Industry Overview: Aerospace & Defense Supplemental Discussion - PowerPoint PPT Presentation

Industry Overview: Aerospace & Defense Supplemental Discussion Materials Materials Presented by: January 2018

Executive Summary Columbia West Capital, LLC (“CWC”) appreciates the opportunity to present our firm and to provide our observations regarding the Aerospace & Defense industry  The purpose of this presentation is to highlight CWC’s qualifications and capabilities in investment banking by addressing the following: − Introduction of CWC and the investment banking team − CWC’s relevant investment banking qualifications − CWC’s expertise in the Aerospace & Defense industry  Communicate key trends that will dominate A&D transaction discussion in the near-medium term  Become a resource for business owners and operators who may eventually require capital raising and M&A services to achieve their financial and strategic objectives 2

Agenda Section Topic I. Overview of Columbia West Capital II. Aerospace & Defense Market Overview III. M&A Market Overview IV. Investor & Capital Landscape V. CWC Value Offering VI. Appendix 3

I. Overview of Columbia West Capital, LLC

Overview of Columbia West Capital CWC is a FINRA-registered investment banking firm focused on providing world-class financial advisory services to middle-market companies  Our senior partners bring investment banking experience from major-bracket investment banking firms including: − Morgan Stanley − Deutsche Bank − Credit Suisse  Our senior partners bring a wealth of hands-on operating and transaction experience in growth companies and major corporations − More than 55 transactions worth over $15.0 billion dollars  CWC delivers a full range of advisory services including: I. Mergers and Acquisitions II. Capital Raising III. Strategic Financial Advisory IV. Business Valuation 5

Overview of Columbia West Capital CWC offers a full range of traditional investment banking advisory services Mergers & Capital Raising Strategic Advisory Business Valuation Acquisitions  Sell Side Advisory  Debt Capital  Restructuring  Fairness Opinions  Senior Facilities  Buy Side Advisory  Leveraged  Business Valuation  Subordinated Recapitalizations  Mezzanine  Leveraged Buyouts  Strategic Alternatives  Equity  Financial Consulting Evaluation  Management Buyouts  Growth Capital  Product Line  Shareholder Liquidity  Public to Private Valuation 6

Overview of Columbia West Capital Why Columbia West Capital? CWC’s deal team has long-established reputations with leading Wall Street I. Credibility and Reputation. financial institutions and major corporations, providing our clients with unparalleled access to providers of capital II. Focused Attention. We work with our clients as partners to achieve their goals. We view ourselves as the extension of our client's senior management team, and the full resources of our experience and expertise are available throughout the entire process. We succeed as a team. We limit our engagements to a few select clients that receive 100% of our attention and our highest priority III. Entrepreneurial Spirit . We offer our clients the expertise and capabilities of a large investment banking firm with the energy and focused attention of a small entrepreneurial firm. As business owners and operators ourselves, we can relate to entrepreneurs on a more personalized level during the capital raising process unlike our larger competition IV. Experience Counts. Our senior partners have a wide array of experience and a depth of knowledge in many disciplines and across geographies. Our partners have both extensive deal experience from large Wall Street firms and middle market boutiques as well as hands-on senior management experience Our Senior Investment Banking Professionals have a breadth of industry experience that reflects the diversity of the Southwest economy. 7

Overview of Columbia West Capital CWC’s track record of results is based on industry expertise, creativity, and superior execution at each step of the process Critical “Front - End” Critical “Back - End” Process Considerations Process Considerations Superior Senior-  Determining optimal Level Attention process timing  Fully understanding all at Each Stage of buyer proposals to  Crafting the the Process develop a “true” appropriate process Dedication to Deep comparison between Middle-Market Knowledge of offers  Identifying the right M&A and Industry and group of buyers or  Determining the most investors Capital Raising Business Model advantageous time to negotiate with potential  Appropriately buyers and investors conveying the “story” and growth  Deciphering and opportunities evaluating advantages  with proposals Assembling a qualified, competitive group of Innovative Institutional  investors Developing counter Strategies and Knowledge of proposal(s) and the Outstanding  Positioning and Potential Buyers best script to deliver Negotiating presenting the them and Investors Company in the best Skills light possible Unparalleled d Commitment and Attention to Detail 8

CWC A&D Deal Team Biographies John Farr, Managing Director & Partner John Farr has spent his career serving companies in the Consumer, Manufacturing, Industrial Technology, and Aerospace & Defense industries. His transaction experience includes public and private companies such as Honeywell International, General Electric, Nutraceutical International, Boeing, General Dynamics, Kroger Inc., the Vanguard group, and Atrium Innovations. Mr. Farr was previously with Honeywell Aerospace’s Mergers & Acquisitions team making acquisitions in the commercial and business aviation and defense markets. Additionally, Mr. Farr was the Finance Manager for a $525 million MRO division. Previously he worked with PNC Equity Management, a $1 billion private equity group engaged in growth equity, leveraged buyout, and mezzanine loan investing primarily in consumer, manufacturing, distribution, and services businesses. Mr. Farr began his investment banking career in New York where he worked as an Analyst and Associate with the Private Placement team at Deutsche Bank Alex Brown. He originated, Prior Experience structured, and placed investment grade and mezzanine loan transactions for a variety of industries.  Honeywell Aerospace M&A Mr. Farr earned a B.A. in Economics and Business Administration from Vanderbilt  PNC Private Equity University and an MBA with concentrations in Finance, Accounting, and Strategy from the Kellogg School of Management. Mr. Farr is registered with FINRA (formerly  Deutsche Bank NASD) and has series 7, 63, and 24 securities licenses. He is a past recipient of The M&A Advisor’s national 40 Under 40 Award, is involved with several finance industry organizations, and is a frequent speaker on the topics of M&A and capital raising. 9

CWC A&D Deal Team Biographies David Barnett, Managing Director & Partner David Barnett brings more than 20 years experience in both public and private sector investments to Columbia West Capital. Previously, he spent more than 8 years at Morgan Stanley working mainly with owners and operators of closely held businesses. He has been involved in successfully structuring and executed transactions in both the corporate and commercial real estate arena. Additionally, he has worked in the US Senate, focusing exclusively in healthcare legislation, and later developed a governmental affairs team at a 530 bed hospital and the 3 rd largest home health care company in the United States. Recently he was Chairman of the City of Scottsdale Planning Commission, Trustee and past Treasurer of the Desert Botanical Garden, Greater Phoenix Economic Council (GPEC) International Leadership Committee member and is also involved in numerous other volunteer organizations. Mr. Barnett has a B.S. in Political Science from Arizona State University, and a Masters of Public Policy – Regulatory Affairs from the College of William and Mary. Mr. Barnett is registered with FINRA (formerly NASD) and holds Series 7 and Series 63 securities licenses. 10

CWC A&D Deal Team Biographies Evan Brindley, Analyst Evan Brindley joined Columbia West Capital in 2016, assisting senior bankers with transaction execution including valuation analysis and industry research across a broad range of industries and assisting in the preparation of pitch books, investment memoranda, marketing materials and in all aspects of due diligence and client management. Prior to joining CWC, Evan worked as a M&A Summer Analyst for Hexagon AB in their Corporate Strategy division. Evan received a B.S. in Business Administration and Finance from The University of Alabama and an MBA with a concentration in Finance from the W.P. Carey School of Business. Evan is a Registered Representative with FINRA and holds Series 63 and Series 79 securities licenses. 11

CWC Aerospace & Defense Coverage Columbia West Capital’s Select Company Coverage: H Y M A T I C 12

II. Aerospace & Defense Industry Overview

Recent Public Market Performance – Stock Price Where is Aero & Defense today? 3 Yr Average 2017 DJIA 11.1% 25.1% S&P 500 8.5% 19.4% Russell 2000 8.0% 13.1% DJ Global ex U.S. N/A 24.6% MSCI EAFE 7.8% 25.0% iShares Asia 50 33.7% 17.5% 16.3% 32.1% S&P A&D Select Industries Index By stock market performance, A&D has shined recently even in a robust market 14