Slide 1: Hexcel 2007 Investor Meeting: 2007 Review & 2008 Outlook
Hexcel 2007 Investor Meeting 2007 Review & 2008 Outlook December 6, 2007 Faster Lighter Stronger
Slide 2: Forward-Looking Statements
Risks, Uncertainties and Other Factors with Respect to “Forward-Looking Statements” Certain statements contained in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact co
Slide 3: Delivering Results – How did we do?
Delivering Results – How did we do? Amount is based on Non-GAAP measures (see Exhibit A&B) Amounts are LTM September 2007. Q4 2006 adjusted operating income was 9.9% Overall Solid Year – Record Sales and Operating Income for Continuing Operations 2007 Sales by Market: Commercial Aero stronger than e
Slide 4: Delivering Results: Discontinued Operations masks some of the Growth
Delivering Results Discontinued Operations masks some of the Growth in the Core Business Non-GAAP Measures (See Exhibit A & B) $- $20 $40 $60 $80 $100 $120 $140 2003 2004 2005 2006 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 2003 2004 2005 2006 What we looked like including discontinued operations thru
Slide 5: We have replaced all the Operating Income from Sold Businesses
Delivering Results We have replaced all the Operating Income from Sold Businesses Non-GAAP Measures (See Exhibit A & B) $- $20 $40 $60 $80 $100 $120 $140 2003 2004 2005 2006 2007 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 2003 2004 2005 2006 2007 Sales ($Billions) Non-GAAP Operating Income ($Millions)
Slide 6: Delivering Results: More Consistent Growth – Good Operating Leverage
Delivering Results Non-GAAP Measures (See Exhibit A & B) $- $20 $40 $60 $80 $100 $120 $140 2003 2004 2005 2006 2007 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 2003 2004 2005 2006 2007 Sales ($Billions) Non-GAAP Operating Income ($Millions) Discontinued Operations -44% -27% -14% -17% Continuing Operatio
Slide 7: Consolidated Revenues Anticipated to Grow 10 to 15% in 2008
Consolidated Revenues Anticipated to Grow in Range of 10 to 15% 2008 Estimated Revenues 2008 Revenue Outlook 10 to 15% Growth Space & Defense at long term growth trend of 8% - 10% annually Commercial Aero growth 12% – 15% A380 & B787 primary contributors 2008 Hexcel Revenue Outlook 54% 21% 25% Comme
Slide 8: 2008 Outlook
2008 Outlook Continued robust growth in commercial aerospace and wind Still making investments in R&T, new product qualifications and start-up activities Q1 will have lowest OI%, due to start-up activities and stock compensation expense 2008 headwinds – weak dollar and the possible impact of oil at
Slide 9: 2008 Currency Impact on Sales and Operating Income
2008 Currency Impact on Sales and Operating Income USD EUR, GBP & Other 2008 Sales by Currency For 2008, when US$ weakens by 5%: Sales UP $25 million OI DOWN $1.5 million OI% DOWN 30 basis pts 2009 exposure is ~30% hedged 2008 FX Variation Impact Hedging program in place to reduce earnings volatilit
Slide 10: Capital Expenditure Requirements to Meet Growth
Capital Expenditure Requirements to Meet Growth Capex profile has changed dramatically over the years As Carbon Fiber Investments Ramp-up, Free Cash Flow will return Cash from Operations and Capex Trends Carbon Fiber Expansion Future direction of capex will depend upon new programs won Cash from ope
Slide 11: Continued Focus on Cash Flow
Continued Focus on Cash Flow Short Term Ratio Improvements will come from EBITDA Growth, Holding Debt Flat Productivity De-Leveraging No significant principal maturities due on debt until 2011 Benefited from $106 million (pretax) from asset sales in the last 15 months Cash provided from operating ac
Slide 12: Beyond 2008 – What could 2010 possibly look like?
Beyond 2008 – What could 2010 possibly look like? $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 Sales in $ Billion 2004 Sales Base 2005 2006 2007 S&D Wind $1.7 B ? Other Industrial Boeing Airbus Other Space & Defense C17, F22 Future? A400M Delays? V-22 Success? Helicopter Dynamics? JSF? Wind Energ
Slide 13: Hexcel
© HEXCEL ev Stronger Lighter Faster
Slide 14: Exhibit A: Non-GAAP Measures
Exhibit A Non-GAAP Measures – See Exhibit B for Reconciliation 2004, 2005, 2006, YTD Sept 07 & LTM Sept 07 Operating Leverage YTD Sept $ millions 2003 2004 04 vs. 03 2005 05 vs. 04 2006 06 vs. 05 YTD Sept 07 07 vs. 06 LTM Sept 07 B/(W) B/(W) B/(W) B/(W) Sales 730.0 $ 837.0 $ 107.0 $ 957.6 $ 120.6 $
Slide 15: Exhibit B: Reconciliation of GAAP and Non-GAAP Measures
Exhibit B Reconciles Non-GAAP Measures in Exhibit A Reconciliation of GAAP and Non-GAAP Measures LTM $ millions 2003 2004 2005 2006 Sept 06 Sept 07 Sept 07 GAAP Operating Income (1) 46.8 $ 62.1 $ 84.3 $ 103.4 $ 85.9 $ 94.2 $ 110.0 $ Business Consol & Restructuring Exp 3.9 2.5 2.9 9.9 1.7 4.1 14.0 Li