DoD Maintenance SymposiumBirmingham, Alabama

Standard Aero’s Lean / Cellular Transformation -Delivering Affordable Readiness

Dave Shaw - CEOOctober 24, 2005

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Standard Aero Profile

Commercial53%

Defense47%

Depot Engine MROKnoxville, TennesseeSan Antonio, TexasTillburg, HollandWinnipeg, Canada

Field Engine MROSydney AustraliaMontreal & Vancourver, Canada

Enterprise ServicesField & Depot TransformationLogistics Readiness

Balanced Customer Mix

95 Years in Business (Founded in 1911)$793M in Annual Sales (2004)1,300 Customers Worldwide2,500 Employees (US, Canada, Europe, Asia) ISO 9001 and ISO 14001 Registered FacilitiesFAA, DOT, JAA ApprovedPrivately held by The Carlyle Group

AE3007

PW100

CF/TF34

PT6A

GTCPAPU/ RE220

MRO Products

Divisional StructureCompany Background

Technical Focus

LM1600

TF40/TF50

A250/T703

AE2100

T56/501

MRO68%

CRS32%

Engi ne e r s / Te c hni c a l

3 3 %

P r oduc t i on11%

M gm t / S uppor t

5 6 %

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Best Value Readiness

Best ValueReadiness

StandardAero’s

Best ValueReadiness

Adopting a performance-based total engine

management system leveraging decades of

global MRO learning curve experience and integrating

Reliability Centered Maintenance into our

proprietary build practices

Operating a lean/cellular MRO facility focused on reducing variability, an engineered repair vs.

replace approach, inventory and supply chain

management, fast throughput, and exacting

process control

=

= Total CostHours Flown

+

Systems EngineeringRCM

EnterpriseLean / Cellular MRO

Minimum CPEFH

(Min Removals x Min Event Cost)

(Max Time on Wing)

=

3

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Main Drivers of Best Value Readiness

Design

Operation

Maintenance

Financing

Total Value of Readiness

4

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Proprietary Reliability Centered Maintenance (RCM)Process can be used to determine optimum workscope

10 100 1000 10000 1000000.01

0.05

5

Hours TSO

0.1

0.5

1

10

50

99.999

9590

99.99

63.2

Weibull Distribution Maximum Likelihood (Shape) = 2.23 (Scale) = 4,497.5 Hours TSO# of Failures = 155# of Suspensions = 0

F(t) = 1 - e-(t/÷)^÷

÷÷

T56 Engine

DEC

AD

ES O

F R

EAL-

WO

RLD

DA

TA

TECH DATA +CUSTOMIZATION