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Udo Rieder, President and CEO: Erickson Air-Crane, Inc. (EAC), Interviews with The Wall Street Transcript

67 WALL STREET, New York - May 24, 2013 - The Wall Street Transcript has just published its Industrial Equipment, Aerospace and Defense Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Commercial Aviation and Energy Expenditures - Industrial Restructuring - Emerging Markets Penetration - Heightened M&A Activity - Defense Budget Uncertainty - Capital Equipment Technology Investing

Companies include: Erickson Air-Crane Incorporated (EAC) and many more.

In the following excerpt from the Industrial Equipment, Aerospace and Defense Report, the President and CEO of Erickson Air-Crane, Inc. (EAC) discusses company strategy and the outlook for this vital industry:

TWST: How much of the business is in the U.S. versus overseas? It sounds like you have a good mix.

Mr. Rieder: We do have a very good mix, and in fact, the diversification we created with the Evergreen Helicopters acquisition is of the most powerful benefits of this combination of businesses. By geography, about a third is in North America, about 30% is currently in Afghanistan, 15% is in South America, and then it's equally split between Australia and Europe after that, and a little bit in Africa, which we think may grow in importance over time. One of the things that makes the acquisition so attractive is prior to this, around 60% of the total business was in North America, and postacquisition it really does split it up nicely and diversify the business.

TWST: Tell us a little bit more about Evergreen Helicopters, which just closed, and Air Amazonia, which I believe you noted is still pending - a bit more about why those companies were attractive and a good fit for the company and its business strategy.

Mr. Rieder: Evergreen, or EHI, is really transformative for us. As I mentioned earlier, one service that we didn't provide was transporting passengers. We dominated the heavy lift space already; we have this extensive MRO capability, but we had no medium-lift or light-lift helicopters, which is typically what you use to carry passengers. The Evergreen acquisition provides us with those assets and that capability. We could have grown this organically, purchased the helicopters, gone out there and started the contracting process and all of that, but it would take three to five years. What we've really done here is we've accelerated that process three to five years, so that now we now have medium-lift helicopters, light-lift helicopters and some fixed-wing operations as well, and we have the capability to carry passengers as well as cargo, in addition to that heavy-lift capability that I mentioned before.

This enables us to expand our service offering, and what's exciting about that is, all of our customers that I have mentioned so far all require heavy-, medium- and light-lift helicopters. Historically, they've had to go to multiple sources to provide those services, and that cost them a lot of money to audit these sources; because it's recurring, there is a lot of maintenance associated with that. They all want fewer providers; they really want a one-stop shop. This new Erickson that I am describing gives us exactly that. It gives them that opportunity to go to a one-stop shop and have a reliable, safe provider, and it simplifies their business.

So that's what's exciting about it. It also gets us into new end markets. Evergreen gives us a great presence with the Department of Defense. Air Amazonia solidifies our...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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