Scott-Macon Aerospace, Defense and Government Services Monthly Update

SCOTT-MACON, LTD
May 2019
2© Copyright 2018 SCOTT-MACON, LTD.
We are pleased to present you with the May 2019 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
17
Section 5 Key Aerospace & Defense Stats
Review of key trends in the aerospace and defense
sectors
21
Section 6 About Scott-Macon
Brief overview on Scott-Macon and their ADG
investment banking practice
24

SECTION 1: MARKET SNAPSHOT

SCOTT-MACON, LTD
May 2019
# 3.2 %
# 1.5 %
# 10.2 %
# 14.6 %
# 3.2 %
# 10.4 %
# 4.6 %
# 7.3 %
$ -8.9 %
# 2.2 %
$ -8.7 %
$ -8.8 %
$ -1.1 %
$ -5.3 %
$ -9.5 %
# 1.0 %
$ -6.5 %
$ -37.5 %
$ -3.2 %
$ -21.1 %
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 May 2019 LTM as of May 2019
19
15
31
30
8
5
58
50
0
10
20
30
40
50
60
70
31-May-18 31-May-19
NumberofDeals
Aerospace Defense Government Services
263 246
291 294
105 95
659
635
0
100
200
300
400
500
600
700
800
LTM-May-18 LTM-May-19
NumberofDeals
Aerospace Defense Government Services
11.00x
11.50x
12.00x
12.50x
13.00x
13.50x
14.00x
May-01-2019
May-03-2019
May-05-2019
May-07-2019
May-09-2019
May-11-2019
May-13-2019
May-15-2019
May-17-2019
May-19-2019
May-21-2019
May-23-2019
May-25-2019
May-27-2019
May-29-2019
May-31-2019
SM Aerospace SM Government Services SM Defense
8.50x
9.50x
10.50x
11.50x
12.50x
13.50x
14.50x
May-31-2018
Jun-30-2018
Jul-31-2018
Aug-31-2018
Sep-30-2018
Oct-31-2018
Nov-30-2018
Dec-31-2018
Jan-31-2019
Feb-28-2019
Mar-31-2019
Apr-30-2019
May-31-2019
SM Aerospace SM Government Services SM Defense
85
90
95
100
105
110
115
120
125
1-May-19
3-May-19
5-May-19
7-May-19
9-May-19
11-May-19
13-May-19
15-May-19
17-May-19
19-May-19
21-May-19
S&P 500 SM Aerospace
SM Government Services SM Defense
74
79
84
89
94
99
104
109
114
119
May-31-2018
Jun-18-2018
Jul-06-2018
Jul-24-2018
Aug-11-2018
Aug-29-2018
Sep-16-2018
Oct-04-2018
Oct-22-2018
Nov-09-2018
Nov-27-2018
Dec-15-2018
Jan-02-2019
Jan-20-2019
Feb-07-2019
Feb-25-2019
Mar-15-2019
Apr-02-2019
Apr-20-2019
May-08-2019
S&P 500 SM Aerospace
SM Government Services SM Defense

SECTION 2: PUBLIC COMPARABLES

SCOTT-MACON, LTD
May 2019
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 $128.03 92.6% $99,320.5 $101,118.6 14.7 x -5.7% 20.2% 1.4 x -5.7% 18.8%
Boeing Company 341.61 76.6 192,200.2 200,386.2 14.9 -9.2 -7.5 2.0 -9.0 -9.2
Bombardier Inc. 1.50 36.4 3,580.1 11,643.1 10.8 2.7 -19.5 0.7 4.1 -28.0
Embraer S.A. 4.84 67.7 3,562.3 4,611.3 18.0 -2.7 -30.5 1.0 -2.7 -16.1
Median 72.1% $51,450.3 $56,380.8 14.8 x -7.5% -29.4% 1.2 x -4.5% 1.6%
Mean 68.3% $74,665.8 $79,439.8 14.6 x -4.3% -30.5% 1.3 x -5.2% -3.5%
Aerospace Systems / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AAR Corp. $30.09 58.4% $1,034.6 $1,182.9 8.2 x -9.7% -29.8% 0.6 x -9.3 -32.0%
AMETEK, Inc. 81.89 92.3 18,657.9 20,950.8 15.7 -8.6 6.6 4.2 -3.7 1.6
Astronics Corporation 40.67 94.7 1,327.1 1,426.4 13.1 -3.0 -9.4 1.7 5.4 -10.8
CAE Inc. 25.50 93.5 6,772.0 8,222.7 17.7 6.3 22.6 3.4 8.4 18.6
Crane Co. 76.46 76.4 4,579.0 5,442.5 9.3 -6.0 0.4 1.6 -8.6 -18.2
HEICO Corporation 121.59 101.3 14,406.5 15,165.5 NM 5.2 25.3 7.9 8.6 35.0
Héroux-Devtek Inc. 12.50 100.3 454.6 622.5 11.8 -9.3 25.3 1.7 -4.3 5.8
Meggitt PLC 6.19 84.0 4,775.0 6,130.3 12.4 -7.9 9.1 2.3 -8.1 -0.9
Moog Inc. 82.42 83.7 2,875.5 3,588.9 10.2 -9.9 -5.0 1.3 -8.5 -6.9
MTU Aero Engines AG 215.81 91.6 11,143.0 10,911.1 12.4 -7.8 -11.2 2.1 -7.8 13.0
Textron Inc. 45.30 62.2 10,544.1 14,088.1 8.9 -11.3 -10.6 1.0 -11.1 -27.4
TransDigm Group Incorporated 440.95 90.0 23,449.7 38,355.7 19.2 0.7 10.4 9.1 0.4 16.0
Woodward, Inc. 108.92 95.1 6,765.7 7,860.9 15.7 -0.4 7.1 2.9 0.6 21.0
Median 91.6% $6,765.7 $7,860.9 12.4 x -7.8% -11.1% 2.1 x -7.8% 1.5%
Mean 86.4% $8,214.2 $10,303.7 12.9 x -4.8% -4.8% 3.1 x -1.2% 10.2%
Aerospace Structures Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
CPI Aerostructures, Inc. $7.06 60.1% $83.4 $118.1 11.8 x 9.2% 2.8% 1.3 x 9.5% -17.4%
Ducommun Incorporated 45.13 86.7 518.9 766.6 10.8 2.5 -4.7 1.2 9.6 13.7
RBC Bearings Incorporated 142.30 83.8 3,484.5 3,498.3 19.6 7.0 -0.6 5.0 4.2 6.7
Hexcel Corporation 72.79 97.1 6,179.0 7,366.8 13.9 2.5 4.4 3.3 2.6 -6.9
Kaman Corporation 55.61 75.9 1,553.8 1,907.3 12.0 -3.0 -2.6 1.0 -8.9 -18.5
Latécoère S.A. 3.17 55.8 300.2 357.4 7.5 -10.9 NA 0.5 -10.9 -35.8
Magellan Aerospace Corporation 12.63 88.7 735.1 780.6 7.0 -8.2 4.2 1.1 -5.8 -5.0
Senior plc 2.90 68.3 1,206.4 1,399.5 8.9 -0.7 3.0 1.0 -1.5 -28.2
Spirit AeroSystems Holdings, Inc. 81.04 80.8 8,383.7 9,454.4 8.0 -14.3 -13.3 1.3 -6.5 -13.9
Triumph Group, Inc. 19.39 74.6 967.7 2,363.7 11.8 -46.2 -12.6 0.7 -13.2 -8.5
Median 78.3% $1,087.1 $1,653.4 11.3 x 6.9% -4.9% 1.1 x 0.5% 3.4%
Mean 77.2% $2,341.3 $2,801.3 11.1 x 0.2% -25.4% 1.6 x 0.1% -0.4%
Total Aerospace Median 83.8% $3,580.1 $5,442.5 11.9 x -8.3% -10.7% 1.4 x -5.7% -3.1%
Total Aerospace Mean 80.3% $15,883.7 $17,767.4 12.5 x -3.6% -15.1% 2.3 x -1.2% 5.9%
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. $63.17 99.0% $8,845.7 $10,405.0 15.7 x 5.9% 17.4% 1.6 x 4.1% 18.6%
CACI International Inc 203.52 97.0 5,061.7 6,725.4 14.6 14.2 29.4 1.4 5.3 21.3
CGI Inc. 72.89 97.9 19,925.1 21,134.0 14.3 -0.4 9.7 2.4 2.4 12.1
Cyient Limited 8.04 68.2 883.6 802.0 9.3 4.3 -10.1 1.2 4.0 -33.3
ICF International, Inc. 72.89 88.6 1,372.5 1,742.2 13.9 1.3 5.5 1.3 3.4 1.5
KeyW Holding Corp. 11.25 97.6 560.4 877.5 NM 13.4 55.5 1.8 9.4 20.7
Leidos Holdings, Inc. 75.33 97.4 10,818.3 13,821.3 13.1 2.0 20.5 1.3 2.6 11.9
ManTech International Corp. 61.37 90.1 2,447.5 2,554.1 15.3 2.4 10.9 1.3 -1.2 4.1
MAXIMUS, Inc. 71.25 96.1 4,546.5 4,581.3 12.7 -7.4 8.4 1.8 -7.8 18.2
Navigant Consulting, Inc. 22.00 80.3 865.6 868.5 13.8 -3.6 NA 1.2 -4.3 -7.7
QinetiQ Group plc 3.68 89.8 2,059.2 1,820.6 8.7 -12.3 -12.8 1.6 -6.2 8.7
Science Applications International Corp. 76.74 82.2 4,540.4 6,430.4 18.1 1.7 29.3 1.4 3.3 33.1
Serco Group plc 1.68 96.0 2,044.1 2,287.9 13.2 15.2 -17.0 0.6 14.9 58.2
Vectrus, Inc. 35.29 83.5 403.1 448.1 7.9 -7.4 28.3 0.3 -4.5 -2.0
VSE Corp. 24.11 47.2 262.9 568.3 7.1 8.3 1.0 0.8 11.6 -15.3
Median 90.1% $2,059.2 $2,287.9 13.5 x -1.5% 15.3% 1.3 x 3.6% 16.7%
Mean 87.4% $4,309.1 $5,004.4 12.7 x -2.2% 10.7% 1.3 x 1.8% 15.5%
Engineering & Construction Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AECOM $31.90 91.1% $5,019.3 $8,279.3 9.0 x -11.3% -0.8 0.4 x -3.5% -10.3%
Fluor Corp. 27.72 45.7 3,878.8 4,149.3 5.6 -22.6 -17.0 0.2 -19.5 -35.7
Jacobs Engineering Group Inc. 75.29 91.5 10,285.3 12,542.0 12.1 -8.5 -0.3 0.8 -2.6 -17.8
KBR, Inc. 22.22 93.7 3,143.4 3,981.4 8.8 3.3 5.6 0.8 6.7 11.7
Tetra Tech, Inc. 67.52 93.1 3,704.6 3,848.1 16.1 3.2 19.0 1.7 5.4 7.7
Median 91.5% $3,878.8 $4,149.3 9.0 x -11.3% -0.8% 0.8 x 0.9% 13.2%
Mean 83.0% $5,206.3 $6,560.0 10.3 x -5.7% 3.6% 0.8 x -2.4% 10.1%
Total Government Services Median 91.3% $3,424.0 $3,914.7 13.1 x 0.2% 13.9% 1.3 x 17.3% 14.8%
Total Government Services Mean 86.3% $4,533.4 $5,393.3 12.1 x -3.2% 8.8% 1.2 x 1.1% 14.6%

SCOTT-MACON, LTD
May 2019
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 $5.71 66.5% $18,269.6 $19,622.3 8.0 x -7.9% -14.5% 0.9 x -7.5% -20.6%
Boeing Company 341.61 76.6 192,200.2 200,386.2 14.9 -9.2 -7.5 2.0 x -9.0 -9.2
General Dynamics Corporation 160.82 77.4 46,345.9 60,604.9 11.3 -7.8 -2.4 1.6 -6.9 -20.0
Leonardo S.p.a. 11.08 90.5 6,370.7 11,068.0 6.0 15.1 -6.2 0.8 14.4 4.7
Lockheed Martin Corporation 338.54 96.4 95,650.7 108,637.7 12.1 1.4 9.7 1.9 1.8 -2.6
Northrop Grumman Corporation 303.25 89.2 51,491.8 67,220.8 13.1 3.5 9.2 2.1 3.6 -10.1
Raytheon Company 174.50 81.3 48,837.5 52,884.5 13.4 -1.6 6.8 1.9 -1.0 -21.8
Thales S.A. 109.87 79.2 23,345.9 20,089.8 8.9 -8.5 0.8 1.1 -8.5 -12.0
Median 80.2% $47,591.7 $56,744.7 11.7 x -3.3% 3.5% 1.8 x -3.1% 2.3%
Mean 82.1% $60,314.0 $67,564.3 11.0 x -3.1% -0.2% 1.6 x -2.8% 0.4%
Defense Systems Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Aerojet Rocketdyne Holdings, Inc. $38.58 94.1% $2,988.2 $2,983.5 10.9 x 14.0% -4.0% 1.6 x 4.2% 31.7%
AeroVironment, Inc. $64.75 53.4% $1,528.1 $1,233.9 19.9 x -6.8% -28.8% 3.6 x -6.3% -2.7
Cobham plc 1.26 74.0 2,998.0 2,986.9 9.2 -13.5 -10.7 1.3 -12.8 -22.1
Cubic Corporation 56.42 72.9 1,757.9 2,182.7 NM NM NM 1.7 5.4 19.1
Curtiss-Wright Corporation 111.49 78.9 4,768.7 5,534.6 11.0 1.3 -3.0 2.3 1.5 -14.0
FLIR Systems, Inc. 48.33 75.7 6,544.9 7,063.5 16.7 -8.0 3.7 4.0 -7.9 -1.8
Huntington Ingalls Industries, Inc. 205.12 78.2 8,523.2 10,152.2 8.7 2.3 5.1 1.2 -4.2 -13.2
Kongsberg Gruppen ASA 13.15 58.9 2,355.4 1,845.9 11.6 -7.6 -26.4 1.1 -3.8 -24.7
L3 Technologies, Inc. 242.06 98.8 19,231.9 22,179.9 15.8 7.9 19.6 2.1 3.5 8.5
Safran SA 131.20 90.5 56,733.5 61,215.7 15.7 -8.8 -1.1 2.6 -8.8 3.0
Textron Inc. 45.30 62.2 10,544.1 14,088.1 8.9 -11.3 -10.6 1.0 -11.1 -27.4
Median 75.7% $4,768.7 $5,534.6 11.3 x 4.0% -0.4% 1.7 x 4.4% -4.8%
Mean 76.1% $10,724.9 $11,951.5 12.9 x 3.0% 3.0% 2.0 x -3.4% -6.8%
Defense Electronics / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AMETEK, Inc. $81.89 92.3% $18,657.9 $20,950.8 15.7 x -8.6% 6.6% 4.2 x -3.7% 1.6%
Chemring Group PLC 2.04 67.6 572.4 675.6 NM 4.4 NA 1.8 7.1 53.4
Comtech Telecommunications Corp. 21.15 57.3 510.3 640.5 7.8 -8.2 -19.4 1.0 -7.5 -40.5
Crane Co. 76.46 76.4 4,579.0 5,442.5 9.3 -6.0 0.4 1.6 -8.6 -18.2
Ducommun Incorporated 45.13 86.7 518.9 766.6 10.8 2.5 -4.7 1.2 9.6 13.7
Elbit Systems Ltd. 143.43 99.1 6,323.3 7,273.6 16.6 10.9 28.5 1.9 8.2 13.3
Harris Corporation 187.19 98.8 22,111.9 25,309.9 16.1 5.0 13.8 3.8 3.9 7.2
Héroux-Devtek Inc. 12.50 100.3 454.6 622.5 11.8 -9.3 25.3 1.7 -4.3 5.8
Kratos Defense & Security Solutions, Inc. 22.05 97.6 2,335.4 2,511.0 NM 33.2 55.0 4.0 37.0 NM
Meggitt PLC 6.19 84.0 4,775.0 6,130.3 12.4 -7.9 9.1 2.3 -8.1 -0.9
Mercury Systems, Inc. 68.76 86.1 3,743.9 3,910.8 NM 6.0 18.1 6.2 4.1 46.5
Moog Inc. 82.42 83.7 2,875.5 3,588.9 10.2 -9.9 -5.0 1.3 -8.5 -6.9
OSI Systems, Inc. 103.59 97.6 1,875.5 2,148.9 14.3 21.4 10.0 1.9 1.3 28.2
Teledyne Technologies Incorporated 235.80 90.3 8,544.5 9,438.7 16.9 -4.7 5.5 3.2 -3.5 7.2
Ultra Electronics Holdings plc 19.56 87.9 1,380.8 1,579.5 10.8 -2.3 27.8 1.6 -1.4 -0.5
Viasat, Inc. 87.03 89.4 5,273.8 6,433.3 NM -25.3 -25.7 3.1 -7.6 6.6
Woodward, Inc. 108.92 95.1 6,765.7 7,860.9 15.7 -0.4 7.1 2.9 0.6 21.0
Median 89.4% $3,743.9 $3,910.8 12.4 x -6.1% 9.1% 1.9 x 1.1% 8.8%
Mean 87.7% $5,370.5 $6,193.2 13.0 x -17.3% 8.6% 2.6 x 1.4% 12.6%
Homeland Security Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Elbit Systems Ltd. 143.43 99.1 6,323.3 7,273.6 16.6 10.9 28.5 1.9 8.2 13.3
MSA Safety Incorporated 99.38 87.9 3,844.9 4,102.3 14.6 -9.0 0.1 3.0 -8.6 -3.0
OSI Systems, Inc. 103.59 97.6 1,875.5 2,148.9 14.3 21.4 10.0 1.9 1.3 28.2
American Outdoor Brands Corporation 8.39 52.6 457.7 648.1 6.3 -10.9 -26.0 1.0 -10.8 -23.1
Smiths Group plc 18.18 79.6 7,197.0 8,402.0 11.6 -4.6 4.8 2.1 -4.6 -17.0
Median 87.9% $3,844.9 $4,102.3 14.3 x 17.1% 10.4% 1.9 x 9.1% 9.1%
Mean 83.4% $3,939.7 $4,515.0 12.7 x 2.2% 5.5% 2.0 x -1.6% 0.5%
Total Defense Median 86.1% $5,273.8 $6,433.3 11.9 x -2.3% 4.8% 1.9 x 7.9% 8.8%
Total Defense Mean 83.0% $17,353.2 $19,508.3 12.4 x -7.5% 4.9% 2.2 x -0.8% 4.0%

SECTION 3: M&A TRANSACTIONS

SCOTT-MACON, LTD
May 2019
M&A Transactions with Disclosed Values - LTM as of May 2019
Continued on Next Page
xx xx xx xxx EV / LTM
Announced Closed Buyer Target Target Sector EV Rev EBITDA
5/27/2019 Pending The Citadel Group Limited Noventus Pty. Ltd. Defense $4 NA NA
5/23/2019 5/23/2019 Héroux-Devtek Inc. Tekalia Aeronautik Aerospace $7 NA NA
5/23/2019 5/23/2019 Nice Systems UK Limited Sira Defence and Security Limited Defense $4 10.0 x NA
5/21/2019 Pending Crane Co. CIRCOR International, Inc. Defense $1,603 1.4 x 13.1 x
5/20/2019 Pending Marvell Technology Group Ltd. Avera Semiconductor LLC Defense $740 NA NA
5/14/2019 Pending UMS Holdings Limited JEP Holdings Ltd. Aerospace $72 1.1 x 8.7 x
5/13/2019 Pending Onex Corporation WestJet Airlines Ltd. Aerospace $3,675 1.0 x 9.2 x
5/13/2019 5/13/2019 Netcompany Group A/S Q Delft B.V. Government
Services
$6 0.7 x NA
5/10/2019 Pending Mercell Holding AS EU Supply Plc Government
Services
$19 2.9 x 22.0 x
5/7/2019 Pending Macnica Chungju Co., Ltd. Answer Technology Co., Ltd. Defense $95 0.7 x 10.5 x
5/6/2019 Pending MERK Group Intermolecular, Inc. Aerospace $49 1.6 x NA
5/2/2019 5/2/2019 Wärtsilä Oyj Abp Ships Electronic Services Ltd Defense $4 0.3 x NA
5/1/2019 Pending TP Group plc Sapienza Consulting Holding BV Defense $15 0.7 x NA
5/1/2019 5/1/2019 II-VI Incorporated Redstone Aerospace Corporation Defense $30 0.0 x 0.4 x
4/22/2019 4/22/2019 Jacobs Engineering Group Inc. The KeyW Holding Corporation Government
Services
$921 1.9 x 23.8 x
4/15/2019 4/15/2019 CalAmp Corp. Synovia Solutions, LLC Defense $50 1.8 x NA
4/12/2019 Pending Lakaikorea Hancom Unimax INC. Defense $47 NA NA
4/5/2019 Pending Elbit Systems of America, LLC Night Vision business of Harris Corporation Defense $350 NA NA
4/5/2019 4/5/2019 Global Ordnance LLC Chemring Military Products, Inc. Defense $4 NA NA
4/4/2019 Pending Hainan Airlines Holding Co.,Ltd. Hainan Tianyu Flight Training Co., Ltd. Aerospace $104 NA NA
4/3/2019 4/3/2019 Tetra Tech, Inc. Global Tech Inc. Government
Services
$50 NA NA
3/1/2019 4/3/2019 Snap-on Incorporated Power Hawk Technologies, Inc. Defense $8 NA NA
4/3/2019 Pending Hainan Airlines Holding Co.,Ltd. HNA Aviation Technic Co.,Ltd. Aerospace $818 1.5 x NA
3/28/2019 Pending ZF Friedrichshafen AG WABCO Holdings Inc. Aerospace $7,342 1.9 x 12.0 x
3/27/2019 Pending Cathay Pacific Airways Limited Hong Kong Express Airways Ltd. Aerospace $628 NA NA

SCOTT-MACON, LTD
May 2019
M&A Transactions with Disclosed Values - LTM as of May 2019 (Continued)
*LGS Innovations transaction multiples based off combined acquisition including Mastodon Design
LLC from CACI press release
3/27/2019 Pending Singapore Technologies Engineering Newtec Cy NV Defense $281 2.7 x 14.6 x
3/26/2019 Pending Beijing Aerospace Changfeng Co., Ltd Aerospace Changfeng Chaoyang Power Supply
Co., Ltd.
Aerospace $226 6.2 x NA
3/26/2019 Pending Shanghai KangDa New Materials Co.,
Ltd.
Beijing Aerospace Hengrong Electromagnetic
Technology Co., Ltd.
Defense $7 NA NA
3/22/2019 3/22/2019 Cobepa S.A. Scalian SAS Defense $226 0.9 x NA
3/18/2019 3/18/2019 Curtiss-Wright Corporation Tactical Communications Group, LLC Defense $50 3.3 x NA
3/12/2019 Pending Mivtach Shamir Holdings Ltd Danya Cebus Ltd Government
Services
$144 NA NA
3/11/2019 4/3/2019 Times Publishing Limited Print Lab Pte Ltd Government
Services
$30 NA NA
3/11/2019 Pending Azul S.A. Selected Assets of Avianca Brasil Aerospace $105 NA NA
3/7/2019 4/9/2019 Shenzhen Sunshine Laser &
Electronics Technology Co., Ltd.
Chengdu Tongyu Aviation Equipment Manufacturing
Co., Ltd.
Aerospace $55 10.9 x NA
3/6/2019 3/6/2019 STS Aviation Group, Inc. Triumph Aviation Services - NAAS Division Inc. Aerospace $18 0.6 x NA
2/28/2019 3/1/2019 Vesuvius plc CCPI Inc. Aerospace $43 1.2 x 8.0 x
2/18/2019 Pending Kordsa, Incorporated Axiom Materials, Inc. Defense $182 NA NA
2/18/2019 3/4/2019 Magnetic MRO AS Direct Maintenance Holding B.V. Aerospace $9 1.1 x NA
2/13/2019 Pending King-Strong New Material Technology
Co., Ltd.
Guangdong Kuanpu Technology Co., Ltd. Defense $97 5.4 x NA
2/12/2019 2/12/2019 Advanced Technology Ventures
Limited
Graticules Limited Defense $4 1.8 x NA
2/11/2019 3/4/2019 FLIR Detection, Inc. Endeavor Robotics Defense $382 4.8 x 47.8 x
2/4/2019 Pending Undisclosed DenseLight Semiconductors Pte Ltd Defense $30 7.9 x NA
2/1/2019 2/1/2019 Ansell Limited Ringers Gloves, Inc. Defense $70 2.1 x NA
2/1/2019 2/1/2019 Fondi Italiani per le Infrastrutture SGR
SpA
Aeroporto Friuli Venezia Giulia SpA Aerospace $68 NA NA
1/31/2019 Pending NTT DATA Corporation Paygent Co.,Ltd. Government
Services
$116 1.7 x NA
1/30/2019 3/1/2019 CACI, Inc. - Federal LGS Innovations LLC and Mastodon Design LLC* Government
Services
$975 2.0 x 11.9 x
1/29/2019 2/7/2019 Pennant International Group plc Aviation Skills Partnership Limited Aerospace $9 NA NA
1/29/2019 1/29/2019 Mercury Systems, Inc. GECO Inc. Aerospace $37 NA 10.4 x
1/28/2019 1/28/2019 ECS Federal, LLC DHA Group Inc. Government
Services
$46 0.9 x NA
1/28/2019 1/28/2019 FLIR Systems, Inc. Aeryon Labs Inc. Defense $200 NA NA

SCOTT-MACON, LTD
May 2019
* StandardAero transaction multiples based off Scott-Macon estimates
1/22/2019 2/1/2019 John Bean Technologies Corporation LEKTRO, Inc. Defense $47 NA NA
1/18/2019 2/25/2019 Huntington Ingalls Industries, Inc. Fulcrum IT Services, LLC Defense $194 NA NA
1/16/2019 1/16/2019 Nistec Golan Ltd. Eltek Ltd. Defense $20 0.6 x NA
1/15/2019 2/20/2019 Zix Corporation AppRiver, LLC Defense $269 NA NA
1/15/2019 1/15/2019 GREEN4T Solucoes Ti LTDA. Aceco TI S.A. Government
Services
$63 1.5 x 16.8 x
1/13/2019 Pending Rafael Advanced Defense Systems
Ltd.
Aeronautics Ltd. Defense $237 2.4 x NA
1/11/2019 3/11/2019 Connect Airways Limited Flybe Group PLC Aerospace $129 NA 2.5 x
1/11/2019 2/22/2019 Connect Airways Limited Stobart Air Unlimited Company Aerospace $13 NA NA
1/11/2019 Pending MCS Solutions Axxerion B.V. Government
Services
$86 NA NA
1/10/2019 1/10/2019 VSE Aviation, Inc 1st Choice Aerospace Inc. Aerospace $152 NA NA
1/8/2019 2/28/2019 Comtech Telecommunications Corp. Solacom Technologies, Inc. Defense $33 NA NA
1/8/2019 1/8/2019 Paya, Inc. First Billing Services, LLC Government
Services
$58 NA NA
1/7/2019 1/7/2019 Parsons Corporation OGSystems, LLC Defense $300 NA NA
12/28/2018 12/28/2018 Cobra Aviation Services LLC Brim Equipment Leasing, Inc. Defense $2 NA NA
12/24/2018 5/14/2019 AS Air Lease Holdings 5T DAC Merah Aviation Asset Holding Limited Aerospace $768 NA NA
12/21/2018 5/15/2019 Hubline Berhad Layang Layang Aerospace Sdn Bhd Aerospace $7 0.9 x NA
12/18/2018 4/4/2019 The Carlyle Group L.P. StandardAero, Inc* Aerospace $5,000 1.7 x 12.5 x
12/17/2018 12/17/2018 Spartan Motors, Inc. Strobes-R-Us, Inc. Government
Services
$10 NA NA
12/17/2018 12/17/2018 Mayville Engineering Company, Inc. Defiance Metal Products Inc. Defense $125 NA NA
12/17/2018 12/17/2018 Dinamika Group S.A.C. JSC Technodinamika Holding Aerospace $280 NA NA
12/14/2018 12/20/2018 Heston Services Ltd Aircraft Maintenance Services Australia Pty Ltd. Aerospace $3 NA NA
12/13/2018 5/29/2019 Kongsberg Defence & Aerospace AS Aerospace Industrial Maintenance Norway AS Defense $18 1.3 x NA
12/12/2018 12/21/2018 Temenos AG Avoka Technologies Pty, Ltd. Government
Services
$245 NA NA
12/12/2018 12/12/2018 Abdul Razzaq Abdul Hameed Al-Sane
& Sons Group
New Technology Bottling Company K.S.C.C Defense $72 NA NA
12/10/2018 12/10/2018 Tyler Technologies, Inc. SceneDoc Inc. Defense $6 NA NA

SCOTT-MACON, LTD
May 2019
12/3/2018 12/31/2018 Olive Investor, L.P. Navistar Defense LLC Defense $200 NA NA
11/30/2018 2/15/2019 Kitron Inc. API Defence USA, Inc. Defense $16 0.7 x NA
11/29/2018 11/29/2018 AerSale Inc. Avborne Accessory Group, Inc. Defense $22 NA NA
11/27/2018 12/21/2018 Argenbright Holdings I, LLC DAL Global Services, LLC Aerospace $78 NA NA
11/27/2018 Pending MBO Parrot S.A. Defense $9 NA NA
11/23/2018 11/23/2018 Undisclosed Tourism International Holdings Limited Aerospace $59 0.7 x 9.2 x
11/21/2018 11/21/2018 11046896 Canada Inc. Composites and Defence Systems Business of
Morgan Advanced Materials plc
Defense $3 NA NA
11/9/2018 Pending Bristow Group Inc. Columbia Helicopters, LLC Defense $559 2.0 x 4.8 x
11/9/2018 11/28/2018 VIQ Solutions Inc. Net Transcripts, Inc. Defense $7 NA NA
11/8/2018 Pending Longview Aircraft Company of Canada
Limited
All Assets, Intellectual Property and Type Certificates
of Dash 8 Series and Q400 Program
Aerospace $300 NA NA
11/5/2018 Pending Glarun Technology Co., Ltd. Nanjing Guorui Defense System Co., Ltd. Defense $1,260 NA NA
11/5/2018 11/15/2018 TP Group plc Westek Technology Limited Defense $5 1.0 x NA
11/5/2018 Pending Glarun Technology Co., Ltd. Nanjing Guorui Defense System Co., Ltd. Defense $1,260 NA NA
11/5/2018 12/27/2018 Nitto Kogyo Corporation Kitagawa Industries Co., Ltd. Aerospace $161 1.5 x 10.8 x
11/1/2018 11/1/2018 Inission AB Simpro Holding AS Defense $5 NA NA
10/30/2018 Pending GMR Hyderabad International Airport
Limited
Hyderabad Menzies Air Cargo Pvt Ltd. Aerospace $16 NA NA
10/26/2018 12/27/2018 SK Telecom Co., Ltd. SK infosec Co., Ltd. Defense $313 1.7 x 9.6 x
10/24/2018 2/18/2019 Rubis Energie SAS KenolKobil Plc Aerospace $424 NA 11.2 x
10/22/2018 11/20/2018 QinetiQ Group plc Inzpire Group Limited Defense $31 1.8 x 11.8 x
10/22/2018 Pending Hanwha Aerospace Co., Ltd. Aviation Business of Hanwha Corporation Aerospace $147 1.1 x NA
10/19/2018 10/19/2018 Guangzhou Shipyard International
Company Limited
Guangzhou Wenchong Dockyard Co., Ltd. Aerospace $72 0.8 x NA
10/18/2018 10/18/2018 Supply Technologies Hydrapower Dynamics Limited Defense $8 NA NA
10/14/2018 Pending Harris Corporation L3 Technologies, Inc. Defense $19,216 1.9 x 13.7 x
10/11/2018 10/17/2018 SolarEdge Technologies, Inc. Kokam Co., Ltd. Defense $136 3.6 x NA
10/11/2018 10/11/2018 Quest Solution, Inc. HTS Image Processing, Inc. Defense $6 NA NA

SCOTT-MACON, LTD
May 2019
10/10/2018 3/14/2019 TransDigm Group Incorporated Esterline Technologies Corporation Defense $3,995 2.0 x 13.0 x
10/10/2018 1/10/2019 Thoma Bravo, LLC Imperva, Inc. Defense $1,815 5.2 x NA
10/9/2018 3/7/2019 Undisclosed GD Tech Aerospace $5 NA NA
10/4/2018 10/11/2018 Vaisala Oyj Leosphere, Inc. Aerospace $44 1.4 x NA
10/4/2018 2/19/2019 Smiths Group plc United Flexible, Inc. Aerospace $345 2.3 x 10.5 x
10/3/2018 Pending Kordsa, Incorporated Advanced Honeycomb Technologies Corporation Aerospace $3 NA NA
10/3/2018 10/3/2018 ShotSpotter, Inc. HunchLab Technology of Azavea Inc. Defense $2 NA NA
10/2/2018 11/9/2018 Air Transport Services Group, Inc. Omni Air International, LLC Government
Services
$845 NA 5.8 x
10/2/2018 10/2/2018 Civil Aviation Group SRL Air Moldova, S.A. Aerospace $71 NA NA
10/1/2018 10/1/2018 Extant Components Group Holdings,
Inc.
All Assets and Technical Data Rights of NavCom
Defense Electronics, Inc.
Defense $27 2.1 x NA
10/1/2018 10/1/2018 AMMO, Inc. SW Kenetics, Inc. Government
Services
$7 NA NA
9/25/2018 Pending Universal mCloud Corp. Ascent Aerosystems LLC Defense $7 NA NA
9/25/2018 9/25/2018 Guangdong Shenglu
Telecommunication Tech. Co., Ltd.
Chengdu Chuangxinda Microwave Electronics Co.,
Ltd.
Defense $85 7.1 x NA
9/18/2018 11/26/2018 Ontic Engineering and Manufacturing,
Inc.
Firstmark Corporation Defense $97 NA NA
9/18/2018 2/21/2019 Prosegur SIS Command Security Corporation Aerospace $46 NA 17.8 x
9/13/2018 4/18/2019 Vision Technologies Aerospace
Incorporated
MRA Systems, LLC Aerospace $506 1.2 x 10.0 x
9/12/2018 9/12/2018 HEXPOL AB Kirkhill-TA Co. Defense $49 1.1 x NA
9/10/2018 1/14/2019 Science Applications International
Corporation
Engility Holdings, Inc. Defense $2,450 1.3 x 13.7 x
9/6/2018 9/6/2018 Zhejiang Huazheng New Material Co.,
Ltd.
Yangzhou Maxi-CUBE Tong Composite Co., Ltd. Aerospace $6 0.4 x 6.3 x
9/6/2018 11/7/2018 Polaris Industries Inc. WSI Industries, Inc. Defense $22 0.6 x 8.7 x
9/5/2018 9/5/2018 Ideagen plc Extensible CAD Technologies, Inc. Defense $7 NA 35.0 x
8/31/2018 8/31/2018 NorthEdge Capital LLP Orbis Protect Limited Defense $18 0.5 x NA
8/22/2018 Pending Mahindra Engineering Services Inter-Informatics spol. s r.o. Defense $6 0.5 x NA
8/17/2018 10/17/2018 Shearwater Group PLC Brookcourt Solutions Limited Aerospace $40 1.4 x 15.1 x
8/9/2018 Pending Rafael Advanced Defense Systems
Ltd.
Aeronautics Ltd. Defense $124 1.2 x 12.3 x

SCOTT-MACON, LTD
May 2019
8/9/2018 Pending Cyber Security 1 AB Infonet Bilgi Teknolojileri Ticaret Anonim Sirketi Defense $10 0.4 x 6.1 x
8/8/2018 8/31/2018 One Stop Systems, Inc. Concept Development, Inc. Defense $6 NA NA
7/31/2018 8/28/2018 Eagle Aerial Systems, Inc. All Assets of Agribotix, LLC Defense $5 NA NA
7/31/2018 2/12/2019 Mission Ready Solutions Inc. Unifire, Inc. Defense $8 NA NA
7/31/2018 7/31/2018 Themis Computer, Inc. Germane Systems LC Government
Services
$45 NA 10.0 x
7/26/2018 8/9/2018 Imperva, Inc. Prevoty, Inc. Defense $141 NA NA
7/25/2018 12/4/2018 AGC Inc. Nelco Products Inc./ Neltec Inc./ Neltec SA/ Nelco
Products Pte. Ltd.
Aerospace $145 NA NA
7/16/2018 8/14/2018 Orange Business Services SAS Basefarm AS Defense $410 3.5 x NA
7/16/2018 7/16/2018 Allegheny Technologies Incorporated Addaero Manufacturing LLC Government
Services
$10 NA NA
7/13/2018 7/13/2018 TransDigm Group Incorporated SKANDIA, Inc. Aerospace $84 3.2 x NA
7/10/2018 7/10/2018 Mimecast Limited Ataata, Inc. Defense $24 NA NA
7/10/2018 10/24/2018 Aptiv PLC Winchester Interconnect Defense $682 2.7 x NA
7/10/2018 7/10/2018 First Israel Mezzanine Investors Ltd. Bird Aerosystems Ltd Aerospace $80 NA NA
7/6/2018 7/6/2018 Shenzhen SDG Information Co., Ltd. Beijing Senfetech Corporation Aerospace $58 6.5 x NA
7/6/2018 7/6/2018 Hickok Incorporated CAD Enterprises, Inc. Aerospace $21 NA NA
7/5/2018 Pending Boeing Brasil Serviços Técnicos
Aeronáuticos Ltda
Commercial Aircraft Operations of Embraer Defense $5,250 NA NA
7/2/2018 7/2/2018 L3 Technologies, Inc. Applied Defense Solutions, Inc. Aerospace $50 NA NA
6/29/2018 6/29/2018 China Aviation Oil Navires Aviation Limited Defense $8 NA NA
6/22/2018 Pending Eastern Pioneer International Aviation
Development Co., Ltd.
Shandong Hairuo General Aviation Co., Ltd. Government
Services
$13 NA NA
6/21/2018 9/12/2018 EnviroStar, Inc. Scott Equipment, Inc. Aerospace $15 NA NA
6/21/2018 9/13/2018 Goshawk Aviation Limited SKY Aviation Leasing International Limited Government
Services
$2,800 NA NA
6/19/2018 10/2/2018 Cerberus Capital Management, L.P. WFS Global SAS Defense $1,389 1.0 x NA
6/18/2018 7/2/2018 F-Secure Oyj MWR InfoSecurity Limited Defense $139 4.9 x NA
6/8/2018 7/23/2018 Gardner Aerospace Holdings Limited Northern Aerospace Limited Aerospace $59 NA NA
6/8/2018 Pending EchoStar Corporation Inmarsat Plc Defense $5,879 4.1 x 8.4 x

SCOTT-MACON, LTD
May 2019
6/7/2018 6/7/2018 Sichuan Changhong Electric Co.,Ltd. Lingbayi Electronic Group Co., Ltd. Defense $270 2.8 x NA
6/4/2018 6/4/2018 TT Electronics plc Precision, Inc. Aerospace $28 1.3 x NA
5/31/2018 7/2/2018 Ciena Corporation Packet Design, LLC Defense $40 NA NA
5/23/2018 7/12/2018 Zhejiang Tiancheng Controls Co., Ltd. Acro Aircraft Seating Ltd. Aerospace $75 NA NA
5/23/2018 7/2/2018 BBA Aviation plc EPIC Aviation, LLC Defense $88 NA NA
5/18/2018 5/18/2018 PCL EMOSS Mobile Systems B.V. Government
Services
$17 2.4 x NA
5/18/2018 11/5/2018 Utimaco GmbH Atalla HSM and ESKM Business Lines of Micro
Focus International plc
Defense $20 NA NA
5/14/2018 5/14/2018 Aero Structures Long Island, Inc. Triumph Structures-Long Island, LLC Aerospace $11 NA NA
5/9/2018 5/9/2018 ON Semiconductor Corporation SensL Technologies, Ltd. Defense $71 NA NA
5/8/2018 5/8/2018 COMSYS Holdings Corporation SYSKEN Corporation Government
Services
$89 0.3 x 7.4 x
5/8/2018 5/8/2018 Trinity Gate Limited Grandshores Technology Group Limited Government
Services
$88 2.1 x 16.7 x
5/4/2018 5/4/2018 Axon Enterprise, Inc. VIEVU LLC Defense $13 NA NA
5/3/2018 7/2/2018 OSRAM Licht AG Vixar Inc. Defense $79 NA NA
5/3/2018 Pending Tata Advanced Systems Limited Defense Business of Tata Motors Limited Aerospace $277 NA NA
5/3/2018 3/29/2019 Tata Advanced Systems Limited TAL Manufacturing Solutions Limited Aerospace $94 1.9 x 7.1 x
5/3/2018 7/10/2018 Aviation Links Ltd. Pegasus Tourism Holdings Ltd Aerospace $20 NA NA
5/2/2018 8/20/2018 M.T.I Wireless Edge Ltd. MTI Computers and Software Services Defense $17 0.5 x 6.7 x
5/2/2018 Pending Spirit AeroSystems Holdings, Inc. S.R.I.F N.V. Defense $604 NA NA
5/1/2018 5/1/2018 MSC Industrial Direct Co., Inc. All Integrated Solutions Aerospace $86 1.3 x NA
5/1/2018 6/29/2018 American Industrial Partners L-3 Communications Vertex Aerospace LLC and
Related Assets
Defense $540 NA NA
5/1/2018 5/1/2018 Tyler Technologies, Inc. Sage Data Security, LLC Aerospace $12 NA NA
Aerospace Median 1.4 x 10.2 x
Aerospace Mean 2.1 x 10.1 x
Defense Median 1.8 x 11.8 x
Defense Mean 2.4 x 13.5 x
Government Services Median 1.8 x 14.3 x
Government Services Mean 1.6 x 14.3 x

SECTION 4: RECENT CONTRACTS

SCOTT-MACON, LTD
May 2019
Top 50 Signed Contracts – May 2019
Date Signed Contractor Name Funding Agency Value ($mm) Description of Services
5/17/2019 The Johns Hopkins University Applied Physics
Laboratory (Jhu/Apl)
Dept of The Navy $2,351.0 Research, Development, and Engineering Include, But Are Not Limited To,
Missiles, Radar, Sonar, Space, Undersea Warfare, Command, Control and
Communication (C3), Anti-Air Warfare, Strike Warfare, Information Warfare,
Complex Combat Systems and The Characteristics and Limitations Unique To
The Operating Environment of Dod Systems
5/17/2019 Sikorsky, A Lockheed Martin Co. Dept of The Navy $1,126.2 Procurement of 12 Lot Ii and Lot Iii Low-Rate Initial Production Ch-53K Aircraft,
Including Programmatic Support, Logistics Support, and Peculiar Support
Equipment
5/15/2019 Southwest Valley Constructors Dept of The Army $646.0 Design and Build of Tucson Sector Barrier Wall Replacement Project
5/20/2019 General Dynamics Electric Boat (Gdeb) Dept of The Navy $497.0 Submarine Industrial Base Development and Expansion In Support of Columbia-
Class Fleet Ballistic Missile Submarines, As Well As The Nuclear Shipbuilding
Enterprise (Virginia Class and Ford Class), As Part of The Integrated Enterprise
Plan and Multi-Program Material Procurement and Production Backup Units
5/17/2019 Raytheon Co. Dept of The Army $384.0 New Production Hardware, Upgrade Kits and Spares
5/23/2019 Raytheon Co. Dept of The Air Force $355.5 Agm-88B High Speed Anti-Radiation Missiles (Harm)/Replacement Exchange In-
Kind (Reik) For Harm Control Section Modification (Hcsm)
5/2/2019 Consolidated Nuclear Security Llc Department of Energy $336.9 Operation of Miscellaneous Buildings
5/8/2019 Icf Inc. Llc Dept of The Navy $330.7 Professional Technical and Management Support Services To Establish and
Maintain Cyberspace Operations and Enable Product Lines, Programs and
Projects To Include Interoperability of Systems, Services and Capabilities At
The Tactical, Operational and Strategic Levels
5/8/2019 Leidos Inc. Dept of The Navy $304.3 Professional Technical and Management Support Services To Establish and
5/8/2019 Perspecta Engineering Inc. Dept of The Navy $303.6 Professional Technical and Management Support Services To Establish and
5/8/2019 Parsons Government Services Inc. Dept of The Navy $293.8 Professional Technical and Management Support Services To Establish and
5/8/2019 Bae Systems Technology Solutions & Services
Inc.
Dept of The Navy $276.6 Professional Technical and Management Support Services To Establish and
5/8/2019 Booz Allen Hamilton Inc. Dept of The Navy $273.9 Professional Technical and Management Support Services To Establish and
5/8/2019 Northrop Grumman Systems Corp. Dept of The Navy $273.2 Professional Technical and Management Support Services To Establish and
5/8/2019 Scientific Research Corp. Dept of The Navy $240.3 Professional Technical and Management Support Services To Establish and
5/8/2019 Science Applications International Corp. Dept of The Navy $234.7 Professional Technical and Management Support Services To Establish and
5/22/2019 Raytheon Co. Dept of The Navy $234.6 Production of 23 Joint Precision Approach and Landing Systems
5/6/2019 Vital Link Inc. Dept of The Air Force $228.8 Sustainment of Air Force Noise Suppressors
5/2/2019 Livanta Llc Centers For Medicare and Medicaid
Services
$204.6 Medical- Dependent Medicare
5/17/2019 The Boeing Co. Dept of The Navy $163.9 Service Life Modification (Slm) of Up To 10 F/A-18E/F Super Hornet Aircraft
5/10/2019 Northrop Grumman Systems Corp. Dept of The Army $163.6 Hunter Unmanned Aircraft System Fleet Support For Operations, Maintenance,
Engineering, Re-Engineering and Remanufacturing
5/28/2019 Techflow Inc. Transportation Security
Administration
$152.5 Maint/Repair/Rebuild of Equipment- Alarm, Signal, and Security Detection
Systems
5/22/2019 Raytheon Missile Systems Dept of The Navy $151.5 Integrated Logistics Support and Repairs For The Sustainment of The Aim-9X
Block Ii and Block Ii+ Missiles
5/2/2019 Keystone Peer Review Organization Inc. Centers For Medicare and Medicaid
Services
$149.9 Medical- Dependent Medicare
5/9/2019 United Launch Services Dept of The Air Force $149.4 National Security Space Launch Delta Iv Heavy Launch Services

SCOTT-MACON, LTD
May 2019
Top 50 Signed Contracts – May 2019 (Continued)
Date Signed Contractor Name Funding Agency Value ($mm) Description of Services
5/29/2019 Timken Gears And Services Inc. Dept of The Navy $147.4 Main Reduction Gear Shipsets For Arleigh Burke Class Guided Missile
Destroyers
5/15/2019 Bfbc Llc Dept of The Army $141.8 Design and Build of El Centro Project 1 and Yuma Project 1 Vehicle and
Pedestrian Barrier Replacement
5/13/2019 The Boeing Co. Dept of The Navy $139.8 Procurement of Up To 12,000 Additional Precision Laser Guidance Sets For
The Laser Joint Direct Attack Munition
5/29/2019 Dyncorp International Llc Dept of The Army $129.7 Logistics Support Services
5/21/2019 Alfab Inc. Dept of The Navy $127.9 Provide New and Refurbished Airfield Matting 2 (Am2) Packages In Accordance
With Naval Air Systems Command Drawing Packages
5/21/2019 S.J. Amoroso Construction Co. Inc. Dept of The Army $122.5 Community Living Center At Veterans Affairs Long Beach System Main
Campus
5/30/2019 Pivotal Software Inc. Dept of The Air Force $121.4 Support of Air Force Life Cycle Management Center Detachment 12, Kessel
Run
5/16/2019 Alutiiq Information Management Llc. Dept of The Navy $115.7 Logistics Support Services and Technical Publications In Support of The
Logistics Product Data Division
5/7/2019 Hochtief Ag Centers For Disease Control and
Prevention
$111.0 Architect and Engineering- Construction: Parking Facilities
5/13/2019 Atkinson/Clark A Joint Venture Public Buildings Service $102.4 Construction of Other Administrative Facilities and Service Buildings
5/10/2019 Raytheon Missiles Systems Dept of The Army $101.3 Procurement of Tactically-Launched Optically-Tracked Wireless-Guided
Missiles
5/7/2019 Cayuse Technologies Llc Department of State $100.0 Support- Professional: Program Management/Support
5/15/2019 Mitchco International Inc. Dept of The Army $94.3 Full Food Services and Dining Facility Attendants At Fort Sill, Oklahoma
5/30/2019 Raytheon Solipsys Corp. Dept of The Navy $92.8 Licenses and Lifecycle Support Activities Needed To Upgrade and Sustain The
Multi Source Correlator Tracker and Tactical Display Framework Software
Applications Within The Common Aviation Command and Control Software
Baseline
5/15/2019 General Dynamics Ordnance And Tactical
Systems
Dept of The Army $92.4 120Mm Munition High Explosive With Tracer Tank Ammunition Cartridges
5/2/2019 Black River Systems Co. Dept of The Air Force $88.7 Operational Counter-Small Unmanned Aircraft Systems (S-Uas) Open
Systems Architecture Software/Hardware Systems
5/7/2019 Lockheed Martin, Rotary And Mission Systems Dept of The Navy $84.9 Aegis Combat System Engineering, Architecture, Development, Integration and
Test; Naval Integrated Fire Control-Counter Air Integration and Test; and
Training, Studies and Computer Program Maintenance
5/23/2019 Bae Systems Technology Solutions And
Services Inc.
Dept of The Navy $84.3 Up To 898,320 Man-Hours of Direct Labor Engineering Services In Support of
The Naval Air Warfare Center Aircraft Division'S Special Communications
Mission Solutions Division To Perform Projects For Special Operations Forces
Command, Control, Communications, Computers, Combat Systems, and
Intelligence, Surveillance, and Reconnaissance Systems
5/7/2019 G2 Software Systems Inc. Dept of The Navy $83.5 Command and Control (C2) Technologies and Capabilities In The Areas of
Innovative Science and Technology Research, Systems Engineering,
Architecture, Design, Development, Integration, Testing, Configuration
Management, Quality Assurance, and Implementation and Support of C2 Net-
Centric Military Operations
5/7/2019 Geocent Dept of The Navy $83.3 Command and Control (C2) Technologies and Capabilities In The Areas of
Innovative Science and Technology Research, Systems Engineering,
Architecture, Design, Development, Integration, Testing, Configuration
Management, Quality Assurance, and Implementation and Support of C2 Net-
Centric Military Operations
5/17/2019 Greenfield Engineering Corp. Dept of The Navy $82.8 Design, Development, Manufacture, Integration, Update and Test of Avionics
Systems From Inception To Disposal
5/2/2019 Fermi Research Alliance Llc Department of Energy $82.8 Operation of Government-Owned Contractor-Operated R&D Facilities
5/9/2019 Identity Theft Guard Solutions Llc Office of Personnel Management $82.7 Support- Management: Financial
5/2/2019 Northrop Grumman Systems Corp. Mission
Systems
Dept of The Air Force $82.3 Enhanced Polar System Recapitalization (Eps-R) Control and Planning
Segment (Caps)
5/13/2019 Applied Research Laboratory, University of
Hawaii
Dept of The Navy $77.2 Research, Development, Engineering, and Test and Evaluation For Programs
Throughout The Department of Defense
Total Top 50 $12,399.6
Total Other Signed in May $10,420.0

SCOTT-MACON, LTD
May 2019
Contract Overview by Agency and NAICS Code – May 2019*
Top 20 Agencies Ranked by Total Contract Value Signed in May
Top 20 NAICS Codes Ranked by Total Contract Value Signed in May
* Only includes contracts with value greater than $150,000
Rank Funding Agency Contract Value ($mm) # of Contracts
1 Dept of The Navy 10,770$ 152
2 Dept of The Army 3,107 81
3 Dept of The Air Force 1,887 44
4 Department of Veterans Affairs 903 814
5 Department of Energy 690 36
6 Centers For Medicare and Medicaid Services 522 43
7 Federal Acquisition Service 393 286
8 Transportation Security Administration 332 54
9 Public Buildings Service 269 146
10 Federal Aviation Administration 261 226
11 U.S. Immigration and Customs Enforcement 260 57
12 Department of State 223 199
13 Federal Emergency Management Agency 197 63
14 Centers For Disease Control and Prevention 182 87
15 U.S. Customs and Border Protection 161 86
16 Agency For International Development 156 66
17 Office of Procurement Operations 130 97
18 U.S. Coast Guard 123 162
19 Federal Bureau of Investigation 121 55
20 Office of Personnel Management 120 19
Total Top 20 by Funding Agency 20,805$ 2,773
Rank NAICS Code Description Contract Value ($mm) # of Contracts
1 Other Computer Related Services 4,870$ 427
2 Research And Development In The Social Sciences And Humanities 2,758 36
3 Commercial And Institutional Building Construction 1,487 249
4 Aircraft Manufacturing 1,456 12
5 Other Support Activities For Air Transportation 1,208 52
6 Facilities Support Services 896 128
7 Guided Missile And Space Vehicle Manufacturing 887 11
8 Industrial Nonbuilding Structure Construction 858 5
9 Ship Building And Repairing 797 57
10 Computer Systems Design Services 604 249
11 Engineering Services 500 272
12 Other Management Consulting Services 368 12
13 Other Heavy And Civil Engineering Construction 319 34
14 Administrative Management And General Management Consulting Services 293 311
15 All Other Professional, Scientific, And Technical Services 283 126
16 Offices Of Physicians (Except Mental Health Specialists) 250 36
17 Other Professional Equipment And Supplies Merchant Wholesalers 249 18
18 Process, Physical Distribution, And Logistics Consulting Services 237 24
19 Other Guided Missile And Space Vehicle Parts And Auxiliary Equipment Manufacturing 225 2
20 Food Service Contractors 181 22
Total Top 20 by NAICS Code Description 18,725$ 2,083

SECTION 5: KEY AEROSPACE & DEFENSE STATS

SCOTT-MACON, LTD
May 2019
Key Aerospace & Defense Stats
ASM – Global (in thousands) # of Passengers - Global
RSM – Global (in thousands) Load Factor % - Global
Commercial Aerospace Orders
Source: FAA
LTMas of 4/2019 LTMas of 4/2018 YoY % Change 4/2019 3/2019 2/2019 1/2019 12/2018 11/2018 10/2018 9/2018 8/2018 7/2018 6/2018 5/2018 4/2018
Narrowbody Unit Orders 1,088 1,971 -44.8% -4 6 -20 20 556 78 66 69 95 15 174 33 62
Boeing 534 833 -35.9% -4 3 1 25 181 41 0 32 90 15 126 24 0
737 534 833 -35.9% -4 3 1 25 181 41 0 32 90 15 126 24 0
Airbus 554 1,138 -51.3% 0 3 -21 -5 375 37 66 37 5 0 48 9 62
A320 554 1,138 -51.3% 0 3 -21 -5 375 37 66 37 5 0 48 9 62
Widebody Unit Orders 241 281 -14.2% 0 77 -61 10 14 10 24 33 4 20 75 35 26
Boeing 193 247 -21.9% 0 40 4 18 22 7 6 33 4 12 28 19 47
787 86 165 -47.9% 0 20 0 18 0 0 5 15 3 10 0 15 47
777 66 56 17.9% 0 20 0 0 17 6 1 0 1 2 15 4 0
767 37 7 428.6% 0 0 4 0 1 1 0 18 0 0 13 0 0
747 4 19 -78.9% 0 0 0 0 4 0 0 0 0 0 0 0 0
Airbus 60 34 76.5% 0 37 -65 -8 4 3 18 0 0 8 47 16 -21
A350 99 1 9800.0% 0 37 0 0 4 0 0 0 0 8 35 15 -22
A380 -31 14 NM 0 0 -23 -8 0 0 0 0 0 0 0 0 0
A330 34 19 78.9% 0 0 0 0 0 3 18 0 0 0 12 1 1
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
ASM MoM Growth %
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
RPM MoM Growth %
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Load Factor % MoM Growth %
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000
MoM Growth % # of Passengers

SCOTT-MACON, LTD
May 2019
Key Aerospace & Defense Stats
Global Business Jet Traffic
(Flights in Thousands)
4/2019 Global Business Jet Traffic
by Type (394K Flights)
Global Business Jet Deliveries
2018 Global Business Jet Deliveries
By Market (798 Deliveries)
U.S. Defense Budget
* Base Budget Request
Source: GAMA, Office of the Under Secretary of Defense
84%
17%
Domestic International
518
592
750
887
1,137
1,317
874
767
696 672 678 722 718
667 676
798
0
200
400
600
800
1,000
1,200
1,400
60.0%20.0%
10.2%
5.8%
4.0%
North America Europe Asia-Pacific Latin America Middle East & Africa
FY 2019 vs FY 2020
By Appropriation Title ($ in billions) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020* Dollar Δ % Δ
Military Personnel $ 135.3 $ 135.4 $ 141.7 $ 150.7 $ 155.8 $ 5.0 3.3%
Operation and Maintenance 197.5 197.1 223.3 278.8 292.7 13.9 5.0%
Procurement 110.7 110.7 115.0 147.3 143.1 (4.2) -2.9%
RDT&E 68.8 69.6 82.7 95.3 104.3 9.0 9.5%
Military Construction/Family Housing 6.9 6.5 8.4 11.3 21.1 9.8 87.4%
Other 2.5 2.4 3.5 1.7 1.4 (0.2) -12.7%
Total $ 521.7 $ 521.8 $ 574.5 $ 685.0 $ 718.3 $ 33.4 19.2%
FY 2019 vs FY 2020
By Military Department ($ in billions) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020* Dollar Δ % Δ
Army $ 123.3 $ 122.9 $ 137.1 $ 178.9 $ 191.4 $ 12.5 7.0%
Navy 159.3 159.1 171.5 195.6 205.6 9.9 5.1%
Air Force 145.7 146.5 165.5 192.9 204.8 11.8 6.1%
Defense Wide 93.4 93.3 100.4 117.6 116.6 (0.9) -0.8%
Total $ 521.7 $ 521.8 $ 574.5 $ 685.0 $ 718.3 $ 33.4 19.2%
388
394
352
361
386
402
367
390390
365
376
390
380
-2%
0%
2%
4%
6%
8%
10%
320
330
340
350
360
370
380
390
400
410
# of Flights MoM Growth %

SECTION 6: ABOUT SCOTT-MACON

SCOTT-MACON, LTD
May 2019
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
Undisclosed Undisclosed $8,000,000 Undisclosed $80,000,000 $590,000,000
Sale to Sale to Senior Secured Notes & Sale to Initial Public Sale to
Preferred Shares with Offering
Joint Bookrunner
£115,000,000 $38,000,000 Undisclosed $61,000,000 $268,000,000 $270,000,000
a portfolio company of
Acquisition of Hastings Equity Partners Sale to Equity Financing for Debt Financing for Acquisition of
and Admiralty Partners, Inc. Acquisition of Acquisition of
Sale to
Undisclosed £80,000,000 $66,000,000 $380,000,000 Undisclosed
Sale of Securement Sale to Sale to Acquisition of Sale to
Division to

SCOTT-MACON, LTD
May 2019
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 and Government Services Monthly Update

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