials in aeronautical products to enhance several properties (anti- erosion, anti ice accretion, etc.) in aircraft leading edges.

SARISTU: Smart Structures R&D with self-developed Structural Health Monitoring System (PAMELA SHM , (Phased Array Monitoring for Enhanced Life Assessment Structural Health Monitoring) and Morphing). On the other hand, among the projects financed by the Spanish and Basque Governments are: ATLANTIDA and ICARO: CENIT Program. Centre for Industrial Technological Development (CDTI), Minister of Economy and Competitiveness (Spain). ATLANTIDA: Led by Boeing Research & Technology Europe (BRTE), has allowed Aernnova to develop know-how on the performance of Unmanned Air Vehicles (UAVs) with a key role on air platform configurations and Flight Tests. ICARO. Led by Airbus, Aernnova has been able to progress in the research on new manufacturing techniques of composite structural parts, together with Virtual Testing, new configurations tradeoffs and structures monitoring technologies. PERIGEO Innpronta Program. Minister of Economy and Competitiveness. Led by Deimos, aims to develop a demonstrator UAV flight in Earth's atmosphere which could be extrapolated to atmospheres of other planets. Perigeo creates a framework for research and experimentation through a cluster of laboratories responsible for supporting the integrated process of innovation and design. Aernnova, with the support of the Polytechnic University of Madrid (UPM) and the Spanish National Institute of Aerospace Technology (INTA), will develop multidisciplinary optimization technologies for obtaining optimal shapes and geometries in small aircraft, developing tools for MDO (Multidisciplinary Optimization) in the design of an aircraft to perform air flights. In addition to that, Aernnova will also

Prontas Project: Development of a solar-powered UAV

collaborate with the Madrid Institute for Advanced Studies on Nano-science (Imdea Nano-science), will develop technologies with the graphene for the development of heat shields on re-entry phase atmosphere. PRONTAS. Innpacto Program. Minister of Economy and Competitiveness. Aernnovas role is focused on the design and manufacturing of a flight deck for a solar plane, using carbon fiber processes outside autoclave. Solar Airplane Project aims to achieve a platform to stay aloft autonomously and indefinitely, using only solar energy source and having ability to perform different types of predefined missions, scientific, commercial or institutional.

IUDE. Etorgai Program. Basque Government. IUDE. Chopper prototype development for neutrons selection in a Large Neutron Spallation Source. The Chopper is a composite disk type structure able to rotate up to 27.000 rpm. This innovative Carbon Fibre structure integrates Boron in order to absorb the Neutrons. HIMAT and INTEGRA. Etorgai Program. Basque Government. Aims to develop technologies for Inertia Wheels in Carbon Fibre Composites solutions and the application of Resin Transfer Moulding (RTM) processes for a new car structure.

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Ikarus: Product Support Services

Product Support Services

In 2011, Aernnova obtained the American FAR145 certification from the FAA (Federal Aviation Administration). This new certification will allow Aernnova to repair and certify products with flying hours in American airplanes and completes the EASA145 certificate that allows us to repair and certify products on European flights. For now, this will be limited to the Embraer and Sikorsky programs.

6.Milestones 2011 6.3 Customers Acknowledgements in 2011

partner for the design and manufacturing of wings and other parts such as engine cowlings and control surfaces. After that, Aernnova has also taken part as a risk sharing partner in the design and manufacturing of the Horizontal and Vertical Stabilizers and Control Surfaces of the EMB 170/190, becoming a key supplier for Embraer. Furthermore, Aernnovas Engineering Division is currently participating in the KC-390 program as well as in other Aerostructures supplying projects, such as Phenom, Legacy or UAV Falcao. During 2011, Aernnova has achieved a broad recognition of his performance by major clients, which confirms us as a reliable global Tier 1 supplier. Highlight was the Embraer Best Supplier Award 2011 in Aerostructures, given in November 2011, in the context of the Embraer Suppliers Conference and among more than 200 top suppliers. Embraer valued aspects such as deliveries, product quality and particularly, client-supplier cooperation in problem-solving, as a benchmark for the coming years partnerships. Historically, Aernnova started in aerospace with Embraer, participating in the EMB 135/145 aircraft as a risk sharing Aernnovas product support subsidiary, IKARUS, has also received an excellent evaluation from Airbus this year, for its capacity and resources for providing support for any of the company's products, particularly the A350. Meanwhile, last April Bombardier gave to Aernnova the 2011 Corporate Social Responsibility Bombardier Award, within its 7th Strategic Suppliers Executive Meeting (SSEM). Aernnova shared this prestigious recognition with Pratt & Whitney Canada and 3M Company. Those acknowledgements need to be added to those already received in previous years, such as the 2010 Boeing Silver Performance Excellence Award Engineering.

7.Corporate Social Responsibility

Aernnova continues to surpass milestones in various areas where it can contribute to Corporate Social Responsibility: employment, training, quality, environmental commitment, safety in the workplace and social initiatives. EMPLOYMENT AND TRAINING Starting on 2011 second semester, and despite the global economic downturn, Aernnova has attained significant growth in job creation both domestically and internationally, exceeding 4,100 employees by the end of the year. This represents a 14% increase over 2010. Such a growth supports Aernnova strategy of international expansion as the only way to improve its positioning in the aeronautical market. It is also worth pointing out that 63% of these new jobs were permanent and high tech skilled in all countries we operate: Spain, Mexico, Brazil, USA, Romania or India. Innovation of both products, with new R+D+i programmes and projects, and new manufacturing methods has received a significant boost. Hence, we have focused growth on high value added projects involving a major technological challenge. For this reason, and with a view to moving forward, ambitious new training programmes have been implemented associated with the most important aeronautical programmes. For example, within the Airbus A350XWB Project, over 2,000 hours of training were given in 2011 in the field of Design and Calculation of Aeronautical Structures methodologies and applications or Project Quality and Management, making a total of 9,000 hours since the program started in 2008. QUALITY We have increased the number of certified activities during 2011 by extending the skill-building, scope and development of the Quality System: - EN9100:2009 : This certification supports that risk management and best practices are mainstreamed throughout the quality system. - EN9120: Sale of storage services and distribution of raw materials, components and chemical products, an activity carried out by the GMAPSA Business Unit.

Main OEMs Approvals

- FAR 145. Federal Aviation Administration. Will enable our MRO subsidiary (Ikarus) to gain access to the United States market and offer repair services. - Extension of Production Organisation Approved (POA) to the Airbus A350 and Eurocopter Super Puma programmes and to the Aernnova Composites Plant in Illescas (Spain). - PRI Nadcap, certification of special processes. Aernnova Aerostructures site Berantevilla. This brings us up to 20 valid certificates most of them with Merit rating acknowledging application of best practices and excellent quality assurance in special processes. - Aernnovas Romanian plant has been integrated in the Corporate Quality Management System. This has also meant an extension of the scope that is certified, to

Design Production

include the activity of Manufacturing Tooling for the aerospace sector. Since 2009, Aernnova has been playing an essential role in developing ICOP aerospace certification in Spain (EN9100 series) by monitoring the system. This task is undertaken by providing qualified Aernnova auditors to act as experts to represent both ENAC and the Spanish aerospace industry in TEDAE. The roll-out of the "Six Sigma-Zero Defects" programme continues to produce excellent results. This method has now been rolled out in 20 intervention centres and we now have 7 qualified Black Belt engineers and 106 Green Belts working in core parts of the organisation. Within this context, the company has continued to foster the culture of preventive manufacturing, aimed at attaining and

ensuring excellence in the production processes. Some 3,500 hours of training have been given in Quality methodologies, allowing the establishment of 12 new Intervention Centres in Spain and elsewhere (Mexico and Brazil) focussing on the "zero defects" target. Since it started in 2010, the program has managed to reduce the number of quality complaints made by our customers by 88%. ENVIRONMENTAL PROTECTION Aernnova has signed up to the Basque Company Ecoefficiency Programme 2010-2014. The objective of this programme is to enhance the competitiveness of Basque companies by improving their environmental behaviour by committing to at least one important environmental

improvement action per year. In 2011, the company also voluntarily signed up to the Aragon Climate Change and Clean Energies Strategy (EACCEL) in Spain. Aernnova has also presented two projects for the European Environmental Awards to Industry 2011/2012 for rolling out an environmentally friendly assembly and painting process for aeronautical parts and for reducing diffuse emissions of volatile organic compounds by using alternative processes and materials. As complementary environmental projects aimed at minimising hazardous waste, it is worth mentioning that the company has given all pre-impregnated fabric cuttings to local companies for re-use and has introduced sealer dispenser kits to reduce waste. In the area of optimising natural resources, the policy of rolling out energy efficiency and facility improvement plans to reduce their environmental impact continues, as do specific actions such as the

improvements made in the paint shop to optimise its energy consumption in one of our factories in Spain. The UNE-EN ISO 14001:2004 environmental standard was renewed in 2011, valid for 3 years, and its scope has been extended to cover new company factories and subsidiaries. HEALTH AND SAFETY IN THE WORKPLACE Aernnova maintains a Health and Safety Management System that is clearly aimed at Continuous Improvement. This H&S Management System, designed in accordance with OHSAS 18001 standards, is deployed as an integral part of the Quality and Environmental Management Systems. Once again, ambitious objectives have been set to reduce work-related accidents and the Health and Safety Plans rolled out have attained impressive results. The number of accidents has been brought down by 10%.

Expired Chemicals

ISO 14001 External Audit

2009
Kg Expired Chemicals

2010
Ratio Expired Chemicals to Production

2011

2008

2009

2010

2011
N Dev/Companies

N Sec Dev/Companies

Frequency Index
Number of accidents per million hours worked

2009

2010

2011

DEVELOPING AND FUNDING OF SOCIAL INITIATIVES In Aernnova, we support a range of different social initiatives. In the areas of development aid, we work with Solidaridad Internacional in the provision of basic services in developing countries such as the building and equipment of several food infrastructures in Haiti, the development of an effective system of sewerage in Guatemala or reinforcing medical care and emergency services in the Middle East, among other Human Rights and Housing projects all over the world. In the area of Education, back in Europe, we are partners of Deusto Business School (DBS) in the Basque Country (Spain). Aernnova also sponsors the Baskonia Foundation, created by Caja Laboral-Baskonia, one of the leading basketball teams in Europe, dedicated to fostering healthy life-style habits, sport and cultural enhancement among children, young people and citizens in the city of Vitoria-Gasteiz (Basque Country, Spain) where Aernnova headquarters are. In 2011, Aernnova initiated a technology dissemination plan in its pioneering technology campus in Bizkaia Technology Park (Basque Country, Spain). The main objective is to foster technological talents in areas such as Robotics and Animation/Computer videogames with the help of experts and leading entities.

Hazardous Waste

2009
Generation RPs (w/o chem. baths)

2010

2011
RPs to Fabrication Ratio RPs to Production

8. Key Figures

Main magnitudes
2010 376 45 13 352 155 164 291 6,5 713 1,77 3622 2011 476 54 11 335 196 188 311 5,8 768 1,65 4122

IN MILLION REVENUES EBITDA NET ANNUAL PROFIT NET FIXED ASSETS WORKING CAPITAL EQUITY DEBT DEBT/EBITDA TOTAL BALANCE SHEET DEBT/EQUITY STAFF

In 2011, the group's Revenues grew 27% to 476 m, close to pre-crisis levels. This improvement can be explained by the recovery of activity on existing programmes and also by new programmes adding to turnover, such as the one signed with Hawker Beechcraft Corp, or the one signed with Eurocopter for the Super Puma. By customer, EADS/Airbus accounted for 31% of revenues, and Embraer, 26%. Although the company is moving towards a continuous diversification of our customer portfolio, these are still our two major customers. The EBITDA improved by 20% over last year, excluding extraordinary revenues. This was due to the increase in

turnover, achieved by constant adaptation of our production capacities and the advances we have made in efficiency that significantly improved production costs. Net Profit has also grown significantly in comparison with last years ordinary earnings. Debt ratios have improved in relation to both equity and EBITDA. Backlog reached 2,64 bn. Staff grew 14% to a total of 4122 employees at the end of the year.

Deliveries

PROGRAMS/YEAR EMB 145 EMB 170/190 CRJ700/900 S-92 A380 A330/A340 A320 SUPERPUMA HBC TOTAL

2009 10 95 61 23 14 34 335 29 0 601

2010 20 83 35 23 19 83 355 29 1 648

2011 15 120 34 18 27 90 437 29 74 844

2009 450 400 350 300 250 200 150 100 50 0

EMB 145 EMB 170-190 CRJ 700 900 S-92/H-92 A380 A330/A340 A320

2010

2011

SUPERPUMA

HBC