Deutsche Bank Markets Research Elating Buy North America United States Indust( ials Aerospace & Defense Electronics General Dynamics Alert GD N N Exalango Mcke, NYS GD Discretion only Gulfstream can pull off General Dynamics announced this morning an expansion of Qatar Executive's order for G500, G600, and G650 Gulfstream business jets, from "up to 20 aircraft" to "up to 30 aircraft." In perspective, Gulfstream builds 110-120 aircraft/year. It is unclear how many of the 30 aircraft are firm orders, but from the release we posit that some solid order activity should drop into backlog in 2Q with the final deal just signed. As important and without fanfare—indicative of the discretion in the Gulfstream brand—was the announcement that the G500 had its first flight yesterday. We continue to see the program nicely ahead of schedule (-6mo) vs. the advertised certification set for 2017 and entry into service in 2018. Date 19 May 2015 Breaking News Price at 19 May 2015 ILISO) 140 28 Price Target 166 00 52-week range 145.36 - 113.08 My14,4 `And xi, MA Research Analyst Louis Relletto. CFA Associate Analyst 1+11 iMMINSINIEN !Stock & option Lrwid,ty data Market Cap 1USD) 45,253.9 Shares outstanding (ml 322.6 Free Iloat Obi 100 Volume (19 May 2015) 277,912 Option volume (und. dus.. IM avg.) 676,521 Sane Lam-h• Brk "Lev eisaa EYE 12/31 2014A 2015E 2016E 10 EPS 1.71 2.14A 20 EPS 1.88 1.99 30 EPS 2.05 2.12 40 EPS 2.20 2.29 re EPS (US011 7.83 8.54 8.89 P/E Ix) 15.2 16.4 15.8 Source.Dane* ant Deutsche Bank Securities Inc. The views expressed above accurately reflect the personal views of the authors about the subject companies and its(their) securities. The authors have not and will not receive any compensation for providing a specific recommendation or view. Deutsche Bank does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Prices are current as of the end of the previous trading session unless otherwise indicated and are sourced from local exchanges via Reuters, Bloomberg and other vendors. FOR OTHER IMPORTANT DISCLOSURES PLEASE VISIT htto://gm.db.com/ger/disclosure/Disclosure.ectsr?ricCode=GD.N MCI (PI 124/04/2015. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0117150 SDNY_GM_00263334 EFTA01457556