2016 ANNUAL REPORT - Moog Inc.

1 M 2016 ANNUAL REPORT . FINANCIAL PERFORMANCE. SALES (Dollars in millions) RECENT FINANCIAL PERFORMANCE. $3,000 (Dollars and shares in millions, except per share data). $ 2,648. $ 2,610 $ 2,526. $ 2,470 $ 2,412. $2,500. $ 2,331. $ 2,114. $ 2,000. $ 1,903. $ 1,849. 2016 2015. $ 1,558. $ 1,500. $ 1,306. $ 1,000 NET SALES $2,412 $2,526. $ 500. $0. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 . NET EARNINGS $127 $132. Fiscal Year DILUTED EARNINGS PER SHARE (In dollars) DILUTED EARNINGS. $ $ $ $ PER SHARE. $ $ $ $ $ $ $ $ $ EQUITY MARKET. $ $2,136 $1,997. $ $ $ CAPITALIZATION*. $ $ $ $ $ AVERAGE SHARES. $ $ OUTSTANDING. $ $ *Measured as of fiscal year end $ $ $ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 . Fiscal Year REVENUE BY SEGMENT REVENUE BY MARKET. Aircraft Controls Defense 44% 34%. Space and Space Defense Commercial 7%. Components 16% Aircraft 19% 24%. Industrial Industrial 21%. Systems Medical Energy 21% 7% 7%. GEOGRAPHIC DISTRIBUTION MARKET DISTRIBUTION.

2 United States Industrial and Military 56% Commercial and Government 63% Funded 30%. International 44%. Foreign Government 7%. O P E R AT I N G S E G M E N T S. Commercial Aircraft OEM Defense $ M $ M. Commercial Business Aircraft Jets Aftermarket $ M. $ M. Military Military Aircraft Space Aircraft Aftermarket $ M. OEM $ M. $ M. FY 2016 SALES FY 2016 SALES. $1, M $ M. AIRCRAFT CONTROLS SPACE AND DEFENSE. State-of-the-art technology in flight controls, engine controls, door drive controls, active Multi-tier provider capable of components, systems and prime level integration vibration controls and engineered components Thrust vector control actuation systems, avionics, propulsion controls and structures for Complete flight control system design and integration capability missiles and launch vehicles World-class manufacturing facilities and skilled, experienced, team-based workforce Liquid rocket engines, tanks, chemical and electric propulsion systems, subsystems Focused, highly-responsive global aftermarket support organization and components for spacecraft and launch vehicles Satellite integrated avionics, solar array drives, antenna pointing mechanisms and Military Aircraft.

3 Vibration isolation systems F-35, F-15, F/A-18E/F, EA-18G, F-16, KC-46, A400M, Korea T-50, C-27J, C-295, Fin actuation systems, divert and attitude control components for missiles and CN-235, Eurofighter-Typhoon, JAS 39, India LCA, Japan XC-2, XP-1, Hawk AJT, M346 interceptors Commercial Airplanes: Weapon Stores Management Systems (SMS) for the deployment of missiles, guns and rockets Boeing 737, 747, 767, 777, 787. Motion control systems for turreted weapon systems, ammunition handling and Airbus A320, A330, A350, A380. expeditionary radar deployment Embraer E-Jets E2. EM and EH actuation products for naval ships and submarines COMAC C919. Business Jets: Space Applications: Bombardier Challenger 300, 604, 605 and Global Express, Cessna Citation X, LS-1300, Eurostar, Spacebus, LM A2100, DS-1000/2000, GEOStar, James Webb Gulfstream G280, G350, G400, G450, G500, G550, G600, G650 Space Telescope, GPS III, Galileo, ORBCOMM, NICER, SkySat, OSIRIS-REx Trident D-5, Minuteman III, Antares , Atlas V, Delta IV, Ariane 5, Vega, Minotaur, Falcon 9, Military and Commercial Helicopters: NASA's Space Launch System and Orion, CST-100 Commercial Crew Vehicle H-60/S-70, H-53, EH-101, S-76, S-92, V-22, V-280, AH-64, A109, A129, AB139, AW159, AW609, Future Lynx, B525 Defense Applications: HELLFIRE , TOW, Tomahawk, EKV, MALD.

4 Customer Support: LAV-25, LAV-AT, CV90 family, FLW 100/200 RWS, AC-130 Stinger II, G/ATOR Radar All current production programs above plus legacy programs including A-7, A-10, A300, A340, AH-64, AMX, B-1B, B-2, B-52, BAE-146, C-5, C-130, C-141, CH-46, Virginia-class submarines, USS Gerald R. Ford aircraft carrier CH-47, CH-53, DC-8, DC-9, DC-10, E-2C, EA-6B, F-2, F-4, F-100, F/A-18C/D, F/A-22, Segment Competitors: Hawk, KC-10, KC-135, MD-11, MD-80, MD-90, P-3, T-45, Tornado, U-2, VC-10, 757 Aeroflex, Airbus, ATA Engineering, BAE, Chess Dynamics, Cohu, Curtiss-Wright, ESW, Segment Competitors: Flowserve Limitorque, Honeywell, Marotta, RUAG, Lord Corp., Pelco, SABCA, Sargent Aerospace & Defense, SEAKR, Southwest Research Institute, UTC, Vacco, Valcor, Curtiss-Wright, Liebherr, Nabtesco, Parker Hannifin, UTC (Goodrich, Hamilton Videotec, ValveTech and Woodward Sundstrand) and Woodward VA-Class Submarine, F-35C Lightning II, USS John Warner (SSN 785). A350-1000 First Flight F/A-18E/F Super Hornets NASA OSIRIS-REx Spacecraft Courtesy of Navy /.

5 Courtesy of Airbus / S. Ramadier Courtesy of Navy / Lt. Cmdr. Darin Russell Courtesy of Univ. of Arizona / Heather Roper C. Oxley, Huntington Ingalls Ind. Industrial Automation Medical $ M $ M. Industrial Aircraft Simulation $ M. and Test $ M. Energy $ M $ M Energy Space and $ M Defense $ M. FY 2016 SALES FY 2016 SALES. $ M $ M. INDUSTRIAL SYSTEMS COMPONENTS. World-class motion control products to enable customers to build machines that offer Innovative solution provider of sensing, control, power and data components and systems outstanding value Market leader in slip rings and fractional horsepower brushless DC motors, IV infusion and High performance motion control solutions delivered with deep expertise to customers in enteral medical pumps test, simulation and wind energy markets Multi-component and system level engineering and applications support Flexible, comprehensive and timely services, resulting in excellent value Medical: Industrial Automation Applications.

6 Ambulatory infusion pumps and enteral nutrition feeding pumps Plastic injection and blow molding machine products hydraulic and electric designs to Motors and blowers for sleep disorder devices and portable oxygen therapy improve speed, performance and energy efficiency Slip rings and fiber optic rotary joints for medical imaging Steel mill servo control products for improving dimensional accuracy and surface finishes OEM air detection sensors and surgical handpieces Metal forming machinery and press products that improve machine performance and productivity Military and Commercial Aircraft: Multi-component and system level solutions for electro-optics/infrared sensors Energy Applications: Aircraft servos and utility actuators for UAVs Wind turbine pitch systems and blade sensing systems for efficient operation, increased safety and turbine life extension Communication networking Ethernet switches, media converters, optical transceivers Gas and steam turbine solutions for precise control and greater safety of fuel metering Space and Defense Controls: and guide vane positioning Slip rings, motors and resolvers for solar array drive assemblies, armored vehicle and Oil and gas exploration and production solutions for downhole drilling, topside and subsea remote weapon station turrets equipment Industrial: Simulation and Test Applications: Slip rings and motors for robotics and industrial automation applications Flight simulation motion systems, control loading systems and control cabinets for realistic Air moving solutions for thermal management and airflow problems pilot training Energy and Marine.

7 Automotive turnkey testing systems for component performance testing Wind turbine slip rings Aerospace turnkey testing systems for iron bird, structural and components Remotely Operated Vehicles (ROVSs) slip rings, multiplexers and media converters Segment Competitors: Subsea imaging acoustic sensors, sonars and video cameras Allen-Bradley, Bosch Rexroth, Danaher, DEIF, Wind Power, KEB, MTS Systems Corp., FPS swivels with slip rings, hydraulic swivels and optical rotary joints Parker Hannifin, Siemens and SSB Wind Systems Segment Competitors: Allied Motion Technologies, Ametek, Cobham, Kollmorgen, Medtronic, Pfizer, Schleifring, Smiths Medical, Stemmann, Whippany Actuation Systems and Woodward Steel Mill Processing Flight Simulator Motion Base Systems Pharmaceutical Processing Automation Courtesy of Shutterstock / Jordache Courtesy of CAE Moog IV and Enteral Medical Pumps Courtesy of Alamy / JG Photography CHAIRMAN'S LETTER. To Our Shareholders, Employees and Friends, I'd like to open my ANNUAL letter as I do each year by paying tribute to the 10,000+ Moog employees around the world for their dedication and commitment.

8 Their hard work every day makes all the great things we achieve possible. Before I discuss the overall financial performance in 2016 , I'd like to reflect on some key activities throughout the year. First, it was another year of great technical achievements for Moog products in many different applications. Examples of our technology at work included: The successful first flight of the new Embraer E-2 jet using all Moog flight control hardware. The breathtaking performance of the Short Takeoff and Vertical Landing (STOVL) F-35B at the Farnborough International Airshow. The entry of NASA's Juno spacecraft into orbit around Jupiter, after a five-year journey from earth. The successful beta test of our new wind pitch control products with lead customers. Second, it was a year of heavy R&D spend as we continued to invest in the future of the company. In 2016 , we won several new military aircraft development contracts that will position us well for long-term growth in our defense markets.

9 Third, we acquired a controlling interest in an additive manufacturing company. We believe additive manufacturing has the potential to transform many of our markets and we want to be at the forefront of this emerging manufacturing revolution. Finally, we completed the strategic review of our Medical Devices segment. Based on the excellent performance of this business over the last few years, we decided to keep the business and integrate it into our Components segment. Over the years, we've enjoyed the benefit of serving multiple markets with our portfolio of products. This market diversification has been the bedrock of consistent sales and earnings growth despite the vagaries of one or other markets. Unfortunately, in 2016 , our diversification was not sufficient to deliver on our financial goals, as we experienced challenges in five of our six key markets. On the positive side, commercial aircraft saw continued sales growth in new programs, including the Airbus A350 and the Boeing 787.

10 However, defense continued to be adversely impacted by the Budget Control Act in the and constrained spending by many of our international allies. Our sales to industrial customers were also down. These customers are largely dependent on capital goods spending and, with tepid GDP growth around the globe, our customers' business remained soft in 2016 . Our energy business continued to struggle as offshore exploration activity slowed further. Sales into two other markets, space and medical, were also lower in 2016 , with space going through the low-point of a normal cycle and medical working through a model change with our major customer for sleep apnea equipment. Altogether, sales for the year were down 4%. In the face of these challenges, our operations delivered respectable performance resulting in an increase in earnings per share and strong cash flow. Now a brief review of each of our operating segments. 2016 was a challenging year for our Aircraft segment with full-year sales down 2%.