Wells Fargo Capabilities Statement

Wells Fargo Capabilities Statement

Financial Services for Defense & Government Contractors

Wells Fargo Understands the Government Contracting Industry  The federal government is the largest buyer of goods and services in the world  High growth areas within the Government Contracting (“GovCon”) Industry still exist such as Defense, Cyber, Intel, Big Data, C4ISR, Special Ops, Homeland Security, and VA  Steady spending continues to support upgrades to aging military assets, infrastructure, readiness, and technology Industry Strengths

 The Administration’s FY 2020 budget supports increased spending on national security where the majority of contracting dollars come from  The enhanced spending stability improves contract visibility and cash flow predictability, which are attractive to investors and lenders  For small government contractors, the government promotes small business awards, particularly to those with contracting preferences (e.g. SDVOSB, women-owned, 8(a), etc.)  Industry consolidation creates M&A opportunities for both buyers and sellers

 Despite recent federal budget deals, the ongoing existence of continuing resolutions has led to longer term federal budget uncertainties and delayed / prolonged contract awards

 As a result of federal budget reductions from 2010 through 2014, an over-supply of government Industry Challenges

contractors exists, which has led to increased competition and margin pressure and has reinforced the government’s focus on awarding many contracts on a lowest price, technically acceptable basis

 The Administration’s proposed budgets creates uncertainty for some civilian agencies  The competition for contracts has led to constant award protests by the losing bidders  Mid-tier government contractors continue to experience pressure from above and below  Competition for top talent continues 4

Wells Fargo Supports the GovCon Industry in Many Ways Investment Banking

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M&A, Strategic, and Restructure Advisory Services Alternative Debt and Syndicated Debt Arrangements, Equity Placements, Equity Research

Financing

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Corporate revolvers – both public and private companies ABL Lending to fund contract growth and related billed and unbilled receivables Supply chain / inventory financing for government contractors selling products to the government Term debt for capital transactions such as acquisitions, MBO’s, ESOPs, dividends Equipment financing / leasing Term debt for fixed and real asset purchases Placement of institutional debt for leveraged capital transactions

Treasury Management

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Deposit & first-in-class Treasury Services Corporate Credit Cards, Merchant Services Corporate Investment Management and Trust Services International Banking Services Hedging for interest rate exposures, foreign exchange exposures

Workforce Solutions

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Private Banking and Personal Financial Advisory Services Investment Management Services

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Wells Fargo’s Bankers have been working with government contractors for more than 30 years and are dedicated to the industry.

We have a deep understanding of the government contracting industry and business.

We take the time to stay educated on industry trends and are involved in industry organizations to ensure we remain aware of our customers’ challenges.

Experienced Bankers

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Sample GovCon Clients  

Client Profile 

Our clients typically provide goods and/or services directly (Prime Contractors) or indirectly (Sub-toPrime) to the federal government.

Our clients provide acquisition & project management, aerospace products & services, base operations, communications, cybersecurity, data analytics, engineering, healthcare, health IT, information technology, intelligence, linguistics, logistics, military equipment and parts, SETA, security, scientific, technology, and UAV products and services to the federal government Our clients include large corporate, middle market, and small business government contractors located throughout the US

Investment Banking

Financing / Financial Services

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For more information, contact Wells Fargo Government Services Group Eric Pietras (571) 341-3011 eric.pietras@wellsfargo.com Aerospace & Defense Investment Banking Paul Croci (212) 214-8213 paul.croci@wellsfargo.com

Corporate Banking Brian Oosterman (704) 410-1893 Brian.oosterman@wellsfargo.com

Middle Market Investment Banking Lowell Jacobson (301) 280-5816 lowell.jacobson@wellsfargo.com

Commercial Banking Barbara Angel (703) 760-6369 Barbara.angel@wellsfargo.com

Personal Wealth Advisors Jamie Waldren (410) 715-5026 jamie.waldren@wellsfargo.com

Commercial Banking Carol Seitz (571) 730-0994 Carol.seitz@wellsfargo.com

Disclaimer Š 2020 Wells Fargo Capital Finance. All rights reserved. Products and services require credit approval. Wells Fargo Capital Finance is the trade name for certain asset-based lending services, senior secured lending services, accounts receivable and purchase order finance services, and channel finance services of Wells Fargo & Company and its subsidiaries.

This document and any other materials accompanying this document (collectively, the “Materials�) are provided for general informational purposes only. By accepting any Materials, the recipient acknowledges and agrees to keep the Materials confidential and not to distribute the Materials to any other party.

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