JR-PORT-email

1Jose Rodrigues | Portfolio
Senior Creative Artworker to assist with various project, ranging
from layouts within approved design style through to technical
artworking. Joined the studio for a short-term booking and we
extended and re-booked to assist with project specific needs.
My responsibilities included:
>> Production of new property sales material, choosing new
images and updating copy, table data and floor plans
(InDesign)
>> Tidying up of property floor plans to be dropped into
marketing flyers along with corresponding property image
for new planned development (Illustrator/InDesign)
>> Local area map updates (Illustrator)
>> Creation of Sydney suburb map (Illustrator)
>> Production of long format document (InDesign)
BENCH CREATIVE

BENCH CREATIVE

3
Available in a range of urban design variations
reflecting natural earthy tones and colour palettes,
the Brindabella is a beautiful yet practical home
built in consideration of strict ACT building codes.
Catering to the needs and wants of the modern
family, this spacious two storey home comes
equipped with a number of rooms and break
out spaces.
The contrasting tones and textures of the home’s
façade make for a stylish and dramatic first
impression. Yet where the Brindabella really stands
apart, is in delivering on cutting edge style and
sophistication without foregoing practicality or
space. A glass filled entryway creates an open
and welcoming feel, enriching the home with an
abundance of light. This sense of warmth is further
amplified in the living room area, a space that lends
itself perfectly to both entertaining and relaxing
family moments.
Located on the ground floor for maximum privacy,
the luxurious master bedroom comes equipped
with a semi-exposed ensuite and walk in wardrobes.
This opulent resort-style master suite provides the
perfect sanctuary for parents or couples wanting to
unwind in peace away from the home’s remaining
three bedrooms.
Designed with entertaining in mind, the Brindabella’s
hallway leads to a formal living room and alfresco
dining space which act as the perfect dwelling areas
for socialising with guests. The combined kitchen,
family and dining area is the epicentre of the home,
helping ensure that the whole family starts and ends
the day together.
DESCRIPTION OF ENTRY
2 RAWSON HOMES EXHIBITION/PROJECT HOME $350,001 AND OVER
“Where the Brindabella really
stands apart, is in delivering
on cutting edge style and
sophistication without foregoing
practicality or space.”
The first floor has been created with practical,
everyday living in mind. Upstairs you will find the
remaining three bedrooms along with a separate
media room or study area, acting as the perfect
private zone for children and teenagers. Planned
with families in mind, a second ensuite and separate
bathroom allow for plenty of recreational space for
children of all ages.
The Brindabella model is adaptable and functional,
offering a variety of floor plan options and façade
styles. Averaging 25.4 square meters in size, it can
be tailored to suit a range of block sizes, personal
tastes, life stage requirements and streetscapes. If
you’re in search of a home that offers the spacious
and stylish lifestyle you’ve always wanted, you need
look no further than the Brindabella.
3RAWSON HOMES EXHIBITION/PROJECT HOME $350,001 AND OVER
MATERIAL MANUFACTURER/COLOURS
Hebel Taubmans - White Pearl
Cladding Taubmans - Pebble Bay
Timber Screening - Deco Wood Kwila Natural
Feature Columns Crème Alpenia Limestone
Roofing Colorbond – Wallaby
Windows Colorbond – Basalt
Fascia Colorbond – Wallaby
Gutter Colorbond – Wallaby
Downpipes Colorbond - Surfmist
Front Door Lumina LUM 1NS (clear glazing) - Colorbond Basalt
Rear Door Aluminum Bi-fold Doors - Colorbond Basalt
Internal Doors Flush panel door with painted finish
Front Door Furniture Gainsborough Omni back to back (stainless steel)
External Door Furniture
Carla lever handle & 1951 deadlock and Amelia lever handle & 1951 deadlock
in satin chrome finish
Internal Door Furniture 105 AME Amelia lever handle in satin chrome finish
Carpets TBA
Main Flooring TBA
Insulation Bradford R3.5 batts to ceilings & R2.0 batts to external walls
Kitchen Bench Top Caesarstone 80mm – Bianco Drift 6131
Island Bench Top Caesarstone 80mm – Bianco Drift 6131
Kitchen Cupboards Polytec melamine – Polar White in sheen finish
Island Bench Cupboards Polytec melamine – Polar White in sheen finish
Kitchen Splashback Feature window (clear glazed)
Kitchen Sink Clark Evolution 1.75 end bowl sink (over mount)
Kitchen Tapware Dorf Jovian pull down sink mixer
LIST OF MATERIALS
Oven/Cooktop
Westinghouse 900mm WFE914SA stainless steel multifunction upright
cooker with 5 burner gas hob
Rangehood Westinghouse 750mm EFG750X/A stainless steel integrated rangehood
Dishwasher Westinghouse WSU6603XR dishwasher
Microwave Westinghouse WMS281SB microwave
Bathroom Vanity Top Caesarstone 40mm – Bianco Drift 6131
Bathroom Cupboards Polytec melamine - Natural Oak in matt finish
Basins Fowler Regent Inset
Toilet Suites Stylus - Prima closed coupled toilet suite
Shower Screens Fully frameless with clear glass
Bath 1700mm Blanc freestanding bath
Tapware
Wall mounted Stylus pin chrome mixer & Caroma Liano tapware to basin
and bath Caroma Mystic handheld shower with rail to shower
Accessories Caroma Cosmo towel rail and toilet roll holder
Bathroom Floor Tile TBA
Bathroom Wall Tile TBA
Bathroom Feature Tile TBA
Laundry Bench Top Caesarstone 40mm – Bianco Drift 6131
Laundry Cupboards Polytec – Polar White in sheen finish
Laundry Sink Clark 45 litre stainless steel tub
Laundry Floor Tile TBA
MATERIAL MANUFACTURER/COLOURS
FAMILY
4.85 X 3.85
LIN
GARAGE
PORCH
ENTRY
LOUNGE
3.95 X 2.90
ALFRESCO
INCLUDED
KITCHEN
3.45 X 2.58 LAUNDRY
WC
WMST
FR
DWS
P
BED 4
3.00 X 3.00
BATH
BIR
BIR
DINING
3.75 X 2.85
ST
ENS
BIR
BED 2
3.38 X 3.10
BED 3
3.34 X 3.00
LIN
BED 1
4.17 X 3.90
LEISURE
3.99 X 3.50
WIR
Ground Floor 84.33m² Porch 1.40m² Total 26.3 Squares
First Floor 111.97m² Alfresco 14.51m² Overall Width 10.100m
Garage 32.48m² Total 244.68m² Overall Length 14.460m
2 26.34 2
KINGSTON 26
BED 5
3.00 X 3.00
BIR
ENS
2ND LIVING
3.85 X 3.10
ALFRESCO
INCLUDED
DINING
3.75 X 2.66
FAMILY
4.50 X 3.85
DWSFR
P
GARAGE
PORCH
ENTRY LOUNGE
3.95 X 2.90
LIN
LAUNDRY
WC
WMS T
ST
BED 1
4.20 X 3.34
MEDIA
4.50 X 2.62BED 4
3.00 X 3.00
BED 3
3.00 X 3.00
BED 2
3.29 X 3.00
BIR
BIR
BIR
ENS
BATHRM
LIN
BIR
KITCHEN
3.45 X 2.48
Ground Floor 112.14m² Porch 1.40m² Total 27.7 Squares
First Floor 93.84m² Alfresco 18.00m² Overall Width 10.100m
Garage 32.47m² Total 257.85m² Overall Length 20.340m
2 27.75 3
KINGSTON 28
FACADE OPTIONS
CLASSIC
MAJESTIC
REGAL
TREND
VOGUE
Jose Rodrigues | Portfolio
BENCH CREATIVE

Senior Creative Artworker to assist with roll-out of
retail shopping centres seasonal campaigns and various
project, ranging from layouts within approved design style
through to technical artworking. Joined the studio for a
short-term booking and was due to extend to assist with
project specific needs.
My responsibilities included:
>> Creation of adverts for various print and digital mediums ;
ABUZZ and OAMM media, outdoor signage and Facebook/
web tiles (InDesign)
>> Image retouching (Photoshop)
>> Client copy amendments (InDesign)
DDI AUSTRALIA

5
1 2 54
3
3
1 2 54
DDI AUSTRALIA
1. Outdoor signage
2. OAMM horizontal
3. OAMM landscape
4. Facebook event tile
5. Web tile

Barratt Developments is one of the largest residential property
development companies in the United Kingdom.
Barratt has been a long-standing client of Addison for some
years and has gone through several design updates over the
years and this was the last edition we produced for them.
Typically the fundamental elements remained the same
but the look and feel has evolved to give it a more modern
and upmarket approach to reflect on its new and modern
architecture and not just a development company that
has been around for ages.
Losing the overall dark green brand colour and using the
cleaner white approach gave an instant more modern
approach to the design and also dramatically minimised
print cost and production time.
Throughout the years and development of the design means
constant updating of the graphical elements such as chart
and diagrams which is taken on by the production department
as well as the ever evolving copy according to the way the
company wishes to market their cooperation year after year.
BARRATT DEVELOPMENTS

8
1. Revenue
An analysis of the Group’s revenue is as follows:
Notes
2013
£m
2012
£m
Sale of goods 2,442.2 2,162.3
Contract accounting revenue 164.0 161.1
Revenue as stated in the income statement 2,606.2 2,323.4
Lease income 32 2.6 3.4
Finance income 5 12.8 16.9
Forfeit deposits 0.7 0.5
Other income 19.9 16.6
Total revenue 2,642.2 2,360.8
Sale of goods includes £517.2m (2012: £448.9m) of revenue generated where the sale has been achieved using part-exchange incentives.
Proceeds received on the disposal of part-exchange properties, which are not included in revenue, were £304.9m (2012: £271.5m).
2. Segmental analysis
The Group consists of two separate segments for management reporting and control purposes, being housebuilding and commercial
developments. The segments are considered appropriate for reporting under IFRS 8 ‘Operating Segments’ since these segments are regularly
reviewed internally by the Board without further significant categorisation. The Group presents its primary segment information on the basis of
these operating segments. As the Group operates in a single geographic market, Britain, no secondary segmentation is provided.
House-
building
Units
Commercial
developments
Units
2013
Total
Units
House-
building
Units
Commercial
developments
Units
2012
Total
Units
Residential completions 13,246 – 13,246 12,637 – 12,637
Income statement £m £m £m £m £m £m
Revenue 2,592.6 13.6 2,606.2 2,286.8 36.6 2,323.4
Cost of sales (2,236.9) (10.1) (2,247.0) (1,997.7) (29.5) (2,027.2)
Gross profit 355.7 3.5 359.2 289.1 7.1 296.2
Administrative expenses – non-exceptional (103.0) (3.5) (106.5) (99.5) (5.6) (105.1)
Profit from operations before exceptional items 252.7 – 252.7 189.6 1.5 191.1
Administrative expenses – exceptional (2.8) – (2.8) – – –
Profit from operations 249.9 – 249.9 189.6 1.5 191.1
Share of post-tax profit/(loss) from joint ventures
and associates – non-exceptional 7.7 (0.1) 7.6 0.7 (0.3) 0.4
Exceptional loss on joint ventures – (5.4) (5.4) – – –
Loss on re-measurement of joint venture interest
on acquisition of control – – – (10.7) – (10.7)
Profit from operations including post-tax profit/
(loss) from joint ventures and associates 257.6 (5.5) 252.1 179.6 1.2 180.8
Finance income 12.8 16.9
Finance costs – non-exceptional (80.8) (97.7)
Finance costs – exceptional (79.3) –
Profit before tax 104.8 100.0
Tax (29.8) (32.6)
Profit for the year from continuing operations 75.0 67.4
102 BARRATT DEVELOPMENTS PLC Annual Report and Accounts 2013
ACCOUNTS
FINANCIAL STATEMENTS • NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
2. Segmental analysis (continued)
Balance sheet
House-
building
£m
Commercial
developments
£m
2013
Total
£m
House-
building
£m
Commercial
developments
£m
2012
Total
£m
Segment assets 4,442.0 60.1 4,502.1 4,443.5 79.5 4,523.0
Elimination of intercompany balances (34.6) (39.2)
4,467.5 4,483.8
Deferred tax assets 92.1 118.6
Current tax assets 0.4 0.4
Cash and cash equivalents 294.4 150.3
Consolidated total assets 4,854.4 4,753.1
Segment liabilities (1,425.2) (42.2) (1,467.4) (1,437.0) (38.2) (1,475.2)
Elimination of intercompany balances 34.6 39.2
(1,432.8) (1,436.0)
Loans and borrowings (348.4) (343.3)
Consolidated total liabilities (1,781.2) (1,779.3)
Other information £m £m £m £m £m £m
Capital additions 2.0 – 2.0 2.0 0.4 2.4
Depreciation 1.6 – 1.6 1.5 0.1 1.6
3. Exceptional items
In the year ended 30 June 2013 there were the following exceptional items:
Debt refinancing
On 14 May 2013, the Group agreed a comprehensive refinancing package. The Group entered into a new £700m revolving credit facility, reducing
to £550m in June 2016 and maturing in May 2018. The Group will retain the US$80m of private placement notes that were issued in May 2011 and
mature in August 2017 and the £100m term loan that was drawn in July 2011, of which 25% is scheduled to be repaid in 2019, 25% in 2020 and the
balance in 2021. As a result of this refinancing the Group has incurred fees of £14.9m which are being amortised over the life of the facilities. In
addition, the Group has accelerated the amortisation of refinancing fees previously capitalised of £7.8m.
The Group’s private placement notes that were issued in 2007 and 2008 (which amounted to £151.9m equivalent), together with the associated
foreign exchange swaps, were cancelled with effect from 2 July 2013. The interest make-whole of £53.0m has been recognised as an exceptional
charge in the income statement as the Group was irrevocably committed to this repayment as at 30 June 2013.
The Group has cancelled £55m nominal value of interest rate swaps resulting in an exceptional interest charge of £18.5m.
As a result of the refinancing, total exceptional finance costs were £79.3m with a related tax credit of £18.8m.
Part sale of non-current available for sale financial asset
On 13 May 2013, the Group entered into a joint venture, Rose Shared Equity LLP (‘Rose’), with a fund managed by Anchorage Capital Group LLC
(‘Anchorage’). The Group disposed of the majority of its own equity share loans that originated in the period from 1 January 2009 to 31 December
2011 into the joint venture at no gain or loss. Anchorage acquired a 50% interest in Rose for £33.7m. The Group has recognised exceptional
administrative costs related to fees upon this transaction and the comprehensive debt refinancing of £2.8m with a related tax credit of £0.6m.
Impairment of inventory relating to investments accounted for using the equity method
At 30 June 2013, the Group conducted an impairment review of its share of the inventories included within its investments accounted for using the
equity method. This resulted in an impairment charge for the year of £5.4m with a related tax credit of £1.3m. Further details are given in note 14.
In the year ended 30 June 2012, there was the following exceptional item:
Loss on re-measurement of joint venture interest on acquisition of control
In 2006, the Group entered into a joint venture agreement to develop sites in Greater Manchester including one in Hattersley. The Group’s joint
venture partner went into liquidation in March 2012 and on 9 May 2012 the Group acquired its share for £1. As required by IFRS 3 (Revised)
‘Business Combinations’, the Group has disposed of its share in the joint venture entities and acquired the entities as subsidiaries resulting
in an exceptional loss of £10.7m. Further details are provided in note 33.
103BARRATT DEVELOPMENTS PLC Annual Report and Accounts 2013
Our aim is to be recognised
as the nation’s leading
housebuilder, creating
communities where people
aspire to live.
• Total completions, including joint ventures,
up 6.3% to 13,663 (2012: 12,857) for the full year
• Private average selling price up by 6.0%
to £213,900 (2012: £201,800)
• Revenue up 12.2% to £2,606.2m
(2012: £2,323.4m)
• Operating profit before operating exceptional
items up 32.2% to £252.7m (2012: £191.1m)
• Operating margin before operating exceptional
items increased to 10.4% (2012: 9.5%) in the
second half and 9.7% (2012: 8.2%) for the full year
• Profit before tax and exceptional items up 73.7%
to £192.3m (2012: £110.7m). After exceptional
items of £87.5m (2012: £10.7m), profit before tax
was £104.8m (2012: £100.0m)
• Significant reduction in net debt to £25.9m
(2012: £167.7m)
• Good opportunities in the land market with
18,536 plots (2012: 12,085 plots) approved
for purchase in the year
Revenue
£2,606.2m
(2012: £2,323.4m)
Operating profit before operating exceptional items
£252.7m
(2012: £191.1m)
Adjusted earnings per share before exceptional items
14.6p1
(2012: 8.1p)
Net debt
£25.9m
(2012: £167.7m)
1 Basic earnings per share 7.7p (2012: 7.0p). VISIT OUR ONLINE REPORT AT:
www.annualreport.barrattdevelopments.co.uk
WELCOME TO BARRATT DEVELOPMENTS PLC
PERFORMANCE HIGHLIGHTS
FIVE YEAR RECORD
2013 2012 2011 2010 2009
Group revenue (£m) 2,606.2 2,323.4 2,035.4 2,035.2 2,285.2
Profit/(loss) before tax (£m) 104.8 100.0 (11.5) (162.9) (678.9)
Share capital and equity (£m) 3,073.2 2,973.8 2,930.1 2,900.2 2,331.6
Per ordinary share:
Basic earnings/(loss) per share (pence1
) 7.7 7.0 (1.4) (14.5) (89.1)
Dividend (interim paid and final proposed (pence)) 2.5 – – – –
1 Earnings per share for the year ended 30 June 2009 was adjusted to reflect the Rights Issue on 22 September 2009 as required by IAS 33 ‘Earnings per Share’.
FINANCIAL CALENDAR
The following dates have been announced or are indicative of future dates:
Announcement
2013 Annual General Meeting and Interim Management Statement 13 November 2013
2013/14 Interim/half year results February 2014
Interim Management Statement May 2014
2013/14 Annual Results Announcement September 2014
GROUP ADVISERS
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
Registered Auditor
Deloitte LLP
London
Solicitors
Slaughter and May
Brokers and Investment Bankers
Credit Suisse Securities (Europe) Limited
UBS Investment Bank
COMPANY INFORMATION
Registered in England and Wales. Company number 604574
Registered address: Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire LE67 1UF
OTHER INFORMATION
FIVE YEAR RECORD, FINANCIAL CALENDAR, GROUP ADVISERS AND
COMPANY INFORMATION
75234_Addison_Cover_v2.indd 2 20/09/2013 11:23
Report of the Directors
Group Overview
At a glance 02
Our business model 04
Chairman’s Statement 06
Group Chief Executive’s Review 08
Our progress 14
Business Review
Business Review 18
Group Finance Director’s Review 30
Managing Risk 34
Corporate Governance
Board of Directors and
Company Secretary 40
Letter from the Chairman 42
Corporate Governance 43
Letter from the Chairman of the
Nomination Committee 47
Report of the Nomination Committee 47
Letter from the Chairman of the
Audit Committee 51
Report of the Audit Committee 51
Remuneration Committee 56
Going concern 56
Post balance sheet events 56
Remuneration Report 57
Other statutory information 79
Statement of Directors’ responsibilities 83
Accounts
Financial Statements
Independent auditor’s report to the
members of Barratt Developments PLC 84
Consolidated income statement 85
Statements of comprehensive income 86
Statements of changes in
Shareholders’ equity 87
Balance sheets 89
Cash flow statements 90
Accounting policies 91
Impact of standards and interpretations
in issue but not yet effective 98
Critical accounting judgements and
key sources of estimation uncertainty 99
Notes to the financial statements 102
Other information
Five year record, financial calendar,
Group advisers and Company information IBC
Cautionary statement regarding
forward-looking statements
The Group’s reports including this document and
written information released, or oral statements
made, to the public in future by or on behalf of the
Group, may contain forward-looking statements.
Although the Group believes that its expectations
are based on reasonable assumptions, any
statements about future outlook may be influenced
by factors that could cause actual outcomes and
results to be materially different.
Report of the Directors
Pages 2 to 83 inclusive comprise the Report of the
Directors which has been drawn up and presented
in accordance with and in reliance upon English
company law and liabilities of the Directors in
connection with that report shall be subject to the
limitations and restrictions provided by such law.
Notice regarding limitations on Director liability
under English Law
Under the Companies Act 2006, a safe harbour
limits the liability of Directors in respect of
statements in and omissions from the Report of
the Directors contained on pages 2 to 83. Under
English Law the Directors would be liable to the
Company (but not to any third party) if the Report
of the Directors contains errors as a result of
recklessness or knowing misstatement or
dishonest concealment of a material fact,
but would not otherwise be liable.
Links to further information are illustrated
with the following markers:
For further information see
www.barrattdevelopments.co.uk
02 ABOUT US 04 THE WAY WE WORK
16 DELIVERING OUR SUSTAINABILITY OBJECTIVES
08 GROUP CHIEF
EXECUTIVE’S
REVIEW
25 COMMUNITY ENGAGEMENT
22 BARRATT LONDON
18 BUSINESS
REVIEW
For further information
WHAT’S INSIDE CONTENTS
-15
-10
-5
0
5
10
15
20
25
%HPI
2002 20122010 20112009200820072006200520042003
HALIFAX UK QUARTERLY HPI
80
100
120
140
160
180
200
Thousands
2003 20122010 2011200920082007200620052004
NEW HOMES COMPLETED – PRIVATE ENTERPRISE
20
30
40
50
%mortgagetoearnings
2003 201320122010 2011200920082007200620052004
MORTGAGE TO EARNINGS RATIO
We continue to deliver against our objectives
of building profitability, maintaining an
appropriate capital structure and driving
return on capital employed.
UK HOUSING MARKET
The UK housing market remained relatively stable
during the first nine months of our financial year
and showed material signs of improvement
during our final quarter.
We have seen an increase in the availability
of higher loan to value mortgages and
increasingly competitive mortgage rates,
largely resulting from the Bank of England’s
Funding for Lending Scheme.
Government support for the UK housebuilding
industry has remained strong with a number
of initiatives in place designed to support house
purchases and stimulate economic growth.
Housing formed a prominent part of the March
2013 Budget with a range of new measures
announced, in particular, to improve the supply
of mortgage finance. In April 2013, Help to Buy
(Equity Loan) was launched, the Government
only equity share product available on new
build. Since then, we have seen a significant
De Lacy Fields, Chesterton, a development of 3, 4
and 5 bedroom homes using local stone render.
Dennis and Sophia Clarke and their daughter Dennia moved
into Zest, Keresley, using FirstBuy.
SUMMARY
• The UK housing market remained relatively stable during our first
three quarters and showed material signs of improvement during
our final quarter.
• We improved operating margin by 1.5%, profit before tax before
exceptional items by 73.7% to £192.3m and reduced net debt
to £25.9m.
• We work with many partners to design and build high quality homes
that meet the needs of our customers and their communities.
Source: Halifax UK quarterly house price index, Lloyds Banking Group
Source: Halifax quarterly mortgage affordability, Lloyds Banking Group
Source: Department for Communities and Local Government Table 212 House building:
permanent dwellings started and completed, by tenure, Great Britain (quarterly)
REPORT OF THE DIRECTORS
BUSINESS REVIEW
BUSINESS REVIEW
step-up in levels of consumer interest and a
strengthening of sales rates.
The Government is also putting in place longer
term reforms to the planning system designed
to increase the supply of new homes.
In 2012, the number of private industry housing
completions has increased to 103,220 (2011:
99,980) according to the Department for
Communities and Local Government. In the year
ended 30 June 2013, according to the Bank of
England, the total number of mortgage approvals
for home purchases was 638,174 (2012: 617,676).
OUR PERFORMANCE
We continue to deliver against our objectives
of increasing profitability, maintaining an
appropriate capital structure and driving return
on capital employed (‘ROCE’).
We delivered an increase in profit from operations
before operating exceptional items by 32.2%
to £252.7m (2012: £191.1m) at a margin of 9.7%
(2012: 8.2%). This increase was mainly driven
by an increasing proportion of sales from more
recently acquired higher margin land and cost
control. After operating exceptional items of
£2.8m (2012: £nil), our profit from operations
was £249.9m (2012: £191.1m).
Profit before tax and exceptional items
increased by 73.7% to £192.3m (2012:
£110.7m). After exceptional items of £87.5m
primarily related to our refinancing (2012:
£10.7m related to the acquisition of a joint
venture), our profit before tax was £104.8m
(2012: £100.0m). Our basic earnings per share
were 7.7p (2012: 7.0p).
Our net debt as at 30 June 2013 was significantly
reduced to £25.9m (30 June 2012: £167.7m).
Housebuilding
Our housebuilding business has traded
well throughout the year. Net private
De Lacy Fields, Chesterton, a development of 3, 4
and 5 bedroom homes using local stone render.
Reflections, a contemporary development of 184 homes in Plymouth.
Revenue
£2,606.2m
(2012: £2,323.4m)
Profit from operations
before operating exceptional items
£252.7m
(2012: £191.1m)
Net debt
£25.9m
(2012: £167.7m)
Board
Regional management
Group management
Divisional management
Group support
Site management
Internal audit
and assurance
First line:
Operational
management
Second line:
Group
support
Third line:
Independent
assurance
Overall
stewardship
Inform
ation
andriskrep
ort
ing
Po
licy
andrev
iew
1
2
3
4
5
6
7
Assurance
lines of defence
We believe that effective risk management is critical to the achievement of our strategic
objectives and our long-term performance. Risk management is embedded at all levels
of our business and is an integral part of our day-to-day operations. We continually
assess our exposure to risk and seek to ensure that risks are appropriately mitigated.
ROLES AND RESPONSIBILITIES
The Board is responsible for the overall
stewardship of our system of risk management
and internal control. It has established the
level of risk that is acceptable in the pursuit
of our strategic objectives and has set policies
and delegated authority levels to provide the
framework for assessing risks and ensuring
that they are escalated to the appropriate
levels of management, including up to the
Board where appropriate, for consideration
and approval.
The roles and responsibilities of the Board,
its committees and all levels of management
from a risk management perspective are
summarised as follows:
1. BOARD RESPONSIBILITIES ACTIONS UNDERTAKEN
Board • Strategic leadership
• Determines the level of risk acceptable, assesses
key risks and seeks to ensure that they are
appropriately managed and mitigated
• Sets delegated authority levels
• Approves policies and procedures
• Set the strategic direction for the Group
• Issue and review risk management policy
• Annually review effectiveness of risk management
and internal control systems
• Review key risks and responses
Audit Committee • Reviews the effectiveness of internal controls, including
systems to identify, assess and monitor risks
• Review key areas of accounting judgement
• Receive regular reports on internal and external audit
• Biannually assess risk management and internal
control systems
Nomination Committee • Ensures an appropriate balance of skills, knowledge
and experience on the Board
• Review the composition of the Board and consider
succession planning
Remuneration Committee • Ensures the appropriate incentivisation of the senior
executive population
• Review the remuneration of the senior executives
and the appropriateness of incentive schemes
2. GROUP MANAGEMENT RESPONSIBILITIES ACTIONS UNDERTAKEN
Executive Committee • Monitors performance and changes in key risks facing
the business and provides regular reports to the Board
• Responsible for ensuring that the risk management policy
is implemented and embedded within the business and
appropriate actions are taken to manage risks
• Implement strategic direction of the Group
• Three year plan process incorporating annual budgeting
• Regular performance reviews
• Biannual review of internal assessment of risk management
and control self-certification
• Review results of assurance activities
REPORT OF THE DIRECTORS
BUSINESS REVIEW
Risk management
MANAGING RISK
2. GROUP MANAGEMENT RESPONSIBILITIES ACTIONS UNDERTAKEN
Operations Committee • Review of regional operating performance • Review of regional performance, risks and mitigation plans
Health and Safety Committee • Reviewing the effectiveness of health and safety policies
and establishing controls and procedures to manage
these risks
• Implement health and safety policies and procedures
approved by the Board
• Review results of assurance activities
Risk Committee • Consideration of identified risks and their mitigation • Review risk action plans
Treasury Operating Committee • Management of liquidity and counterparty risk and ensuring
that treasury policies are implemented and embedded
within the business
• Implement treasury policies and procedures approved
by the Board
Land Committee • Reviewing and authorising all proposed land acquisitions
to manage land acquisition risk
• Review of land acquisition proposals and post-investment
appraisals
3. REGIONAL MANAGEMENT RESPONSIBILITIES ACTIONS UNDERTAKEN
Regional management • Responsible for risk identification, management
and control within their region
• Ensuring that divisional risk management responsibilities
are appropriately discharged
• Review divisional performance including regular site visits with
review and challenge of performance, risks and their mitigation
• Biannual review of internal assessment of risk management
and control self-certification
4. DIVISIONAL MANAGEMENT RESPONSIBILITIES ACTIONS UNDERTAKEN
Divisional management • Business planning to support strategic objectives
• Maintain an effective system of risk management
and internal control within their division
• Monthly board meetings and regular site reviews
to review performance, risks and their mitigation
• Quarterly site valuation and valuation reviews
• Biannual risk management, control self-certification
and risk escalation
5. SITE MANAGEMENT RESPONSIBILITIES ACTIONS UNDERTAKEN
Site management • Maintain an effective system of risk management and
internal control upon their site including construction risks,
subcontractor risks and health and safety
• Day-to-day management of their site
6. GROUP SUPPORT
FUNCTIONS
RESPONSIBILITIES ACTIONS UNDERTAKEN
Support functions • Guidance and advice to operational management
to help with risk identification, quantification and mitigation
including legal and regulatory requirements, product
design and technical specifications, Human Resources,
Commercial, IT, Procurement, Finance and Insurance
• Provide guidance, support and challenge for management
including: regular financial and performance reviews;
the review and authorisation of product design/technical
specifications; and training, guidance and policies
• Centrally maintained IT systems
• Centralised procurement for key material supplies
• Develop and implement approved strategy for insurable risk
7. INTERNAL AUDIT
AND ASSURANCE
RESPONSIBILITIES ACTIONS UNDERTAKEN
Internal audit • Independent review of the effectiveness of risk
management and compliance with internal controls
• Reporting to the Audit Committee upon the effectiveness
of key controls
• Regular operational, financial and commercial audits
• Regular reports to the Audit Committee and meetings
with the Audit Committee without management presence
• Review of biannual risk management and control
self-certification
Health and Safety • Independent audit of health and safety procedures
and controls on sites and within divisional offices
• Regular site audits
• Regular reports to Health and Safety Committee,
Board, Executive and Operations Committees
• Attend divisional board meetings
Group architects • Ensuring all properties are designed in accordance
with relevant legislation and best practice design
• Regular site audits
• Approval process for non-standard properties

Cobham Aviation Services combines superior performance,
extensive aviation knowledge and advanced technology to
provide specialist aviation solutions to defence, government
and commercial customers worldwide.
Cobham has also been a long-standing client of Addison for
a decade and again has gone through a number of design
updates over the years to keep the identity of the company
looking sharper and ever evolving like its technology.
The fundamental elements of each of these projects remain
the same with the images and graphics supporting the design,
adapt and change with each and every publication.
The design and production departments play their part
in creating these elements and have an understanding
of each others skill sets. When an issue occurs regarding an
image or key design element no longer fits the desired effect
then we communicate these issues and revise the design to fit
or alter them to better and greater effect.
The front cover of this report is an example of how a great
hero image was to be used to showcase how some of
Cobham’s technology was used to benefit The Burj Khalifa,
Dubai, but the image had to be extended above the building
where the image fell short being used at this scale.
COBHAM

COBHAM

11
Dear Shareholder
A key focus during 2013 has been the
appointment of two Directors, one Executive,
one Non-executive. Both of these appointments
were managed in conjunction with Korn/Ferry
Whitehead Mann, recruitment consultants who
have signed up to the voluntary Code of Conduct
for executive search firms. Korn/Ferry provided
a shortlist of candidates for these roles. The
shortlisted candidates were interviewed by
myself and separately by Mike Wareing,
Alison Wood and John Patterson before
meeting the Executive Directors.
As mentioned last year, a fresh look at talent
and succession further down the management
chain has been undertaken during the year
and significant progress made, which has been
described in the talent management section
of the CR&S report on page 33.
J Devaney
Nomination Committee Chairman
Membership and attendance
Number of meetings attended/held
J Devaney (Chairman) 4/4
M Beresford1
2/2
D Flint2
2/2
M Hagee 4/4
J Patterson 4/4
M Ronald 4/4
M Wareing3
3/4
A Wood 4/4
1
M Beresford retired from the Board (and hence the Nomination Committee)
on 25 April 2013.
2
D Flint joined the Nomination Committee on joining the Board on 1 May 2013.
3
M Wareing had been hospitalised before the February meeting, which he could
not attend.
Other attendees
CEO, by invitation.
Role and focus
The Nomination Committee’s main duties are to:
• Review the structure, size and composition of the Board; and
• Consider succession planning for Directors and other
senior executives.
Highlights of 2013
• Evaluated the balance of skills, knowledge and experience
of the Board;
• Considered external appointments to subsidiary boards;
• Considered succession planning to ensure the Group is
well positioned for the future;
• Conducted a thorough and comprehensive search for two
new Non-executive Directors, one yet to be appointed; and
• Conducted an effectiveness review.
Priorities for 2014
• Conclude Non-executive Director search to replace
John Patterson who will stand down at the conclusion
of the 2014 AGM.
42 Cobham plc Annual Report and Accounts 2013
Corporate Governance Report continued
Nomination Committee
Overview
100048911-Cobham-AR13-06-Compliance-BoD-Corp-Gov-140314-JR.indd 42 14/03/2014 17:45
2005 2020 20252010 20152013
J Devaney
D Flint
J Patterson
M Ronald
M Hagee
M Wareing
A Wood
1st term 2nd term 3rd term
Board succession planning
The Committee’s terms of reference, which were reviewed
during the year, are available on the Company’s website at
www.cobhaminvestors.com or on application to the
Company Secretary.
The Committee is cognisant of the need for diversity, including
gender diversity, when considering the composition of the Board.
In recruiting for Board roles, targets have been set around ensuring
a proportion of female applicants are included in the candidate
pool for Non-executive Director positions. For the recent recruitment,
the profile has included the requirement for a diverse geographical
background and commercial market experience. Elsewhere in the
business, diversity in the workforce is taken very seriously and a full
report on current strategy is set out in the diversity and inclusion
section in the CR&S report on page 34.
The current Board composition, in relation to the Non-executive
Directors, as of 31 December 2013, is set out in the table below
identifying the skills and experience of the Board members.
Succession planning
Succession planning takes place at Board and senior management level on
a regular basis to ensure that the Group is managed by executives with the
necessary skills, experience and knowledge. The Board has a role to play
in overseeing the development of management resources in the Group.
Specifically, the Board wants to see depth and quality in management
and robust processes are in place to help the Board in this task.
Succession planning for Non-executive Directors is based on maintaining
a depth of knowledge and experience on the Board. The Nomination
Committee actively manages Non-executive Director succession, having
regard to anticipated retirement dates for existing Directors, and initiates
focused searches for Non-executive Directors as positions are required.
The current Board composition in relation to the Non-executive
Directors, as of 31 December 2013, in terms of length of service
and current term is shown diagrammatically in the table adjacent.
Independence
Years with
Cobham Skills Experience
Leadership Strategy
UK
Corporate
Governance Corporate Engineering Defence Finance US Market UK Listings HR
J Devaney 3 • • • • • • • •
R Murphy 1 • • • • • • • • •
S Nicholls 0 • • • • • • • •
D Flint • 0 • • • • • • • • •
M Hagee • 5 • • • •
J Patterson • 8 • • • • • •
M Ronald • 7 • • • • • • •
M Wareing • 3 • • • • • • • • •
A Wood • 2 • • • • • • • •
Directors’ professional development
On appointment, Directors undertake a structured induction programme,
in the course of which they receive information about the operations and
activities of the Group, the role of the Board and the matters reserved for
its decision, the Group’s corporate governance practices and procedures
and their duties, responsibilities and obligations as Directors of a listed
public limited company. This is supplemented by visits to key locations
and meetings with, and presentations by, senior executives.
Training for Directors is available as required and is provided mainly by
means of external courses, internal computer based training, briefing
from specific consultants or in-house presentations. In addition, Directors’
knowledge of the legal and regulatory environment is updated through
the provision of information by the Group’s advisers and by means of
regular updates from the Company Secretary and the legal team.
43Cobham plc Annual Report and Accounts 2013
Corporate Governance
www.cobham.com
100048911-Cobham-AR13-06-Compliance-BoD-Corp-Gov-140314-JR.indd 43 14/03/2014 17:45
Aerospace and Security 42%
Defence Systems 17%
Mission Systems 20%
Aviation Services 21%
Aerospace and Security 44%
Defence Systems 15%
Mission Systems 25%
Aviation Services 16%
Cobham operates from 14 principal manufacturing locations,
with nine in the USA, three in the UK and two in continental
Europe, as well as satellite locations and sales offices across
the world that provide a permanent presence in faster growth
markets. In addition, Aviation Services operates from airport
bases in Australia, the UK and elsewhere in the world.
The Group leverages its
innovative technology,
know-how and understanding
of customer needs to build and
maintain leading positions in
the second and third tiers of
the global defence/security
and commercial aerospace,
marine and land markets.
Provides aircraft and in-building communication equipment,
law enforcement and national security monitoring solutions,
and satellite communication equipment for land, sea and
air applications.
Operating locations
United States, United Kingdom, Denmark, France, South Africa,
Finland and Sweden
Revenue
£744m
(2012: £697m)
Revenue
£309m
(2012: £323m)
£1,790m £318m
Trading profit
£132m
(2012: £149m)
Trading profit
£47m
(2012: £45m)
Provides critical technology for network centric operations,
moving information around the digital battlefield with
customised and off-the-shelf solutions for people and
systems to communicate on land, sea and in the air.
Operating locations
United States and Mexico
See page 14 See page 16
Divisional percentages for revenue and trading profit exclude non-core activities, head office results and eliminations:
see note 4 on page 90
Group at a Glance
The Group in 2013 Revenue Trading profit
Aerospace and Security (CAS) Defence Systems (CDS)
100048911-Cobham-AR13-01-At-a-glance-140314-JR.indd 2 14/03/2014 17:54
US defence/security 37%
Non US defence/security 28%
Commercial 35%
Markets
USA 45% Australia 14%
UK 13% Asia 7%
Other EU 16% RoW 5%
Geography
Revenue
£358m
(2012: £373m)
Revenue
£365m
(2012: £327m)
Trading profit
£74m
(2012: £81m)
Trading profit
£48m
(2012: £38m)
Provides safety and survival systems for extreme environments,
nose-to-tail refuelling systems and wing-tip to wing-tip mission
systems for fast jets, transport aircraft and rotorcraft, and
provides remote controlled robots and fully equipped bomb
disposal vehicles for homeland security and military applications.
Operating locations
United States, United Kingdom and Germany
Delivers outsourced aviation services for military and civil customers
worldwide through military training, special mission flight operations,
outsourced commercial aviation and aircraft engineering.
Operating locations
Australia and United Kingdom
See page 18 See page 20
Strategic Report
www.cobham.com
Rebalancing the portfolio for sustainable organic revenue growth
Mission Systems (CMS) Aviation Services (CAvS)
100048911-Cobham-AR13-01-At-a-glance-140314-JR.indd 3 14/03/2014 17:54
Delivering on our seven strategic priorities enables us to generate
sustainable top and bottom line growth, relative to the markets
in which we operate, while consistently generating good free cash
flow and creating shareholder value.
Improve understanding of our
markets and customers’ future
needs, aligning PV investments
with these priorities.
1.
Innovation with insight
Why this is important:
Our differentiated
technology and know-
how are a key competitive
advantage in our markets.
Having a thorough
understanding of market
opportunities and our
customers’ future needs
optimises our ability
to closely align our
technology investments
to customer requirements.
Remain focused on the
second and third tiers of
global defence/security
markets, and commercial
aerospace, marine and
land markets.
2.
Focus on components
and subsystems
Our innovative technology
and know-how are focused on
tier two (subsystems) and tier
three (components) segments
of our markets, where we
have a competitive edge.
This enables us to provide
comprehensive solutions for
our customers’ complex
technology problems.
Identify adjacent markets
where our existing technology
and know-how can be
leveraged to meet the needs
of new customers.
3.
Leverage our technology
Accessing adjacent
commercial markets allows
us to leverage our existing
technology and know-how,
thereby increasing revenue
and shareholder returns. This
also brings more balance to
our portfolio and enables us
to provide sustainable growth
through business cycles.
Use mergers and acquisitions
to shift the emphasis of the
portfolio ahead of market
movements to remain exposed
to faster growing markets.
4.
Focus on M&A
Utilising our strong free
cash flow and the Group’s
balance sheet, we acquire
businesses that are
complementary to, and
reinforce, our differentiated
technology and know-how.
We achieve this through a
rigorous and disciplined
approach to investment.
Our strategic objective is
to use M&A to bring more
balance to the portfolio.
Group PV investment
Target: 6%
6.2%
(2012: 5.3%)
During the year, we invested
over £150m in acquisitions,
primarily Axell for up to
£85m, including contingent
consideration, and the
£74m acquisition of the
outstanding 50% stake in
FBH, the helicopter joint
venture. These acquisitions
bring differentiated and
complementary technology
and know-how in growing
and attractive markets.
Group organic revenue growth
Target: mid-single digit organic revenue growth from 2015
(4)%
(2012: (1)%)
See page 9 for more information. See page 23 for more information. See page 11 for more information.
Our Strategy and Key Performance Indicators
Our strategic priorities focus on
100048911-Cobham-AR13-02-Our-strategy-140314-JR.indd 12 14/03/2014 17:52
Drive a culture of continuous
improvement from an
integrated, streamlined
business through Excellence
in Delivery.
5.
Operational excellence
Alongside financial benefits,
EiD has delivered a number
of significant operating and
customer benefits, including
improved productivity,
shortened manufacturing
lead times and improved levels
of quality. It has resulted in a
simpler,morescalablebusiness
and a sharper focus on the
customer, with enhanced
internal communication
and collaboration.
Improve programme
execution across customer
and PV funded projects
to achieve sector leading
customer delivery and
operational performance.
6.
Programme execution
Programme management
is a core competency focus
and enables us to meet
customer expectations
and deliver growth.
Ensure the right capabilities
are in place in changing
markets by increasing
investment to build essential
skills and capabilities.
Cobham’s progress is
monitored with a score card
of financial and non-financial
metrics. The following
are considered the
most important:
7.
Invest in skills
and capabilities
The delivery of our strategy
depends on the right people,
skills and capabilities being in
place. We have continued to
increase our investment in
learning and development to
build the essential skills and
capabilities from which to
drive future growth, by
attracting, training and
retaining the best talent.
Key Performance
Indicators
Operational excellence
is one of a number of tools
with which we drive, improve
and monitor our health &
safety performance.
Staff safety – major accident
incident rate*
Target: zero
326(2012: 666)
* Per 100,000 employees
We have undertaken
considerable work to
enhance functional
excellence in project and
programme management
across the diverse range of
customer and internally
funded activities, together
with an increased focus on
lifecycle management.
Voluntary staff turnover
Target: <10%
6.9%
(2012: 8.7%)
Return on invested capital
Target: >10%
15.3%
(2012: 18.1%)
Operating
cash conversion
Target: >80%
85%
(2012: 104%)
See page 24 for more information
Underlying EPS growth
Target: high single digit
(4)%
(2012: 3%)
See page 24 for more information
Key performance indicator
used by management.
Used as a measure for determining
executive remuneration.
For definitions, see page 140.See pages 9 and 34 for more information. See page 8 for more information. Seepages8and30formoreinformation.
Strategic Report
www.cobham.com
100048911-Cobham-AR13-02-Our-strategy-140314-JR.indd 13 14/03/2014 17:52
Delivers outsourced aviation
services for military and civil
customers worldwide through
military training, special mission
flight operations, outsourced
commercial aviation and
aircraft engineering.
In 2013, the UK Ministry of Defence
awarded Aviation Services a five year base
contract extension worth £165m through
to 2019 for essential operational readiness
training. Cobham has extensive
understanding of front-line needs and
technology know-how, providing training
to service personnel operating platforms
including some of the UK’s most modern
equipment, such as the Eurofighter
Typhoon aircraft and Type 45 Destroyer.
Aviation Services
100048911-Cobham-AR13-03-Divisional-spreads-140314-JR.indd 20 14/03/2014 17:48
0
100
200
300
400
2012
327
29 9 365
Acquisitions
and currency
translation
Organic
growth
2013
Divisional revenue
£m
Non US defence/security 47%
Commercial aerospace/
general aerospace 53%
Australia 65%
UK 25%
Other EU 4%
Asia 4%
RoW 2%
Revenue by geography
0%
10%
20%
2012
11.6 0.2
1.3 13.1
Acquisitions
and currency
translation
Organic
growth
2013
Divisional trading margin
During 2013, Cobham Aviation Services
was awarded an AUS$150m scope
expansion to its current Boeing 717 (B717)
regional QantasLink contract. This sees
the fleet of B717s operated by Cobham
increase from 13 to 18 aircraft and the
establishment of new operating bases
in Australia.
Revenue
Total revenue increased by £38m due to organic growth
of 3% and the FBH acquisition, which was completed in
the year. This was partly offset by an adverse translation
impact from the Australian dollar.
Trading margin
The Division’s trading margin of 13.1%
(2012: 11.6%) including joint ventures,
benefited from the end of lower margin
FSTA conversion work. The prior year trading
margin also included UK redundancy costs.
Other performance highlights
• Three of five additional B717 aircraft
under contract for QantasLink have now
entered service with the remaining two
to commence operations in the first half
of 2014;
• Modification of five Dash 8 surveillance
aircraft for Australian Customs and Border
Protection Command was completed
enabling search and rescue operations
as part of the Sentinel contract;
• Modification and mobilisation of three
aircraft to provide ongoing support to
the Ok Tedi mine in Papua New Guinea
until 2019;
• FB Heliservices’ transition into Cobham
Helicopter Services has progressed well.
Business development activities are
focused on Helicopter Services’ existing
international footprint, with its training
and support contract in Trinidad and
Tobago expanded from the beginning
of 2014.
Revenue by market
Strategic Report
www.cobham.com
Highlights
100048911-Cobham-AR13-03-Divisional-spreads-140314-JR.indd 21 14/03/2014 17:48
COBHAM

Stock Spirits Group is a drinks business operating in Poland,
the Czech Republic, Italy, Slovenia and Croatia. It is listed
on the London Stock Exchange and is a constituent of the
FTSE 250 Index.
This was Stock Spirits Groups first ever annual report. It was
a real pleasure to see the companies full measure of expertise
coming to the fore in this project. Not only did we get to dictate
the whole direction of the design but being a consultants firm
as well, was able to give them full guidance in how to report their
companies strategic business and annual accountable figures.
Starting a whole annual report from the ground upwards has
its own obstacles to overcome from image shots and model
contracts to the strategic business model and general content.
All of which was overcome but takes a huge collaborative
team effort and the client to fully appreciate the complexity
of the task at hand when producing a report of this manner.
Everything had to be produced from new; grids, typography
style sheets, charts, graphs, graphics, images, content – future
and past, and most importantly a full report of the annual
accounts which all needs to be pulled together from a number
of different departments, Managing Directors and all within
a given time line.
STOCK SPIRITS GROUP

STOCK SPIRITS GROUP

14
1Żołądkowa Gorzka
Poland
Produced since 1950 to an unchanged blend
of ingredients, inspired by traditional methods
which date back to 1822, this is a traditional
Polish vodka-based flavoured liqueur made
using the time honoured practice of infusing
herbs in alcohol.
Made from selected herbs, spices and dried
fruits, including oranges, cloves, cinnamon
and nutmeg, then matured in vats before
bottling, its distinctive aroma and lightly
bitter-sweet taste have made it a household
name brand in Poland and one of the
Group’s flagship products. It is available
in a variety of blends, including traditional,
mint and its new flavour, black cherry,
which was launched in 2014.
Żołądkowa Gorzka is the second largest
brand by volume and value1
in the flavoured
vodka and vodka-based liqueurs category
in Poland and has also been introduced to
other international markets. It has received
numerous international awards, including
two golden stars for Żołądkowa Gorzka
Tradycyjna (Traditional) and Żołądkowa
Gorzka Czarna Wiśnia (Black Cherry) from
the International Taste & Quality Institute
awards 2014 (ITQI awards 2014).
Lubelska
Poland
The number one brand by volume and value
in the Polish flavoured vodka and vodka-based
liqueurs category1
, with a range of ten flavours
and a “Three Grains” clear vodka.
Lubelska’s success is built on continuous
trendsetting in flavour innovation,
developing a fun, contemporary range of
flavours with particular appeal to younger
adults and female drinkers, who enjoy
the brand in shots or cocktails.
Lubelska Trzy Zboża (Three Grains) won
a silver medal in the 2014 International
Spirits Challenge (ISC) and its new
flavour, Lubelska Antonówka (Apple)
won a golden star from the
ITQI awards 2014.
1906
Poland
1906 is the leading brand by volume and value1
in the economy sector in Poland and is sold
in over thirty countries around the world.
An outstanding, clear vodka which is
made through a process of quadruple
distillation. It was created to honour the
100th anniversary of the opening of the
first spirit production plant Rektyfikacja
Lubelska in the city of Lublin in Poland.
million+
9 litre equivalent
cases sold during
the calendar year.
18 Stock Spirits Group Annual Report 2014
OUR “MILLIONAIRE” BRANDS*
Żołądkowa Czysta de Luxe
Poland
This crystal clear vodka is the number one brand
by volume and value in the Polish market1
, the 7th
biggest vodka brand in the world by volume2
and
the best-selling vodka in Stock Spirits’ portfolio3
.
Produced to an original recipe using selected
grain, a six-step distillation and filtration
process over natural carbon filters ensures
an exceptionally smooth, high quality vodka.
Żołądkowa Czysta de Luxe has received many
international awards, including a gold medal
at the International Quality Institute’s Monde
Selection 2014 awards in Brussels, two golden
stars from the ITQI awards 2014, and a silver
medal in the 2014 ISC.
Božkov
Czech Republic
The Božkov brand range includes rum**,
vodka, vodka-based flavoured liqueurs,
gin and other flavoured liqueurs such as
apple, apricot, cherry and peppermint.
Božkov Tuzemský is the best-selling
member of the Božkov range. It is a Czech
domestic rum with a distinctive, fine aroma,
subtle golden colour and a delicious flavour.
A versatile drink, typically served straight
in shots but also used for mixed drinks,
and to add flavour for culinary purposes.
Božkov Tuzemský is the number one spirits
brand by volume2
in the Czech Republic
and the number one brand by volume and
value4
in the Czech off-trade domestic rum
category. In 2014, Božkov Tuzemský won a
bronze medal in the ISC awards and Božkov
“Special” flavour won two gold stars in the
2014 ITQI awards.
Božkov Vodka is the number three spirits
brand by volume2
in the Czech Republic and
the number one brand by volume and value4
in the Czech off-trade vodka category.
Stock Prestige
Poland
Stock Prestige is a premium vodka launched
in Poland in 2009. Stock Prestige is the result
of combining 130 years of experience in
producing top quality spirits with the most
recent technological advancements.
Stock Prestige achieved growth ahead
of the premium category during 2014,
growing its share of both volume
and value.1.
A six-step distillation process with
additional chilled filtration results in
a high quality vodka with an exceptionally
smooth taste. The raw materials used for
Stock Prestige undergo careful selection
and a multi-step control process.
The brand has won several international
awards, including a prestigious gold medal
and best in class trophy for Stock Prestige
grapefruit and a silver medal for Stock
Prestige clear in the 2014 ISC. The clear
and grapefruit variant were also awarded
two gold stars in the ITQI awards 2014.
* A “millionaire” brand is one which sold more
than one million 9 litre equivalent cases during
the calendar year.
** Tuzemsky is a local form of rum.
Source
1. Nielsen total Poland off-trade, MAT December 2014.
2. IWSR 2013 data.
3. Stock Spirits Group internal volume sales data.
4. Nielsen total Czech Republic off-trade,
MAT December 2014.
Stock Spirits Group Annual Report 2014 19
58%
Poland3
Other markets
% of Group net sales revenue
Net sales revenue €m
2013
2014 -18.5%168.0
206.2
EBITDA before exceptionals €m
2013
2014 -19.0%53.1
65.5
Our largest market is Poland,
where we remain the number
one spirits producer with an
overall volume share of 37.3%
(38.0% 2013)2
of the vodka and
vodka-based flavoured liqueurs
market, 9.1 volume share points
ahead of our nearest competitor.
2014 has been a very tough year
in Poland, largely as a result of
the 15% excise duty increase
posted by the government on
1 January 2014. This significant
increaseresultedintotalproduct
shelfpricesincreasingbyover7%,
accelerating the decline in total
market volumes -4.3% versus
2013,2
and resulting in severe
disruption within the market
supply chain. The main impacts
on customers’ supply chain were
that many wholesale customers
entered the year with exceptionally
high inventory levels, resulting
in higherdemandsforpromotional
support from these customers and
heightened competition between
spirits producers to encourage the
“sell through” of theirproductsto
the end retail stores, and ultimately
to consumers. Throughout this
period of disruption, we have
endeavoured to maintain our
focus on value creation, not to
pursue volume share in isolation.
Followingthedutyincrease,Stock
has increased average prices per
litre ahead of the market and
ahead of our main competitors.
In line with our experience of
previous excise duty increases in
other markets, it is always difficult
to predict when the market will
return to “normal” and whilst
consumption has not declined as
much as expected, the disruption
in the customers’ supply chain
has taken longer to unwind than
we originally assumed and, as a
consequence, we revised our full
year profit guidance for the Group
in the latter part of 2014.
As we enter 2015, the trading
environment remains tough and
we expect that it will take a little
more time before the customers’
supply chain returns to a more
normal position. However, the
continued success of our core
brands and new product launches
provides some comfort that
consumer dynamics remain
robust, and combined with
a relatively strong economy,
we remain confident that our
strategy will continue to deliver
strong results in the medium to
long term.
Despite the overall market volume
decline in 2014, Poland remains
the 3rd largest vodka market in
the world by value and 4th by
volume, and vodka (both clear,
flavoured and vodka-based
flavoured liqueurs) remains
the principal spirit category,
accounting for approximately
87% of the overall spirits market.1
Source
1,2. Nielsen, total Poland, total off-trade, total vodka,
flavoured vodka & vodka-based liqueurs MAT Dec 2014.
3. IWSR 2013.
REGIONAL REVIEW
Poland
Our financial results in Poland
reflect a decline in both net sales
revenueandEBITDA. The second
half of 2014 was particularly
affected by the excise duty
increase and the buy forward in
the final quarter of 2013. This had
the effect of increasing net sales
revenue and EBITDA in 2013 at the
expense of 2014, with an estimated
EBITDA impact of around €5m. In
addition, we were unable to fully
implement planned price increases
due to the competitive landscape.
We did, however hold our EBITDA
margin at 31.6%, broadly the same
level as 2013.
Core brands
In regular vodka, we grew our
total value share whilst conceding
a small amount of volume share.
Żołądkowa Czysta de Luxe once
again grew volume share and
value share, retaining the number
one position in clear vodka. Stock
Prestige grew volume and value
on its clear and flavoured variants,
taking the number one position
in premium vodka. Lubelska and
Żołądkowa Gorzka (ŻG) retained
their number one and number
two positions in the flavoured
category with a combined value
share of 54.3%. ŻG the number
two brand in the category,
retained an 8.2% value share
point lead over the number
three branded competitor.
New product development
The Group continued to launch new
products into the Polish market in
2014 with a number of successful
launches that will provide 2015
value share growth. 2014 witnessed
the addition of two new flavours,
Orange and Peach, to the successful
Lubelska range, and the launch
of a new Żołądkowa Gorzka Black
Cherry variant.
Stock Prestige launched a limited
edition “Black” pack celebrating
130 years of the Stock brand
name, reinforcing the premium
qualities of this “millionaire”
brand. The launch helped us
to grow volume and value share
in the premium segment ahead
of the competition.
Point of sale innovation
Early in the year, we completed
the rollout of the innovative fridge
programme, which commenced in
2013, positioning 20,000 fridges
in the best traditional trade stores.
These represent over 50%
weighted volume distribution.
This has allowed us to strengthen
our distribution further, support
this important trade channel and
satisfy consumers’ desire to enjoy
chilled vodka. Results from this
innovation have been encouraging
with positive feedback from both
consumers and store owners.
Our ability to launch new products
has been enhanced by this initiative,
allowing products to be showcased
to their best advantage.
Recognition of our
distribution capability
In September 2013 we announced
the agreement with Beam Suntory
to distribute their portfolio in
Poland on an exclusive basis,
with distribution commencing
shortly afterwards.
We are delighted that after the
first year of distribution we have
grown both value and volume
share of the Beam Suntory brands
ahead of the market, in this fast
growing and important category.
This is a very exciting
development for Stock Polska
and provides us with an excellent
platform to develop more of our
own premium brands in addition
to satisfying the strategic
objectives of Beam Suntory.
#1
Stock Spirits is the market leader
with 37.3% market share
87%
Vodka (both clear, flavoured
and vodka-based liqueurs) accounts
for 87% of the spirits market
3rd
Poland is the third largest vodka
market in the world by value
Key brandsSignificant work has been
undertaken on reviewing
opportunities for the development
of our business in new markets.
We have not been able to conclude
a transaction during 2014, but will
continue to pursue a number of
opportunities in which we are
currently engaged.
The Group undertook a partial
refinancing during the year and this
has resulted in considerable savings
on finance costs. We also completed
the corporate restructuring, as laid
out in our IPO prospectus, to bring
the Group in line with other
PLC organisations.
The Group enjoys support from
a diverse group of shareholders,
and we have continued to engage
actively through investor events
andmeetingsduringtheyear.Ihave
met with a number of our major
shareholders during the year and
I amdelightedwiththesupportthey
provide. We remain committedto
returningvaluetoourshareholders
and have begun paying dividends
as envisioned in our prospectus.
I am delighted that we are
recommending a final dividend
of €0.025 per share for approval
at the Annual General Meeting.
I would also like to take this
opportunity to personally thank
Karim Khairallah and Oaktree
Capital Management, who fostered
the creation of Stock Spirits Group,
for being such supportive
Overall, we faced a challenging
year, primarily because of the 15%
duty increase in Poland. However,
whatpleasesmemostaboutthe
yearisthatwecontinuedtoinvest
inourstrongleadershipbrandsin
Poland,theCzechRepublicandItaly.
Theseleadingbrandsfinishedthe
yearwithstrongmarketshareand
consumerloyalty.
I am also encouraged by the
success of our new product
development (NPD) programme.
This strength in NPD continues
to be a major asset for the
Group and demonstrates our
understanding of consumer
trends as well as underscoring
our strength in innovation and
the scale of distribution in the
markets in which we operate.
That distribution scale has also
won us agreements with Beam
Suntory, Inc. in Poland and with
Diageo plc in the Czech Republic.
These agreements have benefitted
the brand owners and ourselves
as we have achieved significant
value growth in the first year of
our relationships. It is a testament
to our delivery that we have signed
a new agreement with Beam
Suntory, Inc. for the distribution of
their brands in Croatia and Bosnia.
As Chairman of Stock Spirits
Group PLC, I am pleased to
present our Annual Report
and Accounts for the year
ended December 2014.
CHAIRMAN’S STATEMENT
What pleases me most about
the year is that we continued
to invest in our strong
leadership brands in Poland,
the Czech Republic and Italy.
shareholders for over seven years
until partial divestiture at our IPO.
Karim served as a Non-Executive
Director after the IPO until the
full divestment by Oaktree in
April 2014.
People
I would like to recognise the
commitment of all our employees
and thank them for their
contribution to the Group’s
performance and support
during this challenging year.
There have been no changes to
the remuneration policy which
was approved at the AGM in 2014,
details of which are contained
within the Corporate Governance
section of this report, and the
interests of Executive Directors
and senior managers remain
completelyalignedtoshareholders.
Governance
The Group is committed to high
levels of corporate governance, and
I personally place great emphasis on
this area. The routine of the Board
and its sub committees has settled
since the IPO and evaluations have
been undertaken of the Board and
all the committees, and I thank the
Executive and Non-Executive
Directors with whom I serve for
their support and insight in helping
to run the Group.
I commend to your attention
the special section on Corporate
Governance as well as the reports
from our Committee chairmen
of Remuneration, Audit
and Nomination.
The Board receives input from a
number of external advisors who
have been invaluable in helping to
shape our policies and processes.
I would like to thank EY for the
service they have provided as
our external auditors for the
last eight years, and their support
throughout the IPO process.
We look forward to working
with KPMG, our proposed
incoming auditors, subject to the
approval of our shareholders.
Looking ahead
In spite of the difficult environment
we have navigated our way through
in 2014, I firmly believe that the
outlook for Stock Spirits Group is
very promising. We have the right
strategy, exceptional brands, a
strong financial structure, leading
edge production capability and
distribution and a proven executive
team, to lead the business forward.
Jack Keenan
Chairman
12 March 2015
Our goal is to become Central and Eastern Europe’s
leading spirits company – commanding a major stake
in each of our core operating markets and making our
presence felt in the wider global market.
Our goal
Strategic report
Chairman’s statement 02
Chief Executive
Officer’s statement 04
Group at a glance 08
Our business model 10
Strategy and KPIs 12
Our markets 14
Spirits market overview 16
Our “millionaire” brands 18
New product development 20
Our heritage 22
Regional reviews
Poland 24
Czech Republic 26
Italy 28
Other 29
Operations 30
Our people 31
Corporate responsibility 32
Financial review 34
Principal risks 38
Directors and
Company Secretary 42
Senior management 44
Corporate governance
Chairman’s letter 46
Corporate governance
framework 47
Audit Committee report 52
Nomination Committee report 57
Directors’ remuneration report 58
Directors’ report 71
Statement of Directors’
responsibilities 74
Independent auditor’s report 75
Financial statements 79
Notes to the accounts 85
Shareholders’ information 140
Useful links 141
* StockSpiritsGroupusesalternativeperformancemeasuresaskeyfinancialindicatorstoassesstheunderlying
performanceoftheGroup.TheseincludeadjustedEBITDA,adjustedEBITandadjustedfreecashflow.
ThenarrativeintheAnnualReport&Accountsisbasedonthesealternativemeasuresandanexplanation
issetoutinnote7totheconsolidatedfinancialstatementsincludedintheAnnualReport&Accounts.
** Interim dividend of €0.0125 paid on 26 September 2014 and proposed final dividend for 2014 of €0.025.
9 litre cases
(2013: 17.4m 9 litre cases)
Total revenue
(2013: €340.5 million)
Adjusted EBITDA*
(2013: €83.7 million)
€66.4m
14.4m
Adjusted EBIT*
(2013: €74.4 million)
Dividend per share**
(2013: €nil)
€55.4m
€0.0375
€292.7m
Operating profit
(2013: €47.7 million)
€53.6m
Profit for the year
(2013: €8.9 million)
Basicanddilutedearningspershare
(2013: €0.05)
€35.8m
€0.18
For more information
www.stockspirits.com
Contents
HIGHLIGHTS
STOCK SPIRITS GROUP

Thales Group is a French multinational company that designs
and builds electrical systems and provides services for the
aerospace, defence, transportation and security markets.
Addison produced Thales Groups quarterly magazine which
was also translated into four European languages; French,
German, Italian and Spanish. Each quarter the magazine
would have it's own theme all of which would generate
a considerable amount of work to produce.
The main task would be to design and produce the master
English version, bearing in mind the translations that would
follow. Not only was there translations but the smaller than
A4 format also lead to a number of challenges bearing
in mind the length of some of the translated copy. The
production of these reports meant we had to be very
organised in our workflow and timing schedules.
There was a number of style sheets which had to be produced
to give it a magazine type of style which is different to the
typical reports produced at Addison. Very often type styles
would then have to be adjusted, when translated into another
language. Many a chart or graphic had to be produced and
these to would have to be translated. A number of extra checks
and procedures where put into place to make sure accuracy
and integrity was maintained throughout the whole project.
THALES

16
1
2
THALES
1. English translation.
2. German translation.

17
1
2
THALES
1. French translation.
2. Spanish translation.

18
6 LOGIN//Q2 2012
thenewBigBusiness?
Data
BigF
orJosephHellerstein,acomputer
scientistattheUniversityofCaliforniain
Berkeley,theworldiscurrentlyentering
“theindustrialrevolutionofdata”1
.The
amountofstoreddataintheworldhas
doubledapproximatelyevery40monthssince
the1980s2
,buttodayitisbecomingevermore
complex.Neverbeforehassomuchdatabeen
produced,throughubiquitousmobiledevices
ofcourse,butalsoviaever-increasingnumbers
ofsecuritycameras,satellites,chemicalsensors
andwirelessnetworks.Clearlynewwaystoboth
stockandanalysedatahavebecomeessential.
Data–thenewcommodity?
Soimportanthasthismanagementofinformation
becomethatatthe2012WorldEconomicForum
heldinJanuaryinDavos,Switzerland,datawas
labelledforthefirsttimeasaneconomicasset
thatcouldbecomeasimportantasgold3
.Indeed,
accordingtothemagazineTheEconomist,the
datamanagementandanalyticsindustryisnow
worthmorethan$100billionandisgrowingat
almost10%ayear–aroundtwiceasfastasthe
softwarebusinessasawhole4
.
What place is there for Thales in this new
industry? The Group is one of the leading
contributors to large-scale civil and military
systems, creating command and control (C2)
systems in domains as varied as transport,
intelligence and homeland security. These
C2 systems acquire and store large quantities
of information and process this data to create
value for decision-makers.
Whether the information comes from
Thales sensors, customer databases or open
sources (the Internet), the data which feeds
the C2 systems is growing exponentially,
in particular unstructured data such as text,
images and videos.
Companies such as Thales now face two
challenges: how to store these ever-increasing
quantities of data, and how to analyse this
information. Businesses will soon be defined by
how well they perform in this domain. According
to a report produced by MIT, companies that
make decisions based entirely on automated
data analysis achieve productivity gains of
around 5-6% compared with other companies5
.
Newinsights,newservices
By simplifying the way data is stored and
accessed (document-oriented or key/value
rather than the rigid relational model), Big Data
systems enable rapid treatment of much larger
historic data sources, and analysis across
multiple unstructured databases. For Thales,
this could make it possible to cross-cue data
from IT system repositories with normal pattern
models established via automated learning
or a set of rules, in order to detect abnormal
behaviour. This approach could, for example,
be used to detect failures before they occur
on key equipment in large installations.
As with all revolutions, however, the move
towards Big Data is not without risks. According
to Jean-François Marcotorchino, VP Scientific
Director, Thales DSC “the data-centred economy
With data exploding in both
quantity and complexity,
successful businesses of
the future will be defined
by how they order, filter
and analyse the information
they collect and how they
transform this knowledge
into successful solutions.
The principles of Big Data
may wellprovidetheanswers,
andThalesispoisedtobenefit
from this revolution.
BIG DATA
7 LOGIN//Q2 2012
Bigis only just beginning, and the technical,
infrastructural and business-model implications
still need to be clearly defined. Nevertheless,
the potential is extraordinary, which explains
the current huge interest in this subject.”
With new technologies come new needs.
Capturing and analysing data makes no sense
if you do not know what you want to achieve.
If the desired outcomes are not clear at the
beginning, Big Data will only make the
complex even more complex. Massive,
automated exploitation of datasets may be
technically achievable, but the key to success
in Big Data applications will be the skill sets
of the people working in this field. As a recent
study in the Harvard Business Review concluded:
“Big Data, no matter how comprehensive or
well analysed, needs to be complemented by
Big Judgement”6
.
The revolution may just have begun, but
Thales is determined to be one of the leaders.
Discover in the next two pages how the Group
is positioning itself.
1
http://radar.oreilly.com/2008/11/the-commoditization-of-
massive.html.
2
TheWorld’sTechnologicalCapacitytoStore,Communicate,
and ComputeInformation,MartinHilbertandPriscilaLópez
(2011),Science:martinhilbert.net/WorldInfoCapacity.html.
3
http://www.weforum.org/reports/big-data-big-impact-new-
possibilities-international-development.
4
http://www.economist.com/node/15557443.
5
ErikBrynjolfsson:StrengthinNumbers:HowDoesData-Driven
Decision-makingAffectFirmPerformance?’.
6
Shah,HorneandCapella.2012.GoodDataWon’tGuaranteeGood
Decisions.HarvardBusinessReviewhttp://hbr.org/2012/04/
good-data-wont-guarantee-good-decisions/ar/1.
Thedata-centred
economyisonly
justbeginning,
andthetechnical,
infrastructural
andbusiness-model
implicationsstill
needtobeclearly
defined.Nevertheless,
thepotentialis
extraordinary,
whichexplainsthe
currenthugeinterest
inthissubject.
Jean-François Marcotorchino
VP Scientific Director, Thales DSC
Capturing and using personal data is already
a problematic area, and Big Data has the power
to make this grey area even more complex.
Will data become monopolised and monetised
by just a handful of international corporations?
And will improved analysis lead to unwanted
correlation of data from previously unlinked
sources (e.g. financial and medical records)?
For Daniel Pays, VP, Director of the advanced
R&D centre at Thales Communications & Security,
POTENTIAL ETHICAL PROBLEMS?
acceptance of the Big Data movement needs
“a concerted effort between industry and the social
sciences, and the certainty that it will comply with
national and international laws and regulations”.
“As a supplier of these products and systems,
or as an operator of security services, Thales
has an important role to play. Effective trust
mechanisms and privacy protection are critical
to the success of Big Data,” he concludes.
ABOVE A selection of graphs produced by the CeNTAI lab at Thales, representing connections and influence on social media services.
12 LOGIN//Q2 2012
How the event was organised: five zones
Space
3D radar and optical observation applications,
satellite broadband and payload processing,
the space rover, Milsatcom architecture,
reflectarray antennas in flat panels, high-speed
digital processing for meteorological satellite
instruments, CMOS and CDD detectors and more.
CivilAerospace
Avionics computing and electrical systems,
fly-by-wire systems, cartography applications,
airport security, the electronic flight bag, wireless
media streaming and future cockpit displays
integrating HUD with synthetic vision.
GroundTransportation
Critical infrastructure supervision, the gate of the
future, security applications for passengers, tracks
and stations, traffic optimisation applications,
an urban rail signalling system and a rail network
management solution for mobile dispatchers.
Security
Cloud computing and mobile phone security,
an indoor positioning system, a multiple person
real-time tracking and identification system, the
smarter, safer city application, enhanced fingerprint
acquisition, command and control systems,
cryptographic key management and more.
Defence
Cybersecurity solutions, the design system for
ballistic missile defence systems, the underwater
battle lab, the new tactile and 3D command and
control interfaces, new military communications
and security systems, enhanced UAV tactical and
strategic systems technologies, early warning and
smart radar systems, new software defined radio
technologies, military networking systems and
much more besides.
ThefirstGroup-wide
Technodays,heldatthe
PalaisdesCongrèsin
ParisfromFebruary15-17,
presentednearly100
innovationsfromThales’s
fivemarkets,andattracted
morethan3,500visitors.
A dedicated live blog enabled those who could
not be present in Paris to follow the event from
their desks. Featuring product overviews, video
segments and interviews with VIP visitors, it
attracted more than 10,000 unique visitors and
generated 50,000 page views over the period
of the event.
(http://intranet.applications.corp.thales/wp/
technodays/en)
TECHNODAYS 2012
Innovation
ondisplay
LIVE BLOG ALSO A SUCCESS
13 LOGIN//Q2 2012
Innovationisof
enormousstrategic
importancetotheThales
Group–indeed,itisone
ofthethreepillarsof
theGroup’sstrategy,
alongsidegrowthand
performance–and
underpinsthecontinued
leadershipofour
companyineachof
ourfivemarkets.
Marko Erman SVP, Research and Technology
16 LOGIN//Q2 2012
In March, the SESAR Joint Undertaking
announced the winners of the 2012 SESAR Project
Awards. The panel was unanimous in its decision
to award the prize in the Best in Class category
to the Navigation Infrastructure Rationalisation
project, led by Chama Ben Khelifa of Thales.
Whoisinvolvedintheprogramme?
SESAR is a Europe-wide joint undertaking
that brings together around 110 partners and
more than 2,000 experts. Its mandate is to
prepare the standards and develop and validate
the necessary operational procedures,
technologies and prototypes for Europe’s future
air traffic management systems. Industry players
such as Airbus and Thales are working alongside
Eurocontrol, Air Navigation Service Providers
including NORACON (NORth European and
Austrian CONsortium) and DSNA (France’s
ANSP), and airport operators.
WhatisThales’srole?
Thales is playing a leading role in SESAR, with
an involvement in 160 of the programme’s 302
projects and its 18 work packages. And the level
of our R&D investments makes us the second-
largest industry contributor after Eurocontrol.
Why are we so heavily involved? Because the
SESAR programme is a strategic opportunity for
Thales to deploy our solutions in all three areas:
ATM (where we’re No. 1 worldwide),avionics
(EuropeanNo. 1)andspace(European No. 1).
Howcanwemakethemostofourinvestment
inthisprogramme?
Internally,it’sagreatopportunitytopromote
teamworkacrosstheorganisation,withover
250oftheGroup’sexpertsinvolvedfromten
legal entitiesandfourdivisions(AirOperations,
Avionics,DefenceandSecurityC4ISystems,Space).
Externally, SESAR is forcing us to reinvent
the way we cooperate with partners such as
the European Commission, Airbus, DSNA and
Eurocontrol. Instilling a culture of collaboration
to support the convergence of technologies
is crucial to the programme’s success. And
we’re learning a lot, particularly in terms of
development methods and project management.
At the same time, we’re being very careful
to ensure that this high level of involvement
delivers value for us and a return on our
investment in terms of contracts in Europe,
and that we’re able to reuse SESAR developments
for other customers around the world.
Thalesisalsocloselyinvolvedinthe
AmericanNextGenprogramme.What
opportunitiesisthisopeningupforThales?
SESAR and NextGen are the two most ambitious
ATM modernisation initiatives of recent decades.
By working on both sides of the Atlantic,
we’re in an ideal position to develop the
most advanced, interoperable solutions,
and achieving that convergence will
be a tremendous opportunity to boost our
competitive performance at global level.
Thales has already won four contracts
under the NextGen programme.
HONOURS AT THE SESAR PROJECT
AWARDS 2012
THE SESAR PROGRAMME
Thalesisactivein
thefieldsofavionics,
ATM andspacebut
alsoinsimulation,
communication,
securityandsurface
transportation.Our
ambitionistousethis
uniquepositionandour
longexperiencewithour
customersaroundthe
worldtohelpshape
tomorrow’ssky.
Jean-Loïc Galle, SVP, Air Operations
BELOW The winning teams at the 2012 SESAR Project Awards.
Military
OPS
Center
ANSP
ATC
Airline
Operation
Center
Vehicules
Airport
MET
Service
Provider
Flow
Management
Center
17 LOGIN//Q2 2012
SWIM: The intranet
of the airways
SWIM(SystemWideInformation
Management) is the backbone
of the SESAR programme, the
secure system that will make
it possible to exchange all the necessary data
reliably and according to standardised
procedures. This secure intranet dedicated to
air traffic management will be accessible to all
operators and air traffic controllers as well as
to pilots, airports and airlines.
All these stakeholders will benefit by having
access to reliable projections about flights and
weather conditions, the most up-to-date
aeronautical information and reports on traffic
status and the capacity of the different control
centres and airports. They will all have access
to the same information at the same time, with
operational views tailored to their specific needs.
Enabling this level of heightened
interoperability requires a more service-
oriented architecture which is safer and more
secure, as well as offering additional functional
capabilities as the various systems share more
and more information. Thales’s leadership
position in the SWIM work package is crucial
in that the interoperability of its air traffic
management products will be a key success
factor in the future.”
Peter Howlett,
Thales director of
SESAR ATC projects
Initial 4D is a first step towards
4D trajectory management
(latitude, longitude, altitude
and time), one of the key
components of the SESAR programme. It’s
a combination of new procedures relying on
new technologies that enable aircraft systems
and ground-based air traffic control systems
to communicate via datalinks.
These datalinks will be used to exchange
trajectory prediction data between pilots
and controllers and uplink route information
and time constraints to i4D-enabled aircraft,
with time errors of less than 10 seconds
at certain points. This in turn will improve
traffic sequencing in the most congested parts
of Europe’s airspace. In the approach phase,
it will enable controllers to begin the sequencing
procedure earlier in the flight and manage the
descent phase more efficiently by minimising
i4D: air traffic
management takes
on a new dimension
the need for tactical interventions at
low altitudes.
Theprogrammewaslaunchedtwoyears
ago with our partners, Airbus, NORACON
and Eurocontrol MUAC (Maastricht Upper
Area Control Centre).
So where are we today? On 10 February,we
conductedthefirst4Dtrajectoryflight trial along
a route spanning four flight information regions
(FIRs) between Maastricht, Copenhagen,Malmö
andStockholm.TheThalessystems–ground
systemsatMalmöandavionicssystems that had
been specially modified for i4D and installed on
the test aircraft – worked perfectly.
All procedures, datalink communications
and ground-to-ground coordination tasks were
successfully tested. At each of the selected
waypoints, the aircraft was well within its time
constraint, with an error of just a few seconds. ”
SESARprogramme
objectives
•Increasethecapacityoftheairtraffic
managementsystemtocopewitha
projecteddoublingoftrafficvolumes
by 2030
•Improvesafetybyafactorof10
•Reducetheenvironmentalimpact
of air trafficby10%
•MaketheATMsystemmorecost
efficientby reducingoperatingcosts
by50%.
Richard Houdebert,
Thales leader for the
SWIM work package
BELOW The component elements of the SWIM network.
14 LOGIN//Q2 2012
HowisThalesinvolvedintheprotection
of theenvironment?
Thalesparticipatesinvariousnationaland
transnationalenvironmentalprogrammes
aspartofanoverallstrategyofincorporating
environmentalcriteriaintothedesignofits
productsandservices.TheManageHSE1
process,
whichwasintroducedin2011,isstartingtomake
seriousinroadsintoourculture.Forexample,the
Groupnowsystematicallyincludesenvironmental
factorsinthedesignanddevelopmentofits
productsandservices.The principlesofeco-
designcanbeappliedeffectivelyifeverybody
involvedbuysintotheGroup’sstrategyfromthe
outset–startingatthebidphaseandcontinuing
throughdevelopment,manufacturing,
purchasingandsupport.Wearesettingupan
internationalnetworkofProductHSEmanagersto
helptomakethisprocessevolveintoaspecialised
engineeringdisciplineinitsownright.Thales
Universityisprovidingaspecialisedtraining
course(ECODES)tosupportusinthiseffort.
Whatiseco-designexactly?
Eco-designisanapproachtothedesignof
aproductwithspecialconsiderationforthe
environmentalimpactsoftheproductwiththe
aimofimprovingitsenvironmentalperformance
overitswholelifecycle,whichisusuallydivided
intotheprocurement(orrawmaterials),
manufacture,useanddisposalstages.Eco-design
beginsatthetimeofthedefinitionofproduct
characteristics,becausethedesignphaseactually
determines80%offutureimpactsandoffersthe
greatestdegreeofliberty.
Howdoesitwork?
Thegoalistoturnenvironmentalchallenges
into newopportunitiesbyidentifyinghazardous
substancesatthedesignphase,findingalternatives
torestrictedorprohibitedsubstances,using
differentmaterials,savingenergy,planningfor
end-of-lifedisposalandrecycling,andsoon.Most
ofourdesignteamsarealreadyuptospeedon
energyefficiencyandenvironmentallyresponsible
materials.Nowweneedtotaketheefforttothenext
level,consolidatetheprogresswehavemadeand
continuetogetthemessageacross.
One approach is to assess the overall
environmental impact of our products over their
entire life cycle. Another approach is more
selective and involves assessing the
environmental impacts (energy consumption,
CO2 emissions, use of natural resources, etc.) for
specific phases in the life cycle (manufacturing,
distribution, use, disposal, etc.).
The deployment of eco-design in our R&D
and factories has created numerous initiatives,
reducing the environmental impacts of our
products, as well as lighting the way for further
innovation and fostering creativity. There is also
a “Roadmap” to guide the eco-design approach,
which provides a detailed evaluation of the
performance of all eco-design activities on an
annual basis and then sets the new objectives
to attain.
1
HealthSafety&Environment.
The Technodays 2012 event
was also the opportunity
for Thales to demonstrate
how an environmentally
conscious approach to our
business is part of the Group’s
innovation. Login spoke
to Sandrine Bouttier Stref,
Thales Group Environment
Director, who explains
why eco-design plays an
important role in the process.
Specific examples
SmartRadars
The Smart Radar Processing solution acts as
a filter for windfarms located near any civil
or military surface radar installations. By
removing false alarms caused by the wind
turbines, it enables windfarms to be co-located
near radar installations, and therefore offers
greater opportunities for governments to meet
their green energy targets.
Thales is also currently exploring a solution
to develop ground-based radars that can
generate their own power from the sun and the
wind. In addition to using clean energy, radar
components will contain gallium nitride (GaN),
a new material whose unique properties can
help reduce the environmental impact of
electrical and electronic equipment.
TECHNODAYS 2012
Greeninnovation
andeco-design
SmarterSaferCity
This solution offers a multitude of simulation
models for cities, some of which can help
authorities to reduce pollution in urban areas.
One of the key benefits of this system is that it
intelligently recreates city flows (cars, public
transport, pedestrians, etc.), enabling better
management and optimisation as well as
reduction of traffic congestion and travel times.
The system also allows CO2 emission modelling
to reduce the environmental impact of cities.
interview
withSandrine
Bouttier Stref
15 LOGIN//Q2 2012
Interview with Luc Lallouette
S
ESAR(SingleEuropeanSky
ATMResearch)isthetechnology
componentoftheSingleEuropeanSky
initiative,launchedbytheEuropean
Commissionin2000toharmoniseair
trafficmanagementinEuropeby2025.Tofind
outmore,wetalkedtoLucLallouette,Thales
SESARProjectDirector.
WhyisSESARsoimportant?
Europe has over 440 airports, which together
handle close to 26,000 flights a day and more
than 1.4 billion passengers a year. And while
someairportshaveupgradedtheirATMsystems,
many of them still rely on outdated tools and
technologiesthatareoutofplaceinthedigitalage.
Plus, the European authorities need to
respond to the inevitable congestion of our skies,
with air traffic volumes expected to more than
double by 2030. The European Commission
launched the Single European Sky initiative
to address these issues, and SESAR is the
component of the programme focusing on
new technology.
The ultimate objective is to transition from
conventional pilot-controller communications
to a digital system combining Europe’s ground
equipment with systems installed on board
aircraft, thereby defragmenting European
airspace. This integrated approach will lead
to new concepts of operations such as “business
trajectories” – flight paths optimised for each
operator’s own criteria, with automatic trajectory
deconfliction and delegation of new
responsibilities.
The ambitious project is being conducted
alongside the NextGen programme, which aims
to modernise air traffic management in the
United States. In a nutshell, the idea is to make
air transport safer, cleaner, more efficient – and
ultimately less costly for airlines to manage.
Astheworldleaderinair
trafficmanagement,Thales
ismorecloselyinvolvedin
theSESARprogramme–and
bringingmorenewideas
tothetable–thananyother
industryplayer.Spotlighton
thelatestdevelopmentsina
game-changingresearchand
developmentprogramme.
SESAR
THE SESAR PROGRAMME
forsafer,
cleaner,more
efficientskies
inEurope
THALES

JOSE
RODRIGUES
+61 411 541 069
Rodrigues.Sonny.Jose@gmail.com

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