Acquired by AVIC International TCM CONFIDENTIAL AND PROPRIETARY - - PowerPoint PPT Presentation

TCM CONFIDENTIAL AND PROPRIETARY

Agreement to be Acquired by AVIC International

December 14, 2010

TCM CONFIDENTIAL AND PROPRIETARY

Transaction Highlights

 Teledyne Technologies Incorporated and AVIC International

Holding Corporation announced an agreement for Technify Motor (USA) LTD., a subsidiary of AVIC International, to purchase Teledyne Continental Motors, Inc. (“TCM”) and Teledyne Mattituck Services, Inc.

 All cash purchase price of US$ 186 million; mutual 338(h)(10)

election

 Retention of Continental Motors’ employees; continued

investment by AVIC International in Mobile, Ala.

 Closing subject to customary conditions and regulatory

approvals(a)

(a) Customary closing conditions include clearance under the Hart-Scott-Rodino Antitrust Improvements Act and by the U.S. Government’s Committee on Foreign Investment in the United States (CFIUS), as well as obtaining all relevant Chinese Government Approvals

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TCM CONFIDENTIAL AND PROPRIETARY

Complementary Capabilities

 A leading supplier of general

aviation piston aircraft engines

 Turn-key capabilities

 Approximately 275,000 engines produced  168 global trademarks  1,548 PMAs  Presence in Mobile, Ala. Aerospace Park

 Global aerospace

supplier to commercial aviation

 Extensive international

experience, market access and distribution

 30 years of aerospace manufacturing  60 international offices  Sales of US$ 6 billion in in 2009

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TCM CONFIDENTIAL AND PROPRIETARY

The Opportunity

“China supplanted the U.S. as the world’s largest auto market after its 2009 vehicle sales jumped 46 percent” Source: Bloomberg, January 2010 “There are more than 320,000 general aviation aircraft globally, and the US accounts for 75 percent of that amount, compared with 900 registered general aviation aircraft in China”

Source: Civil Aviation Administration of China Source, November 2010

“With its eye on economic development, the Chinese government is looking to open new airspace, new airports, and new training facilities to general aviation” Source: US AOPA, October 2010

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TCM CONFIDENTIAL AND PROPRIETARY

About Continental Motors

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 Manufacturer of commercial piston

engines and spare parts for general aviation aircraft

 417 employees  104 year history and brand  FAA certified manufacturer  AS9100 certified company  Headquartered in Mobile, Ala.  Factory service centers in

Fairhope, Ala., and Mattituck, N.Y.

Annual Sales of approximately US$ 137M

(9 Mo. 2010 Annualized) OEM Aftermarket

(a) Represents new engines for new aircraft (b) Represents new and rebuilt engines, as well as spare parts and overhaul services, for existing aircraft (a) (b)

TCM CONFIDENTIAL AND PROPRIETARY

TCM Historical Milestones

1950s: A-65 developed into the 100-hp C-200, which powered the Cessna 150

M 1911 – 1920

1921- 1930 1931- 1940 1941- 1950 1951- 1960 1961- 1970 1971- 1980

1981 – 1990 1991 – 2000

2001- 2007 1900- 1910

1929: A-70 radial, seven-cylinder engine is introduced 1906: Type “O” 45-hp engine is developed

1911- 1920 1981- 1990 1991- 2000 2008 – 2009 2010

1905: Creation of original Continental Motors 1938: A-50 is added to the lineup to power the Piper Club and Taylorcraft 1945: Six-cylinder E-185 developed for Beechcraft Bonanza 1930: Four-cylinder engine is introduced to aircraft 1984: TCM produces TSIO-520-BE for Piper Malibu. It sets new efficiency targets for piston engines 1986: Powered by a TCM engine, the Rutan Voyager is the first piston-powered aircraft to circumnavigate the world without refueling 1960s: Turbocharging and fuel-injection are brought to general aviation by TCM 1997: NASA selects Continental to develop and produce GAP, a new 200-hp engine that

• perates
• n Jet-A fuel

2000s: TCM OEM market share nearly triples on strength of exclusive installations in premium composite aircraft 2008: Global recession impacts sales, particularly engines to OEMs 2010: TCM launches TD-300 Jet-A engine and unleaded gasoline development 2005: First certified FADEC engines

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TCM CONFIDENTIAL AND PROPRIETARY

Selected TCM Current OEM Installations

Cirrus SR20 Cirrus SR22 Diamond DA20 Mooney Ovation Mooney Acclaim Beechcraft Bonanza Beechcraft Baron Piper Seneca V Cessna Corvallis 350 Cessna Corvallis 400 Liberty XL2 Cessna LSA

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TCM CONFIDENTIAL AND PROPRIETARY

TCM Aftermarket Parts and Services

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TCM CONFIDENTIAL AND PROPRIETARY

Recent International Expansion

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2004 2005 2006 2007 2008 2009

U.S. Manufactured Piston Aircraft Export Sales as a % of Total Production

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Source: General Aviation Manufacturers Association

TCM CONFIDENTIAL AND PROPRIETARY

Piston Aircraft Compared to Population

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 USA Canada Australia Brazil

Population: 307M 33M 21M 192M Pop / Aircraft ~1,900 ~1,700 ~2,400 ~20,000

Active Piston Aircraft

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Source: General Aviation Manufacturers Association, World Bank

TCM CONFIDENTIAL AND PROPRIETARY

Potential Piston Aircraft Demand

100,000 200,000 300,000 400,000 500,000 600,000 700,000 USA Canada Australia Brazil China (based on Brazil) China (based on US, CA, AUS) Active Piston Aircraft

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Source: General Aviation Manufacturers Association, World Bank

TCM CONFIDENTIAL AND PROPRIETARY

地址:北京市朝阳区东三环南路2号 电话:010-65665922 010-65665923

AVIC International Aviation Customers

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TCM CONFIDENTIAL AND PROPRIETARY

AVIC International Selected Aviation Products

 Content on Airbus A320, as well

as Boeing 737, 747 and 787

 Boeing 737 assemblies

 Vertical fin  Horizontal stabilizer  Fuselage section 48

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TCM CONFIDENTIAL AND PROPRIETARY

This is a brief overview of AVIC International’s proposed acquisition of Teledyne Continental Motors, Inc. Viewers are urged to read Teledyne Technologies periodic reports filed with the Securities and Exchange Commission (“SEC”) for a more complete description of Teledyne, Teledyne Continental Motors, their businesses, strategies and the various risks that the companies face. This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, relating to earnings, growth opportunities and strategic plans. All statements made in this presentation that are not historical in nature should be considered forward-looking. Actual results could differ materially from these forward-looking statements. Many factors, including changes in demand for products sold to the commercial aviation markets, continued liquidity of the company’s customers and economic conditions, could change the anticipated results. Global responses to terrorism and other perceived threats increase uncertainties associated with forward-looking statements about the company’s businesses. Flight restrictions would negatively impact the market for general aviation aircraft piston engines and components. The pending divestiture of Teledyne Continental Motors involves various inherent risks, including those associated with securing customary government approvals. Various risks are identified in Teledyne’s 2009 Annual Report on Form 10-K and its Forms 10-Q. Viewers, particularly those interested in investing in Teledyne Technologies, should read these risk factors. Forward-looking statements are generally accompanied by words such as “estimate”, “project”, “predict”, “believes” or “expect”, that convey the uncertainty of future events or outcomes. Teledyne Technologies assumes no duty to publicly update or revise any forward-looking statements, whether as a result of new information or otherwise.

Disclaimer

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