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

Spirit AeroSystems Holdings, Inc. Second Quarter 2010 Performance Review Jeff Turner President and Chief Executive Officer Phil Anderson Senior Vice President and Chief Financial Officer August 3, 2010

Second Quarter 2010 Summary  Solid second quarter results  Core business performing well  Making progress on development programs  Executing our long-term strategy  Favorable commercial market outlook… Strong demand for core products  Substantial backlog at over $27 billion Solid Operating Performance…Executing Our Strategy 2

Fuselage Systems Segment Revenues & Operating Margins  Solid operating performance $600 25.0% $541 $515 $500 20.0%  Delivered unit 3,300 737 Next Revenue (Millions) 15.7% $400 Generation fuselage 15.0% Margin $300 11.0% 10.0%  Delivered 787 forward fuselage $200 number twenty-four… Production 5.0% $100 progressing $0 0.0% 2009Q2 2010Q2  Delivered 1st 747-8 Intercontinental forward fuselage  Sikorsky CH-53K progressing  Continued progress on Airbus A350 fuselage 737 Fuselage Assembly Executing Core Business Well… Developing New Products 3

Propulsion Systems Segment Revenues & Operating Margins  Solid operating performance $300 25.0% $279 $272 $250 20.0%  Delivered unit 3,300 for 737 Next Revenue (Millions) $200 Generation Pylon and Thrust 15.0% Margin 12.3% Reverser $150 10.0% 8.3% $100  Shipped twenty-fifth 787 Engine 5.0% $50 Pylon $0 0.0% 2009Q2 2010Q2  Delivered eighth 747-8 Inlet, thirteenth Pylon shipset  Supporting Rolls-Royce BR725 test phases 787 Engine Pylon  Continued development progress on MRJ and Bombardier CSeries Executing Core Business Well… Developing New Products 4

Wing Systems Segment Revenues & Operating Margins  Solid operating performance $300 30.0% $267 $250 20.0% $235  Delivered unit 3,300 for 737 Next Revenue (Millions) $200 10.0% 10.6% Generation Slats / Flaps Margin $150 0.0% $100 (10.0%)  Shipped eighteenth 747-8 Fixed $50 (20.0%) Leading Edge Wing section (25.1%) $0 (30.0%) 2009Q2 2010Q2  Supporting Gulfstream G250 and G650 test phases  Continued progress on Airbus A350 wing leading edge structure 747-8 Fixed Leading Edge Wing Assembly Executing Core Business Well… Developing New Products 5

Spirit AeroSystems Holdings, Inc. Second Quarter 2010 Financial Results Phil Anderson Senior Vice President and Chief Financial Officer August 3, 2010

Second Quarter 2010 Financial Highlights Revenues Operating Income % of Revenues Millons $1,200 10% $1,060 $1,056 8.1% $1,000 8% $800 6% $600 4% $400 2% $200 0% (1.0%) $0 (2%) 2009Q2 2010Q2 2009Q2 2010Q2 Earnings Per Share (Fully Diluted) Cash from Operations and Capital Expenditures $0.45 $40 $40 $0.39 $0.40 $20 $20 Includes ($0.10) Cash from Operations (Millions) Capital Expenditures (Millions) per share - IAM $0.35 $0 $0 contract stock ($7) award $0.30 ($20) ($20) $0.25 ($40) ($40) $0.20 ($60) ($60) ($52) ($61) $0.15 ($67) ($80) ($80) $0.10 ($100) ($100) $0.05 ($120) ($120) $0.00 ($140) ($140) ($0.05) ($160) ($160) ($0.06) ($0.10) 2009Q2 2010Q2 2009Q2 2010Q2 Cash from Operations Capital Expenditures Strong Financial Performance 7

Second Quarter 2010 Period Expenses Research & Development Expense (Millions) S G & A Expense (Millions) $16 $45 $14 $38 $40 $14 $13 $35 $35 $12 $30 $10 $25 $8 $20 $6 $15 $4 $10 $2 $5 $0 $0 2009Q2 2010Q2 2009Q2 2010Q2 1.3% % of Sales 1.2% 3.3% % of Sales 3.6% Disciplined Expense Management 8

Cash and Debt Balances Credit Ratings S&P: BB Moody’s: Ba3 Cash Total Debt Millions Millions $200 $1,000 $187 $897 $893 $180 $900 $160 $800 $140 $700 $118 $120 $600 $100 $500 $80 $400 $60 $300 $40 $200 $20 $100 $0 $0 2010Q1 2010Q2 2010Q1 2010Q2 Credit Line Credit Line $0 M $0 M $0 M $0 M Borrowing Borrowing  As of 07/01/2010, Total Debt/Total Capital = 34%  $409 million undrawn credit-line at 07/01/2010 Strong Liquidity and Balance Sheet 9

Cash Flow $ Millions 2Q 10 2Q 09 Net Income $ 55 $ (8) Depreciation & Amortization $ 31 $ 34  Investing in new programs Other Non-Cash Items $ (4) $ (5) Working Capital/Accrued Liabilities $ (63) $ 20 Customer Advances, Net $ (36) $ (20) Other $ 10 $ (88)  Capital expenditures discipline Operating Cash Flow $ (7) $ (67) Capital Expenditures $ (61) $ (52) Customer Reimbursed Capital Expenditures $ - $ 29 Reinvesting for Growth and Diversification 10

2010 Financial Guidance Financial Guidance Issued on August 3, 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 Effective Tax Rate 29.7% ~27% * Cash Flow from Operations ($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 extending 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. 2010 Guidance Unchanged 11

Closing Comments  Solid operating performance across the company  Progressed on development programs  Focused on execution and delivery on customer commitments  Strong demand for core products…Well positioned  Continued to execute our long-term strategy Core Business Strength… Long Term Value Creation 12