AAR Defense Systems & Logistics
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AAR Defense Systems & Logistics



2011 North Carolina Aerospace Suppliers Conference

2011 North Carolina Aerospace Suppliers Conference



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AAR Defense Systems & Logistics AAR Defense Systems & Logistics Presentation Transcript

  • ® AAR Company Overview Presented to: NC Aerospace Suppliers Conference August 24, 20114Q FY2011 1
  • AAR Overview ► Leading provider to commercial aviation and government/defense customers ► Incorporated in 1955 — Only two CEOs in Company’s history ► Track record of consistent profitability ► 16% Sales CAGR over last five years ► 6,400 employees at more than 60 locations, worldwide ► Highly experienced leadership from commercial and military ► Diverse markets, customers and products > 48% Commercial — 52% Government > 85% North America — 15% International > 77% Aftermarket Services — 23% Manufacturing & Integration2
  • AAR Global PresenceAVIATION SUPPLYCHAINAbu Dhabi, UAEAmsterdam, NetherlandsAtlanta, Georgia*Chicago, IllinoisGarden City, New YorkHannover, Germany*London, EnglandManamah, Bahrain*Melbourne, AustraliaParis, FrancePhoenix, Arizona*Rio de Janeiro, BrazilShanghai, ChinaSingapore, Republic of SingaporeTeterboro, New JerseyTokyo, JapanToronto, Canada*Zhuhai, China*GOVERNMENT & GOVERNMENT &DEFENSE SERVICES DEFENSE SERVICESAdelaide, Australia Travis AFB, California*Al Dhafra, UAE* Virginia Beach, Virginia*Afghanistan (6 sites)* Waddington, England*Burkina Faso Warner Robins, Georgia*Cherry Point, North Carolina* Windsor, ConnecticutChicago, Illinois Western Pacific (Guam)Eindhoven, Netherlands*Ft. Worth, Texas* STRUCTURES &Greensboro, North CarolinaHavelock, North Carolina SYSTEMSIndianapolis, Indiana* Cadillac, MichiganJacksonville, Florida* Chicago, IllinoisLake Charles, Louisiana* Clearwater, FloridaMacon, Georgia Cullman, AlabamaMcGuire AFB, New Jersey* Fayetteville, North CarolinaMelbourne, Florida Goldsboro, North Carolina MRO FACILITIESNash, Texas Huntsville, Alabama Auburn, Washington*Ogden, Utah Lebanon, Kentucky Hot Springs, ArkansasOklahoma City, Oklahoma* Melbourne, Florida Indianapolis, IndianaPalm Bay, Florida Memphis, Tennessee Kuala Lumpur, MalaysiaSan Diego, California* Sacramento, California Miami, FloridaScott AFB, Illinois* Williamsburg, Virginia* Oklahoma City, Oklahoma * Co-located with customer facilities
  • Diversified Revenue Stream $1,776M $1,800M $1,600M $1,385M $1,424M $1,400M $1,352M $1,200M $1,061M $1,000M $886M $800M $600M $400M $200M $0M FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Aviation Supply Chain Maintenance, Repair & Overhaul Structures & Systems Government & Defense Services Solid Financial Performance — 35% year-over-year growth.4
  • A Sampling of AAR Customers Airlines OEMs & MROs Cargo Government NATO U.S. DoD U.S. TRANSCOM U.K. MoD5
  • Our People — Recognized for Excellence Forbes Secretary of Defense Boeing Gold Most Trustworthy Performance-Based Performance Companies Logistics Award Excellence Awards FAA Top 100 Diamond Military-Friendly Award Employers AAR has earned a leadership position for its support of both commercial aviation and national priorities.6
  • Total Support for Aerospace & DefenseAviation Supply Chain Maintenance, Repair Supply Chain Management & Overhaul Aircraft & Engine Parts  Aircraft Maintenance/Mods Aircraft Sales and Leasing  Engineering Services Component Repair  Landing Gear, Wheels and Brakes Field ServicesGovernment & Defense Structures & SystemsServices  Mobile Shelters Airlift Support  Containers and Pallets Logistics Services  Machining Services Communications Technologies  Cargo Systems Aircraft Modifications Diverse capabilities for commercial aviation, government and defense.7
  • AAR Facilities in North Carolina• Cargo Systems Goldsboro• Mobility Systems Goldsboro & Fayetteville• Defense Systems Greensboro & Havelock
  • AAR Defense Systems and Logistics (DS&L) - Military Performance Based Logistics ►The AAR Team ● Experienced foundation in commercial / military aviation ● Retired Military aviation logisticians ● Understand O/I/D maintenance/supply functions ● Motivated by Performance Based Logistics (PBL) ►Our product is our Logistics Service ● Quality people are essential ● Mission oriented focus ►We are good at Integration ● Bridging the gap – Commercial / Government support ● Industry / Government Team work9
  • DS&L’s Role within PBL contracts ►AAR provides 3rd Party Logistics (3PL) support services to our OEM customers ● Military logistics background ● Depot / Fleet / ICP / OEM Interfaces ● IT Systems integration - interfaces ● Requisition Response ● Material forecasting ● Warehousing ● Transaction Item Reporting (CAV/SIT) ● Transportation/Freight/local delivery/ITAR ● Expediting10
  • AAR DS&L … and PBL’s ►What we like about PBL’s ● Contractor is incentivized to improve availability/reliability for their systems, not just selling more parts ● Good for the War Fighter ● Good for the Tax Payer ►The ―Headache‖ is the painfully slow process of award ● Original PBL concept was to keep it simple and ―buy the watch‖ - One metric – Availability at a lower cost ● That vision has become blurred, contracts complicated ● Difficult to keep an OEM interested in playing in the sandbox11
  • ®Thank you for your time today.Let us know how we can contribute to yoursuccess.John HannafordRegional Director, Military ProgramsAAR Defense Systems & Logistics 12