Scott-Macon Aerospace & Defense Market Update (January 2018)

SCOTT-MACON, LTD
January 2018
2© Copyright 2018 SCOTT-MACON, LTD.
We are pleased to present you with the January 2018 Edition of
the Scott-Macon Aerospace, Defense and Government Services
monthly newsletter! Our team strives to provide industry
professionals such as yourself with the critical market information
necessary to execute your strategic goals and initiatives. Please
let us know if you would like to discuss any of the emerging
trends presented in this review and how they can potentially
impact 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. Papazis
Managing Director
Aerospace, Defense & Government Services
Office: (212) 755-8200
Fax: (212) 583-9262
mpapazis@scott-macon.com
A note from SCOTT-MACON

Prepared by SCOTT-MACON, LTD.
Table of Contents
Section 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 Comparables
List 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 Transactions
List of relevant transactions with disclosed values
which occurred in the last month segmented by
Aerospace, Defense or Government Services
9
Section 4 Recent Contracts
List of selected major government contracts that
have been awarded in the last month
18
Section 5 Key Aerospace & Defense Stats
Review of key trends in the aerospace and defense
sectors
22
Section 6 About Scott‐Macon
Brief overview on Scott‐Macon and their ADG
investment banking practice
25

SECTION 1: MARKET SNAPSHOT

SCOTT-MACON, LTD
January 2018
Market 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 2018 LTM as of January 2018
87
92
97
102
107
112
117
D
ec-29-2017
D
ec-31-2017
Jan-02-2018
Jan-04-2018
Jan-06-2018
Jan-08-2018
Jan-10-2018
Jan-12-2018
Jan-14-2018
Jan-16-2018
Jan-18-2018
Jan-20-2018
Jan-22-2018
Jan-24-2018
Jan-26-2018
Jan-28-2018
Jan-30-2018
S&P 500 SM Aerospace
SM Government Services SM Defense
 11.2 %
 6.6 %
 15.2 %
 5.5 %
74
94
114
134
154
174
194
Jan-31-2017
F
eb-28-2017
M
ar-31-2017
A
pr-30-2017
M
ay-31-2017
Jun-30-2017
Jul-31-2017
A
ug-31-2017
S
ep-30-2017
O
ct-31-2017
N
ov-30-2017
D
ec-31-2017
Jan-31-2018
S&P 500 SM Aerospace
SM Government Services SM Defense
 47.9 %
 64.7 %
 22.8 %
 14.3 %
8.50x
9.00x
9.50x
10.00x
10.50x
11.00x
11.50x
12.00x
12.50x
13.00x
13.50x
Dec-29-2017
Dec-31-2017
Jan-02-2018
Jan-04-2018
Jan-06-2018
Jan-08-2018
Jan-10-2018
Jan-12-2018
Jan-14-2018
Jan-16-2018
Jan-18-2018
Jan-20-2018
Jan-22-2018
Jan-24-2018
Jan-26-2018
Jan-28-2018
Jan-30-2018
SM Aerospace SM Government Services SM Defense
 -4.2 %
 2.8 %
 0.8 %
7.50x
8.50x
9.50x
10.50x
11.50x
12.50x
13.50x
Jan-31-2017
F
eb-28-2017
M
ar-31-2017
A
pr-30-2017
M
ay-31-2017
Jun-30-2017
Jul-31-2017
A
ug-31-2017
S
ep-30-2017
O
ct-31-2017
N
ov-30-2017
D
ec-31-2017
Jan-31-2018
SM Aerospace SM Government Services SM Defense
 2.7 %
 8.0 %
 11.8 %
26
12
26
20
7
6
59
38
0
10
20
30
40
50
60
70
31-Jan-17 31-Jan-18
NumberofDeals
Aerospace Defense Government Services
 -14.3 %
 -23.1 %
 -53.8 %
 -6.4 %
 -3.6 %
 -25.8 %
310
230
302
291
110
103
722
624
0
100
200
300
400
500
600
700
800
LTM-Jan-17 LTM-Jan-18
NumberofDeals
Aerospace Defense Government Services

SECTION 2: PUBLIC COMPARABLES

SCOTT-MACON, LTD
January 2018
Public Comparables
Aerospace Public Comparables*
Government Services Public Comparables*
% of 52 Market Total Enterprise TEV / % Change TEV / LTM EBITDA TEV / % Change TEV / LTM Rev.
Aerospace OEMs Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Airbus SE $115.06 98.4% $89,114.1 $92,209.0 NM 11.0% NM 1.1 x 11.0% 38.1%
Boeing Company 354.37 98.2 211,055.2 212,237.2 17.5 11.2 29.3 2.3 17.6 NA
Bombardier Inc. 2.83 92.8 6,214.6 15,445.4 NM 5.5 -2.2 1.0 5.5 39.1
Embraer S.A. 6.31 87.0 4,623.3 6,227.2 10.1 0.1 -27.9 1.0 0.1 23.2
Median 95.5% $47,664.3 $53,827.2 13.8 x 6.9% 1.9% 1.1 x 5.5% 30.7%
Mean 94.1% $77,751.8 $81,529.7 13.8 x 6.9% 10.7% 1.3 x 10.3% 58.5%
Aerospace Systems / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AAR Corp. $40.47 91.9% $1,381.4 $1,544.1 13.3 x 2.7% 35.8% 0.8 x 2.7 18.4%
AMETEK, Inc. 76.30 97.6 17,634.2 19,328.3 18.0 4.8 35.9 4.7 4.8 33.3
Astronics Corporation 44.60 90.2 1,252.0 1,414.0 17.8 6.8 49.8 2.3 6.8 24.2
CAE Inc. 18.47 95.9 4,953.2 5,548.2 12.1 -2.5 13.8 2.5 -2.5 9.1
Crane Co. 99.94 97.4 5,931.4 5,968.7 12.0 6.8 25.6 2.1 7.6 32.0
Esterline Technologies Corporation 73.55 71.6 2,186.0 2,665.6 9.0 -1.3 -20.5 1.3 -1.3 -16.1
HEICO Corporation 80.32 94.0 7,566.8 8,407.0 NM 4.6 40.0 5.5 4.6 41.8
Héroux-Devtek Inc. 11.47 89.8 415.0 477.6 10.9 -6.5 2.1 1.5 -6.5 -8.8
Meggitt PLC 6.59 87.6 5,109.8 6,703.5 8.7 -2.9 -47.3 2.3 -2.9 -12.7
Moog Inc. 90.06 95.9 3,225.2 3,791.6 11.7 1.6 27.3 1.5 0.9 19.9
MTU Aero Engines AG 179.50 92.0 9,244.2 9,136.5 11.0 -3.5 29.9 1.4 -3.5 25.4
Textron Inc. 58.67 94.3 15,454.9 18,416.9 12.2 1.8 24.6 1.3 1.8 16.5
TransDigm Group Incorporated 316.91 98.6 16,466.5 27,609.1 16.7 8.6 19.4 7.9 8.6 23.4
Woodward, Inc. 77.52 92.0 4,749.8 5,313.7 15.3 3.2 2.9 2.5 0.6 2.3
Zodiac Aerospace 31.14 88.4 8,721.0 9,775.5 NM 0.4 0.2 1.5 0.4 -9.7
Median 92.0% $5,109.8 $5,968.7 12.1 x 1.1% 10.3% 2.1 x 7.6% 26.2%
Mean 91.8% $6,952.8 $8,406.7 13.0 x 2.1% 9.4% 2.6 x 3.1% 16.3%
Aerospace Structures Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
CPI Aerostructures, Inc. $8.90 88.6% $78.9 $110.9 9.7 x -0.4% NA 1.4 x -0.4% 10.7%
Ducommun Incorporated 29.18 82.0 330.6 549.3 10.9 1.5 6.1 1.0 1.5 11.5
GKN plc 6.01 94.1 10,302.2 11,080.6 7.0 29.3 -2.9 0.8 29.3 -2.9
Hexcel Corporation 68.35 98.7 6,139.6 6,889.4 15.0 7.5 27.7 3.5 8.3 30.4
Kaman Corporation 62.70 98.1 1,744.0 2,122.0 13.1 5.3 17.3 1.2 5.3 24.5
Latécoère S.A. 6.88 92.2 649.1 693.1 NM -3.0 NM 0.8 -3.0 19.6
Magellan Aerospace Corporation 16.66 93.5 969.6 1,048.6 8.4 -2.4 12.7 1.3 -2.4 7.6
Senior plc 3.86 89.6 1,619.1 1,877.1 11.8 3.7 21.2 1.4 3.7 12.9
Spirit AeroSystems Holdings, Inc. 102.36 97.3 11,835.4 12,198.1 16.5 16.7 NA 1.8 16.7 57.4
Triumph Group, Inc. 29.15 83.8 1,447.2 2,845.6 7.8 3.5 NA 0.9 3.5 11.2
Median 92.8% $1,533.2 $1,999.6 10.9 x 1.5% 9.0% 1.3 x 2.8% 19.9%
Mean 91.8% $3,511.6 $3,941.5 11.1 x 6.7% 16.9% 1.4 x 6.0% 20.5%
Total Aerospace Median 92.8% $4,953.2 $5,968.7 11.9 x 2.8% 11.8% 1.4 x -2.4% 18.5%
Total Aerospace Mean 92.1% $15,531.5 $16,952.9 12.4 x 4.0% 10.5% 2.0 x 4.4% 20.2%
Government Services Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Booz Allen Hamilton Holding Corp. $39.18 97.3% $5,712.9 $7,229.9 12.7 x 2.2% 5.2% 1.2 x 2.2% 7.8%
CACI International Inc 140.55 95.4 3,460.5 4,556.0 12.3 2.3 -3.3 1.0 3.7 -5.1
CGI Group Inc. 57.29 97.3 16,258.5 17,547.4 11.8 1.4 8.0 2.0 0.7 5.5
CSRA Inc. 33.28 98.8 5,450.6 8,258.6 8.8 7.1 -33.1 1.7 7.1 2.7
Cyient Limited 10.10 93.8 1,136.7 998.3 12.9 6.6 34.4 1.7 9.6 30.1
Engility Holdings, Inc. 26.16 73.4 963.3 1,910.4 10.1 -4.1 -14.3 1.0 -4.1 -3.4
ICF International, Inc. 53.10 93.9 989.9 1,213.5 10.7 0.9 -6.4 1.0 0.9 -5.2
KEYW Holding Corp. 6.70 63.8 329.7 578.6 NM 7.6 NA 1.5 7.6 -19.4
Leidos Holdings, Inc. 66.60 98.2 10,075.4 12,908.4 12.3 2.4 -37.7 1.3 2.4 -28.9
ManTech International Corp. 52.07 97.7 2,030.4 1,881.7 14.9 4.1 29.5 1.1 4.1 28.5
MAXIMUS, Inc. 68.18 93.8 4,446.9 4,287.0 11.5 -4.8 8.1 1.7 -4.8 14.4
Navigant Consulting, Inc. 20.52 82.4 942.3 1,110.0 8.7 4.8 -9.2 1.2 4.8 -19.0
QinetiQ Group plc 2.92 63.8 1,632.7 1,355.3 5.7 -12.8 -36.3 1.2 -12.8 -28.4
Science Applications International Corp. 76.65 85.3 3,278.0 4,184.0 13.8 0.1 7.6 1.0 0.1 -2.4
Serco Group plc 1.26 59.3 1,371.8 1,637.3 12.0 -8.8 14.4 0.4 -8.8 -31.9
Vectrus, Inc. 30.40 85.4 337.9 348.0 7.9 -1.4 34.9 0.3 -1.4 35.5
VSE Corp. 49.55 82.7 537.0 738.1 9.3 1.7 11.8 0.9 1.7 -10.4
Median 93.8% $1,632.7 $1,881.7 11.7 x -1.5% 4.3% 1.2 x 4.8% 5.1%
Mean 86.0% $3,467.9 $4,161.3 11.0 x 0.3% -2.3% 1.2 x 1.2% -4.3%
Engineering & Construction Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AECOM $39.11 98.0% $6,218.3 $9,478.6 9.9 x 4.0% 9.6 0.5 x 4.0% -3.0%
Fluor Corp. 60.70 97.8 8,490.4 8,253.6 11.4 18.1 27.0 0.4 18.1 1.9
Jacobs Engineering Group Inc. 69.46 96.2 9,813.9 9,336.9 14.7 24.9 39.7 0.9 24.9 48.6
KBR, Inc. 20.34 93.8 2,849.2 2,841.2 16.6 2.6 38.5 0.6 2.6 5.0
Tetra Tech, Inc. 49.70 97.6 2,779.8 3,054.8 13.8 7.2 4.1 1.5 7.2 7.7
Median 97.6% $6,218.3 $8,253.6 13.8 x 17.6% 31.5% 0.6 x 2.6% 5.0%
Mean 96.7% $6,030.3 $6,593.0 13.3 x 10.7% 23.5% 0.8 x 10.7% 12.1%
Total Government Services Median 93.8% $2,814.5 $2,948.0 11.8 x 0.8% 8.0% 1.1 x 17.3% 0.8%
Total Government Services Mean 88.4% $4,050.3 $4,714.0 11.5 x 2.9% 3.6% 1.1 x 2.7% -1.9%
* As of Wednesday, January 31, 2018

SCOTT-MACON, LTD
January 2018
Public Comparables (Continued)
Defense Public Comparables*
Defense Primes Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
BAE Systems plc $8.44 87.0% $26,865.2 $29,311.0 10.3 x 3.4% -12.3% 1.1 x 3.4% -6.8%
Boeing Company 354.37 98.2 211,055.2 212,237.2 17.5 11.2 29.3 2.3 17.6 NA
General Dynamics Corporation 222.48 96.9 66,053.3 67,052.3 14.5 13.7 22.8 2.2 7.2 20.5
Leonardo S.p.a. 12.09 60.3 6,945.2 12,197.1 5.7 -1.2 -12.1 0.8 -1.2 -11.0
Lockheed Martin Corporation 354.85 99.0 101,747.6 113,223.6 15.9 -0.2 26.1 2.2 6.5 22.8
Northrop Grumman Corporation 340.53 98.9 59,282.0 63,323.0 16.8 9.3 37.2 2.5 7.0 34.8
Raytheon Company 208.94 98.2 60,401.8 62,563.8 16.2 5.4 35.8 2.5 6.5 32.9
Thales S.A. 112.40 90.0 23,819.0 21,288.2 9.7 0.6 -9.5 1.1 0.6 -4.8
Median 97.5% $59,841.9 $62,943.4 15.2 x 8.3% 28.2% 2.2 x 10.9% 46.5%
Mean 91.1% $69,521.2 $72,649.5 13.3 x 6.0% 17.0% 1.8 x 7.1% 25.7%
Defense Systems Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Aerojet Rocketdyne Holdings, Inc. $27.50 75.9% $2,065.3 $2,291.4 11.6 x -10.8% 2.1% 1.8 x 28.8% 74.1%
AeroVironment, Inc. $51.36 87.1% $1,205.8 $978.0 NM -10.3% NA 1.2 x -67.6% -27.8
Cobham plc 1.86 87.0 4,417.1 5,073.3 NM NM NM 1.2 -30.1 -27.0
Cubic Corporation 58.05 89.4 1,579.4 1,774.0 NM NM NM 4.0 NM NM
Curtiss-Wright Corporation 130.66 97.2 5,765.9 6,298.6 14.5 6.6 21.4 4.0 49.7 74.7
FLIR Systems, Inc. 51.21 96.8 7,096.4 7,079.8 18.8 9.9 43.2 1.6 -56.7 -45.3
Huntington Ingalls Industries, Inc. 237.54 93.7 10,751.4 11,534.4 10.5 0.7 13.8 1.4 -8.6 7.6
Kongsberg Gruppen ASA 20.39 95.7 2,446.7 2,709.5 15.8 3.6 -5.3 2.0 47.3 73.8
L3 Technologies, Inc. 212.46 97.1 16,602.1 19,338.1 14.8 11.8 17.7 1.9 13.8 30.6
Orbital ATK, Inc. 131.90 98.0 7,608.8 8,910.8 13.6 0.3 27.8 3.9 NM NM
Rockwell Collins, Inc. 138.49 99.4 22,704.5 29,504.5 18.0 -7.3 60.3 1.8 -58.1 -32.7
Safran SA 113.12 98.5 47,028.6 46,080.7 9.9 6.0 40.4 2.2 6.0 49.1
Textron Inc. 58.67 94.3 15,454.9 18,416.9 12.2 1.8 24.6 1.3 1.8 16.5
Median 95.7% $7,096.4 $7,079.8 14.0 x 4.6% 24.6% 1.8 x 3.1% 20.9%
Mean 93.1% $11,132.8 $12,306.9 14.0 x 2.0% 24.9% 2.2 x -0.6% 33.6%
Defense Electronics / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AMETEK, Inc. $76.30 97.6% $17,634.2 $19,328.3 18.0 x 4.8% 35.9% 4.7 x 4.8% 33.3%
Chemring Group plc 2.72 92.1 761.7 875.3 8.4 9.6 -9.4 1.1 -1.6 -13.9
Comtech Telecommunications Corp. 21.63 90.5 510.6 662.8 10.7 -1.7 10.7 1.2 -1.7 33.6
Crane Co. 99.94 97.4 5,931.4 5,968.7 12.0 6.8 25.6 2.1 7.6 32.0
Ducommun Incorporated 29.18 82.0 330.6 549.3 10.9 1.5 6.1 1.0 1.5 11.5
Elbit Systems Ltd. 151.35 96.1 6,470.5 6,958.1 16.0 10.2 31.4 2.0 8.3 26.6
Harris Corporation 159.38 99.5 18,998.2 22,495.2 16.2 10.1 60.4 3.8 8.2 64.3
Héroux-Devtek Inc. 11.47 89.8 415.0 477.6 10.9 -6.5 2.1 1.5 -6.5 -8.8
Kratos Defense & Security Solutions, Inc. 11.41 81.9 1,178.6 1,309.1 NM 6.9 -64.1 1.8 6.9 16.5
Meggitt PLC 6.59 87.6 5,109.8 6,703.5 8.7 -2.9 -47.3 2.3 -2.9 -12.7
Mercury Systems, Inc. 48.02 87.3 2,316.6 2,284.5 NM -12.8 -16.5 5.1 -10.9 -2.2
Moog Inc. 90.06 95.9 3,225.2 3,791.6 11.7 1.6 27.3 1.5 0.9 19.9
OSI Systems, Inc. 66.08 68.4 1,253.4 1,521.1 9.7 2.2 -34.8 1.5 2.2 -16.8
Teledyne Technologies Incorporated 190.92 94.8 6,765.5 7,878.7 17.3 4.6 27.5 3.2 4.6 46.9
Ultra Electronics Holdings plc 21.67 68.0 1,679.7 2,049.5 11.3 10.6 -12.4 1.8 10.6 -13.8
Viasat, Inc. 75.62 94.2 4,403.9 5,183.5 NM 0.9 45.1 3.3 0.9 3.8
Woodward, Inc. 77.52 92.0 4,749.8 5,313.7 15.3 3.2 2.9 2.5 0.6 2.3
Median 92.0% $3,225.2 $3,791.6 11.5 x 1.0% -5.3% 2.0 x 10.2% 10.3%
Mean 89.1% $4,807.9 $5,491.2 12.6 x 4.1% 2.4% 2.4 x 1.3% 12.0%
Homeland Security Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Analogic Corporation 82.90 92.6 1,035.0 887.6 NM -1.2 48.1 1.9 -1.2 17.3
Elbit Systems Ltd. 151.35 96.1 6,470.5 6,958.1 16.0 10.2 31.4 2.0 8.3 26.6
MSA Safety Incorporated 78.31 90.7 2,978.3 3,346.5 15.5 0.9 4.2 2.9 0.9 11.5
OSI Systems, Inc. 66.08 68.4 1,253.4 1,521.1 9.7 2.2 -34.8 1.5 2.2 -16.8
American Outdoor Brands Corporation 11.93 48.7 645.6 866.7 5.6 -5.4 10.4 1.2 -5.4 -22.6
Smiths Group plc 22.70 94.2 8,985.1 10,379.9 11.4 6.2 -14.0 2.2 6.2 -5.2
Median 91.7% $2,115.9 $2,433.8 11.4 x 6.2% -17.0% 2.0 x 4.4% 13.6%
Mean 81.8% $3,561.3 $3,993.3 11.6 x 3.9% -6.2% 2.0 x 2.5% 2.0%
Total Defense Median 94.0% $5,848.7 $6,501.1 12.2 x -4.2% 2.7% 2.0 x 5.1% 20.7%
Total Defense Mean 89.6% $18,272.7 $19,511.3 13.0 x 3.9% 9.9% 2.2 x 1.7% 18.2%
* As of Wednesday, January 31, 2018

SECTION 3: M&A TRANSACTIONS

SCOTT-MACON, LTD
January 2018
M&A Transactions with Disclosed Values - LTM as of January 2018
Continued on Next Page
xx xx xx xxx EV / LTM
Announced Closed Buyer Target Target Sector EV Rev EBITDA
1/18/2018 Pending Compass Diversified Holdings
LLC
Foam Fabricators, Inc Defense $248 2.0 x 8.3 x
1/17/2018 1/17/2018 Onyx Scientific Limited Pisgah Labs, Inc. Government
Services
$10 NA 8.5 x
1/12/2018 Pending Melrose Industries PLC GKN plc Aerospace $10,238 0.8 x 6.7 x
1/9/2018 1/9/2018 NTC Group, Inc. Tenax Aerospace, LLC Aerospace $220 NA NA
1/3/2018 Pending Guangzhou Hangxin Aviation
Technology Co., Ltd.
Magnetic MRO AS Aerospace $52 NA NA
1/3/2018 Pending UAMCO., Ltd. STX Engine Co., Ltd. Defense $467 1.1 x 21.1 x
1/3/2018 Pending Shanghai Hangrong New Energy
Gansu Shanghang Electrical Maintenance
Co., Ltd.
Aerospace $54 NA NA
1/2/2018 Pending Coolisys Technologies, Inc. Enertec Systems 2001 Ltd. Defense $9 NA NA
12/27/2017 Pending Catea Co., Ltd Pantom Co., Ltd. Aerospace $7 0.4 x NA
12/21/2017 Pending Mercury Systems, Inc. Themis Computer, Inc. Defense $180 NA NA
12/21/2017 12/15/2017 Mistras Group, Inc. West Penn Non-Destructive Testing, LLC Defense $74 NA NA
12/20/2017 Pending EM-Tech.CO., LTD. BSL Co., Ltd. Government
Services
$11 0.0 x 0.2 x
12/18/2017 12/18/2017 Bain Capital Private Equity, LP Trans Maldivian Airways Aerospace $500 4.4 x NA
12/13/2017 Pending China Aviation Planning and
Design Institute Co., Ltd.
China Aviation Industry Renewable Energy
Corporation
Aerospace $90 2.7 x NA
12/13/2017 1/9/2018 Sdiptech AB Aviolinx Communication and Services AB Aerospace $5 2.2 x NA
12/11/2017 12/12/2017 Nanjing Dingkong Electrical and
Mechanical Technology Co., Ltd.
Yangzhou Shuguang Photoelectric Self-
controlled Co., Ltd.
Defense $72 6.9 x NA
12/7/2017 12/7/2017 Suomen Erillisverkot Oy Nordic Cyber Security Oy Defense $6 NA NA
12/6/2017 Pending Kordsa Global Endüstriyel Iplik ve
Kord Bezi Sanayi ve Ticaret A.S.
Fabric Development, Inc. and Textile
Products, Inc.
Aerospace $100 NA NA
12/3/2017 Pending TTM Technologies, Inc. Anaren, Inc. Defense $775 NA NA
11/14/2017 Pending OMERS Private Equity Trescal SA Aerospace $789 NA NA
11/14/2017 Pending Hartenberg Capital Avia Prime S.A. Aerospace $69 NA NA

SCOTT-MACON, LTD
January 2018
M&A Transactions with Disclosed Values - LTM as of January 2018 (Continued)
11/9/2017 Pending Shaanxi Lixin Zhibang Energy
Xi'an Tianhe Civil-Military Integration
Innovative Technology Research Co., Ltd.
Defense $34 NA NA
11/9/2017 12/31/2017 Getac Technology Corporation WHP Workflow Solutions LLC Defense $21 NA NA
11/8/2017 Pending Structural Monitoring Systems Plc Anodyne Electronics Manufacturing Corp. Aerospace $8 NA NA
11/2/2017 11/23/2017 Cirrus Networks Holdings Limited Correct Communications Pty Ltd Government
Services
$4 0.4 x NA
11/2/2017 Pending Jackson Hole Airport Board Jackson Hole Aviation, LLC Aerospace $26 1.0 x NA
10/31/2017 10/30/2017 SNC-Lavalin Group Inc. Data Transfer Solutions LLC Government
Services
$45 NA NA
10/30/2017 Pending AeroCentury Corp. JetFleet Management Corporation Aerospace $5 NA NA
10/30/2017 Pending Ansys Limited LAW Trusted Third Party Services Defense $8 NA NA
10/30/2017 11/24/2017 NPD Co., Ltd. CAP Corporation Aerospace $70 0.9 x 6.1 x
10/27/2017 1/22/2018 MB Aerospace Newton Abbot
Limited
Asian Compressor Technology Services
Company Limited
Aerospace $60 NA NA
10/26/2017 Pending Beijing Huaqing Ruida
Beijing Senfetech Corporation Defense $63 NA NA
10/25/2017 Pending Meditor Energy Limited Substantially All Assets of Intelligent Energy
Holdings Plc
Defense $9 NA NA
10/23/2017 11/29/2017 Family Zone Cyber Safety
Limited
Linewize Services Limited And Linewize
Limited
Defense $13 NA NA
10/23/2017 10/23/2017 GPI SpA Info Line Srl Government
Services
$6 NA NA
10/19/2017 Pending Shanghai KangDa New Materials
Co., Ltd.
Chengdu Bikong Sci-tech Shares Co.,LTD. Defense $72 6.0 x NA
10/18/2017 10/18/2017 Spectris plc The Omnicon Group, Inc. Defense $29 NA NA
10/18/2017 10/18/2017 Gama Aviation Plc Gama Group MENA FZC Aerospace $10 0.4 x NA
10/17/2017 Pending Forever Opensource Co.,Ltd. Intelligent Aviation System Co., Ltd. Aerospace $11 NA NA
10/17/2017 Pending Dnata Aviation Services Ltd dnata Aviation Services GmbH Aerospace $47 NA NA
10/13/2017 Pending Novume Solutions, Inc. NeoSystems Corp. Government
Services
$22 NA NA
10/4/2017 10/4/2017 Materialise NV ACTech GmbH Aerospace $53 1.3 x 5.5 x

SCOTT-MACON, LTD
January 2018
10/2/2017 Pending Héroux-Devtek Inc. Compañía Española de Sistemas
Aeronáuticos SA
Aerospace $164 NA NA
10/1/2017 9/30/2017 Proyectos y Montajes Ingemont
S.A.
Elimco Aerospace, Sociedad Limitada Aerospace $8 NA NA
9/29/2017 9/28/2017 UTIB INVL Technology Deltagon Group Oy Defense $7 2.4 x NA
9/28/2017 11/17/2017 Dassault Systèmes Simulia Corp. Exa Corporation Aerospace $386 5.3 x NA
9/28/2017 Pending Shanghai Hugong Electric Group
Co.,Ltd.
Beijing Aerospace Huayu Technology Co.,
Ltd.
9/27/2017 Pending Zhejiang Science and
Technology Investment Co., Ltd.
Acro Aircraft Seating Ltd. Aerospace $74 1.8 x NA
9/24/2017 Pending Aeronautics Ltd. Chassis Plans, LLC Government
Services
$6 0.4 x NA
9/19/2017 Pending AVIC International Holding Motto Investment Limited Aerospace $308 1.5 x NA
9/18/2017 Pending Northrop Grumman Corporation Orbital ATK, Inc. Aerospace $9,355 2.1 x 15.4 x
9/18/2017 10/2/2017 ManTech International
Corporation
InfoZen, Inc. Government
Services
$180 NA NA
9/13/2017 Pending Shanghai Greattown Industrial
Co., Ltd.
Shanghai Hangdu Property Co., Ltd. Aerospace $41 NA NA
9/11/2017 9/11/2017 Ducommun LaBarge
Technologies, Inc.
Lightning Diversion Systems Inc. Defense $60 NA NA
9/10/2017 1/24/2018 Cyient Defense Services Inc. B&F Design Inc. Defense $6 NA NA
9/4/2017 10/20/2017 H.B. Fuller Company Royal Adhesives & Sealants, LLC Aerospace $1,575 NA NA
9/4/2017 Pending United Technologies Corporation Rockwell Collins, Inc. Aerospace $30,365 5.0 x 22.6 x
8/28/2017 8/28/2017 Forcepoint LLC RedOwl Analytics, Inc. Defense $54 NA NA
8/24/2017 9/19/2017 WABCO Holdings Inc. R. H. Sheppard Co., Inc. Defense $145 1.1 x NA
8/24/2017 11/21/2017 CAE Inc. Asian Aviation Centre of Excellence Sdn Bhd Aerospace $190 NA NA
8/18/2017 9/15/2017 Electronic Technologies Group,
Inc.
Aeroantenna Technology, Inc. Defense $337 NA NA
8/16/2017 8/23/2017 Transaction Solutions
International Limited
Decipher Works Pty Ltd Defense $4 1.5 x 5.1 x
8/14/2017 11/27/2017 WSP Global Inc. Opus International Consultants Limited Government
Services
$202 0.6 x 8.0 x

SCOTT-MACON, LTD
January 2018
8/14/2017 Pending TCTM Financial FS LLC Wellman Dynamics Corporation Aerospace $21 NA NA
8/11/2017 9/29/2017 Konekt Limited Mission Providence Pty Ltd Government
Services
$19 0.5 x NA
8/8/2017 9/8/2017 Arsenal Capital Partners Cyalume Technologies Holdings, Inc. Defense $43 1.0 x 5.0 x
8/8/2017 Pending Shanghai Shenhe Xintai
Investment Management Co.,
Shanghai SIM-MAX Technology Co., Ltd. Defense $50 9.5 x NA
8/7/2017 8/7/2017 Carr's Group plc NuVision Engineering, Inc. Government
Services
$20 2.3 x NA
8/2/2017 9/8/2017 Ricardo Defense Systems LLC Control Point Corporation Defense $10 NA NA
7/31/2017 8/2/2017 Carmanah Technologies
Corporation
Vega Industries Ltd. Aerospace $9 NA NA
7/31/2017 Pending Indel B S.p.A. Autoclima Spa Defense $37 1.1 x 8.7 x
7/27/2017 Pending Consolidated Gems, Inc. Attofensive Defense $20 NA NA
7/24/2017 11/6/2017 SpeedCast International Limited UltiSat Inc. Defense $100 1.7 x 11.6 x
7/24/2017 7/24/2017 GENUI GmbH Acrolinx GmbH Aerospace $60 NA NA
7/12/2017 1/29/2016 CPP Investment Board Europe
S.a.r.l.
Shell E&P Ireland Ltd. Aerospace $1,233 NA NA
7/11/2017 Pending Sichuan Zhongguang Lightning
Protection Technologies Co., Ltd.
Shaanxi Huatong Electromechanical
Manufacturing Co., Ltd.
7/7/2017 Pending Ultra Electronics Holdings plc Sparton Corporation Government
Services
$309 0.8 x 14.1 x
7/7/2017 Pending Shenzhen City Qianhai Wanke
Financial Services Company
Lijiang Hua Ou Real Estate Company
Limited
Defense $73 NA NA
7/7/2017 Pending Hancom Safety Inc. Sancheong Co.,Ltd. Defense $228 2.4 x 6.8 x
7/7/2017 7/3/2017 Hanwha Land Systems Co., Ltd. Hanwha Defense Systems Corp. Defense $584 NA NA
7/6/2017 7/6/2017 Itinera Usa Corp. Halmar International, LLC Aerospace $120 0.5 x NA
7/6/2017 7/31/2017 Symantec Corporation Fireglass Defense $225 NA NA
7/6/2017 Pending AECOM Shimmick Construction Company, Inc. Government
Services
$175 0.6 x NA
7/5/2017 7/5/2017 Advanced Energy Industries, Inc. Excelsys Technologies Ltd. Defense $18 1.5 x NA

SCOTT-MACON, LTD
January 2018
7/5/2017 Pending Far East Smarter Energy Co.,Ltd Beijing Jinghangan Airport Engineering Co.,
Ltd.
7/3/2017 8/15/2017 H.I.G. Capital, LLC NCI, Inc. Defense $285 0.9 x 9.6 x
6/20/2017 7/24/2017 Modern Times Group Mtg AB Kongregate, Inc. Defense $55 1.6 x NA
6/18/2017 5/31/2017 Airbus Defence and Space
GmbH
Cassidian SAS Defense $15 NA NA
6/16/2017 7/3/2017 John Bean Technologies
Corporation
Aircraft Maintenance Support Services Ltd Aerospace $13 NA NA
6/15/2017 6/15/2017 Liberty Hall Capital Partners, L.P. Dunlop Aircraft Tyres Limited Defense $135 NA NA
6/7/2017 Pending EriSat LLC Aerial Source Defense $724 NA NA
6/1/2017 6/1/2017 TransDigm Group Incorporated Three Add On Aerospace Product Lines Aerospace $100 3.1 x NA
5/27/2017 Pending Guizhou Space Appliance Co.,
Ltd.
Shenzhen Smart Micromotor Co., Ltd Aerospace $13 NA NA
5/26/2017 Pending Guizhou Space Appliance Co.,
Ltd.
Shenzhen Casic Motor System Co.,Ltd. Aerospace $16 NA NA
5/24/2017 7/5/2017 CSRA Inc. NES Associates, LLC Defense $105 NA NA
5/18/2017 5/23/2017 New Age Beverages Corporation Premier Micronutrient Corporation Defense $5 NA NA
5/12/2017 7/13/2017 Shanghai Safbon Water Service
Co.,Ltd.
Doosan Hydro Technology, Inc. Government
Services
$7 NA NA
5/11/2017 6/1/2017 Stellwagen Group ECN Capital Corp., Commercial Aviation
Advisory and Asset Management Business
Aerospace $23 NA NA
5/8/2017 6/2/2017 Federal Signal Corporation Truck Bodies & Equipment International, Inc. Defense $270 1.3 x 7.2 x
5/3/2017 6/2/2017 Digital Power Corporation Microphase Corporation Defense $7 1.2 x NA
5/3/2017 7/10/2017 Thoma Bravo, LLC Kofax Limited Government
Services
$1,350 0.3 x NA
5/2/2017 5/2/2017 Infinite RF Holdings, Inc. Smiths Interconnect, Inc., Microwave
Telecoms Business
5/1/2017 6/9/2017 Wave Systems Corp. Jive Software, Inc. Government
Services
$344 1.7 x NA
5/1/2017 4/28/2017 Apollo Aerospace Components
Limited
PolyAero Inc. Defense $11 NA NA
4/26/2017 4/26/2017 NorthEdge Capital LLP Future Industrial Services Limited Government
Services
$21 0.7 x NA

SCOTT-MACON, LTD
January 2018
4/13/2017 4/5/2017 Kobe Steel, Ltd. Quintus Technologies AB Aerospace $115 1.9 x NA
4/12/2017 5/2/2017 Medley Capital Corporation United Road Towing, Inc. Government
Services
$40 NA NA
4/7/2017 12/25/2017 Zhejiang Nanyang Technology
Co., Ltd.
Aerospace Shenzhou Flight Vehicle Co., Ltd. Aerospace $228 6.4 x NA
4/6/2017 4/5/2017 Florida Pneumatic Manufacturing
Corporation
Jiffy Air Tool, Inc. Aerospace $8 NA NA
4/5/2017 5/30/2017 Exponent Private Equity LLP GWE Irish OPCO Limited Government
Services
$273 NA NA
4/3/2017 4/3/2017 Astronics Custom Control
Concepts Inc.
Custom Control Concepts, Inc. Aerospace $11 NA NA
4/3/2017 3/31/2017 AASKI Technology, Inc. CoSo Cloud, LLC Government
Services
$6 NA NA
3/31/2017 3/31/2017 PKC Group Oyj Fortitude Industries, Inc. Defense $9 1.2 x NA
3/31/2017 Pending Huayou International Mining
Holding Limited
Town Mining Co., Ltd. Aerospace $25 NA NA
3/29/2017 4/28/2017 Multiheight Scaffolding PTE LTD. Ensure Engineering Pte Ltd Defense $13 NA NA
3/28/2017 5/2/2017 Harlow Aerostructures LLC Aerospace Holdings, Inc. Defense $16 NA NA
3/27/2017 3/27/2017 GE Aviation Critical Technologies, Inc. Aerospace $14 NA NA
3/22/2017 3/22/2017 Diethelm Travel Lanka Forbes Air Services, Hemas Air Services,
Hemas Aviation, Hemas Travels, Discover
Aerospace $10 NA NA
3/20/2017 3/20/2017 Patrick Industries, Inc. Medallion Plastics Incorporated Defense $10 0.5 x NA
3/17/2017 7/31/2017 Voltaire Capital Investment
Limited
SATS Aerospace $19 NA NA
3/17/2017 Pending PTT Retail Business Co., Ltd Oil Business Unit Of PTT Aerospace $3,499 NA NA
3/16/2017 10/4/2017 3M Company Scott Technologies, Inc. Defense $2,000 3.5 x 12.9 x
3/14/2017 4/20/2017 American Securities LLC Air Methods Corporation Aerospace $2,486 2.1 x 8.7 x
3/13/2017 3/13/2017 Motorola Solutions, Inc. Interexport S.A. Defense $147 NA NA
3/10/2017 Pending Suzhou Ahno Precision Cutting
Tool Technology Co., Ltd.
Access Precision Tools Pte Ltd Aerospace $16 3.7 x NA
3/8/2017 4/4/2017 The KEYW Corporation Sotera Defense Solutions, Inc. Defense $350 1.3 x 15.6 x

SCOTT-MACON, LTD
January 2018
3/7/2017 6/26/2017 DRS Technologies, Inc. Daylight Solutions, Inc. Defense $150 NA NA
3/2/2017 3/2/2017 Shenzhen Fenda Technology
Co., Ltd.
Shenzhen Fortunta Technology Co. Ltd. Defense $420 3.8 x NA
2/22/2017 2/24/2017 Aerojet Rocketdyne, Inc. Aerojet Rocketdyne Coleman Aerospace,
Inc.
Aerospace $15 NA NA
2/17/2017 6/27/2017 Sonaca SA LMI Aerospace, Inc. Defense $430 1.2 x 12.5 x
2/17/2017 Pending LG Hausys Ltd. C2i s.r.o. Aerospace $84 NA NA
Aerospace Median 2.1 x 7.7 x
Aerospace Mean 2.8 x 10.8 x
Defense Median 1.5 x 9.2 x
Defense Mean 2.7 x 10.4 x
Government Services Median 0.6 x 8.3 x
Government Services Mean 0.7 x 7.7 x

SECTION 4: RECENT CONTRACTS

SCOTT-MACON, LTD
January 2018
Top 50 Signed Contracts – January 2018
Date Signed Contractor Name Funding Agency Value ($mm) Description of Services
1/30/2018 Raytheon Co. Dept of The Army $2,300.3 Engineering Services To Support Phased Array
Tracking Radar Intercept
1/18/2018 Georgia Tech Applied Research Corp. Dept of The Army $910.6 Aviation and Missile Research, Development and
Engineering Center (Amrdec) Research, Engineering,
1/30/2018 Sallyport Global Holdings Dept of The Air Force $400.0 Provide Base Operations Support, Base Life Support,
and Security Services In Support of The Iraq F-16
1/2/2018 Raytheon Co. Dept of The Air Force $333.4 Surveillance Radar Program Operations and
Maintenance
1/5/2018 Cummins Inc. Dept of The Army $257.6 Procurement of New Commercial, Remanufactured
Conversion V903 Cummins Series 600 and 675
1/11/2018 Sikorsky Dept of The Army $193.9 Eight Saudi Arabian National Guard and Nine Royal
Saudi Land Forces Airborne Special Security Forces
Unique Uh-60M Aircraft
1/2/2018 The Boeing Co. Defense, Space And Security Dept of The Air Force $193.6 Small Diameter Bomb (Sdb) Increment 1 Lots 12-14
Production
1/12/2018 Northrop Grumman Dept of The Air Force $172.7 Battlefield Airborne Communications Node (Bacn)
1/29/2018 Consolidated Nuclear Security Llc Department of Energy $165.5 Operation of Miscellaneous Buildings
1/11/2018 Selene Finance, Lp Department of Housing and Urban
Development
$164.5 Support- Professional: Program Management/Support
1/24/2018 Pfizer Inc. Centers For Disease Control and
Prevention
$150.2 Drugs and Biologicals
1/26/2018 Lockheed Martin Aculight Corp. Dept of The Navy $150.0 Surface Navy Laser Weapon System Increment 1,
High Energy Laser and Integrated Optical-Dazzler
1/23/2018 Boeing Co. Dept of The Air Force $150.0 Engineering Support Services
1/29/2018 Los Alamos National Security Limited Liability
Company
Department of Energy $148.8 Operation of Government-Owned Contractor-
Operated R&D Facilities
1/30/2018 Turner Construction Company Dept of The Army $148.6 Construction of Miscellaneous Buildings
1/29/2018 National Technology & Engineering Solutions of
Sandia, Llc
Department of Energy $146.3 Operation of Miscellaneous Buildings
1/24/2018 Merck Sharp & Dohme Corp. Centers For Disease Control and
Prevention
1/18/2018 Pike-P. J. Dick Jv Dept of The Army $142.9 Construction and Renovation of The Canandaigua
Veterans Affairs Medical Center
1/16/2018 Hensel Phelps Construction Co Public Buildings Service $128.1 Construction of office Buildings
1/19/2018 Huntington Ingalls Inc. Dept of The Navy $125.1 Uss Fitzgerald (Ddg 62) Emergent Repair and
Restoration
1/11/2018 Gulfstream Aerospace Corp. Dept of The Air Force $118.3 Support The C-20 and C-37 Fleet
1/9/2018 The Boeing Co. Dept of The Navy $115.2 Logistics Services and Site Activation Support of P-8A
Aircraft
1/26/2018 Lawrence Livermore National Security Limited
Liability Company
Department of Energy $111.0 R&D- Other Research and Development (Basic
Research)
1/19/2018 Battelle Energy Alliance Limited Liability Company Department of Energy $104.9 Operation of Government-Owned Contractor-
1/29/2018 Raytheon Missiles Systems Dept of The Army $95.0 Engineering Services To Support The 155Mm
Excalibur Program
1/16/2018 Bechtel Marine Propulsion Corporation Department of Energy $94.9 Operation of Government-Owned Contractor-
1/25/2018 Raytheon Missiles Systems Dept of The Army $92.0 Engineering and Technical Services To Support The
Stinger Weapon System
1/30/2018 Scientific Research Corp. Dept of The Navy $86.7 Procurement of The C4I Engineering
1/29/2018 The Boeing Company National Aeronautics and Space
Administration
$85.0 R&D- Space: Aeronautics/Space Technology (Basic
Research)
1/8/2018 Lockheed Martin Corporation National Aeronautics and Space
Administration
$85.0 R&D- Space: Flight (Advanced Development)

SCOTT-MACON, LTD
January 2018
Top 50 Signed Contracts – January 2018 (Continued)
Date Signed Contractor Name Funding Agency Value ($mm) Description of Services
1/30/2018 Lockheed Martin Missiles And Fire Control Dept of The Army $80.3 Hellfire Production Ramp-Up Effort
1/26/2018 Savannah River Nuclear Solutions, Llc Department of Energy $78.2 Operation of Other Industrial Buildings
1/23/2018 Leidos Inc. Dept of The Army $75.1 Support of The Existing Night Eagle System
1/22/2018 Barnard Construction Company, Incorporated Dept of The Army $73.3 Construction of Highways, Roads, Streets, Bridges,
and Railways
1/22/2018 Savannah River Nuclear Solutions, Llc Department of Energy $73.1 Operation of Other Industrial Buildings
1/19/2018 The Boeing Company National Aeronautics and Space
Administration
$66.0 R&D- Space: Aeronautics/Space Technology (Basic
Research)
1/24/2018 Glaxosmithkline Llc Centers For Disease Control and
Prevention
1/29/2018 Honeywell International Inc. Department of Energy $59.3 Operation of Miscellaneous Buildings
1/30/2018 At&T Corp. Internal Revenue Service $57.3 IT and Telecom- Telecommunications and
Transmission
1/18/2018 Washington River Protection Solutions Llc Department of Energy $56.9 Operation of Restoration of Real Property (Public Or
Private). All Actions Necessary To Restore,
1/12/2018 Ut Battelle Limited Liability Company Department of Energy $56.2 Operation of Government-Owned Contractor-
1/19/2018 Sierra Nevada Corporation National Aeronautics and Space
Administration
$50.5 Transportation/Travel/Relocation- Transportation:
Space Transportation/Launch
1/8/2018 Bechtel National, Inc Department of Energy $50.5 Construction of Government-Owned Contractor-
1/19/2018 Brookhaven Science Associates, Llc Department of Energy $50.2 Operation of Government-Owned Contractor-
1/30/2018 Mission Support And Test Services Llc Department of Energy $48.8 Operation of Miscellaneous Buildings
1/29/2018 National Technology & Engineering Solutions of
Sandia, Llc
Department of Energy $48.7 Operation of Miscellaneous Buildings
1/24/2018 Sanofi Pasteur Inc. Centers For Disease Control and
Prevention
1/19/2018 Uchicago Argonne, Llc Department of Energy $47.6 Operation of Government-Owned Contractor-
1/19/2018 California Institute of Technology National Aeronautics and Space
Administration
$46.9 R&D- Space: Science/Applications (Applied
Research/Exploratory Development)
1/19/2018 Boeing Company National Aeronautics and Space
Administration
$45.9 R&D- Space: Station (Applied Research/Exploratory
Development)
Total Top 50 $8,691.8

SCOTT-MACON, LTD
January 2018
Contract Overview by Agency and NAICS Code – January *
Top 20 Agencies Ranked by Total Contract Value Signed in January
Top 20 NAICS Codes Ranked by Total Contract Value Signed in January
* Only includes contracts with value greater than $150,000
Rank Funding Agency Contract Value ($mm) # of Contracts
1 Dept of The Army 4,381$ 18
2 Department of Energy 2,011 182
3 Dept of The Air Force 1,369 7
4 National Aeronautics and Space Administration 1,194 494
5 Department of Veterans Affairs 513 565
6 Dept of The Navy 477 4
7 Centers For Disease Control and Prevention 461 58
8 Department of State 342 268
9 Centers For Medicare and Medicaid Services 324 70
10 Federal Acquisition Service 258 183
11 Public Buildings Service 251 140
12 Agency For International Development 239 116
13 Department of Education 211 52
14 Department of Housing and Urban Development 188 16
15 U.S. Coast Guard 164 152
16 Federal Emergency Management Agency 162 84
17 United States Mint 155 32
18 National Institutes of Health 138 171
19 Office of Procurement Operations 131 112
20 Internal Revenue Service 121 52
Total Top 20 by Funding Agency 13,089$ 2,776
Rank NAICS Code Description Contract Value ($mm) # of Contracts
1 Facilities Support Services 1,298$ 181
2 Computer Systems Design Services 610 335
3 Research And Development In The Physical, Engineering, And Life Sciences (Except Biotechnology) 531 216
4 Research And Development In The Physical, Engineering, And Life Sciences 433 24
5 Commercial And Institutional Building Construction 430 137
6 Engineering Services 364 195
7 Guided Missile And Space Vehicle Manufacturing 313 15
8 All Other Professional, Scientific, And Technical Services 296 132
9 Security Guards And Patrol Services 268 278
10 Administrative Management And General Management Consulting Services 267 290
11 Remediation Services 263 73
12 Other Computer Related Services 237 264
13 Pharmaceutical Preparation Manufacturing 192 27
14 Investment Banking And Securities Dealing 165 2
15 Medicinal And Botanical Manufacturing 149 2
16 Custom Computer Programming Services 98 115
17 Jewelry, Watch, Precious Stone, And Precious Metal Merchant Wholesalers 94 16
18 Other Activities Related To Credit Intermediation 94 14
19 Nonscheduled Chartered Freight Air Transportation 93 9
20 Hazardous Waste Treatment And Disposal 91 5
Total Top 20 by NAICS Code Description 6,286$ 2,330

SECTION 5: KEY AEROSPACE & DEFENSE STATS

SCOTT-MACON, LTD
January 2018
Key Aerospace & Defense Stats
RPK – Global (in millions)
RPK Growth % by Region
11/2017 vs 11/2016)
Load Factor – Global (%)
RPK Growth % by Region
(LTM 11/2017 vs LTM 11/2016)
Commercial Aerospace Orders
Source: FAA
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
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 %
5.9%
0.5%
‐0.2%
46.3%
5.5%
1.4%
‐10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
    North
America
    Europe     Asia Pacific     Central /
South
America
    Middle East Total
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 (%)
13.2%
7.6%
0.9%
37.7%
35.3%
3.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
    North
America
    Europe     Asia Pacific     Central /
South
America
    Middle East Total
LTM as of 12/2017 LTM as of 12/2016 YoY % Change 12/2017 11/2017 10/2017 9/2017 8/2017 7/2017 6/2017 5/2017 4/2017 3/2017 2/2017 1/2017
Narrowbody Unit Orders 1,909 1,307 46.1% 1,022 188 69 101 41 11 236 33 19 148 32 9
    Boeing 855 700 22.1% 255 143 52 61 31 13 104 3 13 134 38 8
        737 855 700 22.1% 255 143 52 61 31 13 104 3 13 134 38 8
    Airbus 1,054 607 73.6% 767 45 17 40 10 ‐2 132 30 6 14 ‐6 1
        A320 1,054 607 73.6% 767 45 17 40 10 ‐2 132 30 6 14 ‐6 1
Widebody Unit Orders 243 271 ‐10.3% 19 16 12 27 2 13 78 30 13 13 1 19
    Boeing 188 147 27.9% 10 16 12 11 2 9 80 10 2 13 5 18
        787 107 80 33.8% 7 13 0 5 0 3 56 10 2 4 5 2
        777 60 23 160.9% 3 2 12 6 0 4 24 0 0 8 0 1
        767 15 26 ‐42.3% 0 0 0 0 0 0 0 0 0 0 0 15
        747 6 18 ‐66.7% 0 1 0 0 2 2 0 0 0 1 0 0
    Airbus 55 124 ‐55.6% 9 0 0 16 0 4 ‐2 20 11 0 ‐4 1
        A350 36 41 ‐12.2% ‐4 0 0 10 0 1 ‐4 20 10 0 0 3
        A380 ‐2 0 NA 0 0 0 0 0 0 0 0 0 0 0 ‐2
        A330 21 83 ‐74.7% 13 0 0 6 0 3 2 0 1 0 ‐4 0

SCOTT-MACON, LTD
January 2018
Key Aerospace & Defense Stats
86%
14%
Domestic International
Global Business Jet Traffic
(Flights in Thousands)
12/2017 Global Business Jet Traffic
by Type (401K Flights)
Global Business Jet Deliveries
2016 Global Business Jet Deliveries
By Market (661 Deliveries)
U.S. Defense Budget
* Base Budget Request
Source: GAMA, Office of the Under Secretary of Defense
401
388386
362
375
385
375
388
344
348346
369
‐2%
0%
2%
4%
6%
8%
10%
310
320
330
340
350
360
370
380
390
400
410
Series1 MoM Growth %
62.0%
18.8%
7.7%
6.2%
5.3%
North America Europe Asia‐Pacific Latin America Middle East & Africa
518
592
750
887
1,137
1,317
874
767
696 672 678
722 718
661
0
200
400
600
800
1,000
1,200
1,400
By Appropriation Title ($ in billions) FY 2016 FY 2017 FY 2018* Dollar Δ %Δ
Military Personnel 135.3$ 135.4$ 141.7$ 6.3$ 4.6%
Operation and Maintenance 197.5 197.1 223.3 26.2 13.3%
Procurement 110.7 110.7 115.0 4.3 3.8%
RDT&E 68.8 69.6 82.7 13.1 18.8%
Military Construction/Family Housing 6.9 6.5 8.4 1.9 29.4%
Other 2.5 2.4 3.5 1.1 44.5%
Total 521.7$ 521.8$ 574.5$ 52.8$ 10.1%
By Military Department ($ in billions) FY 2016 FY 2017 FY 2018* Dollar Δ %Δ
Army 123.3$ 122.9$ 137.1$ 14.2$ 11.6%
Navy 159.3 159.1 171.5 12.4 7.8%
Air Force 145.7 146.5 165.5 19.0 13.0%
Defense Wide 93.4 93.3 100.4 7.1 7.6%
Total 521.7$ 521.8$ 574.5$ 52.8$ 10.1%
FY 2017 vs FY 2018
FY 2017 vs FY 2018

SECTION 6: ABOUT SCOTT-MACON

SCOTT-MACON, LTD
January 2018
Overview
Michael Papazis has over 15 years of investment banking experience. Prior to joining Scott-Macon, Mr. Papazis
was 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 his
career, 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 also
holds an M.A. in International Affairs from the Johns Hopkins University School of Advanced International Studies
(SAIS).
Michael N. Papazis
Managing Director
Scott-Macon, Ltd.
Office: (212) 755-8200
Fax: (212) 583-9262
mpapazis@scott-macon.com
www.scott-macon.com
Selected Transaction Experience

SCOTT-MACON, LTD
January 2018
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 and
general 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 integrated
into 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, LTD
Over 40 Years of Senior Level Experience, Attention & Execution in Investment Banking

Scott-Macon Aerospace & Defense Market Update (January 2018)

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