AEROSPACE, DEFENSE & GOVERNMENT SERVICES

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1 Harris Williams & Co. Ltd is a private limited company authorised and regulated by the Financial Conduct Authority, incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

2 Number of Deals AEROSPACE VALUATION AND M&A TRANSACTION DATA STOCK PERFORMANCE AND TRADING MULTIPLES ($ in millions) Aircraft OEMs CY2017E CY2017E CY2017E Current Market % of Stock Price Rev enue EBITDA EBITDA MarginStock Price Cap 52-Wk High YoY Change EV / CY 2017E EBITDA Bombardier $16,786 $1,0 6.0% $1.73 $3, % 79.7% Boeing 92,098 11, % , % 38.6% Airbus 72,701 6, % , % 23.3% Embraer 5, % , % (24.0%) Aerospace Equipment and Structural Components Zodiac Aerospace $5,611 $ % $24.95 $7, % 38.9% HEICO 1, % , % 45.1% RBC Bearings % , % 32.0% Woodward 2, % , % 34.1% TransDigm Group 3,556 1, % , % 4.1% B/E Aerospace 3, % , % 36.8% BBA Av iation 2, % , % 57.5% Hexcel 2, % , % 23.5% KLX Aerospace 1, % , % 44.2% Rockwell Collins 5,381 1, % , % 8.3% Barnes Group 1, % , % 42.9% Astronics % % (0.6%) Kaman 1, % , % 13.0% Moog 2, % , % 53.9% Safran 17,412 3, % , % 23.7% Esterline Technologies 2, % , % 35.6% Arconic 12,8 1,833.0% , % -- Wesco Aircraft 1, % , % (17.6%) LMI Aerospace % % 64.3% Meggitt 2, % , % 13.8% Senior 1, % , % (5.5%) Heroux-Dev tek % % (11.4%) Ducommun % % 3.2% AAR 1, % ,8 87.7% 45.0% Magellan Aerospace % % 23.3% Spirit AeroSystems 6,872 1,087.8% , % 25.2% Triumph Group 3, % 26. 1, % (18.4%) GKN 12,161 1, % , % 26.0% Diversified Industrial Heavy Aerospace Exposure 5.7x 11.2x.1x Median: 9.2x 20.2x 1.3x 13.5x 13.5x 12.6x 11.6x 11.4x 11.3x.8x 9.6x 9.2x 9.1x 8.9x 8.6x 7.8x 7.2x 7.1x 5.7x Median: Ametek $4,032 $1, % $54.16 $12, % 9.3% Parker-Hannifin 11,843 1,813.3% , % 45.2% Eaton,596 3, % , % 25.1% Honeywell 39,205 8, % , % 11.0% United Technologies 58,701, % , % 11.2% Curtiss-Wright 2, % , %.1% Textron 14,442 1, % , % 29.8% Crane 2, % , % 40.9% Rolls Royce 17,7 2, %.03 18, % 23.2% General Electric 124,556 20, % , % (2.7%) NM 13.5x 12.5x 12.4x 12.1x.5x.3x 9.7x 9.5x 8.6x Median:.5x AEROSPACE M&A ACTIVITY Enterprise Value > $0 million x x 9.3x 9.2x x 11.5x 11.5x 9.9x x.4x Strategic Financial x 12.0x 8.0x 4.0x 2.0x - Median EBITDA Multiple SELECT RECENT AEROSPACE M&A ACTIVITY Announced Date Target Subsegment Acquirer Magnetic & Penetrant Aviation and Support Valence Surface Technologies TP Aerospace Maintanence, Repair, and CataCap Overhaul Air Cost Control Supply Chain Management HEICO and Distribution Avant Aerospace Maintanence, Repair, and West Star Aviation Overhaul SCHROTH Safety Products Aircraft Interiors Transdigm (Takata) LMI Aerospace Group Airframe and Engine Structural Sonaca Group Components Brek Manufacturing Airframe and Engine Structural Aernnova Components OAG Aviation and Vitruvian Partners Support ETI Tech Avionics & Electronics Soaring Pine Capital PAGE 1

3 LockheedM General Dynam Northr op Gr umm Ray The B Hunt ingt on I ngal si ndu BAE S Air bus Mercur y Sys LockheedMar ti ncor p. General Dynami cs Corp. Northr op Gr umman Corp. Rayt heon Co. The BoeingCo. Hunt ingt on I ngal si ndust ri es, I nc. BAE SystemsPlc Thales SA Air bus GroupSE Mercur y Systems, I nc. Kratos Def ense&securit ysol Kratos Def ense&securit ysol ut ions, I nc. Tel edyne Technol Elbit Sys Ha FLIR Sy L3Techno C Ult ra Elect ronicsho Orbit al C Chemr ing Tel edyne Technol ogies, I nc. Elbit SystemsLtd. Hari scor p. FLIR Syst ems, I nc. L3Technologies, Inc. Cubi ccor p. Ult ra Elect ronicsholdingspl c Cobham Plc Orbit al ATK, Inc. Chemr inggroup Pl c DEFENSE VALUATION AND M&A TRANSACTION DATA STOCK PERFORMANCE AND TRADING MULTIPLES ($ in millions) Defense Prime Contractors CY 2017E CY 2017E CY 2017E Current Market % of Stock Price Revenue EBITDA EBITDA Margin Stock Price Cap 52-Wk High YoY Change EV / CY 2017E EBITDA Lockheed Martin $50,144 $6, % $ $77, % 18.9% General Dynamics 31,418 4, % , % 40.8% Northrop Grumman 25,121 3, % , %.0% Raytheon 25,021 3,871.5% , %.7% Boeing 92,098 11, % , % 38.6% Huntington Ingalls 7,399 1, % , % 45.7% BAE Systems 24,627 2, % , % 28.9% Thales 16,585 2, % , % 20.2% Airbus 72,701 6, % , % 23.3% Defense Technologies 13.4x 12.7x 12.7x.1x 9.6x 9.5x 8.9x Median:.1x Mercury Systems $398 $ % $39.25 $1, % 94.5% Kratos % % 59.2% Teledyne Technologies 2, % , % 44.5% Elbit Systems Holdings 3, % , % 21.4% Harris 5,820 1, % , % 42.8% FLIR Systems 1, % , %.9% L-3 Communications,769 1, % , % 39.0% Cubic 1, % , % 26.3% Ultra Electronics Holdings 1, % , %.2% Cobham 2, % , % (21.0%) Orbital ATK 4, % , % 12.6% Chemring % % 43.6% Comtech Telecommunications % % (40.1%) AeroVironment % % (0.8%) NM.1x.6x 13.0x 12.5x 11.9x 11.4x.7x.2x 8.2x 7.7x Median: DEFENSE M&A ACTIVITY Enterprise Value > $50 million Announced SELECT RECENT DEFENSE M&A ACTIVITY Date Target Subsegment Acquirer Number of Deals x x 30.5x.5x 11.9x x 8.6x 8.4x x x.4x x 12.0x 8.0x 4.0x 2.0x Median EBITDA Multiple Daylight Solutions Defense Electronics Leonardo DRS Coleman Aerospace (L-3) Weapon Systems and Munitions Aerojet Rocketdyne Owl Computing Technologies Acuity Technology Partners (D.C. Capital Partners) Jan-17 Hi-Rel Group Defense Electronics Shoreview Industries Jan-17 LBA International and Aegis Tactical and Protection Safariland Engineering Equipment and Systems Jan-17 Implant Sciences Explosive Homeland Security L-3 Technologies Trace Detection Business Unit Technologies and Systems Dec-16 Meggitt Target Systems Unmanned Systems QinetiQ Group Dec-16 DRS Environmental Systems Tactical and Protection HDT Global Equipment and Systems Dec-16 Liquid Robotics Unmanned Systems Boeing Strategic Financial PAGE 2

4 Number of Deals GOVERNMENT SERVICES VALUATION AND M&A TRANSACTION DATA STOCK PERFORMANCE AND TRADING MULTIPLES ($ in millions) Government CY2017E CY2017E CY2017E Current Market % of Stock Price Revenue EBITDA EBITDA Margin Stock Price Cap 52-Wk High YoY Change EV / CY 2017E EBITDA SAIC $4,368 $ % $72.28 $3, % 38.6% Engility 2, % , % 54.5% CACI International 4, % , %.3% Booz Allen Hamilton 6, % , % 17.9% ManTech International 1, % , % 11.6% KEYW % % 36.9% Vectrus % % 4.8% 12.6x 11.4x 11.2x 11.2x.1x 9.7x 8.4x CSRA 5, % , % 8.5% Leidos, % , % (0.3%) NCI, Inc % % (7.2%) Diversified Heavy Government Exposure Serco $3,856 $ % $1.43 $1, % 18.7% 6.2x Median: 9.9x CGI 8,098 1, % , % 0.4%.4x Jacobs, % , % 32.1% AECOM 17, % , % 14.0% ICF 1, % %.2% Babcock International 6, % , % (8.3%) Fluor 20, % , % 2.1% 9.5x 9.0x 8.5x 7.9x KBR 4, %.49 2,2 86.3% 9.9% 7.5x Median: 9.2x GOVERNMENT SERVICES M&A ACTIVITY Enterprise Value > $50 million x 30.5x x 9.9x x x x 8.1x Strategic Financial 14.0x 12.0x 8.0x 4.0x 2.0x - Median EBITDA Multiple SELECT RECENT GOVERNMENT SERVICES M&A ACTIVITY Announced Date Target Subsegment Acquirer Centerra Group Technical and Security Constellis Sotera Defense Solutions KeyW Corporation CB&I (Capital Systems Engineering and Veritas Capital Business) Technical Assistance Preferred Systems Solutions STG Group Digital Globe Satellite Imagery & Analytics MacDonald Dettwiler VeriSign (idefense Security Accenture Intelligence ) Endgame (U.S. Federal Accenture Business) Triple - i Systems Engineering and Salient CRGT Technical Assistance Jan-17 Harris IT IT and Consulting Veritas Capital PAGE 3

5 OUR FIRM Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website. Aerospace, Defense & Government Building Products & Materials Business Consumer Energy, Power & Infrastructure Healthcare & Life Sciences Industrials Specialty Distribution Technology, Media & Telecom Transportation & Logistics HARRIS WILLIAMS & CO. OFFICE LOCATIONS Boston One International Place Suite 2620 Boston, Massachusetts 021 Phone: +1 (617) Cleveland 00 East 9th Street 20th Floor Cleveland, Ohio Phone: +1 (216) Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota Phone: +1 (612) UNITED STATES Richmond (Headquarters) 01 Haxall Point 9th Floor Richmond, Virginia 232 Phone: +1 (804) San Francisco 575 Market Street 31st Floor San Francisco, California 945 Phone: +1 (4) Washington, D.C th St. NW 2nd Floor Washington, D.C Phone: EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt Germany Phone: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) Beijing Hong Kong Mumbai NETWORK OFFICES New Delhi Shanghai PAGE 4

6 HARRIS WILLIAMS & CO. SOURCES Information included in this Industry Update was sourced from FactSet and Harris Williams & Co. proprietary information. DISCLOSURES Harris Williams & Co. ( and is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services. Harris Williams & Co. Ltd is a private limited company authorised and regulated by the Financial Conduct Authority, incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US. The information and views contained in this report were prepared by Harris Williams & Co. ( Harris Williams ). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams judgment and are subject to change without notice. Any financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams prior written consent. Copyright 2017 Harris Williams & Co., all rights reserved. PAGE 5