HORIZON SCANNING The Investment Litmus Test Aerospace & Defense Industries 1

An orderly method Here we use the SATERPLIDE acronym to prompt the scan for future events and their consequences. The segments are: Social (See Maslows’s Hierarchy of Human Needs) Approach (First response to an issue) Technology (Applying our innovation to reliable approaches) Economic (The benefits in productivity from technology) Resources (Human and Natural, required and consumed) Political (Ownership rights of tribes to resources) Legal (Administration of political resolutions) International (Resolution of international differences) Demographic (Population shift to better circumstances) Environment (Built by Humans and by Nature, our impact) 2

An orderly method Note that there is a series of cause-and- effect relationships going around the circle. This discovery technique ensures thorough scanning in our due diligence process. 3

SOCIAL Segment Maslow’s Hierarchy of Human Needs Creativity Respect Acceptance Comfort Survival If your life is at risk, you may compromise on the items above survival A roof over your head Observing local customs What do you know? Problem Solving 4

Human Need: Early warning of natural disasters e.g. Japan earthquake / tsunami

APPROACH Segment What to do if your human needs are being frustrated? NEEDAPPROACH SurvivalFlee, Fight, ComfortBuild, Adapt AcceptanceJoin, Communicate RespectLearn, Teach CreativityDesign, Invent Build a better early warning system 6

TECHNOLOGY Segment How to make a successful approach re-useable & reliable? Use earth observation satellites 7

ECONOMIC Segment How does the technology improve the quality of life? Early warning systems – People get to safety sooner 8

RESOURCES Segment What are the human and natural resources required to sustain the economic activity? The industry requires a large and skilled workforce Precision weapons, Priuses and iPhones depend on components made from rare earths like terbium, dysprosium 9

POLITICAL Segment Who owns the resources being applied? What gender are they from? Nicole Stott, NASA Astronaut The International Space Station pools resources 10

LEGAL Segment How are agreements for sharing resources administered? What are the safety regulations for small and large aircraft? 11

INTERNATIONAL Segment How are differences between international systems resolved? Observation from space raises issues of privacy Very small countries like Singapore and Switzerland have airlines with global networks 12

DEMOGRAPHIC Segment What is the impact of economic success on population mix and location? In the case of China, issues of defense of natural resources are being raised. 13

ENVIRONMENT Segment What is the impact of economic success on the environment, both natural and the built infrastructure? 14

Next steps: Identify the future event labels 15