CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

APS – Our Story

October 6th, 2016

CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

Market Leader in Prop Repair • Founded in 1953 with 5 employees servicing the

Midwest’s General Aviation community

• Grew into regional turboprop shop, while retaining our focus on high quality customer service and engagement

• Currently over 60 employees – top talent dedicated to providing quality service

• Authorized service center for major prop OEMs o Earned the trust of the largest global propeller OEM

• Deployed footprint into modern US facility o In 2015, opened a state-of-the-art 46,000 s.f. facility in

Lake Zurich, IL

o Modern technology with all critical processes under one roof.

• Expanded globally in 2016 o Opened Brazil and Malaysia facilities

• Revenue streams in MRO, parts sales, and technical support

1

CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

UTC Aerospace Systems Partnership Timeline

2

Late 80’s

APS begins to develop composite prop system repair capability

2003-2004

Hamilton Sundstrand closes Long Beach repair facility

APS earns 10 year license to support Hamilton Sundstrand propellers in Americas

Key Hamilton Sundstrand executive joins APS

2008

APS ramps up composite prop operations

2013

APS renews Americas license agreement

2015

UTC explores strategy to support growing global customer base on 568F product

UTC expands licensing to support IATA 1 and IATA 3 customers

2016

APS opens shops in Malaysia and Brazil

We leveraged our Vision and Values to become a trusted partner of UTC

CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

An Integral Member of a Global Prop MRO Network • UTCAS licensed repair facility for the Americas and Asia

• Major aircraft covered: ATR, DHC-8-1/2/300, EMB-120, SAAB-340B, CASA-235/295

• Capability for test, repair, and overhaul of entire prop assembly: blades, hub, actuator, and accessories

• ATR Global Maintenance Agreement (GMA) supplier

• Authorized warranty repair center

• Licensed to perform aftermarket proprietary repairs including key process on new generation ATR overhauls

o One of two sources authorized for required intellectual property

• Preferential discount on piece parts allows more pricing flexibility and BER avoidance

• New blades and major parts offered at discounted prices

3

CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

Global Propeller System Repair Coverage

4

• Lake Zurich, IL • APS Headquarters • Full MRO capability • Total prop assy

support

• Atibaia, Brazil

• 1 hour northwest of São Paulo

• Took over existing UTCAS shop

• Kuala Lumpur (KUL) • Partnering

agreement with MAB Engineering

• Figeac, France

• Two hours north of Toulouse

• OEM

CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

One Stop Shop for Props

Regional Turboprop

MRO

General Aviation MRO

Aero Tech Governors Parts Sales

Technical Services (Prop U)

Inspection, repair and overhaul of major propeller systems

Blades, hubs, actuators, spinners, bulkheads

Long term agreements and transactional terms

Broad proprietary services and technology

Inspection, repair, and overhaul of most general aviation propellers

Military and commercial

Midwest regional focus with direct to customer service model

Shop-within-a-shop concept

Sales distribution support for OEM (Jihostroj)

Stock in Lake Zurich for – Whole assemblies – Overhaul kits

Support the OEM with forecasting, stocking, lead generation, order tracking, market intelligence, and sales execution

Support the OEM with forecasting, stocking, lead generation, order tracking, market intelligence, and sales execution

On call, can sell own inventory when replacement assemblies needed

Blades, hubs, actuators, PCUs, EECs, ECUs and piece parts

On call, provide technical support for propeller customers worldwide – On wing – On site – Via network /

teleconference

Leverage recognized leadership in propeller system repair

5

CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

The APS Value Proposition

6

• We provide high quality MRO services and parts at competitive prices and lead times

• We SAVE your components when others – including our competition – can’t

• We deploy OEM-level technical support and training

• We provide commercial offers that are transparent and tailored to you

• We take pride in our “close-to-the-customer” model

• We have integrated our services and core competencies under one roof

• 3 and 5 axis machining centers • Media Blast, Shot & Glass Peen • NDT, Optical Comparator • Test stands • Multiple lathes, drill presses, ovens • Paint booths • Taper Bore inspection • Compression Wrap

CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

Strategic Vision

7

4. Move vertically upward to tailored fleet contract for

props

5. Maintain philosophy of OEM alignment

9. Focus on underserved platforms in Air Transport

market 3. Establish global presence

2. Rationalize General Aviation footprint; maximize

synergies with Regional Aviation

8. Buy high quality, price, and margin businesses

10. Establish broader repair & asset management

capabilities

7. Build aftermarket solutions – leverage organic assets where able

2013

2020

Global Full Service

Component MRO

Phase I

Phase II

1. Contract with UTC, ATR, Airbus

Maximize Propeller Market Potential Grow Beyond Props

North American Prop

MRO

6. Leverage core business to provide growth capital

2016

CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

Phased Approach: Leverage Strengths, Mitigate Risk

8

Tailored fleet contracts Repair Management, technical support and asset

management for a narrow category of LRUs Example: Rockwell Collins Dispatch 100

Support orientated Repair Management and technical support on

multiple part numbers Example: Continental - Honeywell

Traditional Focus on repair management per ATA / selective

part numbers Examples: NWA, AA, BA

Price Shopper Sending out single component repairs on

single part numbers

Full Service Component MRO

Service combines asset management and repair management; covers multiple OEMs; assets mainly at

supplier Examples: easyJet-SRT, AAR - Mesa

Total Aircraft Support

Combines Full Component Support with engine, airframe heavy and/or airframe

line maintenance (e.g. LHT’s TTS)

Asset Service Asset Management oriented

Assets held at Airline

Example: LHT- Spirit

Repair Management Supplier manages and/or performs repairs for a

broad array of ATA chapters

In-house Services Most component maintenance done in-house

Output-oriented solutions

(attracted by full support)

Transactional solutions

Few ATA chapters

Most or all ATA chapters

Service Integration

Breadth

Phase I

Phase II

CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

Acquisition Approach

9

Number Filter Targeted Values

1 Scope of Products & Services

Additional technologies within component MRO along with “cleanup” of Phase I needs

2 Size $1M – 10M EBITDA

3 Sector Regionals, turboprops, possibly narrowbodies

4 Geography Global

5 Strategic Attractiveness

Relatively easy to understand business model; reasonably integrated into APS existing footprint

6 Relationships OEM licensed or aligned, no heavy deliberate PMA/DER focus

Phase II goal is to broaden component repair and asset management capabilities within our market sector to maximize synergies with the core business

CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

Vision End State – Global Aerospace Partners

Global Aerospace Partners will provide a comprehensive services solution:

• Niche component repair, manufacturing, and distribution offerings

• Asset management

• Engineering services

• Best-in-class customer engagement

• Global deployment

• Targeting underserved aircraft platforms

10

GAP Global Operations

GAP

GAP Global Sales & Mktg

GAP Corp. Office

GAP Engineering GAP MRO

Shop 1 Shop 2

Shop 1

Customer

GAP Asset Management

GAP Account Management

APS folds in

CONFIDENTIAL AND PROPRIETARY INFORMATION OF AIRCRAFT PROPELLER SERVICE, LLC

Questions?

11