Industrial Operations

ORGANIZATIONAL ANNOUNCEMENT N. 05 / 2012 Grugliasco, April 4 - 2012 Effective immediately, I am pleased to announce the new organization and appointments of Comau Industrial Operations, consistently with guidelines defined by the General Organizational Announcement N. 01/2012 on January 10th, 2012. Industrial Operations global functions The following functions will define and drive the industrial strategy of Comau at global level, in term of make or buy choices, footprint and investment definition, competences management, localization and Best Cost Countries development, specific approach for standard product production. They will support regional execution, standardizing industrial and supply chain processes and tools, optimizing and improving the Comau vendor list, monitoring industrial performances and productivity, addressing and coordinating corrective action plans. Planning, assigned to Robert Round, on an interim basis; Manufacturing, assigned to Matteo Nosenzo; Supply Chain, assigned to Robert Round.

Region Industrial Operations, supporting all Businesses at Regional level, reporting in a matrix organization to both me and respective Region COOs. The Region Industrial Operations director is the primary referent for Region COOs and BU Region directors, responsible for all the Industrial Operations processes (Planning, CIO Leaders, Purchasing, Supply Chain Management, Manufacturing and support of Site Management), with full delegations to take decisions to support local project execution and solve any operational issue. Industrial Operations Europe assigned to Marco Busi; Industrial Operations USA assigned to Marco Andriano; Industrial Operations LATAM assigned to Edmundo Silva; Industrial Operations China assigned to Matteo Nosenzo. Alberto Bianco will support Matteo in this role and will replace him from August 1st 2012; Industrial Operations India assigned to Ashwani Dubey, on an interim basis.

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Support functions, reporting in a matrix organization both to me and to the Comau CFO, the Comau HR Vice President and the Chief Information Officer respectively: Finance, Administration & Control assigned to Paola Cossu; Human Resources assigned to Adriani Damazio; ICT Industrial Operations assigned to Girish Rao.

Finally, the following responsibilities are defined for coordinating at global level WCM Program assigned to Noman Husain, who will drive the WCM development and implementation, reporting directly to me; Environment, Health and Safety assigned to Alfredo Valentini, who will manage the Environment, Health and Safety activities, reporting both to me and to the Comau HR Vice President. As defined by the Organization Announcement N. 09/10 of October 26th 2010, within each Comau Legal Entity and facility, a specific role and responsible are identified in order to support our Employers in evaluating, preventing and managing the risks concerning environment, health and safety, and in fulfilling the local legal obligations.

Further announcements regarding the functions mentioned above will be made in the near future. Eugenio Spinolo

In attachment: Industrial Operations organization chart Planning responsibilities Manufacturing responsibilities Supply Chain responsibilities Industrial Operations Regional responsibilities CIO Leaders responsibilities

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Attached to the Organizational Announcement N. 05 / 2012 of April 4 - 2012

Comau Industrial Operations E. Spinolo

HR Comau D. Pinto

WCM Program N. Husain

Environment, Health & Safety A. Valentini

Planning R. Round (*) Industrial Operations Europe M. Busi Industrial Operations USA M. Andriano
LATAM G. Bovone

Manufacturing M. Nosenzo

Supply Chain R. Round Human Resources A. Damazio Finance, Admin. & Control P. Cossu ICT Industrial Operations G. Rao
HR Comau D. Pinto

Comau CFO G. Luise

Industrial Operations LATAM E. Silva Industrial Operations China M. Nosenzo Industrial Operations India A. Dubey

ICT Comau F. Bernocchi

Comau China S. Sack

(*) ad interim

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Attached to the Organizational Announcement N. 05 / 2012 of April 4 - 2012

Planning responsibilities: Assure capacity visibility and optimization, in order to support the definition of the strategic make or buy and alignment of production capacities, industrial structure and investment management; Drive the production allocation, specifically for standard products, sharing decisions with BUs; Evaluate the Industrial Operations resources needs, starting from the order acquisition phases till the scheduling of manufacturing activities; Production Forecast, collecting and consolidating the workload forecast both for Order Acquisition and current needs (monthly base), consistently with industrial strategy; Coordinate Production Planning, supporting CIO leaders for defining the operational make/buy by job and sourcing planning in line with the project timing; Assure the requisition management and Purchase Requests generation, consistently with released drawings and with the project plan, improving the utilization of GPS rules on SAP.

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Attached to the Organizational Announcement N. 05 / 2012 of April 4 - 2012

Manufacturing responsibilities: Analysis and proposal for defining the overall manufacturing strategy, aligned with business priorities and regional requirements (global footprint, strategic make or buy, facilities and equipment allocation); Definition of initiatives and projects to put in place the industrial strategy, coordinating regional activities and managing investments; Promotion of design for manufacturing and support Business Units for defining integrated technical solutions, especially for standard products (design, manufacturing, assembly, transport, etc.); Control the respect of the production planning in term of global workload and regional level management, assuring the assignment of key Technical Specialists (mechatronics, robot programmers, welding and tooling specialists, etc.) to projects, sharing critical decisions with BU Project Mgmt directors and Regional Industrial Operations directors; Supervise the definition and implementation of specific plans to produce new standard products, from the production of prototypes to the achievement of required results in term of product performances, quality and costs. Develop and drive cost reduction, productivity, overall equipment effectiveness and efficiency projects; Support the WCM program implementation, assuring the definition of a global planning of activities, an adequate commitment and involvement of Manufacturing at regional level, being involved in auditing and monitoring results; Address and support initiatives in Comau plants in order to assure the achievement of Environment, Health and Safety goals, working closely with the EHS manager; Support the Industrial Operations VP in managing the Manufacturing Professional family: - Analysis to address the localization in Best Cost Countries and the development of centers of excellence; - Development and management of Manufacturing competencies (competency mapping, identification of improvement areas, consequent action plans); - Definition and management of training initiatives based on common global needs; - Coordinate internal and external benchmarking, identify best practices and lessons learnt and assure their implementation; - Address and monitoring of the Manufacturing reporting (standard KPI); - Definition of common policies and processes, tools and information systems, assuring their utilization and continuous improvement, including external benchmarking with competitors and utilization of internal best practices; - Coordinate Talents identification, the definition of careers development plan, and the international mobility; - Relationship with external institutions, promoting and managing benchmarking activities.

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Attached to the Organizational Announcement N. 05 / 2012 of April 4 - 2012

Supply Chain responsibilities: Analysis and proposal for defining the strategic make or buy (alternative source of supply, cost and value analysis, etc.); Drive the definition and realization of an action plan to increase the volume of Global Sourcing, focusing the attention on the Best Cost Countries, assuring the achievement of required timing to deliver, quality standards and purchasing efficiencies; Support regional Supply Chain for defining the operational make or buy by job, improving the communication of sourcing opportunities; Support Purchasing activities at Regional level, defining global framework agreements and increasing leverage through bundled buying power; Improvement of the Comau vendor list, planning and coordinating regional Purchasing in supplier scouting activities, supporting Quality in supplier quality assurance and development activities, cleaning up inadequate and obsolete suppliers; Address the improvement of material logistics at regional level, defining and realizing specific action plan to reduce inventory levels and shipping costs, to simplify warehouse management, to assure effective internal materials distribution and shipping; Support the WCM program implementation, assuring an adequate commitment and involvement of Logistic departments at regional level, monitoring results; Support the Industrial Operations VP in managing the Supply Chain and Purchasing families: - Analysis to develop centers of excellence; - Development and management of Supply Chain and Purchasing competencies (competency mapping, identification of improvement areas, consequent action plans); - Definition and management of training initiatives based on common global needs; - Coordinate internal and external benchmarking, identify best practices and lessons learnt and assure their implementation; - Address and monitoring of the Supply Chain reporting (standard KPI); - Definition of common policies and processes, tools and information systems, assuring their utilization and continuous improvement, including external benchmarking with competitors and utilization of internal best practices; - Coordinate Talents identification, the definition of careers development plan, and the international mobility; - Relationship with external institutions, promoting and managing benchmarking activities.

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Attached to the Organizational Announcement N. 05 / 2012 of April 4 - 2012

Region Industrial Operations The Region Industrial Operations director supports all Businesses at Regional level for assuring the execution of project in term of Planning, Purchasing, Supply Chain Management, Manufacturing and support of Site Management. The CIO Leaders are responsible at Regional level for assuring the achievement of defined goals and respond directly to the Region Industrial Operations. The Region Industrial Operations director responsibilities are:

Participate to the definition of strategic make or buy and implement the decisions taken for the Region in terms of production capacities and investment; Planning the allocation and the utilization of Industrial Operations resources into the Region to satisfy local and global needs (specifically for standard product) and support workload management of Manufacturing globally; Support the Standard Product strategy defined by BUs, defining and implementing a specific Supply Chain and Purchasing approach, allocating and developing specific resources for Manufacturing; Supplier Scouting and support the Region Quality direction in Supplier Quality Assurance activities; Support the definition of the operational make or buy by job; Purchases into the Region, guaranteeing the consistency with specifications and needs, the achievement of purchasing efficiencies, the risk management and ontime delivery; Supply Chain and material logistics activities into the Region to support the project execution, including warehouse management, internal transport and distribution, inventory and shipping; Implementation into the Region of global manufacturing strategies and the WCM model (footprint, verticalization, productivity, process standardization, competencies development); Plant operations into the Region perimeter (respecting delivery times, cost, quality, etc.); Availability and coordination of technical resources (internal and external) for site activities; Technological coordination into the Region (common methodologies, standard industrial processes, overall equipment effectiveness, etc.); Shared responsibility with Human Resources Direction on Environment, Health and Safety issues; In coordination with the professional family owners of Manufacturing, of Supply Chain and Purchasing, of Project Management: - Manage and implement localisation choices (BCC) into the Region; - Align regional capacity with M/B strategy; - Manage and develop technical and managerial competences, identify and develop centers of excellence; - Coordinate internal and external benchmarking, identify best practices and lessons learnt and assure their implementation; - Industrial reporting (global/standard KPI); - Rules, methods, tools and information systems governance; - Coordinate Talents identification and careers development plan, across BUs and countries.
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Attached to the Organizational Announcement N. 05 / 2012 of April 4 - 2012

CIO Leaders CIO Leaders are the single and direct point of contact for Project Managers for managing all industrial operations issues pertaining to a project; they will assure that all the supply needs are taken in charge and satisfied in term of costs, quality and timing. Working closely with the Project Manager, as member of the Project Team, the CIO Leader responsibilities are:

Develop the project master schedule and the detailed project schedule of the CIO project activities (time baseline), review the cost estimates and define the project initial budget (cost baseline); Drive material and services acquisition, holding responsibility of supplier schedule and material timing, of purchase efficiency and risk, of supply quality; Monitor and provide the Project Manager with the Estimate to Complete (ETC) and detailed schedule update for the portion pertaining CIO activities, based on project WBS; Perform risk identification, prepare the risk register and risk response plan during project start-up and the relevant updates during the rolling phase of the project life-cycle; Analyze and evaluate scope, cost and time of the Change Requests received from the Customer; Support project close-out, assuring the settlement and close-out of any contractual agreement with suppliers and sub-contractors; Provide all necessary reporting information to the projects and management inclusive of economic performance data; Assure the correct information flow between CIO and the Business Units; Control the milestones of the projects in all phases including the start-up activities pertaining to a project.

CIO Leaders are included in the Project Management Family. The aim of this decision is to develop Project Management skills of CIO Leaders, to facilitate relationship between PM and CIO Leaders having common processes, methods ant tools, to assure an integrate management of resource needs, of Talent identification and management.

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