SPARX FEL

Roma 7 marzo

Finmeccanica

Technological Strategy

Giancarlo Grasso – Finmeccanica

2

1,709 € MDETAILS

15.2% € 1.9 bln

� ALENIA AERONAUTICA� ALENIAAERONAVALI� ALENIAAERMACCHI� ATR

� AGUSTA WESTLAND � ALCATEL ALENIA SPACE� TELESPAZIO

� SELEX SENSORS & AIRBORNE SYSTEMS� SELEX COMMUNICATIONS� SELEX SISTEMI INTEGRATI� SELEX SERVICE MANAGEMENT� SEICOS� ELSAG� ORIZZONTE� ELETTRONICA

� OTO MELARA� WASS� MBDA

� ANSALDO STS� ANSALDOBREDA

� ANSALDO ENERGIA

SpaceAeronautics

21.6% € 2,7 bln

Helicopters

6.1% € .764 bln

Defence Electronics

29.6% € 3.7 bln

8.8% € 1.1 bln 11,2% € 1.4 bln

Defence Systems Transportation

Finmeccanica Business Sectors2006 Revenues: € 12.5 bln(+14%YoY, 8% like for like)

7,8% € .978 bln

Energy

100% FNM CompaniesJVs

3

1381

1800

450

520

41080

28015 45

0

200

400

600

800

1000

1200

1400

1600

1800

2000€ mln€ mln

2005 2006 Helicopters DefenceElectronics

Aeronautics Space DefenceSystems

Energy Transportation

Finmeccanica GroupResearch and Development Expenses 2006

14% Rev. 06

Second Best Innovator in Aerospace and Defence in 2005 MIT R&D Ranking

4

Dual Technology Approach

Common extended technological pillars ….Common extended technological pillars ….

....founded by different Organizations in several p rojects….....founded by different Organizations in several p rojects….

…………merged for Civil, Military and dual use application smerged for Civil, Military and dual use application s

DMRDMR

5

Group Engineers, Engineering Population, and Research & Development Specialists

~ 10.000

GRADUATED ENGINEERS

PLANNING/ENGINEERING

OFFICERS

RESEARCH & DEVELOPMENT

STAFF

~10.600

>11.000

>11.200

~3.500

~4.000

End 2006

End 2007

Finmeccanica total employeesJan. 2008: ~ 59.000

6

TechnologyTechnologyGovernanceGovernance

7

Technology Governance in Finmeccanica

Mind Sh@re©

ProductsPlan

MKTPlan

IPManagement

TechnologyAppraisal

Strategic Plan

Academia Collaboration

TechnologyPlan

•COMPETENCE APPRAISAL

•TECHNOLOGY SHARING

•ACTION PLAN

CommunitiesOf

Practice

National/EUFunding

Budget/Plan

FNM TechPlan

8

Competitive Impact

Com

petit

ive

Pos

ition

Clear Leader

Strong

Favorable

Tenable

Weak

Emerging Pacing Key Base

Opportunities for future competitive advantage

Opportunities for present competitive advantage

Opportunities for refocusing of resources

Industry average

Alarms for survival

Alarms for the presentAlarms for the future

Technology Appraisal: Technology Positioning

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Technology Governance Finmeccanica

Mind Sh@re©

ProductsPlan

MKTPlan

IPManagement

TechnologyAppraisal

Strategic Plan

Academia Collaboration

TechnologyPlan

•COMPETENCE APPRAISAL

•TECHNOLOGY SHARING

•ACTION PLAN

CommunitiesOf

Practice

National/EUFunding

Budget/Plan

FNM TechPlan

10

Technology Plan

• Identification of critical technologies

• Identification of global action plan and its priorities

• Research Costs in Budget/Plan Documents• Research Topics:

– Description

– Future spending

– Main goals, significant milestones and deliverables– Comparison between research topics and gaps identified with Technology

Appraisal– Impact on Products

– Research/Collaboration with Universities and other Finmeccanica Companies and others Shareholders

– Synergies and integrations between Finmeccanica companies

– Funding

– Compatibility between Research activities and involved company resources

The Technology Plan is generated independently by each company: by the processof Group Planning and the establishment of technological communities it is optimisedat Group level through an iteractive process

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Technology Governance in Finmeccanica

ProductsPlan

MKTPlan

IPManagement

TechnologyAppraisalTechnologyAppraisal

Strategic Plan

Academia Collaboration

TechnologyPlan

•COMPETENCE APPRAISAL

•TECHNOLOGY SHARING

•ACTION PLAN

CommunitiesOf

Practice

National/EUFunding

Budget/Plan

FNM TechPlan

Mind Sh@re©

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Technological Communities (MindSh@re ©)

1. Define and support Common Technology Plans and related initiatives (i.e. Technology Platform, …)

2. Promote best practices within the Community

3. Promote Community cooperation in R&D

4. Assure compatibility between development process and developmenttools

5. Create new business opportunities for which integration capability and complexity management is required

6. Define Investment Plan according to Technology and Product Plans

7. Promote Sponsored Community of Practice

8. Favor cross fertilization among adjacent businesses

Through the technological Communities, Finmeccanica gives inputs and

coordinates the individual companies’ technological plan to optimize the use of

resources at Group level.

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Technology Governance in Finmeccanica

Mind Sh@re©

ProductsPlan

MKTPlan

IPManagement

TechnologyAppraisal

Strategic Plan

Academia Collaboration

TechnologyPlan

•COMPETENCE APPRAISAL

•TECHNOLOGY SHARING

•ACTION PLAN

CommunitiesOf

Practice

National/EUFunding

Budget/Plan

FNM TechPlan

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Finmeccanica Tech Plan

– The Group Plan provides the basic methodology for the Technology Governance Process:

• It synthesizes all the initiatives and investments of the Groupneeded to sustain medium and long term planning

• It represents the optimal use of the resources by putting in place synergies obtainable on activities on common enabling technologies

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Technology Governance in Finmeccanica

Mind Sh@re©

ProductsPlan

MKTPlan

IPManagement

TechnologyAppraisal

Strategic Plan

Academia Collaboration

TechnologyPlan

•COMPETENCE APPRAISAL

•TECHNOLOGY SHARING

•ACTION PLAN

CommunitiesOf

Practice

National/EUFunding

Budget/Plan

FNM TechPlan

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FNM vs Scientific Community

FINMECCANICA ROLE

• Active internationally• Sensitive to Market Dynamics

and Evolution• Competitive Intelligence:

Product Evolution• Elaborates Competitive

Solutions to Complex Systems• Decides the right timing for

new tech introduction in new or existing products

• Directs Suppliers/Partners SME

SCIENTIFIC COMMUNITY ROLE

• Actor in scientific R&D • Player in the international Hi Tech

Arena; Intelligence on the international technological evolution

• Owner of top competencies and abilities, not biased by contracts and deliverables

• Subject who understands needs and trends of the Industrial world

• Targeted education

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3C: Collaborative Scheme

• Industry shares with the Scientific Community its technological

forecast and through Collaborative agreements. It fosters research activities in the Academia along agreed guideline.

• Industry (Client) assigns a task to University (Server) on a specific short term project.

• Industry and Academia combine resources setting up Centresof Excellence.

CC11

CC22

CC33

CCCC

CC

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Relationships with Academia

• Chair at Universities: 3 USA; 1 UK (Co-funded with the Royal Academy of Engineering for three years from 2006 to 2009)

• University Partnerships: > 60 Research Agreements mainly in Italy and the UK ( presence in F, D and USA)

• Defence Technology Centres fund 13 UK Universities research projects

• Framework Agreement in Italy with: • CNR

• COTEC

• CNIT

• CINI

• CRUI

• CINSA

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Technology Governance in Finmeccanica

Mind Sh@re©

ProductsPlan

MKTPlan

IPManagement

TechnologyAppraisal

Strategic Plan

Academia Collaboration

TechnologyPlan

•COMPETENCE APPRAISAL

•TECHNOLOGY SHARING

•ACTION PLAN

CommunitiesOf

Practice

National/EUFunding

Budget/Plan

FNM TechPlan

20

Intellectual Property Governance-STATUS

Objectives & Guidelines

- Motivate Group’s Companies to protect own Technolo gies, Solutions,

Businesses & Market-shares. - All Group’s Companies involved (IPR Managers netwo rk, managed by HQ).

Results:- Number of Patents: - 1Q’05: 380

- 4Q’05: 620- 4Q’06: 820 - 4Q’07: 1045

- Number of Patent applications/year: - 2004: 25 ca- 2007: 200 ca

- Percentage of international patents: - 1Q’05: 45 %- 4Q’07: 84 %

Near future challenges- Reinforce Group’s “culture” to improve IP position ing (500 patents/year) - Implement new “IPR Management model” at Group leve l. - Define “Trade-Marks management model” at Group lev el.

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COTEC: The innovation engine

• Reinforce networking between industry and Academia

• Realise an IT system to monitor and promote Research and Innovation

• Define and manage an evaluation process for patents of the Academia, verifying their industrial potentiality and supporting the technology transfer

•Support the start-up phases of new companies

PMI

CRUI

Università

Torino

Napoli

Lecce

CNR

ENEA

ENI

EspertiTecnici

FINMECCANICA

TELECOM

Comitato dei Programmi

COTECFINANZA

EspertiTecnici

EspertiTecnici

COTEC

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• Finmeccanica is a company based on high tech assets with a strong tech governance

• Dual application allows Finmeccanica to access to both civil and military resources

• Acquisition of Enabling Technologies is a Driver of Finmeccanica International Expansion

• Technologies are one of the pillars of Finmeccanica expansion strategy

• Virtuous Innovation Process has lead to State-of-the-Art, Highly Competitive Products

• Relation with Academia Paramount for Long Term Research

…. in conclusions…