First Quarter 2012 Performance Review Jeff Turner President and - PowerPoint PPT Presentation

Spirit AeroSystems Holdings, Inc. First Quarter 2012 Performance Review Jeff Turner President and Chief Executive Officer Phil Anderson Senior Vice President and Chief Financial Officer May 3, 2012

First Quarter 2012 Summary  Resumed operations after tornado at our Wichita facility  Solid first quarter operating performance  Delivering high production volumes  Backlog at over $33 billion  Continued strong commercial airplane market outlook Solid Q1 Results…Gaining Momentum 2

Fuselage Systems  Segment Revenues & Operating Margins Solid operating performance $700 25.0% $623 $600 20.0% $528  Delivered unit 4,000 737 Next- Includes $500 Revenue (Millions) impact of $28M CH-53K Generation 737 fuselage 14.0% 15.0% charge $400 Margin $300 8.9% 10.0%  Delivered 787 forward fuselage $200 5.0% number sixty-four $100 $0 0.0% 2011Q1 2012Q1  Delivered forty-fifth 747-8 forward fuselage  Shipped first A350 XWB composite center fuselage to customer 787 Forward Fuselage Double Load – February 2012 Delivering on Higher Volumes 3

Propulsion Systems Segment Revenues & Operating Margins  Strong operating performance $400 25.0% …Aftermarket contributes $344 $350 20.0% $300 $273 16.7% Revenue (Millions) 14.9% $250 15.0% Margin  Delivered unit 4,000 for 737 Next- $200 Generation 737 Pylon and Thrust 10.0% $150 Reverser $100 5.0% $50 $0 0.0% 2011Q1 2012Q1  Shipped sixty-fifth 787 Engine Pylon  Delivered forty-first 747-8 Strut shipset  Progressing on new program development 737 Thrust Reverser Aftermarket & MRO Delivering on Higher Volumes…Aftermarket Contributes 4

Wing Systems  Solid core operating Segment Revenues & Operating Margins $350 25.0% performance…margin impacted $297 $300 by G280 charge 20.0% $245 $250 Revenue (Millions) 15.0% $200  Margin Delivered 5,200 th A320 Wing $150 components 10.0% 7.1% 6.9% $100 5.0%  $50 Delivered unit 4,000 for 737 Next- $0 0.0% Generation 737Slats / Flaps 2011Q1 2012Q1  Shipped forty-third 747-8 Fixed Leading Edge Wing section  Delivered 787 slat unit sixty-four  Progressing on development programs 787 Fixed Leading Edge Delivering on Higher Volumes 5

Recovery Update  Focus on safe recovery  Resumed shipping on 4/19  Returned to work on 4/23 737 Fuselage Prepping to Ship After the Tornado  Recover lost shipments in 2012  Financial impacts updated in Q2 earnings 737 TR Prepping to Ship After the Tornado Focus on Safety Supporting our Customers 6

Spirit AeroSystems Holdings, Inc. First Quarter 2012 Financial Results Phil Anderson Senior Vice President and Chief Financial Officer May 3, 2012

First Quarter 2012 Financial Highlights Revenues Operating Income % of Revenues Millions $1,400 $1,266 14% $1,200 12% $1,050 $1,000 9.7% 10% $800 8% 6.6% $600 6% $400 4% $200 2% $0 0% 2011Q1 2012Q1 2011Q1 2012Q1 Earnings Per Share (Fully Diluted) Cash from Operations and Capital Expenditures $0.80 $80 $80 $60 $60 $0.70 Cash from Operations (Millions) Capital Expenditures (Millions) $40 $40 $0.60 $20 $20 $12 $0.52 Includes $0 $0 $0.50 impact of $28M CH-53K ($20) ($20) charge $0.40 ($40) ($40) ($42) $0.30 ($60) ($60) ($54) $0.24 ($80) ($80) $0.20 ($100) ($100) $0.10 ($120) ($120) ($128) $0.00 ($140) ($140) 2011Q1 2012Q1 2011Q1 2012Q1 Cash from Operations Capital Expenditures Revenue & Earnings Growth on Core Business Volume 8

First Quarter 2012 Period Expenses Research & Development Expense (Millions) S G & A Expense (Millions) $14 $50 $13 $45 $45 $12 $39 $40 $10 $35 $30 $7 $8 $25 $6 $20 $4 $15 $10 $2 $5 $0 $0 2011Q1 2012Q1 2011Q1 2012Q1 1.2% % of Sales 0.6% 3.7% % of Sales 3.6% Disciplined Expense Management 9

Cash and Debt Balances Credit Ratings S&P: BB, stable Moody’s: Ba2, positive Cash Total Debt Millions Millions $200 $1,400 $178 $1,201 $1,194 $180 $1,200 $160 $1,000 $134 $140 $120 $800 $100 $600 $80 $400 $60 $40 $200 $20 $0 $0 2011Q4 2012Q1 2011Q4 2012Q1 Credit Line Credit Line $0 M $0 M $0 M $0 M Borrowing Borrowing  As 3/29/12, Total Debt/Total Capital = 37%  $650 million undrawn credit-line at 3/29/12 Strong Liquidity…Proactively Managing Capital Structure 10

Inventory 3,500 3,000 2,739 2,630 150 109 2,500 560 Non-Recurring – Increase 553 driven by A350 and 787 Dollars in Millions 2,000 Pre-Production – Modest change 877 813 1,500 Deferred – Increase driven by A350 and 787 programs 1,000 Physical – Essentially flat 1,155 1,152 500 0 2011Q4 2012Q1 Reinvesting for Growth and Diversification 11

2012 Financial Guidance Financial Guidance Issued on May 3, 2012, excluding impact of tornado 2011 Actual 2012 Guidance Revenues $4.9 billion $5.2 - $5.4 billion Earnings Per Share (Fully Diluted) $1.35 $2.00 - $2.15 Effective Tax Rate 31.0% 31% - 32%* Cash Flow from Operations ($47) million >$300 million ** Capital Expenditures $250 million ~$250 million *Effective tax rate guidance, among other factors, assumes the benefit attributable to the extension of the U.S. research tax credit (Assumes ~1.25% benefit) **Excludes customer advance payments 2012 Guidance 12

Closing Comments  Core business is strong  Delivering on high production rates  Focused on executing to the plan  Performing well to recovery plan  Strong market for core products Long- Term Value Creation…Gaining Momentum 13