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1 Executive Summary June 2010

Executive Summary June 2010 - Greater Nagoya

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Page 1: Executive Summary June 2010 - Greater Nagoya

11

Executive Summary

June 2010

Page 2: Executive Summary June 2010 - Greater Nagoya

2

Financial Strength and Stability

• NYSE listed (HEI, HEI.A) • Annual sales of $538 million in FY09• 2,300 Team Members in 29 facilities in 13 States, Canada, Europe, and Asia• Celebrated 50th Anniversary in 2007• Celebrated 12th Anniversary of Lufthansa Technik’s Investment of $50 Million• Successful AAL Joint Venture & UAL, DAL, JAL, BA, XJET, IB Strategic Partnerships• Conservative financial culture ($1b Equity / $40m Debt)• Well Respected Board of Directors include, among others:

- Chairman and CEO of Lufthansa AG- Retired Chairman and CEO of Rolls Royce, Inc.- Retired Director of the Argonne National Laboratory

(US government’s largest laboratory)

Hollywood, FL – Headquarters 2009Hollywood, FL – Headquarters 1957

Page 3: Executive Summary June 2010 - Greater Nagoya

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HEICO History

1957 –HEICO

incorporated as

HeinickeInstruments Company

1964 First PMA

1991 Begin Major NPD

Program

1997 Lufthansa Buys 20% of HEICO

Aerospace

1972 JT8D and JT3D

Combustor PMAs

1990 ManagementChange

1996 Restructure Engineering Group to

Develop Complex Parts and establish

ETG

1999 First HPC

Blade & HPT Duct

PMAs

2004 Establish HEICO

Component Repair Group

2001 Establish

HEICO Parts Group

1985 Manchester

Accident Increases HEICO’s Market Share

2005 Establish HEICO

Distribution Group

Acquisitions

Page 4: Executive Summary June 2010 - Greater Nagoya

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Aviation - Products and Services

DISTRIBUTION

MANUFACTURING

PMA MANAGEMENTPROGRAMS

UNIT EXCHANGE&

DER REPAIR

COMPONENT MRO&

ASSET MGMT

A WIDE RANGE OF COST SAVING SOLUTIONS

WORLD’S LARGESTFAA-APPROVED PMA SUPPLIER

KITTING

Page 5: Executive Summary June 2010 - Greater Nagoya

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Defense, Space, and Medical - Products and Services

NICHE HIGH TECH SOLUTIONS

SPACEFLIGHT

HARDWARE

SATELLITECOMPONENTS

INFRAREDMISSILE

SIMULATION

X-RAYPOWER

TECHNOLOGY

LASERSYSTEM

COMPONENTS

MICROWAVETECHNOLOGY

Page 6: Executive Summary June 2010 - Greater Nagoya

6

Organization Chart

Engineering Design Team

Sierra Microwave Technology

Analog Modules

Santa Barbara Infrared

VPT

DATA & MICROWAVEGROUP

Connectronics/Wiremax

Dielectric Sciences &Essex X-Ray & Medical Equipment

EMD Technologies, Inc.

Leader Tech

Lumina Power

Radiant Power

Dukane

ELECTRICAL GROUP

HEICO ELECTRONIC TECHNOLOGIES CORP.CEO/PRESIDENT (700)

SVP - Finance & Admin. SVP - DevelopmentSVP - Technical

Engines & Accessories

Hardware & Accessories

Avionics & Power Systems

Manufacturing

Technical Services

PARTS GROUPPresident

Accessories Division

Avionics Division

Structures Division

Wheels & Brakes Division

Future Aviation, Inc.

NIACC - Avitech Technologies

Inertial Airline Services

Prime Air Inc.

REPAIR GROUPPresident

Seal Dynamics

DISTRIBUTION GROUPPresident

Thermal Structures

Jetseal

SPECIALTY PRODUCTSGROUPPresident

HEICO AEROSPACE HOLDINGS CORP.Eric Mendelson - CEO/President (1,500)

HEICO CORPORATION(NYSE:HEI & HEI.A)

Page 7: Executive Summary June 2010 - Greater Nagoya

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• World’s Largest Supplier of PMA Parts

• PMAs available in every area of aircraft and engine

• Part Repair

• PMA Management

• PMA Kitting

• Manufacturing

• 60 Engineers and 9 DERs on staff

• 500 Team Members

• 7 Facilities around the world

Parts Group

Page 8: Executive Summary June 2010 - Greater Nagoya

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• Accessories: Electro-Mechanical, Pneumatic, Hydraulic, Fuel

• Avionics: INUs, IRUs, Display Units, DGAs, Instruments, Autopilots

• Structures: Flight Controls, Radomes, Thrust Reversers, Nacelles, Nose Cowls

• Wheels & Brakes

• 30 Engineers and 5 DERs on Staff

• Over 1,000 Proprietary HEICO Repairs

• Asset Management

• 560 Team Members

Repair Group

Page 9: Executive Summary June 2010 - Greater Nagoya

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• Broad scope of capabilities with 25,000+ part numbers

• Turn times averaging 16 days

• Low repair warranty rates at <0.8%

• 24/7 AOG support

Repair Group

Page 10: Executive Summary June 2010 - Greater Nagoya

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• Hauppauge, NY; Tampa, FL; London, UK; Singapore

• Leading Distributor of Hydraulic, Pneumatic, Mechanical, and Electro-Mechanical components

• Leading Designer and Distributor of engineered seals

• Distributor for HARCO, Thompson, Circor, Cox & Company, CCS Custom Control Sensors, Triumph Controls, Apph BBA Aviation, Donaldson, Parker Pradifa, Aero Design, Parker Chomerics, Radiant Power Corp, Meggitt, GKN Aerospace

• 100 Team members

Hauppauge, NY

Distribution Group - Seal Dynamics

Page 11: Executive Summary June 2010 - Greater Nagoya

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• Corona, CA, Indianapolis, IN, Roswell, NM & Spokane, WA

• Leading Manufacturer of Foil Wrapped Insulation and Composite Panels

• Leading Manufacturer and Overhauler of Fan Exit Guide Vanes

• Leading Manufacturer of Resilient Metallic Seals (C, V, Omega, E Type)

• 400 Team Members

Specialty Products Group - Thermal Structures & Jetseal

Page 12: Executive Summary June 2010 - Greater Nagoya

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HEICO offers a wide range of PMA/DER

Cockpit/Avionics• INUs, IRUs• Display Units• DGAs• Instruments• Autopilots• Radomes• Nose Cowls• Battery Packs• Cockpit Paper

Landing Gear• Wheels and Brakes • Landing Gear

Wing• Flight Controls• Actuation Systems• Guides

Components• Electro-Mechanical• Hydraulic Pumps• ACMs, CSD/IDG• Batteries• APUs

Fuselage/Interiors• In Flight Entertainment• Lavatories• Seat Parts• Tray Tables• Galleys• Overhead Bins

Engines• CFM56• CF6• CF34• PW2000• PW4000• V2500• JT8D• JT8D• LM2500/500/600

Engines• Combustion Chambers• Blades & Vanes• Fan Exit Guide Vanes• Shrouds (single crystal & equiax)• Thrust Reversers• Acoustic Panels• Pneumatic/Bleed/Anti Ice Valves• Heat Shields• Insulation Blankets

Engines• Fuel Pumps• Nozzles• Gears• Shafts• Bearings• Starters• Rings• Spacers• Expendables

Page 13: Executive Summary June 2010 - Greater Nagoya

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Engine Parts• CFM56, CF6, CF34, PW2000, PW4000, V2500, JT8D, JT9D, LM2500/5000/6000• Combustion Chambers, Blades, Vanes, Seals, Rings, Spacers, Heatshields, Bearings,

Gears, and Consumables• Parts in Every Engine Section - from Fan to Turbine ExhaustControls & Accessories Parts• ACMs, CSD/IDG, Batteries & Battery Packs, Hydraulic Pumps, Actuation, Landing Gear,

Pneumatic/Bleed Air/Anti-ice Valves, APUs, Fuel Pumps/Controls/Nozzles, Thrust Reversers, Starters, Interiors, In Flight Entertainment, Lavatories

Parts Group - FAA Approved Parts

Over 6,000 FAA Approved Parts500+ New Parts Developed Per Year

Over 4 Million Parts Shipped Annually

Main Fuel Pump Matched Gear SetIFE Touch Screen FaucetBattery Pack

Page 14: Executive Summary June 2010 - Greater Nagoya

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Parts Group - Engineering, Design & Test

INDEPENDENT PARTS MARKET LEADER

• World’s Largest Independent Supplier of Aircraft and Jet Engine Parts

• First FAA Part Approval in 1957• Research & Development

– 120 Team Members– $8 Million Annual R&D

• State-of-the-Art Digital Technical Library• State-of-the-Art Equipment to Re-Engineer,

Design and Test In-House– Materials: SEM, Spectrometer, FTIR– Metrology: CMMs– Design: Pro-E, Unigraphics, others– Testing: Laser Holography, Shakers– Analysis: FEA, Structural & Thermal

• 60 Engineers, 20 with Advanced Degrees• 9 FAA Designated Engineering

Representatives (DERs)• 500 Team Members

Page 15: Executive Summary June 2010 - Greater Nagoya

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Parts Group - System Approach to PMA Development

Example:HEICO can provide PMA on 75% of the cost of material on most commercial Main Fuel Pump applications:

• Matched Gear Sets• Matched Bearing Sets• Shafts• O-Rings• Carbon Seals

Estimated Savings for CFM56 Fuel Pump Overhaul = $8,000

Page 17: Executive Summary June 2010 - Greater Nagoya

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Parts Group - Strategic Partnerships

• Investment in Advanced Technology Equipment• Investment in R&D• Profit Sharing • Focused Part Development by Product Types• Independent Supplier allows for Increased Purchasing Leverage

1997

2002

2001

2003

2004

A SOLUTION FOR:

2007

2010

Page 18: Executive Summary June 2010 - Greater Nagoya

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Thank you for listening!