Spirit AeroSystems Holdings, Inc. First Quarter 2010 First Quarter - PowerPoint PPT Presentation

Spirit AeroSystems Holdings, Inc. First Quarter 2010 First Quarter 2010 Performance Review Jeff Turner President and Chief Executive Officer President and Chief Executive Officer Phil Anderson Senior Vice President and Chief Financial Officer Senior Vice President and Chief Financial Officer April 29, 2010

First Quarter 2010 Summary  Solid first quarter results  Core business performing well  Making progress on development programs  787 production is progressing  Backlog remains stable at $28 billion B kl i bl $28 billi Executing Our Strategy…Core Business Strength 2

Fuselage Systems Segment Revenues & Operating Margins  Solid operating performance on $600 25.0% increased volumes $516 $500 20.0% $431 $431 Revenue (Millions) $400  14.7% 17.4% Delivered unit 3,200 737 Next 15.0% Margin $300 Generation fuselage 10.0% $200  Delivered twenty-ninth 777 5.0% $100 Freighter unit $0 0.0% 2009Q1 2010Q1   Delivered fifteenth 747 8 Freighter Delivered fifteenth 747-8 Freighter unit  Continued progress on Airbus p g A350  Completed Sikorsky CH-53K 737 Next Generation Fuselage C iti Critical Design Review l D i R i Focused on Execution… Developing New Products 3

Propulsion Systems Segment Revenues & Operating Margins  Executed well on core production $300 25.0% $274 volumes…challenging Aftermarket $250 $227 20.0% 17.0% Revenue (Millions)  Delivered unit 3,200 for 737 Next $200 15.0% Margin Generation Pylon and Thrust 12.2% $150 Reverser 10.0% $100  5.0% Shipped the twentieth 787 Engine $50 Pylon $0 0.0% 2009Q1 2010Q1  Delivered seventh 747-8 Inlet and Delivered seventh 747 8 Inlet and the tenth Pylon ship set  Delivered fifth Rolls-Royce BR725 Nacelle package Nacelle package  Continued development progress on Mitsubishi Regional Jet and Bombardier CSeries Jet Bombardier CSeries Jet 777 Thrust Reverser Focused on Execution… Developing New Products 4

Wing Systems Segment Revenues & Operating Margins  Executed well on core production $300 25.0% volumes $249 $250 20.0% $221 Revenue (Millions) $200  Hawker 850XP transitioning back 15.0% Margin to Hawker Beechcraft by 2012 $150 8.8% 10.0% 7.6% $100  Spirit Malaysia at full production 5.0% $50 rate across all deliverables on the $0 0.0% A320 2009Q1 2010Q1  Shipped fifteenth 747-8 Fixed Leading Edge Wing section  Delivered the fourth Gulfstream G250 unit and the fifth G650 unit 737 Flap Assembly Focused on Execution… Developing New Products 5

787 Update  Shipped airplane number twenty forward fuselage  Production line is full and supporting flow requirements  O Overall product quality excellent  Supporting engineering change 787 Forward Fuselage activity activity  Continuing to work internally and with supply base for smooth production ramp-up d ti  Focused on improving productivity and efficiency y 787 Forward Fuselage Cockpit Customer-Focused Execution Plan… Good Progress 6

Spirit AeroSystems Holdings, Inc. First Quarter 2010 First Quarter 2010 Financial Results Phil Anderson Phil Anderson Senior Vice President and Chief Financial Officer April 29, 2010

First Quarter 2010 Financial Highlights Revenues Operating Income % of Revenues Millons $1,200 12% 11.0% $1,043 $1,000 10% $887 8.9% $800 $800 8% 8% $600 6% $400 4% $ $200 2% $0 0% 2009Q1 2010Q1 2009Q1 2010Q1 Earnings Per Share (Fully Diluted) Cash from Operations and Capital Expenditures $0.50 $0 50 $40 $40 $40 $40 $0.45 $20 $20 $0.45 ations (Millions) tures (Millions) $0.40 $0 $0 $0.40 ($20) ($20) $0.35 ($40) ($40) $0.30 ($60) ($60) ($60) ($60) Cash from Opera Capital Expendit $0.25 ($54) ($69) ($80) ($80) $0.20 ($100) ($100) $0.15 ($110) ($120) ($120) $0.10 ($140) ($140) $0.05 ($149) ($149) ($160) ($160) ($160) ($160) $- 2009Q1 2010Q1 2009Q1 2010Q1 Cash from Operations Capital Expenditures Strong, High Single-Digit Operating Margins 8

First Quarter 2010 Period Expenses Research & Development Expense (Millions) p p ( ) S G & A Expense (Millions) S G & pe se ( o s) $16 $45 $39 $14 $38 $40 $14 $35 $12 $10 $30 $10 $10 $25 $8 $20 $6 $15 $4 $10 $10 $2 $5 $0 $0 2009Q1 2010Q1 2009Q1 2010Q1 1.6% % of Sales 0.9% 4.3% % of Sales 3.8% Disciplined Expense Management 9

Cash and Debt Balances Credit Ratings S&P: BB Moody’s: Ba3 Cash Total Debt ota ebt Millions o s Millions Millions $400 $1,000 $369 $894 $897 $900 $350 $800 $300 $700 $250 $250 $ $600 $187 $200 $500 $400 $150 $300 $100 $200 $200 $50 $100 $0 $0 2009Q4 2010Q1 2009Q4 2010Q1 Credit Line Credit Line $0 M $0 M $0 M $0 M Borrowing Borrowing g  $729 million undrawn credit-line at 04/01/2010  As of 04/01/2010, Total Debt/Total Capital = 36%  The company’s revolving credit facility steps down to $409 million in capacity in June 2010 Balance Sheet and Liquidity Remain Strong 10

Cash Flow $ Millions 1Q 10 1Q 09  Net Income $ 56 $ 63 Investing in new programs Depreciation & Amortization $ 30 $ 33 Other Non-Cash Items $ 14 $ (2)  Working capital improvement Working Capital/Accrued Liabilities $ (179) $ (223) Customer Advances, Net $ (39) $ (24) Other $ 8 $ 4  Prudently managing Capital Operating Cash Flow $ (110) $ (149) Expenditures Capital Expenditures $ (69) $ (54) Customer Reimbursed Capital Expenditures Customer Reimbursed Capital Expenditures $ $ - $ $ 29 29 Managing Through the Development Cycle 11

2010 Financial Guidance Financial Guidance Issued on April 29, 2010 2009 Actual 2010 Guidance Revenues $4.1 billion $4.0 - $4.2 billion Earnings Per Share (Fully Diluted) Earnings Per Share (Fully Diluted) $1 37 $1.37 $1.50 - $1.70 $1 50 - $1 70 Effective Tax Rate 29.7% ~27% * Cash Flow from Operations C f O ($ ($14) million ) ~$75 million $ Capital Expenditures $228 million ~$325 million Customer Reimbursement $115 million N/A** * Effective tax rate guidance, among other factors, assumes the benefit attributable to the extension of the U.S. research tax credit (Assumes ~2.5% benefit) ** Although calculations for years through 2009 included customer reimbursements, these payments concluded in December 2009 so this will not be included in future results. 2010 Guidance Unchanged 12

Closing Comments  Well positioned within the aerospace industry  Focused on execution and meeting customer commitments commitments  Continued focus on productivity and profitability  Progressed on development programs  Continued to execute our long-term strategy Executing Our Strategy… Long-Term Value Creation 13