Hawk — Cowen and Company 31st Annual Aerospace/Defense Conference (February 2010)
17 slides from Hawk's conference presentation, Feb 10, 2010
Slide 1: Cowen and Company 31st Annual Aerospace/Defense Conference
Cowen and Company 31st Annual Aerospace/Defense Conference February 10, 2010
Slide 2: Forward-Looking Statement
Forward-Looking Statement The information provided at the meeting today will include forward-looking statements relating to our sales, income from operations, depreciation and amortization, our worldwide markets, our growth in relation to end markets we serve and reinvestment of cash. Forward-lookin
Slide 3: Hawk Corporation: Leading Supplier of Specialty-Engineered Friction Components
HAWK CORPORATION A LEADING WORLDWIDE SUPPLIER OF SPECIALTY- ENGINEERED FRICTION COMPONENTS
Slide 4: Investment Highlights
Investment Highlights A leading supplier of friction products covering a broad range of brake, clutch and transmission systems for over 50 years Worldwide leader of highly engineered friction products to diverse aircraft, military, industrial and performance consumer markets Approximately 80% of Haw
Slide 5: Aerospace & Defense Brake Components
Aerospace & Defense Brake Components Aerospace @ Commercial Aircraft @ Regional Jets @ Cargo Planes @ General Aviation Military e Helicopters @ Hummers ° Aircraft
Slide 6: Aircraft/Defense Market
Aircraft/Defense Market e Hawk is one of the largest suppliers of steel brake friction for the global Aerospace market. — Products: Steel brake rings, cups & insulators. — Friction Technology: Ceramic, Organic, Semi- Metallic, Sinter Metallic & Steel. — Customers (Short List): MABS, Goodrich, Dunlop
Slide 7: Leading Supplier of Friction Materials for Braking Systems
Leading Supplier of Friction Materials for Braking Systems @ Sole source steel brake provider to Goodrich and MABS @ New and existing series of many commercial and military aircraft models including: © Boeing e EADS ° Lockheed © United Technologies © Canadair regional jet series
Slide 8: Largest Supplier of Friction Material for General Aviation Market
Largest Supplier of Friction Material for General Aviation Market @ Sole source GA steel brake provider to Goodrich, MABS, and Parker @ Includes numerous new and existing series of: © Cessna ¢ Hawker e Lear ¢ Pilatus aircraft
Slide 9: Leading Friction Products Supplier in Military Applications
Leading Friction Products Supplier in Military Applications @ Leading supplier of brake & transmission friction material @ Tracked & wheeled vehicles ere @ Aircraft applications include: ¢ C-130 Hercules © C-141 Starlifter e T-45 Goshawk e T-6 Texan e A-10 Thunderbolt e UH-60 Blackhawk 9 © AH-64 Apa
Slide 10: Hawk serves some of the world's best known companies
Hawk serves some of the world’s best known companies wr GOOGRICH SaletSckSS- MEGGITT CATERPILLAR SParker S @ carraro @e E-TN JOHN DEERE
Slide 11: Revenues by Market
Revenues by Market YTD 9/30/2009 ‘Alternative Energy ‘Aerospace & Defense 22% 28.6% Performance Racing Specialty Friction 3.4% Construction and Mining 34.1% 78% Agriculture 14.5%
Slide 12: Technology Initiatives
Technology Initiatives Carbon-Carbon composite technology © Proprietary technology - Reduces lead time up to 80% dramatically increasing service levels and reducing working capital (Industry standard lead times 6-9 months) ¢ Available market expands far beyond friction applications to include therma
Slide 13: YTD Consolidated Income
YTD Consolidated Income For the period ended September 30 Revenue $126.8 $211.8 Gross profit $34.0 $63.6 Gross profit % 26.8% 30.0% Operating income $11.8 $33.7 Operating income % 9.3% 15.9% Net income $4.8 $18.4 Diluted EPS $0.55 $1.95 Cash and Investments $86.3 $93.3
Slide 14: Consolidated Income Statement
Consolidated Income Statement (in millions) 2007 2008 2009 lance Revenue $215.9 $269.6 $165.0 - $175.0 Gross profit $51.4 $77.4 Gross profit % 23.8% 28.6% Operating income $19.5 $39.2 $15.0 - $17.0 Operating income % 9.0% 14.5% Income from continuing operations, after tax $7.8 $22.6 Diluted EPS from
Slide 15: Growth Opportunities
Growth Opportunities Product extensions Rotors Technologies Carb Paice FRICTION cliedy Elastomeric ) CORE Materials BUSINESS Techniques Pressed Grooves
Slide 16: Investment Summary 2010
Investment Summary 2010 Adopted strategic focus on friction Targeted uses of liquidity: * Senior Note consent/Stock Buyback program * Acquisitions * New technologies * Global expansion and market strength Business base * Red hot focus on operations ° Steady, diverse end-market growth ¢ “Lean” manufa
Slide 17: ‘ORATION —~
y y ‘ORATION —~
Hawk — Cowen and Company 31st Annual Aerospace/Defense Conference (February 2010) on 6ix