VSEC Third Quarter 2020 Conference Call

29 October 2020

Forward-Looking Statements

This document contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause VSE's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this document. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that actual results will not differ materially from these expectations. "Forward-looking" statements, as such term is defined by the Securities Exchange Commission (the "SEC") in its rules, regulations and releases, represent our expectations or beliefs, including, but not limited to, statements concerning our operations, economic performance, financial condition, the impact of widespread health developments, such as the ongoing COVID-19 outbreak, the health and economic impact thereof, and the governmental, commercial, consumer and other responses thereto, growth and acquisition strategies, investments and future operational plans. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "forecast," "seek," "plan," "predict," "project," "could," "estimate," "might," "continue," "seeking" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements, by their nature, involve substantial risks and uncertainties, certain of which are beyond our control, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the uncertainty surrounding the ongoing COVID-19 outbreak and the other factors identified in our reports filed or expected to be filed with the SEC including our Annual Report on Form 10-K for the year ended December 31, 2019. All forward-looking statements made herein are qualified by these cautionary statements and risk factors and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. Readers are cautioned not to place undue reliance on these forward looking-statements, which reflect management's analysis only as of the date hereof. We undertake no obligation to update or revise forward- looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this document also contains Non-GAAP financial measures. We consider Adjusted Net Income, Adjusted EPS (Diluted), EBITDA, Adjusted EBITDA, net leverage ratio, trailing-twelve month Adjusted EBITDA and free cash flow as non-GAAP financial measures and important indicators of performance and useful metrics for management and investors to evaluate our business's ongoing operating performance on a consistent basis across reporting periods. Adjusted Net Income represents Net Income adjusted for discrete items. Adjusted EPS (Diluted) is computed by dividing net income, adjusted for the discrete items and the related tax impacts, by the diluted weighted average number of common shares outstanding. EBITDA represents net income before interest expense, income taxes, amortization of intangible assets and depreciation and other amortization. Adjusted EBITDA represents EBITDA adjusted for discrete items, and free cash flow represents operating cash flow less capital expenditures. Net leverage ratio is calculated as net debt (total principal debt less cash) divided by trailing twelve month Adjusted EBITDA. The reasons why we believe these measures provide useful information to investors and a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these Non-GAAP measures are included in the supplemental schedules attached.

2

BUSINESS UPDATE

Focused on business improvement, new business development and long-term strategy execution

Business Development

  • Aviation: $100 million, 5-year exclusive distribution agreement with major landing gear components manufacturer
  • Federal & Defense: Contract bidding activity +46% y/y YTD 2020; won recompetes YTD 2020, in addition to new contract awards
  • Fleet: Non-USPS revenue increased +54% y/y in 3Q20 and +48% on a TTM basis

ORGANIC GROWTH

Product Line Expansion

  • Aviation: Launched Landing Gear Initiative:
    1. Comprehensive landing gear solution suite for global airline and MRO customers;
    2. Parts distribution of proprietary and specialty products;
    3. Services include: gear sales, exchanges, repair management, kitting, 24/7 AOG service

Change Management

  • Incoming CFO: Announced Steve Griffin as Chief Financial Officer successor (Q4 2020)
  • New Segment President: Appointed Ben Thomas as President of Aviation segment
  • Aviation MRO system integration/migration and corporate standardization, system integrations and entity consolidations in process
  • COVID-relatedcost reductions complete (announced April 2020)

INORGANIC GROWTH

Acquisition Focus

  • Launched initiative seeking accretive, net leverage-neutralacquisition targets
  • Targeting "bolt-on" integration of complementary assets into existing business segment structure
  • Current focus on aviation and federal services, with concentration on capabilities and/or customer expansion

3

3Q20 CONSOLIDATED PERFORMANCE

Generated positive net income and free cash flow, while reducing debt outstanding

Sequential Revenue Growth

Sustained Profitability

Positive Free Cash Flow

Targeted Debt Reduction

  • $165.5 million (16.5% y/y); excluding Prime Turbines and CT Aerospace (12.0% y/y)
  • Q/Q revenue growth across all three segments in 3Q20, excluding non-recurring items
  • Commercial customer revenue of $49 million (22% y/y); Government customer revenue of $116.5 million (14% y/y)
  • GAAP net income of $8.1 million, or $0.73 per diluted share
  • Adjusted net income of $6.8 million, or $0.62, per diluted share
  • Operating cash flow of $12.4 million (7.4% y/y); free cash flow of $11.3 million (6.3% y/y); TTM 3Q20 free cash flow of $30.9 million
  • Total adjusted EBITDA of $18.0 million (26.5% y/y); Aviation: $2.4 (75.9% y/y); Fleet: $9.0 million
    (15.0% y/y); FDS: $7.4 million, +40.6% y/y
  • Total cash and availability +3.3% q/q to $190.0 million
  • Reduced total debt outstanding by $10.4 million q/q in 3Q20
  • Net debt to TTM adjusted EBITDA as of 9/30/2020 was 3.1x

4

GAAP FINANCIAL SUMMARY

3Q20 and TTM(1) - Y/Y comparisons

Total Revenue

Operating Income (Loss)(2)

Y/Y revenue growth in Fleet

($MM)

($MM)

offset by declines in Aviation

$738.4

$706.9

and Federal & Defense

$58.5

Q/Q growth across all

$198.3

$165.5

$17.2

$16.9

segments, less non-recurring

$14.2

items: Aviation +16.1%, Fleet

+9.5%, Federal & Defense +1%

3Q19

3Q20

TTM 3Q19

TTM 3Q20

3Q19

3Q20

TTM 3Q19

TTM 3Q20

TTM 3Q20 results include $33.7

Net Income (Loss)(2)

Diluted Earnings (Loss) Per Share(2)

million non-cash impairment

($MM)

($ Per Share)

taken in Aviation segment in

2Q20

$36.3

$3.29

Maintained profitability during a

$10.5

$8.1

$0.95

$0.73

period of pandemic-related

disruption

($1.3)

($0.11)

3Q19

3Q20

TTM 3Q19 TTM 3Q20

3Q19

3Q20

TTM 3Q19 TTM 3Q20

  1. TTM is defined as the trailing twelve (12) month period ended September 30, 2020 and September 30, 2019, respectively.
  2. Includes $33.7 million non-cash impairment within the Aviation segment during the second quarter 2020.

5

NON-GAAP FINANCIAL SUMMARY

3Q20 and TTM - Y/Y comparisons

Adjusted net income (38%) y/y

Adjusted Net Income

Adjusted Diluted Earnings Per Share

($MM)

($ Per Share)

in 3Q20; (9%) on a TTM 3Q20

basis

$38.3

$34.8

$3.48

$3.15

Adjusted EBITDA (27%) y/y in

$10.9

$6.8

$0.99

$0.62

3Q20 and (8%) on a TTM 3Q20

basis

3Q19

3Q20

TTM 3Q19

TTM 3Q20

3Q19

3Q20

TTM 3Q19

TTM 3Q20

Adjusted EBITDA margin growth

Adjusted EBITDA

Adjusted EBITDA Margin

in Federal & Defense offset by

($MM)

(%)

margin contraction in both

$87.7

Aviation and Fleet

$81.0

12.3%

11.9%

11.5%

3Q20 adjusted net income

10.9%

results exclude $1.3 million of

$24.5

$18.0

non-recurring tax adjusted

impact from the 1st Choice

Aerospace earnout

3Q19

3Q20

TTM 3Q19

TTM 3Q20

3Q19

3Q20

TTM 3Q19

TTM 3Q20

6

CONSOLIDATED PERFORMANCE BRIDGE

3Q19 vs. 3Q20 - Y/Y comparisons

  • Aviation: Y/Y revenue decline attributable to the adverse impact of the COVID-19 pandemic on commercial air traffic, resulting in lower customer activity
  • Federal & Defense: Y/Y revenue decline attributable to previously disclosed contract expiration with DoD customer in 1Q20
  • Fleet: Y/Y revenue growth supported by higher sales from commercial fleet, eCommerce fulfillment and completion of non-recurring PPE order

Total Revenue Bridge

($MM)

$198.3

$8.4$165.5

($23.0)

($18.2)

Total Adjusted EBITDA Bridge

($MM)

$24.5

$0.5

$2.1

$18.0

($7.5)($1.6)

7

AVIATION

Revenue declined due to COVID impact on air travel, but increased +16% q/q

  • Strategic Focus: Build scalable foundation for growth; target share gains; new product and service introductions
  • Sequential Growth: 3Q20 revenue, less divestitures, increased 16% q/q due to share gains in distribution business & recovery in B&GA
  • Business Development: Announced $20 million distribution agreement w/ Honeywell in July; $100 million landing gear distribution agreement with major OEM in October
  • New Leadership: Ben Thomas named new President of Aviation segment in October 2020

Aviation Segment Revenue

Aviation Segment Operating Income (Loss)

($MM)

($MM)

$206.4

$187.4 $169.9

$6.6

$6.0

$18.6

$17.8

$163.6

$1.6

$1.6

($31.6)

$0.4

$59.2 $48.9

$36.2 $36.2

3Q19

3Q20

TTM 3Q19

TTM 3Q20

3Q19

3Q20

TTM 3Q19

TTM 3Q20

Aviation Segment Revenue, as Reported

Aviation Operating Income, as Reported

Aviation Segment Revenue, Less Prime Turbines & CT Aerospace

Aviation Op. Income, Less Prime Turbines, CT Aerospace & Impairment

Aviation Segment Adjusted EBITDA

Aviation Segment Adjusted EBITDA Margin

($MM)

(%)

$30.6 $28.0

16.7%

18.2%

14.8%

17.1%

$9.9

$8.9

$17.1 $14.5

6.6% 6.6%

9.1% 8.5%

$2.4

$2.4

3Q19

3Q20

TTM 3Q19

TTM 3Q20

3Q19

3Q20

TTM 3Q19

TTM 3Q20

Aviation Adjusted EBITDA, as Reported

Aviation Adjusted EBITDA Margin, as Reported

Aviation Adjusted EBITDA, Less Prime Turbines & CT Aerospace

Aviation Adjusted EBITDA Margin, Less Prime Turbines & CT Aerospace

8

FLEET

107% y/y growth in commercial (eCommerce fulfillment) offset lower USPS revenue in Q3

  • Strategic Focus: Commercial fleet and e-commercefulfillment market expansion opportunity
  • Shifting Sales Mix: Increased mix of lower margin commercial revenue
  • Non-USPSRevenue Growth: Increased ~54% y/y, supported by commercial fleet and other government customers
  • Rebranding Initiative: Wheeler Bros. rebranded to Wheeler Fleet Solutions - repositioned for commercial fleet market

Fleet Segment Revenue

Fleet Segment Operating Income

($MM)(1)

($MM)(1)

$213.7

$213.7

$241.8

$215.2

$29.5

$29.5

$27.9

$27.9

$55.4

$55.4

$63.7

$56.6

$7.8

$7.8

$6.6

$6.6

3Q19

3Q20

TTM 3Q19

TTM 3Q20

3Q19

3Q20

TTM 3Q19

TTM 3Q20

Fleet Segment Revenue, as Reported

Fleet Segment Op Income, as Reported

Fleet Segment Revenue, less non-recurring PPE order impact

Fleet Segment Op Income, less non-recurring PPE order impact

Fleet Segment Adjusted EBITDA

Fleet Segment Adjusted EBITDA Margin

($MM)(1)

$40.7

$40.7

$38.4

$38.4

(%)(1)

19.1%

19.1%

14.1%

15.9%

19.0%

19.0%

15.9%

17.8%

$10.6

$10.6

$9.0

$9.0

3Q19

3Q20

TTM 3Q19

TTM 3Q20

3Q19

3Q20

TTM 3Q19

TTM 3Q20

Fleet Segment Adjusted EBITDA, as Reported

Fleet Segment Adjusted EBITDA Margin, as Reported

Fleet Segment Adjusted EBITDA, less non-recurring PPE order impact

Fleet Segment Adjusted EBITDA Margin, less non-recurring PPE order impact

  1. Excludes non-recurring impact of PPE equipment order from a government customer; excludes revenue and corporate allocation impact.

9

FEDERAL & DEFENSE

Y/Y improvement in both margin realization and Adjusted EBITDA in 3Q20

Federal & Defense Segment Revenue

Federal & Defense Segment Operating Income

($MM)

$318.2

($MM)

$277.6

$23.6

Strategic Focus: Expand market

focus; increase bidding activity;

$16.5

grow funded backlog; build

pipeline of new contract awards

and successful recompetes

$83.8

$65.6

$4.5

$6.7

Increased Bidding Activity: Nine

3Q19

3Q20

TTM 3Q19

TTM 3Q20

3Q19

3Q20

TTM 3Q19

TTM 3Q20

months ended 2020, total

contracts bids increased 46%

Federal & Defense Segment Adjusted EBITDA

Federal & Defense Segment Adjusted EBITDA Margin

y/y

($MM)

(%)

11.3%

$26.5

9.5%

$19.9

6.3%

6.3%

Margin Expansion: Favorable

contract mix supported 500 bps

expansion in adjusted EBITDA

$5.3

$7.4

margin

3Q19

3Q20

TTM 3Q19

TTM 3Q20

3Q19

3Q20

TTM 3Q19

TTM 3Q20

10

MAINTAINING BALANCE SHEET OPTIONALITY

Second consecutive quarter of debt reduction; ~$190 million of excess availability on lending facilities

Free Cash Flow

Total Net Debt

Strategic Focus: Long term

($ MM)

($ MM)

target to reduce net leverage to

$35.5

below 3x; ROIC-driven capital

$30.9

$267.4

allocation strategy

$249.4

Free Cash Flow: Despite lower

$12.0

$11.3

revenue base, free cash flow

declined only marginally on a

y/y basis in 3Q20

Debt Reduction: Reduced total

3Q19

3Q20

TTM 3Q19

TTM 3Q20

3Q19

3Q20

outstanding debt by $10.4

million in 3Q20, driven by

Ratio of Net Debt to TTM

Unused Commitments on Term Loan

positive free cash flow

Adjusted EBITDA(1)

and Revolving Credit Facility ($ MM)

generation

  • Strong liquidity profile: Total availability on lending facilities increased $87 million y/y to approximately $190 million

3.1 x

3.1 x

2.5 x

$190.0

$103.0

3Q19

3Q20

Long-Term Target

3Q19

3Q20

  1. Net Debt is defined as total debt less cash and cash equivalents; TTM Adjusted EBITDA is defined as Adjusted EBITDA for the most recent twelve (12) calendar months.

11

APPENDIX

12

GAAP TO NON-GAAP RECONCILIATIONS

Adjusted Net Income and Adjusted EPS (Diluted)

(in thousands)

Three Months Ended September 30,

2020

2019

% Change

Net Income

$8,108

$10,527

(23)%

Adjustments to Net Income:

Acquisition and CEO transition costs

-

518

Earn-out adjustment

(1,695)

-

Tax impact of adjusted items (1)

423

(126)

Adjusted Net Income

$6,836

$10,919

(37)%

Diluted weighted average shares

11,100

11,060

Adjusted EPS (Diluted)

$0.62

$0.99

(37)%

  1. Calculation uses an estimated statutory tax rate on non-GAAP tax deductible adjustments.

13

GAAP TO NON-GAAP RECONCILIATIONS

EBITDA and Adjusted EBITDA

(in thousands)

Three Months Ended September 30,

2020

2019

% Change

Net Income

$8,108

$10,527

(23)%

Interest expense

3,530

3,706

(5)%

Income taxes

2,547

2,982

(15)%

Amortization of intangible assets

4,158

5,014

(17)%

Depreciation and other amortization

1,351

1,739

(22)%

EBITDA

$19,694

$23,968

(18)%

Acquisition and CEO transition costs

-

518

Earn-out adjustment

(1,695)

-

Adjusted EBITDA

$17,999

$24,486

(27)%

14

GAAP TO NON-GAAP RECONCILIATIONS

Segment EBITDA and Adjusted EBITDA (in thousands)

Aviation:

Operating Income

Depreciation and Amortization

EBITDA

Earn-out adjustment

Adjusted EBITDA

Fleet:

Operating Income

Depreciation and Amortization

EBITDA and Adjusted EBITDA

Federal & Defense:

Operating Income

Depreciation and Amortization

EBITDA and Adjusted EBITDA

Three Months Ended September 30,

2020

2019

% Change

$1,586

$6,568

(76)%

2,493

3,314

(25)%

$4,079

$9,882

(59)%

(1,695)

-

$2,384

$9,882

(76)%

$6,589

$7,843

(16)%

2,378

2,711

(12)%

$8,967

$10,554

(15)%

$6,746

$4,524

49%

638

728

(12)%

$7,384

$5,252

41%

15

GAAP TO NON-GAAP RECONCILIATIONS

Net Leverage Ratio

(in thousands)

Principal amount of debt Less: Debt issuance costs Less: Cash and cash equivalents

Net Debt

TTM Adjusted EBITDA(1)

Net Leverage Ratio

September 30,

2020 2019

$252,685 $270,266

(2,664) (1,735)

(551) (1,095)

$249,470 $267,436

$81,036 $87,690

3.1x 3.1x

  1. TTM Adjusted EBITDA is defined as Adjusted EBITDA for the most recent twelve (12) month period ending September 30, 2020 and September 30, 2019, respectively.

16

CORPORATE OVERVIEW

17

CORPORATE PROFILE

Pure-Play Aftermarket & MRO Services Company

Providing

2019

2019

Aftermarket

Revenue

Adj. EBITDA

Services

$750+M

$90+M

since 1959

Public Company

Active

Worldwide

Employees

NASDAQ:

Customers

Facilities

~1,900

VSEC

6,200+

55+

18

DIVERSIFIED REVENUE MIX

AVIATION

Distribution & MRO Services

  • Aftermarket repair and distribution services to commercial, cargo, general aviation, military/defense and rotorcraft customers globally
  • Supply chain and parts distribution
  • Maintenance, repair and overhaul (MRO) services
  • Component and engine accessory maintenance
  • Rotable exchanges and sales

FLEET

Distribution & Fleet Services

  • Aftermarket support, parts supply, inventory management, e-commerce fulfillment for medium- and heavy-duty truck/fleet owners
  • Customized fleet logistics
  • Parts distribution and warehousing
  • Just-in-Timesupply chain management
  • Kitting; alternative product sourcing
  • Engineering and technical support

FEDERAL & DEFENSE

Logistics & Sustainment Services

  • Aftermarket maintenance, repair and overhaul (MRO) and logistics for military vehicles, ships and aircraft for federal and defense agencies
  • Base operations support (BOS)
  • Procurement and supply chain management
  • Aircraft, vehicle and marine sustainment services
  • IT services and energy consulting

100% Aftermarket Services

19

STRATEGIC OVERVIEW

Our Unique Value Proposition

Pure-Play Aftermarket

Independent, focused parts and services provider

Customer- & Supplier-Centric

Ability to offer bespoke offerings to support customers and suppliers

Experience

60+ year history of proven performance, aftermarket service excellence

Technical Expertise

Team of industry experts with technical and transportation asset repair experience

Agile

Lean operating model, empowered business units

Transportation Asset Experience

Support for land, sea and air transportation assets from new-generation to legacy and end-of-life assets

20

CORPORATE LEADERSHIP TEAM

John Cuomo

President and CEO

  • 20+ years of aerospace distribution and services market industry experience
  • Appointed Chief Executive Officer and President of VSE Corporation April 2019
  • Previously served as Vice President and General Manager of Boeing Distribution Services

Tom Loftus

Chief Financial Officer

  • 40+ years of aerospace, federal/ defense and supply chain distribution experience
  • CFO of VSE Corporation since 2002; retiring Dec. 31, 2020
  • Manages the financial and accounting operations for the consolidated corporation

Elizabeth Huggins

VP of Strategy,

Chief of Staff

  • 17+ years of experience in business development, integration and aerospace consulting
  • Joined VSE as Chief of Staff and Corporate Vice President of Strategy in 2019
  • Leads strategic planning, growth and business development initiatives

Krista Stafford

Chief Human Resources

Officer

  • 15+ years of experience in Human Resources, Learning and Organizational Development
  • Joined VSE as the Chief Human Resources Officer January 2020
  • Previously served as Vice President, Human Resources at Boeing Distribution Services

Robert Moore

President,

Federal & Defense

Services

  • 25+ years of experience in the aerospace/ defense industry
  • Joined VSE as President of Federal & Defense Services in 2019
  • Extensive leadership experience with DoD and Federal agencies providing Engineering, Logistics and Sustainment solutions

Ben Thomas

President,

Aviation

  • 11+ years experience in the aerospace aftermarket distribution & services sectors
  • Appointed President of VSE Aviation October 2020
  • Previously managed aftermarket growth strategies for Boeing Global Services and KLX Aerospace Solutions

Chad Wheeler

President,

Wheeler Fleet Solutions

  • 30+ years of supply chain industry experience
  • President of Fleet segment/Wheeler since 2013
  • Executive management of operations, government contract administration, supply chain initiatives and business development

21

INVESTMENT OPPORTUNITY

Diversified Aftermarket/MRO Play with Stable End-Market Exposure

Experience

Leadership

Balance

60+ years of aftermarket experience

CEO from KLX-Boeing, public-

Stable, balanced customer mix;

and service excellence supporting

company experienced growth leader;

~60% government revenue

80% recompete success rate on

Chairman is former Commander-in-

balanced with ~40% higher-margin

multi-year government contracts

Chief, NORAD & U.S. Northern

potential commercial customers

Command

Agile

Focused

Well-Capitalized

Entrepreneurial and decentralized

Shift toward leveraging core

Efficient capital structure and

organization aligned to support

competencies to support customer,

liquidity to support growth;

customers, suppliers and

product and service organic growth

targeting net leverage below 3x

shareholders

opportunities

22

GROWTH STRATEGY

23

STRATEGIC OVERVIEW

Roadmap for Growth

Organic Growth Factors

  • Increase market penetration of new/existing accounts
  • Geographic expansion outside North America
  • Targeted growth of new product additions
  • Expand repair, logistic and capability service offering
  • Focus on select, higher margin offerings

Inorganic Growth Requirements

Focused, disciplined acquisition strategy targeting:

  • Product, customer, service or geographic expansion
  • Full integration into existing business segment
  • Financially accretive approach and process
  • Net leverage neutral acquisitions

24

AVIATION SEGMENT OVERVIEW

AVIATION

Providing aftermarket MRO and distribution services to commercial, cargo, business and general aviation, military/defense and rotorcraft customers globally.

Offerings include:

  1. Parts distribution and supply chain services
  2. Component and engine accessory maintenance
  3. Maintenance, repair and overhaul (MRO) services
  4. Rotable exchanges and sales

Key Customers

25

AVIATION SEGMENT

  • MRO CAPABILITY DEVELOPMENT

New MRO offerings to support broadest range of aircraft components and engine accessory repair; specifically in fuel and hydraulics, engine components and accessories, interiors, auxiliary power units (APU), avionics

  • DISTRIBUTION PRODUCT EXPANSION

New proprietary OEM product additions to support aftermarket airframe, engine and interior platforms

  • INTERNATIONAL EXPANSION

Expansion in core aerospace markets for MRO and distribution

  • NEW CUSTOMERS

Market share gain for existing MRO and distribution capabilities with new Commercial and B&GA customers, and new market expansion into aerospace defense markets

GROWTH

FACTORS

26

FLEET SEGMENT OVERVIEW

FLEET (formerly Supply Chain Management Group)

Providing parts, sourcing, inventory management, e-commerce fulfillment, logistics, supply chain management and other services to federal and commercial aftermarket truck and fleet owners.

Offerings include:

  1. High-dutycycle, medium- and heavy-duty vehicle parts distribution
  2. Just-in-Timesupply chain management
  3. Customized fleet logistics and IT solutions
  4. Technical support, engineering, sourcing, warehousing and kitting

Key Customers

27

FLEET SEGMENT

  • CUSTOMER DIVERSIFICATION

Expansion of commercial customer base to support new medium to large, high-duty cycle fleet customers

  • SHARE OF WALLET EXPANSION

Product expansion to existing Just-in-Time clients

  • MAINTAIN THE CORE

Continue to support USPS fleet and DoD vehicle parts

  • PRODUCT EXPANSION

Addition of both new product offerings and growth in private label product

  • GEOGRAPHIC EXPANSION

Geographic expansion beyond Northeast United States

GROWTH

FACTORS

28

FEDERAL & DEFENSE SEGMENT OVERVIEW

FEDERAL & DEFENSE (formerly Federal Services Group)

Providing aftermarket maintenance, repair and overhaul (MRO) and logistics services to improve operational readiness and the useful life of military vehicles, marine vessels and aircraft for the U.S. armed forces, federal agencies and international defense customers.

Offerings include:

  1. Equipment maintenance, repair and overhaul services
  2. Base operations support
  3. Transportation and freight services
  4. Logistics, procurement and supply chain support
  5. Engineering and technical solutions
  6. IT and Energy consulting services

Key Customers

29

FEDERAL & DEFENSE SEGMENT

  • INVESTMENT

Expand core business development and contracting solutions to increase share of budget with current and new customers

  • LEVERAGE CORE COMPETENCY

Expand base operations support for U.S. Air Force, U.S. Army and U.S Navy

  • MARKET EXPANSION

Increase military aviation services with product/supply chain and repair services; transition toward higher mix of fixed-price contracts

  • CAPABILITY DEVELOPMENT

Broaden DoD logistics/supply chain offering to support market demand

  • INTERNATIONAL GROWTH

Utilize success in foreign markets to support foreign military sales opportunities

  • CONSULTING EXPANSION

IT and Energy consulting services growth

GROWTH

FACTORS

30

AVIATION SEGMENT

  • INDEPENDENCE

Niche single-source aftermarket focus with only repair and distribution capabilities

  • AGILITY

Organization structure provides rapid response, reliable support and bespoke support for customers and OEM supplier partners

  • TECHNICAL EXPERTISE

Distribution and MRO product knowledge to support OEM product lines with application focus and repair with in-house testing and technical expertise

  • INVENTORY & PLANNING

Right-sized inventory forecasting model to capture unplanned aftermarket demand for parts supply, rotables and repair

WHY WE

WIN

31

FLEET SEGMENT

  • UNIQUE MARKET OFFERING

Stocking Distributor + Technology Solutions + Consigned Parts Provider

  • NICHE CUSTOMER FOCUS

Medium to large, high-duty cycle, delivery and vocational fleets; 500,000 stocking SKUs and 700+ manufacturers represented

  • PROPRIETARY INVENTORY MANAGEMENT

Just-in-Time inventory and fleet management software and systems

  • TECHNICAL CAPABILITIES

Reverse engineering, design analysis, rapid prototyping, short-run production and in-house testing

  • PRIVATE LABEL PARTS

Customized engineered solutions, alternatives for out of service product, and quality sourced at tier one level

WHY WE

WIN

32

FEDERAL & DEFENSE SEGMENT

  • PAST PERFORMANCE

60+ year history of program execution and past performance across all land, sea and air transportation platforms

  • INDUSTRY EXPERTISE

Technical, subject matter-experienced team with extensive repair knowledge to support difficult-to-maintain assets

  • LEGACY ASSET SPECIALIST

Product sourcing, supply chain and logistics for legacy and end of lifecycle assets

  • EXTENSIVE CAPBILITIES

Diverse capability offering to support programs from base operations support to supply chain and repair, IT and consulting

  • CAPABLITIY CUSTOMIZATION

Partnering with customers for tailor-made solutions aligned with their specific mission needs

WHY WE

WIN

33

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VSE Corporation published this content on 29 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 10:04:05 UTC