Supply

Supply Chain
Chain “Modernizing and
simplifying our supply
Customer
Customer Consignment
Consignment Update
Update chain to support future
business growth”

AEC
AEC
Content

1 Summary of Contract status & Inventory development

2 Overviews by SBUs

3 Overviews by Regions

4 Summary of Aging Report

5 Overviews by SBUs

6 Overviews by Regions

2 05/18/2020 AEC // Status Customer Consignment

Global CCS contract status

3 05/18/2020 AEC // Status Customer Consignment

Consignment Inventory Coverage (days)
Consignment inventory coverage (Days)
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
EUROPE NORTH AMERICA IMEA ASIA/PACIFIC W/O ME LATIN AMERICA NORTH LATIN AMERICA SOUTH

4 05/18/2020 AEC // Status Customer Consignment

Consignment Inventory
Consignment inventory
25,000,000 EUR

20,000,000 EUR

15,000,000 EUR

10,000,000 EUR

5,000,000 EUR

0 EUR
EUROPE NORTH AMERICA IMEA ASIA/PACIFIC W/O ME LATIN AMERICA NORTH LATIN AMERICA SOUTH

5 05/18/2020 AEC // Status Customer Consignment

 Consignment Inventory
Highlights/Lowlights

Europe Europe
 Good progress overall with 92% completion rate  AT: 84% Compliant or 65% (incl. CPU), somewhat
(without CPU) slow progress

o AC: 100 % Compliant North America

o AE: 100 % Compliant  Slow progress since last year end due to other
o AI: 89% Compliant priorities within legal taking time & focus away from
o AG: 92% Compliant reviewing open contracts

APAC LAS
 Incompliant contracts from 17 China AT customers  Increase in inventory value and days due to
have been discontinued 2018 system issue in SAP. Corrective action in progress
 total inventory value and inventory days reduced in
Feb (increase from last Q4), most contribution from
China AT.

05/18/2020 6
Content

1 Summary of Contract status & Inventory development

2 Overviews by SBUs

3 Overviews by Regions

4 Summary of Aging Report

5 Overviews by SBUs

6 Overviews by Regions

7 05/18/2020 AEC // Status Customer Consignment

AC
APAC EU IMEA LAN LAS NA Total

# of locations with consignment stocks

  145 3       148
(by Sept 2015)
Discontinued   -82         -82
New customer   50         50
# of locations with consignment stocks
  113 3       116
(MTD)

Contract according to corporate standard 91 % (103) 33 % (1)       90 % (104)

Contract not according to corporate standard with
MC0 approval
1 % (1)         1 % (1)

Not compliant with corporate standard

Contract to be renewed / under negotiation   33 % (1)       1 % (1)
No contract
To be discontinued 1 % (1) 33 % (1)       2 % (2)
No feedback
Other 7 % (8)         7 % (8)
G1 6 0 6
G2 22 0 22

8 05/18/2020 AEC // Status Customer Consignment

AG
APAC EU IMEA LAN LAS NA Total

# of locations with consignment stocks

7 83 13 7 2 17 129
(by Sept 2015)
Discontinued -5 -59 -5 -5 -2 -4 -80
New customer 3 2 1       6
# of locations with consignment stocks
5 26 9 2   13 55
(MTD)

Contract according to corporate standard 60 % (3) 62 % (16) 11 % (1)       36 % (20)

Contract not according to corporate standard with
MC0 approval
Not compliant with corporate standard 20 % (1) 2 % (1)
Contract to be renewed / under negotiation   23 % (6) 67 % (6) 100 % (2)   62 % (8) 40 % (22)
No contract   4 % (1) 11 % (1)       4 % (2)
To be discontinued 20 % (1) 4 % (1)       8 % (1) 5 % (3)
No feedback     11 % (1)     31 % (4) 9 % (5)
Other   8 % (2)         4 % (2)
G1 2 4 1 7
G2 1 2 3

9 05/18/2020 AEC // Status Customer Consignment

AI
APAC EU IMEA LAN LAS NA Total

# of locations with consignment stocks

51 132 54 18 14 26 295
(by Sept 2015)
Discontinued -10 -33 -26 -9 -9 -4 -91
New customer 1 7   2 1 1 12
# of locations with consignment stocks
42 106 28 11 6 23 216
(MTD)

Contract according to corporate standard 93 % (39) 74 % (78) 32 % (9) 18 % (2) 17 % (1) 26 % (6) 63 % (135)
Contract not according to corporate standard with
MC0 approval
2 % (1) 8 % (9)         5 % (10)
Not compliant with corporate standard 5 % (2)       33 % (2)   2 % (4)
Contract to be renewed / under negotiation   11 % (12) 36 % (10) 82 % (9) 17 % (1) 35 % (8) 19 % (40)
No contract   4 % (4) 21 % (6)       5 % (10)
To be discontinued   2 % (2) 4 % (1)       1 % (3)
No feedback     7 % (2)     35 % (8) 5 % (10)
Other   1 % (1)     33 % (2) 4 % (1) 2 % (4)
G1 8 4 5 0 17
G2 3 0 1 1 5

10 05/18/2020 AEC // Status Customer Consignment

AT

APAC EU IMEA LAN LAS NA Total

# of locations with consignment stocks

234 129 25 33 17 78 516
(by Sept 2015)
Discontinued -96 -40 -4 -9 -5 -23 -177
New customer 16 20 4   2 13 55
# of locations with consignment stocks
154 109 25 24 14 68 394
(MTD)

Contract according to corporate standard 13 % (20) 42 % (46) 12 % (3) 8 % (2)   40 % (27) 25 % (98)
Contract not according to corporate standard with
MC0 approval
          22 % (15) 4 % (15)
Not compliant with corporate standard 1 % (1)         10 % (7) 2 % (8)
Contract to be renewed / under negotiation 31 % (47) 30 % (33) 36 % (9) 42 % (10)   18 % (12) 28 % (111)
No contract 19 % (30) 22 % (24) 24 % (6)   7 % (1)   15 % (61)
To be discontinued 3 % (4) 1 % (1)       10 % (7) 3 % (12)
No feedback 1 % (1)   28 % (7)       2 % (8)
93 %
Other 33 % (51) 5 % (5)   50 % (12)   21 % (81)
(13)
G1 19 9 1 2 0 0 31
G2 9 8 0 3 0 0 20

11 05/18/2020 AEC // Status Customer Consignment

AE
APAC EU IMEA LAN LAS NA Total

# of locations with consignment stocks

21 6         27
(by Sept 2015)
Discontinued -3 -1         -4
New customer 2           2
# of locations with consignment stocks
20 5         25
(MTD)

Contract according to corporate standard 15 % (3) 40 % (2)         20 % (5)

Contract not according to corporate standard with
MC0 approval
70 % (14) 56 % (14)

Not compliant with corporate standard 10 % (2)   8 % (2)

Contract to be renewed / under negotiation 5 % (1) 40 % (2) 12 % (3)
No contract      
To be discontinued   20 % (1) 4 % (1)
No feedback              
Other              
G1 7 0 7
G2 0 0 0

12 05/18/2020 AEC // Status Customer Consignment

Content

1 Summary of Contract status & Inventory development

2 Overviews by SBUs

3 Overviews by Regions

4 Summary of Aging Report

5 Overviews by SBUs

6 Overviews by Regions

13 05/18/2020 AEC // Status Customer Consignment

APAC

AC AE AG AI AT Grand Total

# of locations with consignment stocks

  21 7 51 234 313
(by Sept 2015)
Discontinued   -3 -5 -10 -96 -114
New customer   2 3 1 16 22
# of locations with consignment stocks
  20 5 42 154 221
(MTD)

Contract according to corporate standard   15 % (3) 60 % (3) 93 % (39) 13 % (20) 29 % (65)

Contract not according to corporate standard with MC0 approval   70 % (14)   2 % (1)   7 % (15)
Not compliant with corporate standard   10 % (2) 20 % (1) 5 % (2) 1 % (1) 3 % (6)
Contract to be renewed / under negotiation   5 % (1)     31 % (47) 22 % (48)
No contract         19 % (30) 14 % (30)
To be discontinued     20 % (1)   3 % (4) 2 % (5)
No feedback         1 % (1) 0 % (1)
Other         33 % (51) 23 % (51)
G1 7 2 8 19 36
G2 0 1 3 9 13

14 05/18/2020 AEC // Status Customer Consignment

EUROPE

AC AE AG AI AT Grand Total

# of locations with consignment stocks

145 6 83 132 129 495
(by Sept 2015)
Discontinued -82 -1 -59 -33 -40 -215
New customer 50   2 7 20 79
# of locations with consignment stocks
113 5 26 106 109 359
(MTD)

Contract according to corporate standard 91 % (103) 40 % (2) 62 % (16) 74 % (78) 42 % (46) 68 % (245)
Contract not according to corporate standard with MC0 approval 1 % (1)     8 % (9)   3 % (10)
Not compliant with corporate standard            
Contract to be renewed / under negotiation   40 % (2) 23 % (6) 11 % (12) 30 % (33) 15 % (53)
No contract     4 % (1) 4 % (4) 22 % (24) 8 % (29)
To be discontinued 1 % (1) 20 % (1) 4 % (1) 2 % (2) 1 % (1) 2 % (6)
No feedback            
Other 7 % (8)   8 % (2) 1 % (1) 5 % (5) 4 % (16)
G1 7 0 4 4 9 24
G2 22 0 2 0 8 32

15 05/18/2020 AEC // Status Customer Consignment

IMEA
AC AE AG AI AT Grand Total

# of locations with consignment stocks

3   13 54 25 95
(by Sept 2015)
Discontinued     -5 -26 -4 -35
New customer     1   4 5
# of locations with consignment stocks
3   9 28 25 65
(MTD)

Contract according to corporate standard 33 % (1)   11 % (1) 32 % (9) 12 % (3) 22 % (14)

Contract not according to corporate standard with MC0 approval            
Not compliant with corporate standard            
Contract to be renewed / under negotiation 33 % (1)   67 % (6) 36 % (10) 36 % (9) 40 % (26)
No contract     11 % (1) 21 % (6) 24 % (6) 20 % (13)
To be discontinued 33 % (1)     4 % (1)   3 % (2)
No feedback     11 % (1) 7 % (2) 28 % (7) 15 % (10)
Other            
G1 0 1 5 1 7
G2 0 0 1 0 1

16 05/18/2020 AEC // Status Customer Consignment

LAN
AC AE AG AI AT Grand Total

# of locations with consignment stocks

    7 18 33 58
(by Sept 2015)
Discontinued     -5 -9 -9 -23
New customer       2   2
# of locations with consignment stocks
    2 11 24 37
(MTD)

Contract according to corporate standard       18 % (2) 8 % (2) 11 % (4)

Contract not according to corporate standard with MC0 approval            
Not compliant with corporate standard            
Contract to be renewed / under negotiation     100 % (2) 82 % (9) 42 % (10) 57 % (21)
No contract            
To be discontinued            
No feedback            
Other         50 % (12) 32 % (12)
G1 0 2 2
G2 1 3 4

17 05/18/2020 AEC // Status Customer Consignment

LAS
AC AE AG AI AT Grand Total

# of locations with consignment stocks

    2 14 17 33
(by Sept 2015)
Discontinued     -2 -9 -5 -16
New customer       1 2 3
# of locations with consignment stocks
      6 14 20
(MTD)

Contract according to corporate standard       17 % (1)   5 % (1)

Contract not according to corporate standard with MC0 approval            
Not compliant with corporate standard       33 % (2)   10 % (2)
Contract to be renewed / under negotiation       17 % (1)   5 % (1)
No contract         7 % (1) 5 % (1)
To be discontinued            
No feedback            
Other       33 % (2) 93 % (13) 75 % (15)
G1 0 0 0
G2 0 0 0

18 05/18/2020 AEC // Status Customer Consignment

NORTH AMERICA

AC AE AG AI AT Grand Total

# of locations with consignment stocks

    17 26 78 121
(by Sept 2015)
Discontinued     -4 -4 -23 -31
New customer       1 13 14
# of locations with consignment stocks
    13 23 68 104
(MTD)

Contract according to corporate standard       26 % (6) 40 % (27) 32 % (33)

Contract not according to corporate standard with MC0 approval         22 % (15) 14 % (15)
Not compliant with corporate standard         10 % (7) 7 % (7)
Contract to be renewed / under negotiation     62 % (8) 35 % (8) 18 % (12) 27 % (28)
No contract            
To be discontinued     8 % (1)   10 % (7) 8 % (8)
No feedback     31 % (4) 35 % (8)   12 % (12)
Other       4 % (1)   1 % (1)
G1 0 0 0 0
G2 0 0 0 0

19 05/18/2020 AEC // Status Customer Consignment

Content

1 Summary of Contract status & Inventory development

2 Overviews by SBUs

3 Overviews by Regions

4 Summary of Aging Report

5 Overviews by SBUs

6 Overviews by Regions

20 05/18/2020 AEC // Status Customer Consignment

Consignment Stock Aging Status - Global

21 05/18/2020 AEC // Status Customer Consignment

Consignment Stock Aging Status - Global

22 05/18/2020 AEC // Status Customer Consignment

Content

1 Summary of Contract status & Inventory development

2 Overviews by SBUs

3 Overviews by Regions

4 Summary of Aging Report

5 Overviews by SBUs

6 Overviews by Regions

23 05/18/2020 AEC // Status Customer Consignment

AC

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AC

25 05/18/2020 AEC // Status Customer Consignment

AG

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AG

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AI

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AI

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AT

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AT

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AE

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AE

33 05/18/2020 AEC // Status Customer Consignment

Content

1 Summary of Contract status & Inventory development

2 Overviews by SBUs

3 Overviews by Regions

4 Summary of Aging Report

5 Overviews by SBUs

6 Overviews by Regions

34 05/18/2020 AEC // Status Customer Consignment

APAC

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APAC

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EUROPE

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EUROPE

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IMEA

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IMEA

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LAN

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LAN

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LAS

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LAS

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NORTH AMERICA

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NORTH AMERICA

46 05/18/2020 AEC // Status Customer Consignment