Slide 1: Q1'2015 Results Presentation
Q1’2015 Results Presentation May 6, 2015
Slide 2: Forward-looking statements
This presentation contains forward-looking statements that involve risks and uncertainties. All statements, other than statements of historical fact, included in this presentation, including without limitation, statements regarding projections, future financing needs, and statements regarding future
Slide 3: Recent Highlights
Recent Highlights Douglas McCrosson President & Chief Executive Officer CPLaccs :
Slide 4: Recent Business Highlights
Recent Business Highlights First Quarter 2015 Results In-line with Expectations for the Year E 2 Much Stronger Second Half Expected v2 | 2015 to be a Record Year in Terms of Revenue Total Backlog New Awards $442.6 Million $16.2 Million At 3/31/15 vs. 12/31/14 Through 3/31/15 vs. same period of ‘14 U
Slide 5: Financial Highlights
Financial Highlights Vincent Palazzolo Chief Financial Officer CPLaccs .
Slide 6: First Quarter 2015 vs. First Quarter 2014
First Quarter 2015 vs. First Quarter 2014 For the Three Months Ended March 31 2015 2014 (Unaudited) Revenue $19,876,566 $21,883,517 Gross profit 3,602,071 4,491,132 Gross margin 18.1% 20.5% Gross margin excluding A-10 program 23.1% 21.1% Income from operations 1,582,706 2,652,472 Net income 928,120
Slide 7: 2015 Revenue by Segment
2015 Revenue by Segme Defense Programs: $10.7 Million as expected...below Q1'14 due to lower revenues from E-2D program with Northrop Grumman as work on the new E-2D multi- year award has not yet reached its peak rate. Commercial Programs: $9.2 Million up from approximately $7.3 million reported in
Slide 8: 2015 Gross Margin
2015 Gross Margin 18.1% in Q1715 vs. 20.5% in Q1714 Affected by the change in estimate to the A-10 program as we continued to record revenue on the A-10 with zero gross margin Excluding the effect of the A-10 Program 23.1% in Q1715 vs. 21.1% in Q114 This increase is primarily the result of higher gr
Slide 9: 2015: Record Year in Terms of Revenue
015: Rec Year in Terms of Revenue Revenue * $92.0M — $102.0M . © 19% - 21%... : than historical i Gross Margin cP Aero wil continue to bookA-10 WRP revenue at zero prot + $7.2M - $8.0M 0 $13M . $15M ... due to the recovery of previously paid income taxes and the use of tax loss carry forwards relate
Slide 10: Revenue Breakdown: by Market
Revenue Breakdown: by Market Military/commercial split effected by recent military contract wins 2015 Revenue (Guidance) $92.0M - $102.0M Commercial 39% Strong revenue driven by recent wins Commercial Slight decline as the majority of new business winsin 2014 were for military programs Existing prog
Slide 11: Revenue Breakdown: by Subcontractor Role
Revenue Breakdown: by Subcontractor Role 2015 Revenue (Guidance) $92.0M - $102.0M More than double due to recentwins Tier 1 Double digit growth Tier 2 Slight decline due to G650
Slide 12: Revenue Breakdown: by Segment
Revenue Breakdown: by Segment Non-Aerostructures business expected to increase to 44% of total revenue 2015 Revenue (Guidance) $92.0M - $102.0M Kitting & SCM 36% genial seireca_ seta seer Kitting & SCM Over 70% growth fueled by recent prime contract wins with DOD Aerosystems 8% Aerostructures 56% 12
Slide 13: 2015 Financial Initiatives
2015 Financial Initiatives Expectto continueto pay down Swenaiien debt and reduce interest expense Position Investments ai ited to favorably impact operating efficiencies & Robotics Generate Positive $13M -$15 M expectedfrom recovery Cash Flow from of income tax related to A-10 WRP. Operations Furth
Slide 14: Investments
Investments + Tax refund / tax loss carry forwards related to the change in estimate of the A-10 WRP recorded 2Q’14 + $35M Revolving Credit Facility (expandable to $50M) Investments + Facility improvements * Cap-Ex + New programs + Marketing
Slide 15: Backlog, Recent Programs, Bids and Market Update
Backlog, Recent Programs, Bids and Market Update Douglas McCrosson President & Chief Executive Officer CPLaccs ‘
Slide 16: Large Order Backlog
Large Order Backlog Consolidated Backlog at 3/31/2015 — $442.6 Million Funded 27% / Unfunded 73% Defense 68% / Commercial 32% Unfunded backlogrepresents remaining potential value of long term agreements ea- = = Funded = Unfunded uMilitary Aerospace = Commercial CPLA 16
Slide 17: Long-Term Visibility - Contracts (as of 3/31/15)
Long-Term Visibility - Contracts (as of 3/31/15) ity and Operating Leverage 20 ‘21 ‘22 ‘23 ‘24 ‘25 Firm, Funded Contracts Provide Long-Term Revenue Visi 41 712 13 «14 «15 «#16 «#17 «18 «19 10 08 ‘09 HONDA AIRCRAFT - for the HondaJet businessjet, SIKORSKY- forthe UH-60 BLACK HAWK, US GOVERNMENT- fort
Slide 18: Recent Program Highlights
Recent Program Highlights ustomer Milestones o Extended E2/C2 OWP Kits requirements through 2019 bit ce o Concludedan order for additional 10 s/s of E2D seats oeemse veers" Added new funded backlog of $63.6 million during 4Q14 o Ramped up delivery of the Phenom 300 engineinlets from 2 s/s to 10+ s/s
Slide 19: Bid Pipeline
Bid Pipeline (4/30 Defense opportunities increasing Expect near-term acceleration of Tier 2 opportunities for large commercial Military vs Commercial By Position Within the Supply Chain Commercial — = Military = Tier 1 = Tier2 CPLA 19
Slide 20: Bid Landscape
Bid Landscape Lockheed Martin F-35 Boeing 787 Dreamliner oo { ’ Bombardier C-series Embraer E2 20
Slide 21: 2015 Focus Areas
2015 Focus Areas Continuedinvestment Deploy capitalto ga in automation and create shareholder 4 Malntaln and grow 6 productivity value e Replace A-10 Expand global supply Ww Continuously = program revenues LU chain services and = quality and very; with additional new S MRO Ss performance ° long-term
Slide 22: Conclusion
Conclusion CPI is well positioned to continue to grow its business due to: + Large and diversified backlog + Growing bid pipeline —- new opportunities for both the defense and commercial markets + Ability to perform on larger and more complex programs due to investments in advanced technologies + Va
Slide 23: Q&A Session
Q&A Q&A Session Douglas McCrosson President & Chief Executive Officer Vincent Palazzolo Chief Financial Officer CPLaccs 2
Slide 24: CPI Aerostructures
CPI Aerostructures Vincent Palazzolo, CFO (631) 586-5200 Investor Relations EG THE Lena Cati EQUITY GROUP (212) 836-9641 aS