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

SCOTT-MACON, LTD
February 2018
2© Copyright 2018 SCOTT-MACON, LTD.
We are pleased to present you with the February 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
February 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 February 2018 LTM as of February 2018
87
89
91
93
95
97
99
101
103
Jan-31-2018
Feb-02-2018
Feb-04-2018
Feb-06-2018
Feb-08-2018
Feb-10-2018
Feb-12-2018
Feb-14-2018
Feb-16-2018
Feb-18-2018
Feb-20-2018
Feb-22-2018
Feb-24-2018
Feb-26-2018
Feb-28-2018
S&P 500 SM Aerospace
SM Government Services SM Defense
 0.1 %
 -2.3 %
 0.8 %
 -3.9 %
74
84
94
104
114
124
134
144
154
164
174
Feb-28-2017
Mar-31-2017
Apr-30-2017
May-31-2017
Jun-30-2017
Jul-31-2017
Aug-31-2017
Sep-30-2017
Oct-31-2017
Nov-30-2017
Dec-31-2017
Jan-31-2018
Feb-28-2018
S&P 500 SM Aerospace
SM Government Services SM Defense
 42.7 %
 60.8 %
 15.2 %
 14.0 %
8.50x
9.00x
9.50x
10.00x
10.50x
11.00x
11.50x
12.00x
12.50x
13.00x
13.50x
Jan-31-2018
Feb-02-2018
Feb-04-2018
Feb-06-2018
Feb-08-2018
Feb-10-2018
Feb-12-2018
Feb-14-2018
Feb-16-2018
Feb-18-2018
Feb-20-2018
Feb-22-2018
Feb-24-2018
Feb-26-2018
Feb-28-2018
SM Aerospace SM Government Services SM Defense
 2.5 %
 4.7 %
 -4.0 %
7.50x
8.50x
9.50x
10.50x
11.50x
12.50x
13.50x
Feb-28-2017
Mar-31-2017
Apr-30-2017
May-31-2017
Jun-30-2017
Jul-31-2017
Aug-31-2017
Sep-30-2017
Oct-31-2017
Nov-30-2017
Dec-31-2017
Jan-31-2018
Feb-28-2018
SM Aerospace SM Government Services SM Defense
 4.0 %
 11.7 %
 17.7 %
17 13
30
28
9
6
56
47
0
10
20
30
40
50
60
70
28-Feb-17 28-Feb-18
NumberofDeals
Aerospace Defense Government Services
 -33.3 %
 -6.7 %
 -23.5 %
 -8.0 %
 -1.7 %
 -24.3 %
305
231
302
297
112
103
719
631
0
100
200
300
400
500
600
700
800
LTM-Feb-17 LTM-Feb-18
NumberofDeals
Aerospace Defense Government Services

SECTION 2: PUBLIC COMPARABLES

SCOTT-MACON, LTD
February 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 $120.07 98.4% $92,987.9 $88,962.3 15.2 x -49.0% -44.3% 1.1 x 0.6% 41.6%
Boeing Company 362.21 97.5 213,157.1 214,339.1 17.7 1.0 39.1 2.3 2.8 NA
Bombardier Inc. 3.17 97.6 6,954.8 14,915.6 18.1 -21.8 -2.9 0.9 -3.1 40.5
Embraer S.A. 6.71 93.0 4,915.0 6,483.8 10.7 6.5 -23.0 1.1 6.3 31.6
Median 97.5% $49,971.4 $51,938.9 16.4 x 19.0% 17.6% 1.1 x 2.2% 36.4%
Mean 96.6% $79,503.7 $81,175.2 15.4 x 11.8% -14.1% 1.3 x 1.0% 57.8%
Aerospace Systems / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AAR Corp. $42.58 96.2% $1,453.5 $1,616.2 14.0 x 4.7% 33.0% 0.9 x 4.3 15.9%
AMETEK, Inc. 75.74 95.8 17,521.3 19,049.3 17.1 -5.2 22.8 4.4 -6.7 21.4
Astronics Corporation 38.55 78.0 1,079.8 1,333.7 18.4 3.7 64.3 2.1 -11.6 21.8
CAE Inc. 18.47 98.7 4,956.0 5,561.5 12.9 6.4 18.0 2.6 3.4 10.0
Crane Co. 92.31 89.9 5,505.8 5,543.1 11.2 -7.1 13.8 2.0 -0.7 20.9
Esterline Technologies Corporation 73.90 72.0 2,196.4 2,641.3 9.0 -0.8 -19.1 1.3 -3.9 -18.4
HEICO Corporation 85.60 96.5 9,117.6 9,853.3 NM 11.6 56.4 6.2 7.5 58.1
Héroux-Devtek Inc. 11.90 97.0 430.3 477.0 11.7 7.8 17.7 1.5 2.1 6.7
Meggitt PLC 6.24 85.4 4,839.3 6,170.4 8.3 -5.2 -31.5 2.2 -6.9 -11.2
Moog Inc. 83.83 89.2 2,999.0 3,565.4 11.0 -6.0 17.2 1.4 -6.7 10.4
MTU Aero Engines AG 168.01 87.8 8,652.5 8,522.9 9.6 -13.1 0.4 1.4 -4.6 12.5
Textron Inc. 59.85 96.2 15,667.1 18,500.1 12.5 0.5 29.1 1.3 -5.5 17.3
TransDigm Group Incorporated 288.31 89.7 15,048.7 25,951.8 15.6 -6.7 1.1 7.3 -7.0 3.3
Woodward, Inc. 70.83 79.3 4,339.9 4,903.8 14.1 -7.7 -5.6 2.3 -5.0 -6.2
Zodiac Aerospace 30.49 89.7 8,549.8 9,584.8 NM -0.1 0.6 1.5 -0.1 -9.4
Median 89.7% $4,956.0 $5,561.5 12.5 x 2.6% 13.2% 2.0 x -7.1% 17.8%
Mean 89.4% $6,823.8 $8,218.3 12.7 x -2.2% 8.2% 2.6 x -1.9% 11.9%
Aerospace Structures Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
CPI Aerostructures, Inc. $8.20 81.6% $72.7 $104.7 9.2 x -5.6% NA 1.3 x -7.3% 14.7%
Ducommun Incorporated 28.14 79.1 318.8 532.7 11.5 5.9 9.5 1.0 -2.7 5.4
GKN plc 6.04 97.4 10,363.3 11,643.5 9.3 33.5 31.0 0.9 3.7 11.6
Hexcel Corporation 67.28 97.1 6,044.6 6,794.4 14.8 -1.4 18.9 3.4 -1.1 21.4
Kaman Corporation 61.22 95.8 1,702.8 2,065.1 13.0 -0.9 22.6 1.1 -4.3 16.0
Latécoère S.A. 5.98 81.6 563.9 607.2 18.1 -10.8 NA 0.8 -11.7 10.5
Magellan Aerospace Corporation 15.71 91.9 914.7 990.4 8.3 -1.5 10.7 1.3 -2.4 5.7
Senior plc 4.01 95.1 1,676.5 1,890.5 11.3 -3.8 38.8 1.3 -2.2 27.6
Spirit AeroSystems Holdings, Inc. 91.29 86.8 10,451.7 11,179.9 14.2 -10.7 70.0 1.6 -10.2 38.0
Triumph Group, Inc. 27.95 80.3 1,388.3 2,698.6 7.7 -1.5 NA 0.8 -3.9 2.4
Median 89.3% $1,532.4 $1,977.8 11.4 x 5.0% 24.6% 1.2 x -3.7% 19.1%
Mean 88.7% $3,349.7 $3,850.7 11.8 x 6.1% 25.9% 1.4 x -3.6% 17.0%
Total Aerospace Median 91.9% $4,915.0 $5,561.5 12.5 x 4.7% 17.7% 1.4 x -4.2% 13.2%
Total Aerospace Mean 90.2% $15,650.7 $16,775.2 12.8 x 3.3% 8.8% 2.0 x -2.0% 16.2%
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. $37.93 94.2% $5,502.2 $7,045.0 12.1 x -4.6% -4.2% 1.2 x -5.5% -1.2%
CACI International Inc 149.05 93.5 3,670.8 4,766.9 12.8 4.1 9.2 1.1 1.8 5.2
CGI Group Inc. 58.55 98.7 16,608.2 17,910.4 12.6 6.1 16.8 2.1 5.4 13.9
CSRA Inc. 40.53 99.2 6,643.9 9,586.9 11.4 29.6 11.8 1.9 14.1 26.5
Cyient Limited 9.76 92.9 1,098.7 963.7 12.8 -1.1 26.8 1.7 -2.2 22.8
Engility Holdings, Inc. 27.31 76.6 1,005.7 1,952.8 10.3 2.2 -15.3 1.0 -0.1 -4.6
ICF International, Inc. 57.00 96.3 1,061.4 1,255.8 11.3 5.7 18.3 1.0 0.1 13.1
KEYW Holding Corp. 7.51 71.5 369.6 618.5 NM 6.9 NA 1.6 6.7 -13.2
Leidos Holdings, Inc. 63.31 92.8 9,588.9 12,322.9 11.9 -3.3 -29.5 1.2 -5.2 -22.0
ManTech International Corp. 56.37 90.6 2,211.4 2,232.9 16.8 12.9 52.4 1.3 14.0 53.8
MAXIMUS, Inc. 66.98 92.1 4,368.7 4,190.3 11.2 -2.8 7.7 1.7 -4.1 5.5
Navigant Consulting, Inc. 19.88 81.2 895.9 1,020.4 8.1 -6.4 -5.5 1.1 -8.6 -16.4
QinetiQ Group plc 2.83 63.5 1,579.7 1,310.3 5.6 -0.5 -40.1 1.2 -4.3 -32.7
Science Applications International Corp. 72.39 80.8 3,095.8 4,001.8 13.2 -4.4 -2.5 0.9 -5.8 -11.5
Serco Group plc 1.26 73.6 1,367.1 1,616.6 10.1 -15.3 9.6 0.4 -2.7 -16.7
Vectrus, Inc. 27.29 76.7 303.3 313.4 7.2 -9.9 14.2 0.3 -11.9 14.7
VSE Corp. 48.50 81.0 525.7 726.7 9.1 -1.5 0.5 0.9 -1.9 -7.0
Median 90.6% $1,579.7 $1,952.8 11.4 x -2.8% 10.3% 1.2 x -1.6% -1.2%
Mean 85.6% $3,523.3 $4,225.6 11.0 x 0.7% 2.9% 1.2 x 1.8% 0.1%
Engineering & Construction Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AECOM $35.51 89.0% $5,652.1 $8,967.5 9.5 x -4.3% 3.8 0.5 x -9.0% -9.6%
Fluor Corp. 56.90 91.6 7,960.7 7,764.6 11.6 1.5 36.8 0.4 -7.5 0.9
Jacobs Engineering Group Inc. 61.06 84.6 8,650.5 10,276.6 15.5 5.9 52.2 1.0 5.4 63.8
KBR, Inc. 15.14 69.8 2,123.7 2,184.7 6.9 -58.3 -64.9 0.5 -19.3 -2.6
Tetra Tech, Inc. 48.95 91.7 2,733.9 3,008.9 13.2 -1.4 7.8 1.4 -2.0 12.0
Median 89.0% $5,652.1 $7,764.6 11.6 x -13.3% 13.4% 0.5 x -18.4% -2.6%
Mean 85.3% $5,424.2 $6,440.4 11.3 x -14.0% -5.2% 0.8 x -3.4% 14.4%
Total Government Services Median 89.8% $2,472.6 $2,620.9 11.4 x -4.0% 11.7% 1.1 x 17.3% 4.5%
Total Government Services Mean 85.5% $3,955.4 $4,729.0 11.1 x -3.4% 0.8% 1.1 x 1.0% 2.1%
* As of Wednesday, February 28, 2018

SCOTT-MACON, LTD
February 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 $7.99 84.9% $25,456.0 $26,512.8 9.4 x -8.8% -15.5% 1.0 x -5.0% -13.1%
Boeing Company 362.21 97.5 213,157.1 214,339.1 17.7 1.0 39.1 2.3 2.8 NA
General Dynamics Corporation 222.45 96.9 66,052.9 67,051.9 14.5 0.0 17.1 2.2 -1.3 14.9
Leonardo S.p.a. 10.81 54.9 6,207.0 11,362.1 5.4 -5.1 -20.9 0.8 -13.0 -19.9
Lockheed Martin Corporation 352.44 97.1 100,093.0 111,569.0 16.4 3.2 19.3 2.2 -0.6 14.8
Northrop Grumman Corporation 350.04 97.4 60,937.6 64,978.6 17.2 2.6 31.8 2.5 3.2 29.5
Raytheon Company 217.51 97.6 62,752.9 64,914.9 17.1 5.7 32.6 2.6 2.7 29.7
Thales S.A. 111.77 91.1 23,688.2 21,204.1 9.9 1.5 -5.4 1.1 1.7 -3.7
Median 97.0% $61,845.3 $64,946.8 15.5 x 1.7% 23.2% 2.2 x -0.7% 40.8%
Mean 89.7% $69,793.1 $72,741.6 13.5 x 0.9% 15.4% 1.8 x 0.4% 20.1%
Defense Systems Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Aerojet Rocketdyne Holdings, Inc. $27.00 74.5% $2,027.7 $2,089.1 11.2 x -3.5% -6.5% 1.6 x 23.6% 46.2%
AeroVironment, Inc. $49.72 84.3% $1,167.3 $939.5 NM -3.9% NA 1.3 x -62.5% -26.1
Cobham plc 1.57 75.5 3,722.8 4,360.2 NM NM NM 1.3 -28.7 -14.6
Cubic Corporation 61.40 94.5 1,671.5 1,910.3 NM NM NM 3.7 NM NM
Curtiss-Wright Corporation 134.98 97.1 5,960.0 6,299.0 14.3 -0.9 21.4 3.7 29.6 65.1
FLIR Systems, Inc. 49.10 92.9 6,821.0 6,722.6 17.5 -7.4 19.9 1.7 -59.4 -46.7
Huntington Ingalls Industries, Inc. 262.01 94.7 11,734.3 12,312.3 11.6 10.7 13.8 1.5 -9.4 -1.7
Kongsberg Gruppen ASA 22.19 99.4 2,659.0 2,712.0 16.7 5.5 5.5 2.0 37.9 62.9
L3 Technologies, Inc. 207.55 94.9 16,235.4 18,987.4 14.2 -4.0 8.6 1.8 -11.4 18.9
Orbital ATK, Inc. 132.06 98.1 7,632.8 8,698.8 12.7 -6.4 15.7 3.8 NM NM
Rockwell Collins, Inc. 137.72 98.6 22,578.2 29,378.2 18.0 -0.4 52.0 1.6 -59.6 -43.1
Safran SA 110.99 98.4 49,099.2 49,454.5 15.7 58.9 NA 2.5 11.4 35.1
Textron Inc. 59.85 96.2 15,667.1 18,500.1 12.5 0.5 29.1 1.3 -5.5 17.3
Median 94.9% $6,821.0 $6,722.6 14.3 x 1.8% 21.0% 1.7 x -12.9% 10.2%
Mean 92.2% $11,305.9 $12,489.5 14.4 x 3.1% 25.4% 2.1 x -3.1% 24.7%
Defense Electronics / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AMETEK, Inc. $75.74 95.8% $17,521.3 $19,049.3 17.1 x -5.2% 22.8% 4.4 x -6.7% 21.4%
Chemring Group plc 2.66 92.6 743.6 854.0 7.8 -6.9 -18.2 1.1 -1.9 -14.4
Comtech Telecommunications Corp. 22.10 92.5 521.7 673.9 10.9 1.7 8.6 1.3 2.4 31.2
Crane Co. 92.31 89.9 5,505.8 5,543.1 11.2 -7.1 13.8 2.0 -0.7 20.9
Ducommun Incorporated 28.14 79.1 318.8 532.7 11.5 5.9 9.5 1.0 -2.7 5.4
Elbit Systems Ltd. 143.04 92.4 6,115.0 6,594.0 15.4 -3.5 22.4 2.0 0.3 17.9
Harris Corporation 156.15 97.0 18,539.7 22,036.7 16.2 -1.7 44.4 3.7 2.7 53.7
Héroux-Devtek Inc. 11.90 97.0 430.3 477.0 11.7 7.8 17.7 1.5 2.1 6.7
Kratos Defense & Security Solutions, Inc. 12.05 86.5 1,247.3 1,412.0 NM -3.7 -42.8 1.9 4.0 28.4
Meggitt PLC 6.24 85.4 4,839.3 6,170.4 8.3 -5.2 -31.5 2.2 -6.9 -11.2
Mercury Systems, Inc. 45.97 83.6 2,217.7 2,185.7 NM -1.7 -21.5 4.9 -4.7 -14.9
Moog Inc. 83.83 89.2 2,999.0 3,565.4 11.0 -6.0 17.2 1.4 -6.7 10.4
OSI Systems, Inc. 63.14 65.3 1,200.9 1,431.4 8.4 -13.5 -43.6 1.4 -9.7 -25.3
Teledyne Technologies Incorporated 185.95 92.3 6,637.8 7,639.8 16.2 -6.1 9.7 2.9 -12.1 22.8
Ultra Electronics Holdings plc 21.94 70.8 1,699.9 2,059.2 11.7 3.4 -13.1 1.9 2.6 -14.5
Viasat, Inc. 69.79 87.0 4,109.6 4,971.4 NM 13.5 68.9 3.2 -5.3 5.7
Woodward, Inc. 70.83 79.3 4,339.9 4,903.8 14.1 -7.7 -5.6 2.3 -5.0 -6.2
Median 89.2% $2,999.0 $3,565.4 11.6 x 0.8% -3.7% 2.0 x -3.5% 5.1%
Mean 86.8% $4,646.3 $5,300.0 12.3 x -3.3% -0.7% 2.3 x -3.7% 5.9%
Homeland Security Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Analogic Corporation 83.50 93.3 1,042.5 895.1 NM 0.8 39.5 1.9 -2.2 10.5
Elbit Systems Ltd. 143.04 92.4 6,115.0 6,594.0 15.4 -3.5 22.4 2.0 0.3 17.9
MSA Safety Incorporated 80.63 93.4 3,082.2 3,431.0 14.3 -7.8 -1.2 2.9 -3.5 9.4
OSI Systems, Inc. 63.14 65.3 1,200.9 1,431.4 8.4 -13.5 -43.6 1.4 -9.7 -25.3
American Outdoor Brands Corporation 9.00 36.7 487.0 708.1 4.6 -18.3 -2.0 1.0 -19.9 -31.3
Smiths Group plc 22.04 94.1 8,722.1 10,076.9 11.4 -0.1 -13.8 2.2 -0.9 -4.9
Median 92.9% $2,141.5 $2,431.2 11.4 x -0.1% -17.8% 1.9 x -1.4% 7.7%
Mean 79.2% $3,441.6 $3,856.1 10.8 x -7.1% -13.5% 1.9 x -3.9% -2.6%
Total Defense Median 92.5% $5,732.9 $6,234.7 12.7 x 2.5% 4.0% 1.9 x -4.7% 14.3%
Total Defense Mean 87.9% $18,294.5 $19,489.4 12.9 x -1.0% 7.6% 2.1 x -2.9% 11.8%
* As of Wednesday, February 28, 2018

SECTION 3: M&A TRANSACTIONS

SCOTT-MACON, LTD
February 2018
M&A Transactions with Disclosed Values - LTM as of February 2018
Continued on Next Page
xx xx xx xxx EV / LTM
Announced Closed Buyer Target Target Sector EV Rev EBITDA
2/27/2018 Pending Héroux-Devtek Inc. Beaver Aerospace & Defense, Inc. Defense $24 0.8 x NA
2/26/2018 Pending Rakon Limited Centum Rakon India Private Limited Defense $11 0.9 x 7.1 x
2/23/2018 Pending KBRwyle Technology Solutions,
LLC
SGT, Inc. Government
Services
$355 NA NA
2/23/2018 2/23/2018 Northern Pacific Group Pipeworks Inc Defense $18 1.4 x NA
2/21/2018 2/28/2018 Exchange Income Corporation CANLink Global Inc. Aerospace $43 NA 7.2 x
2/8/2018 Pending First Israel Mezzanine Investors
Ltd.
Aitech Defense Systems, Inc. Defense $30 NA NA
2/6/2018 Pending Proofpoint, Inc. Wombat Security Technologies, Inc. Defense $225 NA NA
2/1/2018 2/1/2018 AMETEK, Inc. FMH Aerospace Corp. Defense $235 4.7 x NA
1/31/2018 Pending On Assignment, Inc. ECS Federal, Inc. Defense $775 NA NA
1/28/2018 Pending AFCON Holdings Ltd. DM Government
Services
$16 NA NA
1/20/2018 1/31/2018 Oil and Natural Gas Corporation
Limited
Hindustan Petroleum Corporation Limited Aerospace $14,313 0.5 x 7.0 x
1/18/2018 2/15/2018 Compass Diversified Holdings
LLC
Foam Fabricators, Inc Defense $248 0.3 x 3.7 x
1/17/2018 1/17/2018 Onyx Scientific Limited Pisgah Labs, Inc. Government
Services
$10 NA 8.5 x
1/16/2018 12/21/2017 Hammond, Kennedy, Whitney &
Company Inc.
GCR Inc. Aerospace $124 NA NA
1/12/2018 Pending Melrose Industries PLC GKN plc Aerospace $10,758 0.8 x 7.1 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 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 1/25/2018 Catea Co., Ltd Pantom Co., Ltd. Aerospace $7 0.4 x NA
12/21/2017 2/1/2018 Mercury Systems, Inc. Themis Computer, Inc. Defense $180 NA NA

SCOTT-MACON, LTD
February 2018
M&A Transactions with Disclosed Values - LTM as of February 2018 (Continued)
12/21/2017 1/26/2018 Perusa Partners SCHROTH Safety Products GmbH Defense $61 NA NA
12/21/2017 12/15/2017 Mistras Group, Inc. West Penn Non-Destructive Testing, LLC Defense $74 NA NA
12/20/2017 1/31/2018 EM-Tech.CO., LTD. BSL Co., Ltd. Government
Services
$11 NA NA
12/18/2017 12/15/2017 ConvergeOne, Inc. AOS, a ConvergeOne Company Defense $66 NA NA
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
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
11/7/2017 10/31/2017 BNP Paribas Développement SA,
SCR
Faure Herman SAS Aerospace $25 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

SCOTT-MACON, LTD
February 2018
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
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 12/31/2017 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

SCOTT-MACON, LTD
February 2018
9/19/2017 9/19/2017 AAR Corp. Premier Aviation Overhaul Center, Inc., Two
Aircraft Maintenance, Repair and Overhaul
Aerospace $26 NA 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. Defense $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 1/29/2016 Electronic Technologies Group,
Inc.
AeroAntenna Technology, Inc. Aerospace $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
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

SCOTT-MACON, LTD
February 2018
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 Pending 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.
7/11/2017 7/24/2017 Symantec Corporation Skycure Ltd. Defense $205 NA NA
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 7/28/2017 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
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

SCOTT-MACON, LTD
February 2018
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 7/3/2017 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 2.4 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
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

SCOTT-MACON, LTD
February 2018
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
Aerospace Median 1.9 x 7.0 x
Aerospace Mean 2.7 x 9.2 x
Defense Median 1.4 x 7.2 x
Defense Mean 2.7 x 8.0 x
Government Services Median 0.6 x 8.5 x
Government Services Mean 1.0 x 10.2 x

SECTION 4: RECENT CONTRACTS

SCOTT-MACON, LTD
February 2018
Top 50 Signed Contracts – February 2018
Date Signed Contractor Name Funding Agency Value ($mm) Description of Services
2/21/2018 United Technologies Aerospace Systems Defense Logistics Agency $2,500.0 Aviation-Related Spare Parts and Related Services
2/16/2018 Huntington Ingalls Industries Dept of The Navy $1,430.8 Procurement of The Detail Design and Construction
of Landing Platform Dock 29
2/6/2018 Lockheed Martin Corp. Dept of The Army $523.8 Patriot Advanced Capability-3 Missile Segment
Enhancement Missiles
2/7/2018 Oshkosh Defense Llc Dept of The Army $476.2 Procure The Family of Medium Tactical Vehicles A2
2/7/2018 Northrop Grumman Systems Corporations
Aerospace Systems
Dept of The Air Force $428.8 Two Functionally Equivalent Extremely High
Frequency Extended Data Rate (Ehf Xdr) Payloads
2/27/2018 Consolidated Nuclear Security Llc Department of Energy $358.2 Operation of Miscellaneous Buildings
2/26/2018 Los Alamos National Security Limited Liability
Company
Department of Energy $314.6 Operation of Government-Owned Contractor-
Operated R&D Facilities
2/26/2018 National Technology & Engineering Solutions of
Sandia, Llc
Department of Energy $292.7 Operation of Miscellaneous Buildings
2/13/2018 Chemonics International, Inc Agency For International
Development
$229.9 Support- Professional: Engineering/Technical
2/14/2018 The Boeing Co. Dept of The Navy $219.6 Engineering Change Proposal 6503 For The Design,
Development, Test and Integration
2/12/2018 Leidos Dept of The Army $200.0 Assist In Coordination, Integration, and
Synchronization of Geospatial Information
2/1/2018 The Boeing Co. Dept of The Air Force $195.0 Production of Additional Jdam Tail Kits
2/8/2018 Harris Corp. Dept of The Navy $161.0 86 Full-Rate Production Lot 15 Integrated Defensive
Electronic Countermeasures An/Alq-214 A(V)4/5
2/27/2018 Lockheed Martin Corp. Dept of The Navy $158.3 Program Management, Nonrecurring Engineering,
Recurring Engineering, Site Support and Touch Labor
2/16/2018 General Dynamics Land Systems Inc. Dept of The Army $149.0 Provide Parts Supply Support For The Entire Stryker
Program
2/15/2018 Kentucky Defense Services Llc Dept of The Navy $144.0 Support Services On A Port-By-Port Basis For U.S.
Ships and U.S. Naval Ships
2/27/2018 Honeywell International Inc. Department of Energy $137.7 Operation of Miscellaneous Buildings
2/13/2018 Sikorsky Aircraft Corp. Dept of The Navy $126.5 Low Rate Initial Production of Seven Lot Iii Ch-53K
Aircraft
2/5/2018 Lockheed Martin Corp. Dept of The Navy $119.7 Support of Air Force F-35 Air Vehicle Delivery
Schedules
2/27/2018 Mission Support And Test Services Llc Department of Energy $119.5 Operation of Miscellaneous Buildings
2/23/2018 Savannah River Nuclear Solutions, Llc Department of Energy $117.6 Operation of Other Industrial Buildings
2/16/2018 The Boeing Company National Aeronautics and Space
Administration
$113.8 R&D- Space: Aeronautics/Space Technology (Basic
Research)
2/2/2018 Oshkosh Defense Llc Dept of The Army $106.3 416 Jltv
2/23/2018 Ut Battelle Limited Liability Company Department of Energy $104.0 Operation of Government-Owned Contractor-
2/20/2018 Lockheed Martin Corporation National Aeronautics and Space
Administration
$100.0 R&D- Space: Flight (Advanced Development)
2/23/2018 Northrop Grumman Systems Corp. Dept of The Navy $99.8 Long-Lead Parts and Support Associated With The
Full Rate Production Lot 7 E-2D Advanced Hawkeye
2/14/2018 Powersecure Inc. Dept of The Army $99.8 Repair and Restore The Electric Power Grid In Puerto
Rico
2/6/2018 Decypher Technologies Ltd. Dept of The Air Force $97.3 Air Force Research Laboratory Information
Technology Support Services
2/23/2018 Raytheon/Lockheed Martin Javelin Jv Dept of The Army $94.9 Javelin Weapon System Deliverables
2/8/2018 Northrop Grumman Systems Corp. Dept of The Navy $88.9 Technical Engineering, Logistics and Management
Services

SCOTT-MACON, LTD
February 2018
Top 50 Signed Contracts – February 2018 (Continued)
Date Signed Contractor Name Funding Agency Value ($mm) Description of Services
2/21/2018 Space Exploration Technologies Corp. National Aeronautics and Space
Administration
$85.4 Transportation/Travel/Relocation- Transportation:
Space Transportation/Launch
2/7/2018 Boeing Company, The National Aeronautics and Space
Administration
$80.0 Transportation/Travel/Relocation- Transportation:
Space Transportation/Launch
2/14/2018 Orbital Atk Dept of The Navy $79.4 Operation and Maintenance Services In Support of
The Naval Air Warfare Center Weapons
2/20/2018 Dyncorp International Llc Department of State $76.5 Housekeeping- Facilities Operations Support
2/7/2018 Mori Associates, Incorporated National Aeronautics and Space
Administration
$74.4 IT and Telecom- Other IT and Telecommunications
2/26/2018 National Technology & Engineering Solutions of
Sandia, Llc
Department of Energy $71.5 Operation of Miscellaneous Buildings
2/26/2018 The Regents of The University of California
(1741)
2/27/2018 Uchicago Argonne, Llc Department of Energy $68.3 Operation of Government-Owned Contractor-
2/16/2018 Bechtel National, Inc Department of Energy $67.0 Construction of Government-Owned Contractor-
2/9/2018 Tekla Research Inc. Dept of The Navy $64.1 835,200 Hours of Systems Specialty Engineering and
Technical Services
2/16/2018 Caci-Cms Information Systems Inc. Dept of The Army $60.0 Strength Maintenance Program Resource
Development and Delivery of Army National Guard
2/26/2018 Stanford University Department of Energy $55.6 Operation of Government-Owned Contractor-
2/27/2018 Battelle Energy Alliance Limited Liability Company Department of Energy $54.2 Operation of Government-Owned Contractor-
2/7/2018 California Institute of Technology National Aeronautics and Space
Administration
$53.5 R&D- Space: Science/Applications (Applied
Research/Exploratory Development)
2/23/2018 Brookhaven Science Associates, Llc Department of Energy $53.5 Operation of Government-Owned Contractor-
2/1/2018 Abt Associates Inc. Agency For International
Development
$51.0 Support- Professional: Engineering/Technical
2/26/2018 Battelle Memorial Institute Department of Energy $49.6 Operation of Government-Owned Contractor-
2/5/2018 Savannah River Nuclear Solutions, Llc Department of Energy $48.0 Operation of Other Industrial Buildings
2/26/2018 Fermi Research Alliance Limited Liability
Company
2/2/2018 General Dynamics Information Technology, Inc. Centers For Medicare and Medicaid
Services
$47.2 Support- Professional: Other
Total Top 50 $10,563.4

SCOTT-MACON, LTD
February 2018
Contract Overview by Agency and NAICS Code – February *
Top 20 Agencies Ranked by Total Contract Value Signed in February
Top 20 NAICS Codes Ranked by Total Contract Value Signed in February
* Only includes contracts with value greater than $150,000
Rank Funding Agency Contract Value ($mm) # of Contracts
1 Department of Energy 2,999$ 211
2 Dept of The Navy 2,693 12
3 Defense Logistics Agency 2,500 1
4 Dept of The Army 1,739 23
5 National Aeronautics and Space Administration 1,466 512
6 Dept of The Air Force 721 3
7 Agency For International Development 544 108
8 Department of Veterans Affairs 496 525
9 Federal Acquisition Service 395 286
10 Department of State 320 233
11 Centers For Medicare and Medicaid Services 253 68
12 Department of Education 241 26
13 Federal Aviation Administration 202 176
14 Centers For Disease Control and Prevention 154 66
15 Public Buildings Service 135 141
16 National Institutes of Health 129 171
17 U.S. Marshals Service 123 187
18 Federal Emergency Management Agency 117 73
19 U.S. Immigration and Customs Enforcement 116 62
20 United States Mint 109 30
Total Top 20 by Funding Agency 15,450$ 2,914
Rank NAICS Code Description Contract Value ($mm) # of Contracts
1 Facilities Support Services 2,000$ 184
2 Computer Systems Design Services 707 353
3 Research And Development In The Physical, Engineering, And Life Sciences 649 36
4 Research And Development In The Physical, Engineering, And Life Sciences (Except Biotechnology) 585 227
5 Administrative Management And General Management Consulting Services 531 304
6 All Other Professional, Scientific, And Technical Services 409 142
7 Other Computer Related Services 354 287
8 Engineering Services 347 267
9 Guided Missile And Space Vehicle Manufacturing 317 13
10 Security Guards And Patrol Services 259 307
11 Remediation Services 201 66
12 Data Processing, Hosting, And Related Services 178 55
13 Nonscheduled Chartered Freight Air Transportation 164 25
14 Commercial And Institutional Building Construction 139 130
15 Custom Computer Programming Services 117 114
16 Hazardous Waste Treatment And Disposal 115 8
17 Miscellaneous Financial Investment Activities 111 5
18 Research And Development In Biotechnology 85 13
19 Industrial Nonbuilding Structure Construction 67 1
20 Other Technical And Trade Schools 57 19
Total Top 20 by NAICS Code Description 7,392$ 2,556

SECTION 5: KEY AEROSPACE & DEFENSE STATS

SCOTT-MACON, LTD
February 2018
Key Aerospace & Defense Stats
RPK – Global (in millions)
RPK Growth % by Region
12/2017 vs 12/2016)
Load Factor – Global (%)
RPK Growth % by Region
(LTM 12/2017 vs LTM 12/2016)
Commercial Aerospace Orders
Source: FAA
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
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 %
3.6%
‐0.3%
0.4%
20.2%
15.4%
4.0%
‐5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
    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 (%)
14.3%
3.8%
1.0%
47.7%
32.9%
10.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
    North
America
    Europe     Asia Pacific     Central /
South
America
    Middle East Total
LTM as of 1/2018 LTM as of 1/2017 YoY % Change 1/2018 12/2017 11/2017 10/2017 9/2017 8/2017 7/2017 6/2017 5/2017 4/2017 3/2017 2/2017
Narrowbody Unit Orders 1,943 1,254 54.9% 43 1,022 188 69 101 41 11 236 33 19 148 32
    Boeing 875 648 35.0% 28 255 143 52 61 31 13 104 3 13 134 38
        737 875 648 35.0% 28 255 143 52 61 31 13 104 3 13 134 38
    Airbus 1,068 606 76.2% 15 767 45 17 40 10 ‐2 132 30 6 14 ‐6
        A320 1,068 606 76.2% 15 767 45 17 40 10 ‐2 132 30 6 14 ‐6
Widebody Unit Orders 224 276 ‐18.8% 0 19 16 12 27 2 13 78 30 13 13 1
    Boeing 170 158 7.6% 0 10 16 12 11 2 9 80 10 2 13 5
        787 105 81 29.6% 0 7 13 0 5 0 3 56 10 2 4 5
        777 59 18 227.8% 0 3 2 12 6 0 4 24 0 0 8 0
        767 0 41 ‐100.0% 0 0 0 0 0 0 0 0 0 0 0 0
        747 6 18 ‐66.7% 0 0 1 0 0 2 2 0 0 0 1 0
    Airbus 54 118 ‐54.2% 0 9 0 0 16 0 4 ‐2 20 11 0 ‐4
        A350 33 44 ‐25.0% 0 ‐4 0 0 10 0 1 ‐4 20 10 0 0
        A380 0 ‐2 ‐100.0% 0 0 0 0 0 0 0 0 0 0 0 0
        A330 21 76 ‐72.4% 0 13 0 0 6 0 3 2 0 1 0 ‐4

SCOTT-MACON, LTD
February 2018
Key Aerospace & Defense Stats
86%
14%
Domestic International
Global Business Jet Traffic
(Flights in Thousands)
12/2017 Global Business Jet Traffic
by Type (384K 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
384
401
388386
362
375
385
375
388
344
348346
‐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
February 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
February 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 (Feb 2018)

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