A breakdown of group revenue by operating segment and business line is given in the directors’ report (see Errore. L’origine riferimento non è stata trovata.), while geographical segment reporting is provided in the notes (see Errore. L’origine riferimento non è stata trovata. Errore. L’origine riferimento non è stata trovata.).
The group’s turnover maintains a moderate level of concentration in terms of customer and country as a result of the oligopoly nature of its main market, which consists of helicopter OEMs, and due to the complexity of the diversification underway for some time.
Indeed, the diversification process is connected with the high investment rate in new product development, with a rather long maturation cycle, that the group pursues in terms of
- expanding the production range – with the effect of offering more products and services for the same aircraft;
- the addition of new applications for its products/services – with the effect of broadening the potential market for these products/services.
In each of these cases, business relationships with customers include a significant degree of integration and long-term consolidation.
For the above reasons, an analysis of customers by size shows that nearly all group customers are in extremely large groups, global competitors which are often conglomerates.
QUALITY MANAGEMENT SYSTEM
The quality management system is crucial for companies operating in the industrial aerospace sector if they are to operate as an aerospace organisation and is an essential condition for business continuity.
As such, it can be divided into two main parts:
- the general quality system (an industry standard), as for advanced industrial companies in general, supplemented by environmental and workplace safety management systems,
- specific certification, such as for the organisation of production and the development and maintenance of aerospace products.
Both parts are aimed at achieving the following objectives:
maintaining adequate customer satisfaction by meeting current (and potential) requirements,
- striving for continuous improvement in processes and products,
- integrating the supply chain, which is qualified based on industrial criteria in a continuous improvement process,
- improving business performance.
These targets are pursued through the investment of resources and organisational aspects and can be tangibly seen in the obtaining and maintenance of certification, the result of a company culture that strives to uphold the principles of quality.
In terms of numbers, current expenses1 and quality investments can be summarised as follows (amounts in thousands of Euros):
|Equipment and measurement and inspection tools operationinvestment|
|Technical standards, software, publications||1||1||2||2||5|
|Trials and tests (laboratories, universities, entities)||209||138||35||93||72|
|Quality assurance/control staff||44||43||46||51|
The following table summarises the main certifications of the group’s sites and organisational units:
|Industry standard||AS/EN 9100:2016||Borgomanero (IT), Monteprandone (IT), Laval (Can)|
|AS/EN 9110:2016||Borgomanero (IT), Monteprandone (IT)|
|Ministry of Defence (IT)||AER-Q-2110||Borgomanero (IT), Monteprandone (IT)|
|European Aviation Safety Agency (EASA)||Design Organization Approval (Part 21 J)||Monteprandone (IT)|
|Production Organization Approval (Part 21 G)||Borgomanero (IT), Monteprandone (IT)|
|Maintenance Organization Approval (Part 145)||Borgomanero (IT), Monteprandone (IT), Laval (Can)|
|Continued Airworthiness Maintenance Organization (Part M)||Monteprandone (IT)|
|Federal Aviation Administration (FAA)||Repair Station (Part 145)||Borgomanero (IT), Philadelphia (USA)|
|Transport Canada Civil Aviation (TCCA)||CAR 573 (Part 145)||Borgomanero (IT)|
|Manufacture and Certification (AWM 561)||Laval (Can)|
|Maintenance Organization Approval (CAR 573.02)||Laval (Can)|
|Special Process NADCAP Accreditation||Non Desctructive Testing||Borgomanero (IT), Laval (Can)|
|Conventional Machining as a special Process|
|Customers approvals Airbus Helicopters||Leonardo Helicopters|
|Service Center AgustaWestland|
|Diamond Aircraft Industries|
|Piaggio Aero Industries|
|Service Center Woodward HRT|
|Type Certificates Helicopters||Model NH 300C|
|Model NH 500D|
|Model AMD 500N|
The group also holds a series of product certifications, some of which are the equivalent of industrial design rights (e.g. STC), described in the section on new product development.
The group measures the quality management system’s overall reliability using key performance indicators (KPI), which are continuously monitored both internally and in conjunction with customers.
The KPI system differs depending on the type of activity and customer.
There were no legal disputes with customers at the reporting date.
Costs to repair products under warranty have traditionally remained within normal levels and are provided for by constantly adjusting the provision for product warranties. At 30 September 2019, the provision for product warranties totalled €2,523 thousand, adequate to cover the potential interventions for each of the projects for which the group has contractual warranty obligations. More complete information in this regard is provided in the notes to the consolidated financial statements (Errore. L’origine riferimento non è stata trovata. Errore. L’origine riferimento non è stata trovata.).
The data do not include internal costs (e.g. hours of training taught by internal personnel). ↩