Ann: Quickstep Investor Presentation - August 2017, page-10

Could someone help with this:

- our target market is Aerospace/ Defence (pg 5 of prez) where value for Kg is $300+ and 3 x the other markets, therefore great strategy
- A/D in 2015 is a $17.9Bn market and doubling by 2022 (if the $17.9bn equalled 35.2t and will grow to 65.9t) therefore expect 2x tonnes = 2 x market revenue size.
- the actual market segment that we play in - military and commercial aircraft composites (pg 6) grows from $4.37Bn in 2016 to $7.08Bn in 2022 and $9.64Bn in 2026.
- however, QHL revenue for JSF F35 is only expected to be less than $1Bn over the life of the program/ contract (pg 13)
- and the C-130J is max $100M over program life (pg 14)
- so where is the value and revenue coming from ??? I just don't get it (and i have a large s/holding based on market potential, but the rev over contract/ program life is a pittance, and that's what we should be looking at and not the market potential (as obviously others are entrenched here - would that be a logical summation ?
- i do understand that we're also targeting other segments (pg 21) - which could give us a further $120M per annum - but is that it ?? am i missing something here - is the JSF and C-130 an annual recurring rev of $1Bn or is it the total over contract/ program life ? (which would make more sense in a multi $Bn annual market

thanks for any help and clarification - hopefully my tired brain is reading things wrong and look for some constructive feedback, as i think that composites will change the game in many markets, Electric vehicles and Aircraft being two of them.

thanks in advance