Poland: Building on Excellence

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PZL-ŚWIDNIK

PZL-ŚWIDNIK is a Leonardo Helicopters(formerly AgustaWestland) company since 2010

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Leveraging our heritage and know-how,together with our employees and partners,to create innovative technology,by Poland, for Poland and beyond.

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Aerial view of PZL-Świdnik

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We have a rich history and a heritage built on unique engineering capabilities and experience in manufacturing operations.

Our heritage, our pride

With over 65 years of experience and more than 7,400 helicopters produced over a 60-year span, PZL-Świdnik is the only Polish Original Equipment Manufacturer able to manage the whole helicopter production cycle, from the design to the production of fundamental components; system integration; final assembly and delivery; as well as after-sales support, customer service and training.

The Company’s range of rotorcraft can perform the complete spectrum of commercial and government roles. PZL-Świdnik is also a major industrial partner in the aerospace industry, supplying aerostructures to many of the world’s leading manufacturers.

Thanks to PZL-Świdnik, Poland has gained an independent and unique strategic and industrial expertise in the helicopter sector, becoming one of the few nations in the world that boasts the capability to design, produce, develop and service helicopters on its own.

65 Y

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CETo Shape a Future of Excellence

PZL-Świdnik’s plant in the 1960s SW-4 Puszczyk helicopters

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Together with Poland

PZL-Świdnik is a key partner of the Polish Ministry of Defence for the Polish Armed Forces’ largest helicopter programme: almost 160 helicopters produced by PZL-Świdnik are currently in service with the Polish Armed Forces.

Almost 80% of all helicopters delivered to the Polish Armed Forces in the last decade are manufactured in Świdnik (including the SW-4 Puszczyk, the W-3PL Głuszec, the W-3RM Anakonda and the W-3WA Sokół in VIP configuration for the transportation of top government officials). In 2016, PZL-Świdnik’s most important contributions to the Polish economy included:

• Revenues of over 912 PLN millions (78% from export)• Purchases from the supply chain totalling around 400 PLN

millions (of which 217 PLN millions from approximately 850 Polish suppliers)

• Salaries amounting to 240 PLN millions (salaries 200 PLN millions, social contributions 40 PLN millions)

• Capex investments made of around 120 PLN millions in the 2013-16 period

W-3WA Sokół

W-3PL Głuszec

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Unique national engineering capabilities

PZL-Świdnik is the only Polish producer of in-house designed helicopters, thanks to the capabilities gained from the W-3 Sokół and SW-4, the only two truly Polish helicopters, designed by Polish engineers and produced in Poland.

The Company is currently working on the development of two variants of the SW-4: the AW009 (the latest evolution of the SW-4 for the U.S. market) and the Solo (the first European unmanned helicopter).

Moreover, PZL-Świdnik participated in the design of the AW149 and in the engineering, assembly and system integration of a number of military and civil helicopters for the international market.

AW009

SW-4 Solo RUAS

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PZL-Świdnik’s assembly line in the 1950s

AW139 fuselages

Excellent manufacturing operations

PZL-Świdnik’s production capabilities meet the requirements of the most demanding customers and cover all major areas of production activity in the Aerospace and Defence industry.

With over 65 years of excellence in execution, the Company has thus far manufactured and delivered over 7,400 helicopters to customers from over 40 countries worldwide.

PZL-Świdnik is the largest Polish producer of composite materials and is Poland’s only centre of static and fatigue testing for aerostructures and dynamic parts.

Available production processes are supported by Quality System based on the following standards: AS 9100, AQAP 2110, EASA Part 21, NADCAP.

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AW101 CSAR (Combat, Search & Rescue)

We are a key actor across the national Aerospace and Defence value chain, as a relevant player in the innovation ecosystem and in the technology transfer process.

Industrial cooperation and technology transfer

On March 2, 2017, in the Strategic Partnership framework between Polish Armaments Group (PGZ) and Leonardo, PGZ and Leonardo signed a Cooperation Agreement for helicopters. The collaboration involves determining areas of potential industrial and business cooperation regarding helicopter programmes for the Polish Armed Forces’ Technical Modernisation Plan.

The aim of the agreement is to strengthen cooperation between the PGZ Group and Leonardo for the supply of helicopters offered by Leonardo to the Polish Ministry of Defence. It includes the AW149, AW101 and W-3PL Głuszec models.

Through the broadening of scope of collaboration with PGZ, the Polish aerospace and defense industry, which also includes PZL-Świdnik, would benefit from the greatest involvement in future helicopter procurement programmes, including technology and capability transfer, additional investments and the creation of highly skilled jobs in Poland.

W-3PL Głuszec

A RE

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ER To Fuel Our Country’s Development

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Growing with the supply chain

In 2016, PZL-Świdnik worked with almost 1,200 suppliers. Approximately 850 of them are Polish with a purchase value of around 217 PLN millions in 2016.

The biggest group of these enterprises is formed by partners from southeastern Poland (mainly located in the Mielec area), including members of the Aviation Valley, the largest Polish aviation cluster, and of the Lublin Cluster for Advanced Aerospace Technology.

Lublin Cluster for Advanced Aerospace Technology was created by PZL- Świdnik with the aim of increasing the contribution of the Lublin region into the development of the Polish aviation sector by assuring mutual cooperation between local governments, universities and the business environment, as well as creating high-skilled jobs and technological expertise.

PZL-Świdnik invests and contributes to the development of a national Aerospace and Defence supplier base, supporting capacity-building projects in the supply chain. These activities consist in the transfer of know-how in various areas, in order to grow together with the supplier base, creating long-term relationships, encouraging improvements in quality standards and promoting Aerospace and Defence best practices.

A look inside the PZL- Świdnik facility

Fatigue test

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Contributing to the Aerospace and Defence innovation roadmap

PZL-Świdnik is contributing to the definition of an Aerospace and Defence technological roadmap through its participation in Research and Development European programmes.

In 2016, PZL-Świdnik accomplished activities in the frame of the EU funded Clean Sky 1 Programme. Specifically, the Company performed failure static tests of the AW169 helicopter tail cone made of thermoplastic materials.

PZL-Świdnik participates in the INNOLOT research programme, co-financed by the National Centre for Research and Development, a Polish government agency. INNOLOT’s aim is to strengthen the Polish aviation industry by increasing the research and innovation potential of this sector in Poland to a global level. PZL- Świdnik’s equipment

PZL-Świdnik’s site

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Teaming upwith universities

PZL-Świdnik is committed to reinforcing collaboration with the university system.

Universities with which the Company cooperates include:

• Lublin University of Technology• Warsaw University of Technology• Rzeszów University of

Technology• Military University of Technology• Polish Air Force Academy• AGH University of Science and

Technology• Maria Curie Skłodowska University

in Lublin• The John Paul II Catholic

University of Lublin

In 2016, over 370 students were involved in technology presentations, case studies, visits and tours.

Committed to higher education

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We invest in the expertise of our high-skilled employees, providing them with the best working conditions and behaving in a socially responsible manner in the community.

People first

People are PZL-Świdnik’s best resource and most important asset. Sharing the principles of ethics and transparency in conducting business activities, the employees contribute daily to the achievement of results that underpin the Company’s success and the creation of value in the long-term.

PZL-Świdnik has 2,800 employees

• 20% are women • 1/3 are university graduated• 62% have a STEM educational background (degree or diploma) • 19 years is the average length of service in the Company• 44 years is the mean age • 56% are under the age of 45 • the workload has doubled since PZL-Świdnik’s acquisition by AgustaWestland in 2010 (from

1.8M to 3.5M hrs/year)

FOCU

SING

ON

PEOP

LE To Foster Company and Community Growth

At work inside the PZL-Świdnik facility Maintenance services on the AW009

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People development and skills improvement

PZL-Świdnik is committed to enhancing professional skills and talent, and supporting individual growth through transparent, fair and merit-based management.

• Over 73,000 hours of training were provided in 2016

• 26 training hours per capita, 3 different courses attended on average

A new appraisal process has been introduced through which individual objectives are assigned and the person’s contribution to the organisation is assessed in terms of achievements, skills and behaviour.

To Foster Company and Community Growth

Promoting training and education inside the Company

Encouraging employees to develop their talents

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Employer branding and STEM

PZL-Świdnik focuses its efforts and invests resources to spread the culture of innovation and bring young generations closer to science, technology, engineering and mathematics (STEM) issues and studies. Nurturing talents and supporting their ability to imagine the future is a way to ensure the renewal of knowledge and the development of new skills.

• 90 students were involved in apprenticeship/internship programmes in 2016• More than 100 candidates’ CVs were submitted at job fairs in 2016• 270 people were hired in the 2014-16 period

Working with students on career development

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Industrial relations and welfare

PZL-Świdnik has a long tradition of constructive and constant dialogue with employee representatives. Milestone agreements have marked real progress in the management of the privatisation transition and in the increase of social welfare initiatives.

• 58% of employees are members of Trade Unions (Solidarność has the highest number of members)

• 77 meetings with Trade Unions were held in the 2015-16 period

• 37 PLN millions were distributed under performance bonuses (2016 OPERA Plan)

In July 2016, a new life, accident and medical insurance plan for all employees and their families was introduced.

PZL-Świdnik’s technicians at work

PZL-Świdnik’s facility

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High-quality standards on Environmental,Health and Safety

PZL-Świdnik’s site has quality management external certifications in Environmental, Health and Safety (ISO 14001 and OHSAS 18001) and it is in line with the Seveso directive. PZL-Świdnik’s EHS internal rules have been extended to contractors.

Thanks to the EHS investments, PZL-Świdnik has been awarded the 2017-18 Silver Card for Safe Work Leader for its 2015-16 achievements, organisational solutions and investments in improving working conditions (Centralny Instytut Ochrony Pracy/Central Institute For Labour Protection).

PZL-Świdnik’s helicopters

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Behaving responsibly in the community

The modern town of Świdnik was born alongside the first industrial plants of PZL-Świdnik in 1951. Today, the Company is one of the biggest employers of the Lublin region, providing thousands of jobs and thereby having a deep influence on the lives and the future perspectives of hundreds of families.

Recognising the importance of the relation between the Company and the local community, PZL-Świdnik, together with Trade Unions and employees, is deeply involved in a number of projects within the Świdnik community, by supporting health and social care programmes and charity activities, primarily focused on the well-being of the children whose parents died while serving their country.

Charity activities in PZL-Świdnik Gifts for children from the Przybyslawice orphanage

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Wytwórnia Sprzętu Komunikacyjnego “PZL-Świdnik” Spółka AkcyjnaAleja Lotników Polskich 121-045 ŚwidnikPOLANDPhone: (+48) 81 722 50 00, (+48) 81 446 80 00Fax: (+48) 81 722 60 07, (+48) 81 468 09 19pzl.swidnik.pl

©Leonardo – All rights reserved

Published by Leonardo

September 2017

© Leonardo - Società per azioniThis document contains information that is proprietary to Leonardo - Società per azioni and is supplied on the express condition that it may not be reproduced in whole or in part, or used for manufacture, or used for any purpose other than for which it is supplied.