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1. OUR ADDED VALUE & M&A TRENDS
IN THE AERONAUTICS & DEFENSE SECTOR
BUY SIDE – FUNDRAISING – SELL SIDE
FEBRUARY 2022

2. 2
P R I V A T E & C O N F I D E N T I A L
TABLE OF CONTENT
Market Trends in the Aeronautics & Defense sector 03
Our Methodology & Expertise 13
M&A Trends in the Aeronautics & Defense sector 08

3. MARKET TRENDS IN
THE AERONAUTICS &
DEFENSE SECTOR
I

4. 4
P R I V A T E & C O N F I D E N T I A L
Forecast of Global Revenue Passerger Kilometers
(2019 - 2040)
0
3000
6000
9000
12000
15000
18000
21000
2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040
COVID-19 HAS DISCRUPTED THE AERONAUTICS & DEFENSE SECTOR
Increased focus on short-haul and domestic travel
▪ It is expected that the habit of shorter distance will stay
Defense was more resilient: revenue up 2% at top 6
US defense companies
Sources : PwC, Deloitte, Airbus – GMF, Fitch Ratings, GCF Research
Market trends
Change of behaviors
The Covid crisis has led to a slowdown in the sector, especially in commercial aeronautics. The sector is
slowly recovering, driven by changes of behaviors and the easing of restrictions
Commercial aeronautics is most affected: 66%
decline in RPK in 2020 vs. 2019
Decrease in lucrative business flights
▪ The rise of new communication technologies such as Zoom has
accelerated the substitution of in-person meetings to virtual ones
CAGR 19-40
+ 3.9%
RPK (billion)

5. 5
P R I V A T E & C O N F I D E N T I A L
NEW OPPORTUNITIES IN THE AERONAUTICS & DEFENSE SECTOR
Environmental pressure
▪ Considering the global environmental pressure and the funds given by
the governments to pass the crisis, Airline companies will have to
reduce CO2 emissions by investing in new aircrafts’ generation, NEO
range and especially single aisles
Sources : PwC, Deloitte, ASD, Boursorama, Airbus, GCF Reseach
Airbus A320 family monthly production rate
(2020-2025)
Key growth drivers
The resumption of deliveries is a reliable indicator of an end of the crisis: Airbus forecasts for its A320 family,
a monthly production rate of 75 aircrafts by 2025. New deliveries over the next 20 years are estimated around
40 000 aircrafts
60
40
45 45
64
70
75
0
10
20
30
40
50
60
70
80
2019 2020 2021 2022f 2023f 2024f 2025f
New opportunities amid the sector’ reshaping
▪ Pre-crisis, Airbus forecasted 63 monthly aircrafts’ production in 2021 vs.
actual 45. The adaptation to the current market situation will result in
M&A opportunities (consolidation, economies of scale, innovation, …)
Resilience of low-cost companies which are mainly
using single-aisle aircrafts (A320 family)
▪ Faster recovery due to lower fixed costs
▪ Preference for direct flights: reinforcing the low-cost companies'
strategy

6. 6
P R I V A T E & C O N F I D E N T I A L
Global MRO Market evolution in $bn
(2019 – 2031)
RESILIENCE OF THE GLOBAL MRO MARKET
Asia Pacific expected to witness a significant
growth
▪ Representing 31% of the global MRO market, Asia Pacific market
will increase by 5.5% by 2027
Key Drivers
The global Aeronautics & Defense MRO (Maintenance, Repair & Operations) market has been valued at
$82bn in 2019 and is expected to reach $108bn by 2026, increasing at a CAGR of 4%.
Increase of investments in MRO equipment which
help reduce operational expenditure (process
efficiency, reduce of downtime’s length).
Sources GMI, OliverWyman, Les Echos , GCF Research
The growth of air travel and the aircraft
production will support the MRO industry
▪ Air traffic passengers is expected to reach 7.2bn in 2035 (+90%
vs. 2016)
82,3
108,4
117,7
0
20
40
60
80
100
120
140
2019 2026f 2031f
CAGR 26-31
+ 1.5%
CAGR 19-26
+ 4%

7. 7
P R I V A T E & C O N F I D E N T I A L
REBOUND OF THE MRO MARKET IN FRANCE & EUROPE
Consolidation of the fragmented sector
▪ Leaders of the market are looking to increase their size, to achieve scale
economies and to complete their offer
▪ Numerous small companies with targeted skills, especially in engines
and components segments which represent over 60% of the market
Key Drivers
In Western Europe, the aircraft MRO market is valued at $14bn and is expected to reach nearly $21bn
by 2031. In France, the market rebound moderately at €4.6bn in 2021 (+6.5% from 2020).
Capacities to renew exiting contracts & acquire new
ones illustrate the resilience of MRO companies
Sources: Statista, Xerfi, GCF Research
Resume of the MRO market linked to the lifting of
restrictions and the recovery of air traffic
▪ The recovery is only moderate due to on-going restrictions in foreign
countries which freeze international flights
N2 France is the N°2 MRO market (18% of total revenue)
after Germany (40%) in Europe
Western Europe MRO Market evolution in €bn
(2021 – 2031)
14
22
0
5
10
15
20
25
2021 2031f
57%

8. M&A TRENDS IN THE
AERONAUTICS &
DEFENSE SECTOR
II

9. 9
P R I V A T E & C O N F I D E N T I A L
101
94
109
135
118
109 107 110
102
68
77
117
144
117
157 156
0
20
40
60
80
100
120
140
160
180
2018-
1Q
2018-
3Q
2019-
1Q
2019-
3Q
2020-
1Q
2020-
3Q
2021-
1Q
2021-
3Q
Number of M&A Deals per quarter
Number of deals
RECOVERY OF M&A ACTIVITY IN THE SECTOR
Source Janes Capital Partners, Aerospace & Defense, Quarterly Report, Q4 2021
M&A transactions rebound in 2021 in the Aeronautics & Defense sector is boosted by the end of the crisis
and an expected recovery of air traffic to pre-crisis levels between 2023 and 2025
+28% expected growth in 2022
The level of activity will return to its pre-crisis
level in H2 2022
2021 accounted + 58% increase in
M&A transactions compared to 2020
Growing digitalization & needs in
disruptive technologies
Government Services, IT Services & Software is
the most active segment, accounting for ~20% of
2021 total number of deals

10. 10
P R I V A T E & C O N F I D E N T I A L
VALUATION METRICS
Year Buyer Target Sector
Transaction
Value
TEV/
EBITDA
2021 UMS JEP Manufacturer of high precision equipment $31m 11,65x
2020
Avon Protection
Systems
Team Wendy Defense $130m 9,7x
2020 TT Electronics Excelitas Technologies Components & systems $18m 10,4x
2020
SFPI-FPIM & Sabena
Aerospace
SABCA Manufacturer of aeronautical components $88m 4,9x
2019 ITT Inc. Matrix Composites Manufacturer of aeronautical components $29m 8,5x
2019 Nitta Corporation Korea Nitta Moore Plastic-extruding products manufacturer $20m 7,55x
Source Merger Market et Janes Capital Partners Aerospace & Defense, (rapport 2020 et 2021)
➢ Company Size
The larger the company, the higher the
multiple with key thresholds
➢ Profitability
EBITDA margin is the most important benchmark
for companies of similar size
➢ Market position
A leading position in a market
improves a valuation multiple
3 factors influence the valuation multiples:

11. 11
P R I V A T E & C O N F I D E N T I A L
RECENT STRATEGIC OPERATIONS
2021 : consolidation year in the Aeronautics and Defense sector
Source: Mergermarket, GCF analysis
Year Investors Target Information
Group est.
revenue
See
More
Nov.
2021
WeAre Group (FR): an aeronautic subcontractor
Taramm & Gamma-Tial (FR): titanium foundry
companies
€95m here
Aug.
2021
Gerard Perrier Industrie (FR): an industrial group
AECE (FR): a manufacturer of electronic and
electrical equipment
€210m here
July
2021
ACI Groupe (FR): a subcontractor for cutting edge
industries
Together Industrie (ex-Reims Aerospace):
Assembly and repair services for complex
aerostructures
€45m here
July
2021
Mecachrome (FR): a global leader in precision
mechanics
Hitim Group (FR): a high precision mechanics
manufacturer
€220m here
June
2021
ACI Groupe (FR): a subcontractor for cutting edge
industries
Dviation (Malaysia): a subcontractor in aeronautics
€45m here
Nov.
2020
Sabena Technics (FR): MRO services in aeronautics
Aeromecanic (FR): MRO for military aircrafts
€520m here

12. 12
P R I V A T E & C O N F I D E N T I A L
Year Investors Target Information
Transaction
Value
See
More
Oct.
2021
Satys Aerospace (FR): aircraft painting,
sealing and surface treatment
€40m here
Sept.
2021
Figeac Aero (FR): a leading European
aeronautical subcontractor
€35m here
May
2021
Cebu Pacific (Philippines): a leading low-cost
airline company
$250m here
April
2020
Castolin Eutetic (Germany): a leading group in
maintenance, surface protection and special
assembly
€138m here
April
2019
Revima (FR): an overhaul and maintenance of
aeronautical equipment company
- here
Jan.
2019
Sabena Technics (FR): MRO services in
aeronautics
€350m here
RECENT FUNDRAISING DEALS
MRO (maintenance, repair & operations) and concepts to lower the costs remain important drivers
for investors
Source: Mergermarket, GCF analysis

13. OUR METHODOLOGY
& EXPERTISE
III

14. 14
P R I V A T E & C O N F I D E N T I A L
OUR EXPERTISE & ADDED VALUE (1/2)
Direct access to > 150 companies in the Aeronautics & Defense industry in Europe, Asia
and internationally
1. Our Expertise & Experience
Our multicultural teams with our own offices in Europe (Paris, Geneva, Lyon, Nantes) and
in Asia (Singapore, Kuala Lumpur), and our partners in the Middle East, Africa and the US
2. Our International presence
Entrepreneurs close to Entrepreneurs = reactivity & adaptability
3. Our “entrepreneurial” culture
Privileged access to > 900 investors (Cap dev funds, VC, Debt funds, Family Office) with a
specific interest in the Aerospace & Defense industry
4. Our Privileged access to Strategic & Financial Investors

15. 15
P R I V A T E & C O N F I D E N T I A L
OUR EXPERTISE & ADDED VALUE (2/2)
We prefer to act over the long term as partners alongside business leaders
5. Advisor & Partner
With a total of 78 closings between 2016 & 2021 GEREJE is No. 1 & No. 2 between 2016 &
2021 in the Advisory Fusacq ranking – Corporate banking fundraising rankings in France
6. Our Track-Record
Our expertise in structuring complex operations : Earn-Out, Management Buy-Out, Owner
Buy-Out, Joint Venture…
7. Our Expertise in complex structuring
We work with no conflict of interests and ensure confidentiality & discretion
8. Our independence

16. 16
P R I V A T E & C O N F I D E N T I A L
OUR PRIVILEGED ACCESS TO STRATEGIC & FINANCIAL PARTNERS
Small Cap companies
~40 companies in Europe, Asia and Worldwide -
listed in our proprietary data base
Mid Cap companies
~110 companies in Europe, Asia and Worldwide -
listed in our proprietary data base
Investors
~ 900 investors (PE, VC, CVC, Family Offices, etc.)
with a specific interest in the industry sector -
listed in our proprietary data base
● ● ●
● ● ●

17. OUR NETWORK OF EXPERTS
17
P R I V A T E & C O N F I D E N T I A L
Fabrice LOMBARDO
Founder & CEO of GEREJE Corporate Finance
Expertise at the international level, in Europe, Asia (especially ASEAN), Middle East & Africa, in
GEREJE’s 8 key sectors
Education:
BBA at Oxford Brookes Université, Grenoble Business School, Executive MBA at ESSEC, SFAF
Certified
Key Points:
● + 12 years in Business Dev. (multinationals) ● Creation of GEREJE: 2008 ● +100 deals closed
EXPERIENCE & EXPERTISE
➢ + 15 years in M&A consulting for SMID & Large Caps
➢ Buy-Side Mandate & Sell-Side Mandate
➢ Fundraisings (Equity / Debt)
➢ Valuation & Structuring
➢ Speaker and lecturer at ESSEC Paris, EGE, EDC Paris
➢ Specific expertise in Industry
▪ Previous Managing Director Asia at EDELCOM (subsidiary
of Citelum Group : EDF-Veolia)
▪ Previous Export Manager at BWT
▪ Previous APAC Area Manager at CATU (Legrand / Sicame
Group
▪ M&A Consulting : VINCI, EGIS, SOCOTEC, M+W Group, etc.

18. OUR NETWORK OF EXPERTS
18
P R I V A T E & C O N F I D E N T I A L
Laurent GOBINET
Partner at GEREJE Corporate Finance
Industrial Expertise in France and abroad
Education :
DESS electronic & MBA Purchasing, Bordeaux, France
Key Points:
● + 25 years of experience in the Aeronautics/Naval/Defense & All-terrain vehicles sectors
● +20 years of international experience
EXPERIENCE & EXPERTISE
➢ + 20 years of experience in large groups
➢ Industrial Strategy : production & services
➢ Aero., naval, defense, All-terrain vehicles , energies, etc.
➢ Purchasing, Supply Chain & Management
➢ Member of Neopolia Board (business network, Pays de Loire)
➢ Specific expertise in Industry
▪ Previous President et Deputy General Manager at
GESTAL
▪ Previous Purchasing & Logistics Director at STELIA (ex
Sogerma Services)
▪ Chantiers de l’Atlantique, Thales, etc.

19. OUR NETWORK OF EXPERTS
19
P R I V A T E & C O N F I D E N T I A L
Bruno NAVET
Partner at GEREJE Corporate Finance Asia - Kuala Lumpur
Expertise in Asia in Aeronautics, Energies, Engineering
Education :
Harvard BS, MBA HEC Paris, Master of Science des Arts et Métiers Paris Tech
Key Points:
● + 25 years of experience in the Aeronautics/Energy/Infrastructures sectors
● + 20 years of experience in Asia
EXPERIENCE & EXPERTISE
➢ + 25 years of experience in large groups
➢ Aeronautics/Aviation/Defense/Infra/Energies
➢ Management & Restructuring
➢ Business Strategy
➢ Transformation, innovation & digitalization
➢ Specific expertise in Industry
▪ Head of Corporate restructuring for Airbus Asia-Pacific
▪ Previous Managing Director at CEGELEC Group
▪ Previous Managing Director at Alstom Industries
Malaysia

20. 20
P R I V A T E & C O N F I D E N T I A L
TRACK RECORD OF OUR EXPERTS’ NETWORK
Click on the logos to access the website.

21. 21
P R I V A T E & C O N F I D E N T I A L
OUR BUY-SIDE METHODOLOGY
Option: Preparation of a "Long-List" of
potential targets in the targeted sector
and geographical area and ranking them
in order of interest and according to M&A
criteria (sales, EBITDA, etc.)
Initiate contact between GEREJE and the
target(s) (without giving the name of the
client) to validate their actionability
Meeting between GEREJE and the client
to select a short list of targets to be
approached in phase 2
Assist our client in the final Due
Diligence
Optimize the discussions between all
involved parties: legal, audit,
accounting…
Advise on the best strategy and tactic
for final negotiations with the target(s)
until closing.
Assist in the drafting & proof-reading of
final contracts.
Drafting & negotiation of a Letter of
Intent (LOI)
Management of client’s questions &
requests (Q&A)
Optimize the negotiations with the
target
Advise on the best structuring (equity /
debt / mix) in the interest of the
shareholders
Option : Preparation of a strategic and
financial note (detailed profile of the
target) for the client
Signing of the Letter of Intent (LOI)
Signing of a Reciprocal Confidentiality
Agreement (RCA).
Meeting between the target and the client
to confirm the strategic fit and the mutual
willingness to enter negotiations
Phase 1 – 1 to 3 months
Market Screening & Preliminary
Approach
Phase 2 – 4 to 9 months
Maximization of Negotiations –
Signing of LOI
Phase 3 – 2 to 4 months
Final DD – Offer – Optimization. Of
the Closing

22. 22
P R I V A T E & C O N F I D E N T I A L
OUR TAILOR-MADE FUNDRAISING & SELL SIDE PROCESS
Phase 1 – 1 to 2 months
Preparation phase
Financial analysis (past results and/or
business plan) + Valuation
Examine the best structuring
(equity/debt/mix) with the main
shareholders
Prepare an electronic dataroom
Help prepare a Commercial presentation
(pitch)
Blind Teaser = e-mail & website
A fundraising/sell process takes time & resources. It is essential to seriously prepare the project, to
demonstrate the growth potential in sales and margins
Phase 2 – 2 to 6 months
Selection, teasing and approach of
investors
Confidentiality management of the e-
NDA’s on GEREJE’s website
Checking of candidates’ seriousness
and motivation
Management & Optimization of
negotiations
Optimization of different structuring
options for the deal
Phase 3 – 1 to 2 months
Closing = Timing
Optimization of the Due Diligence
process
Optimize the discussions between all
involved parties: legal, audit,
accounting…
Advise on the best strategy and tactic
for final negotiations with the target(s)
until closing.
Advise on the different structuring
schemes including earn out
Analysis and validation of the final
offer
Prepare a Strategic & Financial Note for
investors
Signing of the Letter of Intent (LOI)

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