current state of the industry general aviation manufacturers association

CurrentState of the Industry

General Aviation Manufacturers Association

Current Market Review

Shipments and Billings

Total General Aviation Worldwide Shipments

General Aviation Manufacturers Association Current State of the Industry

0

500

1000

1500

2000

2500

3000

3500

4000

450019

97

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Q2

Worldwide Piston Shipments

General Aviation Manufacturers Association Current State of the Industry

0

500

1000

1500

2000

2500

300019

97

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Q2

Worldwide Turboprop Shipments

General Aviation Manufacturers Association Current State of the Industry

0

100

200

300

400

500

600

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Q2

Worldwide Business Jet Shipments

General Aviation Manufacturers Association Current State of the Industry

0

200

400

600

800

1000

1200

140019

97

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Q2

Worldwide Business Jet Shipments by Size

General Aviation Manufacturers Association Current State of the Industry

- 71% - 47% +4%

Light Jets Medium Jets Large Jets

Light ≤12,500#Medium 12,500# – 50,000#Large ≥ 50,000#

Total General Aviation Worldwide Billings

General Aviation Manufacturers Association Current State of the Industry

0

5

10

15

20

25

3019

97

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Q2

Bil

lio

ns

($)

0

100

200

300

400

500

600

700

800

900

1000

Pistons Turboprops Business Jets Total Shipments Total Billings

2011 Q2 2012 Q2

Second Quarter Comparison

General Aviation Manufacturers Association Current State of the Industry

387

294

381

918

867$8.2B

260

$7.2B

243220

North America ΔJets 50% +8%Turboprops 58% +15% Pistons 59% +5%

Latin America ΔJets 10% -5%Turboprops 12% -3% Pistons 9% -1%

Middle East/Africa ΔJets 7% -2%Turboprops 3% -7% Pistons 5% -1%

Europe ΔJets 20% -3% Turboprops 12% -3%Pistons 13% -6%

Asia Pacific ΔJets 14% +2%Turboprops 15% -2% Pistons 16% +2%

2011 Global Market Distribution

Sectors May Not Add Up Due To Rounding

Business Jet Global Market Distribution By Year, By Region

General Aviation Manufacturers Association Current State of the Industry

Turboprop Global Market Distribution By Year, By Region

General Aviation Manufacturers Association Current State of the Industry

Piston Global Market Distribution By Year, By Region

General Aviation Manufacturers Association Current State of the Industry

U.S. Exports

Exports Were Over 50% of Total U.S. Airplane Billings

U.S. Manufacturers Generated $4.3 Billion in New Airplane Export Revenue in 2011

Market Indicators

Flight Activity

World Markets

Corporate Profits

Used Market

Availability of Credit

Corporate Profits

Corporate Profits are Robust – Up Nearly 8% in U.S. (Q3 YOY)

Source:

As a Key Driver of Aircraft Purchases, Expect Healthy Corporate Profits to Ultimately Translate to Sales

Source: BEA

Some Hesitation on Making Capital Expenditures Due to Economic Uncertainty

Large Business Jets and Rotorcraft Benefitting Most Now, but Also Important to Mid and Small Sector

Continued Improvements in Infrastructure/Airspace are Vital

Source:

Emerging Market Demand Will Continue to Fuel the Recovery in 2012

Further Regulatory Cooperation Will Contribute to Industry Growth

World Markets

Between 2010 and 2011Business Airplane Operations Climbed 19% in the U.S. 3% in Europe

Source: FAA, EUROCONTROL

Flight Activity Climbed, But Only Marginally In Europe

Flight Activity

In December 2011, Percent of Active Fleets for Sale

Business Jets 13.8% ↓ 1 Percentage Point

Turboprops 9.6% ↓ 1 Percentage Point

Helicopters 6.5%↓ .5 Percentage Point

Inventories Continue To Decline, But Asking Prices Are Still DroppingSource: JETNET

Used Market

Lenders Demanding High Down Payments and Tough Loan Terms

For Used Market to Improve and Build Backlog, Lending Must Flow, Not Trickle

Export Credit Agencies' Role Will be Important in 2012

Availability of Credit

Market Indicators

Flight Activity

World Markets

Corporate Profits

Used Market

Availability of Credit