EX-99.1 2 ex99-1.htm EXHIBIT 99.1

CPI AEROSTRUCTURES, INC. 8-K

Exhibit 99.1

1Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsExpertise in Aerospace TechnologiesG. Research 25 th Annual Aerospace & Defense ConferenceNew York CitySeptember 5, 2019

2Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsDisclosure StatementsForward - Looking StatementsThis presentation contains forward - looking statements that involve risks and uncertainties . All statements, other than statements of historical fact, included in this presentation, including without limitation, statements regarding projections, future financing needs, and statements regarding future plans and objectives of CPI Aerostructures, Inc . ( the “ Company” or “CPI Aero”), are forward - looking statements . Words such as "believes," "expects," "anticipates," "intends," "plans," "estimates" and similar expressions are intended to identify forward - looking statements . These forward - looking statements are based upon the current expectations of management and certain assumptions that are subject to risks and uncertainties . Accordingly, there can be no assurance that such risks and uncertainties will not affect the accuracy of the forward - looking statements contained herein or that our actual results will not differ materially from the results anticipated in such forward - looking statements . Such factors include, but are not limited to, the following : the cyclicality of the aerospace market, the level of U . S . defense spending, production rates for commercial and military aircraft programs, competitive pricing pressures, start - up costs for new programs, technology and product development risks and uncertainties, product performance, increasing consolidation of customers and suppliers in the aerospace industry, the ability to manage growth and integrate acquired operations and costs resulting from changes to and compliance with applicable regulatory requirements . The information contained in this presentation is qualified in its entirety by cautionary statements and risk factors disclosed in the Company's Securities and Exchange Commission filings, including CPI Aero's Form 10 - K for the year ended December 31 , 2018 , and Form 10 - Q for the three - month periods ended March 31 , 2019 and June 30 , 2019 , available at http : //www . sec . gov .We caution readers not to place undue reliance on any forward - looking statements, which speak only as of the date hereof and for which the Company assumes no obligation to update or revise the forward - looking statements herein .CPI AERO is a registered trademark of CPI Aerostructures, Inc . All other trademarks referenced herein are the property of their respective owners .

3Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsRevenue*$ 447.6 MTotal Backlog**40YearsTTM: $ 94.2 MFacilities250 +Active Suppliers290 +Employees***171,000 ft 2Defense / Commercial (Rev)11.8 MShares Outstanding~$ 96 MMarket Capitalization***68/32Image result for t 38 talon *12 - month period ended 6/30/19** At 6/30/19*** At 8/29/19At a GlanceMROWelded Tubes and Oil TanksEW/ ISR PodsEngine Inlet AssembliesWing StructuresKitting & Supply Chain Management

4Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsInvestment HighlightsUnique Tier 1 Strategy in the Aerospace & Defense Supply Chain1Broad Product and Services Portfolio2Robust Bid Pipeline and Improving Defense Outlook3Large and Diversified Backlog Drives Strong Visibility, with Defense Contracts Comprising 86% 14Improved Productivity Leading to Cash Flow Generation5Supplementing Growth Through Acquisitions6Experienced Management Team and Strong Board of Directors71 Backlog at 6/30/19

5Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsDiverse Product and Services PortfolioAEROSTRUCTURESAEROSYSTEMS. UTAS DB - 110 . NGC ALMDS . NGC AN / ASQ - 236 . Raytheon NGJ Mid - Band . UTC TacSARWingsInlets / NacellesMROSecondary StructuresPodsSpecial Products. Sikorsky UH - 60 Fuel Panels . Lockheed F - 35 Lock Assys. . Lockheed F - 35 Canopy Drive Shafts . Raytheon SEASPARROW Launch Control Electronics. Triumph G650 . Boeing A - 10 . Unspecified Missile. Embraer Phenom 300 . HondaJet Elite . Bell AH - 1Z Viper . Sikorsky UH - 60. Sikorsky UH - 60 Stabilators . Sikorsky MH - 53 Tow Hooks. Sikorsky UH - 60 Gunner Window Assys. . Spirit CH - 53K Step & Rack Assys . . E - 2D Aerial Refueling ProbeManufacturer of aerospace structural assemblies and integrated systems for the defense and commercial markets;Strong defense portfolio with a balance between modernization and readinessKITTING & SCMWingsPrimary StructuresSecondary Structures. NGC E - 2 / C - 2 OWP . U.S. Government F - 16 MRO. T - 38C Pacer Classic III. Sikorsky S - 92 Kits . Embraer E - 175 E2DefenseCommercial

6Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsUnique Business Model focused on Mixed Commodity AssemblyCPI Aero is…Tier 1 to:Prime to:Tier 2 to:Tier 3Tier 2Tier 1OEMComponents or detailed partsManufacture s uba s se m bli e sManufacture aircraft sectionsFinal assembly, finish,and deliveryGoal: Maintain and Expand our Tier 1 StatusNorthropGrummanLogo1 179E3F37CA57C447B88F8137DFA693F7@cpiaero http://www.jetforums.net/attachments/honda_aircraft_logo-jpg.129/ Related image . NOT a parts manufacturer trying to move up the value - added chain . Uses suppliers to manufacture 100% of componentsImage result for lockheed martin logo Image result for textron aviation logo Image result for sikorsky logo Image result for boeing logo Image result for embraer logo Image result for spirit aero logo Image result for gkn aero logo https://leehamnews.com/wp-content/uploads/2019/02/Collins-Aerospace.jpeg

7Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsBroadened Scope of Capabilities – Committed to Operational Excellence• Program Management • Manufacturing Engineering – Reverse Engineering – Tool Design and Fabrication – Bonding of components – Finishing and Polishing of assemblies• Global Supply Chain Management • Assembly and Integration of Complex Structures • Quality Inspection and Testing • Welding, Tube Bending, Electrical Harness FabJ:\Business Development\1Admin\Marketing\Images\Annual Report\2010\Shop Floor 2 select.bmp C:\Users\callnach\Desktop\photo 2.JPG image004 https://libn.com/files/2018/07/cpi-aero-hq.jpg

8Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations $47.99 $30.35 $15.88 Aero structures Aerosystems Kitting Three Business Segments - Revenues 61%39%$ 94.22 million 99.7%0.3%96%4%51 % of LTM Q2 2019 Revenues33 % of LTM Q2 2019 Revenues 16 % of LTM Q2 2019RevenuesAERO STRUCTURES AERO SYSTEMS KITTING & SCM LTM Q2 2019 Revenues Defense Commercial

9Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsGrowing Business MomentumAerostructuresAerosystemsKitting & SCMLockheed MartinF - 16VBell / TextronAH - 1ZViperSikorskyUH - 60MBlack HawkHondaJetEliteSikorskyUH - 60MBlack HawkRaytheon SEASPARROWRaytheon NGJ Mid - BandLockheed Martin F - 35 Lightning IIT - 38 A/B/C Talon Trainer• Provides for the manufacture of Rudder Island and Drag Chute Canister Assy • International demand for the world’s foremost combat - proven 4th generation multi - role fighter aircraft is strong and gaining momentum• Engine cowl and support assemblies • Continues relationship with Bell on the AH - 1Z Viper beginning in 2011• Welded assemblies through contract with GKN Aerospace • Includes welded engine inlet assembly and other components• Received a long - term agreement to manufacture the noise attenuating engine inlet • CPI Aero has manufactured engine inlet assemblies for the original HondaJet aircraft since 2011• Hover Infrared Suppression Systems (HIRSS) • Period of Performance: 2019 – 2022 • Aftermarket component for older model Black Hawks• Turnkey electronics integration solutions for guided missile system • Includes production of wire harnesses and integration into electronics cabinet• Pod structural housing, air management system, and additional systems integration• Canopy actuation drive shaft assemblies • Door lock assemblies through 2022• Supports Pacer Classic 3 and TRIM structural life extension programs • Components and kits to sustain structural integrity of airframe beyond year 2030Honda "HondaJet Elite" Private Jet Details 1,437 Nautical Miles 422 Knots Cruising Speed 43,000-foot Altitude Two-toned Leather Seats Speaker-less Bongiovi Sound System Garmin G3000 Avionics Suite Seven Seater Interior Image result for F-35 Lightning II Image result for Bell AH-1Z Viper Image result for UH-60M Black Hawk helicopter Image result for raytheon next generation jammer pod Related image Image result for sikorsky "uh-60" black hawk

10Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationshttp://www.aviationnews.eu/blog/wp-content/uploads/2009/07/Second-E-2D-Advanced-Hawkeye-Next-Phase-of-Flight-Testing.JPG Driven by Renewed Strength in Defense BudgetPresence on prominent defense programs with strong fundingDefense market focus yielding large, diversified, and growing backlogLockheed Martin F - 35 Lightning II Drive ShaftNGC JapanE - 2D HawkeyeBell / TextronAH - 1Z ViperUnidentified Missile PlatformUnidentified Sikorsky HelicopterNGC E - 2D Advanced Hawkeye – Follow On$15.8M$25.0M+$18.6M$ Undisclosed$1.0M (approx.)$47.5MAnnouncedNovember 2017Contract Period2018 – 2022AnnouncedJan. 2016/Feb. 2018Contract Period2016 – 2019AnnouncedJan. 2017/March 2018Contract Period2017 – 2021AnnouncedOctober 2018Contract Period2019 – 2020AnnouncedOctober 2018Contract Period2019 – 2020AnnouncedOctober 2018Contract Period2018 – 2024Image result for F-35 Lightning II http://www.b-domke.de/AviationImages/Hound/Images/4605.jpg Lockheed Martin F - 35 Lightning II Lock Assys.Raytheon SEASPRARROW Missile SystemLockheed Martin F - 16VSikorsky UH - 60 Black Hawk HIRSS Module AssembliesU.S. Air ForceT - 38 PC3/TRIMRaytheon Next Generation Jammer Mid - Band$10.6M$ 5.0M$20.0+M~$ 14.0M$65.7$170.0M+AnnouncedJuly 2015/Dec. 2018Contract Period2015 – 2024AnnouncedLegacy WMIContract Period2018 - 2019AnnouncedFebruary 2019Contract Period2019 - 2024AnnouncedJune 2019Contract Period2020 - 2022AnnouncedJuly 2019Contract Period2019 – 2030AnnouncedJul. 2016/Aug. 2018/ Sept. 2019Contract Period2016 – 2030https://farm8.staticflickr.com/7305/12288212203_a1efdd35b4_n.jpg Contract amounts are potential values over period of performance

11Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations$385.3$62.3Backlog Supports Focus on Aerospace & Defense Strategy86%14%21%79%Total Backlog$ 447.6 million *Backlog represents remaining potential value of long term agreementsDefense / CommercialFunded / UnfundedDefenseCommercial• Reported backlogas of 06/30/19Added

12Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsLarge and Diversified Backlog Drives Strong Visibility‘08‘09’10’11’12’13‘14‘15‘16‘17‘18‘19‘20‘21‘22‘23‘24‘25Next Generation Jammer Increment 1 PodT - 38C Talon TrainerE - 2D Advanced Hawkeye (Multi - Year 2)Sikorsky/Unnamed Helicopter Platform**New Customer/Missile Wing**E175 - E2HondaJetPhenom 300F - 35 LocksUH - 60 Black HawkMH - 53E Sea DragonF - 35 Drive ShaftS - 92AH - 1Z ViperF - 16Gulfstream G650E - 2D & C - 2A (Multi - Year 1)Japan E - 2DCessna Citation X+CH - 148Image result for northrop grumman logo Image result for northrop grumman logo F - 16V Structural AssembliesUH - 60 HIRSS Module Assem .• Reported backlogas of 06/30/19Potential to collectivelygenerate revenue of $ 447.6*million during the remainingperiods of performanceLong contract periods of performance provide exceptional revenue visibility beyond 2022T - 38 PC3 / TRIMDefenseCommercial

13Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations$18.3$45.5$20.1Growth Drivers% of Backlogat 6/30/19KeyPlatformsEstimated 3 - YearGrowth Outlook22%A - 10, F - 16,UH - 60, HondaJet12% - 18%42%NGJ - MB, F - 35, DB - 110UH - 60, CH - 53K, Sea Sparrow16 % - 20%36%E - 2D, T - 38F - 16, E2 - 17516% - 18%($ in Millions)$83.9AerostructuresAerosystemsKitting/SCM2018 Rev.Business Area

14Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsAligned with Increasing Domestic and Global Defense Budgets• CPI Aero strategic business development priorities aligned with funding for technologies and capabilities proposed in GFY2020 defense spending bill, including: – Electronic warfare: intelligence, reconnaissance and surveillance pods – Advanced missiles – Autonomous systems

15Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations54%39%7%Bid Pipeline (at 30 July 2019)Continued DiversificationAcross Product CategoriesVirtually all proposals are at the Tier 1 (95%) level99%1%Defense - weighted with commercial bids imminentDefenseCommercialAerostructuresAerosystemsKitting

16Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsNear - Term Program Opportunities• Intelligence, Surveillance & Reconnaissance (ISR) Pods • Electronic Warfare (EW) Pods • Electronic Racks & Step Assemblies• A - 10 Wing Replacement Program (WRP) • Various Black Hawk Components / Structural Repairs • Missile Wings • Unmanned Aerial Systems• Wet Outer Wing Panel Kits for Japanese E - 2D Advanced Hawkeye • Complete Multi - year Negotiations for US Navy’s E - 2D• SEASPARROW missile control electronics • Various welded structures on E - 2D Advanced HawkeyeAEROSTRUCTURESAEROSYSTEMSKITTING & SCMWELDING METALLURGYA picture containing indoor, person, man, building Description automatically generated A person standing in a room Description automatically generated A picture containing person, indoor, man, building Description automatically generated

17Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsFuture OpportunitiesUnmanned Aerial SystemsSpaceHypersonicsEW/ISR Pods

18Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsConclusion• Stable, near - term business with meaningful, long - term growth opportunities • Defense market focus yielding large, diversified and growing backlog • Strong defense portfolio with good balance between modernization and readiness • Growing bid pipeline: ability to bid on larger and more complex programs due to investments in advanced technologies • 2020 and 2019 Defense budgets fund key CPI Aero programs • Bolt - on acquisitions offer path to additional growth opportunities

19Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulationsImage CPI AerostructuresVincent Palazzolo, Chief Financial Officer(631) 586 - 5200www.cpiaero.comInvestor Relations CounselSanjay M. Hurry, LHA Investor Relations (212) 838 - 3777 cpiaero@lhai.com