TCM - Teledyne

December 14, 2010
Agreement to be
Acquired by
AVIC International
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
TCM CONFIDENTIAL AND PROPRIETARY
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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
TCM CONFIDENTIAL AND PROPRIETARY
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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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About Continental Motors
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
(a)
Aftermarket
(b)
(a) Represents new engines for new aircraft
(b) Represents new and rebuilt engines, as well as spare parts
and overhaul services, for existing aircraft
TCM CONFIDENTIAL AND PROPRIETARY
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TCM Historical Milestones
1905:
Creation of original
Continental Motors
1929:
A-70 radial, seven-cylinder engine
is introduced
1938:
A-50 is added to the lineup to power
the Piper Club and Taylorcraft
1945:
Six-cylinder E-185 developed
for Beechcraft Bonanza
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
operates
on Jet-A fuel
2005:
First certified FADEC engines
2008:
Global recession impacts sales,
particularly engines to OEMs
1900-
1910
1921-
1930
1931-
1940
1941-
1950
1951-
1960
1961-
1970
1911- –
1920
1981- –
1990
1991- –
2000
1971-
M 1980
2001-
2007
2008 –
2009
2010
1906:
Type “O” 45-hp engine is developed
1930:
Four-cylinder engine
is introduced to aircraft
1986:
Powered by a TCM engine,
the Rutan Voyager is the
first piston-powered
aircraft to circumnavigate
the world without refueling
2010:
TCM launches TD-300 Jet-A
engine and unleaded gasoline
development
2000s:
TCM OEM market share nearly triples on
strength of exclusive installations in premium
composite aircraft
1984:
TCM produces TSIO-520-BE for Piper Malibu.
It sets new efficiency targets for piston engines
1950s:
A-65 developed into the 100-hp C-200,
which powered the Cessna 150
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Selected TCM Current OEM Installations
Cirrus SR20
Cirrus SR22
Cessna Corvallis 350
Cessna Corvallis 400
Beechcraft Bonanza
Beechcraft Baron
Diamond DA20
Piper Seneca V
Mooney Ovation
Mooney Acclaim
Liberty XL2
Cessna LSA
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TCM Aftermarket Parts and Services
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Recent International Expansion
U.S. Manufactured Piston Aircraft Export Sales
as a % of Total Production
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
2004 2005 2006 2007 2008 2009
Source: General Aviation Manufacturers Association
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Piston Aircraft Compared to Population
180,000
160,000
Active
Piston
Aircraft
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
USA Canada Australia Brazil
Population: 307M 33M 21M 192M
Pop / Aircraft ~1,900 ~1,700 ~2,400 ~20,000
Source: General Aviation Manufacturers Association, World Bank
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Potential Piston Aircraft Demand
700,000
600,000
Active
Piston
Aircraft
500,000
400,000
300,000
200,000
100,000
0
USA Canada Australia Brazil China
(based on
Brazil)
Source: General Aviation Manufacturers Association, World Bank
TCM CONFIDENTIAL AND PROPRIETARY
China
(based on
US, CA,
AUS)
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AVIC International Aviation Customers
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
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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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Disclaimer
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.
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