Spirit AeroSystems Holdings, Inc. Second Quarter 2013 Performance Review Larry Lawson President and Chief Executive Officer Phil Anderson Senior Vice President and Chief Financial Officer August 12, 2013
Second Quarter 2013 Summary Strategic review update and actions Strong revenue growth Cash flow improvement Charges in Wing Related to Gulfstream Programs 2 Strong Operating Performance…Excluding Charges
Spirit AeroSystems Holdings, Inc. Second Quarter 2013 Performance & Financial Results Phil Anderson Senior Vice President and Chief Financial Officer August 12, 2013
Fuselage Systems • Segment Revenues & Operating Income Strong top-line growth and operating $800 $732 performance $700 $627 $600 $500 • Millions Delivered unit 4,500 737 Next Generation $400 fuselage…Together Boeing & Spirit have $300 delivered 7,643 737’s $200 $150 $95 $100 $0 Delivered the 130 th 787 forward fuselage • 2012Q2* 2013Q2 Revenue Operating Income – Boeing backlog stands at 864 with 58 customers – Boeing recently announced -10 derivative – Boeing and Spirit Partnered for Success • Shipped sixth A350 XWB composite center fuselage…Airbus A350 XWB achieved first flight 737 MAX 4 *Warranty reserve in 2012 reclassified from segment operating income to unallocated cost of sales to conform to current year presentation. Strong Growth and Operating Performance
Propulsion Systems • Segment Revenues & Operating Income Strong top-line growth and $450 $419 operating performance $400 $351 $350 $300 Millions • $250 Delivered unit 4,500 for 737 Next $200 Generation pylon and thrust reverser $150 $100 $82 $57 $50 • Shipped unit 1,120 for 777 nacelle and $0 2012Q2* 2013Q2 pylons Revenue Operating Income • Shipped 132nd unit of 787 engine pylons • Achieving development program milestones 737 Thrust Reverser 5 *Warranty reserve in 2012 reclassified from segment operating income to unallocated cost of sales to conform to current year presentation. Strong Growth and Operating Performance
Wing Systems Segment Revenues & Operating Income • Margins impacted by new program $500 $400 $369 $359 forward losses $300 $200 $100 Millions $28 Delivered 5,800 th A320 wing $0 • ($100) components ($200) ($300) ($400) ($404) ($500) 2012Q2* 2013Q2 • Delivered unit 4,500 for 737 Next Revenue Operating Income Generation slats / flaps Oklahoma Product Mix Industry Leading Customers Business Jet Wings for Gulfstream Delivered the 134 th 787 slats • • G650: Flight Ready Wing • G280: Flight Ready Wing Sub-assemblies for Boeing • Initiated process to divest Oklahoma • 737: Leading Edge Slats/Flaps/Edge Kits • 747: Fixed Leading Edge/Bulkheads/Pressure sites Floor/Panels • 777: Floor Beams/Inboard & Outboard Slats • 787: Fixed & Movable Leading Edges • Defense: AWACS Radome Refurbish 6 *Warranty reserve in 2012 reclassified from segment operating income to unallocated cost of sales to conform to current year presentation. Strong Operating Performance…Excluding Charges
Second Quarter 2013 Financial Highlights Operating Income % of Revenues Revenues Millions 15.0% $1,800 11.7% 10.2% $1,600 $1,521 10.0% $1,341 $1,400 5.0% 6.2% $1,200 0.0% $1,000 (5.0%) $800 (15.7%) $600 (10.0%) $400 (15.0%) $200 (20.0%) $0 2012Q2 2013Q2 2012Q2 2013Q2 Operating Margins Excluding Impact of Forward Losses and Certain Other Items* Earnings Per Share (Fully Diluted) Millions Adjusted Free Cash Flow * $0.72 $1.00 $30 $21 $0.50 $20 $0.50 $10 $0.24 $0.00 $0 ($0.50) ($10) ($1.47) ($1.00) ($20) ($1.50) ($30) $(29) ($40) ($2.00) 2012Q2 2013Q2 2012Q2 2013Q2 Adjusted Free Cash Flow Excluding Severe Weather Impact & Customer Advances * 7 EPS Excluding Impact of Forward Losses and Certain Other Items* *Non-GAAP measure. Definitions, reconciliations, and further disclosures regarding this non-GAAP measure are appended to this document . Revenue & Earnings Growth on Commercial Business
Second Quarter 2013 Adjusted EPS* $1.50 $0.05 ($0.24) $0.04 2.61 $1.00 $0.72 ($0.04) ($0.23) $0.50 $0.00 ($0.50) ($1.00) ($1.50) ($1.47) ($2.00) Q2 2013 GAAP Forward Loss Impact from Executive Favorable Other Credits Tax Benefit Q2 2013 EPS Charges Severe Severance Cumulative Reduction Adjusted EPS* Weather Event Catch-up 8 *Non-GAAP measure. Definitions, reconciliations, and further disclosures regarding this non-GAAP measure are appended to this document . Adjusted EPS
Cash and Debt Balances Credit Ratings S&P: BB Moody’s: Ba2 Cash Total Debt Millions Millions $350 $1,400 $317 $313 $1,173 $1,173 $300 $1,200 $250 $1,000 $200 $800 $150 $600 $100 $400 $50 $200 $0 $0 2013Q1 2013Q2 2013Q1 2013Q2 Credit Line Credit Line $0 M $0 M $0 M $0 M Borrowing Borrowing $650 million undrawn credit-line at 6/27/2013 As of 6/27/2013, Total Debt/Total Capital = 39% 9 Strong Liquidity…Proactively Managing Capital Structure
Inventory Inventory Balance $2,000 $2,493 $2,187 Physical – Relatively stable $1,500 $1,388 Deferred – Increase driven by $1,296 $1,211 $1,200 A350 and Gulfstream programs $1,000 Pre-Production – Increase driven by A350 program $515 Dollars in Millions $510 $500 Non-Recurring – Decrease driven by 787 and 737 programs $110 $88 $0 Forward Loss Provision – Increase driven by Gulfstream and 787 programs in Tulsa ($500) ($623) ($1,000) ($1,015) ($1,500) 10 2013Q1 2013Q2 Reinvesting for Growth
Looking Forward Focus and Discipline What we do best Performance Cost Cash flow 11 Focus and Discipline
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