Recommendations

Go to Asia strategy
The top 5 emerging countries contributed $171.6 billion to the global A&D industry in 2013, with a CAGR of 9% 2007-2011.
This is expected to reach $236.7 billion in 2018, with a CAGR of 6.6% over the 2013-18 period.


Emerging
Asian
Nations
Cheap
Skilled Work
force
Low
Operating
Costs
Advanced IT Tax Benefits
High
Security
Threats
Current State Defense Spending
Forecast Defense Spending 2020
Reasons To Venture
Bolt On Acquisitions Enhance portfolio
.
Presence by technology- 1
The number of technology
segments Milco has presence now
is Simulation.
Presence by segments - 2
Only 2 function segments Milco has
presence now
To acquire additional capabilities in hitherto untapped areas - currently presence limited to very few segments or
technologies. So expanding by niche bolt on acquisitions is the way forward.

2
Expansion in Military facility construction
The growth rate of this segment is estimated to be around 20 % and the contribution margin is expected to increase
by a whooping 225%.
Our current market share in this segment is 0.1%
The remaining 99% of the market share remains untapped by us.
We have to focus our efforts in becoming a major player in this segment.
The capital expenditure is estimated at 100 million.
This can be channeled with a more emphasis on
spending for the Construction segment.
Leverage on brand value to position MILCO in this segment.


High memory RFID tags implementation in MRO activities.
Implementation of high memory RFID tags to track aircraft components and other assets can be used. These tags
will store all the required information thus redusing IT infrastructure requirements.

Majority of the time is wasted in gathering information and tracking parts. This can be tackled by using RFID tags,
since these will transfer real-time data. Thus helping us improve operational efficiency.
Contribution margin projected to
grow 225%
Our Current market share 0.1% &
planned cap Ex at 100 million.
99% market share -> growth
potential. Leverage on brand value
Big Data analytics and Business intelligence.
Business intelligence you need to effectively identify and manage your MRO business costs and risks.

MRO has to leverage Big Data technology to improve operational efficiency and minimize downtime.Since pattern
analysis can be done on real time instantaneous data, this will give us a wealth of information that can be used
profitably.

APPENDIX
http://www.deloitte.com/view/en_US/us/Industries/Aerospace-Defense-
Manufacturing/f203f16d5cbd2410VgnVCM3000003456f70aRCRD.htm?id=us:el:fu:2014adout:awa:aers:010214

http://www.datamonitor.com/store/Product/aerospace_defense_top_5_emerging_markets_industry_guide?prod
uctid=ML00016-067

http://deloitte.wsj.com/cfo/2012/12/10/for-aerospace-and-defense-cfos-seeking-growth-look-to-emerging-
markets/

http://www.atkearney.com/aerospace-defense/ideas-insights/article/-
/asset_publisher/LCcgOeS4t85g/content/new-face-of-the-a-d-industry-victors-victims-and-survivors/10192

http://www.afm.aero/magazine/maintenance-operations/item/501-mro-it-intelligent-maintenance

IHS janes Analysis : oppurtunities in Defence Simulation & Training Market

http://deloitte.wsj.com/cio/2013/02/14/using-analytics-to-manage-ad-product-development-costs/

http://www2.deloitte.com/global/en/pages/manufacturing/articles/2014-global-a-d-sector-financial-
performance-study.html



Thank You