July 2013 Eddo Weijer eweijer@gatelesis.com

ASA Annual Conference 2013 Workshop O: AFRA Aircraft Valuation Panel

COMPANY OVERVIEW - TIMELINE

2

2002

2007

2008

2011

2012

GA Telesis (GAT) founded

Bank of America Merrill Lynch makes strategic investment

in GAT

Acquires Curtiss Wright Accessory Services in

Miami, FL Rebrands as GA Telesis

Component Repair Group SE

Acquires Ultimate Aircraft Composites (consolidates

two composite businesses) Ft. Lauderdale, FL

Century Tokyo Leasing (CTL) makes strategic investment

in GAT

GAT & Air China form landmark JV

GA Innovation China Acquires AMT

Composites Tucson, AZ

Composite Repair Group

2013

Acquires Finnair Engine Services

Helsinki, Finland & rebranded as GATES

GLOBAL NETWORK

3

The only independent aftermarket provider to have full scale part-out and distribution capabilities on three continents

AMERICAS EUROPE ASIA

MRO

Fort Lauderdale & Miami

Beijing

Helsinki

Brazil 2013/14

Middle East 2013/14

Planned Expansions

Distribution Center

Leasing, Asset Mgmt.

Parts Sales Office

Bournemouth

Tucson

CONFIDENTIAL

GA Telesis Corporate Headquarters – Florida, USA GA Telesis UK Ltd

GA Telesis Composite Repair Group GA Telesis Component Repair Group SE

4 GLOBAL Operations & Infrastructure

CONFIDENTIAL

5

Aircraft & Engine

Leasing/Sales

Asset

Management

Parts Sales: Turbine Engine

Group Aircraft Systems

Group Consumables &

Expendables Group

Supply Chain

Solutions

MRO Solutions

Military Services

The Ability to Serve the Aerospace Market Globally

GA Telesis Support Capabilities

A340-200/300

CFM56-5C

A300-600

PW 4000 CF6-80C2

A310-300

PW4000 CF6-80C2

A320/A321-200

CFM56-5A/5B V2500

PW4000 CF6-80 RB211

B747-400

B737-300/400/500

CFM56-3B/C

CF6-80C2B1

B747-300

B757-200

PW2000 RB211-535

JT8D-217C/219

MD82/83

CRJ-100/200

CF34-3A/3B

B777-200

PW4077 PW4090

Trent

B767-200/300

JT9D, CF6-80 & PW4000

No other company has disassembled

a more comprehensive

portfolio of commercial

aircraft and engine models

PART-OUT EXPERIECNE

200 Commercial

Aircraft 500+ Jet Engines

REDEPLOYMENT vs. PART – OUT STRATEGY

January 2013

Aircraft Managed Off Lease

Aircraft Parted-out

Airframe Parts Sold

Engine Part out Engine Parts Sold

Engine Leased

Engine Leased Again

Engine Leased Again

Engine Part out Engine Parts Sold

Engine Sold

Aircraft On Lease

The GA Telesis strategy allows for the maximum flexibility as it relates to asset disposition and value creation/protection

Value Measurement Benchmarks

Aircraft Reployed

Current Aircraft Narrowbody & Regional Aircraft for Disassemble

737

CFM56-3

MD80/90

V2500-D5

B737NG

CFM56-7B

A319/A320/A321

V2500-A5

V2500-A1

CFM56-5A

CFM56-5B

CRJ-1/200

CF34-3A/3B

Aircraft are being disassembled at a younger age than historically due to: • There are more aircraft being manufactured

• Part-out business has become more sophisticated

• Larger part-out companies are more sophisticated and better capitalized and plan early age part-outs

• Aircraft are being disassembled as a means to support parts demand as opposed to aircraft obsolescence

757-200

RB211-535E4

PW2000

MD80

JT8D-217C/219

Value Measurements

• Asset Age • Airframe Condition • Engine Condition • LLP Status • Records and Trace • Asset Location • Interchangeability • Market demand / Economy • Surplus supply material / aircraft • Existing Inventory • Customer Support Programs • Sales History • MRO demand • OEM Control • Lease-ability • Oil Price • GDP • ETC

Each asset is unique and values are difficult to benchmark

Airframe and Engine Considerations

• Aircraft pricing considerations • Landing gear weight • Cockpit upgrades • Avionics suite • Wheels and Brakes (steel vs. carbon) • Operational destination • Nacelles specific to engine type • Upgrades and highest detail part number • Engine indication system in the cockpit • APU and Landing Gear Back to Birth traceability • Competition in the marketplace

• Who else is tearing down? • Do they try to hold value?

• Engine price considerations • PMA part usage • DER part repairs • High time airfoils • Green time life remaining for short term lease • Low usage LLP (high cycles remaining) • Engines run in hot sandy conditions (Middle East and

India) • Back to Birth traceability

0

5

10

15

20

25

30

2007 2008 2009 2012

747 Value

Rapidly Declining Values

Triggers the need for a faster turn over

Boeing 757 Aircraft Family

• GA Telesis parted out the first non incident related aircraft.

• Very few PW2000 engines parted out to date.

• PW2000 with Reduced Temperature Configuration (RTC) attracts higher values.

• RB211 market dominated by Rolls Royce (OEM)

• Residual values sustained by passenger to freight conversions.

• Near term outlook stable as the fleet is core to North American operators.

Engine Model Trade Lease Part-out

Pratt & Whitney PW2037 High High High

Pratt & Whitney PW2040 High High High

Rolls Royce RB211-535E4 Low Medium Low

Rolls Royce RB211-535C None None None

Model GAT Tear downs

Lease Demand Trade Demand Parts Demand >50 Part-outs

757-200 Yes Low Medium Medium Yes

757-300 No Medium Medium Medium No

Boeing 757 Aircraft Family

Boeing 767 Aircraft Family

• GA Telesis parted out the first non incident related -200 and -300 aircraft.

• B787 issues have created recent stability in B767 values.

• Near term fleet retirements will create pressure on part out values.

• Shop visit avoidance creates demand for leasing and trading engine green time.

• Good level of airframe parts compatibility with B757.

• Nacelles compatible with 747 and MD-11.

• Engines compatible with 747.

• Engine parts compatible with all Airbus, Boeing, Douglas variants of -80C2 and PW4000.

Boeing 767 Aircraft Family

Engine Model Trade Lease Part-out

Pratt & Whitney PW4060 Medium Medium/High Medium

General Electric CF6-80A Medium Medium Low

General Electric CF6-80C2B6F Medium Medium/High Medium

Rolls Royce RB211-524H Low Low Low

Model GAT Teardowns

Lease Demand Trade Demand Parts Demand >50 Part-outs

767-200 Yes Low Low Low Yes

767-300 Yes Low Medium Medium No

767-400 No High High Medium No

Boeing 777 Aircraft Family

• GA Telesis parted out the first

serviceable aircraft. • Very few aircraft parted out to date. • Oldest variant -200A coming out of

Asian operators in near term will place pressure on values.

• The -200 has good compatibility

across all 777 models. • Engine QEC has commonality

amongst engine manufacturers. • PW4077D parts are compatible with

PW4090 engines.

Boeing 777 Aircraft Family

Engine Model Thrust Trade Lease Part-out Pratt & Whitney PW4077 (112”) 77,000 lbf Medium Low Medium

Pratt & Whitney PW4090 (112”) 90,000 lbf Medium High Medium

Rolls Royce Trent 877 74,600-95,000 lbf Low Low Low

General Electric

GE90-77B 93,700-110,000 lbf High High Medium

Model GAT Teardowns

Lease Demand Trade Demand

Parts Demand

>50 Part-outs

777-200 Yes Medium High High No

777-300 No High High High No

Your job is in the sky – Our job is to keep you there

www.gatelesis.com

Thank You !

For more information, please contact: Eddo Weijer eweijer@gatelesis.com 954-676-3115