scott-macon aerospace, defense and government services monthly update (january 2017)

SCOTT-MACON, LTDJanuary 2017

2© Copyright 2016 SCOTT-MACON, LTD.

We are pleased to present you with the January 2017 Edition ofthe Scott-Macon Aerospace, Defense and Government Servicesmonthly newsletter! Our team strives to provide industryprofessionals such as yourself with the critical market informationnecessary to execute your strategic goals and initiatives. Pleaselet us know if you would like to discuss any of the emergingtrends presented in this review and how they can potentiallyimpact your firm.

Our team can help you with the following services:

Mergers and Acquisitions

- Sale of company

- Acquisition of target companies

Private Debt and Equity Financing

Dividend Recapitalization

We look forward to speaking to you soon!

Best,

Michael

Michael N. PapazisManaging DirectorAerospace, Defense & Government ServicesOffice: (212) 755-8200Fax: (212) [email protected]

A note from SCOTT-MACON

Prepared by SCOTT-MACON, LTD.

Table of ContentsSection 1 Market Snapshot

Review of key valuation and deal trends analyzed on an Monthly and Last Twelve Month (LTM) basis

4

Section 2 Public Trading ComparablesList of operating metrics and valuation multiples for public companies in selected sub‐segments of the Aerospace, Defense & Government Services (ADG) sectors

6

Section 3 M&A TransactionsList of relevant transactions with disclosed values which occurred in the last month segmented by Aerospace, Defense or Government Services

9

Section 4 Recent ContractsList of selected major government contracts that have been awarded in the last month

18

Section 5 Key Aerospace & Defense StatsReview of key trends in the aerospace and defense sectors

22

Section 6 About Scott‐MaconBrief overview on Scott‐Macon and their ADG investment banking practice

25


SECTION 1: MARKET SNAPSHOT



Aerospace, Defense & Government ServicesMarket Snapshot

Share Price Performance

Trading Valuation (TEV / LTM EBITDA)

M&A TransactionsM&A Transactions

Trading Valuation (TEV / LTM EBITDA)

Share Price Performance

Monthly as of January 2017 LTM as of January 2017

3622

28

23

12

4

76

49

0

10

20

30

40

50

60

70

80

90

31-Jan-16 31-Jan-17

Num

ber

of D

eals

Aerospace Defense Government Services

329 295

313295

136102

778

692

0

100

200

300

400

500

600

700

800

900

LTM-Jan-16 LTM-Jan-17

Num

ber

of D

eals

Aerospace Defense Government Services

8.50x

9.00x

9.50x

10.00x

10.50x

11.00x

11.50x

12.00x

12.50x

Dec-

30-2

016

Jan-

01-2

017

Jan-

03-2

017

Jan-

05-2

017

Jan-

07-2

017

Jan-

09-2

017

Jan-

11-2

017

Jan-

13-2

017

Jan-

15-2

017

Jan-

17-2

017

Jan-

19-2

017

Jan-

21-2

017

Jan-

23-2

017

Jan-

25-2

017

Jan-

27-2

017

Jan-

29-2

017

Jan-

31-2

017

SM Aerospace SM Government Services SM Defense

3.2 %

-66.7 %

-17.9 %

-38.9 %

-25.0 %

-5.8 %

-10.3 %

87

89

91

93

95

97

99

101

103

105

107

Dec-30-2016

Jan-01-2017

Jan-03-2017

Jan-05-2017

Jan-07-2017

Jan-09-2017

Jan-11-2017

Jan-13-2017

Jan-15-2017

Jan-17-2017

Jan-19-2017

Jan-21-2017

Jan-23-2017

Jan-25-2017

Jan-27-2017

Jan-29-2017

Jan-31-2017

S&P 500 SM AerospaceSM Government Services SM Defense

1.0 %

3.1 %

1.9 %

-1.1 %

74

84

94

104

114

124

134

144

Jan-

29-2

016

Feb-

29-2

016

Mar

-31-

2016

Apr-3

0-20

16

May

-31-

2016

Jun-

30-2

016

Jul-3

1-20

16

Aug-

31-2

016

Sep-

30-2

016

Oct

-31-

2016

Nov

-30-

2016

Dec

-31-

2016

Jan-

31-2

017

S&P 500 SM AerospaceSM Government Services SM Defense

20.6 %

15.4 %

20.6 %

32.1 %

-1.7 %

-1.1 % 24.4 %

16.6 %

8.1 %

7.50x

8.50x

9.50x

10.50x

11.50x

12.50x

13.50xJa

n-29

-201

6

Feb-

29-2

016

Mar

-31-

2016

Apr-3

0-20

16

May

-31-

2016

Jun-

30-2

016

Jul-3

1-20

16

Aug-

31-2

016

Sep-

30-2

016

Oct

-31-

2016

Nov

-30-

2016

Dec

-31-

2016

Jan-

31-2

017

SM Aerospace SM Government Services SM Defense


SECTION 2: PUBLIC COMPARABLES



Aerospace, Defense & Government ServicesPublic Comparables

Aerospace Public Comparables*

Government Services Public Comparables*% of 52 Market Total Enterprise TEV / % Change TEV / LTM EBITDA TEV / % Change TEV / LTM Rev.

Government Services Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 YearBooz Allen Hamilton Holding Corp. $33.82 87.8% $5,071.4 $6,285.8 12.1 x -5.1% 6.5% 1.1 x -7.1% 6.6%CACI International Inc 122.80 91.8 2,993.6 4,359.7 12.7 -0.8 27.9 1.1 -0.8 22.5CGI Group Inc. 47.98 93.2 14,220.2 15,263.5 11.0 -3.9 -1.8 1.9 -3.9 -3.4CSRA Inc. 31.02 92.5 5,069.5 7,818.5 13.0 -1.7 63.2 1.6 -1.7 39.0Engility Holdings, Inc. 29.33 74.9 1,078.6 2,112.0 11.8 -7.1 34.5 1.0 -7.1 18.2ICF International, Inc. 52.00 87.3 985.8 1,257.3 11.4 -4.6 22.7 1.1 -4.6 23.3KEYW Holding Corp. 10.01 73.8 488.0 576.4 NM NA NA 1.9 2.4 NMLeidos Holdings, Inc. 48.32 91.3 7,265.6 10,306.6 19.8 -4.0 NM 1.8 -4.0 NMManTech International Corp. 38.94 85.5 1,500.8 1,429.9 11.5 -8.2 29.1 0.9 -8.2 36.9MAXIMUS, Inc. 55.14 89.4 3,571.8 3,675.3 10.6 -1.1 -8.8 1.5 -1.1 -11.5Navigant Consulting, Inc. 24.70 88.7 1,162.4 1,316.6 9.5 -5.0 29.7 1.4 -5.0 31.9NCI, Inc. 12.70 83.0 171.9 171.6 5.9 -9.0 -11.5 0.5 -9.0 -4.7QinetiQ Group Plc 3.31 98.1 1,879.4 1,536.7 8.9 0.2 1.1 1.6 0.2 7.0Science Applications International Corp. 81.42 91.2 3,572.8 4,428.8 12.8 -3.2 31.6 1.0 -3.2 44.1Serco Group plc 1.81 95.3 1,968.9 2,150.5 10.5 0.4 NA 0.6 0.4 73.5Vectrus, Inc. 22.54 64.4 242.9 281.5 5.9 -4.8 -11.9 0.2 -4.8 -6.8VSE Corp. 37.28 87.3 402.6 656.3 8.3 -2.5 -2.2 1.1 -2.5 -13.0

Median 88.7% $1,879.4 $2,112.0 11.2 x -1.8% 25.8% 1.1 x -2.6% 21.0%Mean 86.8% $3,038.0 $3,742.8 11.0 x 1.7% 21.1% 1.2 x -3.1% 22.7%

% of 52 Market Total Enterprise TEV / % Change TEV / LTM EBITDA TEV / % Change TEV / LTM Rev.

Engineering & Construction Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 YearAECOM $36.93 90.7% $5,729.4 $9,348.2 9.1 x 1.4% 22.7 0.5 x 1.4% 17.0%Fluor Corp. 55.50 96.1 7,728.4 7,654.7 9.0 5.7 NM 0.4 5.7 47.9Jacobs Engineering Group Inc. 58.55 92.3 7,074.6 6,871.5 10.5 2.8 56.5 0.6 2.8 51.3KBR, Inc. 17.01 94.8 2,426.8 2,542.8 12.0 1.8 -8.3 0.6 1.8 NMTetra Tech, Inc. 43.70 97.4 2,503.1 2,691.4 13.2 1.5 49.8 1.4 1.5 47.3

Median 94.8% $5,729.4 $6,871.5 10.5 x 2.8% 41.9% 0.6 x 1.8% 47.3%Mean 94.3% $5,092.5 $5,821.7 10.7 x 2.5% 32.8% 0.7 x 2.3% 51.9%

Total Government Services Median 91.0% $2,465.0 $2,617.1 11.0 x -1.1% 24.4% 1.1 x 17.3% 23.4%Total Government Services Mean 88.5% $3,504.9 $4,215.3 10.9 x 2.0% 23.8% 1.1 x -2.3% 26.4%

* As of Monday, October 31, 2016


Aerospace OEMs Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 YearAirbus Group SE $67.72 94.6% $52,314.0 $55,622.5 11.0 x -0.1% 48.3% 0.8 x -0.1% 9.4%Boeing Company 163.42 96.1 100,854.9 100,837.9 13.5 6.4 56.2 1.1 4.3 29.7Bombardier Inc. 1.91 90.2 4,206.3 11,741.3 NM NA NM 0.7 4.8 60.5Embraer S.A. 5.72 58.9 4,198.1 5,856.0 13.6 8.7 -11.1 0.8 8.7 -46.8

Median 92.4% $28,260.2 $33,681.9 13.5 x 8.4% 55.2% 0.8 x 4.1% 4.4%Mean 85.0% $40,393.3 $43,514.4 12.7 x 5.2% 26.6% 0.8 x 4.3% -3.8%


Aerospace Systems / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 YearAAR Corp. $31.99 82.6% $1,098.2 $1,206.6 9.9 x -2.9% -27.1% 0.7 x -2.9 44.2%AMETEK, Inc. 51.10 96.7 11,826.2 13,535.1 13.3 4.5 11.4 3.5 4.5 10.9Astronics Corporation 32.81 80.0 1,042.6 1,193.3 11.9 -2.4 52.0 1.9 -2.4 34.3B/E Aerospace, Inc. 61.47 99.3 6,245.5 8,155.5 13.5 1.6 13.4 2.8 1.6 25.7CAE Inc. 14.17 92.7 3,803.1 4,553.8 10.7 -1.4 6.3 2.3 -1.4 11.4Crane Co. 72.04 91.3 4,225.6 4,461.2 9.6 -3.0 36.9 1.6 -2.7 39.6Esterline Technologies Corporation 85.65 90.4 2,538.7 3,161.4 11.4 -3.2 4.8 1.6 -3.2 2.8HEICO Corporation 76.95 93.4 4,750.2 5,349.3 16.1 -1.3 16.0 3.9 -1.3 21.5Héroux-Devtek Inc. 11.10 90.2 400.6 500.0 10.6 -1.2 -5.4 1.6 -1.2 8.0Meggitt PLC 5.25 86.1 4,072.6 5,677.0 16.5 -6.5 67.3 2.6 -6.5 21.1Moog Inc. 65.87 90.2 2,360.1 3,035.4 9.2 -2.4 18.6 1.2 -1.3 28.1MTU Aero Engines AG 119.35 94.8 6,129.3 5,699.2 8.5 0.8 -9.7 1.2 0.8 -3.0Textron Inc. 47.37 93.0 12,799.8 15,562.8 9.8 -4.0 26.0 1.1 -4.2 26.5TransDigm Group Incorporated 216.40 73.5 11,559.6 20,251.2 14.0 -7.8 -15.0 6.4 -7.8 -13.8Woodward, Inc. 69.64 97.5 4,298.5 4,937.5 14.8 -0.3 22.4 2.4 0.7 31.8Zodiac Aerospace 30.32 97.4 8,402.7 9,544.4 NM NM NM 1.7 24.5 28.8

Median 92.0% $4,262.1 $5,143.4 11.4 x -5.0% 2.8% 1.8 x -0.5% 16.1%Mean 90.6% $5,347.1 $6,676.5 12.0 x -5.9% 7.4% 2.3 x -1.4% 11.6%


Aerospace Structures Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 YearCPI Aerostructures, Inc. $8.80 86.7% $76.9 $108.6 NM NM NM 1.2 x -3.5% 8.2%Ducommun Incorporated 29.63 94.2 331.1 498.2 10.3 10.0 28.0 0.9 10.0 50.3GKN plc 4.32 97.2 7,388.5 8,380.0 7.2 3.1 11.6 0.8 3.1 8.8Hexcel Corporation 51.35 93.2 4,711.9 5,365.4 11.8 -1.9 9.0 2.7 -0.6 13.0Kaman Corporation 50.53 95.6 1,369.8 1,764.7 11.2 2.5 27.3 1.0 2.5 31.8Latécoère S.A. 4.67 96.4 439.3 562.6 10.3 2.6 -25.9 0.7 2.6 -29.9LMI Aerospace, Inc. 8.87 88.7 119.3 367.9 9.6 0.9 -6.6 1.0 0.9 -1.4Magellan Aerospace Corporation 13.63 89.0 793.1 945.1 7.5 -1.0 -1.3 1.2 -1.0 1.0Senior plc 2.49 80.8 1,043.1 1,303.6 9.7 1.5 13.1 1.2 1.5 -3.4Spirit AeroSystems Holdings, Inc. 60.05 97.6 7,305.1 7,740.5 8.3 2.7 42.2 1.1 2.7 21.4Triumph Group, Inc. 26.75 66.7 1,325.5 2,908.3 NM NM NM 0.8 0.4 5.5

Median 93.2% $1,043.1 $1,303.6 9.7 x 1.8% 12.2% 1.0 x 0.9% 6.5%Mean 89.6% $2,264.0 $2,722.3 9.5 x 2.2% 3.9% 1.2 x 1.1% 8.2%

Total Aerospace Median 92.7% $4,198.1 $4,937.5 10.7 x -1.7% 8.1% 1.2 x -1.0% 4.3%Total Aerospace Mean 89.5% $8,775.2 $10,026.7 11.2 x -2.8% 9.1% 1.7 x -0.4% 9.7%



Aerospace, Defense & Government ServicesPublic Comparables (Continued)

Defense Public Comparables*

* As of Monday, October 31, 2016


Defense Primes Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 YearBAE Systems plc $7.31 92.2% $23,215.8 $25,645.0 11.8 x -1.4% 14.3% 1.2 x -1.4% 14.8%Boeing Company 163.42 96.1 100,854.9 100,837.9 13.5 6.4 56.2 1.1 4.3 29.7General Dynamics Corporation 181.08 96.6 54,761.9 56,315.9 11.8 2.4 29.7 1.8 2.6 33.2Leonardo S.p.a. 12.86 86.6 7,384.7 11,957.9 6.5 -6.9 -4.9 0.9 -6.9 12.5Lockheed Martin Corporation 251.33 93.1 72,830.4 85,370.4 12.6 8.2 8.3 1.8 7.9 7.2Northrop Grumman Corporation 229.08 90.3 40,104.6 44,633.6 12.2 -7.2 15.1 1.8 -6.3 11.8Raytheon Company 144.16 94.5 42,332.6 44,713.6 11.9 -1.8 1.0 1.9 0.6 6.7Thales S.A. 93.64 93.0 19,792.2 18,481.6 10.7 -6.1 2.8 1.2 -6.1 12.0

Median 93.1% $41,218.6 $44,673.6 11.9 x 0.5% 14.4% 1.5 x 2.2% 24.4%Mean 92.8% $45,159.6 $48,494.5 11.4 x -0.5% 14.7% 1.5 x -0.4% 14.6%


Defense Systems Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 YearAerojet Rocketdyne Holdings, Inc. $18.11 84.6% $1,320.2 $1,725.7 11.4 x 3.8% 23.6% 1.6 x 68.2% NMAeroVironment, Inc. $26.19 80.7% $601.5 $394.7 NM NA NA 1.0 x -39.4% -26.9Cobham plc 1.70 51.4 2,887.0 3,990.8 9.4 -13.0 -19.1 1.0 -44.8 -46.9Cubic Corporation 47.55 94.0 1,288.1 1,519.0 NM NM NM 2.9 NM NMCurtiss-Wright Corporation 98.06 91.1 4,337.0 4,851.8 11.9 -0.3 17.6 2.9 25.4 61.8FLIR Systems, Inc. 35.33 95.0 4,809.5 4,648.8 13.2 -2.5 19.2 1.3 -55.0 -47.3Huntington Ingalls Industries, Inc. 193.96 98.3 8,993.2 9,313.2 9.2 5.1 33.1 1.2 -7.9 23.7Kongsberg Gruppen ASA 16.50 95.4 1,969.0 2,310.5 16.6 7.7 27.5 1.5 35.5 5.0L3 Technologies, Inc. 158.69 99.3 12,268.1 15,296.1 12.6 NM NM 1.4 NM NMOrbital ATK, Inc. 86.95 94.7 5,091.5 6,624.6 10.6 -0.7 -12.1 2.6 NM 54.2Rockwell Collins, Inc. 90.76 94.0 11,847.8 13,815.8 11.3 -2.1 4.4 1.6 -38.1 -33.9Safran SA 67.66 89.7 28,127.9 30,213.8 7.0 -7.8 -17.3 1.5 -7.8 -4.1Textron Inc. 47.37 93.0 12,799.8 15,562.8 9.8 -4.0 26.0 1.1 -4.2 26.5

Median 94.0% $4,809.5 $4,851.8 11.3 x 3.3% 11.0% 1.5 x 1.0% 2.4%Mean 89.3% $7,410.8 $8,482.1 11.2 x 0.3% 12.1% 1.7 x 8.1% 18.7%


Defense Electronics / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 YearAMETEK, Inc. $51.10 96.7% $11,826.2 $13,535.1 13.3 x 4.5% 11.4% 3.5 x 4.5% 10.9%Chemring Group plc 2.41 98.0 673.8 783.9 9.2 -17.5 -3.5 1.3 -12.2 3.6Comtech Telecommunications Corp. 10.73 42.8 252.4 446.5 9.7 -5.6 NM 0.9 -5.6 73.5Crane Co. 72.04 91.3 4,225.6 4,461.2 9.6 -3.0 36.9 1.6 -2.7 39.6Ducommun Incorporated 29.63 94.2 331.1 498.2 10.3 10.0 28.0 0.9 10.0 50.3Elbit Systems Ltd. 109.86 99.3 4,696.0 5,074.6 12.2 5.8 13.6 1.6 4.5 23.5Harris Corporation 102.71 95.5 12,764.5 16,967.5 10.1 0.2 -20.1 2.3 0.2 -15.5Héroux-Devtek Inc. 11.10 90.2 400.6 500.0 10.6 -1.2 -5.4 1.6 -1.2 8.0Kratos Defense & Security Solutions, Inc. 8.24 97.0 594.9 1,019.4 NM NA NA 1.5 6.3 NMMeggitt PLC 5.25 86.1 4,072.6 5,677.0 16.5 -6.5 67.3 2.6 -6.5 21.1Mercury Systems, Inc. 33.72 95.7 1,617.4 1,761.9 NM NA NA 5.2 15.7 NMMoog Inc. 65.87 90.2 2,360.1 3,035.4 9.2 -2.4 18.6 1.2 -1.3 28.1OSI Systems, Inc. 74.67 91.6 1,423.5 1,641.7 14.9 -8.5 NM 1.8 -7.0 49.0Teledyne Technologies Incorporated 122.87 95.0 4,293.2 4,806.7 13.6 -0.1 47.2 2.2 -0.1 44.9Ultra Electronics Holdings plc 23.21 90.1 1,630.0 2,038.9 12.9 -3.9 1.5 2.1 -3.9 1.6ViaSat, Inc. 64.91 79.0 3,697.3 4,712.1 18.5 -1.6 28.6 3.2 -1.6 17.8Woodward, Inc. 69.64 97.5 4,298.5 4,937.5 14.8 -0.3 22.4 2.4 0.7 31.8

Median 94.2% $2,360.1 $3,035.4 12.2 x 5.8% 13.6% 1.8 x -7.0% 21.2%Mean 90.0% $3,479.9 $4,229.3 12.4 x -2.3% 19.8% 2.1 x 1.0% 28.6%


Homeland Security Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 YearAnalogic Corporation 77.65 81.0 967.2 825.2 14.2 -7.4 14.7 1.6 -7.4 9.2Elbit Systems Ltd. 109.86 99.3 4,696.0 5,074.6 12.2 5.8 13.6 1.6 4.5 23.5MSA Safety Incorporated 71.35 95.8 2,682.1 3,053.7 14.9 2.6 48.9 2.6 2.6 64.4OSI Systems, Inc. 74.67 91.6 1,423.5 1,641.7 14.9 -8.5 NM 1.8 -7.0 49.0American Outdoor Brands Corporation 21.30 68.3 1,199.9 1,320.6 5.1 0.9 -42.4 1.5 0.9 -30.1Smiths Group plc 18.86 97.2 7,459.2 8,705.8 13.2 5.1 43.7 2.3 5.1 50.0

Median 93.7% $2,052.8 $2,347.7 13.7 x 1.1% 42.7% 1.7 x -7.2% 13.0%Mean 88.8% $3,071.3 $3,436.9 12.4 x -1.1% 26.6% 1.9 x 0.1% 23.6%

Total Defense Median 93.5% $4,295.9 $4,829.3 11.9 x 3.2% 16.6% 1.6 x -2.8% 12.4%Total Defense Mean 90.2% $12,163.7 $13,426.0 11.8 x -1.3% 17.6% 1.8 x 2.5% 23.0%


SECTION 3: M&A TRANSACTIONS



Aerospace, Defense & Government ServicesM&A Transactions with Disclosed Values - LTM as of January 2017

Continued on Next Page

1/30/2017 1/27/2017 Meyer Tool, Inc. AMK Welding, Inc. Aerospace $6 NA NA

1/27/2017 Pending Veritas Capital Harris Corporation, Government IT Services Business

Aerospace $690 0.7 x NA

1/26/2017 1/26/2017 Dunes Point Capital, LLC Power Distribution, Inc. Defense $204 1.8 x NA

1/25/2017 Pending Wipro Limited InfoSERVER S.A. Defense $9 NA NA

1/19/2017 Pending Safran SA Zodiac Aerospace Aerospace $9,812 1.8 x 26.0 x

1/12/2017 Pending CBS 247 Inc. Scout Media, Inc. Defense $10 NA NA

1/9/2017 1/9/2017 Halma plc FluxData, Inc. Defense $28 5.3 x NA

1/9/2017 1/6/2017 Research Triangle Institute International Development Services Group Defense $24 NA NA

12/31/2016 Pending SIIC Aerospace Galaxy Energy Bayan Nur Nongken Shenzhou Photovoltaic Electric Power Co., Ltd.

Aerospace $17 NA NA

12/22/2016 Pending Founders Advantage Capital Corp.

Impact Radio Accessories Inc. Defense $17 NA NA

12/19/2016 Pending Sioen Industries NV Verseidag Ballistic Protection Oy Defense $19 NA NA

12/18/2016 Pending Viva Energy Australia Ltd. Shell Aviation Australia Pty Ltd Aerospace $250 0.3 x 3.7 x

12/16/2016 Pending Harmonic Drive Systems Inc. Harmonic Drive AG Defense $435 NA NA

12/15/2016 12/29/2016 Troax Inc. Folding Guard Corporation Defense $28 1.4 x NA

12/14/2016 2/1/2017 Corporate Travel Management Limited

Redfern Travel Ltd. Government Services

$66 NA NA

12/14/2016 Pending Mytilineos Holdings S.A. Metka Industrial-Construction S.A. Defense $171 NA 1.6 x

12/12/2016 1/18/2017 Electra Ltd Megason LTD. Government Services

$38 NA NA

12/9/2016 12/9/2016 Ideagen PLC IPI Solutions Ltd. Defense $7 3.3 x 16.5 x

12/7/2016 1/4/2017 Curtiss-Wright Controls Defense Solutions

Teletronics Technology Corporation Aerospace $233 NA NA

12/7/2016 Pending Vista Equity Partners Fidelity National Information Services Inc, SunGard Public Sector and Education

Government Services

$850 NA NA

12/6/2016 Pending AVIC Electromechanical Systems Co., Ltd.

Guizhou Fenglei Aviation Armament Co., Ltd.


xx xx xx xxx EV / LTM

Announced Closed Buyer Target Target Sector EV Rev EBITDA



Aerospace, Defense & Government ServicesM&A Transactions with Disclosed Values - LTM as of January 2017 (Continued)


12/6/2016 Pending AVIC Electromechanical Systems Co., Ltd.

Guizhou Fengyang Hydraulic Limited Co., Ltd.


12/2/2016 Pending Accipiter Investments Limited CK Capital Limited Aerospace $973 NA NA

12/1/2016 Pending Maersk Line A/S Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft KG

Aerospace $4,996 0.8 x NA

11/30/2016 11/30/2016 FLIR Systems, Inc. Prox Dynamics AS Defense $134 NA NA

11/29/2016 Pending Zhonghangheibao Co.,Ltd AVIC Shenyang Aircraft Corporation Aerospace $1,060 0.5 x NA

11/29/2016 1/24/2017 Booz Allen Hamilton Inc. eGov Holdings, Inc. Government Services

$250 NA NA

11/28/2016 1/24/2017 1096777 B.C. Ltd. IWG Technologies Inc. Aerospace $10 1.3 x 5.8 x

11/23/2016 Pending SkyNet Group Limited Engineering Services Inc. Defense $13 NA NA

11/22/2016 Pending Daiichi Kasei Co.,Ltd. Ultrafabrics LLC Aerospace $150 NA NA

11/17/2016 12/14/2016 Hebei Changzheng Automobile Manufacturing Co., Ltd.

Shanghai Aviation Special Vehicle Manufacturing Co., Ltd.

Aerospace $5 NA NA

11/16/2016 Pending Chengdu Aerospace Superalloy Technology Co., Ltd.

Gardner Group Limited Aerospace $406 2.2 x NA

11/15/2016 11/15/2016 GE Digital LLC Bit Stew Systems Inc. Aerospace $153 NA NA

11/14/2016 11/14/2016 Infradata B.V. Nomios SAS Aerospace $54 1.6 x NA

11/10/2016 12/22/2016 Med-Eng Holdings ULC Pacific Safety Products Inc. Defense $12 0.8 x 26.5 x

11/10/2016 1/3/2017 Acasta Enterprises Inc. Stellwagen Finance Company Limited Defense $236 NA NA

11/8/2016 1/3/2017 Ontic Engineering and Manufacturing, Inc.

GE Aviation, Avionics business Aerospace $62 NA NA

11/2/2016 11/30/2016 EQT Partners AB CHEP Aerospace Solutions Aerospace $130 NA NA

11/2/2016 12/2/2016 Huntington Ingalls Industries, Inc. Camber Corporation Defense $380 1.0 x 8.6 x

11/1/2016 11/1/2016 Union Electric Steel Corporation ASW Steel Inc. Aerospace $13 NA NA

10/23/2016 Pending Rockwell Collins, Inc. B/E Aerospace, Inc. Aerospace $8,228 2.9 x 13.6 x

10/22/2016 Pending Lingyun Industrial Corporation Limited

OLinkStar Co., Ltd. Aerospace $119 10.5 x NA







10/20/2016 Pending Leonardo - Finmeccanica S.p.a. (nka:Leonardo S.p.a.)

Avio S.p.A. Aerospace $175 NA NA

10/19/2016 Pending Nipco Investments Limited Mobil Oil Nigeria plc Aerospace $487 1.6 x 11.9 x

10/12/2016 Pending Xiamen International Airport Co., Ltd.

Xiamen Iport Group Co., Ltd., Aviation Assets of T4 Station Site

Aerospace $109 NA NA

10/11/2016 11/16/2016 DigitalGlobe, Inc. The Radiant Group, Inc. Defense $140 NA NA

10/10/2016 12/21/2016 CIMIC Group Investments No. 2 Pty Ltd

UGL Limited Defense $470 0.3 x NA

10/6/2016 Pending Avolon Holdings Limited C2 Aviation Capital, Inc. Aerospace $13,356 10.8 x 21.4 x

10/4/2016 Pending Zhejiang Rifa Holding Group Co., Ltd.

Airwork Holdings Limited Aerospace $313 2.6 x 6.3 x

10/3/2016 9/30/2016 SL Montevideo Technology, Inc. ElectroMagnetic Enterprise Aerospace $65 1.2 x NA

10/3/2016 9/30/2016 Lanco International, Inc. Manitex Liftking ULC Defense $14 0.8 x 7.0 x

9/30/2016 9/30/2016 Winchester Electronics Corporation

Tekna Seal, LLC Defense $11 NA NA

9/28/2016 9/28/2016 Piston Automotive, LLC Irvin Automotive Products, Inc. Aerospace $175 0.4 x NA

9/28/2016 1/2/2017 Shinsung Solar Energy Co., Ltd. Shinsung ENG Co. Ltd. Aerospace $22 NA 2.0 x

9/27/2016 9/27/2016 Avanath Capital Management, LLC

339-unit Apartment Property at 32200 Military Road

Defense $73 NA NA

9/26/2016 10/19/2016 Vista Equity Partners III LLC GovDelivery, Inc. Government Services

$153 NA NA

9/26/2016 12/15/2016 Edgenta UEMS Pte Ltd Government Services

$137 2.0 x NA

9/20/2016 9/20/2016 Drone USA, Inc. Howco Distributing Co. Inc. Government Services

$4 NA 2.0 x

9/16/2016 2/1/2017 Menzies Aviation plc Aircraft Service International Group, Inc. Aerospace $202 0.5 x 6.3 x

9/15/2016 Pending Ashok Leyland Limited Hinduja Foundries Limited Defense $220 2.4 x NA

9/15/2016 9/14/2016 Fabrinet Exception EMS Ltd. Defense $13 NA NA

9/12/2016 Pending Renesas Electronics Corporation Intersil Corporation Defense $2,834 5.5 x 30.0 x

9/7/2016 12/21/2016 Groupe ADF SAS LATECOERE Services SAS Defense $67 0.6 x NA







9/5/2016 Pending Guangzhou Haige Communications Group

40% of Iscreat-e Science and 10% of Shaanxi Haitong Antenna and 51% of


8/29/2016 8/26/2016 FARO Technologies, Inc. Laser Projection Technologies, Inc. Aerospace $17 NA NA

8/24/2016 Pending Sotech Smarter Equipment Co., Ltd.

Chengdu Fujiang Machinery Manufacturing Co., Ltd.

Defense $98 10.6 x NA

8/17/2016 8/16/2016 Analog Devices, Inc. Sypris Electronics, LLC, Cyber Security Solutions Business

Defense $42 NA NA

8/17/2016 Pending CBAir Global Táxi Aéreo Ltda. Aerospace $12 NA NA

8/11/2016 Pending Bohai Financial Investment Holding Co., Ltd.

Hong Kong International Aviation Leasing Co., Ltd., Aircraft Leasing Business

Aerospace $34 NA NA

8/8/2016 11/1/2016 Asia Pacific Satellite Communications Inc.

Asia Pacific Aerospace Incorporated Defense $14 NA NA

8/8/2016 8/8/2016 Provincial Aerospace Ltd. CarteNav Solutions Inc. Defense $13 NA NA

8/1/2016 Pending Tianjin Circle Enterprise Management Center

Sichuan Shuangma Cement Co., Ltd Defense $1,301 4.3 x 31.4 x

8/1/2016 8/31/2016 Compass Diversified Holdings LLC

5.11, Inc. Defense $400 1.4 x 10.5 x

7/27/2016 1/29/2016 Hanwha Techwin Co., Ltd. Hanwha Systems Co., Ltd. Defense $508 0.8 x NA

7/25/2016 8/26/2016 Smith & Wesson Holding Corporation

Crimson Trace Corporation Defense $95 2.2 x 5.9 x

7/22/2016 7/22/2016 Jiangsu Bao Li Aviation Equipment Co., Ltd.

Jiangsu Huayu General Aviation Co., Ltd. Aerospace $26 5.6 x NA

7/22/2016 8/16/2016 Guangdong Hongtu Technology Guangdong Baolong Automobile Co., Ltd. Defense $60 5.0 x NA

7/20/2016 8/26/2016 Restore PLC PHS Data Solutions Limited Government Services

$109 1.8 x NA

7/20/2016 7/21/2016 JSC UFA Engine Industrial Association

JSC" NPP "Motor" Defense $19 NA NA

7/19/2016 7/18/2016 Air T, Inc. Contrail Aviation Support, Inc. Aerospace $10 NA NA

7/18/2016 8/1/2016 Battenfeld Technologies, Inc. Taylor Brands, LLC Defense $85 2.2 x NA

7/11/2016 7/11/2016 Gooch & Housego plc Kent Periscopes Ltd. Defense $12 NA NA

7/10/2016 Pending Tamda Ltd. Operations & Data Integrity Ltd. Government Services

$9 NA NA

7/10/2016 Pending Ontario Steel Investment Limited Essar Steel Algoma Inc. Defense $903 NA NA







7/5/2016 Pending Empresaria Group plc Rishworth Aviation Limited Aerospace $12 NA NA

7/5/2016 7/5/2016 Nice Group USA Inc. HySecurity Inc. Government Services

$27 1.2 x 10.8 x

7/4/2016 7/8/2016 Animoca Brands Corporation Limited

TicBits Ltd Defense $5 4.1 x NA

7/4/2016 7/5/2016 Ennoconn Corporation American Industrial Systems, Inc. Defense $8 NA NA

7/1/2016 7/1/2016 Gama FlyerTech Limited and Aerstream Limited Aerospace $5 2.0 x 5.1 x

6/30/2016 7/22/2016 Forest Fuels Holdings Limited Midlands Wood Fuel Limited Government Services

$3 0.7 x NA

6/28/2016 6/28/2016 FLIR Systems, Inc. Armasight Inc. Defense $41 NA NA

6/21/2016 6/21/2016 Capita plc Trustmarque Solutions Limited Government Services

$84 NA 7.8 x

6/21/2016 9/9/2016 OSI Systems, Inc. American Science & Engineering Inc. Defense $183 1.8 x NA

6/20/2016 8/4/2016 RSP Architects Planners & Engineers

Squire Mech Pte Ltd Government Services

$15 NA NA

6/17/2016 8/15/2016 Hanover Investors Management LLP

Hydro International plc Defense $37 0.7 x 9.3 x

6/15/2016 7/6/2016 Daily Internet plc System Professional Ltd. Government Services

$7 1.0 x 5.4 x

6/12/2016 12/22/2016 DeTai New Energy Group Limited

Emission Particle Solution Sweden AB Government Services

$29 NA NA

6/10/2016 6/6/2016 Carlisle Interconnect Technologies Inc.

Micro-Coax, Inc. Defense $96 2.1 x NA

6/9/2016 9/15/2016 Eco Grandeur Sdn Bhd Eco Ardence Sdn Bhd Defense $150 NA NA

6/7/2016 Pending Tongding Interconnection Information Co., Ltd.

Byzoro Network Ltd. Defense $156 11.7 x NA

6/3/2016 6/3/2016 Hexpol AB Berwin Group Limited Aerospace $36 NA NA

5/31/2016 8/10/2016 Platinum Equity, LLC Electro Rent Corporation Defense $352 2.0 x 36.1 x

5/31/2016 7/22/2016 United Flexible, Inc. Kreisler Manufacturing Corp. Defense $28 0.8 x 7.6 x

5/24/2016 6/23/2016 TransDigm Inc. ILC Industries, LLC Defense $1,000 NA NA

5/23/2016 7/1/2016 KBR Holdings, LLC KBRwyle Defense $600 NA NA







5/20/2016 Pending Masimong Technologies Tellumat Aerospace $23 0.6 x NA

5/18/2016 6/21/2016 Jiangxi Huawu Brake Co.,Ltd. Sichuan Ande Technology Co., Ltd. Defense $46 9.2 x NA

5/17/2016 5/17/2016 KLX Inc. Herndon Aerospace & Defense Company Defense $222 1.7 x 10.9 x

5/16/2016 7/1/2016 Magellan Healthcare, Inc. Armed Forces Services Corporation Defense $128 0.9 x NA

5/16/2016 Pending Chongqing Zaisheng Technology Co., Ltd.

Chongqing Paper Industry Research and Design Institute Co., Ltd.

Defense $16 NA NA

5/9/2016 8/15/2016 TOTAL S.A. Saft Groupe S.A. Defense $1,193 1.4 x 7.1 x

5/9/2016 10/24/2016 Swift Haulage Sdn Bhd Swift Integrated Logistics Sdn Bhd Defense $89 NA NA

5/6/2016 Pending Transtema Group AB WinCore AB Government Services

$27 NA NA

5/4/2016 5/27/2016 Silverfleet Capital Partners Sigma Precision Components Ltd Aerospace $94 1.8 x NA

5/4/2016 5/4/2016 DCC Energi Danmark A/S Dansk Fuels A/S Aerospace $300 NA NA

4/28/2016 5/11/2016 POET Technologies Inc. DenseLight Semiconductors Pte Ltd Defense $15 5.7 x NA

4/19/2016 4/15/2016 WABCO Holdings Inc. Laydon Composites Ltd. Aerospace $31 1.6 x NA

4/15/2016 Pending CR International Airport SL CR Aeropuertos S.L. Aerospace $63 NA NA

4/11/2016 4/22/2016 REV Group, Inc. Kovatch Mobile Equipment Corp. Defense $30 NA NA

4/7/2016 Pending Yungjin Pharm. Co., Ltd. KT&G Life Sciences Corp. Defense $57 NA NA

4/4/2016 12/14/2016 Alaska Air Group, Inc. Virgin America Inc. Aerospace $2,432 1.6 x 11.5 x

3/30/2016 5/31/2016 Hanwha Techwin Co., Ltd. Doosan DST Co., Ltd Defense $609 1.0 x NA

3/23/2016 Pending DCC plc Statoil Fuel & Retail A/S., Danish Oil Distribution and Retail Assets

Aerospace $45 NA NA

3/23/2016 5/2/2016 Mercury Systems, Inc. Microsemi Corp. - RF Integrated Solutions Defense $300 3.0 x NA

3/23/2016 2/29/2016 Liaoyang Zhongwang Superior Aluminium Fabrication Company

Tianjin Zhongwang Aluminium Co.,LTD. Aerospace $3,075 NA NA

3/21/2016 3/21/2016 FTG Aerospace Airco Industries, Inc. Defense $3 0.4 x NA







3/21/2016 3/21/2016 Maped SAS Heller Joustra S.A. Aerospace $4 0.6 x NA

3/18/2016 Pending KKR & Co. L.P. Airbus Group SE, Defence Electronics Business

Defense $1,241 1.1 x NA

3/17/2016 6/30/2016 LORD Corporation Fly by Wire Systems France S.A.S. Aerospace $44 1.1 x NA

3/16/2016 3/16/2016 APFT Aviation Sdn. Bhd. Asia Pacific Flight Training Sdn Bhd Aerospace $6 NA NA

3/14/2016 3/14/2016 Tetra Tech, Inc. INDUS Corporation Defense $21 NA NA

3/14/2016 Pending Zee Entertainment Enterprises Limited

Fly-By-Wire International Private Limited Aerospace $9 NA NA

3/14/2016 3/15/2016 Prophet Equity LLC Total Plastics, Inc. Defense $55 NA NA

3/13/2016 3/11/2016 CTS Corporation CTG Advanced Materials, LLC Defense $73 NA NA

3/4/2016 3/4/2016 Koltsovo Airport Public Stock Company

Kurumoch International Airport Public Stock Company

Aerospace $69 NA NA

3/3/2016 7/7/2016 Betafence NV HESCO Bastion Ltd Defense $340 7.7 x NA

2/29/2016 4/8/2016 Albany International Corp. Albany Aerostructures Composites LLC Aerospace $210 2.7 x NA

2/29/2016 3/29/2016 Apollo Investment Fund Plc Telcon Co., Ltd. Defense $43 1.8 x NA

2/29/2016 4/1/2016 TXT Next SpA PACE Aerospace Engineering and Information Technology GmbH

Aerospace $10 1.2 x 11.2 x

2/26/2016 3/31/2016 BWX Limited Lightning Brokers Pty Ltd Defense $8 NA NA

2/26/2016 3/10/2016 Ontario Teachers' Pension Plan London City Airport Ltd. Aerospace $2,800 NA NA

2/25/2016 3/25/2016 General Atomics Corp. Miltec Corporation Aerospace $15 0.5 x NA

2/25/2016 Pending China Great Wall Computer Shenzhen Co., Ltd.

Wuhan Zhongyuan Electronics Group Co., Ltd.

Defense $344 0.7 x NA

2/24/2016 3/15/2016 Quantech Services, Inc. The KEYW Corporation, Systems Engineering and Technical Assistance

Defense $12 NA NA

2/23/2016 4/29/2016 MKS Instruments, Inc. Newport Corp. Defense $1,003 1.7 x 13.0 x

2/16/2016 7/5/2016 SJ Aviation Capital Pte. Ltd. Keystone Holdings Aerospace $21 NA NA

2/11/2016 11/1/2016 World Fuel Services Corporation Exxon Mobil Corporation, Aviation Fueling Operations at 83 International Airport

Aerospace $260 NA NA







2/11/2016 5/13/2016 Eurazeo PME Orolia SA Defense $115 1.0 x 8.0 x

2/9/2016 4/2/2016 Keva Flavours Pvt. Ltd. Hi-Tech Technologies India Private Limited Defense $4 1.6 x NA

2/5/2016 3/16/2016 IDEX Corporation Akron Brass Company Defense $224 1.9 x 8.8 x

2/5/2016 4/12/2016 Hubei Huachangda Intelligent Equipment Co.,Ltd.

Xi'an Long Technology & Development Co., Ltd.

Defense $14 NA NA

2/4/2016 4/4/2016 Arlington Capital Partners Endeavor Robotics Defense $45 NA NA

Aerospace Median 1.3 x 8.8 x

Aerospace Mean 2.1 x 10.4 x

Defense Median 1.8 x 9.3 x

Defense Mean 2.8 x 14.1 x

Government Services Median 1.2 x 6.6 x

Government Services Mean 1.3 x 6.5 x




SECTION 4: RECENT CONTRACTS



Aerospace, Defense & Government ServicesTop 50 Signed Contracts – January 2017

Date Signed Contractor Name Funding Agency Value ($mm) Description of Services1/19/2017 Sig Sauer Inc. Dept of The Army $580.2 Modular Handgun System Including Handgun,

Accessories and Ammunition

1/27/2017 General Atomics Dept of The Navy $532.6 Manufacture, Assembly, Inspection, Test and Checkout of The Electromagnetic Aircraft Launch

1/9/2017 Aai Corp. U.S. Special Ops Command $475.0 Unmanned Aircraft Systems Intelligence, Surveillance, and Reconnaissance Services

1/6/2017 Harris Corp. Defense Logistics Agency $403.3 Spare Parts Supporting Various Tactical Radio Systems

1/26/2017 Battelle Energy Alliance Limited Liability Company Department of Energy $256.5 Operation of Government-Owned Contractor-Operated R&D Facilities

1/18/2017 Ost Inc. Dept of The Army $248.0 Systems Engineering and Technical Assistance Support Services

1/26/2017 Merck Sharp & Dohme Corp. Centers For Disease Control and Prevention

$240.0 Drugs and Biologicals

1/27/2017 Pfizer Inc. Centers For Disease Control and Prevention


1/19/2017 Bae Systems, Ordnance Systems Inc. Dept of The Army $177.8 Construction and Commissioning of The New Nitrocellulose Facility At The Radford Army

1/11/2017 The Regents of The University of California (1741)

Department of Energy $164.3 Operation of Government-Owned Contractor-Operated R&D Facilities

1/17/2017 Northrop Grumman Dept of The Air Force $140.0 Battle Field Airborne Communication Node Payload, Operations and Suppor

1/25/2017 Aero Turbine Inc. Dept of The Air Force $128.8 Overhaul Services of J85-Ge-5/-21 Engine Components

1/11/2017 Uchicago Argonne, Llc Department of Energy $121.8 Operation of Government-Owned Contractor-Operated R&D Facilities

1/25/2017 Gulfstream Aerospace Corp. Dept of The Air Force $115.7 Contractor Logistics Support

1/12/2017 Savannah River Nuclear Solutions, Llc Department of Energy $113.8 Operation of Other Industrial Buildings

1/27/2017 Glaxosmithkline Llc Centers For Disease Control and Prevention


1/19/2017 Advanced Technology International Dept of The Navy $99.0 Navy Manufacturing Technology (Mantech) Composites Manufacturing Center of Excellence

1/10/2017 Weeks Marine, Inc. Dept of The Army $92.0 Beach Fill, Initial Construction, Manasquan Inlet To Barnegat Inlet, Ocean County, New Jersey

1/27/2017 Olin Corp. Dept of The Army $90.9 Small Caliber Ammunition Cartridges

1/25/2017 Vectrus Systems Corp. Dept of The Army $88.8 Army Corps of Engineers Information Management and Information Technology Enterprise Services

1/18/2017 Great Lakes Dredge And Dock Company Llc Dept of The Army $88.5 Mississippi Comprehensive Barrier Island Restoration, Ship Island Phase One

1/4/2017 Sandia Corp Department of Energy $84.0 Operation of Government-Owned Contractor-Operated R&D Facilities

1/5/2017 Ch2M Hill Plateau Remediation Company Department of Energy $82.9 Maintenance, Repair Or Alteration of Waste Treatment and Storage Facilities

1/10/2017 California Institute of Technology National Aeronautics and Space Administration

$76.4 R&D- Space: Science/Applications (Applied Research/Exploratory Development)

1/6/2017 Bae Systems Norfolk Ship Repair Dept of The Navy $75.2 Uss San Antonio (Lpd 17) Fiscal 2017 Docking Phased Maintenance Availability (Dmpa)

1/9/2017 Insitu Inc. Dept of The Navy $70.8 Procure Six Full Rate Production Lot I Rq-21A Blackjack Unmanned Aircraft Systems

1/10/2017 Bae Systems Information And Electronic Integration Inc.

Dept of The Air Force $67.7 Radio Frequency Countermeasures System Design, Integration and Testing

1/17/2017 Corrections Corporation of America U.S. Marshals Service $62.3 Support- Professional: Other

1/26/2017 Sanofi Pasteur Inc. Centers For Disease Control and Prevention


1/11/2017 Fluor Federal Petroleum Operations, Llc Department of Energy $61.0 Support- Management: Other

1/4/2017 General Atomics Aeronautical Systems Inc. Dept of The Air Force $56.7 Spain Mq-9 Exportable Block 5 Procurement Program



Aerospace, Defense & Government ServicesTop 50 Signed Contracts – January 2017 (Continued)


Date Signed Contractor Name Funding Agency Value ($mm) Description of Services1/25/2017 Raytheon Co. Dept of The Navy $56.4 Repair of The Advanced Targeting Forward Looking

Infrared System1/25/2017 Triple Canopy, Inc. Department of State $54.0 Support- Professional: Physical Security and Badging

1/19/2017 Bae Systems Southeast Shipyard Mayport Llc Dept of The Navy $51.4 Uss Roosevelt (Ddg 80) Fiscal 2017 Depot Maintenance Period Availability

1/18/2017 Space Exploration Technologies Corp. National Aeronautics and Space Administration

$50.5 Transportation/Travel/Relocation- Transportation: Space Transportation/Launch

1/19/2017 Mission Support Alliance, Llc Department of Energy $50.2 Operation of Restoration of Real Property (Public Or Private). All Actions Necessary To Restore,

1/24/2017 Sierra Nevada Corporation National Aeronautics and Space Administration


1/25/2017 Alliance For Sustainable Energy, Llc Department of Energy $49.0 Operation of Government-Owned Contractor-Operated R&D Facilities

1/23/2017 Alliant Tech Systems Operations Llc Dept of The Army $45.6 120 Millimeter Advanced Multi-Purpose, High Explosive Multi-Purpose With Tracer Cartridges

1/3/2017 Northrop Grumman Technical Services Dept of The Air Force $45.1 10 Engine Overhauls In Support of The Kc-10 Program

1/9/2017 Inter-Con Security Systems, Inc. Department of State $41.0 Support- Professional: Physical Security and Badging

1/4/2017 Andromeda Systems Inc. Dept of The Navy $40.6 Support of The Fleet Readiness Center Southeast

1/13/2017 Qtc Medical Services, Inc. Department of Veterans Affairs $40.0 Medical- Evaluation/Screening

1/27/2017 Abt Associates Inc Agency For International Development

$39.7 Support- Professional: Other

1/6/2017 Ut Battelle Limited Liability Company Department of Energy $39.3 Operation of Government-Owned Contractor-Operated R&D Facilities

1/17/2017 Leidos Inc. Dept of The Air Force $38.0 High Power Electromagnetic Source Research and Development

1/19/2017 Washington River Protection Solutions Llc Department of Energy $37.2 Operation of Restoration of Real Property (Public Or Private). All Actions Necessary To Restore,

1/20/2017 Dyncorp International Llc Department of State $37.2 R&D- Defense Other: Ammunition (Operational Systems Development)

1/13/2017 Veterans Evaluation Services, Inc. Department of Veterans Affairs $37.0 Medical- Evaluation/Screening

1/19/2017 United Launch Services, Llc National Aeronautics and Space Administration


Total Top 50 $5,994.4



Aerospace, Defense & Government ServicesContract Overview by Agency and NAICS Code – January *

Agencies Ranked by Total Contract Value Signed in January

NAICS Code by Total Contract Value Signed in January

* Only includes contracts with value greater than $150,000

Rank Funding Agency Contract Value ($mm) # of Contracts1 Dept of The Army 1,465$ 202 Department of Energy 1,381 1553 Dept of The Navy 951 94 National Aeronautics and Space Administration 911 4715 Centers For Disease Control and Prevention 650 406 Dept of The Air Force 592 77 Department of Veterans Affairs 554 4268 Defense Logistics Agency 403 19 Office of Procurement Operations 382 12810 Department of State 337 17911 Agency For International Development 282 11412 Federal Aviation Administration 217 17413 Federal Acquisition Service 208 13014 United States Mint 200 3115 Centers For Medicare and Medicaid Services 164 4216 National Institutes of Health 160 13517 U.S. Immigration and Customs Enforcement 130 5518 Public Buildings Service 126 13819 Department of Education 112 3220 U.S. Coast Guard 107 110

Total Top 20 by Funding Agency 9,333$ 2,397

Rank NAICS Code Description Contract Value ($mm) # of Contracts1 Computer Systems Design Services 569$ 2942 Pharmaceutical Preparation Manufacturing 525 403 Facilities Support Services 524 1354 Security Guards And Patrol Services 516 1795 All Other Professional, Scientific, And Technical Services 477 1206 Research And Development In The Physical, Engineering, And Life Sciences (Except Biotechnology) 455 2117 Research And Development In The Physical, Engineering, And Life Sciences 356 168 Other Computer Related Services 292 2559 Administrative Management And General Management Consulting Services 264 24710 Engineering Services 251 20311 Offices Of Physicians (Except Mental Health Specialists) 182 2712 Remediation Services 155 3513 Commercial And Institutional Building Construction 151 11014 Guided Missile And Space Vehicle Manufacturing 126 915 Refrigerated Warehousing And Storage 113 216 Jewelry, Watch, Precious Stone, And Precious Metal Merchant Wholesalers 103 1517 Custom Computer Programming Services 94 10018 Other Justice, Public Order, And Safety Activities 75 419 Other Support Activities For Air Transportation 73 2220 Computer Facilities Management Services 70 51

Total Top 20 by NAICS Code Description 5,371$ 2,075


SECTION 5: KEY AEROSPACE & DEFENSE STATS



Aerospace, Defense & Government ServicesKey Aerospace & Defense Stats

RPK – Global (in millions)RPK Growth % by Region

(11/2016 vs 11/2015)

Load Factor – Global (%)RPK Growth % by Region

(LTM 11/2016 vs LTM 11/2015)

Commercial Aerospace Orders

Source: FAA

‐7.0%

‐5.0%

‐3.0%

‐1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

RPK ‐ Global MoM Growth %

2.7%

8.0%

‐1.5%

9.0%

1.0%

‐8.0%

‐6.0%

‐4.0%

‐2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

NorthAmerica

Europe Asia Pacific Central /South

America

Middle East Total

70.0%

72.0%

74.0%

76.0%

78.0%

80.0%

82.0%

84.0%

86.0%

88.0%

90.0%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

RPK ‐ Global Load Factor ‐ Global (%)

‐3.6%

6.2%

2.8%

9.3%

0.9%

‐5.0%

‐3.0%

‐1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

NorthAmerica

Europe Asia Pacific Central /South

America

Middle East Total

LTM as of 12/2016 LTM as of 12/2015 YoY % Change 12/2016 11/2016 10/2016 9/2016 8/2016 7/2016 6/2016 5/2016 4/2016 3/2016 2/2016 1/2016

Narrowbody Unit Orders 1,307 1,574 ‐17.0% 543 25 28 1 119 195 26 190 59 55 4 62

Boeing 700 666 5.1% 282 11 13 55 3 67 5 124 18 60 2 60

737 700 666 5.1% 282 11 13 55 3 67 5 124 18 60 2 60

Airbus 607 908 ‐33.1% 261 14 15 ‐54 116 128 21 66 41 ‐5 2 2

A320 607 908 ‐33.1% 261 14 15 ‐54 116 128 21 66 41 ‐5 2 2

Widebody Unit Orders 271 351 ‐22.8% 68 3 72 ‐4 18 18 7 5 57 13 0 14

Boeing 147 212 ‐30.7% 8 2 72 0 19 6 7 1 16 9 0 7

787 80 99 ‐19.2% 8 2 47 0 0 6 1 0 15 0 0 1

777 23 58 ‐60.3% 0 0 11 0 0 0 0 1 1 4 0 6

767 26 49 ‐46.9% 0 0 0 0 19 0 6 0 0 1 0 0

747 18 6 200.0% 0 0 14 0 0 0 0 0 0 4 0 0

Airbus 124 139 ‐10.8% 60 1 0 ‐4 ‐1 12 0 4 41 4 0 7

A350 41 ‐3 ‐1466.7% 8 0 0 0 0 8 0 4 21 0 0 0

A380 0 2 ‐100.0% 0 0 0 0 0 0 0 0 0 0 0 0

A330 83 140 ‐40.7% 52 1 0 ‐4 ‐1 4 0 0 20 4 0 7



Aerospace, Defense & Government ServicesKey Aerospace & Defense Stats

84%

16%

Domestic International

Global Business Jet Traffic (Flights in Thousands)

12/2016 Global Business Jet Traffic by Type (345K Flights)

Global Business Jet Deliveries2015 Global Business Jet Deliveries

By Market (718 Deliveries)

U.S. Defense Budget

* Base Budget RequestSource: GAMA, Office of the Under Secretary of Defense

345

367

385

373

364360

366372

356

375

342342

‐2%

0%

2%

4%

6%

8%

10%

310

320

330

340

350

360

370

380

390

Flights (in thousands) MoM Growth %

300 316

438

515

667

752784

676

518592

750

887

1,137

1,317

874

767696 672 678

722 718

0

200

400

600

800

1,000

1,200

1,400

60.8%18.0%

9.2%

7.1%4.9%

North America Europe Asia‐Pacific Latin America Middle East & Africa

By Appropriation Title ($ in billions) FY 2016* FY 2017* Dollar Δ % ΔMilitary Personnel 135.3$ 135.3$ -$ 0.0%Operation and Maintenance 197.5 205.9 8.4 4.3%Procurement 110.7 102.6 (8.1) -7.3%RDT&E 68.8 71.4 2.6 3.8%Military Construction/Family Housing 6.9 6.1 (0.8) -11.6%Other 2.5 2.7 0.2 8.0%Total 521.7$ 524.0$ 2.3$ 0.4%

By Military Department ($ in billions) FY 2016* FY 2017* Dollar Δ % ΔArmy 123.3$ 123.0$ (0.3)$ -0.2%Navy 159.3 155.4 (3.9) -2.4%Air Force 145.7 151.1 5.4 3.7%Defense Wide 93.4 94.5 1.1 1.2%Total 521.7$ 524.0$ 2.3$ 0.4%


SECTION 6: ABOUT SCOTT-MACON



Aerospace, Defense & Government ServicesOverview

Michael Papazis has over 15 years of investment banking experience. Prior to joining Scott-Macon, Mr. Papaziswas a Vice President of Aerospace & Defense Investment Banking at Oppenheimer & Co. Before Oppenheimer,Michael was a Senior Associate within the Aerospace & Defense Investment Banking Group at Jefferies & Company.Mr. Papazis began his career as an Analyst at Deutsche Banc Alex Brown in Baltimore, Maryland. Throughout hiscareer, Mr. Papazis has worked on several M&A, equity and debt financing transactions for various Aerospace &Defense clients including Lockheed Martin, Kratos Defense & Security and Essex Corporation.

Mr. Papazis is a graduate of Dartmouth College with a B.A. in Economics and Government, Cum Laude. He alsoholds an M.A. in International Affairs from the Johns Hopkins University School of Advanced International Studies(SAIS).

Michael N. PapazisManaging DirectorAerospace, Defense & Government ServicesScott-Macon, Ltd.Office: (212) 755-8200Fax: (212) [email protected]

Selected Transaction Experience



Aerospace, Defense & Government Services

Scott-Macon, Ltd. is one of the oldest independent investment banks in the United States focused on middle market transactions in the range of $10 million to $500 million. The firm is comprised of senior professionals who have had extensive transaction experience in the areas of mergers and acquisitions, debt and equity financing, valuations and fairness opinions andgeneral corporate financial consulting.

Founded in 1973 by Alfred L. Scott, Scott-Macon has remained unique in its commitment to provide clients with senior level advisors who have had significant investment banking experience as well as, in many cases, direct operating experience. The firm's philosophy of providing advice, ideas and solutions tempered by the perspective of actual operating experience has benefited clients over the firm's long history.

Another cornerstone of Scott-Macon’s operating philosophy is a client-oriented approach to investment banking services, in contrast to today’s transaction-oriented environment. Scott-Macon professionals strive to understand the unique aspects of each client's operations and will not hesitate to counsel against a transaction if it does not appear to be in the long-term best interests of a client. The firm’s ownership by its own management team enables and encourages a truly unbiased and independent perspective; free from the inherent conflicts and cross-selling that can occur when advisory services are integratedinto broader financial services platforms incorporating banking, securities or accounting. The success of Scott-Macon’s client-oriented approach has been validated over the firm’s history by the high percentage of repeat engagements which the firm has experienced from its clients.

About Scott-Macon

Aerospace

OEM

Structures

Components

MRO / Aftermarket

Defense

Defense Electronics

Homeland Security

Defense Systems

C4ISR

Government Services

Intelligence

Civil / Non-Defense

SETA / Engineering

IT Services

Aerospace Defense & Government Services Coverage

About Scott-Macon

Prepared by SCOTT-MACON, LTDOver 40 Years of Senior Level Experience, Attention & Execution in Investment Banking

scott-macon aerospace, defense and government services monthly update (january 2017)

Economy & Finance