Membership Presentation 2012

AIA is the most authoritative & influential aerospace trade association Our membership accounts for more than $200 billion in aerospace sales We represent more than 90% of the aerospace market

We help our member companies sell more products and services by: Advocating for the advancement of aerospace & defense interests Providing the forum to build and strengthen business relationships Breaking down economic barriers Promoting manufacturing and trade Working together to shape regulatory and legislative policies

Our industry is under attack from forces on Capitol Hill and within the Administration. That’s why we’re banning together in AIA to preserve our interests During tough economic and political times, AIA’s strong representation and advocacy is essential to protecting aerospace and defense interests and establishing new growth opportunities As a result, since January 2010, AIA’s membership has grown nearly 60% and experienced its highest retention rates in history

Full Membership 152 companies Full Members have access to all association benefits, including Board of Governors Meetings, councils, committees, and working groups

Associate Membership Nearly 200 companies Operates through the Supplier Management Council - - a collaborative forum for suppliers to address issues, share best practices, and build relationships

Membership Has its Privileges Interacting with Industry & Government Interact with industry leaders and broaden your company’s sphere of influence with Congress and the Administration

Membership Has its Privileges Interacting with Industry & Government Engage with more than 250 CEO’s and senior executives from the leading aerospace and defense companies as well as our invited Congressional and Administration guests at our bi-annual Board of Governors Meetings

Membership Has its Privileges Interacting with Industry & Government

Private dinners with government & industry officials Tri-annual Supplier Management Council Meetings hosted by primes and OEMs Councils, committees & working groups

Membership Has its Privileges Policy Making & Advocacy Benefit from AIA’s superior advocacy efforts on the Hill and in the Administration Opportunity to sit at the table and work with industry colleagues to develop association’s policies and positions on the industry’s most pressing issues

Membership Has its Privileges Information Gather the latest information that your customers and competitors are working with on a daily basis at AIA

Membership Has its Privileges Air Show Support Opportunity to attend the premier events hosted by AIA Access to Defense Department’s corral, AIA’s air show support team, and visiting government officials Obtain tickets, secure sponsorships, and use of AIA’s chalet and member services

Membership Has its Privileges Research, Financial Analysis, & Communications Support Personalized service and briefings from AIA’s professional staff Statistical research, financial analysis, and communications support Whitepapers on critical issues Legislative and media updates Participate in the development of future National Aerospace Standards and receive discounts on current standards

AIA 2012 Leadership Chairman – David Hess, President, Pratt & Whitney, United Technologies Corporation Vice Chairman – Wes Bush, Chairman & Chief Executive Officer & President, Northrop Grumman Corporation President & CEO of AIA – Marion Blakey

Comprehensive Strategic Plan Strategic Plan sets clear goals, objectives, and targets for the organization All employees’ pay tied to plan’s success Developed and reviewed by member companies

Organizational Chart Legislative Acquisition Policy Communications Membership International Affairs President and CEO Civil Aviation Space Systems National Security Administrative Supplier Management COO

National Security Responsible for national security and defense issues, including: Modernization of aerospace and defense systems Health of the industrial base & defense spending The future aerospace workforce

National Security Major issues Ensuring Defense Department has adequate funding and is supporting the development of next generation military equipment Focusing on Defense Department’s procurement and R&D accounts

National Security Major issues Must ensure healthy budget for recapitalizing weapons and equipment and reset AIA study, The Unseen Cost; Industrial Base Consequences of the Defense Strategy, greatly influenced the debate First time in history the Quadrennial Defense Review highlighted the need to involve industry in the process

National Security Major issues Almost 60% of the US aerospace workforce over the age of 50 is nearing retirement AIA is working with its members to develop the next generation of scientists, engineers, and highly-skilled workers Developing the strategy to encourage interest and investment in Science, Technology, Engineering & Mathematics (“STEM”)

National Security Major issues More detailed issues include the following: Counterfeit parts, alleged non-conforming titanium substitution, long range archival and retrieval product data, lead-free electronics, standards-based interoperability, NAS standards, cyber security

National Security Councils & Committees National Security Council Homeland Security/Homeland Defense Committee Industrial Base and Workforce Committee International Exhibitions Committee Electronic Business Steering Group Electronic Enterprise Integration Committee Technical Operations Council Engineering Management Committee National Aerospace Standards Strategic Standardization Forum for Aerospace Product Support Committee Quality Assurance Committee Industrial Security Committee

Acquisition & Finance Responsible for issues including: Government procurement Contract administration Financial and legal matters relating to federal procurement Federal and state taxation Environmental, safety, and health

Acquisition & Finance Major issues Weapons systems acquisition reform Deficient defense business systems withholding 3% withholding tax R&D tax credit

Acquisition & Finance Environmental, Safety & Health Responsible for issues concerning the identification of environmental, safety, and health issues of interest for manufacturing facilities Develops positions on environmental, safety and health policy, laws, regulations and initiatives Develops and shares best practices for environmental and safety issues.

Acquisition & Finance Environmental, Safety & Health Major Issues Chemical and material management Clean Air Act Sustainability Safety award and benchmarking program

Acquisition & Finance Councils & Committees Procurement & Finance Council Cost Principles Committee Economic Advisory Committee Intellectual Property Committee Legal Committee Procurement Techniques Committee Property Management Committee Tax Matters Committee Washington Procurement Committee Environmental Safety & Health Committee Alliance for Environmental Responsibility and Openness

Civil Aviation Responsible for the following issues: Improving the capability for designing, developing, producing, and operating aviation products Obtaining federal aeronautics R&D funding under the FAA and NASA Ensuring aviation safety and security Modernizing the air traffic management system Monitoring federal and international aviation regulations and international aircraft noise and emissions standards

Civil Aviation Major issues Accelerate funding and equipage of Next Generation Air Transportation System technology CO2 emissions Ensuring a level international playing field for US manufacturers Increase safety Promote emerging technologies - - Unmanned Aircraft Systems

Civil Councils & Committees Civil Aviation Council Air Transportation Systems Committee Aircraft Environmental Committee Civil Aviation Regulatory & Safety Committee Civil Aviation Security Committee

Space Systems Responsible for all civil and defense relates space issues and policies

Space Systems Major issues Robust funding for NASA, NOAA, and DoD & future of the American space program Supporting missile defense programs Space situational awareness & space protection Protecting & promoting commercial space opportunities International collaboration

Space Systems Councils & Committees Space Council Civil Space Committee Commercial Space Committee National Security Space Committee

International Affairs Responsible for the following: Advancing and promoting international trade opportunities for the U.S. aerospace industry Ensuring access to foreign markets on an equitable basis Working with foreign partners to spread risk, raise capital, improve market access, and develop new technology

International Affairs Major issues Export control modernization Leveling the playing field for international trade Promoting global standards for ethical business practices

International Affairs Councils & Committees International Council Commercial Trade Committee Export Controls Committee Defense Trade Committee

Supplier Management Responsible for surfacing and addressing issues related to the health of the aerospace and defense supply chain Non-attributional forum where senior supply chain representatives from system integrators and manufacturers work together

Membership Qualifications Regular membership is available to firms engaged in the production of aerospace systems in the U.S., provided the firm is not owned or substantially controlled, directly or indirectly by a foreign government Recently expanded membership criteria to include homeland and cyber security companies that provide unique aerospace applications

Dues Structure Annual Full Membership Dues $22k for every $100 million is aerospace sales $31 million or less - minimum of $ billion or more - maximum of $400k plus air show assessment of 22k for any company over $1 billion in aerospace sales

Dues Structure Annual Associate Membership Dues $5k for over $50 million in aerospace sales $3k for under $50 million