Global Military Modernisation, Upgrade and Retrofit Market 2013-2023

4.7 Global Light Utility Helicopter Modernisation, Upgrade and Retrofit

Submarket 2013-2023

Table 4.14 Global Light Utility Helicopter Modernisation, Upgrade and Retrofit Submarket Forecast 2013-2023 ($m, AGR %, CAGR%, Cumulative) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013-23 Sales $m 150 155 130 110 95 70 65 75 80 85 95 105 1065 AGR (%) 3.3 -16.1 -15.4 -13.6 -26.3 -7.1 15.4 6.7 6.3 11.8 10.5 CAGR (%) 2013-18 -16.0 2018-23 10.1 CAGR (%) 2013-23 -3.8 Source: Visiongain 2013 Figure 4.15 Global Light Utility Helicopter Modernisation, Upgrade and Retrofit Submarket Forecast 2013-2023 ($m, AGR%)

180 20 160 15 140 10

5

120 0 100 -5 80

-10 AGR (%) Sales ($m)Sales 60 -15 40 -20 20 -25 0 -30 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Year Light Utility AGR (%)

Source: Visiongain 2013

Figure 4.16 Global Light Utility Helicopter Modernisation, Upgrade and Retrofit Submarket Share Forecast 2013, 2018 and 2023 (% Share) 2013 2018 2023

3.2% 1.3% 4.6%

Source: Visiongain 2013 www.visiongain.com Page 50

Global Modernisation, Upgrade and Retrofit Market 2013-2023

5.25 Algerian Military Helicopter Modernisation, Upgrade and Retrofit

Market 2013-2023

Table 5.38 Algerian Military Helicopter Modernisation, Upgrade and Retrofit Market Forecast 2013-2023 ($m, AGR %, CAGR%, Cumulative) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013-23 Sales $m 30 35 50 65 40 40 40 35 35 25 25 25 415 AGR (%) 16.7 42.9 30.0 -38.5 0.0 0.0 -12.5 0.0 -28.6 0.0 0.0 CAGR (%) 2013-18 2.7 2018-23 -9.0 CAGR (%) 2013-23 -3.3 Source: Visiongain 2013

Figure 5.25 Algerian Military Helicopter Modernisation, Upgrade and Retrofit Market Forecast 2013-2023 ($m, AGR%)

70 60 60 40

50 20 40 0 30 AGR (%)

Sales ($m)Sales -20 20 10 -40 0 -60 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Year Algeria AGR (%)

Source: Visiongain 2013

Figure 5.26 Algerian Military Helicopter Modernisation, Upgrade and Retrofit Market Share Forecast 2013, 2018 and 2023 (% Share) 2013 2018 2023

0.7% 0.8% 0.8%

Source: Visiongain 2013 www.visiongain.com Page 108

Global Military Helicopter Modernisation, Upgrade and Retrofit Market 2013-2023

7. Expert Opinion

7.1 Selex ES Selex ES is a company owned by Italian conglomerate Finmeccanica. Selex ES became operational in January 2013 following the integration of Selex Galileo, Selex Elsag and Selex Sistemi Integrati. Selex ES specialises in electronic and information technologies for defence systems, aerospace, data, infrastructures, land security and protection. The company’s headquarters are located in Rome, Italy. Selex ES has around 17,900 employees worldwide.

Fabrizio Boggiani is Director of Marketing and Sales for the Airborne and Space Systems Division of Selex ES. Visiongain interviewed Mr Boggiani in May 2013 and we are grateful for his contribution.

7.1.1 Selex ES’ Main Helicopter Upgrade Solutions Visiongain: Can you please tell us about Selex ES’s expertise in military helicopter upgrades?

Selex ES’ Fabrizio Boggiani: We make equipment for helicopter upgrades that range from flight avionics – such as mission computers, radar altimeters, autopilot – to sensors – radar, electronic warfare and navigation. We also provide mission management systems that are complete with sensors and equipped with workstations onboard.

We produce equipment for various types of , such as those produced by Agustawestland and those by companies like Sikorsky and Boeing. Currently, we are mainly working on the Apache and AW129 (attack) helicopters and the AW139 (utility helicopter).

7.1.2 Urgent Needs that Drive the Military Helicopter Upgrade Market Visiongain: What do you think are the key factors to the growth in demand in the military helicopter modernisation, upgrade and retrofit market?

Selex ES’ Fabrizio Boggiani: There a number of streams in terms of military helicopter upgrades. One, former Soviet-designed helicopters still used in some parts of Europe need to be made compatible with NATO standards. Also, in general terms what, as a company we aim to do, is to make helicopters secure. There are lots of requests for self-protection suites and in electronic warfare. There is also demand for navigation solutions, particularly to help in landing, such as those encountered in Afghanistan where lives have been lost due to the “brownout” phenomenon. There is also demand for sensors such as radar, particularly with the view for search and rescue, www.visiongain.com Page 126

Global Military Helicopter Modernisation, Upgrade and Retrofit Market 2013-2023

8. Leading Companies in the Military Helicopter Modernisation, Upgrade and Retrofit Market

8.1 AgustaWestland

Table 8.1 AgustaWestland Company Overview 2012 (Total Revenue, HQ, Ticker, Website) 2012 Total company revenue $bn $5.5bn Headquarters Amsterdam, the Netherlands Ticker (Milan Stock Exchange) FNC.MI (parent company Finmeccanica) Website www.agustawestland.com

Source: Company or government statements, news reports

Table 8.2 AgustaWestland’s Involvement in Selected Military Helicopter Modernisation, Upgrade and Retrofit Programmes (Country, Programme, Details) Country Programme Details Italy AW129C G19 Systems upgrade for fleet of attack helicopters Poland Sokol upgrades Upgrade to Sokol helicopters by AgustaWestland’s subsidiary in Poland, PZL Swidnik Poland Mi-2 Upgrades to light helicopters by AgustaWestland subsidiary PZL Swidnik UK Lynx AH9A Upgrade of legacy Lynx light helicopters. UK Merlin Capability Enhancements to Royal Navy Merlin ASW helicopters Sustainment Programme (MCSP) UK Merlin HC3A upgrades Enhancements to RAF Merlin transport helicopters

Source: Company or government statements, news reports

AgustaWestland is an Anglo-Italian helicopter company, and wholly owned subsidiary of Italy’s Finmeccanica, providing a range of solutions across the vertical lift market. In 2010 the company reported revenues of $4.9bn (EUR 3.64bn), up 4.7% on the previous year. The company, headquartered in Milan, Italy. AgustaWestland employs 13,000 people worldwide. New orders accounted for $6.7bn (EUR 5.98bn), of which purchases and upgrades accounted for 52.8%. The company increased its reach in 2010 through the acquisition of Polish company, PZL-Swidnik. www.visiongain.com Page 129