B/E AEROSPACE Lauren A. Petrick ACG

Any company that has some part to do with the airline industry, seems to be in quite a struggle during the past couple of years and B/E Aerospace is no exception to that. B/E Aerospace has been greatly effected by the incidences in the airline industry as well as those that the U.S. as a country has experienced. However, in light of what has happened, B/E Aerospace has been trying hard to keep moving in a positive direction. Goals were modified and new programs were created to help in this process and while it has been challenging, B/E Aerospace has began to show positive results.

Robert J. Khoury Robert J. Khoury President and Chief Executive Officer Corporate Headquarters Corporate Headquarters 1400 Corporate Center Way Wellington, FL December 31, 2003 December 31, 2003

B/E Aerospace produces cabin interior products for commercial aircrafts (73%) and business jets (10%), as well as distributes aerospace fasteners (17%). They also provide services that include interior design, reconfiguration, and passenger-to-freight conversions. B/E Aerospace produces cabin interior products for commercial aircrafts (73%) and business jets (10%), as well as distributes aerospace fasteners (17%). They also provide services that include interior design, reconfiguration, and passenger-to-freight conversions. B/E Aerospace operates manufacturing facilities in the U.S. and Europe and have offices in the U.S., Europe and Asia. B/E Aerospace operates manufacturing facilities in the U.S. and Europe and have offices in the U.S., Europe and Asia.

Deloitte & Touche LLP The independent auditors, Deloitte & Touche LLP, have concluded that the financial positions of B/E Aerospace, as well as their subsidiaries, in all areas are in co ordinance with the accounting principles generally accepted in the U.S

$ 9.10 $ 9.10 $ $ $ $ B/E Aerospace B/E Aerospace September 30, 2004 September 30, 2004 Hold Hold

The airline industry has taken several major hits over the past couple of years, from September 11 to continuing battles over seas and everything else in between. However, slowly but surely the industry is making improvement and things should only be getting better. B/E Aerospace has a very positive outlook for the future, although they will continue to be cautious. They expect additional follow up orders in 2004 to deliver their 2004 plans. B/E Aerospace is remaining focused on financial discipline and the fundamental principles that drive the business, customer service, quality, and innovation and they care committed to taking the right steps to increase shareholder value.

Multi-step income statement Multi-step income statement Even those there has been a consistent net loss over the past two years, there was almost a 50% decline in the net lose from 2002 to Due partly to the increase in income from operations. Gross profit also ended with an increase. Even those there has been a consistent net loss over the past two years, there was almost a 50% decline in the net lose from 2002 to Due partly to the increase in income from operations. Gross profit also ended with an increase. Fiscal Year Ended December 31, 2003 Transition Period Ended December 31, 2002 Fiscal Year Ended February 13, 2002 Gross Profit Income from Operations (loss) 20.3(10.8)(32.5) Net Income (loss) (53.3)(70.8)(104.1) In millions of dollars

Assets = Assets = Liabilities + Stockholder’s Equity December 31, 2003 $ 1,052.5 = $ 1, $ 31.9 December 31, 2002 $ 1,067.1 = $ $ $ 69.3 The greatest change in these accounts, was the decrease in stockholder’s equity which was 37.4 million dollars in However there was also an increase in liabilities of 22.8 million dollars and a decrease in assets of 14.6 million dollars. The greatest change in these accounts, was the decrease in stockholder’s equity which was 37.4 million dollars in However there was also an increase in liabilities of 22.8 million dollars and a decrease in assets of 14.6 million dollars. In millions of dollars:

In both years, cash flow from operations exceeded net income (loss). In both years, cash flow from operations exceeded net income (loss). There has been investing activities which included 11.2 million dollars in capital. There has been investing activities which included 11.2 million dollars in capital. B/E Aerospace received 175 million dollars of proceeds from long term debt. B/E Aerospace received 175 million dollars of proceeds from long term debt. Overall cash has decreased from 2002 to Overall cash has decreased from 2002 to December 31, 2003 December 31, 2004 Cash Flow from Operations (25.5)57.9 Net Income (loss) (53.5)(104.1)

Organization and Basis of Presentation Consolidation Financial Statement Preparation Revenue Recognition Income Taxes Cash Equivalents Account Receivable Debt Issuance Cost Change in Accounting for Goodwill and Identified Intangible Assets Long Lived Assets Product Warranty Cost

December 31, 2003 December 31, 2002 Working Capital (current assets - current liabilities) $ – 131 = $ 16.6 $ – = $ 20.0 Current Ratio (current assets / current liabilities) $ / 131 = 1.13 times 1.13 times $ / = 1.15 times Receivable Turnover (net sales / avg. accounts receivable) / = / 73.8 = 9.22 Avg. Days Sales Uncollected (365 / account receivable turnover) 365 / 8.10 = / 9.22 = Inventory Turnover (COGS / avg. inventory) $ / = 2.73 $ / = 3.25 Avg. Days Inventory on Hand (365 / inventory turnover) 365 / 2.73 = / 3.25 = Dollar amounts in millions

December 31, 2003 December 31, 2002 Profit Margin (net income / net sales) -.09 % -.15 % Asset Turnover (net sales / avg. total assets) Return on Assets (profit margin x asset turnover) Return on Equity (net income / avg. stockholder equity)

December 31, 2003 December 31, 2002 Debt to Equity (total liabilities / total stockholder’s equity) / 31.9 = / 69.3 = 14.40

December 31, 2003 December 31, 2002 price / earning per share Dividend Yield No paid dividends dividends