EMTEQ Business Strategy Introductions Jerry Jendusa 1989

EMTEQ Business Strategy

Introductions Jerry Jendusa 1989 BBA, Finance Major University of Wisconsin Milwaukee One of the Founders of EMTEQ after writing of a Business Plan in 1995 and receiving both Equity and Debt financing in April of 1996. EMTEQ is an aviation relation service and product company for cockpit, cabin and exteriors with applications in Corporate, Military, HOS/VVIP and Airline worldwide markets Wife Peggy and 3 boys Nathan, Joshua & Joseph

Overview 4 Founded: 1996 4 More than 450 employees globally 4 Markets Served: Air Transport, Military, Corporate, Head of State / VIP, Helicopter 4 ISO 9001: 2000 & EN / JISQ / AS 9100: 2004 Certification New Berlin, WI 4 FAA PMA Approved Facility 4 FAA/EASA Part 145 Repair Station Winnipeg KEY ACQUISITIONS 4 2002: Avitas Engineering – Miami, FL 4 2007: Flight Components – Switzerland 4 2008: ACS-NAI – Winnipeg, Canada Bachenbulach Miramar

Global Presence EMTEQ® LOCATIONS 4 EMTEQ®, Inc. New Berlin, WI USA 4 EMTEQ Montana Great Falls, MT USA 4 EMTEQ Engineering, Inc. Miramar, FL USA 4 EMTEQ do Brasil Taubaté, Brazil 4 EMTEQ Canada Winnipeg, Canada Montreal, Canada 4 EMTEQ Europe Bachenbulach, Switzerland 4 Sales Offices Worldwide

Products and Services 4 Aircraft Systems & Integration – Wire Harnesses – Integrated Installation Kits – LRU Installation Kits – RF Coax & Specialty Cable Assemblies – Specialty Cables: Ethernet, LAN, Databus 4 LED Interior Lighting & Cabin Comfort – Interior LED Lighting Systems – AC Outlets – Cabin Comfort Products 4 Exterior LED Lighting Systems 4 Design, Engineering & Consulting – Product Development – Equipment Mounting Trays & Rack Connectors – Engineering & Consulting – Panel Assemblies – FAA Certification & Repair Center www. emteq. com – Technical Support

Business Differentiators 4 Customer Demand to Customer Delight – Mind set to exceed customer expectations versus meet expectations 4 Flat Organization – Elimination of layers of management – Speed and efficiency – Push decision making down the ladder versus up the corporate ladder

The Q FACTOR Is in each of us. . 4 Maintain our position as a customer driven organization which is – Agile, Flexible, Resourceful, Responsive, Accountable, and Entrepreneurial While always having the willingness to GROW and CONTINUOUSLY IMPROVE

Business Differentiators 4 Employees – Set behavior guidelines – Define team – Show area of influence – Explain employee impact – Communicate verbally – Communicate visually – Communicate redundantly – Set goals and metrics –Constant reminder of who signs the checks At 211 degrees. . . water is hot. At 212 degrees. . . it boils. And with boiling water, comes steam. And steam can power a locomotive. And, it's that one extra degree that. . . Makes all the difference. Simple Truths

Strategic Planning 4 Leaders of organization 4 Strategically look 3 -5 years out – Pull leaders out of short-term, day-to-day – Ownership on where the organization will grow and how to get there 4 Agenda – SWOT for each site/unit • Review and determination of Must Do – Can’t Miss • Critical topics for discussion – Breakthrough Strategies • Revenue range (high and low) based on strategies 3 -5 years out • Revenue range (high and low) for up-coming year – Open discussion on critical topics

1 Page Business Plans 4 Enterprise 4 Location/Site/Unit 4 Team/Program/Projec t 4 Individual Targets 4 SMART 4 Based on improvement 5 Categories all plans are based on 4 Growth 4 Customer Delight 4 Innovation 4 Productivity 4 Great Place To Work

1 Page Business Plan Process 4 Leaders determine team members (next level of leaders) 4 Input from strategic planning shared with teams 4 Site/Unit plans created – Drive toward enterprise level goals and targets – Customized Vision and Mission • Team determines how to reach enterprise goals – Defines / adds clarity to what employees should spend time working on – Structured to be flexible

1 Page Business Plan Process 4 Targets set based on continuous improvement 4 Monthly Action Plan and Meetings – Team gathers on monthly basis to review progress – Progress based on red, yellow, green – Only “red” actions reviewed 4 Responsibilities or primary contact assigned – Individual Action Plans created and reviewed • Drive toward team level goals and targets • Defines how each employee can impact the organization

Talent Evaluations 4 Hi. Po Chart – High Potential Review of employees by team and overall company • Reviewed on a quarterly basis within team and annually overall 4 Superstar: franchise player for that position 4 High Performer: Consistently high performance but no more upside potential 4 Achiever: Good performance with a lot of upside potential (potential superstar) 4 Average Performer: Acceptable level of performance but little upside potential 4 Coach Up or Out: currently not achieving required level of performance 4 To Early to Tell: individual has not been in position long enough

EMTEQ University - QU 4 Leadership Development – 9 month program – Leadership versus Management – Coaching Skills – Employee Empowerment – 5 th class just graduated – Will enroll employees from other sites to spread the small company culture

5 Categories for EMTEQ’s Business 4 Growth – Lagging indicator 4 Customer Delight – Building partnerships – Not everything to all, very important to some – 80/20 rule 4 Innovation – Continuous change, new products to offer solid customer base – Technology advancements, provide what customers need 4 Productivity – Continuous improvement, work smarter not harder 4 Great Place to Work – Happy employees create happy customers

Growth 4 Finding the customers that make up greatest portion of our business 4 Assure: – That we are face-to-face with them – That we listen to what they need – Work toward integrating further up their value stream 4 New markets, regions, products – Breakthrough strategies

Customer Delight 4 Gain trust 4 Develop partnerships not customer base 4 Add value – always 4 Exceed customer expectations 4 Customer signs paychecks, not “management” 4 Expand product and service offerings geared toward customer needs

Innovation 4 Stay at the front of technology 4 Avoid products becoming commodities 4 Exceed customer expectations 4 Exceed regulatory expectations 4 Accelerate new products to market

Productivity 4 Streamline processes – Work smarter not harder 4 Review entire value stream – Internally – With Customers – With Suppliers 4 Involve other teams earlier in process 4 Define circle of influence, empower team to implement change 4 On-going cost reduction efforts – Kan. Ban levels – Inventory turns – Staffing

Great Place To Work 4 Pro-Active and standard communication – Informed employees make better business decisions – No surprises – Consistent message throughout organization 4 Continual Staff Development – QU – Cross training – Shared resources 4 Community Outreach – Part of something bigger than the organization – Giving back to community – Shared fate in our future

1 Page Plan Execution 4 Annual Roll Out Meeting – All employees, all sites – Enterprise level plan distributed and reviewed 4 Visual 4 Monthly – High level review with team 4 Daily or regular stand-up meetings – Review of task level action progress – Determination where help is needed

Communication, Communication 4 Get rid of walls (imaginary and real) – Build functional, self directed teams – Create dynamic interaction 4 Daily stand up meetings for all personnel – Drive toward a common goal or shared fate – Create open communication environment – Use of visual and oral communication • Speak at a team visualization board 4 Elimination of departments – Eliminate us versus them thinking

Visual Plan Execution

What makes organizations special? 4 True employee empowerment – Empowered and able to make decisions that are good for the business 4 Communication redundancy and consistency – Tell them what your going to tell them – Tell them what you told them 4 Employee involvement – Create ownership at all levels – Build stronger, self directed teams 4 Sharing company “secrets”

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