Cambridge, MassachusettsResearch and Technology

90 Broadway, Suite 11 Cambridge, MA 02142

617-500-4800

Aurora Swiss AerospaceMühlemattstrasse 8

6004 Luzern Switzerland

+41-41-248-00-40

Manassas, Virginia Headquarters, Engineering/Product Development

9950 Wakeman Drive Manassas, VA 20110

703-369-3633

Bridgeport, West VirginiaManufacturing

3000 East Benedum Industrial Drive Bridgeport, WV 26330

304-842-8100

Columbus, MississippiManufacturing/Final Assembly

200 Aurora Way Columbus, MS 39701

662-328-8227WWW.AURORA.AERO

Aurora Flight Sciences is an Equal Opportunity Employer

Aurora Flight Sciences is a world leader in the development of

highly autonomous aircraft. Our mission is to change the way we

travel by applying autonomy and robotics to the development,

production and operation of advanced aircraft.

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2017 was quite a year for Aurora. We delivered on several significant program milestones, assisted the first governor in flying an autonomous aircraft, were honored as a Platinum Supplier, were chosen to build eVTOL urban mobility vehicles for a global company, and won two major government contracts. Our COO became head of Phantom Works, and our CEO was elected as the incoming President of the AIAA. To top it all, Aurora was purchased by the world’s largest and most successful aerospace company.

Autonomy Leader

In the Spring of 2017, Aurora was chosen by Uber as a collaborative partner for the Elevate program. This is part of a broad initiative we call “disruptive mobility,” aimed at shaping the future of on-demand urban air transportation. At the Elevate Summit we unveiled one of our electric vertical take-off and landing (eVTOL) concept aircraft, which had just achieved first flight. This is but the first step in a broad initiative to accelerate the urban mobility network of tomorrow.

We were delighted when Virginia Gov. Terry McAuliffe flew and commanded our Centaur Optionally-Piloted Aircraft (OPA) from a laptop computer onboard. His flight demonstrated the robotic capability that will change the way we fly and re-shape how aircraft will be utilized for transportation and operations in the future.

Mission-Ready Capabilities

The Defense Advanced Research Projects Agency (DARPA) XV-24A LightningStrike program moved ahead, completing its Critical Design Review (CDR). A subscale demonstrator successfully completed its flight test program in March, demonstrating transition between vertical and horizontal flight and the ability to fly sustainably at any point in between. We demonstrated full-scale captures of a Group 3 unmanned aerial vehicle (UAV) with our patented SideArm Launch and Recovery system. We also signed a large contract with the U.S. Air Force for a certified, operational version of our record-setting Orion medium altitude long endurance unmanned aerial system (UAS).

Strengthening Partnerships

Aurora’s West Virginia facility was awarded the highest recognition for supplier excellence from Northrop Grumman Corporation for high levels of quality and delivery performance.

Aurora manufactures the fuselage, nacelle and V-tail for Northrop Grumman’s Global Hawk and Triton. Additionally, the Sikorsky CH-53K passed Milestone C in April, clearing the way for a long production run. Aurora manufactures the nacelles and main rotor pylon for this aircraft.

Building for the future, Aurora signed a $499 million contract with the U.S. Air Force for the Aerospace Systems Air Platform Technology Research (ASAPTR) program. Our NASA relationship also expanded with new contracts to continue development of the D8 high-efficiency commercial airliner and to initiate development of an electric-powered variant under the Single-aisle Turboelectric Aircraft with Aft Boundary Layer propulsion (STARC-ABL) program.

Workforce Development

I am honored to have been elected the incoming President of the American Institute of Aeronautics and Astronautics (AIAA). The AIAA represents the aerospace workforce of today – and of tomorrow. I am passionate about STEM education and am committed to developing talent and increasing diversity throughout our industry and workforce. This will be an important priority for my two-year term.

Building Something Better - Together

Boeing completed its acquisition of Aurora on November 7th and we began operating under Greg Hyslop, Boeing CTO & Sr. VP Engineering, Test & Technology (ET&T). Operated as a

“Non-Fully Integrated Subsidiary” (NFIS), Aurora will retain its independent operations, management, identity and branding, even as we proudly become “A Boeing Company.”

Upon closing the acquisition, Aurora President Mark Cherry was immediately selected to run Boeing Phantom Works in St. Louis, thus assuring a close collaboration. Dr. Matt Hutchison, a 24-year veteran at Aurora, was promoted as COO. Dr. Brian Yutko was promoted to the role of VP for Research & Technology, leading our Cambridge, Luzern, Dayton and Mountain View offices. Clint Church, Aurora’s first new graduate hire back in 1990, was promoted to VP of Engineering. Manisha Desai was promoted to CFO in March. VP of Business Operations Kris Miller was selected to lead our Boeing integration activities, and Joe Granata was named VP for Shared Services.

Our team continued to demonstrate their passion and excellence through both paid and volunteer activities. Our Exceptional

Service Award winners for the year included: Tamara Pell, for her consistently outstanding support of our UAS sector programs; Jaime Reel and Richard (R.J.) Gritter, for their development of the flight controls on the XV-24A subscale demonstrator; Andy Holcomb, for his role leading the Global Hawk and Triton IPTs; and Larry Wirsing for his leadership on the D8 program. Another impressive accomplishment came when a team of our Manassas engineers competed in the 2017 Red Bull Flugtag held in August in

Pittsburgh, Pennsylvania. The Flight at the Roxbury team took home the gold, winning first place for their creativity and showmanship flying their entry off of a 22-ft platform over the Allegheny River.

The acquisition by Boeing means that we say goodbye to our investors and our Board of Directors who have served so diligently and faithfully over the past quarter century. I want to recognize Jim Albaugh, Marty Dandridge, Don Fraser, Darryll Pines, Norty Schwartz and Tony Tether for their service on our Board. I also thank Jeff Leonard and his team at the Global Environment Fund, Devin Talbott and his team at Enlightenment Capital, and Jim Schubauer, Ralph Cacci and the folks at Westbury Partners. We truly could not have reached this point without you.

Finally, to our current and future customers, I want to stress that the alignment with Boeing will strengthen our ability to support you. This combination of strength and innovation is all about bringing you the finest in new technology and new products. We look forward to working with you.

to Shareholders, Employees, Customers and Stakeholders

Sincerely,

John S. LangfordPresident and CEOAurora Flight Sciences Corporation

2017 Annual Report

Photo: Karen Dillon

Aurora’s Electric Vertical Take-Off and Landing (eVTOL) aircraft will provide on-demand transportation to minimize long commutes due to heavy traffic and urbanization in populated areas. Uber selected Aurora as a partner for their Uber Elevate program in April 2017 with the goal of achieving full-scale test flights in select cities by 2020. Having

completed a successful flight test program of the subscale aircraft, a full size aircraft is currently in development.

eVTOLOn-Demand Air Transportation

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The Research & Technology Sector is an agile and highly innovative organization within Aurora that focuses on developing the next generation of advanced autonomous flight systems. Equally capable of supporting both commercial and government customers, the R&T sector specializes in the core technologies of autonomy, electric propulsion, advanced manufacturing, advanced

aircraft design, and operations in the global airspace system.

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Research and Technology

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Orion is a twin-engine high performance UAS that can stay aloft over 100 hours at a time with payloads in excess of 1,000 pounds, enabling over three times the endurance and range of current ISR platforms. In December 2014, the Orion established the current UAS world endurance record in the 5,000kg and over weight category with an 80-hour, 2-minute and 52-second flight.

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OrionLong Range, Ultra Long Endurance UAS

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Aurora was awarded a twelve-month contract from NASA for continued development of the company’s subsonic D8 X-Plane (XD8). The XD8 is designed to demonstrate the key enabling technologies of the D8 commercial aircraft concept, which could yield substantial fuel, noise and operational efficiency improvements within the next decade.

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D8 and XD8Commercial Aircraft

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National Aviation Day

Aurora’s robotic copilot was demonstrated on a Boeing 737-800 simulator at the John A. Volpe National Transportation Systems Center, showcasing our innovation in cockpit robotics. These accomplishments built on Aurora’s successful installation and testing of autonomy components on a Diamond DA42, Cessna 208 Caravan, UH-1 Iroquois, and DHC-2 Beaver aircraft.

Cockpit Autonomy

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Artist Rendering

Aurora’s XV-24A LightningStrike Vertical Take-off and Landing (VTOL) X-Plane subscale vehicle demonstrator (SVD) aircraft completed its flight test program in early March 2017. The full-scale aircraft passed its Critical Design Review (CDR) the same month.

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In October 2017, the Federal Aviation Administration (FAA) granted a Special Airworthiness Certificate to Aurora’s newest optionally-piloted aircraft, a UH-1H helicopter. The aircraft is currently flying as the testbed for Aurora’s Tactical Autonomous aerial Logistics System (TALOS) technology, developed under the Office of Naval Research’s AACUS program. The UH-1H is the fifth

manned aircraft Aurora has converted to robotic-controlled or optionally-piloted operation and will continue test flights during 2018.

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AACUSAutonomous Aerial Cargo/Utility System

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Aurora’s leadership and staff are committed to serving our local communities through a variety of philanthropic and community outreach efforts. We are proud to support educational initiatives and programs that help inspire the next generation of engineers and scientists, and encourage students to pursue higher education and careers in Science, Technology, Engineering and Mathematics

(STEM). STEM programs that Aurora supports include the Team America Rocketry Challenge (TARC), Zero Robotics, FIRST Robotics, Girls in Aviation Day, Women in Aviation International, Women in Aeronautics and Astronautics, National Association of Rocketry’s Junior Space Modelling Team, and AIAA’s Design/Build/Fly.

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At Aurora, automation and robotics are just as important to building airplanes as they are to flying them. We are pioneering advanced manufacturing techniques such as tow-steered automated fiber placement, advanced materials such as boron, and additive manufacturing.

Aerostructures Manufacturing

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2017 was a big year for Aurora’s Centaur Optionally-Piloted Aircraft, which conducted numerous flight operations across the country for the National Oceanic and Atmospheric Agency’s (NOAA) GRAV-D program. The Centaur also made aviation history when Virginia Governor Terry McAuliffe became the first sitting governor to fly in a fully automated aircraft.

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SideArm is a runway independent UAV launch and recovery system capable of both land and sea-based operations. The SideArm system brings runway independence to a new class of large Group 3 fixed-wing UAVs, providing the versatility of rotary-wing aircraft with the payload and endurance of fixed-wing aircraft.

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Build Something Better

At Aurora, our people are passionate about flight and technology, and possess a curiosity that drives innovative ideas. We frequently achieve what others can’t thanks to a combination of experience, persistence, collaboration, and a culture of innovation.

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