AAR Corp.

AAR Corp provides diverse services through the aerospace/aviation industry, including aviation
supply chain management, maintenance and repair, structures and systems, and aircraft sales and
leasing. Aviation Worldwide Services is now a part of AAR Corp, including its subsidiaries,
Presidential Airways and STI Aviation. Through the agreement, AAR Corp has added supplemental
airlift and specialized aircraft modifications to its list of services.

Website http://www.aarcorp.com

1100 North Wood Dale Road One Aar Place

Headquarters Wood Dale, Illinois 60191
United States

Phone +1. 630-227-2000

Industries Industrials: Aerospace & Defense

Employees 5,800

Revenue $2.0 B

IT Budget $70.9 M

IT Employees 250

IT Manager 34

Fiscal Year End May 31

 AAR Corp. and Its Subsidiaries

Subsidiary Name Incorporation

AAR Aircraft & Engine Sales & Leasing Illinois
AAR Aircraft Services, Inc. Illinois
AAR Airlift Group, Inc. Florida
AAR Landing Gear LLC Florida
AAR International, Inc. Illinois
Airinmar Holdings Limited United Kingdom
Telair International GmbH Germany
Teleflex Aviation Products AS Norway
AAR Manufacturing, Inc. Illinois
Brown International Corporation Alabama
Summa Technology, Inc Alabama
AAR Parts Trading, Inc. Illinois
AAR Allen Services, Inc. Illinois

Financial Information for AAR Corp.

Income Statement May 31, 2014 May 31, 2013 May 31, 2012

Revenue 2,035.00 2,137.30 2,065.00

Gross Profit 340.20 314.20 322.30

Operating Income 145.70 122.30 130.00

Net Income 72.90 55.00 67.70

Diluted Normalized
1.83 1.39 1.73
EPS

* In Millions of USD (except for per share items)

Revenue Growth: -4.78

Profit Growth: 8.27

IT Intelligence:

IT Priorities:
• Upgrading Windows operating systems and software for PC environment.

IT Structure:
• IT personnel are located in Cadillac, MI, though the IT group at AAR Corp. is primarily based out of
the company's headquarters in Wood Dale, IL.
• IT divisions are divided into several specialized teams: IT operations, application
development, supply chain IT, infrastructure, financial systems, and databases.

IT Intelligence:

2012:
• Developing software applications to integrate and support its legacy systems.
• Porting web applications into several languages using Coldfusion. This process will allow the
company to use the applications with its SharePoint 2010 environment.
Inside Scoops:
Date Type Inside Scoop
09/05/2013 Spending Wood Dale, IL – Data Warehousing. AAR Corp. has increased
Trend spending towards data warehousing technologies and database
tools. Kevin Larson, Vice President and Chief Information Officer,
is overseeing the implementation. (Researched by Natasha
Azar)
07/08/2013 Project Wood Dale, IL – Operating Systems. AAR Corp. is currently
Scoop upgrading Windows operating systems and software for PC
environment. Suresh Patel is a Senior Manager of Information
Technology. (Researched by Greg Turner)

Job Openings:
IT Developer- Illinois-Wood Dale
Sr Systems Engineer- Indiana-Indianapolis- Aircraft Services
Sr Engineer- Georgia-Atlanta

AAR Corp. Business News:

AAR Reports Second Quarter Fiscal Year 2015 Results - Dec 19, 2014
AAR (NYSE: AIR) today reported second quarter fiscal year 2015 consolidated sales of $490.0
million and net income of $15.2 million, or $0.38 per diluted share. For the second quarter of the
prior fiscal year, the Company reported sales of $540.7 million and net income of $20.0 million, or
$0.50 per diluted share.

Within the Aviation Services segment, sales decreased 11.1% to $377.7 million.
Supply chain sales to commercial and defense customers experienced double-digit growth but this
was offset by lower sales of the company's airlift and MRO services, although MRO facility
utilization ramped up during the quarter. Comparability of financial performance for this quarter
was also negatively impacted by the sale of two aircraft in the prior year period.
Within the Technology Products segment, sales declined by 3.2%. Commercial and military cargo
sales experienced double-digit growth offset by lower sales of mobility products.

"Today we reported second quarter FY 2015 results in line with our expectations. Sales to
commercial customers increased 2.1% primarily due to the double-digit growth from our Aviation
Services supply chain business," said David P. Storch, Chairman and Chief Executive Officer of AAR
CORP. "As we enter the second half of Fiscal 2015, we expect reduced revenues from our businesses
that are tied to military operational tempo, while we expect solid growth from our Aviation Services
supply chain and MRO businesses that, in total, should lead to sales growth on a consolidated basis."

During the quarter, the Company experienced the following business wins:

Commercial

oRenewed a five-year agreement with Allegiant for airframe maintenance of their MD-80 and 757
fleet of aircraft.

oSupported approximately 100 aircraft from the Company's supply chain hub in Brussels where
an additional power-by-the-hour contract for a new customer's fleet of 737s is expected.

Government and defense

oAwarded a $49 million contract by the Department of the Navy, Naval Supply Systems Command,
to provide personnel recovery, casualty evacuation and search and rescue airlift services in West
Africa.

oReceived a one-year extension on the vertical replenishment contract for airlift services for U.S.
Naval vessels in the Western Pacific and IndianOceans.

oSelected by AMMROC (Advanced Military Maintenance Repair and Overhaul Center), the Abu
Dhabi-based Joint Venture between Mubadala Development Company, Sikorsky and Lockheed
Martin, to support the design, outfitting and integration of key areas of AMMROC's state-of-the-art
facility in Al Ain, UAE.

Second quarter sales to commercial customers represented 64.7% of consolidated sales, compared
to 57.4% of consolidated sales in the second quarter of last year, while sales to government and
defense customers represented the balance.

Consolidated gross profit margin was 16.0% for the second quarter down from
16.8% last year due to unfavorable margin mix. Aviation Services segment gross profit margin was
16.9%, up slightly from 16.8% in the prior year period, and Technology Products gross profit
margin declined to 13.0% from 17.0% in the prior year period.

Selling, general and administrative expenses declined $4.0 million over the prior year as a result of
cost-saving measures implemented by the Company.

Net interest expense for the quarter decreased to $9.5 million from $10.2 million in the second
quarter of last year.
During the quarter, the Company generated $16.0 million in cash flow from operations and free
cash flow of $8.0 million while increasing its investment in its supply chain business to fund future
growth. The Company paid cash dividends of $3.0 million and re-purchased shares for $1.7 million.

Average diluted share count for the quarter was 39.1 million compared to 39.2 million in the
second quarter last year.

EMC leads aerospace company to the private cloud for faster business growth and
efficiencies

AAR replaced its HP storage with VMAX 10K enterprise storage configured with flash, Fibre
Channel, and SATA drives, along with EMC FAST ™ VP (Fully Automated Stor age Tiering for Virtual
Pools). VMAX 10K runs all of AAR's production applications, including Oracle E - Business Suite
(EBS ), Oracle Hyperion, Oracle Agile, Microsoft Exchange, Microsoft SQL Server, Microsoft
SharePoint, CATIA and AutoCAD design tools, ADP payroll, and Cisco Unified Communications
Platform.

Approximately 92 percent of AAR's production infrastructure is virtual ized with VMware ®

vSphere ™ .

For data protection , AAR relies on EMC RecoverPoint ® to replicate VMAX 10K in its primary data
center to EMC VNX ® unified stora ge at its disaster recovery site nearly 600 miles away.

AAR replaced HP Data Protector and CA ARCserv e backup - to - tape with EMC Avamar ®
deduplication backup software and system in their production environment , which is replicated to
the remote site for disaster recovery . Backups are managed with EMC Data Protection Advisor
(DPA).

In addition, AAR deployed VNX unified storage in 12 remote offices, replacing HP and Dell storage .
AAR uses EMC Unisphere ® for centralized management of the remote VNX systems.

RFD Agreement with International MRO Provider, AAR, to Bring Jobs, Offer Expanded Service
Capabilities to Rockford- August 18, 2014
The Greater Rockford Airport Authority (GRAA), in partnership with Governor Quinn, Senator
Durbin, Congresswoman Bustos, Winnebago County Chairman Christensen and City of Rockford
Mayor Morrissey, have reached an agreement with the largest nationwide and third-largest global
Maintenance, Repair and Overhaul (MRO) provider, AAR, to build a new hangar facility on Chicago
Rockford International Airport (RFD) grounds. The facility is expected to employ up to 500 people
and expands RFD’s current service offerings and infrastructure.

“This is a monumental economic and workforce development opportunity for RFD and the
Rockford region,” said Mike Dunn, RFD Executive Director. “We look forward to welcoming AAR
and are thankful for the collaboration and tireless dedication of Governor Quinn, Senator Durbin
and all of the partners to make this a reality.”

The 200,000 square-foot MRO facility is expected to operate 24 hours a day and will service next-
generation, wide-body aircraft. This will allow for scheduled and unscheduled service, modification
and overhaul and all other support services for military and commercial aircraft.

"I’m proud to have played a role in the negotiations that took place over the course of the past two
years between AAR, a first-class Illinois employer, and GRAA, an airport authority determined to
take full advantage of its own untapped potential,” said U.S. Senator Dick Durbin. "With this exciting
agreement and the new pipeline of aviation mechanics from Rock Valley College, the local landscape
has changed. Rockford has solidified its role as an aerospace giant and businesses across the nation
should take notice. Today’s announcement of a new state-of-the-art facility that will soon employ
500 people in good paying jobs is only the beginning. The future is bright at RFD.”

Final agreements between the partners are currently being developed and construction is expected
to begin within the year. The hangar will be located in the mid-field area of the airport and is slated
to open in Spring 2016.

Rockford joins AAR’s six other MRO locations (Duluth, MN; Oklahoma City, OK; Miami, FL; Lake
Charles, LA; Indianapolis, IN and Hot Springs, AR) and was ultimately selected due to the region’s
centralized location, cost-effectiveness, availability of specialized technical talent and RFD
development amenability. The region’s noted supply chain, which supports all aspects of the
aerospace cluster including manufacturing, assembly, maintenance, repair and overhaul services,
warehousing and distribution, was also a strong factor.

The agreement is a result of more than two and a half years of discussions and follows a series of
aerospace wins for the region including the current construction of a second campus for Woodward
and the recent ground-breaking of the 40,000 square-foot Rock Valley College (RVC) Aviation
Maintenance Technology Program (AMT) facility. Graduates of the AMT Program are prepared to
join the ranks of the more than 6,500 workers in the region who are currently employed in
aerospace companies like AAR, assuming positions as airline or general aviation engine and/or
airframe mechanics.

Governor Pat Quinn today announced a $15 million state investment to build the new maintenance
facility. The announcement is part of Governor Quinn’s agenda to create jobs and drive Illinois’
economy forward.

“Today’s announcement means Rockford’s economy is taking off,” Governor Quinn said. “We
welcome AAR to Rockford and are pleased to be a partner with them in creating hundreds of jobs
that will be in demand for many years to come.”
 The $15 million investment comes through the Illinois Department of Commerce and Economic
Opportunity (DCEO) from Build Illinois bond funds. DCEO also will provide the company with a
$600,000 investment toward training costs for its new employees.

The Rockford region is a prominent hub of aerospace activity and aviation manufacturing in the
country, boasting more than 200 industry specific companies and is home to a critical mass of tier-
one aerospace suppliers including Boeing, Woodward, UTC Aerospace Systems and GE Aviation.
The region’s rate of manufacturing employment is twice the national average, with more than 80
percent of Illinois’ aerospace workforce located in the Rockford area.

Technologies Employed in AAR Corp.

Technology Group Technology

ADP, ADP Enterprise eTIME, AddThis, Adobe FrameMaker, Adobe PageMaker, Adobe Shockwave,
Arbortext, AutoCAD, CST, Dell AppAssure, Dublin Core, GL (General Ledger), Google Analytics (GA),
Google Apps, IBM CATIA V5, IBM Clarity, IBM Clarity FSR, HP Virtual Connect, Infor Lawson, Infor
Applications Lawson Financials, Magic Software, Microsoft Exchange, Microsoft Management Console, Microsoft
Office, Microsoft Project, Microsoft Visio, Oracle Applications, Oracle Enterprise Manager, Oracle
EBS, Perceptive ImageNow, SAP Applications, SalesForce, Salesforce Sales Cloud, Thomson Reuters
Phoenix, Twitter, Urchin

Data Storage EMC Hardware, EMC SAN, Google Drive

Databases Google Analytics with Ad Tracking, IBM Informix, Microsoft Access, Oracle Database

Development Adobe Macromedia Flash, BIND Server, JRE, Microsoft Sysprep, Oracle Developer Suite, Oracle
Tools Discoverer, Oracle Forms, Oracle Reports, Quest Toad, Serena PVCS

.NET, AJAX, Adobe ActionScript, Adobe ColdFusion, C, C++, COBOL, CSS, Cache Control, Canonical
Content Tag, Cascading Style Sheets, Conditional Comments, DDL, Delphi, Google Font API, HTML,
Programming
HTML5, IFrame, Image Map, Java, JavaScript, LinkedInButton, NetBeans, PL/SQL, SGML, SQL, UNIX
shell scripts, VBScript, Viewport Meta, X-UA-Compatible, XML
Security McAfee, PGP Solutions, SSH, Symantec Norton Antivirus, VeriSign

Apache Server, Cisco Ironport (mail server), Cisco VPN, Compaq Hardware, Dell Hardware, HP
BladeSystem, HP Integrity Server, IBM AS/400, Linux, Microsoft Active Directory, Microsoft IIS,
Systems
Microsoft OS, Microsoft SharePoint Server, Sun Solaris, UNIX, VMware ESX Server, Windows 2003
Server, Windows XP, YouTube, YouTube IFrame Embed

Telecom Cisco Catalyst Switches, Cisco Hardware, Cisco IP Phones, DNS, GlobalSign nv-sa (SSL)

* These are the technologies on which we have competencies.

IT Key Management Found in AAR Corp.

Company Contact City, State Phone

Title Address Email Address
Name Person & Zip Number

9371
Director (786)
AAR Landing Russell Northwes Miami, FL
Human 337- r.stehn@aarcorp.com
Gear Services Stehn t 100th 33178
Resources 4222
Street

1100
Corporate North Wood
Candace (630)
AAR Director of Wood Dale, candace.goodpaster@
Goodpast 227-
Corporation Human Dale Road Illinois aarcorp.com
er 2066
Resources One Aar 60191
Place
1100
North Wood
Director of (630)
AAR Nicole Wood Dale, nicole.colen@aarcorp.
Human 227-
Corporation Colen Dale Road Illinois com
Resources 2878
One Aar 60191
Place
 Ami Director of 201 (231)
AAR Cadillac, ami.woodworth@aarc
Woodwor Human Haynes 779-
Corporation MI 49601 orp.com
th Resources Street 4898

1383
Kyle Vice President (321)
AAR General Melbourne kyle.mcgillivray@aarc
McGillivr , Human 837-
Corporation Aviation , FL 32935 orp.com
ay Resources 2442
Drive

1100
Vice President
North Wood
and Chief (630)
AAR Timothy Wood Dale, timothy.skelly@aarco
Human 227-
Corporation Skelly Dale Road Illinois rp.com
Resources 2060
One Aar 60191
Officer
Place
 AAR Corp. Organizational Chart:

Timothy Skelly

Vice President and

Chief Human Resources
Officer

Kyle McGillivray

Vice President , Human

Resources

Candace Goodpaster Russell Stehn Ami Woodworth Nicole Colen

Corporate Director of Director Human Director of Human Director of Human

Human Resources Resources Resources Resources
Name: Russell Stehn
Title: Director Human Resources
Mgmt Level: Second
Supervisor: Kyle McGillivray
Address: AAR Landing Gear Services

9371 Northwest 100th Street

Miami, FL 33178
Phone: (786) 337-4222
Fax:
Email: r.stehn@aarcorp.com

Responsible for all HR activities at this growing division of an international corperation.

Employment History
Company Position Started Ended

Smiths Aerospace Vice President Human Resources 1994 2004

Education History
School Degree Type Year

Harvard University Business Adminstration MBA

The University of Connecticut Economics BA

LinkedIn: www.linkedin.com/pub/russell-stehn/a/318/344

Name: Kyle McGillivray

Title: Vice President , Human Resources
Mgmt Level: Third
Supervisor: Timothy Skelly
Address:

1383 General Aviation Drive

Melbourne, FL 32935
Phone: (321) 837-2442
Fax:
Email: kyle.mcgillivray@aarcorp.com

Employment History
Company Position Started Ended

Bombardier Aerospace Human Resouces Director Oct 2003 Jan 2013

Rayonier, Inc. Human Resources Services Manager Jul 2001 Oct 2003

GST Steel Company Human Resources Manager Jul 1997 May 2001

Education History
School Degree Type Year

Fort Hays State University Business 1994

Hutchinson Community College 1990

AAR Corp. Competitors Analysis

AIR CW COL SPR Industry

Market Cap: 994.03M 3.15B 11.18B 5.84B 1.53B
Employees: 5,800 10,000 20,000 15,572 3.50K
Qtrly Rev Growth (yoy): -0.09 0.09 N/A 0.13 0.19
Revenue (ttm): 1.94B 2.65B 4.98B 6.72B 1.81B
Gross Margin (ttm): 0.16 0.32 0.30 0.08 0.27
EBITDA (ttm): 203.60M 399.35M 1.11B 449.30M 266.14M
Operating Margin (ttm): 0.07 0.10 0.19 0.04 0.10
Net Income (ttm): 63.30M 167.23M 618.00M -124.70M N/A
EPS (ttm): 1.62 2.94 4.42 -0.89 1.62
P/E (ttm): 15.81 22.34 19.04 N/A 19.05
PEG (5 yr expected): 1.36 1.62 1.41 0.63 1.56
P/S (ttm): 0.50 1.19 2.25 0.87 1.23

CW = Curtiss-Wright Corporation
COL = Rockwell Collins Inc.
SPR = Spirit AeroSystems Holdings, Inc.
Industry = Aerospace/Defense Products & Services

AAR Corp. Locations

201 Haynes St
Cadillac, Michigan 49601
United States

P: +1 231-779-8800

500 Gateway Dr
Goldsboro, North Carolina 27534
United States

P: +1 919-705-2400
World HQ
1100 North Wood Dale Road One Aar Place
Wood Dale, Illinois 60191
United States

P: +1 630-227-2000
F: +1 630-227-2039