January – 2016ISSUE 10

STRATASPHERE

2 January 2016 ISSUE 10 3

INDEX

Editor in chief:Mohammed Shaban

Assistant editor:Maitha Al Eisaei

www.strata.aecommunications@strata.ae+971 3 7071300

STRATAUAE

STRATAUAE

STRATAUAE

Strata Manufacturing PJSC

Message from the CEOPage 04

Financial UpdatePage 04

Mubadala Names New Senior Executivesto Drive Strata ’s Growth

Page 05

Strata driving growth of aerospacemanufacturing across UAE

Page 06

2015 HIGHLIGHTSPage 07

Abu Dhabi Aerospace WeekPage 08

Strata Embraces Change in the Digital AgePage 09

Creating a Culture of QualityPage 10

Programs UpdatePage 11

Strata’s EventsPage 12-11

Strata’s VisitorsPage 14-15

5 January 2016 ISSUE 10

MubAdAlA NAMEs NEw sENior ExEcutivEs to drivE strAtA’s Growth

values are at the core of everything we do, and they guide us to make the right decisions, time and again. they set our company’s culture, they give us the common purpose and understanding required to build a great workforce, and they reinforce our commitment to our key stakeholders – our shareholders, our customers and our suppliers.

in short, values hold the key to our success, so it’s important to get them right.

strata’s communications team is reviewing the company’s core values in line with our vision, mission and overall business strategy. we will adopt values that truly capture the essence of our company, and we want these

By: Badr Al OlamaCEO, Strata

Message from the CEOvalues to go beyond our workplace and touch our lives to help drive our passion and dedication for excellence.

colleagues, a world-class organization is built on a solid foundation of core values – values that will inspire action, teamwork, integrity and outstanding results. upholding our soon to be launched core values is one way of demonstrating our commitment to strata and key stakeholders.

strAtA ANNouNcEs 44% rEvENuE Growth iN First QuArtEr oF 2016strata’s first quarter financial results for 2016 have been released, with a 44% increase to AEd 92 million, compared to AEd 64 million during the same period last year.

by the end of the first quarter, strata delivered 82 shipsets consisting of 1,584 composite aero-structure parts to oEM’s around the world.

Revenue by Program A330 FTF

A330 Spoiler

A380 FTF

A330 Aileron Assembly

B777 Ribs

B787 Ribs

ATR Rudder

A350 - 900 FTF

A350 - 1000 FSF

12%

7%

20%

28%

16%

4%

8%

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Mubadala has made a range of new leadership appointments at strata. cyril Arar has been appointed as the new chairman of the board of directors; ismail Ali Abdulla becomes deputy chief executive officer; and Murray hundleby becomes general counsel.

Arar has held various roles within the aerospace industry, most recently within Mubadala’s Aerospace and Engineering service platform where he leads the unit’s defense services vertical. Prior to his role within Mubadala, he served as the cEo of Al taif technical services for over seven years and also as a lieutenant

colonel in the uAE Armed Forces, specializing in life cycle management of land systems.

in his new role, Abdulla will be responsible with building up capabilities for strata’s next phase of development and will also be responsible for guiding the commercial department, building management services, and overseeing business performance and risk management. he is a senior member of Mubadala’s Aerospace and Engineering services platform, where he previously led the development of the Nibras Al Ain Aerospace Park. ismail brings to the role nearly a

decade of experience in finance and business development within the aerospace industry.

hundleby has nearly 30 years of international industry experience across aviation, defense and manufacturing. with a proven ability to add strategic and financial value to complex businesses, he was most recently general counsel for Peabody Energy Australia, preceded by a decade long stint with the boeing company operating for periods at both its manufacturing headquarters in seattle, us and in Australia.

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strAtA driviNG Growth oF AErosPAcE MANuFActuriNG Across uAE

2015 hiGhliGhts

• Mubadala’s aerostructure manufacturer contributing to Abu Dhabi Economic Vision 2030

• Innovation, digitization and global value chain development to drive future growth

strata’s key business highlights for 2015 as the company continues to focus on expanding its presence across the aerospace industry through the development of local and global supply chains and the expansion of its client base.

strata’s revenue for 2015 crossed 400 million dirhams, up 27 percent on 2014 figures. during the year, strata delivered over 433 shipsets, consisting of more than 7,511 parts – representing 29 percent growth in the total number of parts manufactured in 2014. strata also embarked on an expansion project to increase the shop floor area to 31,500 m2, adding a new extension of 10,000 m² of usable production space to accommodate new work packages.

Commenting on the announcement, Badr Al Olama, CEO of Strata, said:

“For the last five years we’ve focused on developing strata’s capabilities in order to become a globally competitive aerostructures manufacturer in line with the Abu dhabi Economic vision 2030, and we are extremely proud of our achievements to date. in 2016, we will embark on a year of transformation. this year we will accelerate into the next stage of growth – driven by innovation, digitization and the further development of global value chains.”

during 2015, strata signed a number of deals that further drove the company’s global competitiveness and supply chain capabilities. strata also placed a strong emphasis on growing its local supplier network in 2015,

and now more than 50% of strata’s suppliers are based in the uAE and have developed extensive knowledge and experience of the aerospace industry. strata also increased the spend on local procurement to almost 40 percent, an increase of 10 percent from 2014.

Deal highlights include:

• Firstinternationaloutsourcingagreement, valued at approximately usd120 million to subcontract its Atr vertical fin and rudder programs to GsE industria Aeronautica srl in italy

• Solesuppliercontracttoprovideaileronassemblies to Airbus for the A330 and A330neo, making strata the single source supplier of ailerons assemblies to Airbus for its A330 programs in a contract worth more than us$250 million.

• AmultimillionUSdollarcontracttomanufacture Airbus A350-1000 Flap support Fairings (FsFs) from swedish company saab Aerostructures through 2023.

with the focus firmly on future growth, strata also announced the creation of a new research & development (r&d) unit to support its growing portfolio of products and capabilities to develop manufacturing technologies for current and future work packages.

the r&d initiatives will be run in collaboration with strata’s international partners and local research facilities established within leading uAE academic institutions.

“our new r&d offering promotes technological development within the aerospace industry and will strengthen strata’s global competiveness – paving the way for us to become one of the top three composite aerostructure manufacturing companies globally,” Al olama said.

strata continues to invest in building a leading Emirati workforce in the aerospace industry, it celebrated the growth of its national capabilities within one of the most complex industries worldwide, strata currently has 19 Emirati female team leaders from a group of 40 team leaders and 2 Emirati females within a group of 8 team supervisors. the company also celebrated in 2015 the graduation of 41 uAE nationals from the eighth and ninth classes of its Aerostructures technician training Program.

created in partnership with the united Arab Emirates university (uAEu) and lockheed Martin in 2010, the program was established to develop the knowledge base and skill set of young Emirati technicians in a hands-on and engaging environment.

strengthening the program further, the Ministry of social Affairs and strata signed a Memorandum of understanding (Mou) to partner in the advancement and skill development of uAE Nationals. the partnership aims to build a leading Emirati workforce in the aerospace industry, and strives to enhance the standard of living for people receiving social support, by providing them with professional career opportunities.

January 2016 ISSUE 10 7

8 9 January 2016 ISSUE 10

strAtA EMbrAcEs chANGE iN thE diGitAl AGEstrata is part of a digital revolution. led by Jonathan bray, the digital Manufacturing and innovation department (dMi) is steering the company towards a future that is paperless, fully digital and tech-savvy. the department’s five-year goal is to implement a collaborative, cross-functional working environment for all employees. it is also working to decrease lead times and improve product quality by standardising and simplifying manufacturing processes across all departments.

the digital Manufacturing and innovation department is divided into two teams: the Product lifecycle Management team (PlM) and the Numerical control team (Nc). the PlM team is introducing systems including Enovia, cAtiA and delmia to help integrate the people, data and processes involved in the lifecycle of any strata product. PlM is also capturing real time data to improve communication and analysis; this will ultimately reduce risk and increase profit.

the dMi has launched two key initiatives: the digital smart Factory and Next Generation Manufacturing.

The Digital Smart Factory: Delivering a new way of working

thanks to the advent of tablets and digital kiosks, a paperless and mobile work environment is within reach. the dMi is working to remove paper-based workflows by introducing industrial touchscreen monitors and shop floor touch computers; these will be used to display 3d work instruction sheets, live data, manufacturing updates and much more. Also, an electronic signature and approval process will be implemented to help simplify and streamline all business procedures.

the dMi is transforming strata into a digital workplace with the ANdoN alert system, which instantly notifies the engineering, logistics and maintenance teams of any problem during the manufacturing process. After testing in the A330 Aileron assembly area, ANdoN will be rolled out across the company by the end of 2016.

Next Generation Manufacturing: 3D printing & additive manufacturing

3d printing technology is transforming how the manufacturing industry operates – and strata is embracing this rapidly evolving technology to produce parts faster and more efficiently.

since 2014, the dMi team has been using a 3d printer to print complex shapes that cannot be produced by traditional methods. led by huda al Nuaimi and darrell Monaghan, the team is also using a 3d printer to replace aerospace consumables with 3d parts; this has saved both time and money. For example, assembly tooling aids for the A350-900, which originally cost dhs.1,000 each, have been printed at a fraction of the cost and in greater volume.

currently, the dMi is working with united Arab Emirates university (uAEu) interns to ‘create’ a 2d aircraft drawing, using cAtiA design applications and a 3d printer. Going forward, the dMi team will carry out a case study on consumable tooling in fabrication, assembly and non-destructive testing to identify the benefits of 3d printing for strata in the future.

About Abu Dhabi Aviation and Aerospace Week

the inaugural Abu dhabi Aviation and Aerospace week (AdAAw) was held from March 6-10, 2016 under the patronage of his highness sheikh Mohammed bin Zayed Al Nahyan, crown Prince of Abu dhabi and deputy supreme commander of the uAE Armed Forces and in collaboration with the Armed Forces General headquarters.

AdAAw brought together a collection of world-class and innovative events, exhibitions, conferences and seminars across all aspects of aviation and aerospace.

Strata’s presence during the Global Aerospace Summit

the third edition of the Global Aerospace summit (GAs) was held during AdAAw from March 7-8, 2016 in Abu dhabi. the summit is one of the most significant international forums for decision makers in the global aerospace, aviation, defense and space sectors. this year’s overarching theme was innovation and attendees gathered to discuss key challenges facing the aerospace, aviation, space and defense industries.

Abu dhAbi AErosPAcE wEEkA key highlight for strata was its participation at the u.s.-u.A.E. business council & AiA Global Aerospace summit reception which highlighted bilateral aerospace & defense relationships in the industry.

the event welcomed senior business executives and government officials on sunday March 6, 2016 for an exclusive reception honouring Emirati and u.s. participants at the 2016 GAs. held at the ritz carlton Abu dhabi, the reception featured keynote remarks by badr Al-olama, senior vice President for Mubadala and cEo of strata Manufacturing PJsc, the honorable barbara A. leaf, u.s. Ambassador to the u.A.E., and david Melcher, President & cEo of AiA.

badr Al olama, strAtA cEo’s keynote remarks stressed the importance of the summit in bringing stakeholders together to invest in solutions for challenges impacting the aerospace industry. he underscored the importance of strata, the only manufacturer of aircraft composite parts in the Arabian Gulf, in furthering the Emirate’s economic diversification plan and highlighted that strata’s construction of a second plant in Al-Ain will develop a new generation of aircraft components. he also emphasized the important steps taken by strata and their u.s. partners such as boeing to enhance the robust relationship between u.s. and u.A.E. businesses.

Strata’s CFO, Amer Siddiqui speaks at the Global Aerospace Summit

Amer siddiqui, strata’s cFo spoke at a panel on why the aerospace industry is slow in adopting new technology. the session discussed how manufacturers are continually required to upgrade their technologies to produce products that meet the client’s needs and business targets. As well as innovating themselves. the session also discussed the changes in aerospace manufacturing and how new technologies are affecting the advancement of innovation and efficiency.

Strata’s presence during Abu Dhabi Air Expo

starta was honoured by the gracious visit of his highness sheikh hamed bin Zayed Al Nahyan, chief of the Abu dhabi crown Prince’s court during the opening of the Abu dhabi Air Expo 2016.

Abu dhabi Air Expo was dedicated to general and business aviation. the Exhibition brings together major players in aviation in one location, Al bateen Executive Airport, Abu dhabi. during the exhibition, strata demonstrated to the public the aircraft parts it manufactures and its role in developing the aerospace industry in uAE.

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crEAtiNG A culturE oF QuAlity what can explain strata’s global success over the past few years? strategy, yes. talent, definitely. the key to our success, though, also lies in our culture of quality.

strata fosters a culture where employees ‘live’ quality in everything they do. we encourage our teams to embrace quality in the workplace and at home. we empower employees to generate initiatives that focus on improving our quality of service. Also, we inspire our workforce to feel passionate about quality as a personal value. in short, strata employees can see, hear, feel and talk about quality all around them.

Quality is embedded deep within strata’s culture. Employees are made to feel in control of their jobs and given a sense of pride and ownership of their work. they are also encouraged to strive for excellence and deliver quality products and services that exceed client requirements. this is all made possible because strata promotes open communication, collaboration with

other departments, and respect and trust between employees.

strata is focused on working towards a key set of high quality deliverables:

• Aworkforceofproudandengaged employees

• Clearlydefinedrolesandresponsibilities for all departments and employees

• Performancetargetsforalldepartments and employees

• Continuouscareerdevelopmentforall employees

• Employeesatisfactionandprideintheir work

• Bestpracticerecruitmentprocedures

to help foster a quality of culture, we are committed to providing a safe, healthy and secure workplace for our employees. we comply with all industry regulations

and legislations, and meet, if not exceed, international standards for quality.

in 2016, we have achieved the following:

• QMSEN/AS9100annualsurveillance audit – without findings

• NADCAPCompositesannualaudit

• HSEannualsurveillanceauditon iso14001 and ohsAs 18001

• CompletedAirbusqualificationformajor composites repairs

• FACCdelegationandStrataemployees signed EAsA Form 1 (Airworthiness certificate)

• AyshaKhalifaAlKaabibecamethe first uAE National strata Ndt inspector to complete the x-ray level 2 training, in accordance with the international aerospace standard EN 4179

January 2016 ISSUE 10

Airbus A330 NEo FtFthe strata team are currently manufacturing the first parts for the A330 New Engine option (NEo) program. the parts will be tested in strata’s laboratory to confirm they are meeting the engineering specification. Following those tests, strata will produce 3 shipsets for flight trials this year.

SABCA/AirBUSA350-900FTFthe sAbcA work package is now in production and ramping up to meet the required production rate.

SAAB/AirBUSA350-1000FSFthe first set of fixed fairings have been completed and sent to sAAb. the movable fairings are now in work and due to complete and be dispatched to sAAb for fitment to the flight test aircraft.

Airbus A330 AilEroN NEothe Aileron NEo project is progressing. strata recently received the new tooling required for the project. there are four new layup mold tools, four new trim fixtures and modification kits to the existing assembly tooling. the team will start the qualification process and deliver the new ailerons later this year.

BoEiNg777/787riBSthe 777 and 787 ribs packages continue to deliver on time according to the highest industry standards.

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ProGrAM uPdAtE

12 13 January 2016 ISSUE 10

strAtA’s EvENts

Strata Barbecue - 21 January, 2016strata surprised its employees with a barbecue at the Al Ain international Airport Park.

Strata participates at the GlobalWomen’s Forum23 - 24 February, 2016 strata participated at the Global women’s Forum and showcased its manufacturing techniques

Strata wins Bridge of Excellence award at AmCham Abu Dhabi Gala - 30 January, 2016strata won the bridge of Excellence Award at the 2016 Amcham Abu dhabi Excellence Awards Gala. the Award recognizes an organization that demonstrates commitment to cross-border business alliances between the united Arab Emirates and the united states of America, and bridges the gap in bilateral trade relations that contributes to building local capabilities and a knowledge based economy.

Strata featured as Platinum Sponsorship of UAE-UK Pioneers Forum - 12 March, 2016strata was a platinum sponsor of the third annual uAE-uk Pioneers Forum held in london, uk. Arranged by the uAE Embassy in the united kingdom, the forum gave students studying in the united kingdom and European union a chance to interact with business leaders and understand the job opportunities available to them in the uAE.

Mother’s Day - 21 March 2016strata celebrated Mother’s day along with vlcc, and honored all mothers by providing all employees with special offers and vouchers for different services as well as distributing customized cupcakes and roses to employees

Strata Participates at the Global Financial Markets Forum2 - 3 March, 2016hosted by the National bank of Abu dhabi (NbAd), strata participated in the Global Financial Markets Forum (GFMF). the Forum represented an opportunity for networking and growth; an opportunity for developing interdependencies that broaden our horizons, unlocking new possibilities for strata, and the uAE economy as a whole.

Strata participates at the Department of Economic Development Forum15 March, 2016ismail Abdulla, deputy chief Executive officer, presented strata’s story and achievements during an event held by the department of Economic development – Al Ain branch.

strata and boeing celebrated the delivery of 100th 777 Empennage ribs shipset. the delivery of the 100th Empennage rib shipset is an important milestone in reinforcing the value and capability strata offers boeing and its airline customers. in 2012, boeing and Mubadala announced a 10-year direct contract for strata to produce carbon fiber composite 777 empennage ribs and 787 vertical fin ribs making strata boeing’s first direct composites supplier in the Arab world.

in line with Abu dhabi’s Economic vision 2030 to promote economic diversification, strata is contributing to a diversified and sustainable knowledge-based economy, with a focus on developing Emirati talent – at home and abroad.during the event, strata interacted with students to promote careers in the aerospace industry – explaining the high growth of manufacturing composite aircraft components and career development opportunities for Emirati’s at strata.

International Day of Happiness - 20 March 2016the winners are: 1- larah rebutar 2- Zainab Al Mahdi

the Amcham Abu dhabi Excellence Awards Gala is a celebration of the most distinguished companies, institutions, and entrepreneurs in Abu dhabi. these prestigious awards reflect the contributions of best-in-class American and Emirati individuals and organizations to business in the uAE and u.s.-uAE commercial relations.

Boeing and Strata celebrate delivery of 100th 777 Empennage Rib shipset - 6 March, 2016

Strata’s Walk-a-thon - 25 February, 2016 strata held a walk-a-thon for its employees to promote a healthier lifestyle

strAtA’s visitors

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زيارة سفير كندا12 يناير

CANADIAN AMBASSADOR’S vISIt12 JANuARy

زوار ستراتا

15

BRItISh EMBASSy vISIt 17 FEBRuARy

DASSAult SyStèMES vISIt 16 MARCh

زيارة الســفارة البريطانية17 فبراير

زيارة داســالت سيستمز16 مارس

thE Al NOkhBA SChOlARShIp vISIt6 JANuARy

EMBASSy OF FRANCE vISIt2 FEBRuARy

زيــارة برنامــج النخبة إلعداد الكوادر الوطنية6 يناير

زيارة الســفارة الفرنسية 2 فبراير

AvIAtION CAMp vISIt 30 MARCh

مخيم الطيران 30 مارس