PRI Programs & Operations

1. Attachment 3 PRI Programs & Operations Joseph G Pinto Executive Vice President & Chief Operating Officer

2. Programs & Operations • Programs • History & global context of each program • Industry Involvement • Activity & Value • Further details of each program (where applicable) • Structure • Membership • Process • KPI’s • New Industry Programs

3. Programs • Product Qualification • Professional Development • Management Systems • Accreditation • (Qualification) 2013 Projected Revenue: $26,835,000 (84% PRI revenue) 2013 Projected Revenue: $3,501,000 (11% PRI revenue) 2013 Projected Revenue: $1,675,000 (5% PRI revenue) Industry Managed Complementary 3

4. Programs - NadcapNadcap - History & Global Context 4

5. Nadcap Customers Subscribers: Manufacturers and Agencies with design authority, requiring controls over supplier quality (OEMs, Government Agencies, etc.) Suppliers: Companies providing special processes and products to Subscribers, who are required to achieve accreditation as part of the supplier approval process

6. Nadcap Organization Structure Policy Board of Directors AdministrativeStaff Nadcap Management Council (NMC) Tactical Task Groups Supplier Support Committee (SSC) Technical

7. NadcapPrime Subscribers

8. Nadcap Member Responsibilities Subscriber members are required to: • Attend Nadcap meetings. • Prepare checklists for auditing and continuing surveillance. • Review resumes and interview auditors. • Review audit reports.

9. Existing Nadcap Processes and Products Special Processes Systems & Products Non-Destructive Testing Coatings Castings & Forgings Aerospace Quality Systems Electronics Composites Fluid Distribution Systems Welding Non-Conventional Machining Future Processes Elastomer Seals Sealants Chemical Processing Conventional Machining as a Special Process Raw Materials Measurement & Inspection Materials Testing Laboratories Non Metallic Materials Testing Non Metallic Materials Manufacturing Heat Treating Surface Enhancement

10. Number of Audits Over Time

11. Number of Audits by Type The Most Often Audited Processes

12. Nadcap/NUCAP Audits (% by Region)

13. How the Accreditation Process Works Initial accreditation lasts 12 months; future accreditations may last longer depending on audit performance

14. Nadcap Process Flow • OEMs reach consensus on core audit criteria • OEMs mandate Nadcap to supply chain as part of the supplier approval process • Suppliers schedule and pay for the audit • PRI contracts OEM approved Auditorswho conduct on-site process audits to industry managed checklist • Audit data is entered into eAuditNet (PRI’s in-house web based audit management system) • PRI Staff Engineers review the audit report packages and work with Suppliers to close non-conformances • Task Groups review audit packages, identify issues and vote to grant accreditation or request additional actions • OEMs work with PRI to measure program effectiveness and continually assess and improve Nadcap for all participants

15. Independent Contractor Auditors (FTE) per Region Over Time • 191auditors, equivalent to 96 full time personnel • Auditors average 30 years experience in their field – many are retired Prime or Supplier staff • Auditors are independent contractors, recruited by PRI per program need • Industry active in the interview and approval of candidates • Training via audit observations – model may change with global expansion e.g. Russia

16. Shared Program Management AUDIT CHECKLIST PROCESS EVALUATION/ IMPROVEMENT AUDITOR QUALIFICATION & SELECTION INDUSTRY EXPERTS MANAGE ALL KEY STEPS CORRECTIVE ACTIONS AS REQUIRED AUDIT CONDUCTED AUDIT RESULTS

17. NMC Committees All sub-teams are led and made up of customer representatives to oversee & improve Nadcap for all stakeholders.

18. Program Performance Monitored via KPI’s • Number of Nadcap audits (month & YTD) • Nadcap audits (% by region) • Nadcap audits in new commodities • Auditor capability in local language • Number of customer complaints & resolutions per sector • Board of Directors Metrics • Cycle time • On-time accreditations • Percentage merit status This ensures timely responses in case of issues and protects PRI by facilitating anticipation of changes to plan.

19. Programs - NUCAPNUCAP – History and Global Context

20. NUCAP Participation Rules To participate in the NUCAP program, the NUCAP Applicant must be a Nadcap Subscriber: • Nadcap Subscriber-members are those aerospace or defensecontractor Subscriber companies who are Nadcap Subscribers. • Nadcap Subscribers normally are Production or Design Approval holders (such as TSO, TC or PC holders) from regulatory agency approval. • Nadcap  Subscribers work to their own special process specifications and have internal engineering organizations to provide technical directions and support. In addition, a Functional Quality System equivalent AS/EN/JISQ/9100 or 9110, with an effective corrective action system and closure and corrective action through Subscriber oversight system (internal).

21. NUCAP Management Council Members • 309th Maintenance Wing – Hill AFB • Airbus • AleniaAermacchi • BAE Systems • Boeing • Bombardier • EADS CASA • Eurocopter • GE Aviation • Goodrich • HerouxDevtek • Honeywell Aerospace • Rolls-Royce • SAFRAN • Spirit AeroSystems • Triumph Group

22. Existing NUCAP Processes and Products Special Processes Systems & Products Non-Destructive Testing Coatings Castings & Forgings Aerospace Quality Systems Electronics Composites Fluid Distribution Systems Welding Non-Conventional Machining Future Processes Elastomer Seals Sealants Chemical Processing Conventional Machining as a Special Process Raw Materials Measurement & Inspection Materials Testing Laboratories Non Metallic Materials Testing Non Metallic Materials Manufacturing Heat Treating Surface Enhancement Same as Nadcap

23. How the Approval Process Works Subscriber requests NUCAP audit Initial approval lasts 12 months; future approvals may last longer depending on audit performance Re-approval process Subscriber review Certificate issued Limited Task Group Review

24. Number of NUCAP Audits Over Time As of August 2013

25. Programs – Qualified Product ListingQualified Products Listing (QPL) - History & Global Context

26. QPL Organization Structure Standards Developing Organization (SDO) Policy Board of Directors Qualified Product Management Council (QPMC) Tactical Standard Technical Committees Qualified Product Groups Technical Knowledgeable Parties With Interest Maintain Technical Standards, Recommended Practices, etc.

27. QPMC Company Members • The Boeing Company • DefenseStandardization Program Office • Honeywell • Lockheed Martin Aeronautics Co. • Middle River Aircraft Systems • Naval Air Warfare Center • Pratt & Whitney • US Air Force Work is underway to recruit a European member

28. How the Approval Process Works PRI Communicates Request for Additional Information To Supplier Yes Additional Information Requested Supplier Submits Application And Applicable Data to PRI PRI forwards Submission to QPG QPG Reviews Data No Approval Granted

29. QPL Product/Part Listings

30. Programs - eQuaLifiedeQuaLified – History & Context

31. eQuaLified Organization Structure

32. eQuaLified Management Council Members • Airbus • Alcoa • BAE Systems • Boeing • Bombardier • Cessna • FM Callahan • Fountain Plating • GE Aviation • Goodrich UTAS • Hill AFB • Honeywell Aerospace • MTU Aero Engines • Pratt & Whitney • Raytheon • Rolls-Royce plc • SAFRAN • Sonaca • Spirit Aerospace • Triumph Aerospace • TWI Inc • XRI Testing Prime Supplier Other

33. How the Qualification Process Works eQuaLified is not yet offering qualifications as the Bodies of Knowledge & exams are still being developed by industry.

34. eQuaLified Qualification Levels

35. eQuaLified Growth

36. Program Performance Monitored via KPI’s Monthly check of performance vs. goals: • Professional Development revenue & revenue cost balance (month & YTD) This ensures timely responses in case of issues and protects PRI by facilitating anticipation of changes to plan. The program is currently operating via the gate keeper approach in order to build the industry managed program and develop a uniform approach to special process personnel competency in the aerospace industry.

37. Programs - eQuaLearneQuaLearn – History & Global Context

38. Existing eQuaLearn Courses Special Process General Quality Qualification Virtual • AS/EN/JISQ 9100 • Contract Review for Aerospace Suppliers • Internal Auditing • Introduction to Aerospace Quality • Problem Solving Tools • Process FMEA • Root Cause Corrective Action • Statistical Process Control • AS/EN/JISQ 9100 Changes Webinar • Nadcap Customer Support Initiative (NCSI) • AC7114 Changes in Rev F • AMS2750 Changes to Revision E • Heat Treat - Hipping • Introduction to Pyrometry • Pyrometry Update-AMS2750E • Aviation Maintenance Fundamentals • Nadcap Audit Preparation (NAP) • Chemical Processing • NAP – Heat Treating • NAP – NDT • NAP – Welding • NAP-Materials Testing • NAP-Coating • 3 Operator, Planner, Owner Levels • Chemical Processing • Heat Treat • Non Destructive Testing • Welding • Etch Processing & Inspection at Operator/Owner Levels 38

39. Number of Learners

40. eQuaLearn Growth

41. Program Performance Monitored via KPI’s Monthly check of performance vs. goals: • Professional Development revenue & revenue cost balance (month & YTD) • Memberships • Customer Satisfaction This ensures timely responses in case of issues and protects PRI by facilitating anticipation of changes to plan. Other KPI’s are being established to optimise up/cross-selling opportunities, conversions and global growth.

42. Programs – PRI RegistrarPRI Registrar – History & Context

43. PRI Registrar Sales History

44. Existing PRI Registrar Approvals Quality Management System certifications for: • Quality (ISO 9001) • Aerospace (AS9100, AS9120, AS9110, AS9003) • Environmental (ISO 14001) • Health & Safety (OHSAS 18001)

45. Program Performance Monitored via KPI’s Monthly check of performance vs. goals: • Registrar revenue & revenue cost balance (month & YTD) • Lead generation & analysis • Marketing plan utilization • Churn percentage • Key strategic initiatives This ensures timely responses in case of issues and protects PRI by facilitating anticipation of changes to plan.

46. New Industry Programs • Pioneered by Baxter Healthcare, DePuy, GE Healthcare, Philips Healthcare & Stryker Corp. • Modelled on Nadcap • First Letter of Intent signed 2013 by Philips Healthcare • Planning approach to Regulatory Authority FDA in 2013 for recognition Safety & Quality Shared Values • Pioneered by GE Transportation • Bombardier and Eaton also interested • Modelled on Nadcap • Program launched in 2012 • 43 audits conducted in 2012 in HT, NDT, WLD and SE. • 70 audits planned for 2013 • Pioneered by World Nuclear Association & Westinghouse • Modelled on Nadcap • Exploratory discussions ongoing – very positive

47. Summary of Programs & Operations • PRI operates programs focused on the quality of processes, products and personnel as well as management systems via Nadcap, NUCAP, QPL and Registrar audits, eQuaLearn training classes and eQuaLified examinations • Most of PRI’s programs are industry-managed (exceptions are Registrar & eQuaLearn) and were established at the request of industry and are centered around improving processes, products and personnel in industries where safety & quality are shared values. • PRI’s programs add value by facilitating the industry to work together, thereby harmonising global requirements, streamlining workload and reducing costs and by supporting the industry oversight of and the continual improvement of the global aerospace supply chain by promoting a quality and customer-focused philosophy.

48. 2013 Operating Revenue (Plan)