SES is a wholly-owned subsidiary of CFM International. CFM is a 50/50 joint company between Snecma (Safran) and GE. The information in this document is SES Proprietary Information and is disclosed in confidence. It is the property of SES and its parent companies, and shall not be used, disclosed to others or reproduced without the express written consent of SES. If consent is given for reproduction in whole or in part, this notice shall appear in any such reproduction in whole or in part. The information contained in this document may also be controlled by the U.S. and French export control laws. Unauthorized export or re-export is prohibited.

SES – Power to Fly Now ICBE Innovate, Grow, Succeed

21 April 2016

2 SES Proprietary Information subject to restrictions on the cover

Index

1. Who we are

2. Our Customers

3. Our Products & Services

4. Market Landscape

5. Lessons for Success

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Shannon Engine Support (SES)

Wholly-owned subsidiary of CFM Inc.

Specialist CFM engine lessor – 100% CFM fleet

Support OEM – product support pool, services campaigns

Commercial leasing business – ROI from portfolio

Specialist leasing team – commercial, technical, finance, risk, legal

38 Staff

50% 50%

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The SES Story

SES established

(CFM/GPA JV)

1995

1988

1997

2006

2013

SES 200th engine delivered

into pool

SES 25th years

in business 2012 First LEAP Order 2008

50th CFM56

Engine in China

1993 SES established

(Snecma/GECAS JV)

2016 First LEAP Delivers

First CFM56–5B engine

delivered into pool

First CFM56–7B engine

delivered into pool

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BRUSSELS

PARIS

LONDON DUSSELDORF

FRANKFURT

BEIJING

HONG KONG GUANGZHOU

SHANGHAI

• 9 Pool locations

• 5 Offices

Shannon (Head Office), Budapest, Singapore, Beijing, Brussels

• 5 Subsidiaries

US*, Belgium*, Hungary**, Singapore**, China**,

Florida

Pool Locations, Offices, Subsidiaries

* Leasing, ** Marketing & Services to Ireland

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Understand the Customer - Why Lease Engines?

Cost vs Risk . . . a Constant Balancing Act

•Acquisition costs

•Underused assets

•Overhead costs

•AOG

•Unscheduled removals

Spare Engine

Investment

Decision

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What Airlines Want?

Concentrate on core business

• Outsource non core activities

Subcontract to a reliable service provider

Spare Engines only when needed with guarantee of:

• engine quality, suitability, serviceability, documentation, no missing parts, configuration….

Cost efficient solutions, maximum flexibility

• term, redelivery, etc

Expert (technical) Engine Lessors

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Why Lease Engines?

Provides operational solutions to Airlines of all sizes

• Asset management type service

• Fleet planning and exit strategies

Provides financial services/solutions to Airlines of all sizes

• Cash preservation/Capital efficiency

• Preserve borrowing capacity

• Residual Value/Risk Management

Increasing reliability of new CFM engine types

• Why invest in an under-used asset?

Shorter Product Life Cycles

• Introduction of new engine technology

• Residual Value assessment is a key risk

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Engine Lease

Operating lease:

3-10 years

Long term Ad-hoc lease: 1-3 years

Short term Ad-hoc lease: < 1 year

Support Programmes

Guaranteed Access within 24 hours (GAF)

Customized Solutions

Tailored to specific airline needs

(term and volume)

Optimised combination of SES products

•Dedicated Engines on site

•Pool Days

•GAF

Match our Product & Service to needs

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The Competitive Landscape

Traditional Lessors

Mature Asset Specialists

MROs (Maintenance Repair Organisations)

Increasingly competitive, price-driven market as technology matures and

more investors enter the space. The CFM market is the largest and most open

market for leasing, trading and MRO activity.

Acquire assets and compete

at outset of a new engine

type in service

Acquire assets later in the

product cycle e.g. through

aircraft tear downs

Acquire assets to support

shop visit activity but may

also try to generate revenue

from leasing activity

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Lessons for Success - Differentiating ourselves

Product specialisation

• One Engine Type so customers benefit from in depth CFM56 expertise/knowledge

• Engine Pooling/Guaranteed Availability of Spares

• Short-Term Leases

Service delivery:

• Flexibility – speed of contract turnaround; duration of lease; extension periods; ease of

extension; defined redelivery requirements

• Efficient delivery to customer, dedicated customer support, on-going communication

throughout lease and immediately prior to redelivery

• Transparency – no transaction fee; no minimum usage fee; flexible lease terms on short term

leases

• SES works closely with customers to ensure we have sufficient numbers of engines in each

pool location in the correct configuration

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Lessons for Success

Organisational structure and Leadership intent

Shareholder buy in – especially when the going gets tough

Experienced team – long tenure, expertise, invest in training

Fast Decision making process

Customer Focus – outward looking, offerings evolve as the customer defines

what they need

Long Term strategic planning – have roadmap and make adjustments as

circumstances change

Constantly evaluate the competitive landscape

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SES – Corporate & Organisation Chart

Board

GE, Snecma, SES

Sales & Marketing

Technical Finance Risk Contracts/legal HR Commercial Operations

Advisory Committee

Managing Director

1. Sales Lead/ Initial Client

Meeting/ Contact

2. Deal Team Review =>

Offer

3. Client Negotiation/ Acceptance

4. Transaction Approval by

Executive Team

5. Binding Offer/

Contracts / Deal

Completion

6. Transaction Database Update

Corporate • Clearly defined

• Regular Board Meetings

• Monthly Advisory

Committee

Decision Making

Process; • Matrix organisation

• Flat & fast deal team input

• Clear responsibilities

• Creative, accountable,

responsible

Executive Decision Making Process

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THANK YOU

Q & A