Growth Milestones1942 Foundation

1950s Manufacture of Aerospace components

1960s Design & Manufacture first Landing Gear

systems

Manufactured the Apollo lunar module

landing gear

1970s First Major R&O Contract for USAF

1985 Management buy-out

First major military manufacturing contracts

(C-130, F-4, F-15, KC-135R)

1986 Listed as a Public company (TSX:HRX)

Growth Milestones

1987 Creation of Gas Turbine Division

1999 Creation of Aerostructure Division

2000 Merger with Devtek Corporation

2002 Design Engineering Expansion

2003 Awarded 10 year USAF R&O contract

2004 Acquisition of Progressive Inc. (Dallas)

2007 Celebrated 65 years

2010 Acquisition of Eagle Tool and E-2 (Ohio)

2011 Opening of Héroux-Devtek Mexico

Héroux-Devtek Today

LO NG UEU I L

LAVAL

K I TC HEN ER

EN G I NEER I NG

C LEVELAND

S PR I NG FI ELD

LANDI NG GEARMartin Brassard

PR O G R ES S I VE

M AG TR ON

D O R VAL

Q U ER ETARO

AEROSTRUCTURERick Rosenjack

C I N C I N N ATI

GAS TURBI NE COMPONENTSMike Meshay

HEROUX DEVTEK I NC.President and CEO

Gilles Labbé

Cincinnati

Kitchener

Toronto

City of Montreal

SpringfieldArlington

Dorval

Cleveland

Longueuil

Laval

Queretaro

358 M$ Annual sales in Fiscal 20111650 Employees 13 Facilities/Offices in North America Financially Sound Company

Major Investments during the last 3 yearsAccess to Capital

Héroux-Devtek Sales

Large civil16%

RJ / BJ12%

Helicopter & other

6%

Military47%

Military R&O12%

Industrial7%

Sales by segment

Landing Gear64%

Aerostructure29%

Gas Turbine7%

Sales by Division

Sales evolution

0

100

200

300

2005 2006 2007 2008 2009 2010 2011

Years

$

Landing Gear Aerostructure Gas Turbine

338

233

256

283308 320

358

Debt /EBITDA

Debt / Cap.

Héroux-Devtek 1.2x 27.6%

Industry Average 1.9x 31.5%

Industry Median 1.7x 30.3%

Financially sound

Our Customers

END USERS

O.E.M.s

TIER I

Broadening services to provide ultimate customer satisfaction

• 5 Axis high speed and conventional profile milling • Aluminum & Titanium• Tooling & Support

• Raw material integrator• Methods/concept Development• Manufacturing R&D• Customer support• Vacuum/dip brazing

• Machined part/hardware• Kits to support aftermarket/aircraft modifications• Small business partner

Complex Machining

Kitting Value-AddedServices

• Hole drilling-fastener installation• Wet sealant application• Cold expansion of holes• Bushing installation• Emerging business for structural assembly

Aircraft Assembly

AEROSTRUCTURE DIVISION’S CAPABILITIES

12 large 5-axis gantries, 270,000 sq ft climate-controlled facility

STATE OF THE ART MACHINING AND ASSEMBLY FACILITY

Landing Gear Division

Building on Experience to Design the Future

• 90 Engineers • CATIA V5-R17/18 & V6• MBD/DPD• Full Test capabilities:

Drop test tower up to 100,000 lbs

• Fully Integrated facility• Complete support• I.L.S.

• Complete system integration

• Full landing gear systems

• Supply Chain Management

• Small to Large size landing gear components

• Hydraulic actuators• Rotor Hubs

PrecisionManufacturing

Assembly Repair & OverhaulEngineeringDesign

LANDING GEAR DIVISION’S CAPABILITIES

Design & Development Office

90 experienced engineers

St-Hubert

2DROP

TEST

TOWERS

STATIC-FATIGUE-ENDURANCE

Drop Test Tower Specification Load Range (pounds): 5,000- 100,000 Max. Sink Speed (ft./s): 24 High Speed Data Acquisition System

(Ch.) 64/96 at 5kHz per channel

Static/Fatigue/Endurance Test Rig Specification: 3200 sq. ft. of Floor Space Servo Controlled Loading Actuator: 16 Data Acquisition System (Ch.) 64/128

HD’s route to integration

Repair & Overhaul :•Finishing•Assembly•Performance knowledge

Product improvement•One piece forging•Corrosion Protection•Credibility

MFG of Spare parts•Equipment•Programming•Know-how of critical part

80’s

Build To Print Assy •C130 Assy to Lockheed•KC-135 and P3 to US Government

Landing Gear Design•Design / Manufacture the Learjet 45 and RQ4A & B

90’s

Systems Design and integration•W&B, Steering, Retraction•CH53K and Dassault

2010

Design Development and Qualification•X45, BA 609, F-35 uplocks, Legacy 450 and LJ 85

2000We use our Engineering Expertise as a Locomotive

Constraints that will have to be managed:– Development schedules are challenging– Limited Allocated space and geometry of our product– Loads and Interfaces– Changes during the development phase

Integrator’s challengesInnovation

Landing Gear

Reliability

Weight

Cost

Understand the Customer’s requirements

Integrator’s challengesBetween the OEM and the supply chain

J.D.P /

P.D.R

•Harmonize Interfaces with aircraft and the different systems

•Loads Development•Design Trade Off

studies•Final Design

optimisation•Qualification Test Plan•Selection of Material

and Processes•Forging Drawing

Release

J.D.P / P.D.R. C.D.R. Prototyping Qualification

12 months 24 months6 months6 months

Integrator’s challengesBetween the OEM and the supply chain

J.D.P / P.D.R. C.D.R. Prototyping Qualification

12 months 24 months6 months6 months

C.D.R.

•Detail Design phase – Validation of the loads

•Optimization in terms of Reliability / Weight and Costs

•Performance & Reliability of the complete system with the different systems (Retraction systems / Steering control / W&B controls / etc.)

•Assemblies and Interface validation

•Drawings Release•Qualification Tests

Procedures •Preliminary

Suppliers selection

Integrator’s challengesBetween the OEM and the supply chain

J.D.P / P.D.R. C.D.R. Prototyping Qualification

12 months 24 months6 months6 months

Prototypin

g

•Final Drawings Releases (500+ different parts)

•Preparation of Tooling / Methods / Programming

•Suppliers Selection•Manufacturing and

Processing Authorization

•First Article and Source Inspection

•Assembly and Testing•Highly Accelerated Life

Testing (HALT)•Engineering Support

Integrator’s challengesBetween the OEM and the supply chain

J.D.P / P.D.R. C.D.R. Prototyping Qualification

12 months 24 months6 months6 monthsQualificatio

n

•Drop Testing•Static Testing•Endurance & Fatigue

Testing•Environmental Testing

•Safety of Flight = 6 months

•Full Qualification = 2 years

J.D.P / P.D.R. C.D.R. Prototyping Qualification

12 months 24 months6 months6 months

Integrator’s challengesBetween the OEM and the supply chain

Typical Lead time – 18 months

DWG release First delivery

How do we cope with the schedule challenges?

Organizational Structure

• Responsible for the first 10 shipsets

• Business Unit

Team & People• Commitment & Communication• Supply Chain

Risk Taking approach• Manufacturing • Forgings• Supply Chain

Integrator’s challengesBetween the OEM and the supply chain

Other Challenges

Development Costs• Development costs are the

responsibility of the integrators• Tooling & Dies• Engineering effort• Qualification effort

• Need Risk Sharing Partners

Contract Duration• Prices are fixed for the duration

of the contract• Performance goals are set for

the duration of the contract• MTBF / MTBUR / DR• Warranty• Delivery

• Need Risk Sharing Partners

Product Support• Need to cover the Fleet• Service centers• Field Representatives

• Need to offer 24 / 7 service• A.O.G.• Trend Monitoring to avoid large

retrofits

• Need Risk Sharing Partners

InnovationCustomer wants more:

Weight ReductionNoise Reduction

Manufacturing Processes

Performance Monitoring

Landing Gear

Reliability

Weight

Cost

Low Life Cycle CostsNew Material

Innovation

Research & DevelopmentMaterial & Processes

• Understand properties• New Materials• Green Corrosion Protection• New manufacturing Processes

Mechanics & Systems• Noise Reduction• Weight & Balance• Performance monitoring• Systems simulation

Chrome

Green

Thank you !MERCI

Thank You !