Tim Mathis Director of Engineering, Components Advanced Composite Damage Identification, Inspection and Repair for Engine Components Tim Mathis Director of Engineering, Components October 14th, 2015

Advanced Composite Damage Identification, Inspection and Repair for Engine Components Agenda StandardAero Components Overview 1 Evolution of Metallic Component Repair to Composites Component Repair 2 Overview of Polymer Matrix Composite (PMC) Inspection & Repair 3 Overview of Ceramic Matrix Composite (CMC) Inspection & Repair 4 Questions 5

StandardAero Overview StandardAero Component Services StandardAero & StandardAero Component Services (SACS) overviews StandardAero Overview StandardAero Component Services $1.7B+ in annual sales 85%+ engine MRO related 3,700+ team members #1 or #2 market share on majority of engine platforms we serve OEM aligned on all platforms Cincinnati, Ohio (250,000 ft2) 400+ employees across 3 shifts 5,000 engine part repair capabilities Many dedicated OEM repairs 70,000 repair capabilities 35,000+ parts repaired/year 15-21 day TAT Dedicated repair development cell “One stop shop” capabilities on everything but blades & vanes Business Aviation Airlines & Fleets - We turned 100 years old 3 years ago We generate roughly $1.7B in sales/year with 3,700+ employees worldwide Much of what we are known for is engine repair and overhaul, but we have capabilities in many other areas, including Completions Repair development Airframe MRO (can do many planes – tip to tail) We are diversified by end markets and serve: Military Business aviation Commercial aviation Helicopters Aeroderivative energy applications Etc. In the last decade, we have repaired ~27,000 engines Associated Air Center Military & Components 3 3

Composite Technology evolution is here today Boeing’s 787 and the Airbus A350 are now made up of more than 50 percent composite material versus the Boeing 777 at 20 percent composites Powerplant components moving from composites panels to composite structures Repair techniques move from weld repairs and dimensional restoration to precision ply lay up repairs Increased use of fasteners for transitions between composites and non composites components Need to match transition from a 20% business focus to 50% business focus…. Engine components moving from liner or non load bearing to load bearing structures…. Repair techniques have to be adapted to composites, repair schemes and methods change… Can machine into ply’s Increase use of fasteners and fastener design used for on wing repairs and have to be accessible… On wing repair of composites moving to a Must Have versus a nice to have Higher emphasis on internal repair development, inspection technologies, manufacturing technology and work force development

…Paradigm shift in Workforce, Manufacturing and Repair Higher level of technical skill required with limited training facilities available. Technical skill acquired by internal training. Shift in capital equipment from metal rework and inspection to composite rework and inspection Digital data driven with a higher emphasis on technical skills for interpretation Traditional two dimensional drawings and inspection shifting to 3D CAD and digital data Have to focus on internal training and OJT – start to emphazis on composites Capital will have to either be focused on composites or have capabilities of being adapted in the future when needed Complex 3d geometries will need a 3D method of inspection and mesh…models will be required etc.. Have to start transitioning the mindset of the current leadership team… more future focused on composite technology and repair methods Leadership team will need to transform into a digital mindset and skills New kid in town, to teach old dogs new tricks!

…Ceramic Matric Composite (CMC) expansion into structural components Prime OEM’s (PW, RR and GE) moving to CMC with no return to metallic back ups, leaving no choice but to adapt or fail CMC’s bring a higher emphasis on coatings and surface protection Transition from traditional repair methods, moving to more sophisticated methods such as diamond grinding, vapor deposition and 3D ply layups Cost and process time of inspection will increase from metallic part inspection In the past, OEM’s have started with an aluminum or steel bearing seal and transferred that design into a composite resin part, now the only part will be composite… the metallic version of what we repair will be gone! Very few shops have capabilities of EBC coatings, and processes to strip these coatings… not just capital implications but completely different process parameters than typical metallic based heat treat, coatings and stripping. Repair methods will need to evolve, blending and machining methods have significant differences between metallic and composites… - inter ply problems Limited skills available from a technical standpoint – OEM’s have all the knowledge for CMC Limited skilled employees available with specific CMC experience – OEM’s have all the knowledge Aluminum components moving to PMC and Nickel & Steel components to CMC

At StandardAero, we have a dedicated composites MRO cell with broad capabilities… Autoclave Curing Ovens Bond Rooms Paint Rooms Freezer Guide Vanes Fan Cases Acoustic Liners Stationary Seals 9 ovens the largest measuring 12’ X12’ with a max temp of 650F Auotclave 6’X10’ capable of 450F & 150 psi Tedlar Replacement Leading edge Bushing repairs Honeycomb Abradable Repairs Corrosion repairs Bushing repair Face sheet repairs Replace honeycomb Replace bushings Surface coatings Replace abradable seals Replace bushings Wet layup repairs to structure

Inspection & Repair for Polymer Matrix Composite (PMC) Engine Components PMC – Polymer Matrix Composites Structural components – Fan cases, Fan Blades, Platforms, liners or acoustical components Non oil carrying components Current PMC investment is in line with CMC allowing full transition from metal to PMC, then to CMC Inspection Current inspection techniques include: Tap test, Ultrasonic, CT Scan, visual and dimensional inspection Inspection will need to move from static to dynamic inspection with part under a load to determine breakdowns in glue or for delamination PMC Fan Blade Notes: Oil concerns, multiple burn outs may not work - Non-Oiled parts, where moisture absorption is not a concern Dynamic inspection – have to move the part in different orientations or move inspection around the part Ability to get to the part first to offer repairs will be key – mobile repair station…. Repair Deep cracks – autoclave repairs, scarf joints, fiber resin fill Topical repairs – on wing, surface treatments, blending and coating repairs Repairs need to be mobile for large parts (Fan Cases) PMC Fan Platform

Inspection & Repair for Ceramic Matrix Composite (CMC) Engine Components CMC OX-OX, heat blanket structures– 1,700°F Structural components - Combustor liners, Fan cases CMC Silicone Carbide, Structural Components – 2,400°F Hot section – Blades, Vanes, Shrouds, Nozzles & Exhaust Inspection Current inspection techniques include: Infrared, CT scan, visual and 3D dimensional inspection Inspection used for metal will have to be adapted to composites for live dimensional feedback Cracks in CMC may be acceptable as where metallic is bad CMC Blade Repair Resin fill – Autoclave repairs, scarf patch repairs, full face repairs Burnouts for moisture removal and resin re-fusion Higher emphasis on EBC coatings and heat treat CMC Nozzle

Summary Composite components will continue to grow MRO shops have to begin to transform business to expand composite capabilities Investments in longer term technologies focused on composites repair and inspection Range of materials, processing parameters, inspection methodologies has significant implications for a repair facility Introduce more employees to PMC repair and inspection methods, expand experience through job rotation Transition workforce from 2D drawings to using 3D models and data sets for work instructions CMC components embraced by OEM’s Stronger partnership with OEM’s and early engagement in the R&D cycle is critical Either Good or Bad, no “MRB” to determine acceptable limits Significant implications from a capital and IP investment perspective Out-of-autoclave or mobile processing (fabrication and repair) continue to make inroads “How do we get to the engine faster?”