2011 Final Results2011 Final ResultsMarch 2012

A Strong 2011A Strong 2011

Market recovery

Outperformance and acquisitionsContinued growth

p q

Positive profit and cash conversionGood operating performance

Acquisitions in Signature and Legacy Support

Significant investment capacityFurther strategic progress

g p y

Further ROIC improvement

Dividend increasedDriving superior returns

2

Operational ReviewOperational ReviewSimon PryceG Chi f E tiGroup Chief Executive

Flight Support

Signature volumes vs B&GA aircraft movementsSignature Flight Support – Revenue vs Market(1)

Flight Support Slow growth

0.51.01.52.02.5

850

900

950

(000

's)

($m

)

Further outperformance

Strengthened and extended networks

0.0 8002007 2008 2009 2010 2011Signature Revenue ($m, Fuel Adjusted & Constant Currency)B&GA US Market Activity

Expanded services and contract wins

Expansion into emerging

Flight Support: new locations

ASIG – Revenue vs Market(2)

2025400

's)

Expansion into emerging markets

Acquisitions integrating well

051015

250

300

350

2007 2008 2009 2010 2011

(000

,000

'

($m

)

well

2007 2008 2009 2010 2011

ASIG Revenue ($m, Fuel Adjusted & Constant Currency)Commercial Aviation Movements

(1) So rce FAA

4

(1) Source: FAA(2) Source: OAG

Flight Support NetworkFlight Support Network

Bozeman

San Juan

Omaha

Flight Support: new locations

ASIG,Panama

Boca RatonSt Maarten Mobile(x2) Edinburgh Frankfurt

New Locations

5

Aftermarket Services & SystemsAftermarket Services & Systems - Locations

Aftermarket Services & Systems

Strong aftermarket demand Aftermarket Services & Systems – Revenue and Organic Growth

USA

UK- Growth in flying hours- Serviceable spares- Mix and active selling

0

10

20

800

850

Asia Pacific

g- Strengthened order books

Expansion in emerging markets(20)

(10)

0

700

750

(%)

($m

)

Asia Pacific Acquisition ahead of expectations

(40)

(30)

(20)

600

650

New LocationsERO4 MRO facilities12 RTCs

Legacy Support3 facilities

APPH4 facilities

(40)6002007 2008 2009 2010 2011

Organic Revenue ($m, Fuel Adjusted & Constant Currency)

Non Organic Revenue ($m, Fuel Adjusted & Constant Currency)g ( , j y)

Organic Growth (%)

6

Aftermarket Services & Systems NetworkAftermarket Services & Systems Network

UK

USA

Asia Pacific

New LocationsERO4 MRO facilities13 RTCs

Legacy Support4 facilities

APPH5 facilities

7

Operational HighlightsOperational HighlightsFlight Support Improved customer satisfaction

Flight Support

Improved customer satisfaction $2m of fuel procurement benefits Signature SelectTM

Effective flexing Effective flexing ZIPP© driven safety improvements

Aftermarket Services & Systems F1RST SUPPORTTM expansion Assembly and test optimisation

Aftermarket Services & Systems

Assembly and test optimisation Supply chain rationalisation Operational improvement $2m incremental contribution through

Aftermarket Services & Systems: new locations

$2m incremental contribution through cross-business cooperation

8

Financial ReviewFinancial ReviewMark HoadG Fi Di tGroup Finance Director

Financial HighlightsFinancial Highlights

Organic revenue growth of 5%Delivering growth

Good contribution from acquisitions

Underlying OP up 16% to $198.9m

Delivering growth

Enhanced profitability Adjusted EPS increased 6% to 29.0c

FCF increased 4% with cash conversion of 102%

Enhanced profitability

Strong cash generation Leverage reduced to 1.5x

ROIC increased by 110bps to 10.6%

Strong cash generation

Driving superior returns Full year dividend increased 6.5%

Driving superior returns

10

Income StatementIncome Statement

$m 20112010

as reported ChangeRevenue 2,136.7 1,833.7 17%Revenue (fuel adjusted(1)) - 1,964.4 9%Operating Profit(2) 198.9 171.4 16%p gMargin %(2) 9.3% 9.3% -

Margin %(2) (fuel adjusted(1)) - 8.7% +60bps

Net Interest (28 7) (23 6) (22)%Net Interest (28.7) (23.6) (22)%

Profit Before Tax(2) 170.2 147.8 15%

EPS(2) 29.0c 27.3c 6%

(1) Constant fuel price

Dividend 13.94c 13.09c 6.5%

(1) Constant fuel price(2) Pre exceptional items

11

Flight SupportFlight Support

Organic revenue increase of 2%

Revenue Bridge ($m)increase of 2%

Underlying operating profit up 10% 1,150

1,2881,330

7

131 21 21

Margin of 9.4% up 50 basis points on like-for-like basis (2010: 8 9%)

2010 FX Fuel 2010Like-for-Like

Acqs/Disposals

Organic 2011

8.9%)

Cash conversion 152% (2010: 115%) –includes refund of

Operating Profit Bridge ($m)

1258includes refund of investment in Miami and Tampa

Divisional ROIC

114 115

125

1 3 8

(1)

Divisional ROIC 10.6% (2010: 9.7%) 2010 FX 2010

Like-for-LikeAcqs Organic Cost

Increase2011

12

Aftermarket Services & SystemsAftermarket Services & Systems

Revenue Bridge ($m) Organic revenue increase of 12%

684 689

807

5 35

83 increase of 12%

Underlying operating profit up 23%

2010 FX 2010Like-for-Like

Acqs Organic 2011

Prior year includes pensions gain ($4.8m OP)

Operating Profit Bridge ($m)

Like-for-like operating margins up 110 basis points to 11.3% (2010: 10 2%) 9221(2010: 10.2%)

Cash conversion 98% (2010: 124%)

75 70

92

0 7

21

(5)

(6)

Divisional ROIC 10.7% (2010: 9.1%)

2010 FX PensionsGain

2010Like-for-Like

Acqs Organic CostIncreases

2011

13

Exceptional ItemsExceptional Items

2011 – Total exceptional credit $16.4m (2010: charge $15.6m)

Restructuring costs $1.3m (2010: $6.5m)

Project costs related to cross-business synergies

Prior year relates to closure of APPH’s Bolton landing gear facility and compression of ERO’s y g g y pNeosho overhaul facility

Other operating expenses $3.8m (2010: $3.6m)

Acquisition related costs primarily related to FBO and GE fuel measurement acquisitions Acquisition related costs primarily related to FBO and GE fuel measurement acquisitions

Amortisation of acquired intangibles $7.9m (2010: $5.7m)

Increase due to 2011 acquisitions

Loss on disposal of businesses $5.3m (2010: $nil)

$5.0m goodwill write-down associated with exit from Tampa

Interest and taxation $34.7m credit (2010: $0.2m)

Refund of tax and associated interest related to claim for German tax paid in 2000

14

Cash Flow / DebtCash Flow / Debt

H1 working capital issues reversed as

$m 2011 2010Underlying EBITDA 260 5 231 1issues reversed as

expected Further strong cash

conversion at 102%

Underlying EBITDA 260.5 231.1Working capital movement (12.2) 24.6Net capital expenditure (29.3) (35.3)Net interest and tax paid (13 0) (26 8)conversion at 102%

Renewal of debt facilities– $750m bank debt

Net interest and tax paid (13.0) (26.8)Exceptional items (4.5) (7.4)All other movements (15.7) (7.6)

$750m bank debt with 3 & 5 year maturities

– $300m USPP debt

Free Cash Flow 185.8 178.6Dividends (63.7) (25.9)Equity issue 141.9 0.2$

with 7,10 &12 year maturities

Acquisitions and disposals (125.8) (7.6)Other (49.0) (7.6)Net cash flow 89.2 137.7

Net Debt 403.6 492.8Net Debt to EBITDA 1.5x 2.1x

15

2012: Other Financial Matters2012: Other Financial Matters

Exceptional ItemsC b i j t $5 P&L d h Cross-business synergy project $5m P&L and cash

Footprint rationalisation $8m P&L, $7m cash

Cash flow and capital expenditurep p Cash conversion to continue in 75-105% range Gross capital expenditure of c.1x depreciation

PensionsPensions Triennial valuation of UK scheme during 2012

Deficit contributions plus admin expense c.$10m for 2012

Cross currency swaps $200m and €50m settled. $200m outstanding with mark-to-market loss of $34m

$75m of swaps with $8m loss mature during 2012$75m of swaps with $8m loss mature during 2012

Tax Effective rate expected to increase to circa 23% in 2012

16

Strategic ReviewStrategic ReviewSimon PryceG Chi f E tiGroup Chief Executive

Delivering Superior Long-Term ReturnsDelivering Superior Long-Term Returns

Revenue growth

Operational progress

Strong cash generation

Value creative investment

18

Revenue GrowthRevenue Growth

Long-term correlation to GDP

Long-term correlation to US GDP

GDP

Continued recovery in B&GA flying

Medium-term indicators improving

Structural growth Bars: Hours Flown(000s) Line: US real GDP ($bn)

B&GA movements 22% below prior peak

40%

B&GA market

Source: General Aviation Manufacturers Association (Turbo Jet data)FAA Aerospace 2011 Forecast (Turbo Jet data)Bureau of Economic Analysis (Gross domestic product (GDP) at chained 2005 market prices)

(40%)(20%)

0%20%40%

(40%)

Nov

-07

Feb-

08

May

-08

Aug-

08

Dec

-08

Mar

-09

Jun-

09

Oct

-09

Jan-

10

Apr-1

0

Jul-1

0

Nov

-10

Feb-

11

May

-11

Sep-

11

Dec

-11

US year-on-year US versus 2007

19

Source: FAA

Operational ProgressOperational Progress

Further operational efficiency opportunities

Operating Profit and Margin

opportunities

– Continuous improvement

– Cross-business cooperation10%

12%

200

250

Reducing costs of delivering growth

Improved profit impact from additional volume

6%

8%

100

150

(%)

($m

)

volume

Operating profit and EPS already close to prior peak 2%

4%

50

100

0%02007 2008 2009 2010 2011

OP ($m Constant Currency)OP ($m, Constant Currency)Margin (%, Fuel Adjusted)

20

Strong Cash GenerationStrong Cash GenerationContinued strong cash generation Proven cash generation

Strong cash conversion

Targeted leverage range 1.75-2.25x

$150m of investment capacity created 50100

150

200

50100150200250

(%)

($m

)

$150m of investment capacity created per annum

$300m currently available for deployment

0

50

050

2007 2008 2009 2010 2011

Free Cash Flow ($m, Historical Rates)

Significant leverage headroom

deployment

Significant earnings and value creation opportunities

Cash Conversion (%)

2.5

1.0

1.5

2.0 Target rangeCapacity

0.0

0.5

2010 H1 2011 H2 2011

Net Debt:EBITDA

21

Net Debt:EBITDA

Value Creative InvestmentValue Creative InvestmentYear Acquisition Spend Acquisitions Benefits 2011 ROIC2008 $184.7m SFS: Hawker Beechcraft Network expansion, customer capture 15.1%

MunichGatwick Increased market share

Extended service offering

Access to new technologies, platforms, customers

ASIG: FlygieneLegacy: Kidde Graviner customersLegacy: Kidde Graviner

Honeywell APU2009 N/A - - - -2010 $4.3m ASIG: SAS Ground Services Extended service offering

Location specific critical mass

66.7%

Location specific critical mass

2011 $126.6m SFS: BozemanBoca Raton

Network expansion, customer capture 13.3%

* The FBO acquisitions in 2011 are seasonal and ROIC is not representative of full year expectations, 2011 acquisitions time apportioned

Boca RatonSan JuanSt MaartenEdinburghMobile

Increased market share

Cost reduction

Improved scale and capability

Access to new platforms / customers / L F l M

plicensorsLegacy: Fuel Measurement

15.6%

22

2012: A Year of Further Progress2012: A Year of Further Progress

Continued slow recoveryContinued slow recovery

Leading indicators improving

Further operational improvement

Delivering revenue growth

Further operational improvement

Back office standardisation

Continued strong conversion

Enhancing profitability

Continued strong conversion

Significant investment capacity

Acquisitions delivering

Strong cash generation

Acquisitions delivering

Good pipeline of further opportunitiesValue creative investment

23

An Exciting FutureAn Exciting Future…

Strategic consistency Balanced aviation services and aftermarket focusStrategic consistency

Organic growth

Balanced aviation services and aftermarket focus

RecoveryOrganic growth

Strong underlying performance

Structural

Experienced teamOperational focusStrong underlying performance

Consolidation opportunities

Operational focus Cash generation

Investment capacityFragmented marketsConsolidation opportunities

Superior through cycle returns

Fragmented markets Value creation through consolidation

Pre-tax through-cycle return on invested capital >12%Superior through-cycle returns Progressive dividend policy

24

AppendixAppendix

Five Year RecordFive Year Record

$m 2011 2010 2009 2008 20072011

vs 2007$Revenue (fuel adjusted(1)) 2,136.7 1,964.4 1,884.7 2,137.4 2,079.5 3%EBITDA(2) 260.5 231.1 217.3 265.1 270.0 (4%)EBIT(2) 198 9 171 4 156 8 203 0 211 4 (6%)EBIT( ) 198.9 171.4 156.8 203.0 211.4 (6%)Margin %(2) (fuel adjusted(1)) 9.3% 8.7% 8.3% 9.5% 10.2% -EPS(2) 29.0c 27.3c 22.8c 29.7c 30.7c (6%)F C h Fl 185 8 178 6 214 5 142 7 88 6Free Cash Flow 185.8 178.6 214.5 142.7 88.6 -Cash Conversion 102% 124% 179% 101% 63% -Net Debt to EBITDA 1.5x 2.1x 2.9x 2.9x 2.7x -

(1) Constant fuel price(2) Pre exceptional items(3) 12 th t t

ROIC(3) 10.6% 9.5% 8.4% 9.9% 10.9% -

(3) 12 month constant currency average

26

Revenue Split and Organic GrowthRevenue Split and Organic Growth

Flight Support 62% AftermarketFlight Support 62%

Organic 2%

AftermarketServices & Systems 38%

Organic 12%

ERO 76%

Organic 15%

ASIG 29%

Organic 2%

Legacy 16%

Organic 11%

APPH 8%

Organic (9%)

Signature 71%

Organic 1%

Revenue ($m) US RoW Total

Business 773.0 173.4 946.4

Commercial 289.4 94.3 383.7

g ( %)

Signature RoW 18%

Organic (1)%ERO 511.1 101.9 613.0

Legacy 90.8 39.3 130.1

APPH 12.2 51.3 63.5

1,676.5 460.2 2,136.7

Signature US 82%

Organic 2%

g ( )

27

Signature’s Market OutperformanceSignature s Market Outperformance

30%

10%

20%

(10%)

0%

(30%)

(20%)

( )

(40%)

(30%)

ov-0

7ec

-07

eb-0

8ar

-08

ay-0

8ul

-08

ug-0

8ct

-08

ov-0

8an

-09

ar-0

9pr

-09

n-09

ul-0

9ep

-09

ov-0

9ec

-09

eb-1

0pr

-10

ay-1

0ul

-10

ug-1

0ct

-10

ec-1

0an

-11

ar-1

1pr

-11

un-1

1ug

-11

ep-1

1ov

-11

ec-1

1

No

De Fe Ma

Ma Ju Au Oc

No Ja Ma

Ap

Ju Ju

Se

No

De Fe Ap

Ma Ju Au Oc

De Ja Ma Ap

Ju Au Se

No

De

US year-on-year US versus 2007 Signature US year-on-yearSource: FAA

28

DisclaimerDisclaimer

This presentation contains forward-looking statements including, without limitation, statements relating to: future demand and markets of the Group’s products and services; research and development relating to new products and p p ; p g pservices; liquidity and capital; and implementation of restructuring plans and efficiencies. These forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Accordingly, actual results may differ materially from those set out in the forward-looking statements as a result of a variety of factors including, without limitation: changes in interest and exchange rates, commodity prices and other economic conditions; negotiations with customers relating to renewal of contracts and future volumes and prices; events affecting international security, including global health issues and terrorism; changes in regulatory environment; and the outcome of litigation. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

29