F-35 A Lightning II Australia s Next Generation Air

F-35 A ‘Lightning II’ Australia’s Next Generation Air Combat Capability UNCLASSIFIED New Aircraft Australian Business Defence Industry Unit Lunch Air Vice-Marshal Kym Osley Program Manager New Air Combat Capability February 2013 PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

UNCLASSIFIED New Air Combat Capability First Australian F-35 As are being produced at this time PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

AU-1 is on the production line! UNCLASSIFIED New Air Combat Capability PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

F-35 Family of Aircraft UNCLASSIFIED New Air Combat Capability Conventional Take-Off and Landing (CTOL) Carrier Variant (CV) Roll Nozzle Lift Fan 3 -Bearing Swivel Duct Short Take-Off Vertical Landing (STOVL) PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

Situational Awareness UNCLASSIFIED New Air Combat Capability Multi-Spectral Sensors Radar Day Ground Moving Target Electro-Optical Missile Warning Fused Tactical Information Managed & Displayed To The Pilot Night PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

JSF Partner/FMS Update UNCLASSIFIED New Air Combat Capability • All 8 non-US partners remain with the Program – US – still after 2443 aircraft – Italians – first three aircraft LRIP 6 (2014), FACO by early 2013. Recently reduced to 90 total. – Dutch – first two aircraft 2012, then rest to start later in decade. – Norwegian Parliament agreed four aircraft – and brought forward buy – Turkey has agreed first two aircraft and confirmed 100 reqd. – UK – has first two and third soon. Back to STOVL – Canadians – 65 aircraft and. Need to extend CF-18 • FMS – – Israel’s - 19 JSF (media reports of additional SQN) Japan’s - confirmed order for 42 – first two to be delivered in around 2016 South Korea - FX-III competition (60) Singapore – very interested PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

USAF Fighter Procurement UNCLASSIFIED New Air Combat Capability 400 Air Force Annual Fighter Buy 350 300 FY 80 -90 average - 227 250 200 F-117 150 100 -90% F-16 A/D A-10 50 F-15 E F-15 C/D F-22 0 80 83 86 89 F-35 A FY 91 -10 average - 25 92 95 98 1 4 7 10 Fiscal Year PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

F-35 to be Predominant Aircraft in USAF Combat Air Forces UNCLASSIFIED New Air Combat Capability F-22 F-35 Fighter Inventory F-15 C F-16 F-15 E A-10 A 11 13 15 17 19 21 23 25 27 29 31 33 35 Fiscal Year PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

UNCLASSIFIED New Air Combat Capability • We are contractually committed to two and they will be delivered in 2014 -2015 in the United States for testing and training purposes. • We have previously announced a commitment to purchase another 12 and that commitment will occur but it will occur two years after the previously anticipated timetable. • We remain committed to the Joint Strike Fighter project Stephen Smith MP, Minister for Defence, 3 rd May 2012 PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

UNCLASSIFIED New Air Combat Capability • Will develop three options for consideration in the context of the 2013 -14 Budget • In the course of 2013, Government will make decisions with respect to those various options. Stephen Smith MP, Minister for Defence, 13 th December 2012 PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

International JSF Program UNCLASSIFIED • • New Air Combat Capability Production – approx 3 -4 months behind (mainly due to recent strike) Flight test – overall slightly ahead of schedule (approx 35% complete for CTOL) – but CTOL slightly behind Development Phase – still adequately funded Software development – better – but some delay, and migration of capability – Block 1 delivered – Block 2 A – four months late – Block 3 I – through dev flight test April 2015 – Block 3 F – through dev flight test August 2017 – A developmental program and there is still risk in the software schedule PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

Affordability UNCLASSIFIED 1 2009 2 2010 3 2011 4 2012 5 2013 6 2014 7 2014 8 2015 New Air Combat Capability 9 2016 10 2017 11 2018 12 2019 13 2020 14 2021 Production LOT (LRIP) Number and Delivery Year PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

F-35 Production Outlook UNCLASSIFIED New Air Combat Capability LRIP 1 LRIP 2 LRIP 3 LRIP 4 LRIP 5 LRIP 6 LRIP 7 LRIP 8 LRIP 9 LRIP 10 LRIP 11 Buy Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Del Year (+2) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total 2 12 17 32 32 36 37 54 85 124 139 Currently in build PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

Industry Participation UNCLASSIFIED New Air Combat Capability PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

F-35 Australian Suppliers as at August 2012 UNCLASSIFIED Centre Fuselage Composites Quick. Step New Air Combat Capab Airframe & System Component Machining Lovitt, Ferra, Levett, Aerostaff & Production Parts Vertical Tails Marand, BAES & Quickstep Airframe Design & Stress Analysis GKN & Vipac Ejection seat wiring Cablex Voice Recognition Software Adacel Engine Trailer Marand adar, TPS & EW Components Cablex, BAES, Micreo, Partech Systems & CSC CNI Chassis TAE Engine component Production Parts, Broens, Hofmann Metaltec & Levett Corrosion Sensors BAES Aust Flares Chemring Actuators (Landing Gear, Bay Doors & Utility) Goodrich Control Systems & Composite Tooling Weapon Adapters Marand, Broens & Rosebank Engineering Ferra Hofmann Metaltec Handling Fixtures Varley, Broens Shipping Containers Trimcast Engineering support - ITC Training Courseware Design JSF Studies Kellogg, Brown & Root Calytrix, BAES & Design Marand Thales PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

Industry challenges UNCLASSIFIED New Air Combat Capab • Work is only won on ‘international best value’ • JSF partners all manoeuvring for a good industry outcome • Reduced early production numbers (slip to right) • All companies cutting margins due Global Financial Crisis • Strong AUS dollar PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

Why Seek JSF Work? UNCLASSIFIED New Air Combat Capab • Only the JSF Partner nations can bid for JSF work on the 3000 planned Partner aircraft • The work is very much high value added • L-M and other primes tend to provide access to training and accreditation that allow companies to bid for other high tech work. • JSF – once at full production – will be a significant source of business for involved industry • JSF sustainment offers some businesses ongoing opportunities for the period out to 2040+ PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

JSF Industry – ‘Ferra’ UNCLASSIFIED New Air Combat Capab • Queensland-based company • Making weapons adapters for F-35 • But diversified into other military and commercial aerospace • Also renewable energy and medical devices “…The staff within the Defence Industry Innovation Centre were able to provide us with a detailed understanding…subsequently assisted Ferra Engineering to secure F 35 Joint Strike Fighter adaptor contracts …. valued at approximately $340 m…will ensure Ferra Engineering remains an active member of the Australian Aerospace industry for many years to come. ” PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

JSF Industry – ‘Quickstep’ New Air Combat Capab • West Australia (soon NSW) based company UNCLASSIFIED • Making composite panels for F-35 • Diversifying into other military aerospace (eg C-130 J flaps) Quickstep recently won the 2011 Manufacturer of the Year (Manufacturer’s Monthly Magazine) as well as the Global Integration Award - “…Quickstep highlighted how Australian manufacturers can successfully compete against the best in the world. As part of the F-35 program, Quickstep has successfully overcome the many entry barriers faced by new participants in the defence manufacturing sector, possibly the highest of any industry in the world…. ” PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

JSF Industry – ‘Marand’ UNCLASSIFIED New Air Combat Capab • Melbourne based company • Making engine trailers for F-35, and working with BAES and Quickstep on 722 shipsets of F-35 vertical tails. • Diversified into rail, automotive, aerospace and general engineering On 3 rd May 2012, Marand was awarded the prestigious Manufacturer of the Year award (Large Business). Marand is the inaugural winner of the award and was selected by industry experts against a criteria including export performance, enabling technologies utilised, innovation in manufacturing, quality management and sustainable practices amongst others. PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

FMS vs Partner UNCLASSIFIED New Air Combat Capability • Bidding for the manufacture of parts for partner aircraft limited to Partner nation industry • FMS can make parts for their own aircraft and other FMS customers • However, FMS can negotiate with US companies to get some of their ‘strategic’ business • Japan: – They will have a FACO for their aircraft, and perhaps other FMS aircraft. • Israel: – In media that Israel will make some wing sets on behalf of L-M PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

How can NACC Help Industry? UNCLASSIFIED New Air Combat Capab • Director JSF Industry Support Team – John Wilshire – Canberra - (02) 6144 1535 – Two staff members in the US • Establish contacts • Get you through the (right) door • Strong ‘customer’ voice to the US primes (L-M/P&W) – Australian JSF Industry Group • Two types of work: – Strategic – for Australian companies to lose – Global supply chain competitive • NACC Industry Support Program PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

NACC Industry Support Program UNCLASSIFIED New Air Combat Capab • Aim – provide Australian companies/research with seed funding to develop new or improved capabilities to allow Australian industry to be more competitive. – Have a total of $8. 2 m in grants available. – Six grants to date • What grants are available: – <$1 m for improved technologies that offer savings to JSF supply chain. – <$250 K to enhance a company’s competitiveness to win work. – <$300 k for Australian research centres to do research that leads to improvements in the JSF supply chain. PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

Contractor In-Country Support UNCLASSIFIED New Air Combat Capability • Operating maintenance: – – – – – Canopy – WLM Battery – WLM Wheels and Tyres – WLM Support Equip – probably mainly local industry Propulsion – WLM and TDL – possible regional repair centre in Australia Pilot equip fitting facility – WLM SOAP – WLM Avionics test – probable at WLM Gun - WLM PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

Contractor In-Country Support UNCLASSIFIED New Air Combat Capability • Deeper maintenance: – – – Scheduled and unscheduled DM - WLM Modification incorporation – WLM Phased inspection – WLM (TBA but could be 300 hrs) LO acceptance test – GOCO – contractor and DSTO LO paintshop – GOCO • Supply Chain – Off base regional holdings – Potential on base contractor facility for on-delivery to SQNs • Training – Turn-key contractor operation – excluding pilot flying instruction and maintenance of training jets. – Maintenance instruction contractor provided • Contractor support of ALIS hardware and software support PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM

UNCLASSIFIED New Air Combat Capability PROFESSIONALISE | RE-PRIORITISE | STANDARDISE | BENCHMARK | IMPROVE INDUSTRY RELATIONSHIPS AND INDUSTRY PERFORMANCE | LEAD REFORM