Spirit AeroSystems Holdings, Inc. Fourth Quarter and Full-Year 2009 - PowerPoint PPT Presentation

Spirit AeroSystems Holdings, Inc. Fourth Quarter and Full-Year 2009 Performance Review Jeff Turner President and Chief Executive Officer Phil Anderson Vice President and Interim Chief Financial Officer February 4, 2010

Fourth Quarter and Full-Year 2009 Summary  Executing our long-term growth & diversification strategy  Solid demand for core products  Making progress on development programs  Re-started 787 fabrication… postured for production ramp-up  Well positioned to manage through market uncertainty Executing Our Strategy…Core Business Strength 2

Fuselage Systems Segment Revenues & Operating Margins  Margins impacted by… $600 25% $506 $500 – Adjustments affecting 737/747 20% Revenue (Millions) $400 accounting block closure 15% Margin $288 $300 – Lower Sikorsky CH-53K profitability due 10% 11.5% 11.3% $200 to weight improvement initiative 5% $100  $0 0% 737 Next Generation deliveries 2008Q4 2009Q4 surpassed 737 Classic  Delivered twenty-fourth 777 Freighter unit  Continue to support P-8A fuselage test unit activity  Delivered thirteenth 747-8 Freighter unit 737 Next Generation Fuselage  Progressing on Airbus A350 Executing Core Business… Developing New Products 3

Propulsion Systems Segment Revenues & Operating Margins  Margins impacted by… $300 25% $258 $250 – Adjustments affecting 737/747 20% Revenue (Millions) $200 accounting block closure Margin $169 15% $150 12.6% – Lower Aftermarket volume 10% $100 9.8% 5% $50  Shipped fifteenth 787 Engine Pylon $0 0% 2008Q4 2009Q4  Delivered fourth 747-8 Inlet and the eighth Pylon ship set  Delivered third & fourth Rolls-Royce BR725 nacelle packages… continued efforts supporting certification  Mitsubishi Regional Jet and Bombardier CSeries Jet development efforts progressing 737 Pylon Executing Core Business… Developing New Products 4

Wing Systems Segment Revenues & Operating Margins  Improved Margins $350 25% $312 $300  Progressing on Airbus A350 wing spar 20% Revenue (Millions) $250 development Margin $182 15% $200  $150 Spirit Malaysia now at full-rate 10% 10.7% $100 production of A320 composite panels 5% $50 4.1%  Delivered twelfth 747-8 Fixed Leading $0 0% 2008Q4 2009Q4 Edge Wing section  Continued progress on development programs… Focused on cost improvements, weight reduction and schedule  Aftermarket challenging… Positioned to grow as market returns – Joint venture MRO in China – Launch of Global sales and distribution of 747-8 Inboard Fixed Leading Edge spare parts Executing Core Business… Developing New Products 5

787 Update  Delivered forward fuselage number fifteen  Restarted composite forward fuselage fabrication  Continuing to work with supply base in preparation for production ramp-up 787 Forward Fuselage  Supporting engineering change activity  Focused on improving profitability 787 Forward Fuselage Systems Installation Customer-Focused Execution Plan… Postured for the Future 6

Spirit AeroSystems Holdings, Inc. Fourth Quarter and Full-Year 2009 Financial Results Phil Anderson Vice President and Interim Chief Financial Officer February 4, 2010

Fourth Quarter 2009 Financial Highlights  Revenues of $1,078 million  Operating Margins of 7.9%  Unfavorable cumulative catch-up $34 million, $0.17 per share  Operating Cash Flow of $197 million  Capital Expenditures of $70 million Challenging Fourth Quarter… Strong Cash Flows 8

Full-Year 2009 Financial Highlights Operating Income % of Revenues Revenues Millions $4,500 12% 10.9% $4,079 10.8% $3,861 $4,000 $3,772 10% $3,500 7.4% $3,208 8% $3,000 6% $2,500 4% $2,000 2% $1,500 0% $1,000 (2%) $500 (1.8%) (4%) $0 2006 2007 2008 2009 2006 2007 2008 2009 Earnings Per Share (Fully Diluted) Cash from Operations and Capital Expenditures Cash from Operations $2.50 $400 ($400) Cash from Operations (Millions) Capital Expenditures Capital Expenditures (Millions) ($343) $2.13 $350 ($350) $1.91 ($288) $2.00 $300 $274 ($300) ($236) $250 ($250) ($228) $211 $1.37 $1.50 $180 $200 ($200) $150 ($150) $1.00 $100 ($100) $50 ($50) $0.50 $0.14 $0 $0 ($14) $- ($50) $50 2006 2007 2008 2009 2006 2007 2008 2009 Challenging 2009… Financially Strong 9

Cash and Debt Balances Credit Ratings S&P: BB Moody’s: Ba3 Cash Total Debt Millions Millions $1,000 $400 $369 $894 $884 $900 $350 $800 $300 $700 $250 $600 $207 $200 $500 $400 $150 $300 $100 $200 $50 $100 $0 $0 2009Q3 2009Q4 2009Q3 2009Q4 Credit Line Credit Line $0M $0M $0M $0M Borrowing Borrowing $729 million undrawn credit-line at 12/31/09 As of 12/31/2009, Total Debt/Total Capital = 36% Solid Balance Sheet and Robust Liquidity 10

Cash Flow $ Millions 2009 2008 Net Income $ 192 $ 265  Investing in new programs Depreciation & Amortization $ 134 $ 132 Other Non-Cash Items $ 28 $ (24)  Working Capital/Accrued Liabilities $ (203) $ (592) Net customer advances decline Customer Advances, Net $ (98) $ 341 Other $ (67) $ 89  Prudently managing Capital Operating Cash Flow $ (14) $ 211 Expenditures Capital Expenditures $ (228) $ (236) Customer Reimbursed Capital Expenditures $ 115 $ 116 Managing Through the Development Cycle 11

2010 Financial Guidance Financial Guidance Issued on February 4, 2010 2009 Actual 2010 Guidance Revenues $4.1 billion $4.0 - $4.2 billion Earnings Per Share (Fully Diluted) $1.37 $1.50 - $1.70 Cash Flow from Operations ($14) million ($250) with ~$325 million of Capital Capital Expenditures $228 million Expenditures Customer Reimbursement $115 million N/A Note: Although calculations for years through 2009 included customer reimbursements, payments on these receivables concluded in December 2009 so this element will not be considered going forward. Issuing 2010 Guidance 12

EPS Walk from 2009 to 2010 Guidance EPS 2009 Actual $1.37 2009 Charges: G250 Loss 0.47 Cessna Termination 0.06 Strike Impacts/Nut Plate Rework/ERP Transition 0.17 Block closure adjustments 1 0.13 Sikorsky 0.04 2009 Actual Adjusted 2 $2.24 Volume/Model Mix ~ (0.25) Increased Depreciation Expense ~ (0.15) Headwinds Lower Pension Income ~ (0.10) Increased Net Interest Expense ~ (0.15) 2010 Guidance Range $1.50 - $1.70 1. Largely associated with adjustments affecting initial 737/747 contract accounting block closure. 13 2. Non-GAAP measure.

Closing Comments  Executing our long-term strategy  Priorities are core business performance and new program execution  Continued focus on cost control and improving efficiencies  Development programs continue to mature  Postured for long-term value creation Core Business Strength… Long-Term Value Creation 14