Spirit Aerosystems Holdings Inc
Spirit Aerosystems — 2008 Lehman Brothers Industrial Select Conference
21 slides from Spirit Aerosystems's conference presentation, Feb 13, 2008
Slide 1: Spirit AeroSystems 2008 Lehman Brothers Industrial Select Conference
Spirit AeroSystems, Inc. 2008 Lehman Brothers Industrial Select Conference February 13, 2008 Jeff Turner President and CEO
Slide 2: Forward-Looking Information
Forward-Looking Information Cautionary Statement Regarding Forward-Looking Statements: This presentation includes forward-looking statements that reflect the plans and expectations of Spirit AeroSystems Holdings, Inc. To the extent that statements in this presentation do not relate to historical or
Slide 3: Agenda
Agenda Business Overview 2007 Summary Focus Items Market Update Core Business and Growth Opportunities
Slide 4: Spirit Overview
Diversification From Boeing Heritage - - New programs - - Active Pipeline - - M&A #1 Market Share Globally Design/Manufacture Fuselages Propulsion Systems Wing Systems Tier 1 Commercial Aerospace Supplier - - Boeing 90% - - Airbus 10% Strong Core Business... Excellent Market Position Significant Sca
Slide 5: Most Complete Product Offering Company
Most Complete Product Offering Company Nacelles / Thrust Reversers Struts / Pylons Forward Fuselage Other Fuselage Structures Wing / Flight Control Surfaces Spirit Is The Aerosystems Industry Leader
Slide 6: Largest Independent Structures Supplier to Boeing
Largest Independent Structures Supplier to Boeing B737 B747 B767 B787 B777 Shipset Value: $8.0-12.0MM Shipset Value: $8.4-14.6MM Shipset Value: $10.0-11.3MM Shipset Value: $4.0-6.9MM Shipset Value: $5.6-7.5MM Significant Content On All Boeing Single and Twin-Aisle Programs
Slide 7: Largest Independent Structures Supplier to Airbus
Largest Independent Structures Supplier to Airbus A320 A380 Shipset Value: $0.9-1.4MM Shipset Value: $1.2MM Established Relationships for the Future
Slide 8: 2007 Summary
2007 Summary Executed our business well... Delivered 963 product ship sets Increased revenues by ~20 percent from 2006...$3.2B to $3.9B Lower R&D and SG&A expense in 2007 Increased Operating Margins to 10.9%... EPS $2.13 Strong cash flow from core business... Re-investing for growth Strong balance s
Slide 9: Focus Items: Growing Backlog, Strong Operating Performance
Focus Items 737 Program on-track... 2007 Increased production rate, 100% on-time delivery, Improved quality to the customer Fourth quarter... Total deliveries lower due to normal seasonality First P-8A entered production Fourth quarter unfavorable cum catch, not a systemic problem 2008 Increased del
Slide 10: Focus Items: Program On-track
Focus Items 787 Program On-track Delivered Flight Test Unit #2... The fourth forward fuselage delivery Working with Boeing to assess delivery schedule Cash payment discussions continuing... Seeking equitable adjustment due to schedule shift and settlement of contractual matters Financial Sensitiviti
Slide 11: Focus Items: Strong Balance Sheet
Focus Items Strong Balance Sheet... Strong Liquidity $521M in available liquidity... Net Debt to Total Capital ratio of 26.7% Capital Resources... 2007 Year-end Cash $133M Available Revolver $388M Available Liquidity $521M $75M accordion available Potential 787 short-term Working Capital build-up in
Slide 12: Executing Our Strategy
Growing the business... Onex completed acquisition from Boeing Transitioned to stand-alone company Dramatically reduced cost structure Increased production rates 2005 2006 Acquired Spirit Europe - Added Airbus content Established global spare parts distribution capability Won new business jet and en
Slide 13: Backlogs Remain Strong, Orders Expected to Moderate
Sources: Boeing, Airbus data as of 12/31/07 Backlogs Remain Strong... Orders Expected to Moderate in 2008 Large Commercial Aircraft Order and Backlog Trends 1423 1458 Backlog Backlog Boeing Airbus 3,427 3,421 Net Orders Net Orders Boeing Airbus 1,413 1,321
Slide 14: Large Commercial Aircraft Deliveries Remain Strong
Global economy remains healthy... Watch item Potential for extended delivery upcycle supported by... Diversified customer backlog Airline growth plans U.S. domestic replacement needs Prudent delivery ramp-up since 2004 Source: Boeing and Airbus 2008 guidance. Large Commercial Deliveries Near-term De
Slide 15: Excellent Revenue and Cost Predictability
Spirit's Core Business Revenue Pipeline... $26.5 Billion backlog at the end of Q4 2007 98% sole source to Spirit Life of program contracts for Boeing and A320 Cost Predictability... Locked in labor costs through 2010 Long-term supply agreements Limited exposure to rising raw materials prices Total B
Slide 16: Growth Opportunities: Enabling Growth into New Markets
Military Propulsion Fuselage and Wings Regional and Business Jets Growth Opportunities 787 Derivatives A350XWB Large Commercial Transport Commercial Aftermarket 777 Nacelle P-8A Poseidon KC-767 Tanker Spirit's Capabilities and Performance Enabling Growth into New Markets 737 Thrust Reversers
Slide 17: Building a More Diversified Business
Markets / Core Products Large Commercial Transport Boeing 2005 Large Commercial Transport Airbus 2006 Acquired Spirit Europe Business Jets 2008 Cessna - Citation Columbus 2006 Unidentified Customer 2006 Unidentified Customer Commercial Aftermarket 2007 777 Thrust Reverser Military 2007 Sikorsky CH-5
Slide 18: Building a Global Business
Building a Global Business 50/50 Joint Venture Establishes International Design and Engineering Center Leverages global talent at competitive cost Capacity for future growth and new programs Expanding Spirit's Operating Breadth and Capabilities Around the Globe Repair and Overhaul Co-located in Pres
Slide 19: Long-Term Value Creation
Long-Term Value Creation Growing Core Market High Growth Platforms, Backlog Growth Winning New Business Leading the Outsourcing Trend B787 Content Growth
Slide 20: Summary
Summary Strong Aerospace Market... Robust delivery forecast Executing our core business well... Strong cash flow generation, Solid revenue and earnings growth Re-investing for growth... Winning new business Financially strong...Prudent balance sheet management Good progress on 787 Positioned on best
Slide 21: SsPiRIT/
SsPiRIT/ AEROSYSTEMS
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