INVESTMENT BANKING September 2021 IN THIS ISSUE DEFENSE & GOVERNMENT Industry Expertise 2 Publicly Traded Companies 3 Recent M&A Activity 9 MARKET INTEL REPORT Recently Awarded Contracts 13 FOR INSTITUTIONAL USE ONLY MARKET INTEL REPORT September 2021 Industry Expertise: Illustrative Transactions Has entered into a definitive agreement to A portfolio company of DEFENSE & GOVERNMENT be acquired by Has received a strategic & Has been acquired by Has been acquired by Has been acquired by SERVICES TEAM investment from A portfolio company of Has been acquired by & Evergreen Coast Capital SAM MANESS Managing Director 703.657.4646 [email protected] Has acquired Has been acquired by A portfolio company of A portfolio company of Has received a strategic Has been acquired by investment from ANDY MCENROE A portfolio company of Director Has been acquired by Has been acquired by A portfolio company of 703.657.4630 [email protected] The Federal Government IT ELLIS CHAPLIN Solutions Business of Director Has received Has been acquired by Has been acquired by $227,700,000 Has been acquired by 703.657.4620 financing from Has been acquired by [email protected] Follow-On Offering Co-Manager NATALIE WARTHER Vice President The Global Defense The Government 703.657.4622 Services Business of Services Business of A portfolio company of [email protected] Has been acquired by Has been acquired by Has been acquired by Has been acquired by Has been acquired by Has been acquired by WASHINGTON, D.C. OFFICE 1875 Explorer Street, Suite 910 Reston, VA 20190 *Transactions occurred between November 2016 and August 2021 RAYMOND JAMES HEADQUARTERS Illustrative Equity Research Coverage 880 Carillon Parkway GOVERNMENT TECHNOLOGY & SERVICES SATELLITE COMMUNICATION SERVICES St. Petersburg, FL 33716 *The public companies displayed are actively covered by Raymond James Equity Research analysts RAYMOND JAMES INVESTMENT BANKING 2 MARKET INTEL REPORT September 2021 Publicly Traded Companies Last 12 Months Public Equity Index Chart 175% 175% 150% 150% 125% 125% 100% 100% 75% 75% Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Government Services Multi-Platform Contractors Defense Technology Diversified IT State & Local Commercial Aerospace – Commercial Aerospace – Space & Satellite S&P 500 OEM Suppliers & Aftermarket Sources: Capital IQ; DACIS / Infobase; Bloomberg Government; Washington Technology; Data as of 8/31/2021; sector returns are weighted by market capitalization Note: Companies included are those tracked internally by Raymond James – Individual assets disclosed on pages 5–8. Performance does not include commissions & fees; past performance is no guarantee of future results. RAYMOND JAMES INVESTMENT BANKING 3 MARKET INTEL REPORT September 2021 Publicly Traded Companies (cont.) Comparative Change in Stock Prices (1) 60.0% 50.0% 36.2% 36.9% 40.0% 31.5% 29.8% 30.3% 28.2% 30.0% 23.5% 22.3% 17.1% 20.0% 16.0% 16.1% 15.8% 12.7% 11.4% 10.0% 3.9% 3.4% 5.2% (0.8%) (0.4%) (1.6%) (3.8%) (0.2%) (10.0%) (4.2%) (3.1%) Commercial Government Multi-Platform Defense Commercial Aerospace – Diversified IT State & Local Services Contractors Technology Aerospace – OEM Suppliers & Space & Satellite Aftermarket One-Year Change YTD Change One-Month Change EBITDA Valuation Multiples: Single-Day Trading Snapshot (2) 20.0x 17.7x 17.3x 17.0x 15.5x 15.9x 14.6x 13.7x 14.5x 14.0x 14.0x 14.3x 14.0x 15.0x 12.9x 12.7x 13.0x 12.9x 13.2x 13.1x 13.2x 11.4x 11.3x 10.3x 10.7x 10.2x 10.0x 5.0x Commercial Government Multi-Platform Defense Commercial Diversified IT State & Local Aerospace – Space & Satellite Services Contractors Technology Aerospace – OEM Suppliers & Aftermarket 8/30/2019 8/31/2020 8/31/2021 Source: Capital IQ; Data as of 8/31/2021 (1) Sector returns are weighted by market capitalization as of 8/31/2021; performance does not include commissions & fees. (2) Total enterprise value is defined as equity value plus total debt less cash. TEV / EBITDA valuation multiples less than 0.0x or greater than 40.0x are considered not material in the analysis; figures represent the median of single-day trading multiples for each respective sector. Note: Companies included are those tracked internally by Raymond James – Individual assets disclosed on pages 5–8. Past performance is no guarantee of future results. RAYMOND JAMES INVESTMENT BANKING 4 MARKET INTEL REPORT September 2021 Publicly Traded Companies (cont.) $ in millions (except for stock price) Market Data Financial Data Valuation Multiples Valuation Multiples Valuation Multiples LTM TEV / LTM TEV / CY 2021 (E) TEV / CY 2022 (P) Stock Price at % of Equity Enterprise Total EBITDA Debt / Total Total Total Company Name Ticker 8/31/2021 52-Week High Value Total Debt Value Sales EBITDA Margin EBITDA Sales EBITDA Sales EBITDA Sales EBITDA Booz Allen Hamilton Holding Corporation NYSE:BAH $81.91 81.7% $11,073 $3,198 $13,649 $7,892 $865 11.0% 3.4x 1.7x 15.8x 1.7x 15.2x 1.5x 14.2x CACI International Inc NYSE:CACI $257.54 95.1% $6,074 $2,185 $8,172 $6,044 $669 11.1% 2.8x 1.4x 12.2x 1.3x 12.6x 1.3x 11.4x ICF International, Inc. NasdaqGS:ICFI $93.66 91.6% $1,766 $471 $2,228 $1,566 $140 8.9% 2.7x 1.4x 15.9x 1.4x 14.5x 1.4x 13.6x Jacobs Engineering Group Inc. NYSE:J $134.96 92.5% $17,587 $4,104 $20,909 $14,026 $1,210 8.6% 2.9x 1.5x 17.3x 1.4x 15.9x 1.3x 14.0x Leidos Holdings, Inc. NYSE:LDOS $98.11 86.3% $13,889 $5,798 $19,398 $13,257 $1,461 11.0% 3.7x 1.5x 13.3x 1.4x 13.1x 1.3x 12.3x ManTech International Corporation NasdaqGS:MANT $79.17 78.1% $3,221 $132 $3,289 $2,557 $246 9.6% 0.5x 1.3x 13.4x 1.2x 13.1x 1.2x 12.7x PAE Incorporated NasdaqCM:PAE $6.69 62.6% $623 $1,069 $1,630 $2,910 $188 6.5% 4.3x 0.6x 8.7x 0.5x 7.8x 0.5x 7.8x Parsons Corporation NYSE:PSN $35.43 78.7% $3,632 $863 $4,048 $3,723 $325 8.7% 2.2x 1.1x 12.4x 1.1x 13.3x 1.0x 11.4x Government Services Government Science Applications International Corporation NYSE:SAIC $84.23 81.0% $4,882 $2,792 $7,393 $6,935 $674 9.7% 3.5x 1.1x 11.0x 1.0x 11.3x 1.0x 10.7x Vectrus, Inc. NYSE:VEC $50.31 83.4% $590 $204 $724 $1,613 $82 5.1% 1.4x 0.4x 8.8x 0.4x 7.8x 0.4x 6.9x Median: 82.6% $4,257 $1,627 $5,720 $4,883 $497 9.3% 2.9x 1.3x 12.9x 1.3x 13.1x 1.2x 11.9x Average: 83.1% $6,334 $2,082 $8,144 $6,052 $586 9.0% 2.7x 1.2x 12.9x 1.2x 12.5x 1.1x 11.5x BAE Systems plc LSE:BA. $7.82 96.3% $25,113 $8,893 $30,403 $26,843 $3,416 12.7% 2.4x 1.1x 8.9x 1.0x 8.0x 1.0x 7.5x The Boeing Company NYSE:BA $219.50 78.8% $128,660 $63,559 $171,074 $61,658 ($1,794) N.M. N.M. 2.8x N.M. 2.3x 30.0x 1.9x 17.1x General Dynamics Corporation NYSE:GD $200.31 99.6% $55,897 $15,642 $68,589 $38,521 $5,267 13.7% 2.8x 1.8x 13.0x 1.7x 13.5x 1.7x 12.9x Honeywell International Inc. NasdaqGS:HON $231.97 97.9% $160,110 $22,357 $170,420 $33,959 $8,340 24.6% 2.6x N.M. 20.4x 4.9x 19.3x 4.5x 17.5x L3Harris Technologies, Inc. NYSE:LHX $233.01 99.1% $46,822 $7,747 $52,653 $18,358 $3,653 19.9% 2.0x 2.9x 14.4x 2.8x 13.5x 2.7x 12.5x Lockheed Martin Corporation NYSE:LMT $359.80 89.5% $99,635 $12,171 $109,069 $66,814 $10,228 15.3% 1.2x 1.6x 10.7x 1.6x 10.4x 1.5x 10.0x Platform Contractors - Northrop Grumman Corporation NYSE:NOC $367.70 97.0% $58,872 $14,159 $68,669 $37,603 $5,572 14.8% 2.3x 1.8x 12.3x 1.9x 11.2x 1.8x 13.4x Raytheon Technologies Corporation NYSE:RTX $84.76 94.2% $127,071 $33,045 $153,701 $62,297 $9,164 14.7% 3.4x 2.5x 16.8x 2.4x 15.0x 2.2x 12.3x Multi Median: 96.7% $79,253 $14,901 $88,869 $38,062 $5,420 14.8% 2.4x 1.8x 13.0x 2.1x 13.5x 1.8x 12.7x Average: 94.1% $87,773 $22,197 $103,072 $43,257 $5,481 16.5% 2.4x 2.1x 13.8x 2.3x 15.1x 2.2x 12.9x Source: Capital IQ; Data as of 8/31/2021 Financial projections are sourced from Capital IQ consensus estimates; foreign traded companies are listed in U.S. dollars at 8/31/2021 spot exchange rate; TEV / EBITDA valuation multiples less than 0.0x or greater than 40.0x; Debt / EBITDA multiples less than 0.0x or greater than 10.0x, and TEV / Total Sales multiples less than 0.0x or greater than 5.0x are considered not material (“N.M.”) in the analysis; “N.A.” indicates no Capital IQ consensus estimates are available; Debt / LTM EBITDA figures represent total debt divided by LTM EBITDA, which includes a lease adjustment Note: Figures presented are not reflective of any recent acquisitions / divestitures Definitions: Last Twelve Months (“LTM”), Expected Calendar Year 2021 (“CY 2021 (E)”), Projected Calendar Year 2022 (“CY 2022 (P)”), Total Enterprise Value (“TEV”) RAYMOND JAMES INVESTMENT BANKING 5 MARKET INTEL REPORT September 2021 Publicly Traded Companies (cont.) $ in millions (except for stock price) Market Data Financial Data Valuation Multiples Valuation Multiples Valuation Multiples LTM TEV / LTM TEV / CY 2021 (E) TEV / CY 2022 (P) Stock Price at % of Equity Enterprise Total EBITDA Debt / Total Total Total Company Name Ticker 8/31/2021 52-Week High Value Total Debt Value Sales EBITDA Margin EBITDA Sales EBITDA Sales EBITDA Sales EBITDA AeroVironment, Inc.