Aerospace & Defense 2016 Year in Review

Aerospace &Defense 2016 YEAR IN REVIEW January 2017

Happy New Year! We hope you enjoy our 2016 M&A Yearbook. Inside you will find: ¡¡ Our thoughts on the Aerospace & Defense industry in 2017 ¡¡ Some preliminary thoughts on what the new administration will mean for our industry ¡¡ Public company statistics ¡¡ A comprehensive list of M&A transactions that took place in the industry last year I hope the enclosed information is useful to you as you reflect on the last year and think about what lies ahead in this new one. Stout Risius Ross Advisors (Stout) is a full service investment bank, advising middle market companies on strategy, capital structure, and mergers and acquisitions. We’re no strangers to the Aerospace & Defense industry. In fact, more than 400 Aerospace and Defense companies have sought financial advice from Stout. Clients value our deep knowledge of the industry and how closely we monitor it. Simply put, we know what makes A&D companies valuable. People know us for selling companies – but even if you don’t anticipate a liquidity event any time soon, please consider starting a dialogue with us. We love to talk about this dynamic industry and often can share insights on what you can do to maximize the value of your company.

Regards,

Eric David Reuther Stout Risius Ross Advisors, LLC +1.312.765.7253 [email protected]

2 M&A in 2017: After the Fog... Comes More Fog

This time last year we wrote, “We’ll be to the new administration. It seems likely watching the presidential election, to be that on a macro basis, defense spending will sure.” Watch it we did, and what a show it increase, and we will also see the end of the was. It certainly kept us…. Entertained? Budget Control act (sequestration). Large- Horrified? Mesmerized? Certainly fascinated. scale programs like the F-35 and new bomber And the outcome will have implications for will almost certainly face scrutiny and may our industry. We’re just not sure what they ultimately see margins squeezed. That could will be. Still, we’ve been checking twitter trickle down the supply chain and ultimately daily for clues and talking with many industry affect values of component suppliers. But it’s colleagues about it all. Below, we set forth our tough to predict exactly which programs and thoughts on trends that will drive Aerospace & suppliers will face that pressure (like I said, I Defense mergers and acquisitions in 2017. check twitter every morning). There will be winners too. We’re still facing Defense threats around the world. ISIS and Russia Over the last year, many clients spoke with have been making headlines, but the Asia- us about life after sequestration. What made Pacific theater of war will also present sequestration difficult for M&A wasn’t just challenges (and opportunities) as we gear up. the magnitude of the cuts mandated, but Foreign governments, particularly in Europe, it was the lack of clarity around where the may be pressured to spend more on defense. cuts would come from. As we gained clarity Export programs may benefit, though we’re around where the cuts were going to happen, carefully watching programs like India’s “build- it became easier to invest in defense. Prices it-here” fighter program as the new president began to rise. And as we began to see the is no friend to off-shoring and technology light at the end of the tunnel – an end to transfer. We write more about the defense the cuts coming – asset prices rose further. world on page 11. We spent a lot of time this past year talking about investing in defense. Everyone wanted Commercial to buy. And as prices rose, sellers became We talked and wrote ad nauseam about the more receptive to selling. commercial order book. We watch it carefully. Then the election happened. Uncertainty In previous cycles we’ve noted that values has returned. Clients are telling us that they anticipate orders – which means values are taking a bit of a wait-and-see approach spike right before orders emerge and fall

3 For more information (Continued from previous page) on Stout’s Aerospace & Defense industry precipitously when orders dry up. Well, practice, contact us: The Best of the Rest orders are drying up. And yet values aren’t Business aviation has been bumping along falling. When we talk to clients about this, the bottom for years. Unfortunately, clients Eric D. Reuther they point to the backlog. Fair point. Previous we talk to seem convinced that 2017 will +1.312.765.7253 cycles have never approached this level of be much of the same. Some point to 2018 [email protected] backlog. And so even if there’s softness in as a potentially better year for the industry the backlog (or double counting) – and there as several new models come online, yet almost certainly is – it’s still so profoundly Gregory P. Range others seem skeptical that this will cure an large that it supports values. For now. +1.310.775.2510 industry suffering from oversupply of both [email protected] Buyers of commercial assets are getting new and used aircraft. more cautious. They’re concerned that Rotorcraft is a tale of two cities. The we’re at the top of the cycle, and perhaps commercial rotorcraft world continues Jeffrey S. Shippy even past it. They don’t want to over pay. to suffer from weak oil industry sales. +1.310.846.8893 We expect to see asset values start to The defense side of the business, on [email protected] drop, though probably not too fast and the other hand, seems poised to benefit probably not too much. That backlog will from the new administration as well as provide visibility for a lot of companies Aziz El-Tahch foreign demand. Operators talk about and will let buyers get comfortable paying +1.646.807.4224 strong commercial niches – infrastructure, higher multiples. [email protected] firefighting, etc. – and potential opportunity We’re watching for chinks in the backlog in outsourced defense work. armor. Oil remains relatively low-priced. That Other areas our clients are talking about: the Paul R. Mallarkey allows older planes to fly longer and still MRO market is strong with opportunities on +1.703.848.4954 remain profitable. Will that induce some the horizon for composite MRO and further [email protected] carriers to push off taking delivery of new demand as operators fly older aircraft longer. aircraft? Airline profitability is another factor. Unmanned vehicles will see incredibly strong 2016 was a record year, particularly for demand across the board – defense and Gregory A. O’Hara U.S. airlines. 2017 will likely be profitable commercial – but finding opportunities to +1.216.373.2992 as well, but not as strong as 2016. Middle invest in frustrates buyers. Cybersecurity [email protected] Eastern airlines, in particular, seem to be presents a host of opportunities but also under pressure. That could spell more significant challenges – picking winners and trouble for the already depressed twin-aisle William D. Adams losers is difficult. market. Will the single-aisle backlog come +1.312.763.6240 under pressure? [email protected]

Zachary S. Wiersma +1.312.763.6641 [email protected]

About the author – Eric D.Reuther

Eric Reuther is a senior corporate finance and mergers & acquisitions professional within Stout’s Investment Banking Group, where he focuses on the Aerospace and Defense Industry. Mr. Reuther started his investment banking career in 1998 and has experience leading transactions across various sectors of the Aerospace and Defense industry, including mergers, acquisitions, leveraged buyouts, capital raising and strategic advisory. Phone: +1.312.765.7253 Email: [email protected]

4 Q2 AEROSPACE & DEFENSE M&A TRANSACTIONS

TABLE OF CONTENTS

SECTION PAGE

I. 2016 M&A Year in Review 6

II. 2016 Scorecard 7

III. Notable 2016 M&A Transactions 8

IV. Orders, Deliveries & Backlogs 10

V. Defense Industry: Post-Election Perspectives 11

VI. Publicly Traded Companies 12

VII. Stout’s Aerospace & Defense Practice 15

VIII. Appendix: 2016 M&A Transactions 19

5 2016 M&A YEAR IN REVIEW

M&A VOLUME AND VALUATIONS Source: Capital IQ

350 25.0x 291 Volume and Valuation Trends 300 277 20.0x 237 ¡¡ M&A transaction volume increased 5% to 250 201 181 281 186 12.6x 15.0x 291 transactions, and median valuation 200 11.9x 10.7x 134 8.9x multiples decreased 15%, to 10.7x EBITDA 150 8.7x 8.6x 10.0x in 2016. 7.6x 100 6.4x 5.0x 50 Sector Trends 0 0.0x 2009 2010 2011 2012 2013 2014 2015 2016 ¡¡ The strongest sectors of A&D M&A growth last year occurred within the machined parts # of Deals EV / LTM EBITDA (Median) & components sector. M&A VOLUME BY SECTOR ¡¡ Consolidation within military and defense continued as players continued to adjust Source: Capital IQ and consolidate as a result of the changing 2% 4% Electronics, IT & Communication Systems 3% 18% defense climate (shifting away from ground 4% Ops., Support & MRO Products/Services deployment to air and sea defense). Structures & Materials Traditional Military & Defense 13% ¡¡ Stable demand continues to exist for 6% Machined Parts & Components operations, support, & MRO products/ Propulsion, Braking & Landing Systems services, interiors, cabins, & control Interiors, Cabins & Control Systems 6% 11% systems, UAVs & space, and traditional UAVs & Space military & defense. 4% Aircraft Manufacturing Aircraft Leasing Cyber Technological Defense Buyer/Seller Trends 29% ¡¡ Both strategic and financial buyers were active in A&D transactions in 2016. There M&A GROWTH BY SECTOR was a noticeable increase in transactions Source: Capital IQ coming from strategic buyers, particularly 150.0% 116.7% those completing acquisitions as add-ons to 100.0% existing A&D platforms. 41.7% 50.0% 18.2% 19.4% ¡¡ The majority of sellers continue to be 5.1% 18.5% 0.0% 0.0% owners of privately held companies. Publicly traded and private equity sellers -50.0% -22.7% -22.7% -25.0%

l represented a relatively small share of &D transaction volume. Systems Total A Total Traditional Traditional

Components ¡¡ M&A activity continues to be supported UAVs & Space UAVs Communication Electronics, IT & Electronics, Control Systems Landing Systems Machined Parts & Products/Services Military & Defense Interiors, Cabins & Interiors, by ongoing consolidation in the public- Propulsion, Braking & Propulsion, Ops., Support Ops., & MRO Aircraft Manufacturing Structures & Materials companies sector, stronger balance sheets, a favorable lending environment, M&A ACTIVITY BY BUYER/SELLER TYPE and increasingly competitive demand from Source: Capital IQ financial buyers. 100% 81% 80% 60% 60%

40%

19% 21% 20% 13% 7%

0% Strategic Financial Hybrid Private Private Equity Corporate Buyer Type Seller Type 6 2016 SCORECARD

AEROSPACE & DEFENSE SCORECARD Source: Capital IQ, U.S. Energy Information Administration, and Stout Research

Scorecard Metric 2016 Scorecard Metric 2016 U.S. Gulf Coast Kerosene Type Jet Fuel Spot Price Aerospace & Defense M&A Transactions: 291 51.27% FOB (Price Change Per Gallon) –$1.55 as of 12/31/2016

Equity Market Performance: Net Aircraft Orders

Aircraft, Structures & Support 9.4% Boeing (as of December 31, 2016) 668

Mechanical, Propulsion & Landing 13.8% Airbus (as of December 31, 2016) 731

Electronics, Avionics & Interior 11.9% Total Net Aircraft Orders 1,399

Military & Defense 17.8%

2016 MARKET PERFORMANCE

Source: Capital IQ 25% 20% 15% 10% 5% 0% -5% -10% -15% -20%

S&P 500 Index Aircraft, Structures & Support Mechanical, Propulsion & Landing Electronics, Avionics & Interior Military & Defense

2016 VALUATION TRENDS – EV/NTM EBITDA Source: Capital IQ. EV = Enterprise Value 13.0x

12.0x

11.0x

10.0x

9.0x

8.0x

7.0x

S&P 500 Index Aircraft, Structures & Support Mechanical, Propulsion & Landing Electronics, Avionics & Interior Military & Defense

Aircraft, Structures & Support: Airbus Group SE (AIR), The Boeing Company (BA), Bombardier Inc. (BBD.B), CAE Inc. (CAE), Embraer S.A. (EMBR3), HEICO Corporation (HEI), Honeywell International Inc. (HON), Kaman Corporation (KAMN), Latécoère S.A. (LAT), LMI Aerospace, Inc. (LMIA), Spirit AeroSystems Holdings, Inc. (SPR), Textron Inc. (TXT), Triumph Group,Inc. (TGI). Mechanical, Propulsion & Landing: AAR Corp. (AIR), Curtiss-Wright Corporation (CW), Héroux-Devtek Inc. (HRX), Meggitt PLC (MGGT), Moog Inc. (MOG.A), Rolls-RoyceHoldings plc (RR.), Safran SA (SAF), Senior plc (SNR), TransDigm Group Incorporated (TDG). Electronics, Avionics & Interior: AMETEK, Inc. (AME), Astronics Corporation (ATRO), B/E Aerospace, Inc. (BEAV), Cobham plc (COB), Dassault Systèmes SE (DSY), Ducommun Incorporated (DCO), Esterline Technologies Corporation (ESL), Rockwell Collins, Inc. (COL), Teledyne Technologies Incorporated (TDY), Thales SA (HO), Ultra Electronics Holdings plc (ULE), Zodiac Aerospace (ZC). Military & Defense: BAE Systems plc (BA.), Chemring Group plc (CHG), General Dynamics Corporation (GD), L3 Technologies, Inc. (LLL), Leonardo S.p.a. (LDO), Lockheed Martin Corporation (LMT), Northrop Grumman Corporation (NOC), Orbital ATK, Inc. (OA), Raytheon Company (RTN), SAAB AB (publ.) (SAAB B).

7 NOTABLE 2016 M&A TRANSACTIONS

TOP 2016 M&A TRANSACTIONS – Sorted by Enterprise Value

¡¡ Announced: October 6, 2016 ¡¡ Multiples: 10.8x EV/Revenue. 21.4x EV/EBITDA ¡¡ Transaction Comments: Avolon Holdings Limited signed a definitive agreement to acquire C2 Aviation Capital, Inc. from C.I.T. Leasing Corporation for $10 billion on October 6, 2016, implying an enterprise value of $13.4 billion. + ¡¡ Target: C2 Aviation Capital, Inc., a subsidiary of C.I.T. Leasing Corporation, is an aircraft leasing company focusing on acquiring leasing, and managing commercial aircraft in the United States and internationally.

¡¡ Announced: October 23, 2016 ¡¡ Multiples: 2.9x EV/Revenue. 13.6x EV/EBITDA ¡¡ Transaction Comments: Rockwell Collins Inc. (NYSE:COL) entered into a definitive agreement to acquire B/E Aerospace Inc. (NasdaqGS:BEAV) for $6.3 billion in + cash and stock on October 23, 2016, implying an enterprise value of $8.2 billion. ¡¡ Target: B/E Aerospace, Inc. is a publicly owned company that designs, manufactures, sells, and services cabin interior products for commercial aircraft and business jets internationally.aircraft and business jets internationally.

¡¡ Announced: January 26, 2016. Closed: August 16, 2016 ¡¡ Multiples: Undisclosed ¡¡ Transaction Comments: Leidos Holdings, Inc. (NYSE:LDOS) completed the acquisition of Information Systems & Global Solutions Business from Lockheed Martin for an enterprise value of $3.9 billion on August 16, 2016. + ¡¡ Target: Lockheed Martin Information Systems & Global Solutions, Inc. key business segments include Mission IT, Intelligence Services, Healthcare Information Systems & Global Information, Infrastructure and Logistics, and Transportation. Solutions Businesst

¡¡ Announced: March 18, 2016 ¡¡ Multiples: 1.1x EV/Revenue ¡¡ Transaction Comments: KKR & Co. L.P. (NYSE:KKR) entered into an agreement to acquire Defense Electronics Business from Airbus Defense and Space GmbH + for an enterprise value of $1.2 billion on March 18, 2016. ¡¡ Target: Airbus Group SE, Defense Electronics Business comprises mission- critical sensors, integrated systems, and services for defense and security Defense Electronics Business applications and is located in Germany.

¡¡ Announced: May 24, 2016. Closed: June 23, 2016 ¡¡ Multiples: Undisclosed ¡¡ Transaction Comments: TransDigm Inc. completed the acquisition of ILC Industries, LLC from Behrman Capital on June 23, 2016 for an enterprise value + of $1.0 billion. ¡¡ Target: ILC Industries, LLC, along with its subsidiaries, manufactures data bus, motion control, and solid-state power controller products.

Represents Strategic Acquirer Represents Private Equity Acquirer 8 Source: Capital IQ and Stout Research NOTABLE 2016 M&A TRANSACTIONS NOTABLE 2016 M&A TRANSACTIONS (CONT.)

TOP 2016 M&A TRANSACTIONS – Sorted by Enterprise Value

¡¡ Announced: July 11, 2016 ¡¡ Multiples: 1.0x EV/Revenue. 6.2x EV/EBITDA ¡¡ Transaction Comments: Rolls Royce Holdings plc (LSE:RR.) agreed to acquire the remaining 53.1% stake in Industria de Turbo Propulsores SA from SENER Grupo + de Ingeniería S.A. for an enterprise value of $795 million on July 11, 2016. ¡¡ Target: Industria de Turbo Propulsores S.A. engages in the engineering, research and development, manufacture and casting, and assembly and testing of aeronautical engines and gas turbines.

¡¡ Announced: September 6, 2016. Closed: November 29, 2016 ¡¡ Multiples: 9.4x Revenue. NM EV/EBITDA ¡¡ Transaction Comments: GE Aviation completed the acquisition of 46.4% stake in Arcam AB (OM:ARCM) for an enterprise value of $628 million in cash on + November 29, 2016. ¡¡ Target: Arcam AB provides additive manufacturing solutions for the production of metal components to customers in the United States, Europe, and Asia. Arcam AB is headquartered in Mölndal, Sweden.

¡¡ Announced: November 2, 2016. Closed: December 2, 2016 ¡¡ Multiples: 1.0x EV/Revenue ¡¡ Transaction Comments: Huntington Ingalls Industries, Inc. (NYSE:HII) completed the acquisition of Camber Corporation from New Mountain Capital, LLC for an enterprise value of $380 million on December 2, 2016. + ¡¡ Target: Camber Corporation provides engineering and technical services, cyber operations technology, mission critical support services, and training solutions to United States federal agencies and affiliates, international government, and commercial customers.

¡¡ Announced: August 12, 2016. Closed: September 16, 2016 ¡¡ Multiples: Undisclosed ¡¡ Transaction Comments: KBR Holdings, LLC completed the acquisition of Honeywell Technology Solutions Inc. from Honeywell International Inc. + (NYSE:HON) for an enterprise value of $300 million on September 16, 2016. ¡¡ Target: Honeywell Technology Solutions Inc. provides management, space systems and services, engineering, logistics, information technology, and testing and calibration solutions. Honeywell Technology Solutions Inc.

¡¡ Announced: October 11, 2016. Closed: November 16, 2016 ¡¡ Multiples: Undisclosed ¡¡ Transaction Comments: DigitalGlobe, Inc. (NYSE:DGI) completed the acquisition of The Radiant Group, Inc. from Aston Capital, LLC for an enterprise value of $140 million on November 16, 2016. + ¡¡ Target: The Radiant Group, Inc. provides technical solutions and systems Aston engineering and services to defense and government sector and is based Capital, LLC in Chantilly, Virginia.

Represents Strategic Acquirer Represents Private Equity Acquirer 9 Source: Capital IQ and Stout Research ORDERS, DELIVIERIES, & BACKLOGS

AEROSPACE SUPPLIER INDEX EV / LTM EBITDA VS. ORDERS Boeing and Airbus Deliveries, Orders,

14.0X 4,000 and Backlogs 12.2 x 12.3 x ¡¡2017 was another solid year for commercial 12.0X 11.4x 3500 11.4 x 11.2x 10.8 x 11.0x 10.7x aerospace, with Boeing and Airbus achieving 3000 10.0X 9.3x 9.4x airframe deliveries of 748 and 688, respectively. 8.5x 8.2x 8.4x 8.4x 2500 8.0X ¡¡Commercial aircraft backlogs are stable at 6.5x 6.3x 6.4x 2000 all-time highs (combined Boeing and Airbus 6.0X backlogs stayed relatively flat in 2016).

LTM EV / LTM EBITA 1500 AIRCRAFT ORDERS 4.0X 1000 Note: EV/LTM EBITDA multiples represent average multiple of each calendar year for Aerospace Supplier Index; average excludes multiples greater than 20x 2.0X 500 (1) A&D Supplier Index constituents include: AAR, Ametek, Astronics, B/E Aerospace, CAE, Cobham, Curtiss-Wright, Ducommun, Esterline Technologies, HEICO, Heroux-Devtek, Honeywell International, Kaman, Latécoère, LMI Aerospace, Meggitt, Moog, Rockwell Collins, 0.0X 0 Rolls Royce Holdings, Safran, Senior, Spirit AeroSystems Holdings, Teledyne Technologies, Thales, TransDigm Group, Triumph Group, Ultra Electronic Holdings, and Zodiac Aerospace 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2017P 2018P 2019P (2) Boeing and Airbus combined annual aircraft orders *Airbus orders as of December 31, 2016; Boeing orders as of December 31, 2016 Supplier EV / LTM EBITDA Aircraft Orders (Boeing & Airbus) Source: Airbus, Boeing, S&P Capital IQ, Inc., International Monetary Fund, Wall Street research

SINGLE-AISLE DELIVERIES (1) TWIN-AISLE DELIVERIES (2) Source: Boeing, Airbus, and Stout research Source: Boeing, Airbus, and Stout research 1,200 1,089 1,035 450 411 406 Airbus Boeing 975 986 401 933 1,000 377 870 400 Airbus Boeing 341 793 774 777 350 319 800 697 676 660 650 646 300 605 246 546 233 600 508 516 250 218 199 205 458 190191 191 195 432 177 182 200 167 350 154 146 400 135143 150 227 100 200

0 0 E E 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 17 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

(1) Deliveries for the following aircraft families: Boeing 717, 737, 757; McDonnell Douglas MD-80, MD-90; Airbus A320 (2) Deliveries for the following aircraft families: Boeing 747, 767, 777, 787; McDonnell Douglas MD-11; Airbus A330, A340, A350, A380

BOEING AND AIRBUS BACKLOGS Source: Boeing and Airbus 8,000

7,000

6,000 Airbus Boeing

5,000

4,000

3,000

2,000

1,000

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

10 DEFENSE INDUSTRY: POST-ELECTION PERSPECTIVESa

William D. Adams, Stout Analyst

Riding the Wave: Defense Cycles Turning Defense valuations increased dramatically in 2016. Stout’s Military & Defense Index exhibited an increase of 17.8% YoY. Values were largely driven in the latter part of the year with the unanticipated victory by President Donald Trump in November’s 2016 Presidential election. Trump campaigned on the reestablishment of U.S. military dominance via aggressive defense investments. Trump’s proposed spending increases span across a multitude of military branches and acquisition programs. Although we can only speculate on what the President’s actual budget will comprise, initial estimates point to $90 billion in spending increases annually under the new administration. The proposed defense department spending plans include new additions of: ¡¡ 80 Navy ships 1,200 Air Force aircraft ¡¡ 65,000 Army soldiers 13,000 Marine soldiers

Trump takes to Twitter: F-35 and Air Force One In addition to the proposed incremental spending increases mentioned previously, President Trump has been publicly outspoken about defense spending cuts in bloated areas of the DoD’s budget. The President has even gone as far as to single out specific companies for praise or criticism, the latter occurring in early December when President Trump claimed that the government’s second largest defense contractor, Boeing Co., had run up excessive costs on the development of the new Air Force One aircraft. Just one week later, President Trump took to Twitter with targets set on Lockheed Martin Corp., the government’s largest defense contractor, stating in a tweet that the “program and cost” of the F-35 Joint Strike Fighter “is out of control”. “Billions of dollars can and will be saved on military purchases after January 20th,” stated Mr. Trump, referring to the day he was sworn in as President of the United States. Although his delivery is uncharacteristic of a world leader, President Trump undoubtedly strikes on some curious points. After all, the Pentagon anticipates buying more than 2,400 F-35s to replace a significant portion of its aged combat jet fleet. But the cost of the F-35 program has doubled from initial estimates to over $400 billion and has been marred by countless shortcomings in technical and operational abilities, and has also suffered from significant production problems. The F-35 pilot’s helmet, each individually sculpted, carries a daunting $400,000 price tag. Lockheed’s response to the singling-out neutralized the situation for the time being announcing that they “welcome the opportunity to address any questions the President has about the program” and that the company “understands the importance of affordability and that’s what the F-35 is all about.” President Trump’s outspokenly aggressive interest in increased defense spending coupled with his stark criticism of bloated areas of the DoD’s budget set an interesting landscape for the defense industry in 2017 and beyond. We are excited about the new opportunities that President Trump’s initiatives will create for the sector going forward.

11 PUBLICLY TRADED COMPANIES

ENTERPRISE VALUE / LTM EBITDA MULTIPLES Source: Capital IQ, as of December 30, 2016

19.3x 20.0x 18.8x

17.5x 18.0x 16.8x

16.0x 15.2x

13.6x 13.7x 14.0x 13.2x 13.2x 12.7x 12.5x 12.7x 12.6x 12.3x 12.3x 12.1x 11.9x 12.2x 11.7x 11.8x 11.8x 12.0x 11.6x 11.5x 12.0x 10.9x 11.5x 10.8x 10.6x 10.7x 10.2x 10.2x 10.2x 9.8x 9.7x 9.4x 10.0x 9.5x 9.1x 9.3x 8.1x 8.1x 8.0x 7.2x 7.4x

6.0x

4.0x

2.0x NM NM 0.0x I . I . L T L Y E T L E F 3 R T R R E Y O X B R N C A N G O G B ZC BA OA HO GD GT BA CW AI HE TG AI LL RO RR MN D. B LA G. TX ES SA UL TD LM CA SP DS CO RT LD BR HR SN TD AM CO HO DC CH NO LMIA BEAV AT KA BB MG AAB MO EM S Aircraft, Structures & Support Mechanical, Propulsion & Electronics, Avionics & Interior Military & Defense Landing

ENTERPRISE VALUE / NTM EBITDA Source: Capital IQ, as of December 30, 2016

20.0x

18.0x 16.8x 15.8x 16.0x 16.0x

13.0x 14.0x 13.1x 12.6x 12.6x 12.6x 12.7x 12.3x 11.8x 12.1x 11.5x 11.3x 11.2x 11.2x 11.4x 12.0x 11.0x 10.6x 10.6x 10.5x 10.1x 9.8x 10.0x 9.3x 9.4x 9.5x 9.4x 9.6x 9.6x 9.3x 9.2x 10.0x 8.4x 8.4x 8.3x 7.8x 7.8x 7.7x 7.5x 7.1x 8.0x 6.9x 6.7x 6.3x 6.4x 6.0x

4.0x

2.0x

0.0x I I . . 3 L L T L T T F E E Y E B Y V X R A N C R R R N O G O G B BA ZC GT OA RO HO GD MN BA AI HE CW TG AI LL D. B RR G. LA TX ES BR UL SA TD LM CA SP DS CO RT LD HR SN TD CO AM HO DC CH NO LMIA BEA AT KA BB MG MO EM SAAB Aircraft, Structures & Support Mechanical, Propulsion & Electronics, Avionics & Interior Military & Defense Landing

12 PUBLICLY TRADED COMPANIES (CONT.) PUBLICLY TRADED COMPANIES SelectQ2 AEROSPACE Operating Performance & DEFENSE Metrics M&A TRANSACTIONS

LTM LTM Margin(a) 3-Year CAGR(b) Debt / ($ millions) Revenue EBITDA EBIT Gross Profit EBITDA EBIT Revenue EBITDA EBIT EBITDA Aircraft, Structures & Support Airbus Group SE $72,152.0 $5,063.8 $2,601.0 12.5% 7.0% 3.6% (2.0%) 2.9% 4.9% 2.5x The Boeing Company 94,858.0 7,619.0 5,771.0 13.6% 8.0% 6.1% 5.6% 4.8% 6.0% 1.4 Bombardier Inc. 16,976.0 335.0 100.0 9.9% 2.0% 0.6% 3.4% (5.9%) (11.5%) NM CAE Inc. 2,000.6 388.2 246.7 28.9% 19.4% 12.3% (4.2%) (5.3%) (8.4%) 2.5 Embraer S.A. 7,004.9 419.3 317.5 18.8% 6.0% 4.5% (4.8%) (9.3%) (11.8%) 10.0 HEICO Corporation 1,376.3 331.8 271.5 37.5% 24.1% 19.7% 10.8% 14.8% 14.4% 1.4 Honeywell International Inc. 39,299.0 7,798.0 6,803.0 30.8% 19.8% 17.3% 0.8% 14.9% 18.0% 2.0 Kaman Corporation 1,827.6 158.0 117.1 29.6% 8.6% 6.4% 4.3% 6.9% 6.8% 2.7 Latécoère S.A. 823.8 56.1 43.5 37.5% 6.8% 5.3% (3.0%) (1.2%) 0.1% 4.1 LMI Aerospace, Inc. 350.4 38.2 18.3 18.2% 10.9% 5.2% 10.4% 0.6% (14.3%) 6.6 Spirit AeroSystems Holdings, Inc. 6,832.3 928.7 745.4 14.7% 13.6% 10.9% 7.2% 122.7% NA 1.2 Textron Inc. 13,886.0 1,600.0 1,140.0 17.5% 11.5% 8.2% 3.1% 4.8% 4.2% 2.4 Triumph Group, Inc. 3,739.7 (169.9) (206.0) 6.4% (4.5%) (5.5%) 2.2% (7.9%) (5.0%) NA Group Median 18.2% 8.6% 6.1% 3.1% 2.9% 2.1% 2.5x Group Mean 21.2% 10.3% 7.3% 2.6% 11.0% 0.3% 3.3 Mechanical, Propulsion & Landing AAR Corp. $1,673.0 $121.4 $72.8 15.0% 7.3% 4.4% (5.2%) (12.0%) (10.0%) 1.3x Curtiss-Wright Corporation 2,132.1 407.3 310.5 35.9% 19.1% 14.6% 6.6% 11.8% 15.7% 2.4 Héroux-Devtek Inc. 305.7 46.6 28.5 18.0% 15.3% 9.3% 3.3% 6.6% 6.8% 2.4 Meggitt PLC 2,308.4 363.5 220.6 38.7% 15.7% 9.6% (2.4%) (11.2%) (14.2%) 4.9 Moog Inc. 2,411.9 323.0 224.3 29.5% 13.4% 9.3% (0.4%) (1.9%) (2.6%) 3.1 Rolls-Royce Holdings plc 18,368.9 2,310.6 1,707.0 23.3% 12.6% 9.3% 0.8% 6.3% 3.3% 1.9 Safran SA 20,894.0 4,370.0 3,343.9 49.0% 20.9% 16.0% 3.1% 16.4% 23.5% 1.1 Senior plc 1,150.6 141.5 80.8 22.2% 12.3% 7.0% 2.7% (4.2%) (9.7%) 2.1 TransDigm Group Incorporated 3,171.4 1,446.4 1,325.5 55.5% 45.6% 41.8% 16.6% 15.4% 15.6% 7.1 Group Median 29.5% 15.3% 9.3% 2.7% 6.3% 3.3% 2.4x Group Mean 31.9% 18.0% 13.5% 2.8% 3.0% 3.2% 2.9 Electronics, Avionics & Interior AMETEK, Inc. $3,855.1 $1,020.6 $858.2 36.0% 26.5% 22.3% 6.0% 8.7% 8.2% 2.1x Astronics Corporation 636.4 100.5 74.5 25.6% 15.8% 11.7% 37.5% 46.1% 44.3% 1.6 Aerospace, Inc. 2,861.7 606.3 522.1 39.3% 21.2% 18.2% 12.6% 19.6% 19.6% 3.4 Cobham plc 2,579.8 449.2 130.8 30.9% 17.4% 5.1% 2.4% (1.6%) (17.4%) 4.1 Dassault Systèmes SE 3,346.3 917.0 778.5 84.6% 27.4% 23.3% 4.9% 2.3% 1.8% 1.2 Ducommun Incorporated 564.7 48.6 24.4 17.9% 8.6% 4.3% (3.8%) (20.4%) (33.4%) 3.6 Esterline Technologies Corporation 1,992.6 278.5 178.2 33.6% 14.0% 8.9% (1.8%) (12.3%) (15.8%) 3.1 Rockwell Collins, Inc. 5,259.0 1,210.0 1,024.0 31.4% 23.0% 19.5% 3.4% 3.3% 2.7% 1.8 Teledyne Technologies Incorporated 2,198.2 354.5 266.8 38.3% 16.1% 12.1% 2.6% 4.8% 4.8% 1.7 Thales SA 16,172.1 1,633.7 1,165.0 24.0% 10.1% 7.2% (6.5%) (0.5%) 1.3% 1.5 Ultra Electronics Holdings plc 1,009.6 167.2 105.3 31.4% 16.6% 10.4% (4.7%) (5.2%) (6.0%) 2.9 Zodiac Aerospace 5,805.9 401.3 299.6 54.1% 6.9% 5.2% 4.5% (21.3%) (24.4%) 3.7 Group Median 32.5% 16.3% 11.1% 3.0% 0.9% 1.6% 2.5x Group Mean 37.3% 17.0% 12.4% 4.8% 2.0% (1.2%) 2.6 Military & Defense BAE Systems plc $22,685.6 $2,182.9 $1,745.6 57.4% 9.6% 7.7% (3.0%) (8.2%) (5.0%) 2.7x Chemring Group plc 579.1 77.1 31.0 26.9% 13.3% 5.4% (20.4%) (21.8%) (32.3%) 2.4 General Dynamics Corporation 30,929.0 4,692.0 4,228.0 19.9% 15.2% 13.7% 0.5% 8.5% 10.9% 0.8 L3 Technologies, Inc. 10,393.0 1,226.0 1,018.0 9.8% 11.8% 9.8% (7.2%) (10.5%) (12.0%) 2.7 Leonardo S.p.a. 13,519.9 1,579.3 953.2 37.7% 11.7% 7.1% (13.8%) (5.5%) (4.1%) 3.7 Lockheed Martin Corporation 50,612.0 6,869.0 5,853.0 11.5% 13.6% 11.6% (0.7%) 8.1% 8.9% 2.1 Northrop Grumman Corporation 23,805.0 3,511.0 3,051.0 23.6% 14.7% 12.8% (2.3%) (0.9%) (0.6%) 1.8 Orbital ATK, Inc. 4,627.5 623.4 445.9 19.5% 13.5% 9.6% 0.1% (0.7%) (5.3%) 2.6 Raytheon Company 24,159.0 3,676.0 3,233.0 25.1% 15.2% 13.4% (1.6%) (0.7%) (1.4%) 1.5 SAAB AB (publ.) 3,464.5 297.7 223.1 23.5% 8.6% 6.4% (4.4%) (9.8%) (11.3%) 2.4 Group Median 23.5% 13.4% 9.7% (2.6%) (3.2%) (4.6%) 2.4x Group Mean 25.5% 12.7% 9.7% (5.3%) (4.1%) (5.2%) 2.3 Overall Median 26.3% 13.5% 9.3% 0.8% (0.6%) (0.6%) 2.4 Overall Mean 28.7% 14.2% 10.5% 1.4% 3.5% (0.8%) 2.8 Notes: (a) LTM operating results as of latest fiscal quarter preceeding 12/30/16 and exclude extraordinary items. (b) Based on results from the four most recently reported calendar years. All international financials are calculated using current conversion rates. NM denotes value deemed outlier and therefore excluded from mean and median calculations. Source: Capital IQ, as of December 30, 2016

13 PUBLICLY TRADED COMPANIES Select Market Performance MetricsMarket Trends

Share Price Market Ent. Price / EPS EV / Rev. EV / EBITDA ($ millions, except share data) 12/30/16 % 52 High Value(a) Value(b) LTM CY ‘16E LTM LTM CY ‘16E Aircraft, Structures & Support Airbus Group SE $66.34 96.7% $51,241.6 $54,687.9 17.7x 20.1x 0.76x 10.8x 8.5x The Boeing Company 155.68 97.3% 96,080.4 96,968.4 23.8 22.0 1.02 12.7 12.7 Bombardier Inc. 1.61 94.7% 3,526.6 11,013.6 NM NM 0.65 NM 14.1 CAE Inc. 13.98 94.2% 3,754.0 4,499.9 21.1 19.3 2.25 11.6 10.0 Embraer S.A. 4.92 52.3% 3,611.3 5,220.5 32.3 NM 0.75 12.5 6.8 HEICO Corporation 77.15 93.7% 5,193.4 5,792.5 33.7 32.6 4.21 17.5 17.5 Honeywell International Inc. 115.85 96.5% 88,292.1 95,736.1 18.1 17.6 2.44 12.3 12.0 Kaman Corporation 48.93 96.1% 1,326.4 1,721.3 26.0 20.5 0.94 10.9 10.6 Latécoère S.A. 4.42 99.1% 415.8 542.8 NM 11.7 0.66 69.7 7.1 LMI Aerospace, Inc. 8.62 84.4% 115.9 364.5 NM NM 1.0 49.5 9.1 Spirit AeroSystems Holdings, Inc. 58.35 94.8% 7,098.3 7,533.7 15.3 12.5 1.10 8.1 7.5 Textron Inc. 48.56 97.5% 13,121.3 16,354.3 15.6 18.0 1.18 10.2 10.1 Triumph Group, Inc. 26.50 65.7% 1,313.1 2,895.9 NM 6.0 0.77 NM 7.7 Group Median 94.8% $5,792.5 21.1x 18.6x 1.02x 10.9x 10.0x Group Mean 89.5% 23,333.2 22.6 18.0 1.37 11.4 10.3 Mechanical, Propulsion & Landing AAR Corp. $33.05 85.3% $1,134.6 $1,243.0 24.8x 25.7x 0.74x 10.2x 9.3x Curtiss-Wright Corporation 98.36 91.4% 4,350.3 4,865.1 23.6 24.0 2.28 11.9 11.9 Héroux-Devtek Inc. 10.94 91.6% 395.0 493.8 16.8 20.6 1.62 10.6 10.1 Meggitt PLC 5.66 94.5% 4,390.9 6,088.2 26.8 13.7 2.64 16.8 11.0 Moog Inc. 65.68 89.9% 2,355.1 3,047.6 18.9 16.6 1.26 9.4 9.5 Rolls-Royce Holdings plc 8.25 76.3% 15,165.8 16,609.6 NM 24.6 0.90 7.2 9.0 Safran SA 72.23 97.9% 30,120.5 32,267.2 17.3 17.9 1.54 7.4 9.2 Senior plc 2.40 79.3% 1,006.2 1,281.8 19.2 13.9 1.11 9.1 8.7 TransDigm Group Incorporated 248.96 84.6% 13,281.5 21,973.1 24.0 21.1 6.93 15.2 14.1 Group Median 89.9% $4,865.1 21.4x 20.6x 1.54x 10.2x 9.5x Group Mean 87.9% 9,763.3 21.4 19.8 2.11 10.9 10.3 Electronics, Avionics & Interior AMETEK, Inc. $48.60 91.8% $11,247.6 $12,956.6 21.1x 21.1x 3.36x 12.7x 13.1x Astronics Corporation 33.84 82.5% 1,073.4 1,224.1 19.5 19.4 1.92 12.2 12.0 B/E Aerospace, Inc. 60.19 99.6% 6,115.5 8,025.5 18.3 18.4 2.80 13.2 13.0 Cobham plc 2.02 57.9% 3,424.3 4,591.9 NM 14.1 1.78 10.2 10.8 Dassault Systèmes SE 76.42 91.1% 19,377.0 17,711.6 40.7 29.3 5.29 19.3 15.6 Ducommun Incorporated 25.56 85.2% 285.6 452.8 NM 10.5 0.80 9.3 8.3 Esterline Technologies Corporation 89.20 94.2% 2,644.0 3,266.6 22.7 18.9 1.64 11.7 11.8 Rockwell Collins, Inc. 92.76 96.1% 12,108.9 13,896.9 16.9 16.4 2.64 11.5 10.5 Teledyne Technologies Incorporate 123.00 95.1% 4,297.8 4,811.3 22.6 23.3 2.19 13.6 13.8 Thales SA 97.26 98.7% 20,545.4 19,196.6 21.1 21.7 1.19 11.8 10.3 Ultra Electronics Holdings plc 23.97 94.7% 1,682.5 2,114.1 29.1 14.9 2.09 12.6 11.5 Zodiac Aerospace 23.03 90.4% 6,381.3 7,560.7 54.4 38.9 1.30 18.8 19.8 Group Median 93.0% $6,186.0 21.8x 19.2x 2.01x 12.4x 11.9x Group Mean 89.8% 7,984.1 26.6 20.6 2.25 13.1 12.5 Military & Defense BAE Systems plc $7.30 93.7% $23,178.7 $25,748.5 18.7x 14.9x 1.14x 11.8x 9.7x Chemring Group plc 2.10 89.2% 586.1 753.5 NM 16.9 1.30 9.8 8.5 General Dynamics Corporation 172.66 95.9% 52,578.3 54,161.3 17.9 17.6 1.75 11.5 11.3 L3 Technologies, Inc. 152.11 93.9% 11,759.6 14,762.6 30.1 19.2 1.42 12.0 12.3 Leonardo S.p.a. 14.08 97.4% 8,084.7 12,848.4 15.7 14.4 0.95 8.1 6.5 Lockheed Martin Corporation 249.94 92.6% 73,227.4 84,743.4 18.8 20.4 1.67 12.3 12.5 Northrop Grumman Corporation 232.58 91.6% 40,995.0 46,282.0 19.8 19.9 1.94 13.2 13.0 Orbital ATK, Inc. 87.73 92.4% 5,137.2 6,670.3 15.6 16.0 1.44 10.7 9.9 Raytheon Company 142.00 93.1% 41,698.3 44,594.3 19.1 19.6 1.85 12.1 12.0 SAAB AB (publ.) 37.51 98.5% 3,987.0 4,093.3 21.3 26.1 1.18 13.7 12.5 Group Median 93.4% $20,255.6 18.8x 18.4x 1.43x 11.9x 11.6x Group Mean 93.8% 29,465.8 19.7 18.5 1.46 11.5 10.8 Overall Median 20.5 19.2 1.43 11.7 10.7 Overall Mean 22.7 19.3 1.78 11.8 11.0 Notes: (a) Market value based on fully-diluted shares including conversion of all exercisable in-the-money options, less shares repurchased using option proceeds. (b) Enterprise Value equals Market Value plus total straight and convertible debt, preferred stock and minority interest, less cash and investments in unconsolidated subsidiaries. LTM EBITDA, EBIT and Net Income exclude extraordinary items. NM denotes value deemed outlier and therefore excluded from mean and median calculations. Source: Capital IQ, as of December 30, 2016

14 Q2 AEROSPACE & DEFENSESTOUT’S M&A QUARTERLY TRANSACTIONS A&D NEWSLETTER

AEROSPACE & DEFENSE INDUSTRY UPDATE

2016 news, trends, and other topics discussed within Stout’s Aerospace & Defense quarterly newsletter included: Q1 2016 ¡¡ Heli-Expo 2016 show recap from Louisville, KY – notable highlights / takeaways included: ¡¡ Unmanned Aerial Systems had a strong presence at the show; much rotorcraft work in the future will not be manned ¡¡ Privatization of military rotorcraft presented new opportunities, particularly for MRO and parts suppliers ¡¡ We held a cocktail party with our friends at CIT Group. Conversation was lively and over drinks (bourbon, naturally) new connections were made Q2 2016 ¡¡ Farnborough International Airshow recap ¡¡ Growing pessimism around the widebody market; A380 production rates were cut in half and it was reported that talks on the A380neo had “lapsed” ¡¡ A&D sector showed a strong recovery from the rocky first quarter Q3 2016 ¡¡ In September, Beijing showed that they are serious about building a world-class aerospace industry with the formation of Aero Engine Corp. of China (AECC) ¡¡ Michael Krakovsky joined Stout as a Managing Director and Head of the Special Situations ¡¡ Mr. Krakovsky spent 13 years in Houlihan Lokey’s Financial Restructuring Group in Los Angeles, where he was a senior officer completing numerous transactions in the Aerospace & Defense industry For copies of any previously issued newsletters or to subscribe to the monthly publication, please contact Eric Reuther at 312-765-7253 or [email protected].

Source: Capital IQ, as of December 30, 2016

15 Q2ABOUT AEROSPACE STOUT & DEFENSE M&A TRANSACTIONS

Stout Investment Banking Stout’s Investment Banking Group focuses on mergers, acquisitions, capital raising, and fairness opinions for middle market businesses, private equity portfolio companies, family-owned businesses and public companies in a wide variety of industries. Our senior professionals help clients evaluate a range of strategic and financial alternatives. For more information, please visit our website at www.srr.com/industries/aerospace.

Stout Aerospace & Defense Stout has an investment banking team dedicated to serving the aerospace and defense industry. Our aerospace and defense experience includes providing investment banking, valuation and financial opinions, and dispute advisory and forensic services for numerous private middle market businesses, as well as publicly traded companies. Stout is engaged on diverse aerospace and defense investment banking mandates and has experience across the following sub-sectors: Aircraft, Structures & Support, Mechanical, Propulsion & Landing, Electronics, Avionics & Interior, and Military & Defense.

Aircraft, Structures, Mechanical, Propulsion, & Support & Landing ¡¡ Commercial & freighter aircraft ¡¡ Aircraft engines ¡¡ Regional & business jets ¡¡ Fans & turbine blades ¡¡ Light aircraft ¡¡ Fuel systems ¡¡ Helicopters ¡¡ Steering, landing & braking ¡¡ Airframes & aerostructures ¡¡ Primary & secondary controls ¡¡ Composite components ¡¡ Rivets, bushings & bearings ¡¡ Engineering & installation tools ¡¡ Related machined parts ¡¡ Ground support equipment ¡¡ Other mechanical components ¡¡ Airframe MRO ¡¡ MRO parts & components

Electronics, Avionics, Military & Defense & Interior ¡¡ Military aircraft & missiles ¡¡ Navigation & cockpit systems ¡¡ Unmanned aerial vehicles ¡¡ Communication systems ¡¡ Satellites & space systems ¡¡ Visual support systems ¡¡ Defense electronics ¡¡ Pilot training support systems ¡¡ Threat detection systems ¡¡ Information technology ¡¡ Weapons & armor ¡¡ Cockpits & passenger cabins ¡¡ Ground military vehicles ¡¡ Interior parts &components ¡¡ Support defense systems ¡¡ Other electronic components ¡¡ Military & defense MRO ¡¡ MRO electronics & parts

16 Q2 AEROSPACE & DEFENSE M&A TRANSACTIONS SELECTQ2 AEROSPACE AEROSPACE & DEFENSE & DEFENSE M&A ENGAGEMENTS TRANSACTIONS

Financial Advisor Financial Advisor Financial Advisor Financial Advisor

Financial Advisor Financial Advisor Financial Advisor Financial Advisor Mechanical, Propulsion, & Landing ¡¡ Aircraft engines ¡¡ Fans & turbine blades ¡¡ Fuel systems ¡¡ Steering, landing & braking ¡¡ Primary & secondary controls ¡¡ Rivets, bushings & bearings ¡¡ Related machined parts ¡¡ Other mechanical components Financial Advisor Financial Advisor Financial Advisor Financial Advisor ¡¡ MRO parts & components

Financial Advisor Financial Advisor Financial Advisor Financial Advisor

17 Appendix: 2016 M&A Transactions AEROSPACE & DEFENSE TRANSACTIONS

Enterprise Value

Ann. Date Target (Ownership) Acquirer (Ownership) Enterprise Value Revenue EBITDA

1. Jan-16 Ascending Technologies GmbH Intel Corporation (NasdaqGS:INTC) ------

L-3 Communications Klein Associates Inc. (L-3 Communications 2. Jan-16 Mitcham Industries Inc. (NasdaqGS:MIND) $ 10 -- -- Holdings Inc. (NYSE:LLL))

3. Jan-16 Diffraction Ltd. (The O'Gara Group, Inc.) STEINER-OPTIK GmbH (Beretta Holding S.p.A.) ------

4. Jan-16 MSA Aircraft Products, Inc. (Carlisle Enterprises, LLC) Aero Shade Technologies, Inc. ------

Societe d'Etudes et de Constructions Aero-Navales SAS (Honey- 5. Jan-16 Quantum Capital Partners AG - -- -- well International Inc. (NYSE:HON))

6. Jan-16 Talentscale, LLC SCST, Inc. ------

7. Jan-16 Specialty Coating Systems, Inc. (Berwind Corporation) KISCO Ltd. ------

8. Jan-16 Predator Tactical LLC Industry Armament ------

Convergence Fuel Systems, LLC (Woodward, Inc. (NasdaqGS:W- 9. Jan-16 GE Aviation (General Electric Company (NYSE:GE)) $ 573 -- -- WD))

Cutter Aviation Phoenix, Inc., FBO at El Paso International Airport Atlantic Aviation Corporation (Macquarie Infrastructure 10. Jan-16 ------in El Paso, Texas (Cutter Holding Co.) Corporation (NYSE:MIC))

11. Jan-16 Phoenix Heli-Support, LLC Aerometals, Inc. $ 0 -- --

12. Jan-16 COMSOFT GmbH Frequentis AG ------

Bplas Bursa Plastik. Metal Insaat Enerji Madencilik 13. Jan-16 AQUILA Aviation GmbH ------Jeotermal. Turizm Sanayi ve Ticaret Anonim Sirke

14. Jan-16 Tandel Systems, Inc. Belcan Corporation ------

Precision Castparts Corp. (Berkshire Hathaway Inc. 15. Jan-16 Andrews Laser Works Corporation - -- -- (NYSE:BRK.A))

16. Jan-16 SAM Aircraft Inc. Zenith Aircraft Company - -- --

17. Jan-16 Southern Air Holdings, Inc. Atlas Air Worldwide Holdings, Inc. (NasdaqGS:AAWW) $ 110 -- --

18. Jan-16 Pacific Architects and Engineers Incorporated (Lindsay Goldberg) Platinum Equity, LLC ------

19. Jan-16 Denim Air ACMI B.V. Sky Greenland ApS ------

20. Jan-16 Serta Aerospace & Defence SAS Industries & Finances ------

21. Jan-16 Harbinger Technology Corp. Cub Elecparts Inc. (TSEC:2231) $ 42 2.7x NM

Lockheed Martin Information Systems & Global Solutions, Inc., 22. Jan-16 Leidos Holdings, Inc. (NYSE:LDOS) $ 3,866 -- -- Information Systems & Global Solutions (Frist Capital, LLC)

23. Jan-16 DSIT Solutions Ltd. (Acorn Energy, Inc. (OTCPK:ACFN)) Rafael Advanced Defense Systems Ltd. $ 11 -- --

24. Jan-16 Phoenix Heliparts, Inc. And Phoenix Heli-Support, LLC Golden 168 Investment & Consultants, LLC $ 3 -- --

25. Jan-16 New World Solutions Inc. SOS International, LLC ------

26. Feb-16 Groupe SIRA (BPI France Investissement Régions) Aequs Private Limited ------

27. Feb-16 Bristol Flying Centre Limited Pula Aviation Limited ------

Liberty Hall Capital Partners, L.P., Other Investment 28. Feb-16 AIM Aerospace, Inc. (AIM Aviation Limited) $ 220 -- -- Partners

Braxton Science & Technology Group LLC (The O'Neil 29. Feb-16 Space/Ground System Solutions, Inc. ------Group Company, LLC)

30. Feb-16 Endeavor Robotics (iRobot Corporation (NasdaqGS:IRBT)) Arlington Capital Partners $ 45 -- --

Source: Capital IQ and Equity Research 18 Appendix: 2016 M&A Transactions AEROSPACE & DEFENSE TRANSACTIONS (CONT.)

Enterprise Value

Ann. Date Target (Ownership) Acquirer (Ownership) Enterprise Value Revenue EBITDA

Huta Stalowa Wola S.A. (Polska Grupa 31. Feb-16 AUTOSAN Spolka Akcyjna $ 5 -- -- Zbrojeniowa S.A.)

Hubei Huachangda Intelligent Equipment Co., Ltd. 32. Feb-16 Xi'an Long Technology & Development Co., Ltd. $ 14 -- -- (SZSE:300278)

TAP-Transportes Aereos Portugueses, SGPS, S.A. 33. Feb-16 Governo da República Portuguesa $ 13 -- -- (Hpgb, SGPS S.A)

34. Feb-16 MacCarthy Aviation Holdings Ltd. Magnetic MRO AS ------

35. Feb-16 Nova Defense & Aerospace International, LLC Assured Enterprises Inc. ------

36. Feb-16 Dunarit Corp. "EMCO" JSC ------

37. Feb-16 Fulton Bellows, LLC (Morris Capital Management, LLC) US Hose Corporation ------

Exemplar Global Inc., Aerospace and Auditor Provider 38. Feb-16 Probitas Authentication ------Book of Business (Exemplar Global Inc.)

39. Feb-16 Sigma Space Corporation Leica Geosystems, Inc. (Hexagon AB (OM:HEXA B)) - -- --

40. Feb-16 Thrust-UAV LLC PCS Edventures!.com, Inc. (OTCPK:PCSV) ------

41. Feb-16 Doncasters, Inc. (Doncasters Group Limited) PIETRO ROSA TBM Srl ------

Shanghai Changwang Meteotech Co.,Ltd. Shaanxi Zhongtian Rocket Technologies Co., Ltd. 42. Feb-16 (Y.U.D.Yangtze River Investment Industry Co.,Ltd. ------(Academy of Aerospace Solid Propulsion Technology) (SHSE:600119)) Lockheed Martin Commercial Flight Training 43. Feb-16 CAE Inc. (TSX:CAE) ------(Lockheed Martin Corporation (NYSE:LMT))

General Dynamics Mission Systems, Inc. (General 44. Feb-16 Bluefin Robotics Corporation (Battelle Memorial Institute, Inc.) ------Dynamics Corporation (NYSE:GD))

45. Feb-16 MineWolf Systems AG (ILP III S.C.A., SICAR) Pearson Engineering Limited (Reece Group Limited) - -- --

46. Feb-16 Mettis Group Limited (Chamonix Private Equity) Stirling Square Capital Partners LLP - -- --

The KEYW Corporation, Systems Engineering and 47. Feb-16 Quantech Services, Inc. $ 12 -- -- Technical Assistance Business (The KEYW Corporation)

48. Feb-16 Alitalia Maintenance Systems S.P.A. Management Buyout - -- --

49. Feb-16 Miltec Corporation (Ducommun LaBarge Technologies, Inc.) General Atomics Corp. $ 15 0.5x --

50. Feb-16 Blue Falcon I Inc (Harris Corporation (NYSE:HRS)) Albany International Corp. (NYSE:AIN) $ 210 2.7x --

51. Feb-16 API Technologies Corp. (NasdaqCM:ATNY) J.F. Lehman & Company $ 307 1.3x 15.2x

52. Feb-16 TAG One, Inc. AE Materials Group, Inc. ------

53. Feb-16 Stag Arms LLC White Wolf Capital LLC ------

54. Feb-16 Purple Secure Systems Ltd CACI Limited (CACI International Inc. (NYSE:CACI)) ------

55. Feb-16 DJC S.A.S. Groupe Acrotec SA ------

56. Mar-16 Unmanned Safety Institute, LLC ARGUS International, Inc. ------

China North Vehicle Corporation Ltd. 57. Mar-16 Norinco International Cooperation Ltd. (SZSE:000065) - -- -- (Jiangsu Yueda Group Co., Ltd.)

58. Mar-16 HESCO Bastion Ltd Betafence NV $ 310 7.1x --

Koltsovo Airport Public Stock Company 59. Mar-16 JSC Kurumoch International Airport (OJSC Koltsovo-Invest) $ 69 -- -- (Airport-Holding OOO)

60. Mar-16 COJOT Oy Alaris Holdings Limited (JSE:ALH) $ 4 -- --

Source: Capital IQ and Equity Research Source: Capital IQ and Equity Research 19 Appendix: 2016 M&A Transactions AEROSPACE & DEFENSE TRANSACTIONS (CONT.)

Enterprise Value

Ann. Date Target (Ownership) Acquirer (Ownership) Enterprise Value Revenue EBITDA

Jet Aviation AG (General Dynamics Corporation 61. Mar-16 Avjet Corporation ------(NYSE:GD)) Machinery & Industrial Group N.V. (State Corporation 62. Mar-16 Kurganmashzavod JSC Bank for Development and Foreign Economic Affairs ------(Vnesheconombank))

63. Mar-16 Global Dynamics Incorporated ION Geophysical Corporation (NYSE:IO) ------

CTG Advanced Materials, LLC 64. Mar-16 CTS Corporation (NYSE:CTS) $ 73 -- -- (Channel Technologies Group, LLC)

65. Mar-16 Jetscape, Inc. (Peterson Partners LP) Nordic Aviation Capital A/S ------

66. Mar-16 Unknown Stake In 7 Defense Oriented Companies In Russia Russian Technologies State Corporation - -- --

APFT Maintenance Training Sdn Bhd (Asia Pacific 67. Mar-16 APFT Aviation Sdn. Bhd. $ 1 -- -- Flight Training Sdn Bhd, Endowment Arm)

68. Mar-16 APFT Engineering Sdn. Bhd. (APFT Berhad (KLSE:APFT)) APFT Aviation Sdn. Bhd. $ 1 -- --

Digital Marine Solutions Limited (Digital Marine 69. Mar-16 Jeppesen Marine USA - Inc. (Jeppesen Sanderson, Inc.) ------Solutions Limited and Navico Holding AS)

70. Mar-16 Servecorp Limited Aero Technics Ltd. (Graphite Capital Management LLP) - -- --

71. Mar-16 Fly by Wire Systems France S.A.S. (SKF AB (OM:SKF B)) LORD Corporation $ 43 1.0x --

72. Mar-16 Bromford Industries Limited (Darwin Private Equity LLP) Liberty Hall Capital Partners, L.P. ------

73. Mar-16 Tempus Jets, Inc. Tempus Applied Solutions Holdings, Inc. (OTCPK:TMPS) $ 1 -- --

74. Mar-16 Phoenix Heliparts, Inc. TKC Aerospace, Inc. (Kuskokwim Corp) $ 3 -- --

Airbus Group SE, Defence Electronics Business 75. Mar-16 KKR & Co. L.P. (NYSE:KKR) $ 1,233 1.1x -- (Airbus Defence and Space GmbH)

76. Mar-16 Barr Air Patrol, LLC Castle Crow & Company, LLC ------

FTG Aerospace (Firan Technology Group Corporation 77. Mar-16 Airco Industries, Inc. $ 3 0.4x -- (TSX:FTG))

Babcock Mission Critical Services Ltd. 78. Mar-16 Heli Aviation GmbH (Ohnhäuser GmbH) ------(Babcock International Group plc (LSE:BAB))

Microsemi Corp. - RF Integrated Solutions 79. Mar-16 Mercury Systems, Inc. (NasdaqGS:MRCY) $ 300 3.0x 10.7x (Microsemi Corporation (NasdaqGS:MSCC))

80. Mar-16 Ferco Aerospace Group NOVARIA HOLDINGS LLC ------

81. Mar-16 Doosan DST Co., Ltd (ODIN Holdings Co. Ltd.) Hanwha Techwin Co., Ltd. (KOSE:A012450) $ 584 1.0x --

82. Mar-16 RETIA, a.s. CZECHOSLOVAK GROUP a.s. ------

83. Mar-16 Pacific Instruments, Inc. Vishay Precision Group, Inc. (NYSE:VPG) $ 11 -- --

84. Mar-16 American Scaffold Inc. J.F. Lehman & Company ------

85. Mar-16 3Point Machine, Inc. (Storm Lake Capital, LLC) Shipston Group Limited ------

86. Apr-16 Priority Aero Maintenance AB Got2echnics AB - -- --

Winchester Electronics Corporation 87. Apr-16 SRI Connector Gage Company - -- -- (Snow Phipps Group, LLC)

Boustead Heavy Industries Corporation Berhad 88. Apr-16 BHIC AeroTech Sdn Bhd - -- -- (KLSE:BHIC)

89. Apr-16 Kovatch Mobile Equipment Corporation REV Group, Inc. (American Industrial Partners) $ 30 -- --

90. Apr-16 The Van Dyke Technology Group, Inc. Jacobs Engineering Group Inc. (NYSE:JEC) - -- --

Source: Capital IQ and Equity Research 20 Appendix: 2016 M&A Transactions AEROSPACE & DEFENSE TRANSACTIONS (CONT.)

Enterprise Value

Ann. Date Target (Ownership) Acquirer (Ownership) Enterprise Value Revenue EBITDA

OJSC "Concern Kalashnikov" 91. Apr-16 ZAO NPO Visokotochnie Sistemi I Tehnologii - -- -- (Russian Technologies State Corporation)

Quadrant EPP USA, Inc. (Mitsubishi Chemical Holdings 92. Apr-16 Piper Plastics, Inc. - -- -- Corporation (TSE:4188))

93. Apr-16 Aldus Aviation Limited Nordic Aviation Capital A/S (EQT Partners AB) - -- --

94. Apr-16 C.D.K.K. REAL s.r.o. ERA a.s. (OMNIPOL a. s.) - -- --

95. Apr-16 Innovative Control Systems, LP Reiser Simulation and Training GmbH - -- --

96. Apr-16 Price Production SA Price Induction SA (123 Venture) - -- --

97. Apr-16 JOB AIR Technic a.s. CZECHOSLOVAK GROUP a.s. - -- --

98. Apr-16 Kaydon Corporation (SKF AB (OM:SKF B)) Stabilus S.A. (DB:STM) $ 339 2.8x --

Explomo Technical Services Pte. Ltd. (TSH Corporation 99. Apr-16 Private Investor (Individual) $ 2 -- -- Limited (Catalist:574))

100. Apr-16 West Star Aviation, Inc. (Premier Air Center, Inc.) Norwest Equity Partners - -- --

101. Apr-16 Hélicoptères de France HBG Holding SA (Swiss Equity Capital Partners SA) - -- --

102. May-16 Avyon Canada microdrones GmbH - -- --

103. May-16 Premier Engineering & Manufacturing, Inc. TUG Technologies Corporation (Textron Inc. (NYSE:TXT)) - -- --

104. May-16 Sigma Precision Components Ltd (Avingtrans plc (AIM:AVG)) Silverfleet Capital Partners $ 95 1.9x --

Airborne Tactical Advantage Company, LLC 105. May-16 Textron Inc. (NYSE:TXT) - -- -- (THL Credit Advisors LLC)

Federal Resources Supply Company 106. May-16 KD Analytical Consulting, Inc. - -- -- (Alaris Royalty Corp.)

Tyonek Services Overhaul Facility - Stennis, LLC (SELEX Galileo 107. May-16 Tyonek Services Group, Inc. (Tyonek Native Corporation) - -- -- Inc.)

108. May-16 Machine2Order FAB 2 ORDER, Inc. - -- --

Alliance Spacesystems LLC 109. May-16 Vanguard Space Technologies, Inc. (Enlightenment Capital) - -- -- (SolAero Technologies Corporation)

110. May-16 World Defense Holdings WDH Ltd. Applied Inventions Management Corp. $ 1 -- --

111. May-16 Herndon Aerospace & Defense Company KLX Inc. (NasdaqGS:KLXI) $ 222 1.7x 10.9x

112. May-16 Sichuan Ande Technology Co., Ltd. Jiangxi Huawu Brake Co., Ltd. (SZSE:300095) $ 46 9.1x --

113. May-16 Stag Group Limited ALA SpA - -- --

114. May-16 AC&A, LLC AE Industrial Partners, LLC - -- --

Masimong Technologies (Pty) Ltd. 115. May-16 Tellumat (Pty) Ltd (Stellar Capital Partners Limited (JSE:SCP)) $ 26 0.7x -- (Masimong Group Holdings (Pty) Ltd)

116. May-16 KBRwyle (Court Square Capital Partners L.P.) KBR Holdings, LLC (KBR, Inc. (NYSE:KBR)) $ 600 -- 8.6x

117. May-16 JCB Aero Sas AMAC Aerospace Switzerland AG - -- --

TransDigm Inc. 118. May-16 ILC Industries, LLC (Behrman Capital) $ 1,000 -- -- (TransDigm Group Incorporated (NYSE:TDG))

119. May-16 Hangar 78 UAV, LLC Air Tractor, Inc. - -- --

120. May-16 Avio-Diepen B.V. Kirkhill Aircraft Parts Company - -- --

Source: Capital IQ and Equity Research Source: Capital IQ and Equity Research 21 Appendix: 2016 M&A Transactions AEROSPACEQ2 AEROSPACE & DEFENSE & DEFENSE TRANSACTIONS M&A TRANSACTIONS (CONT.)

Enterprise Value

Ann. Date Target (Ownership) Acquirer (Ownership) Enterprise Value Revenue EBITDA

121. May-16 Standard Components Incorporated Summit Equity Group, LLC - -- --

122. May-16 Leistritz AG AUTANIA AG (Dr. Helmut Rothenberger-Privatstiftung) - -- --

Saint-Gobain Performance Plastics Corporation 123. May-16 MIPNET Industries - -- -- (Compagnie de Saint-Gobain S.A. (ENXTPA:SGO))

Indraero Siren SAS, Floor Covering Business And Assets 124. May-16 Daher Aerospace (Compagnie DAHER SA) - -- -- (Indraero Siren SAS)

125. May-16 Kreisler Manufacturing Corp. United Flexible, Inc. (Arlington Capital Partners) $ 28 0.8x 7.6x

126. May-16 HTS GmbH RUAG Holding AG - -- --

Aerostar Aerospace Manufacturing, Inc. (Nautic 127. Jun-16 D.L. Horton Enterprises, Inc. - -- -- Partners, LLC)

128. Jun-16 Chemko Technical Services, Inc. Astro Pak Corporation - -- --

129. Jun-16 TSM Corporation Xator Corporation - -- --

Applied Industrial Technologies, LP 130. Jun-16 Seals Unlimited Inc. $ 6 -- -- (Applied Industrial Technologies, Inc. (NYSE:AIT))

Aerospace Shenzhou Flight Vehicle Co., Ltd. 131. Jun-16 Nanyang Technology University - -- -- and Caihong UAV

132. Jun-16 Adetel Group SA Centum Electronics Limited (BSE:517544) - -- --

133. Jun-16 Maglan Information Defense Technologies Ltd. Accenture plc (NYSE:ACN) - -- --

Bombardier Inc., Amphibious Aircraft Program 134. Jun-16 Viking Air Ltd. (Westerkirk Capital Inc.) - -- -- (Bombardier Inc. (TSX:BBD.B))

135. Jun-16 HeliService international GmbH Volartus Holding GmbH - -- --

American Science & Engineering Inc. 136. Jun-16 OSI Systems, Inc. (NasdaqGS:OSIS) $ 190 1.8x -- (Renaissance Technologies Corp.)

137. Jun-16 Polaris Alpha (Banyan Mezzanine Fund, L.P.) Arlington Capital Partners - -- --

Süd Beteiligungen GmbH 138. Jun-16 Deharde-Maschinenbau Helmut Hoffmann GmbH - -- -- (Landesbank Baden-Württemberg)

139. Jun-16 Armasight Inc. FLIR Systems, Inc. (NasdaqGS:FLIR) $ 41 -- --

Two Aerospace Casting Facilities Consolidated Precision Products Corp. 140. Jun-16 - -- -- (Pratt & Whitney Rzeszow S.A.) (American Capital, Ltd. (NasdaqGS:ACAS))

Thales-Raytheon Systems Company LLC 141. Jun-16 Raytheon Company (NYSE:RTN) - -- -- (Thales SA (ENXTPA:HO))

142. Jun-16 Shultz Steel Company, Inc. Berkshire Hathaway Inc. (NYSE:BRK.A) - -- --

143. Jul-16 Ardmore Airport Limited (Tramcent Investments Limited) Kauri Ardmore Limited - -- --

Thales-Raytheon Systems Company SAS 144. Jul-16 Thales SA (ENXTPA:HO) - -- -- (Raytheon Company (NYSE:RTN))

145. Jul-16 Didsbury Engineering Co Limited (Connection Capital LLP) MEL Aviation Limited - -- --

146. Jul-16 Green Power Monitoring Systems LLC DNV GL - Energy (Stiftelsen Det Norske Veritas) - -- --

MB Aerospace Technologies (Poland) MB Aerospace Holdings Limited 147. Jul-16 - -- -- (VAC AERO International Inc.) (The Blackstone Group, Private Equity Group)

148. Jul-16 Alfalight, Inc. Gooch & Housego plc (AIM:GHH) $ 1 -- --

149. Jul-16 Kent Periscopes Ltd. Gooch & Housego plc (AIM:GHH) $ 12 -- --

150. Jul-16 Industria de Turbo Propulsores S.A. (Sener Aeronáutica, S.L.) Rolls-Royce Holdings plc (LSE:RR.) $ 795 1.0x 6.2x

Source: Capital IQ and Equity Research 22 Appendix: 2016 M&A Transactions Q2 AEROSPACE & DEFENSE M&A TRANSACTIONS AEROSPACE & DEFENSE TRANSACTIONS (CONT.)

Enterprise Value

Ann. Date Target (Ownership) Acquirer (Ownership) Enterprise Value Revenue EBITDA

North Coast Composites, Inc. and North Coast 151. Jul-16 AGC AeroComposites (Acorn Growth Companies) - -- -- Tool and Mold Corp.

152. Jul-16 Moeller Aerospace Technology, Inc. AE Industrial Partners, LLC - -- --

153. Jul-16 Sarl Techno-Meca Tecnoquark Trust, S.A. (BME:TQT) $ 3 0.8x 4.2x

SR Technics Switzerland AG (Mubadala Development 154. Jul-16 HNA Aviation Group Co., Ltd. (HNA Group Co., Ltd.) - -- -- Company PJSC)

155. Jul-16 Skycap Netherlands B.V. Skeye B.V. - -- --

Odyssey Investment Partners, LLC (Aero Precision Aero Precision Industries (API), Inc. and Certain Related Aviation 156. Jul-16 Industries (API), Inc. and Certain Related Aviation - -- -- Services Businesses (W. R. Berkley Corporation (NYSE:WRB)) Services Businesses)

157. Jul-16 TDC Acquisition Holdings, Inc. (Bonaventure Capital LLC) 5D Robotics Inc. - -- --

158. Jul-16 Garvey Spacecraft Corporation Vector Space Systems - -- --

159. Jul-16 Stinar HG, Inc. (Oakridge Holdings, Inc. (OTCPK:OKRG)) Kruckeberg Industries, LLC $ 0 -- --

JSC" NPP "Motor" (JSC Management Company JSC UFA Engine Industrial Association 160. Jul-16 $ 19 -- -- United Engine Corporation) (Russian Technologies State Corporation)

161. Jul-16 Aries Alliance (CM-CIC Investissement) Management Buyout - -- --

Jiangsu Bao Li Aviation Equipment Co., Ltd. 162. Jul-16 Jiangsu Huayu General Aviation Co., Ltd. (Jiangsu Baoli International Investment Co., Ltd. $ 26 5.6x -- (SZSE:300135))

163. Jul-16 Horus Vision, LLC. The Ray Dennis Group of Companies - -- --

Smith & Wesson Holding Corporation 164. Jul-16 Crimson Trace Corporation (Peninsula Capital Partners, L.L.C.) $ 95 2.2x -- (NasdaqGS:AOBC)

165. Jul-16 CTS Engines, LLC (Palm Beach Capital) Platte River Equity - -- --

166. Jul-16 Hanwha Systems Co., Ltd. (Thales International S.A.S.) Hanwha Techwin Co., Ltd. (KOSE:A012450) $ 519 0.8x --

167. Jul-16 SFC Koenig AG (HgCapital) IDEX Corporation (NYSE:IEX) $ 242 3.8x --

Nutzfahrzeuge Rohr GmbH (Oberbank Opportunity Kässbohrer Transport Technik GmbH 168. Jul-16 - -- -- Invest Management GmbH) (Kaessbohrer Beteiligungs-Gmbh)

169. Aug-16 Femme Comp Inc. Management Buyout - -- --

170. Aug-16 Materials Solutions Limited Siemens Aktiengesellschaft (DB:SIE) - -- --

171. Aug-16 IR Defense Corporation Trijicon, Inc. - -- --

Accurus Aerospace Corporation 172. Aug-16 ZTM, Inc. - -- -- (Liberty Hall Capital Partners, L.P.)

Door Engineering and Manufacturing, LLC 173. Aug-16 Senneca Holdings (Audax Group, Inc.) - -- -- (Medallion Capital, Inc.)

174. Aug-16 IMT Corporation Mission Essential Personnel, LLC. - -- --

Mitsubishi Heavy Industries Ltd., Defensive Aircraft Engine Mitsubishi Heavy Industries Aero Engines, Ltd. 175. Aug-16 - -- -- Business (Mitsubishi Heavy Industries, Ltd. (TSE:7011)) (Mitsubishi Heavy Industries, Ltd. (TSE:7011))

176. Aug-16 ELTA S.A. ECA SA (ENXTPA:ECASA) - -- --

177. Aug-16 Asia Pacific Aerospace Incorporated Asia Pacific Satellite lnc. (KOSDAQ:A211270) $ 15 -- --

Provincial Aerospace Ltd. (Exchange Income 178. Aug-16 CarteNav Solutions Inc. $ 13 -- -- Corporation (TSX:EIF))

179. Aug-16 ISP Optics Corp. LightPath Technologies, Inc. (NasdaqCM:LPTH) $ 18 1.5x 5.8x

ETE Medical, Inc. Confluent Medical Technologies 180. Aug-16 - -- -- (Ampersand Capital Partners) (Ampersand Capital Partners)

Source: Capital IQ and Equity Research Source: Capital IQ and Equity Research 23 Appendix: 2016 M&A Transactions AEROSPACEQ2 AEROSPACE & DEFENSE & DEFENSE TRANSACTIONS M&A TRANSACTIONS (CONT.)

Enterprise Value

Ann. Date Target (Ownership) Acquirer (Ownership) Enterprise Value Revenue EBITDA

181. Aug-16 Aerospace Analytics, LLC. Richter & Company LLC - -- --

Callenberg Technology Group AB Trident Maritime Systems, LLC 182. Aug-16 $ 64 -- -- (Wilhelmsen Maritime Services AS) (J.F. Lehman & Company)

Hong Kong International Aviation Leasing Co., Ltd., Aircraft Leas- Bohai Financial Investment Holding Co., Ltd. 183. Aug-16 $ 34 0.0x -- ing Business (Hong Kong International Aviation Leasing Co., Ltd.) (SZSE:000415)

Honeywell Technology Solutions Inc. (Honeywell International Inc. 184. Aug-16 KBR Holdings, LLC (KBR, Inc. (NYSE:KBR)) $ 300 -- -- (NYSE:HON))

Apollo Global Management, LLC (NYSE:APO) 185. Aug-16 Constellis Holdings, LLC - -- -- (Abu Dhabi Investment Authority)

Vistronix Intelligence & Technology Solutions, LLC ASRC Federal Holding Company, LLC 186. Aug-16 - -- -- (Enlightenment Capital) (Arctic Slope Regional Corporation)

187. Aug-16 Phillips-Medisize Corporation (Golden Gate Capital) Molex, LLC (Koch Industries, Inc.) - -- --

Aeronautical & GI Holdings Limited 188. Aug-16 Aircraft Appliances And Equipment Limited - -- -- (J.F. Lehman & Company)

189. Aug-16 NanoSpace AB (Svenska Rymdaktiebolaget AB) GS Sweden AB (OM:GOMX) $ 3 -- --

Turkbine Teknik Gaz Türbinleri Bakim Onarim A.S. Zorlu O&M Enerji Tesisleri Isletme ve Bakim 190. Sep-16 - -- -- (Turkish Technic Inc.) Hizmetleri A.S. (Zorlu Holding A.S.)

Wuhan Jiarui Technology Co., Ltd.; Xi'an Chida Guangzhou Haige Communications Group 191. Sep-16 $ 156 0.9x -- Aircraft Parts Manufacturing Co., Ltd Incorporated Company (SZSE:002465)

192. Sep-16 Arcam AB (OM:ARCM) GE Aviation (General Electric Company (NYSE:GE)) $ 628 9.4x NM

193. Sep-16 Curved Skies, LLC Southern Research Institute, Inc. - -- --

194. Sep-16 Young & Franklin Inc. TransDigm Group Incorporated (NYSE:TDG) $ 260 -- --

195. Sep-16 Micreo Limited L-3 Communications Holdings, Inc. (NYSE:LLL) - -- --

196. Sep-16 LATECOERE Services SAS (Latécoère S.A. (ENXTPA:LAT)) Groupe ADF SAS (ACG Capital) $ 63 0.6x --

Aviation Technical Services, Inc. 197. Sep-16 Texas Pneumatic Systems, Inc. - -- -- (Greenpoint Technologies, Inc.)

198. Sep-16 Discovery Air Fire Services Inc. (Discovery Air Inc. (TSX:DA.A)) MAG Aerospace Corp. $ 1 -- --

Joint-Stock Company Russian Aircraft Corporation MiG (The Public Joint Stock Company United Aircraft 199. Sep-16 - -- -- Russian Government) Corporation (MISX:UNAC)

200. Sep-16 Tronair, Inc. Golden Gate Capital (Monroe Capital LLC) - -- --

201. Sep-16 INSYEN AG GMV S.p.A. (GE Equity) - -- --

202. Sep-16 Sonic Aviation, Inc. AAR Corp. (NYSE:AIR) - -- --

203. Sep-16 Key Air, LLC (Rizvi Traverse Management LLC) Clay Lacy Aviation, Inc. - -- --

ACCEL Flight Simulation Co. Ltd. (Rockwell Collins 204. Sep-16 Sichuan Haite High-tech Co., Ltd. (SZSE:002023) $ 25 -- -- International Inc.)

205. Sep-16 Exception EMS Ltd. Fabrinet (NYSE:FN) $ 13 -- --

206. Sep-16 Aircraft Service International Group, Inc. Menzies Aviation plc (John Menzies plc (LSE:MNZS)) $ 202 0.5x 6.3x

207. Sep-16 Stratocom Solutions Corp. Carl Data Solutions Inc. (DB:7C5) $ 2 -- --

IAG Engine Center Europe 208. Sep-16 Alitalia Maintenance Systems S.P.A. - -- -- (International Aerospace Group)

209. Sep-16 B. Coleman MRO PBI, LLC Infinity Aircraft Services - -- --

210. Sep-16 Stewart-Ratcliff Aviation Services, Inc. Satcom Direct, Inc. - -- --

Source: Capital IQ and Equity Research 24 Appendix: 2016 M&A Transactions Q2 AEROSPACE & DEFENSE M&A TRANSACTIONS AEROSPACE & DEFENSE TRANSACTIONS (CONT.)

Enterprise Value

Ann. Date Target (Ownership) Acquirer (Ownership) Enterprise Value Revenue EBITDA

Jordan Aircraft Maintenance Limited Dubai Aerospace Enterprise (DAE) Ltd. (Dubai 211. Sep-16 - -- -- (The Abraaj Group) International Capital L.L.C.)

212. Sep-16 JPS Aviation Avflight Corporation - -- --

Joint Stock Company Russian Helicopters 213. Sep-16 99 Zato, AO - -- -- (Russian Technologies State Corporation)

214. Sep-16 Aerotec Concept Assystem France, SAS (HDL Development) - -- --

215. Sep-16 SARL MECA ROC Metal Chrome - -- --

216. Sep-16 Raisbeck Engineering, Inc. Acorn Growth Capital - -- --

Orizon Aerostructures - Chanute, Inc. 217. Sep-16 Orizon Aerostructures Inc. - -- -- (Spirit AeroSystems Holdings, Inc. (NYSE:SPR))

218. Sep-16 Aviocom BV Gaches Chimie SA - -- --

219. Sep-16 Sea Launch AG CJSC S7 Group $ 156 -- --

Pilot Training and Testing Limited (NAL Asset 220. Sep-16 Northumbria Flying School Limited - -- -- Management Ltd)

Carlisle Interconnect Technologies Inc. (Carlisle 221. Oct-16 Star Aviation, Inc. - -- -- Companies Incorporated (NYSE:CSL))

222. Oct-16 Airwork Holdings Limited (NZSE:AWK) Zhejiang Rifa Holding Group Co., Ltd. $ 299 2.5x 6.0x

223. Oct-16 L-3 Aerosim-CTC (Lincolnshire Management, Inc.) L-3 Communications Holdings, Inc. (NYSE:LLL) - -- --

Calspan Systems Corporation 224. Oct-16 Calspan Holdings, LLC - -- -- (Triumph Group, Inc. (NYSE:TGI))

225. Oct-16 Safeaero I Trelleborg AB Textron Sweden AB (Textron Inc. (NYSE:TXT)) - -- --

226. Oct-16 Performance Aviation Ltd Skydive the Beach Group Limited (ASX:SKB) $ 0 -- NM

Avolon Holdings Limited (Bohai Financial Investment 227. Oct-16 C2 Aviation Capital, Inc. (C.I.T. Leasing Corporation) $ 13,356 10.8x 21.4x Holding Co., Ltd. (SZSE:000415))

FBO Air Garden City, Inc. (Saker Aviation Services, Inc. 228. Oct-16 Aircraft Services, Inc. $ 0 -- -- (OTCPK:SKAS))

229. Oct-16 Gatewing NV (Trimble Inc. (NasdaqGS:TRMB)) Delair-Tech SAS (Andromede S.A.) - -- --

230. Oct-16 VMS Aircraft Company Inc. Addev S.A.S. (Bpifrance Investissement) - -- --

231. Oct-16 The Radiant Group, Inc. (Aston Capital, LLC) DigitalGlobe, Inc. (NYSE:DGI) $ 140 -- --

232. Oct-16 Moose Boats, Inc. Lind Marine, Inc. - -- --

233. Oct-16 Azkedia THE KAT, Sarl - -- --

234. Oct-16 Nordic Defence Industries A/S Saab Dynamics AB (SAAB AB (publ.) (OM:SAAB B)) - -- --

B18 Invest III AB (New Equity Venture International AB 235. Oct-16 Nordic Aerowash Equipment AB and N.A.S Service Oy - -- -- (XSAT:NEVI B))

Hanwha Defense Systems Corp., Laser and Navigation 236. Oct-16 Hanwha Corporation (KOSE:A000880) - -- -- System Business (Hanwha Defense Systems Corp.)

237. Oct-16 Paradigm Machine Inc. MAX Aerostructures, LLC - -- --

238. Oct-16 BRP Composites Limited Tritech Group Ltd. (Neterwala Group) - -- --

239. Oct-16 Avio S.p.A. (Cinven Limited) Leonardo - Finmeccanica S.p.a. (BIT:LDO) $ 167 -- --

HCL America, Inc. (HCL Technologies Limited 240. Oct-16 Butler America Aerospace, LLC (Butler America, Inc.) $ 85 1.0x -- (NSEI:HCLTECH))

Source: Capital IQ and Equity Research Source: Capital IQ and Equity Research 25 Appendix: 2016 M&A Transactions AEROSPACEQ2 AEROSPACE & DEFENSE & DEFENSE TRANSACTIONS M&A TRANSACTIONS (CONT.)

Enterprise Value

Ann. Date Target (Ownership) Acquirer (Ownership) Enterprise Value Revenue EBITDA

241. Oct-16 LORENZ,INC. (dba - Karel Manufacturing) Celestica Inc. (TSX:CLS) - -- --

B/E Aerospace, Inc. (NasdaqGS:BEAV) (BlackRock, Inc. 242. Oct-16 Rockwell Collins, Inc. (NYSE:COL) $ 8,228 2.9x 13.6x (NYSE:BLK))

Precision Castparts Corp. (Berkshire Hathaway Inc. 243. Oct-16 Atlantic Precision Inc. (Generation Growth Capital, Inc.) - -- -- (NYSE:BRK.A))

Hearst Business Media Corporation (The Hearst 244. Oct-16 CAMP Systems Inc. (GTCR, LLC) - -- -- Corporation)

245. Oct-16 Karlee Company Inc. Porter's Group, LLC (Resilience Capital Partners LLC) - -- --

Willis Asset Management Limited (Willis Lease 246. Oct-16 Total Engine Support Limited (TES Aviation Group Ltd.) - -- -- Finance Corporation)

telerob Gesellschaft für Fernhantierungstechnik mbH 247. Oct-16 Management Buyout - -- -- (Cobham plc (LSE:COB))

248. Oct-16 TrueNorth Avionics, Inc. Satcom Direct, Inc. - -- --

EDAC Technologies Corporation (GB Aero Engine 249. Nov-16 Flanagan Industries Limited Partnership - -- -- Holding Company)

250. Nov-16 Costello/April Design, Inc. The Heico Companies, LLC. - -- --

CHEP Aerospace Solutions (Schweiz) AG 251. Nov-16 EQT Partners AB (Investor AB) $ 130 -- -- (Brambles Limited (ASX:BXB))

252. Nov-16 Camber Corporation (New Mountain Capital, LLC) Huntington Ingalls Industries, Inc. (NYSE:HII) $ 380 1.0x --

253. Nov-16 CES Creative Electronic Systems S.A. Mercury Systems, Inc. (NasdaqGS:MRCY) $ 38 1.7x --

Mayday Manufacturing Co. and Hi-Tech Metals Inc 254. Nov-16 ESCO Technologies Inc. (NYSE:ESE) - -- -- (Tailwind Technologies Inc.)

Ontic Engineering and Manufacturing, Inc. 255. Nov-16 GE Aviation, Avionics business (GE Aviation) $ 62 -- -- (BBA Aviation plc (LSE:BBA))

256. Nov-16 Pacific Safety Products Inc. (TSXV:PSP) Safariland, LLC (Maui Acquisition Corp.) $ 12 0.8x 26.5x

National Response Corporation 257. Nov-16 Boom Technology, Inc. (Private Investment Consortium) - -- -- (J.F. Lehman & Company)

258. Nov-16 Advanced Structural Technologies, Inc. (Crosse Partners) Hübner Schlösser & Cie - -- --

259. Nov-16 Penman Engineering Ltd. Martin Williams (Hull) Limited - -- --

Chengdu Aerospace Superalloy Technology Co., 260. Nov-16 Gardner Group Limited (Better Capital PCC Limited (LSE:BCAP)) Ltd. (Shaanxi Ligeance Mineral Resources Co., Ltd. $ 401 2.1x -- (SZSE:000697))

261. Nov-16 Societe Nouvelle Centrair SA Lauak France - -- --

262. Nov-16 4DSP LLC (Abaco Systems Inc.) Abaco Systems Inc. (Veritas Capital) - -- --

263. Nov-16 Bureau d'études Mauric (Ciranoé, SAS) ECA SA (ENXTPA:ECASA) - -- --

264. Nov-16 Airbotix Pty Ltd. C4D Intel PTY Ltd. - -- --

265. Nov-16 Groupe Auvergne Aéronautique (ACE Management) Figeac-Aero Société Anonyme (ENXTPA:FGA) - -- --

IWG Technologies Inc. (TSXV:IWG) (PenderFund Capital Manage- 266. Nov-16 1096777 B.C. Ltd. $ 10 1.3x 5.8x ment Ltd.)

AVIC Shenyang Aircraft Corporation (China Huarong Asset Man- 267. Nov-16 Zhonghangheibao Co.,Ltd (SHSE:600760) $ 1,053 0.5x -- agement Co., Ltd. (SEHK:2799))

268. Dec-16 AD Industrie SAS (GE Equity) Stirling Square Capital Partners LLP - -- --

269. Dec-16 Fellows International Ltd. OPTIMA Defence & Security Group Limited - -- --

270. Dec-16 ACS Aviation Ltd. Cloud Global Ltd - -- --

Source: Capital IQ and Equity Research 26 Appendix: 2016 M&A Transactions Q2 AEROSPACE & DEFENSE M&A TRANSACTIONS AEROSPACE & DEFENSE TRANSACTIONS (CONT.)

Enterprise Value

Ann. Date Target (Ownership) Acquirer (Ownership) Enterprise Value Revenue EBITDA

271. Dec-16 CertifyNation, LLC The Angelus Corporation - -- --

272. Dec-16 International Logistics Group, LLC Advanced Core Concepts, LLC - -- --

273. Dec-16 Liquid Robotics Inc. (VantagePoint Capital Partners) The Boeing Company (NYSE:BA) - -- --

Curtiss-Wright Controls Defense Solutions 274. Dec-16 Teletronics Technology Corporation $ 233 -- -- (Curtiss-Wright Corporation (NYSE:CW))

The Triumph Group Operations, Inc. And Triumph Engines - Tempe Gores Small Capitalization Partners, L.P. 275. Dec-16 - -- -- And APU Overhaul Operations (Triumph Group, Inc. (NYSE:TGI)) (The Gores Group LLC)

e2v Technologies plc (LSE:E2V) (Aviva Investors Global 276. Dec-16 Teledyne Technologies Incorporated (NYSE:TDY) $ 760 2.6x 12.2x Services Limited)

277. Dec-16 Eads-Irkut Seaplane (Irkut Corporation (MISX:IRKT)) Management Buyout - -- --

Australian Defence Apparel Pty Ltd (Charles Parsons 278. Dec-16 LEGEAR Australia Pty Ltd. - -- -- & Co Pty Ltd)

Marana Aerospace Solutions, Inc. (Relativity Capital, 279. Dec-16 Ascent Aviation Services Corp. (LongueVue Capital, LLC) - -- -- LLC)

KUKA Systems Aerospace North America (KUKA 280. Dec-16 Advanced Integration Technology, LP (Onex Corporation) - -- -- Aktiengesellschaft (DB:KU2))

Wanfeng Aviation Co., Ltd. (Wanfeng Auto Holding 281. Dec-16 Diamond Aircraft Industries Inc. - -- -- Group Co., Ltd.)

282. Dec-16 Verseidag Ballistic Protection Oy (VERSEIDAG-INDUTEX GmbH) Sioen Industries NV (ENXTBR:SIOE) $ 19 -- --

283. Dec-16 Gran-Aire, Inc. Spring City Aviation, Inc - -- --

Aviation Industry Corporation of China 284. Dec-16 Thompson Aero Seating Limited (State-Owned Assets Supervision & Administration - -- -- Commission Of The State Council)

285. Dec-16 Beriev Irkut Seaplane S.A.S. (JSC BERIEV Aircraft Company) Management Buyout - -- --

286. Dec-16 Clearswift Limited (Lyceum Capital Partners LLP) RUAG Holding AG - -- --

Meggitt Defence Systems Limited and Meggitt Holdings 287. Dec-16 QinetiQ Group Plc (LSE:QQ.) $ 71 -- -- Canada Inc. (Meggitt PLC (LSE:MGGT))

288. Dec-16 Lakes Region Tubular Products, Inc. United Flexible, Inc. (Arlington Capital Partners) - -- --

US Technologies, Inc. (Cornerstone Capital 289. Dec-16 Aldetec Inc. - -- -- Holdings, LLC)

290. Dec-16 Sistemi Dinamici S.p.A (IDS Ingegneria Dei Sistemi S.p.A.) Leonardo - Finmeccanica S.p.a. (BIT:LDO) - -- --

Aviation & Missile Solutions, LLC (Huntington Ingalls 291. Dec-16 Dynetics, Inc. - -- -- Industries, Inc. (NYSE:HII)

Source: Capital IQ and Equity Research

Source: Capital IQ and Equity Research 27 SRR.com

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