Cpi Aerostructures, Inc. · AMEX:CVU
Cpi Aerostructures — Investor Presentation (February 2016)
23 slides from Cpi Aerostructures's investor presentation, Feb 3, 2016
Slide 1: Investor Presentation: A Premier Supplier of Aircraft Structures and Systems
Investor Presentation February 2016 A Premier Supplier of Aircraft Structures and Systems CPLA~* ee NYSE MKT: CVU
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: About CPI Aero: Overview
About CPI Aero: Overview Manufacturer of aerospace structural assemblies and integrated systems for commercial and defense markets Engine inlets Engine Cowl Doors | - a ‘its & supply chain services 1 v Program management { ¥ Global supply chain management 1 v Manufacturing engineering ae > - 1 ¥ Com
Slide 4: Aerostructures
Aerostructures “ses P wings Inlets / Nacelles Sat La Secondary Structures H-60 Stabilators Sikorsky H-60 Window Triumph G650 Embraer Phenom 300 ee ere elle cise e Cessna Citation X+ HondaJet HondaJet Bell AH-1Z | NGC ANIASQ-236 7-38 Pacer Classic Ill Special Products Sikorsky H-60 Fuel Panels NGCE-2
Slide 5: Investment Consideration
Investment Consideration hi Large and diversified Baccica) $421.7M Ne At 9/30/15 vs. 12/3114 A la Growing bid pipeline ™ Nabe ie opportunities are increasing y/ (mae record revenue in 2015 \ Se 4 (additional growth easenicoN C-Series Embraer £2 F-46 SLEP \ In both commercial/defense S/S
Slide 6: A Return To Growth
A Return To Growth 2016+ 20 1 5 + Defense portfolio strong and growing as a percentage of + Macro-environment i sales 20 1 4 shows signs of improving + Global defense spending on + Sequestration headwinds . the rise, providing more + $575BFY 16 defense iti y + DoD calls for retirement bill signed Sp
Slide 7: Driven By Renewed Strength in Defense Business
Driven By Renewed Strength in Defense Business Recent wins added approx. $225 million in backlog until 2022 E-2D Advanced) / F-16 Falcon T-38C Talon F-35A Japan E-2D Hawkeye/C-2A Trainer Hawkeye Greyhound $86.1M $53.5M $49M $10.6M $25-30M Contract Period | Contract Period) (Contract Period) Contract
Slide 8: Record Backlog
Record Backlog Consolidated Backlog at 9/30/2015 — $421.7 Million Funded 30% / Unfunded 70% Defense 71% / Commercial 29% Unfunded backlogrepresents remaining potential value of long term agreements = Funded = Unfunded = Defense = Commercial CPLA
Slide 9: Current Market Trends Driving Opportunity
Current Market Trends Driving Opportunity U.S. DoD budget back in growth mode >» U.S. fiscal and geo-political situations key drivers of defense spending! + After 5% growth in the approved FY16 budget, FY17 could see at least another 2%? + Intelligence, Surveillance and Reconnaissance (ISR) top prio
Slide 10: CPI Aero's Advantages
CPI Aero’s Advantages Since inception: - Focused on assembly and integration - Use suppliers to manufacture 100% of components Provides a competitive advantage over vertically integrated competitors due to: $$ + 35+ years ofhighly evolved assembly, supply chain and program management skills + Weare
Slide 11: CPI Aero's Role Within Supply Chain
CPI Aero’s Role Within Supply Chain Goal: Maintain and Expand our Tier 1 Status © Components or Manufacture Manufacture Finalassembly, detailedparts subassemblies aircraftsections finish and delivery CPI Aero is.... \ x UTC Aerospace Systems ‘NORTHROP GRUMMAN <. TEXTRON AVIATION
Slide 12: Programs (as of 1/14/16): Defense Aerospace
Programs (as of 1/14/16): Defense Aerospace UH-60 BLACK HAWK helicopter ‘T-38C Aircraft 9M contract E-2D Advanced Hawkeye & C-2A F-46 Fighter Jet Greyhound potential (oceneee MALT s F-35A CTOL Aircraft Defense Programs A te herospace systems Military aircraft ‘AH-1Z ZULU Helicopter E-2D Advanced Haw
Slide 13: A-10 Program: Update
A-10 Program: Update Background: + In 2008, CPI Aero won contract to produce assemblies for 242 wings for the A-10 + Received firm orders to produce | assemblies for 173 wings + March 2014, the DoD 2015 Budget Request called for the retirement of the entire A-10 fleet + Management concluded the A-10
Slide 14: Programs (as of 1/14/16): Commercial
Programs (as of 1/14/16): Commercial _ | oe’ | Business Jet — Honidfet i stosty__ HondaJetO | Business Jet $-92 Civil Helicopter x 3 € aMERAE TEXTRON AVIATION\ Embraer Phenom 300 business jets Cessna Citation X+ Civilian Jet ~
Slide 15: Programs and potential backlog revenue
08 09 10 41 #12 143 14 «45 «#16 «47 «18 «19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 TRIUMPH GROUP - for the Gulfstream G650 NSE Potential to collectively generate revenue of $421.7M during their remaining periods of performance UTC AEROSPACE SYSTEMS — for the DB~ ~s ISR Pod TEXTRON- for the Cessna Citation X+ civil
Slide 16: Bid Pipeline
Bid Pipeline 4/16) Defense opportunities increasing Defense vs Commercial By Position Within the Supply Chain Commercial 20% Defense ms Commercial a Prime mTier1 mTier2
Slide 17: Growth Strategy
Growth Strategy Continuedinvestment in automation and Expand global supply Maintain and grow chain services and Tier 1 status A eo productivity MRO Continuously . . improve delivery, Win additional new Continued w quality and = long-term programs LU improvementin a performance > manufacturing = [e)
Slide 18: Financial Highlights
Financial Highlights Recent Highlights CPLAces 18
Slide 19: Recent Financial Performance
Recent Financial Performance Q315 Revenue: Q315 Net Income: $26.8 Million $2.5 Million vs Q314 Revenue vs Q314 Net Income rE rt 44% Large Backlog: $421.7 Million at 9/30/15 vs. 12/31/14 Up Funded backlog $1 8M Unfunded backlog up $5.1 Million up $12.8 Million CPLA]. 19
Slide 20: Balance Sheet Highlights (as of 9/30/15)
Balance Sheet Highlights (as of 9/30/15) + $96.4M + $26.3M ¢ $35M, of which $10.3M is available + $69.8M ° $8.15/share * 0.38
Slide 21: 2016 Financial Initiatives
2016 Financial Initiatives Lower inventory levels and Strenauien reduce unbilled receivables (CEE) Sheet ens. Investments madein 2015 expected Automation to favorably impact margins Already lower than industry peers Improve Debt CoverageRatios Further Reduce Overhead& SG&A Expenses G&A rate reduced
Slide 22: Conclusion
Conclusion CPI Aero is well positioned to continue to grow its business due to: + Large, diversified and growing 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 tec
Slide 23: CPI Aerostructures
CPI Aerostructures Vincent Palazzolo, CFO (631) 586-5200 www.cpiaero.com Investor Relations Jody Burfening & Sanjay M. Hurry (212) 838-3777 cpiaero@lhai.com www.lhai.com CPL -
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