Goodrich Corporation A Global Leader in Aerospace and Defense 2011 Aerospace Executive Forum Monroe, NC May 5, 2011 Paul Snyder 1
A Global Leader in Aerospace and Defense One of the largest global aerospace and defense suppliers Operating history of 140+ years Proprietary flight-critical products and systems 25,000 employees at more than 80 locations worldwide 2010 sales – $7 billion Large installed base on modern fleets drives aftermarket sales Significant and rapidly growing defense and space presence 2 Goodrich Proprietary
Proven History Of Technology And Innovation 140 years Let us make goods destined for service. Dr. Benjamin Franklin Goodrich, 1870 140 years in business Continuously traded on NYSE for almost 100 years History of innovation We hadn’t heard of Aerospace 100+ years ago Continue to adapt to the marketplace Proven ability to invest, adapt and progress From 1920 publication – “For the true test of an institution is more than its age – it is HOW MUCH it has written into the progress of the world and how much benefit it has been to the industry it represents.” First rubber/cotton fire hoses in 1870, first rubber research lab in 1895, first rubber tire for automobiles sold to public in 1896, aircraft tires in 1909, first slide fastener rubber overshoe (the Zipper) in 1923), first flexible polyvinyl in 1926, first pneumatic de-icers for aircraft and first pressure suit for Wiley Post in the 30s, first synthetic rubber in 1939, space suits for Mercury project astronauts in the 60s,… “The Goodrich organization has always endeavored to meet its responsibilities and perform its tasks with a full sense of its obligations toward the public.” 1895 The first US research lab 1870 The first rubber fire hose 3 Goodrich Proprietary
1988-2010: A Dramatic Transformation DeCrane Aerospace. Crompton Technology Group, LTD. (CTG) Acquisitions Divestitures Legend Cloud Cap Technology, Atlantic Inertial Systems 2010 2009 2008 Skyline Industries, TEAC Aerospace, Recon Optical 2007 ATS 2006 SuperImide Sensors Unlimited 2005 JcAir Test Sys 2004 2003 Avionics TRW Aeronautical Systems 2002 Engineered Industrial Products 2001 Raytheon Optical Systems 2000 Performance Materials Coltec Industries 1999 1998 Rohr, Inc. 1997 1996 1995 Rosemount Aerospace Cleveland Pneumatic 1994 1993 Geon (PVC) Simmonds Precision 1992 1991 1990 Over 40 acquisitions in the last 20+ years 1989 1988 BFGoodrich Tire Division 4 Goodrich Proprietary
Over 80 Locations In 18 Nations Around The World Global Presence Americas United States (47) Brazil (1) Canada (2) Mexico (2) Europe & Middle East United Kingdom (11) UAE (1) France (6) Germany (4) Poland (1) Asia-Pacific Australia (2) China (4) India (1) Indonesia (1) Japan (1) Singapore (1) Over 80 Locations In 18 Nations Around The World 5 Goodrich Proprietary 5
A Broad Product Portfolio – Commercial Aircraft 6 Goodrich Proprietary 6
A Broad Product Portfolio – Helicopters 7 Goodrich Proprietary 7
A Broad Product Portfolio – Military Aircraft 8 Goodrich Proprietary 8
Leverage the Enterprise Operational Excellence Goodrich Strategy Balanced Growth Leverage the Enterprise Operational Excellence Military / Commercial OE / Aftermarket Products / Services Capture Full Value From Large, Focused, Integrated Aerospace & Defense Company Processes That Drive Results That Are Important To Customers Results: Growth Profitability Cash Flow Cycle Protection Results: Cost Reduction Technology Leadership Market Access Overhead Efficiency Results: Quality & Delivery Execution Sustainable Cost Reduction Strategy Execution is Delivering Sustained Results 9 Goodrich Proprietary
Goodrich Culture 10 Goodrich Proprietary 10
2010 Sales by Market Channel Total Sales $7 Billion Other: 4% Boeing Commercial OE: 10% TOTAL DEFENSE & SPACE: 32% TOTAL COMMERCIAL OE: 33% Defense & Space, OE & Aftermarket: 32% Airbus Commercial OE: 17% OE AM Regional, Business & General Aviation OE: 6% Large Commercial Aircraft Aftermarket: 25% Regional, Business & General Aviation Aftermarket: 6% TOTAL COMMERCIAL AFTERMARKET: 31% Balanced Business Mix; Aftermarket Represents ~44% Of Total Sales 11 Goodrich Proprietary 11
Market Drivers and Goodrich Positioning Production rates increasing New aircraft entering service Fuel driving airline profitability Load factors at high levels Fleet growing (net of retirements) High demand for new generation aircraft Airline consolidation Flattish budget Decreasing war funding Significant spend on ISR, helicopters, JSF, precision guided munitions Commercial OE Commercial Aftermarket Defense & Space Strong content on in-production aircraft Greater content on in-development aircraft Aftermarket sales improvement Limited exposure to old generation aircraft Fleet growth and age positions Goodrich well for significant aftermarket growth Growth platforms match funded DoD priorities Bolt on acquisitions add scale Sales growth sustainable All Major End Markets Improving 12 Goodrich Proprietary
Significant Content On New Aircraft Programs Lockheed-Martin F-35 Boeing 787 Landing gear system Anti-icing & ice detection systems Weapons bay door drive system Fuel quantity gauging components Utility actuators Lift-Fan® drive shaft and couplings Lift-Fan® clutch material (STOVL version) SmartProbe® and SmartPort® air data sensing technology Nacelles and thrust reversers Wheels and electric braking system Engine control system* Sensor systems Lighting systems Cargo system Cabin attendant seats *Through Goodrich’s joint venture with Rolls-Royce, Aero Engine Controls Significant Positions on Major New Aircraft Programs 13 Goodrich Proprietary 13
Strong Position In Platforms Payload Area Offers Strong Growth Goodrich Defense & Space Sales Platforms ~60% of Sales 2010 SALES $2.2B Payloads ~40% of Sales ISR, Classified and other Tactical Jets Transport & Special Mission A/C Space Systems/Vehicles Ground Vehicle Systems Rotary Wing Missiles and Precision Weapons UAVs Strong Position In Platforms Payload Area Offers Strong Growth Marine 14 Goodrich Proprietary
Emerging Growth Opportunities Technology and Innovation Goodrich consistently invests in new, leading-edge technologies with promise in the aerospace and defense sector: Green technologies More electric technologies Nanotechnology Robust wireless communication systems and sensing technologies Advanced precision guided weapon technologies Electric brakes Phoenix Electronic Systems Center Innovative Wireless Technologies 787 Electric Brake Nanotechnology For Advanced Structures Six Degree Of Freedom Inertial Measurement Unit Breakthrough Technologies for Next Generation Products 15 Goodrich Proprietary
Strategic Business Units (SBUs) Marshall Larsen Chairman, President and Chief Executive Officer Goodrich – Global Headquarters – Charlotte, NC Actuation and Landing Systems Jack Carmola Segment President Nacelles and Interior Systems Cindy Egnotovich Segment President Electronic Systems Curtis Reusser Segment President Landing Gear Aerostructures Sensors and Integrated Systems Aircraft Wheels and Brakes Interiors Engine Control and Electrical Power Systems Actuation Systems Customer Services Paul Snyder Intelligence, Surveillance & Reconnaissance Systems Engine Components Goodrich Customer Services – Global Headquarters – Monroe, NC 16 Goodrich Proprietary 16
Actuation and Landing Systems Segment SBUs SBU & Products Market Position 2010 Sales = $2.5B Landing Gear Landing Gear Systems #1 / #2 Aircraft Wheels & Brakes Wheels and Braking Systems #1 / #2 Actuation Systems Primary & Secondary Flight Controls and Nacelle Actuation #1 Engine Components Fuel Nozzle Components Blades & Vanes #1 / #2 17 Goodrich Proprietary
Electronic Systems Segment SBUs SBU & Products Market Position 2010 Sales = $2.1B Sensors & Integrated Systems Air Data & Engine Sensors De-Icing Products Fuel Management Systems #1 Engine Controls & Electrical Power Systems #2 Intelligence, Surveillance & Reconnaissance Systems #1 / #2 18 Goodrich Proprietary
Nacelles and Interior Systems Segment SBUs SBU & Products Market Position 2010 Sales = $2.4B Aerostructures Nacelle Structures & Thrust Reverser Systems #1 Interiors Evacuation Slides Cargo Systems Lighting Systems Seating Systems Cabin Systems #2 #1 #2 #1 #1 19 Goodrich Proprietary
Enterprise Aftermarket Operational Shared Service Customer Services SBU Customer Support Management Enhanced & Simplified Customer Interface Enterprise Business Development Flexible, Multi-Product Contracting Options Global MRO Campus Network Enterprise Aftermarket Operational Shared Service Best-In-Class Component MRO Services Global Asset & Repair Management Global Asset & Repair Management Services Customer Facing Tools Web Based Customer Tools 20 Goodrich Proprietary
Customer Services Global MRO Campus Network Monroe, USA Customer Services HQ Paris, France Dubai, UAE Xiamen, China MRO Campus Characteristics Multiple product capabilities Strategic geographic locations Lean MRO processes and standards Stronger on-site technical capability Improved logistics/material management systems Singapore Sydney, Australia 21 Goodrich Proprietary
Goodrich Uniquely Positioned For Long Term Growth Summary Leading global aerospace and defense supplier Broad product portfolio Strong focus on operational excellence Team-focused culture and highest standards of ethics and integrity Balanced business mix Significant positions on new commercial and military aircraft New technology on modern fleets driving growth Goodrich Uniquely Positioned For Long Term Growth 22 Goodrich Proprietary 22
Questions? 23 Goodrich Proprietary