When is the business aviation upturn coming and what role does the Mediterranean market play?

AEROSPACE INFORMATION REDEFINED When is the business aviation upturn coming and what role does the Mediterranean market play? Mediterranean Business Aviation 13 th September 2013 Daniel Hall Ascend Advisory Flightglobal Group ascendworldwide.com

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Overview Europe and the Mediterranean What part do they play? The global picture - The not so good news Med or the ROW? Who to watch out for Reasons to be positive Ascend s outlook for the business jet sector?

Business Jet Aviation Today Global Fleet and Delivery Data 674 19,380 2012 Delivery Total Total In service / stored 2003 Low point for deliveries 531 1,290 2008 Peak year for deliveries 8,417 delivered since Y2003 808 Average p/yr (to end-2012)

Business Jets Globally A Long Term Growth Market 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Number of In-Service / Stored Business Jets In-Service / Stored Total 2013 YTD end-aug

European BizJet Fleet Inventory Growth or not so 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 Europe In-Service & Stored 3500 3000 2500 2000 1500 1000 500 0 Italy 6% Portugal 8% Switzerland 9% Others Finland Denmark Russia France Malta Turkey Swiss Austria UK Germany Top 10 Countries Operate 75% of the 2,792 European BizJet Fleet Spain 6% Turkey 5% France 9% Germany 21% UK 19% Russia 4% Austria 13% Operator Location of New Deliveries since Jan 2012 0 10 20 30 40

Mediterranean Countries used in Ascend s Analysis France 189 Italy 134 Spain 121 Turkey Malta Israel Greece 33 30 53 114 Med' Countries 4% ROW 96% Egypt 29 Morocco 27 Slovenia 21 Lebanon 19 Libya 12 Cyprus 10 Algeria 8 Tunisia 4 Montenegro 4 Monaco 4 Croatia 4 Syria 3 Bosnia-Herzegovina 3 Palestine 1

Mediterranean Fleet Growth 823 bizjets in-service / stored today 900 800 700 New deliveries since Jan 2012 Israel, 1 Cyprus, 2 Morocco, 1 600 500 400 300 Turkey, 11 France, 8 Greece, 3 200 100 0 Spain, 2 Slovenia, 1 Malta, 10 Italy, 5 Lebanon, 1 Monaco, 1 France - only Italy - only Egypt, Malta, Morocco, Slovenia, Spain, Turkey Med 80% in a corporate role; 10% with Government / Heads of State, 10% Other

Largest Operators and Most Dominant Types Top 10 Operators by Fleet Size Top 10 Types by Fleet Size 25 22 Falcon 7X, 19 Challenger 605, 18 Gulfstream G550, 18 Citation Mustang, 38 Citation II, 31 20 15 10 19 19 17 16 14 12 12 12 12 5 0 Falcon 2000, 19 Citation Sovereign, 19 Challenger 604, 20 Falcon 50, 21 Citation XLS, 21 Citation II and Mustang have an 8% share of the total Mediterranean fleet

How about Malta? Business Jet Fleet has witnessed rapid growth since 2009 60 50 40 30 20 10 0 Today s fleet of 53 includes 9 bizliners and 20 Large / ULR aircraft Since conference one year ago, fleet has doubled

Business Liner ( Bizliner ) Jets Established global fleet led by 112 x BBJ1 and 68 x ACJ319 aircraft Embraer s Lineage joined from 2007 today numbers 19 300 250 200 150 100 50 0 Business Liner Historical Fleet Trends (since Y1998) Y1998 Y1999 Y2000 Y2001 Y2002 Y2003 Y2004 Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011 Y2012 Y2013 Boeing BBJ3 Airbus ACJ320 Embraer Lineage Airbus ACJ318 Boeing BBJ2 Airbus ACJ319 Boeing BBJ1

Business Liner ( Bizliner ) Jets LATAM / Caribbean 8% Middle East 25% Europe 26% Asia- Pacific 20% North America 15% Unknown area Africa 3% 3% Private / Gov't / Corporate 40% Air Taxi / Charter 33% OEM 2% Airline 6% Bank, SPC / Lessor 1% Fractional Operator 2% Military / Gov't Operator 16%

Global New Deliveries Not such a smooth history 1400 Number of New Business Jet Deliveries 1200 1000 800 600 400 200 0 New Deliveries 2013 YTD end-aug

New Business Jet Deliveries Stable, but no recovery yet Business Jet New Deliveries 2007 2008 2009 2010 2011 2012 2013 0 200 400 600 800 1000 1200 1400 North America Latin America and Caribbean Africa Unknown area Europe Asia-Pac Middle East Ascend 2013 Remaining Delivery Forecast Challenger 300 remains the leader (just like in 2012) at 31 new deliveries G550 (29), Global 6000 (24), Falcon 7X (23) and G650 (22) follow to signify dominance of top-end types

Delivery trend shows move to larger sizes 100% 90% Bizliner Percentage of Deliveries 80% 70% 60% 50% 40% 30% 20% Heavy Medium Light-Medium Light Entry Level 10% VLJ 0% 2003 2008 2012 Delivery Year When looking at value of deliveries, large / heavy segments become a ~50% share

Second-hand Market Sales Transactions Improvement, but not a great 2013 so far Business Jet Used Sales Transactions 2007 2008 2009 2010 2011 2012 2013 0 500 1000 1500 2000 2500 3000 3500 4000 North America Latin America and Caribbean Africa Unknown area Europe Asia-Pac Middle East H1 sales total of 1,550 versus 1,724 in H1 2012. High % (79) in North America versus an average of 72% over past six years

The Downturn was Severe for all Segments Market Value Relative Performance to Q1 2007 130% 120% 110% 100% 90% 80% 70% 60% 50% 40% 30% MARKET VALUE TRENDS ALL SEGMENTS, RELATIVE PERFORMANCE TO Q1 2007 Q1'07 Q3'07 Q1'08 Q3'08 Q1'09 Q3'09 Q1'10 Q3'10 Q1'11 Q3'11 Q1'12 Q3'12 Q1'13 Q3'13 Source: Ascend Online Values (V1) VLJ, ENTRY, LIGHT LIGHT MID MED SUPER MID LARGE HEAVY LARGE ULR BIZLINER

Medium / Super Mid-Size Sector: Competition has shaped value trends Market Value Relative Performance to Q1 2007 140% 120% 100% 80% 60% 40% 20% MARKET VALUE TRENDS MEDIUM / SUPER MID-SIZE SECTOR. RELATIVE PERFORMANCE TO Q1 2007 Q1'07 Q3'07 Q1'08 Q3'08 Q1'09 Q3'09 Q1'10 Q3'10 Q1'11 Q3'11 Q1'12 Q3'12 Q1'13 Q3'13 2007 Citation X 2005 Falcon 2000 2007 Falcon 2000EX EASy 2007 IAI G200 2007 Challenger 300 2002 Challenger 604 2001 Falcon 900C 2002 Falcon 900EX 2007 Falcon 900EX EASy Source: Ascend Online Values (V1)

Light / Mid-Size Sector: Split identified in recent years Market Value Relative Performance to Q1 2012 110% 100% 90% 80% 70% 60% MARKET VALUE TRENDS LIGHT / MID-SIZE SECTOR. RELATIVE PERFORMANCE TO Q1 2012 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 2001 Citation Excel 2006 Citation XLS 2008 Citation XLS+ 2007 Citation Sovereign 2002 Hawker 800XP 2002 Learjet 45 2006 Learjet 45XR 2003 Learjet 60 2008 Learjet 60XR 2008 Hawker 900XP 2008 Hawker 850XP 2000 IAI Astra SPX 2009 Gulfstream G150 Source: Ascend Online Values (V1)

The US is still the largest market - by some distance Business Jet Geographical Distribution Europe 15% North America 64% LATAM & Carib 12% Asia Pacific 5% Unknown 0% Middle East 2% Africa 2% US share alone is 61%

Emerging markets are driving fleet growth Argentina 155 India 160 Germany 431 Hong Kong 107 Operator Country Austria Venezuela United Kingdom China 266 207 404 Fleet Size Today 210 Canada 512 Mexico 757 Brazil 784 0 50 100 150 200 250 300 350 400 450 Absolute Fleet Growth 2007-2013 Top 10 omitting Number 1: USA. Growth of 1,227 a/c from 10,609 to 11,836

Reasons to be positive (particularly for Bombardier): Large firm order backlogs from NetJets and VistaJet 80 70 60 50 40 30 20 10 0 NetJets VistaJet NetJets - just over 200 on order incl 75 x CL350s & 42 x P300s Over 100 with VistaJet 28 x Global 6000s and 50 x Global 5000s

New models seek to stimulate demand 2013 Learjet 70,75, Falcon 2000S & LXS Citation M2, Sovereign 2014 Legacy 500, Eclipse 550 Challenger 350, Lear 85 HondaJet 2015 Citation Latitude Cirrus SF50, Legacy 450 2016 Global 7000 / 8000 2017/18 Citation Longitude BBJ-Max, Pilatus PC24

Steady Growth in Annual Deliveries Forecast 1,200 Forecast New Business Jet Deliveries 1,000 800 600 400 200 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Very Light Jet Entry Level Light Light/Medium Medium Heavy Bizliner Forecast shift to the right recovery not on as early as expected Light segments forecast to take longer to recover

Ascend and Business Aviation Data & Information Market Intelligence Valuations / Appraisals Market Value Base Value Future Values Maintenance and Spec, and Utilisation Adjusted Market Commentaries Portfolio Service Full Helicopter Coverage Business Turboprop Coverage Business Jet Delivery Forecast Management Consultancy Team with wideranging experience in biz-av projects Sector Expertise US EU Asia China Middle East Supporting key market participants OEMs, financiers, lessors, investors, operators The information contained in our databases and used in this presentation has been assembled from many sources, and whilst the utmost care has been taken to ensure accuracy, the information is supplied on the understanding that no legal liability whatsoever shall attach to Ascend, its subsidiaries, their officers, or employees in respect of any error or omission that may have occurred.