1. Future of Aerospace industry Role of M&A in it’s forthcoming growth Global Trends Rzeszów, 26 June 2012 Adam Czechanowski Senior Manager, Audit Jakub Podleśny Manager, Tax

2. © 2012 Deloitte Poland Deloitte’s Survey Footer2

3. © 2012 Deloitte Poland Mergers and Acquisitions in A&D industry Deloitte’s Survey Research sample: 89 public companies from all over the world Survey Time: April 2011 Scope of the study: M&A transactions from 31/12/2000 to 31/12/2010 – 10 years In total study includes 70 North American companies (79%), 16 European companies (18%) and 3 companies representing the rest of the world (3%) Sectors: Services, OEM, Tier 1&2 Suppliers 3 89 analyzed companies made 1,995 acquisitions for a combined value of $336 billion

4. © 2012 Deloitte Poland Historical and macroeconomic factors

5. © 2012 Deloitte Poland Mergers and Acqusitions in A&D industry Historical and macroeconomic factors The A&D industry has traditionally seen dramatic increases in M&A activity following periods of decline (such as 2007-2008). As a response to the general economic uncertainty, many A&D companies have been stockpiling cash. Current total cash balances of the US’ A&D companies exceed an estimated $70 billion. Valuations of A&D firms appear to be at historic lows. 5

6. © 2012 Deloitte Poland Subsectors - characteristics

7. © 2012 Deloitte Poland Mergers and Acqusitions in A&D industry Subsectors characteristics (1): Services and OEM Out-performers invested 40% of their investments in services companies, roughly four times as much as the segment’s under-performers. OEM are among the only industry entities whose leading prospects in M&A lie outside their segment. Many OEMs have made expansion into aftermarket, IT, and mission system- related services a strategic imperative, and acqusitions can help to accelerate OEM’s entry into those spaces. Services companies can enhace their market position by acquiring other companies from the same segment. 7

8. © 2012 Deloitte Poland Mergers and Acqusitions in A&D industry Subsectors characteristics (2): Tier 1&2 Suppliers The activities of OEMs in the 1980s and 1990s demonstrated how consolidation in the A&D industry could lead to scale economies and improved negotiating positions with suppliers and channel partners As their customers’ negotiating power has improved, perceptive Tier 1 suppliers have begun imitating them and consolidating as well. Tier 2 suppliers have begun responding in kind. The consolidation trend continues down the value chain. 8

9. © 2012 Deloitte Poland Summary

10. © 2012 Deloitte Poland Mergers and Acqusitions in A&D industry Summary The era of mega-mergers of large defence contractors is behind us. Targeting companies whose business models enhance the company’s market power. Consolidation within Tier 1 and 2 suppliers, and services companies – an increasingly attractive target for OEMs. Services companies predominantly acquire other services companies. OEMs, as a segment, are the most acquisitive segment, comprising over 50 % of M&A activity. Both OEMs and Tier 1 suppliers are using M&A to expand their position in the value chain, moving into both upstream and downstream segments. Tier 2 suppliers predominantly buy other Tier 1 and Tier 2 suppliers. 10

11. © 2012 Deloitte Poland A&D industry forthcoming growth Deloitte – value added. We are right here. Globaly Deloitte has extensive industry experience with aircraft manufacturers, suppliers, operator and services companies We have helped our clients execute effectively across the full M&A life cycle: strategy development, target screening, due diligence (including accounting and tax), tax structuring and valuation as well as integration planning. Our R&D and Government Incentives Team can assist with the whole process of filing a R&D claim from scoping through document preparation and submission. Our Audit Department employes professionals with an experience working with major A&D companies, such as AVIO. We are in Rzeszów since 2011. Our regional office is headed by Grzegorz Koszel, Senior Manager in Deloitte Audit and Jakub Podleśny, Manager in Deloitte Tax Advisory. 11

12. © 2012 Deloitte Poland Deloitte Contact Details Adam Czechanowski Senior Manager, Audit Krakow Office Phone: +48 664 19 98 04 e-mail: aczechanowski@deloitteCE.comaczechanowski@deloitteCE.com Jakub Podleśny Manager, Tax Advisory Phone: +48 662 213 682 e-mail: jpodlesny@deloitteCE.comjpodlesny@deloitteCE.com Rzeszów Office Tel: +48 17 230 47 00 Fax: +48 17 230 47 01 ul. Rejtana 20 35-310 Rzeszów www.deloitte.com/pl

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