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    moog 2013 | Annual Report


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    TABLE OF CONTENTS Financial Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 CEO’s Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Chairman’s Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Officers and Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Aircraft Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Space and Defense Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Industrial Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Medical Devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Financial Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Investor Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Form 10-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 FINANCIAL PERFORMANCE DILUTED EARNINGS PER SHARE RECENT FINANCIAL PERFORMANCE (In dollars) (Dollars and shares in millions, except per share data) $ 3.50 $ 3.33 $ 3.25 2013 2012 $ 2.95 $ 3.00 $ 2.75 $ 2.63 $ 2.75 NET SALES $ 2,610 $ 2,470 $ 2.50 $ 2.34 $ 2.36 $ 2.25 $ 1.97 $ 1.98 $ 2.00 NET EARNINGS $ 120 $ 152 $ 1.64 $ 1.75 $ 1.45 $ 1.50 DILUTED EARNINGS $ 1.22 $ 2.63 $ 3.33 $ 1.25 PER SHARE $ 1.00 $ 0.75 EQUITY MARKET $ 2,644 $ 1,717 CAPITALIZATION* $ 0.50 $ 0.25 $ 0.00 AVERAGE SHARES 45.8 45.7 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 OUTSTANDING FISCAL YEAR 10 Year Compound Annual Growth Rate = 8% * Measured as of fiscal year end 1


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    CEO’S LETTER To Our Shareholders, Employees and Friends, I’d like to start by giving credit to the 11,000+ Moog employees worldwide for their hard work and ingenuity in getting us through 2013. This report is a testimony to their dedication in serving our customers in the most demanding applications around the globe. I hope that you find it informative. 2013 was a challenging year for our Company. Sales were up 6%, but earnings per share were down 21%. It was a year of organic sales growth in our Aircraft segment but organic sales declines in our Industrial Systems and Space and Defense segments. It was a year of restructuring, as we resized our operations and exited underperforming product lines. It was a year of unusual earnings adjustments, as we took a goodwill impairment charge in our Medical Devices segment. It was also the first year since 1987 that we sold a business – the Ethox Buffalo operations of our Medical Devices John Scannell joined Moog in 1990 as an Engineering Manager of Moog’s business. When we adjust our 2013 results for restructuring, asset impairments and company in Cork, Ireland. In 1994, the loss on the Ethox sale, our operations delivered $3.50/share and free cash flow of John moved to Germany to be the $158 million in ’13. This compares with $3.33/share and free cash flow of $107 Operations Manager of Moog GmbH. million in ’12. So, in ’13, the adjusted earnings from operations were up 5% and free In 1997, John took a leave to pursue an MBA at Harvard. cash flow was up 48% – a respectable performance despite the challenges in both He returned to Moog in 1999 as our Industrial Systems and Space and Defense segments. General Manager of Moog Ireland. Our Aircraft segment had a very strong ’13, with sales up 10% to over $1 billion. In 2003, John moved to East Aurora to join the Aircraft Group in manufacturing Despite the advent of sequestration, our military aircraft business increased slightly, planning. He then became Program driven primarily by a strong aftermarket. The commercial side of the house had a very Manager for the Boeing 787. He strong year, with sales up 20%. The growth was a combination of increased sales on became Vice President of Contracts in 2005 and Chief Financial Officer in legacy platforms at Boeing and Airbus as well as the ramp up on the Boeing 787. 2007. In December 2010, the Board In our Space and Defense segment, ’13 sales also increased 10% to almost elected John President and Chief Operating Officer and in December, $400 million. Our Space and Defense segment has three major markets – 2011, Chief Executive Officer. space, defense and security. Recent acquisitions in the space market provided all of In addition to his MBA, John holds B.S. the sales growth. Organic sales in space were down slightly in spite of the fact that and M.S. degrees in electrical commercial satellite orders over the last three years were 36% lower than the prior engineering from the University College three year period. Our defense sales were also down slightly, reflecting the ebb and at Cork, Ireland. flow of major programs. Sales in our Industrial Systems segment were 7% lower than last year. We divide our Industrial segment into three major markets – industrial automation, energy and test and simulation. Industrial automation was slightly lower in ’13, primarily due to weaker demand in Europe as the continent suffered from the Euro currency crisis. Energy was lower on weaker sales in the wind market, particularly in China. Finally, test and simulation was a bright spot, with sales up 6% on strong demand for flight training simulators. Sales in our Components segment increased 11% to over $400 million in ’13. Our Components segment sells products into all the major markets we serve. Sales into the A&D markets were flat year over year. Our industrial revenues were up 10% due to our recent acquisitions. Sales in our Medical Devices segment were up 5% over 2012. We had higher sales in each of our major product categories–pumps, sets and OEM products. In 2013, we had no regulatory setbacks and the management team focused on growing sales and increasing profitability. 2


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    There are several other items worth mentioning in our wrap up of 2013. First, we had some nice program wins in the year. We won the primary flight control package on the next generation E-Jets at Embraer. We believe this win, a first for us at Embraer, demonstrates our leading position in the flight controls business worldwide. We also won the HelpMeSee program, a three-year project developing a training simulator for cataract surgery. HelpMeSee is an organization dedicated to curing cataract blindness worldwide by using advanced medical simulation systems from Moog to train thousands of cataract specialists. Second, we incurred significant restructuring in 2013. Our industrial, space and defense markets turned out softer than we had anticipated. We reacted quickly to this slowdown, restructuring the businesses to align the cost structure with the new sales reality. In addition to slimming down our operations, we took a hard look at the product portfolio and decided to exit some underperforming product lines. Third, we announced a strategic review of our Medical Devices segment. After seven years in this business, we decided to take a fundamental relook at whether or not this business is a long-term strategic fit for us. We are still in the midst of that process, but already we have divested one of our facilities and taken a goodwill impairment charge in 2013. This process should conclude in 2014. Finally, we intensified our focus on bringing Lean thinking to all our activities. As part of this process, we made a major decision to move the whole corporation to a single SAP solution over the next five to six years. As a result of the many acquisitions we’ve made, we have multiple business systems in our different operations, with all the inherent inefficiencies associated with that structure. After much internal review, we concluded that a single system would bring significant benefits in the long-term. This will be a substantial investment and, in the short-term, a slight headwind to earnings. However, as the implementation unfolds, we should see significant benefits in the out years. Looking to 2014, we are projecting a small increase in sales but a significant improvement in profitability. Sales will be up in both the Space and Defense segment and Components segment, driven by additional sales from recent acquisitions. We are forecasting sales in Aircraft about even with ’13, a combination of higher commercial sales and lower military sales. Industrial sales should also be flat, reflecting a conservative view that there is no clear recovery in sight just yet. Finally our Medical Devices sales will be slightly lower as a result of the divesture of the Ethox Buffalo facility. Profitability should improve significantly over 2013 as our restructuring efforts bear fruit and our focus on Lean continues. Looking at the risks and opportunities for next year, sequestration remains our major concern. Our leaders in Washington may reach a bargain which addresses this concern, but I don’t think that is particularly likely. On the opportunities side, we have seen a slight pickup in our industrial markets in the second half of ’13, so perhaps that bodes well for the future. As always, we try to provide an outlook that balances these pluses and minuses. 2013 was an eventful year for our Company. Despite the challenges, we did not change our fundamental strategy. We strive to be the world’s leader in high-performance control systems. We maintain our excellence in components and continue to broaden our portfolio to offer higher-level systems to our customers. We look for bolt-on acquisitions which support this strategy. We share our technology across our segments and our diverse range of markets. Our products are used in applications “when performance really matters.” Our products are designed to work the first time, every time. They are used in applications where the cost of failure is high–where you cannot afford to use second best. With this strategy, we will continue to deliver superior value to our customers and superior returns to our shareholders. Respectfully submitted, 3


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    CHAIRMAN’S LETTER To Our Shareholders, Employees and Friends, I will retire from Moog at the end of January 2014 after 47 years with the Company. It will be a bittersweet departure. I joined Moog, at Bill Moog’s invitation, right out of graduate school. I was 25 years old and full of energy and optimism, but a little short on industrial experience. Bill and Wayne Hawk, the head of Aerospace and Industrial Controls, gave me a variety of wonderful opportunities to learn the business. Wayne became my mentor. Over the years, I worked with lots of extremely talented Moog engineers and business people. We worked on fascinating projects including the Space Shuttle, the B-2 Stealth Bob Brady graduated from M.I.T. in Bomber, Boeing’s Commercial airplanes and a broad range of sophisticated industrial 1962 and then did a two-year tour in controls provided to some of the world’s leading machine manufacturers. We did the U.S. Navy. He joined Moog in 1966, immediately business in every major industrial center on the globe. after graduating from the Harvard Business School. In his early days with I would not claim that every day at work was a walk in the park, but many were the Company, he had assignments in finance, personnel and operations. interesting and some were exciting and a lot of fun. In many of our programs and In 1976, he became the head of Moog’s projects, what we achieved provided us all with great satisfaction. In short, my career Aerospace business. Bill Moog retired in 1988, and Bob was elected CEO. He turned out to be everything I hoped for when I accepted Bill Moog’s offer. became Chairman of the Board in 1996. Over Bob’s 23 years as CEO, the I want to take this opportunity to thank all the Moog folks that I’ve worked with over Company grew from $307 million in sales to $2.3 billion and earnings these 47 years, and particularly those who supported me in my early days and increased from $12 million to $136 then later in my years as CEO. I also want to thank the many shareholders who’ve million. Thirty-seven acquisitions provided half the growth in revenue. supported us, and particularly those who believed in us during our struggles in the The other billion came as the result of early 90’s. Last, but by no means least, I want to thank my wife, Ann, and our three a consistent emphasis on product and technology development. Over the kids for sharing my Moog relationship with enthusiasm and, sometimes, with patience. years since 1988, the Company’s market capitalization has grown from I know John Scannell and his senior managers very well. I have every confidence that John a low point of $55 million to over $3 billion today. and his team will, as they say, take our Company to the next level, accomplishing feats that In December of 2011, when John we can hardly imagine. As a retiree and a shareholder, I’ll be watching with interest. Scannell was elected CEO, Bob became Executive Chairman. Bob will retire on January 31, 2014. As I look back, I consider myself unbelievably lucky to have met Bill Moog and Wayne Hawk and all the other Moog folks who built the Company and gave me the opportunity to have a career that fulfilled the American Dream. I’m not sure that I deserved this good fortune, but I certainly enjoyed it. All the best, 4


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    OFFICERS AND DIRECTORS JOHN R. SCANNELL JOE C. GREEN RAYMOND W. BOUSHIE Chief Executive Officer Executive Vice President Director Director Chief Administrative Officer Retired President and CEO Director Crane Aerospace ROBERT T. BRADY Executive Chairman RICHARD A. AUBRECHT WILLIAM G. GISEL, JR. Vice Chairman of the Board Director VP – Strategy and Technology President and CEO DONALD R. FISHBACK Director Rich Products Corp. Vice President Chief Financial Officer GARY A. SZAKMARY PETER J. GUNDERMANN Vice President Director WARREN C. JOHNSON Chief Human Resources Officer President and CEO President Astronics Corp. Aircraft Controls Group PATRICK J. ROCHE JAY K. HENNIG Vice President KRAIG H. KAYSER Global Systems and Services Director President President and CEO Space and Defense Group Seneca Foods Corp. SASIDHAR ERANKI Vice President SEAN GARTLAND Deputy General Manager BRIAN J. LIPKE President Aircraft Controls Group Director Industrial Group Chairman and CEO Gibraltar Industries LAWRENCE J. BALL HARALD E. SEIFFER Vice President President Components Group General Manager, Europe ROBERT H. MASKREY Director Retired Executive VP, COO MARTIN J. BERARDI TIMOTHY P. BALKIN Moog Inc. Treasurer President Assistant Secretary Medical Devices Group ALBERT F. MYERS Director JENNIFER WALTER Retired VP Strategy and Technology Controller Northrop Grumman Principal Accounting Officer JOHN B. DRENNING Secretary Partner Hodgson Russ, LLP Left to Right: Dick Aubrecht, Joe Green, John Scannell, Don Fishback, Left to Right: Harald Seiffer, Marty Berardi, Sash Eranki, Warren Johnson, Bob Brady, Larry Ball, Gary Szakmary Jay Hennig, Pat Roche, Sean Gartland 5


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    AIRCRAFT CONTROLS We supply integrated systems and critical control products to airframers and aftermarket customers for military, commercial and business aircraft. For the first time in Company history, revenues from development, production and aftermarket support of our aircraft products accounted for over $1 billion in sales. Both commercial and military sales were higher. On the commercial side, our largest ongoing development program is the Airbus A350 XWB. The airplane had a successful first flight in June and we’re supporting its entry into service in 2014. More than 760 A350 wide body aircraft are on order for 39 customers. Our content includes the primary flight control actuation and trailing edge flap actuation. Boeing’s 787 Dreamliner content includes more than 500 discrete parts that control all of the primary and secondary flight surfaces, horizontal stabilizer, leading edge slats and trailing edge flaps. In September, the 787-9 flew for the first time. This variant is 20 feet longer than the 787-8 and can carry 40 more passengers. Entry into service is mid-2014. During the year, we announced our win of the flight control system on Embraer’s second-generation E-Jets. As a key system supplier, we will provide design, qualification and certification support for the primary flight controls, including the proprietary flight control computers and software, flight control actuators and related control electronics. In the business jet market, we’re providing the control computers, primary and secondary flight controls, high lift system and cockpit controls for Gulfstream’s G280 ®. The G280 is the longest range aircraft in its super mid-size class. The G650 ® ultra-long range aircraft is the fastest certified business aircraft in the world and features a Moog high lift system. Both aircraft are fully certified and entered into service during the year. Bell Helicopter selected Moog as the primary flight control actuation supplier on the 525 Relentless™. The helicopter will be marketed to the offshore oil industry, search and rescue operators and emergency medical operations. On the military side, Lockheed Martin’s F-35 Joint Strike Fighter is in low rate production with a build rate of three aircraft per month. Flight tests recently surpassed 10,000 hours as 83 aircraft are in various phases of testing with the U.S. Air Force, Marine Corps, Navy and U.K. Royal Air Force. To date, 185 aircraft have been ordered. In July, the X-47B Unmanned Combat Air System demonstrator completed its first carrier based arrested landing and take-off on the deck of the USS George H. W. Bush (CVN 77). The arrested landing brought the aircraft from 145 knots to stop in less than 350 feet. As part of the sea trial, the aircraft was also launched using the carrier’s catapult. Moog provided fully redundant architecture including multi-function system controllers, specialized system software and highly dynamic servoactuators to position the aileron, elevon and spoiler flight surfaces. We are two years into development for the U.S. Air Force KC-46 tanker aircraft. The KC-46 is based on Boeing’s 767, a 30-year old platform with Moog autopilot actuators. The tanker variant features a modernized fly-by-wire refueling boom. We’ll provide the design, integration and qualification for the complete actuation system used to extend, retract and guide the boom. This system gives the tanker advanced refueling capabilities, allowing it to refuel any fixed-wing receiver aircraft in the fleet. In 2014, our forecast for the Aircraft Controls segment sales is $1.057 billion with commercial aircraft sales of $499 million and military aircraft sales of $558 million. 6


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    AIRBUS FAMILY A330, A350 AND A380 – The Airbus family of passenger aircraft reached a milestone on June 14, 2013 as the A350 took to the sky for its first flight. Made from advanced materials, the A350 provides long range fuel efficiency, advanced technology and seating capacity for 250 to 400-plus passengers. Moog supplies all of the A350 primary flight control actuation as well as all of the trailing edge flap actuation. On the A330 (foreground), Moog supplies the aileron servoactuators, servovalves for other primary flight control surfaces and various flap actuation components. On the A380 (background), Moog supplies geared rotary actuators, input and drivedown gearboxes and various accessories for the high lift system as well as key components for the landing gear steering and braking systems. Courtesy of Airbus S.A.S./H. Goussé 7


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    AIRCRAFT CONTROLS Military Aircraft – Commercial Aircraft – Business Jets – Aftermarket PRODUCTS Unmanned Aerial Systems: COMPETITIVE ADVANTAGES • Integrated primary and secondary flight • X-47B UCAS-D, Mantis, Hunter, Heron, • Flight control system design and integration control systems Searcher • Complete actuation system integration • Flight control computers and software Commercial Airplanes: capability • Actuator control electronics • Boeing 737, 747, 767, 777, 787 • Unparalleled experience in design of • Flight control actuators using hydraulic, • Airbus A320, A330, A350, A380 primary and secondary flight control mechanical, electromechanical and • COMAC C919 systems, both in the U.S. and overseas electrohydrostatic technologies • Embraer E-Jets-E2 • State-of-the-art technology in flight • Stabilizer trim controls and multi-axis feel • Bombardier Q400 controls, engine controls, navigation and and trim systems guidance, and active vibration controls Business Jets: • Wingfold, bladefold and weapons bay • World-class manufacturing facilities staffed • Bombardier Challenger 300, 604, 605 actuation systems with a skilled, experienced and team-based and Global Express, Cessna Citation X, workforce • Active vibration control systems Gulfstream G280, G350, G400, G450, G550, G650, Hawker 4000, Premier I • Focused, highly-responsive global • Engine thrust vector control actuation aftermarket support organization systems Military and Commercial Helicopters: • Flight control servovalves • H-60/S-70, H-53, EH-101, S-76, S-92, • Engine control actuators and servovalves V-22, AH-64, A109, A129, AB139, COMPETITORS • Aircraft braking and steering selector AW159, AW609, Future Lynx, 525 • Parker Hannifin, UTC (Goodrich, Hamilton manifolds and servovalves Military Engine Controls: Sundstrand), Liebherr, Nabtesco, • F-404, F-414, F-110, F-119, F-135, Woodward, Curtiss-Wright • MEMS-based inertial sensors and inertial measurement units EJ200, AE2100, T406, RTM322, T700 • Ground-based navigation aids Commercial Engine Controls: • CF-6, GE90, V2500, RB211 and Trent, MAJOR PROGRAMS Honeywell APUs, PW 901 Customer Support: Military Aircraft: • All current production programs above plus • F-35, F-15, F/A-18E/F, EA-18G, F-16, legacy programs including A-7, A-10, A300, KC-46, A400M, Korea T-50, C-27J, C-295, A340, AH-64, AMX, B-1B, B-2, B-52, CN-235, Eurofighter-Typhoon, BAE-146, C-5, C-130, C-141, CH-46, JAS 39, India LCA, Japan XC-2, XP-1, CH-47, CH-53, DC-8, DC-9, DC-10, E-2C, Hawk AJT, M346 EA-6B, F-2, F-4, F-100, F/A-18C/D, F/A-22, Hawk, KC-10, KC-135, MD-11, MD-80, MD-90, P-3, T-45, Tornado, U-2, VC-10, 757 5 4 1 3 1 Military Aircraft OEM $ 365M 2 2 Military Aircraft Aftermarket 231M 3 Commercial Aircraft OEM 307M 4 Commercial Aircraft Aftermarket 113M 5 Business Jets 44M _______________________________________ 2013 TOTAL $ 1,060M 8


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    Boeing 787-9 Embraer E-Jet E2 Family Courtesy of Boeing Company Courtesy of Embraer S.A. Bell 525 Relentless™ MH-60S SEAHAWK® Courtesy of Bell Helicopter Courtesy of U.S. Navy / MC Spec. 3rd Class Omar Powell X-47B Unmanned Combat Air System (UCAS) Courtesy of U.S. Navy MC Spec. F/A-18F Super Hornet 3rd Class Kevin J. Steinberg Courtesy of U.S. Navy / Lt. j.g. Douglas Spence F-35B Lightning II Joint Strike Fighter (STOVL), Vertical Landing Courtesy of U.S. Marine Corps / Cpl. Ken Kalemkarian 9


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    SPACE AND DEFENSE CONTROLS In our target markets we have a systems level understanding of our customer’s applications allowing us to design and manufacture reliable hardware and provide focused customer support. Our commitment to providing unmatched mission critical solutions continues to strengthen our business. Revenues in the Space and Defense segment accounted for $396 million of 2013 sales. Sales from our recent acquisitions contributed to the growth, adding nearly $60 million. Our legacy space business dropped 6% on a softer commercial satellite market and defense was 5% lower on slower program activity. During the second half of the year, we incurred a program write-off of $5 million and $4 million in restructuring costs to resize the workforce to address our 2014 sales forecast. In January, we acquired Broad Reach Engineering, a Colorado-based designer and manufacturer of spacecraft avionics and software for aerospace, scientific, commercial and military missions. Broad Reach also provides ground testing, launch and on-orbit operations. We welcomed a strong set of products to our space portfolio, as well as an experienced team of individuals. Broad Reach has extensive spacecraft heritage and industry expertise in avionics, software and mission planning. We completed the integration of our In-Space Propulsion (ISP) business, acquired a year ago. ISP is a developer and manufacturer of liquid propulsion systems, tanks, engines and components for satellites, launch and missile defense systems. We now offer more propulsion capabilities, a complete portfolio of satellite controls, and a greater presence in Europe with three recently acquired European facilities. Heritage products delivered by Moog to NASA for the past 50 years steered the Apollo Saturn rocket, the Space Shuttle, and controlled the engines during Curiosity’s descent onto Mars. NASA’s LADEE spacecraft has content from six different Moog sites and seven different product lines, including launch, satellite, payloads, and newly acquired Broad Reach Engineering and ISP. Our space products portfolio now includes commercial and military satellite actuation, rocket engines, propellant flow control, vibration isolation, and steering for launch and space vehicles. In adding to our capabilities, we’ve learned that acquiring space companies can be quite challenging in the short run, but we believe our strategy of expanding our global presence and evolving as a higher tier systems supplier will improve our market position over the long term. In the defense market, our electromechanical actuation systems and upgrade solutions operate turrets, and aiming and stabilization systems on armored ground vehicles worldwide; including the United States Stryker MGS, LAV-25 and the European CV90. We have strengthened our European operations, headquartered in Germany, and are focused on bringing our full range of defense capabilities to the global marketplace. We believe these actions strategically position our Company to benefit from increased foreign sales in the years to come. In 2013, we delivered more than 15,000 missile fin steering controls for the HELLFIRE®, TOW, and other U.S. missile programs. Our outstanding product quality and delivery rating on the HELLFIRE® program earned us a Strategic Performance Management Team (SPMT) Supplier of the Year honor from Lockheed Martin Missiles and Fire Control. Our surveillance portfolio includes rugged cameras and precision positioning systems and web-based remotely operated systems for commercial and military use. Specialized camera housings with wireless and vandal-resistant camera systems for security and surveillance applications highlight the product line. Despite the challenges faced in 2013, sales in 2014 should be higher, reaching $433 million. The space market will include a full year of sales from Broad Reach. In the defense market, we expect to see stronger foreign military sales for ground vehicle systems, but sequestration in the U.S. remains a concern. Security sales are expected to be slightly higher with additional sales coming from recent new product introductions. We continue to build and expand our reputation as the premier precision motion and flow control solutions provider for the space, defense and security industries. Our growth into foreign markets, focus on world-class project management and ever-expanding technical depth strengthens our position in the market and our commitment to our customers. 10


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    CYGNUS SPACECRAFT – The Cygnus advanced maneuvering spacecraft, designed by Orbital Sciences Corp., successfully demonstrated its cargo delivery capabilities in 2013. Cygnus will perform International Space Station resupply flights for NASA, including eight missions in 2014, to deliver crew supplies, spares and scientific experiments to the ISS. The Cygnus system is a low-risk design incorporating elements drawn from Orbital, Moog and other partners utilizing existing, flight-proven spacecraft technologies. Moog supplies the cabin fan assembly, pressure transducers for the Cygnus spacecraft and the first stage electrohydraulic TVC system, electromechanical engine control actuators for main valves, Castor 30 electromechanical TVC system and triad thrusters for the Antares launch vehicle. Courtesy of NASA and Orbital Sciences Corporation 11


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    SPACE AND DEFENSE CONTROLS Space – Defense – Surveillance/Security PRODUCTS MAJOR PROGRAMS • Thrust vector control actuation systems, Spacecraft Structures and Propulsion and COMPETITIVE ADVANTAGES avionics, propulsion controls and structures Motion Controls: • Multi-tier provider capable of components, for missiles and launch vehicles • LS-1300, Eurostar, Spacebus, AEHF, systems and/or prime level integration • Liquid rocket engines, tanks, chemical and Boeing 702, LM A2100, NASA Mars • Unmatched fluid and motion control electric propulsion systems, subsystems Curiosity, DS-1000/2000, MAVEN, heritage for launch vehicles, spacecraft, and components for spacecraft and launch Meteosat Third Generation, LADEE, EAGLE, combat vehicles, submarines, missiles and vehicles Star 2, James Webb Space Telescopes, surveillance • Solar array drives, antenna pointing GPS III, Galileo • Global network of sales, technical and mechanisms, reaction wheels and sun Launch Vehicle and Strategic Missile manufacturing resources sensors for spacecraft Motion, Vibration and Propulsion Controls: • A flexible and responsive workforce willing • Spacecraft avionics and flight software, • Antares®, Trident D-5, Minuteman III Service to adapt our processes to support evolving occultation science payloads, GPS Life Extension, Atlas V, Delta II/IV, Ariane 5, customer requirements receivers, communications transceivers Vega, H-IIA, GMD, Pegasus, Minotaur, • Focus on world-class project management • Vibration suppression for aerospace, Falcon 1e, NASA’s Space Launch System • Highly flexible, cost effective, cellular defense and commercial applications and Multi-Purpose Crew Vehicle manufacturing for families of products • Fin actuation systems, divert and attitude Missile Steering Controls: • High reliability electronics design with control components for missiles and • HELLFIRE®, TOW, Tomahawk, EKV, MALD® assembly and test facilities interceptors Defense Controls: • Stores management system for use on light • Stryker Mobile Gun System, LAV-25 attack fixed and rotary wing aerial platforms COMPETITORS and CV90 family, FLW 100/200 remote • Electromechanical actuators, controllers and mount weapon system, AC-130W Stinger, Spacecraft Controls: slip rings for armored vehicle turrets, G/ATOR radar • Propulsion Controls – Snecma, Vacco, ammunition handling and radar systems Naval Systems: ValveTech • Electromechanical and electrohydraulic • Virginia-class submarines, USS Gerald R. • Motion Controls – Aeroflex, RUAG, Sierra actuation products for naval ships, Ford aircraft carrier Nevada submarines and large autonomous • Vibration Control – ATA Engineering, Surveillance/Security: underwater vehicles Honeywell, Lord Corp. • Sensor and Surveillance Systems for • High definition, network, visible and thermal Spacecraft Avionics: military, industrial, commercial, cameras, precise pan and tilt positioners, • SEAKR, Southwest Research Institute, BAE transportation and process control rugged tripods and surveillance system installations Missile and Launch Vehicle Steering integration and Propulsion Controls: • Honeywell, Marotta, Hamilton Sunstrand, SABCA, Vacco, Valcor, Parker Hannifin, Woodward Defense Control Systems: • Curtiss-Wright, ESW, Woodward Naval Systems: 3 • Hamilton Sundstrand, Honeywell, Limitorque, Sargent Aerospace & Defense Surveillance/Security: • Cohu, RVision, Videotec, Schneider/Pelco, AXIS 1 2 1 Space $ 221M 2 Defense 127M 3 Surveillance / Security 48M _______________________________________ 2013 TOTAL $ 396M 12


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    Orbital Sciences Corp. Antares Rocket NASA LADEE Courtesy of Orbital Sciences Corporation Courtesy of NASA Ames / Dana Berry Remote Controlled Light Weapon Station FLW 200 Courtesy of Krauss-Maffei Wegmann GmbH & Co. Moog EXO® HD Camera HELLFIRE ® Virginia-Class Submarine Minnesota, SSN 783 Courtesy of U.S. Marine Corps / Cpl. Samantha H. Arrington Courtesy of U.S. Navy / Huntington Ingalls Industries Multiple Launch Rocket System-Improved Courtesy of Krauss-Maffei Wegmann GmbH & Co. 13


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    INDUSTRIAL SYSTEMS Our customers are partners, and we take a collaborative approach to solving their most difficult motion control problems with electric, hydraulic and hybrid solutions. Industrial Systems sales in 2013 were $592 million, with industrial automation sales accounting for $293 million, sales of energy products at $154 million and simulation and test product sales at $145 million. Sales were down year over year in energy and industrial automation, while simulation and test sales were higher. We saw some of our major industrial markets – including controls for plastics, metal forming and steel mills experience weak demand during the year. As a result, we engaged in a range of global restructuring activities to reduce overhead, consolidate facilities and exit underperforming product lines. We’re entering 2014 with a leaner, more profitable and focused industrial automation business. Lower sales in our wind energy business presented a challenge throughout the year as well. Wind turbine OEM’s struggled with overcapacity and slowing demand, specifically in China and Europe. We consolidated our manufacturing activities in China to resize the business and reduce our cost basis. Despite the recent challenges, wind is a long-term play for our Company and an important market for future growth. We have more than 35,000 onshore and offshore wind turbine pitch control installations. The introduction of a new AC wind turbine pitch control system offers improved performance, and we recently won our first major order for 300 systems to be delivered in South America over the next three years. This is a milestone for this business, as it is the first significant production order for our AC solution. Moog hydraulic, electric and hybrid systems are world class and suitable for the most demanding applications. Moog’s expertise and collaborative culture result in versatile testing technology solutions for components, materials and vehicles. Our in-depth understanding of the capabilities of each technology for specific application requirements allows us to collaborate with customers to deliver the best solution for their specific needs. Our hydraulic and/or electric simulation tables enable automotive test labs to perform research and development testing for the durability and functionality of vehicle components. Our driving simulator technology incorporates an electric motion base that enables automotive manufacturers to test current and future vehicle designs and assess vehicle dynamics with expert drivers. New product development is critical in all of our markets. In conjunction with HelpMeSee, an international not-for-profit, and other partners, Moog engineers are developing the world’s first manual small incision cataract surgery (MSICS) training simulator. The technology applies the principles of aviation training to the development of a high-fidelity virtual reality surgical simulator and courseware. The HelpMeSee program will be implemented worldwide to train 30,000 cataract specialists and eliminate cataract blindness in developing countries. Moog was selected by HelpMeSee based on the quality of our haptics technology and motion control expertise. Haptics is the science of creating a realistic sense of touch for users in a virtual environment. High-fidelity haptics is critical to bringing the accurate sense of touch required for surgical training–offering unlimited opportunities for practice with pre-existing conditions and complications, without risk to patients. Prospective cataract specialists will be able to perform thousands of virtual surgeries before they ever operate on an actual patient. We are forecasting Industrial Systems sales for 2014 at $585 million. In 25 countries worldwide, we deliver superior value in industrial applications where performance, reliability and durability are critical. The cost of a component failure is far higher than the cost of acquiring that component so a premium is put on ensuring it performs the first time and every time. This is where we excel. The technical challenges involved in solving difficult motion control problems fit our profile – providing high-performance and leading-edge solutions. 14


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    DALLARA DRIVING SIMULATOR – Dallara Automobili, based in Italy, provides design, engineering and support for some of the world’s most competitive car racing teams. Moog engineers designed the Dallara driving simulator so race car drivers can experience track-like conditions while evaluating pre-production design refinements. For their 6 DOF motion base system, Moog engineers designed actuators that feature higher stiffness and lower weight. Moog’s highly responsive actuation system and intelligent controller create a truly realistic experience. Car designs are tested by drivers to assess aerodynamic parts, springs, shock absorbers and tire behavior. The simulator has significantly reduced development time and costs while supporting driver training, safety and race preparation. Courtesy of Dallara Automobili 15


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    INDUSTRIAL SYSTEMS Industrial Automation – Energy – Simulation and Test SOLUTIONS Turnkey Systems: • Oil and gas exploration and production – • Multi-axis simulation tables and suspension, Solutions for downhole drilling, topside and Motion control products and systems kinetics and compliance, systems for subsea equipment, offering high reliability incorporating a wide variety of world-class automotive testing for harsh environments electric and hydraulic components • Driving simulators to aid R&D engineers in Simulation and Test: Products: automotive development and to train drivers • Flight simulation – Six-degrees-of-freedom • Broad portfolio of electric servo motors Aftermarket: motion bases, control loading systems and and electric actuators used in applications control cabinets for realistic pilot training ranging from light industrial automation to • Moog Global Support™ offers world-class large machinery repair and maintenance services and • Automotive testing systems – Turnkey flexible programs for upgrades, preventative systems and products for structural and • Controllers, servo drives and software for a maintenance and annual/multi-year performance testing broad range of motion control applications contracts • Aerospace testing – Turnkey systems and • Hydraulic servovalves, ranging from products for iron bird, structural and miniature valves for Formula 1™ race cars component testing to large valves for industrial applications MAJOR SECTORS and valves with embedded intelligence • Medical simulation – Dental and cataract Industrial Automation: surgery training simulators for realistic • A wide range of high-performance servo • Plastic injection and blow molding training of students pumps for high-end industrial applications machines – Hydraulic and electric products Systems: for improved speed, performance and energy efficiency COMPETITIVE ADVANTAGES • Hydraulic and electric solutions specifically designed and tailored to perform with • Ability to improve our customer’s machine • Steel mills – Servovalves, servoactuators precision control in harsh environments performance with high-performance motion and servocontrollers for improved and demanding applications control solutions and world-class products dimensional accuracy and surface finish of • Electric hexapod motion systems for flight mill output • Significant domain expertise in our simulation and automotive test systems customers’ machines, industry applications • Metal forming machinery and presses – and design challenges • Control loading and G-seat solutions for Products to improve performance and flight training simulators productivity in a wide range of machines • Global organization focused on collaborating with customers to meet their requirements • Integrated hydraulic manifold systems Energy: incorporating servovalves, pumps, • Rich experience and strong capabilities in • Wind turbines – Pitch systems, rotor manifolds, sensors and power units the design and application of products and monitoring and blade sensing systems system solutions for use in challenging • Electric pitch control and load sensing offering efficient operation, increased safety environments systems for wind turbines and extended life of the turbine • Worldwide aftermarket support and services • Gas and steam turbines – Solutions for provided by Moog employees precise control and greater safety of fuel metering and guide vane positioning COMPETITORS Servovalves: • Bosch Rexroth, Parker Hannifin Electric servodrives, servomotors, servoactuation: • Danaher, Baumüller, Siemens, Exlar 3 Simulation and Test Systems: • Rexroth Hydraudyne, MTS Systems Corp. 1 Wind Energy: • SSB, RE-energy Electric (Suzhou) Co., Ltd. 2 1 Industrial Automation $ 293M 2 Energy 154M 3 Simulation and Test 145M _______________________________________ 2013 TOTAL $ 592M 16


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    Dallara Driving Simulator Thornton Bank, Belgium Courtesy of Dallara Automobili Courtesy of Christian Eiche / REpower Systems SE Steel Production Machinery Oil and Gas Exploration and Production Courtesy of Peter Bowater / Alamy Courtesy of ACE Stock Ltd. / Alamy Cataract Surgery Simulator CAE Full-Flight Simulator Courtesy of HelpMeSee Courtesy of CAE Moog Fuel Tank Test System Patent Pending U.K. Patent Application No. 1300552.5 17


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    COMPONENTS Our business is focused on solving difficult engineering problems for motion control, air moving, electronics and fiber optic applications. Components revenues for 2013 were $415 million for products sold into markets also supported by Moog’s other business segments. The segment specializes in solving motion and power and data transmission challenges in harsh environments with reliable and high-performance slip rings, motors, actuators, air moving, fiber optics and sonar products. Slip rings transmit power and broadband data signals across rotating interfaces and we offer more than 10,000 designs used in a variety of rotating electromechanical systems. Our products transfer power and data for de-icing, flight control and blade position on the V-22 Osprey rotorcraft as well as most of the major military helicopters flying today. Moog slip rings are also installed on tank turrets, satellites, CT scanners, underwater vehicles and closed circuit television systems. Our motor technology engineers are experts in understanding high efficiency, precision and low noise requirements in aerospace, industrial and medical applications. Moog brushless DC motors are installed on critical systems from commercial aircraft brakes to sleep apnea devices. Moog Animatics motors and linear actuators support applications for factory automation, winding and spooling and robotics. Moog SmartMotors™ can be linked to create a single synchronized, multitasking machine with minimal programming, wiring and maintenance. During the year, we completed the acquisition of Aspen Motion Technologies located in Radford, Virginia. Aspen offers high-performance permanent magnet brushless DC motors, integrated digital controls and motorized impellers. Aspen’s engineering team also designs custom motors for integration into end products in a variety of industrial applications where reliability, low acoustic noise, efficiency and custom sizing are required. The addition of Aspen’s product line fills a product and technology gap and enhances our existing customer base. Deep water oil drilling and production operations require rugged equipment and maximum performance and uptime. Our Canadian operation designs and manufactures custom and vessel-specific Floating Production, Storage and Off-Loading (FPSO) swivels used in buoys, turret moorings and loading towers operating worldwide. Marine swivels are heavily customized systems designed for ship conversions and retrofits that incorporate electric slip rings, hydraulic utility swivels and fiber optic rotary joints. Moog Tritech, one of our U.K. based operations, is known for designing and manufacturing high-performance acoustic sensors, sonar and video cameras used on remotely operated vehicles (ROVs) and deployed in a variety of critical undersea applications that require exceptional performance and reliability. Tritech’s new RAMS™ technology is deployed beneath FPSO vessels to provide integrity and position monitoring for mooring lines and risers from a single sonar head. The technology was developed and tested in conjunction with British Petroleum and gives operators a reliable and real-time monitoring system. For 2014, our Components segment forecast is $460 million. Strategic acquisitions have expanded our product offerings in each of the markets we serve and our customer base continues to grow worldwide. 18


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    FPSO ARMADA STERLING – Floating Production, Storage and Off-Loading (FPSO) vessels are positioned in remote areas and deep water. These vessels use a turret mooring system integrated into the hull and connected to the seabed with a system of chains, wires and anchors that allow for the 360° rotation, or weathervaning, of the FPSO around a turret. Our swivels are customized systems that incorporate electric slip rings, hydraulic utility swivels and fiber optic rotary joints to form the key parts of the turret at the bow of the FPSO. They are designed to withstand temperature extremes of -20ºC to +60ºC, high humidity, a salt atmosphere and external forces from wind and ship movement. The Armada Sterling FPSO has a storage capacity of 750,000 barrels of oil and is located offshore from Mumbai. The Sterling’s mooring system is designed for severe monsoon conditions and can withstand a maximum wave height of 21.4 meters. Courtesy of Neil M. Johnston 19


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    COMPONENTS Military Aircraft – Commercial Aircraft – Space Controls – Defense Controls – Industrial – Energy / Marine – Medical PRODUCTS MAJOR SECTORS Energy / Marine : Motion Technology: Military and Commercial Aircraft: • Remotely Operated Vehicles (ROV) – • Electro-optic / infrared sensors and slip rings, fiber optic rotary joints, • Slip ring assemblies – electromechanical gimbaled systems – brush and brushless multiplexers and media converters devices that allow the transfer of power and broadband data signals from a stationary to DC motors, air movers, slip rings, resolvers, • Subsea imaging – acoustic sensors, sonars a rotating structure RVDTs, integrated assemblies, Ethernet and video cameras switches • Floating Production, Storage and Offloading • Brush and brushless DC torque and servomotors • Secondary flight controls, primary flight (FPSO) – explosion-proof slip rings controls for UAVs and target drones – Medical: • High-performance fractional horsepower electromechanical servo and utility • Sleep disorder devices, critical care brush and brushless DC motors and drives actuators ventilators and portable oxygen concentrators – • Linear servomotors • Aircraft servos and instruments – brush and brushless DC motors and blowers • Position sensors – resolver, synchro and brushless DC motors, LED and analog RVDT • Medical imaging – slip rings, fiber optic instruments rotary joints • Servo and utility actuators – rotary and linear • Communication networking – Ethernet • Medical and laboratory centrifuges – • Fluid rotary unions switches, media converters brushless motors, slip rings • Solenoids Space Controls: • Integrated electromechanical mechanisms, • Solar array drive assemblies – slip rings, COMPETITIVE ADVANTAGES single and dual axis gimbals motors, resolvers, integrated and • Air moving systems build-to-print mechanisms • Market leader in slip rings and fractional horsepower brushless DC motors • Aircraft displays and avionic instruments Defense Controls: • Strong engineering and manufacturing • Alternators • Armored vehicle and pedestal turrets – capability with a reputation for highly • SmartMotor™ integrated servo systems and slip rings, resolvers and air moving reliable, technically differentiated products linear actuators • Radar – servo and utility actuators and • Multi-component and system level engineering Fiber Optics and Communications: integrated electro-mechanical solutions knowledge and applications support • Fiber optic rotary joints, fiber optic Industrial: • Extensive material science and analytical multiplexers, transmitters and receivers • Video security and surveillance equipment capability • Fiber optic modems, Ethernet switches, – slip rings • Market leader in marine marketplace for media converters, tactical connectors and • Robotics and material handling – brush, rotary power and data transfer cable assemblies brushless and linear motors and slip rings • Integration of components into sub-systems • Subsea acoustic sensors and sonars; • Telecommunications and computer providing higher value, higher level solutions navigation and control systems equipment cooling – air moving COMPETITORS Slip Rings: • Stemmann, Schleifring, Aeroflex Airflyte Commercial Motors: • Danaher Motion, Allied Motion, Ametek Military Motors: 6 1 • Danaher Motion, Woodward MPC, Axsys Actuators: • Smiths, Woodward MPC, Kearfott Air Moving: • EBM 2 5 1 Military Aircraft $ 96M 3 2 Commercial Aircraft 29M 3 Space and Defense 62M 4 4 Industrial 79M 5 Energy /Marine 82M 6 Medical 67M _______________________________________ 2013 TOTAL $ 415M 20


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    M1A2 Abrams Tank CV-22 Osprey Courtesy of U.S. Army / Pfc. Paige Pendleton, 1st BCT, 1st Cavalry Courtesy of U.S. Air Force / Staff Sgt. Markus Maier Common Remotely Operated Weapon Station, M153 PROTECTOR NASA Tracking and Data Relay Satellite (TDRS) Courtesy of Kongsberg Courtesy of Boeing Company Pharmaceutical Processing Automation Courtesy of JG Photography / Alamy Sleep and Respiratory Care Boeing 787- 8, Flight Critical Motion Control Solutions Courtesy of Claudio Luna 21


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    MEDICAL DEVICES Our medical products are designed to simplify procedures, increase patient safety and enhance patient and caregiver outcomes. Our Medical Devices segment supports intravenous (IV) therapy and enteral nutrition delivery with a suite of pumps and components. In 2013, sales were higher, at $147 million, with $42 million in pump sales, $56 million in administration set sales and $49 million in laboratory services and products sold into OEM medical manufacturers. Our ambulatory and stationary feeding pumps, sold under the Zevex label, deliver nutrition for direct gastrointestinal feeding. Products include the EnteraLite® Infinity® and Infinity® Orange™ feeding pumps. These pumps are used by infant, pediatric and adult tube-fed patients and designed for ease of use and mobility. Moog Curlin infusion therapy pumps offer intravenous, intra-arterial, subcutaneous or epidural flow of fluids and precise medicine delivery. Our Aitecs syringe pumps are used in anesthesia and general ward applications, mostly in Eastern European countries. During the year, we engaged RBC Capital Markets LLC to assist with a strategic assessment of the Medical Devices segment, including the possibility of divestiture. In July, we completed the sale of the Ethox Buffalo operation resulting in an after-tax non-cash loss of approximately $5 million. We also recorded a non-cash charge of $24 million after-tax for goodwill impairment. We’ve added to our regional distribution network for IV and enteral pumps sold in the U.S. and Canada, allowing us to work more closely with key accounts and capture new business. For 2014, our forecast is $137 million, including $53 million in pump sales, $46 million in sales of administrative sets and $38 million in sales of other products. 4 1 3 1 Pumps $ 42M 2 2 Administration Sets 56M 3 Sensors and Handpieces 17M 4 Other Products 32M _______________________________________ 2013 TOTAL $ 147M 22


  • Page 25

    Pain Management Curlin® PainSmart Infusion Pumps Zevex Enteral Pumps EnteraLite® Infinity® Feeding Pump Aitecs Syringe Pump beeLINE® Disposable Pumps PRODUCTS COMPETITIVE ADVANTAGES • Electronic ambulatory and acute care infusion pumps • We are specialized in our markets, concentrating on pumps and • Enteral feeding pumps for acute care, long-term care and their respective administration sets, creating a market solution ambulatory care for specialized clinical nutrition focus • Syringe infusion pumps and safety software that reduce drug • Extremely versatile for all areas in hospitals with enhanced safety administration errors and ease of use from neonates to adult patients • Sensors used in infusion pump systems for bubble detection and • Full range of products from low end/cost effective to high-end, air-in-line sensing including single and double syringe pumps, PCA, pumps, stand alone and stackable pumps • Surgical handpieces used primarily in cataract surgery • Moog manufactures many of the critical component technologies • Sterilization and comprehensive lab services that go into infusion therapy pumping devices SALES CHANNELS COMPETITORS • Moog Medical direct: infusion pumps, administration sets, enteral • B. Braun, CareFusion, Smiths Medical, Hospira, Baxter International, feeding products, sensors and surgical handpieces CME, Covidien • Major global clinical nutrition companies: international distribution of enteral products • Distributors and dealers worldwide 23


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    FINANCIAL HIGHLIGHTS STOCK PRICE COMPARISON SALES (Dollars in millions) (Moog Class A and Class B Stock) $3,000 $ 2,610 $ 2,470 MOOG A/B HIGH LOW $2,500 $ 2,331 $ 2,114 $ 1,903 A $ 41.38 $ 33.46 $ 2,000 $ 1,849 1ST QUARTER B $ 41.00 $ 33.75 $ 1,558 A $ 47.41 $ 40.03 $ 1,500 2ND QUARTER $ 1,306 B $ 47.50 $ 40.20 $1,051 $ 939 $ 1,000 A $ 52.49 $ 42.85 $ 755 3RD QUARTER B $ 51.87 $ 43.40 $ 500 A $ 59.81 $ 50.38 4TH QUARTER B $ 59.40 $ 50.69 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Bloomberg FISCAL YEAR REVENUE BY SEGMENT NET EARNINGS (Dollars in millions) $160 $ 152 5 $ 136 $140 4 1 $ 119 $ 120 1 Aircraft Controls 40% $120 $ 108 2 Space and Defense $ 101 Controls 15% $ 100 3 $ 85 2 3 Industrial Systems 23% $ 81 $ 80 4 Components 16% $ 65 $ 57 5 Medical Devices 6% $ 60 $ 43 $ 40 REVENUE BY MARKET $ 20 6 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 5 1 FISCAL YEAR 1 Defense 33% 4 2 Industrial 22% DILUTED EARNINGS PER SHARE 3 Commercial Aircraft 19% (In dollars) 3 2 4 Energy 9% $ 3.50 5 Space 9% $ 3.33 $ 3.25 6 Medical 8% $ 2.95 $ 3.00 $ 2.75 $ 2.63 $ 2.75 GEOGRAPHIC DISTRIBUTION $ 2.50 $ 2.34 $ 2.36 $ 2.25 $ 1.97 $ 1.98 $ 2.00 $ 1.64 $ 1.75 $ 1.45 $ 1.50 $ 1.22 2 1 $ 1.25 $ 1.00 $ 0.75 $ 0.50 1 United States 59% $ 0.25 2 International 41% $ 0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Moog’s military and government funded revenue is 39% and commercial revenue is 61% FISCAL YEAR 24


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    FINANCIAL REVIEW (Dollars in millions, except per share data) 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 SEGMENT SALES: AIRCRAFT CONTROLS $ 1,060 $ 964 $ 850 $ 757 $ 663 $ 673 $ 587 $ 527 $ 452 $ 412 $ 404 SPACE AND DEFENSE CONTROLS $ 396 $ 359 $ 356 $ 325 $ 275 $ 253 $ 185 $ 148 $ 128 $ 116 $ 114 INDUSTRIAL SYSTEMS $ 592 $ 634 $ 629 $ 546 $ 455 $ 532 $ 436 $ 381 $ 315 $ 282 $ 237 COMPONENTS $ 415 $ 374 $ 353 $ 360 $ 346 $ 341 $ 283 $ 238 $ 156 $ 130 — MEDICAL DEVICES $ 147 $ 140 $ 142 $ 127 $ 111 $ 103 $ 68 $ 13 — — — NET SALES $ 2,610 $ 2,470 $ 2,331 $ 2,114 $ 1,849 $ 1,903 $ 1,558 $ 1,306 $ 1,051 $ 939 $ 755 EARNINGS BEFORE TAXES $ 165 $ 209 $ 184 $ 149 $ 111 $ 168 $ 144 $ 120 $ 95 $ 83 $ 58 NET EARNINGS $ 120 $ 152 $ 136 $ 108 $ 85 $ 119 $ 101 $ 81 $ 65 $ 57 $ 43 NET RETURN ON SALES 4.6% 6.2% 5.8% 5.1% 4.6% 6.3% 6.5% 6.2% 6.2% 6.1% 5.7% EARNINGS PER SHARE: BASIC $ 2.66 $ 3.37 $ 2.99 $ 2.38 $ 2.00 $ 2.79 $ 2.38 $ 2.01 $ 1.68 $ 1.48 $ 1.24 DILUTED $ 2.63 $ 3.33 $ 2.95 $ 2.36 $ 1.98 $ 2.75 $ 2.34 $ 1.97 $ 1.64 $ 1.45 $ 1.22 DILUTED WEIGHTED-AVERAGE 45.8 45.7 46.0 45.7 42.9 43.3 43.1 41.2 39.5 39.6 34.9 SHARES OUTSTANDING (in millions) RESEARCH AND DEVELOPMENT $ 135 $ 116 $ 106 $ 103 $ 100 $ 110 $ 103 $ 69 $ 44 $ 30 $ 30 CAPITAL EXPENDITURES $ 93 $ 107 $ 84 $ 66 $ 82 $ 92 $ 97 $ 84 $ 41 $ 34 $ 28 DEPRECIATION AND AMORTIZATION $ 108 $ 101 $ 96 $ 91 $ 76 $ 63 $ 52 $ 47 $ 36 $ 36 $ 30 AT YEAR END: TOTAL ASSETS $ 3,237 $ 3,106 $ 2,843 $ 2,712 $ 2,634 $ 2,227 $ 2,006 $ 1,608 $ 1,303 $ 1,125 $ 992 WORKING CAPITAL $ 924 $ 885 $ 834 $ 813 $ 764 $ 713 $ 617 $ 420 $ 313 $ 322 $ 341 INDEBTEDNESS $ 709 $ 765 $ 725 $ 765 $ 833 $ 671 $ 618 $ 387 $ 349 $ 311 $ 257 SHAREHOLDERS’ EQUITY $ 1,536 $ 1,305 $ 1,192 $ 1,121 $ 1,065 $ 994 $ 877 $ 763 $ 521 $ 472 $ 424 RETURN ON SHAREHOLDERS’ 8.6% 12.1% 11.4% 9.8% 8.3% 12.7% 12.3% 12.9% 12.8% 12.6% 12.5% EQUITY SHAREHOLDERS’ EQUITY PER $ 33.86 $ 28.80 $ 26.38 $ 24.70 $ 23.53 $ 23.30 $ 20.63 $ 18.04 $ 13.48 $ 12.23 $ 10.93 COMMON SHARE OUTSTANDING BACKLOG (12 month) $ 1,296 $ 1,279 $ 1,325 $ 1,181 $ 1,098 $ 862 $ 775 $ 645 $ 539 $ 450 $ 368 NUMBER OF FULL-TIME 11,152 10,976 10,320 10,117 10,005 8,844 8,364 7,273 6,662 5,781 4,744 EMPLOYEES Please Note: Amounts may not equal the total due to rounding. 25


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    INVESTOR INFORMATION REPORTS Shareholders receive a copy of our annual report and Form 10-K. All other public reports are available on our website or by contacting us via email, telephone or letter at: Investor Relations Moog Inc. East Aurora, New York 14052-0018 Phone: 716-687-4225 Email: investorrelations@moog.com ELECTRONIC INFORMATION ABOUT MOOG In our annual report, we convey key information about our financial results. In addition, we have a web site for investors. The site includes SEC filings, archived conference call remarks, answers to frequently asked questions, corporate governance information, press releases and links to our transfer agent. Please visit our site at: http://www.moog.com. Information contained on our web site is not incorporated into this annual report or our other SEC filings. ANNUAL MEETING Our Annual Meeting of Shareholders will be held on January 8, 2014 at the Albright-Knox Art Gallery, 1285 Elmwood Avenue, Buffalo, New York. Proxy cards can be voted by internet, telephone or letter. STOCK EXCHANGE Our two classes of common shares are traded on the New York Stock Exchange under the ticker symbols MOG.A and MOG.B. FINANCIAL MAILING LIST Shareholders who hold Moog stock in the names of their brokers or bank nominees but wish to receive press releases by e-mail should contact Investor Relations at Moog. TRANSFER AGENT AND REGISTRAR Wells Fargo Shareowner Services is the stock transfer agent and registrar maintaining shareholder accounting records. If assistance is needed, it is possible for shareholders to view all facets of their accounts online at: www.shareowneronline.com. The agent will respond to questions on change of ownership, lost stock certificates and consolidation of accounts. Please direct inquiries to: Wells Fargo Shareowner Services or Wells Fargo Shareowner Services PO Box 64874 1110 Centre Pointe Curve, Suite 101 St. Paul, MN 55164-0874 Mendota Heights, MN 55120 Toll Free: 1-800-468-9716 AFFIRMATIVE ACTION PROGRAM In recognition of our role as a contributing corporate citizen, we have adopted all programs and procedures in our Affirmative Action Program as a matter of Corporate policy. INDEPENDENT AUDITORS Ernst & Young LLP 26


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    m Moog Inc. | East Aurora, NY 14052 | P: 716.652.2000 | www.moog.com


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