Helicopter Market Survey photo credit: http://www.russianhelicopters.aero/en/ HeliRussia May
Helicopter Deliveries civil helicopter outlook 18th world wide survey covering 1000 operators covering ~13% of the global turbine fleet We expect 4,000 to 4,500 new helicopter deliveries from - 2020 - Average of 805 new turbine-powered helicopters per year Fleet replacement and expansion expectations generally flat - Large Fleet operator demand remains muted in near term - Expectations fell in N. America, Europe and Asia - Purchase plans rose in Latin America, fell in China - Latin America claims highest 5 year fleet replacement and expansion percentage this year - Purchase plans in Brazil & India well above world average Near term outlook ( - 2018): - 58% of all 5 year purchases planned from -2018 Leading reasons for new aircraft purchase: - Aircraft age/condition, operating costs/safety - Contractual replacement requirements, - Improved range - Cabin size optimized for evolving missions - Performance gains - speed, payload, altitude 6000 5000 4000 3000 2000 1000 0 ~4,300 ~4,000-4,500 2011-2015 -2020 2015 deliveries down YOY with 5 year outlook lower 2 HONEYWELL - CONFIDENTIAL File Number
1999 2000 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fleet Replacement and Addition (%) 11% 17% 18% 18% 19% 21% 19% 19% 22% 21% 25% 26% 25% 23% 25% 28% 30% World fleet replacement and expansion plans 35% 30% 25% 20% 15% 10% 5% 0% Most recent new helicopter 5 year purchase plans slightly down 3 HONEYWELL - CONFIDENTIAL File Number
Fleet Replacement & Expansion Plans New helicopter purchase plans by region 70% 60% 50% 40% 30% 20% 10% 2008 2009 2010 2011 2012 2013 2014 2015 0% North America Europe Latin America Asia Middle East / Africa Purchase plans up in Latin America, slightly down everywhere else 4 HONEYWELL - CONFIDENTIAL File Number
Five year demand for new helicopters by region Middle East / Africa 9% 2015 Asia 14% Europe 24% Latin America 19% North America 34% Middle East / Africa 9% Asia 13% Europe 24% North America 29% Latin America 25% Americas account for 54% of global demand 5 HONEYWELL - CONFIDENTIAL File Number
Value of purchasing plans by region Americas account for 44% of world value 6 HONEYWELL - CONFIDENTIAL File Number
Five year purchase mentions by class 2015 Twin share increased on interest for Bell 429 and Airbus H135 7 HONEYWELL - CONFIDENTIAL File Number
Five Year Fleet Replacement and Expansion Expectations for New Turbine-Powered Helicopters by Size Category Helicopter class preference over time World 45.1% 46.9% 40.7% 48.9% 44.8% 20.9% 31.1% 24.6% 24.5% 25.8% 24.6% 18.6% 33.0% 30.6% 27.8% 2.9% 3.9% 1.7% 1.9% 1.5% U.S. / Canada Single-Engine Intermediate/Medium Heavy Five Year Fleet Replacement and Expansion Expectations for Surv ey Year New Turbine-Powered 2012 2013 Helicopters 2014 2015 by Size Category Europe 54.8% 61.8% 61.4% 65.2% 60.3% 38.0% 39.4% 19.2% 21.2% 36.1% 37.0% 36.5% 38.0% 36.6% 37.8% 15.8% 16.3% 12.1% 22.1% 18.2% 26.0% 22.0% 17.1% 22.5% 26.5% 41.0% 44.8% 19.1% 23.4% 25.7% Single-Engine Single-Engine Intermediate/Medium Intermediate/Medium 2.0% 1.4% 0.8% Heavy Heavy Surv ey Year twin engine aircraft 2012 2013 experience 2014 2015 increased interest Latin America / Caribbean 8 HONEYWELL - CONFIDENTIAL File Number
Operator s reasons for model choice Reasons for Model Choice Operators Worldwide The respondents are asked, What makes this model the best choice for replacement of you Range 85.0% Meets Curren Need for Lon Cabin S ize Cabin Com for t/am enities 0.9% 85.9% Meets Curren Sm aller Larger P er for m ance New(er ) Technology Br and E xper ience/p r efer ence 36.7% 60.6% 60.4% Speed Payload MTOW Endurance DOC/Fuel Bu HOGE/HIGE Hook Load Em issions Noise SHP Appear ance P r oduct S uppor t 9.7% Engines Airfram e Avionics Bre Other 6.0% P ercent of respondents planning to replace a current aircraft (either new or used). A llows for Multiple Responses. B Level of Servi Parts Availab Location of S 9 HONEYWELL - CONFIDENTIAL File Number
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Units Forecasted deliveries by helicopter class 1,400 1,200 1,000 Misc Cumulative -26 Share 2% 4% 28% 800 600 12% 400 200 0 Single-engine long cabin Single-engine short cabin 54% Up to 11,000 new deliveries from to 2026 10 HONEYWELL - CONFIDENTIAL File Number
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Forecasted sales by helicopter class $9 $8 $7 Cumulative -26 Share 4% 14% $6 $5 $4 $3 $2 $1 $- Medium Twin Twin Single Long Cabin Single Short Cabin 51% 11% 20% Deliveries worth about $72B in same period 11 HONEYWELL - CONFIDENTIAL File Number