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MD H Elicopters… MD Helicopters… … “Rebirth of a legend” Performance. Reliability. Value. 1 Company Heritage • Hughes Helicopter (1947) • McDonnell Douglas (1984) • Boeing (1997) • MDHI - RDM Holdings (1999) • MD Helicopters, Inc. (2005) 2 T,he Hughes Aircraft Company eventually grew to a total of over 15,000 employees by 1952 XH-17, 1948 3 Hughes XV-9A Hot-cycle experimental helicopter built and flown at Culver City, California 1964-1965 Hughes Helicopters OH-6A Model 300 4 2H-6A Production Line Culver City production line for the Army’s OH-6A in 1968 Peak production rate of 100 OH-6A per month 5 Hughes Model 77 Hughes model 77 was the last helicopter model developed at the Culver City facility. The first 5 prototypes were designated YAH-64 AV02 through AV06 and later became the Army’s AH-64 Apache Attack Helicopter. AH-64A Apache 6 McDonnell Douglas / Boeing • December 1996, Boeing merged with Rockwell International's aerospace and defense units. • December 15, 1996, Boeing announced a bid for outright acquisition of MDC for $13 billion in stock. The two companies merged in 1997 into a single company with 220,000 employees. • The aerospace industry was reduced to three major participants: Boeing, Lockheed, and Europe's Airbus. MD Helicopters, Inc. • In 1999, Boeing sold off the commercial helicopter production to RDM Holdings, a Dutch investment company primarily interested in product development. • RDM kept the “MD” and the company became known as MD Helicopters Holdings, Inc. • In 2005, Patriarch Partners purchased the company and recapitalized it as an independent company, MD Helicopters, Inc. 7 Current Ownership • Patriarch Partners is an Investment Company located in New York and Charlotte, North Carolina • Lynn Tilton serves as Chairman of the Board of Patriarch Partners. • Lynn also serves as CEO of MD Helicopters, Inc. Other Changes Patriarch has purchased a manufacturing facility in Monterey Mexico. Our single engine fuselages are built there, with future plans possibly for the twin engine models Heritage Aviation in Texas also owned by Patriarch is utilized as a completion center for Interior and electrical operations. 8 MD 500E First Flight 1982 Five-bladed main rotor, 2 or 4 bladed tail rotor 420-shp Rolls-Royce 250- C20B or 450-shp Rolls-Royce 250-C20R turbine engine 9 MD 530F First Flight 1982 5 main rotor blades/ 2 tail rotor Rolls-Royce 250-C30 650-shp MD 520N The MD 500N is a fast, agile, lightweight, turbine powered, all-purpose helicopter 10 MD 600N A workhorse that can carry 2000 lbs of useful load This six-bladed helicopter features room for up to seven passengers Twin Engine – MD 902 11 12 Rebirth Starting in 2005 • Visual Factory and Inventory management • Optimized production flow and scheduling • Rebuilt Supply Chain to support increased volume • Improved Credit Terms, Reduced Prepaid / Cash In Advance • Completed Restructuring of Mexican Operations • Synchronized Mexico/Mesa/Completion Operations 13 Rebirth Starting in 2005 • Revamping / Refocusing World Wide Coverage • Distributor Network • Service Centers • Sales Representatives Rebirth Starting in 2005 • Modernizing and Expanding Customer Support • Introduced MD Power • Expanded Repair and Overhaul Operation • Focus on Recapturing Spares Market • Customer Ratings 14 Ghere We Are • Continued Strong 500E, 530F Sales – 2008 Production Sold Out – 50% of 2009 Production Sold – Jordan Follow-on • 6 530Fs Booked • 12 530F Trainers Expected – Houston (8 MD 500Es) – Potential Large Orders in Middle East, Southeast Asia Where We Are (cont.) • Strong MD 902 Sales – CalStar EMS (five) – Kuwait and Qatar (four) – European Demand Strong – Strong Interest From Foreign Military Customers • “Power By Hour” Offering 15 2008 Civil Helicopter Outlook "Independent Survey" Five Year World Demand For New Helicopters "Independent Survey" 16 Delivery Outlook for Civil Turbine Powered Helicopters "Independent Survey" Aircraft Unit Sales Actual Actual Actual 2005 2006 2007 Forecast MD Explorer 1 4 9 17 MD 600N 5 - 8 4 MD 530F - - 7 16 MD 520N 1 5 3 3 MD 500E - - 3 18 Total 7 9 30 58 60 Aircraft Unit Sales 58 50 40 30 30 20 10 9 7 0 2005 2006 2007 2008 17 Ghere We Are Going - 10 Year Forecast MD Helicopters 10 Year Forecast 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Aircraft Unit Sales Single 41 60 70 75 85 90 100 120 125 125 Twin 17 24 30 45 55 60 75 80 100 125 58 84 100 120 140 150 175 200 225 250 1,502 Total Sales $256,000,000 $356,400,000 $439,920,000 $582,034,500 $713,168,395 $805,148,880 $998,614,717 $1,153,420,191 $1,410,175,794 $1,721,100,858 10 Year Forecast 10 Year Forecast Aircraft Unit Sales Net Sales 250 250 $1,800,000,000 225 $1,600,000,000 200 200 $1,400,000,000 175 $1,200,000,000 150 150 140 $1,000,000,000 120 $800,000,000 100 100 84 $600,000,000 58 $400,000,000 50 $200,000,000 0 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 March 24, 2008 2008 Aviation International News Product Support Survey Results 7 6.94 6.8 6.78 6.6 6.45 6.4 6.2 6.13 6 5.86 5.8 5.6 5.4 5.2 Bell MDHI Sikorsky Agusta Eurocopter 18 Integrated FAR Part 27 Safety Features On MD Explorer Statiic Mast Desiign Hub/Transmiissiion Retentiion Twiin P&WC 207E Turbiine Engiines wiith Category A Performance Astrostriike Protected Fusellage Outstandiing Viisiibiilliity for Piillot Siituatiionall Awareness NOTAR¨Antii-Torque System Safety and Quiiet Flliight Operatiions Crashworthy A-Frame Cabiin/Cockpiit Rollll-Cage Passenger Strokiing Seats Meet Strokiing Crew Seats wiith FAR Part 27 to 30gs and 30 fps 25th to 95th Percentiille Adjustment Part 27 Crash-Resiistant Fuell System Progressiivelly Yiielldiing Deep Keell Beams Offers Benefits Normally Reserved for Military Helicopters The NOTAR® System • Greater Safety – Studies show that 21 percent of all crashes are due to tail rotor strikes or loss of tail rotor effectiveness. NOTAR® systems eliminate these problems. • Reduced Noise – Designed and tested to be 50 percent quieter than any other helicopter. – • Reduced Pilot Workload – Using the Coanda Effect to provide tail boom lift and anti-torque, the system is more stable and easier to control. This effect reduces the sensitivity to wind direction on helicopter control. • • Reduced Aircraft Vibration – The inherent stability of the standard M D 500 is further improved by the elimination of the exposed tail rotor assembly, which reduces overall helicopter vibrations and increases passenger comfort while reducing pilot fatigue. 19 How the NOTAR® System Works The NOTAR® system consists of an enclosed articulated fan driven by the main transmission, a circulation control tail boom, direct-jet thruster, and vertical stabilizers. Low pressure air, forced through two slots on the tail boom, causes the main rotor downwash to “hug” the contour of the boom, creating lateral lift that counteracts main rotor torque. Safety First Protection Plus • Crashworthy A-Frame Design • No Tail Rotor Strikes • 70 Percent of all Tail Rotor Accidents Could be Avoided With NOTAR® System 14% Tail Rotor Accidents Saved with NOTAR® Sixty-nine of 481 single- engine helicopter accidents in the U.S. from 1988- 1994 could have been 80% Accidents Other prevented with the NOTAR® than Tail Rotor system. 20 NOTAR® Significantly Improves Safety • No hull damage from tail rotor-related accidents • No dramatic center of gravity shift with loss of gearbox • Reduced pilot workload: concentrate on mission • Less sensitive to wind direction • Enhanced safety in confined areas • No third-party liability from walking into an almost invisible tail rotor • No driveshafts, hangar bearings or 90 degree gear boxes • Polypropylene fan blades are FOD tolerant • Flyable with loss of fan drive 21% of Accidents Attributed to Tail Rotors 70% of Tail Rotor-Caused Accidents Could Have Been Avoided* *Advanced Aviation Concepts, Inc. Study, April 1996 1988-1994 U.S.A. MD Helicopters Safety • Numerous safety features built into all five MD Models • Aircraft are consistently rated among the most reliable in the industry • Only Manufacturer to offer Wire Strike Protection free • NOTAR on MD 500N, MD 600N and MD Explorer • MD 900 is an industry leader in safety – Landing Gear, Fuselage, Fuel System, IID, Seats – Greater Pilot and Passenger Safety 21 ,otal Energy Absorption - Landing Gear Considerations - • All helicopters certified prior to the MD Explorer were required to demonstrate landing gear energy absorption at 8ft/sec • Current FAA requirement is 10.2 ft/sec • MD Explorer has demonstrated 11.6 ft/sec • MD Explorer has 110% more energy absorption in landing gear than any other currently FAA certified helicopter • Landing gear provides 20% of total aircraft energy absorption Total Energy Absorption - Fuselage Considerations - • Current FAA requirement for retention strength of major mass items (engines, transmission, etc.) is 8g forward, 2g lateral and 4g down (FAR Part 27.561). • MD Explorer is rated at 17g forward, 17g lateral, and 15g down • Crush structure is 18-inch keel beams and cruciform sections at bulkhead frames. • Anti-plowing nose has 5g static design strength. • Tailboom has 15g down static design strength. • Large “share” of fuselage energy absorption gives extra protection in soft soil and water. 22 Safety First Airframe Design • Crashworthy A-Frame Design Acts as an Integral Seat Structure • Static Mast With Fail-Safe Rotor and Rotor Retention System • Exceptional Visibility – 270° Field of View for Confined Areas Passenger & Maintenance Safety Features • Passengers – Large windows for emergency
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