2. Forward Looking Statements
Certain statements made in the following presentations are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company's future
plans, objectives, and expected performance. The Company cautions readers that any such
forward-looking statements are based on assumptions that the Company believes are reasonable,
but are subject to a wide range of risks, and actual results may differ materially.
Important factors that could cause actual results to differ include, but are not limited to, the extent
to which the Company is successful in integrating the Aeronautical Systems businesses and
achieving operating synergies; the nature, and extent and timing of the Company’s proposed
restructuring and consolidation actions and the extent to which the Company is able to achieve
savings from these actions, as well as other factors discussed in the Company's filings with the
Securities and Exchange Commission, including in the Company's Annual Report on Form 10-K
for the year ended December 31, 2002.
The Company cautions you not to place undue reliance on the forward-looking statements
contained in these presentations, which speak only as of the date on which such statements were
made. The Company undertakes no obligation to release publicly any revisions to these forward-
looking statements to reflect events or circumstances after the date on which such statements
were made or to reflect the occurrence of unanticipated events.
3. Company Overview - Goodrich
One of the largest worldwide
aerospace suppliers
Broadest portfolio of products in
industry
Proprietary, flight critical products
Operating history of over 130 years
with recent repositioning as focused
aerospace supplier
More than 20,000 employees in
facilities throughout the world
5. Goodrich Today
Aerospace Focus - Leadership Positions - Global Presence - Broad Systems Capability - Highly Engineered Products
Goodrich
Airframe Engine Electronics
John Grisik Jack Carmola Cindy Egnotovich
Landing Gear Aerostructures Sensors
Wheels & Brakes Turbine Fuel Technologies Fuel and Utility
Actuation Engine Controls Optical and Space
Customer Services Turbo Machinery Products Lighting
Airframe Technical Service Cargo Management Systems De-Icing
EPP Power
Interior Products
Propulsion Products
6. Goodrich Today
1st Nine Months 2003 Sales - $3,253 M
Aerospace Focus - Leadership Positions - Global Presence - Broad Systems Capability - Highly Engineered Products
Heavy Airframe Boeing
Maintenance Commercial OE
IGT &
3% 9%
Other
6%
Airbus
Commercial OE
15%
Military &
OE
Space, OE &
Aftermarket
30%
AM
OE
Large Commercial Aircraft
AM
Aftermarket
Regional, Business & 25%
General Aviation
OE & Aftermarket
12%
Goodrich participates in all major aerospace market segments
7. Sales by Market Channel – 1999 – 2003E
(Percentage of Total)
100%
Other
Airbus OE
80%
Boeing OE
60% Regional, Business
& G.A.
40% Large Cmcl.
Aircraft
Aftermarket
20%
Military and
Space
0%
1999 2000 2001 2002 2003E
Significantly decreased dependence on Commercial OE
8. Goodrich Today
Aerospace Focus - Leadership Positions - Global Presence - Broad Systems Capability - Highly Engineered Products
UTC SNECMA HON Goodrich
Aerospace Sales $13B $7B $10B $4B
Nacelles #1
Engines
Power Generation #2
Sensors #1
APUs
Avionics
Electronic Controls #1
Flight Ctrl/Actuation #1
Environmental Controls
Landing Gear #1
Lighting #2
Wheel/Brakes #2
Evacuation Systems #1
Cargo Systems #1
Space Systems
Goodrich has the broadest portfolio of system leadership positions
10. Commercial OE
Airbus
700
Boeing
600
Balanced duopoly
Airplane Deliveries
500
Airbus gaining on Boeing 400
300
Market flat near term 200
100
Recovery begins in 0
2005-2006
1992
1994
1996
1998
2000
2002
2004 Est.
Active Commercial Fleet 2012
Active Commercial Fleet 2003
Airbus
Airbus
Boeing
3,296
Boeing 6,263
12,160
11,436
Source: Airline Monitor
11. Commercial OE - Airbus
Fleet Aging
8,500
8,000
7,500
CAGR of
7,000
14.2% for
6,500
aged 5 yrs or
Number of Planes
6,000
greater
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
aged less than 5 yrs aged 5 yrs or greater
Source: GR Estimates
Airbus fleet aging drives aftermarket growth for suppliers
12. Regional Jets
Regional Jet Deliveries
Bombardier Embraer
Airlines eliminating 300
scope clauses
200
Encroaching on Large
Commercial model 100
sizes
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Embraer and Large RJ’s Continue to Gain Share (19-100 Seat A/C)
Bombardier primary (Deliveries in $ Billions)
$8
suppliers
$6
New Chinese and $4
Russian market
entrants $2
$0
'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Source: GR Estimates Props 30/50-seat Jets 60/100-seat Jets
13. Regional Jets
Fleet Aging
6,000
CAGR of
28.2% for
5,000
Number of Planes
aged 5 yrs or
greater
4,000
3,000
2,000
1,000
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201 201 2015
3 4
aged less than 5 yrs aged 5 yrs or greater
RJ fleet aging drives aftermarket growth for suppliers
Source: GR Estimates
14. Aftermarket
ASM, RPM Forecast (yr/yr) - Airline Monitor, GR Est.
Driven by ASMs, fleet size & RPM ASM
10%
GDP 9%
8%
7%
6%
2004 expected to recover 5%
slightly 4%
3%
2%
1%
Airline inventory management 0%
2003 2004 2005 2006 2007 2008
2003 Global MRO Market ($B)
Above average growth rates Airframe Engines Components Line Maintenenace
possible over next several 23% 29%
years 19%
29%
Source: Back Aviation
CAGR (’03-’08) = 4.2%
Uncertainty remains in near-term aftermarket forecasts
15. Military & Space
US Defense Spending ($B)
Market is global Procurement & RDT&E Intelligence
New fighters driving 200
growth
160
Intelligence, Transports
120
and Rotorcraft Markets
growing 80
Transformational spending 40
underway 0
2002 2003 2004 2005 2006 2007 2008
Growth opportunity
Source: DoD
Military Transports The World Rotorcraft Market World Fighter Market
(Units Delivered) (Market Value in '03$ Billions) (Units Delivered) (Market Value in '03$ Billions)
80 6
(Units Delivered) (Market Value in '03$
Bns)
500
1,000
5 8
60 15
400
800
4
6
40 3 600 300
10
4
2
400 200
20
5
1
2
200 100
0 0 Source: Teal Group
'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 0 0 0 0
'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Source: Teal Group
Units Value Source: Teal Group
Source: Teal Group Units Value
Units Value
16. Market Summary
Commercial aerospace OE market is at bottom but recovery
projected in 2005-2006
Airbus gaining market parity with Boeing
Low cost carriers winning market share
Commercial aftermarket expected to recover slightly in 2004,
higher growth in 2005 and beyond
Stable regional jet deliveries; rapidly growing aftermarket
Military market continues to present growth opportunities
Significant opportunity for growth over the cycle
18. Building Goodrich Aerospace
Build Platforms
Achieve Critical Mass
(Sales=$4 B)
Innovator
Grow • Differentiate
(Sales $1-2 B)
• Commercialize technology
• Export technology
• Exploit technology
Sales
Consolidator
Niche Player
• Opportunistic deals
(Sales= $200 M)
• Strategic bolt-ons
• Acquirer / survivor
• New platforms (space)
• Assemble system platforms
• Acquire technology
Operational Excellence • Attractive niche positions
• Innovation training
• Alliances
• Aerospace brand • Lean
• Customer relationship management
• Efficiency • Integration of acquisitions
• E-commerce/SCM
• Quality • Exploit synergies
• Talent
• Culture
1985 1990 1995 2000
Goodrich has grown from a niche player to an industry leader
19. Goodrich Strategic Imperatives
Balanced Growth
Faster than the overall market
Win key positions on new aircraft (e.g. 7E7)
Migrate commercial products/technologies to military
applications
Penetrate adjacent markets
Leverage the Enterprise
Resource allocation
Technology/Innovation
Enterprise-wide initiatives
Customer alignment/focus
Operational Excellence
Integrate Aeronautical Systems
Lean manufacturing/Six Sigma
Make/Buy analysis
Successful implementation will enable Goodrich to compete/win in all
business environments
20. Enterprise-wide Initiatives
Supply Chain Management
Information Technology
Human Resources
Continuous Process Improvement
Lean Manufacturing
Six Sigma
New Product Design/Build Processes
Incentive Compensation Alignment
Enterprise-wide initiatives significantly improve alignment across
segments
21. Goodrich Strategic Initiatives
Successful implementation is expected to
result in:
Continued cost competitiveness
Organic Growth above market trends
Significant improvement in segment
operating margins
Continued strong cash flow
Sustainable value creation
22. New Programs Will
Accelerate Future Growth
Military
Commercial
Joint Strike
CF34-10 Nacelle
Fighter
A380 Program System C-5 Re-Engine
$1.4 Billion+*
$6 Billion+* $5 Billion+* $0.8 Billion+*
2005**
2005** 2006** 2004**
Cockpit Door Video
Universal Control Program
Surveillance System
$0.1 Billion+* $0.5 Billion+*
2003** *Total estimated sales over life of program 2005**
** Year in which significant sales are expected to begin
23. Expected Future Sales from
New Programs
Dollars in Millions
$500
Annual Expected Future Sales for:
$450 • A380 Program
• CF34-10 Nacelle System
$400 • JSF Program
• C-5 Re-engine Program
$350 • Cockpit Door Video Surveillance System
• Universal Control Program
$300
$250
$200
$150
$100
$50
$0
2002 2003 2004 2005 2006 2007 2008
New program sales are incremental to sales growth from existing
in-production platform positions
25. 2003 Financial Outlook
Actual 2002 2003 Outlook
Sales $3.8B $4.3 - $4.4B
(around mid-point)
Diluted earnings (loss) per share
Continuing operations $1.55 $0.33 - $0.43
Discontinued operations ($0.07) $0.52
Cumulative effect of change in accounting ($0.34) --
Diluted E.P.S. – Net Income $1.14 $0.85 - $0.95
Cash flow from Operations $524M > $450M
Including: Cash outflow for facility
closures and headcount reductions ($52M) ($50 - $60M)
Capital Expenditures ($106M) ($120 - $140M)
26. 2004 Outlook Assumptions
Recovering Recovering
Global Airline
Economy Profitability
GR No New
Global ASM
Macro Market
Growth 3-5% Disruption
Assumptions
(Terrorism, SARS)
Stable/Small
Increase in 7E7 Launch
Interest Rates Late 03/Early 04
27. 2004 Sales & Margin Expectations
Margin Considerations
Sales Growth Expectations
Goodrich
Restructuring benefits
2003 YTD Market 2004 Market
Growth
Improving AS results
Sales Mix
24% Boeing/Airbus OE Slight
Improving mix with
decline
Aftermarket growth
5% Regional, Flat
Productivity initiatives
Business & GA OE
32% Aftermarket 3-5%
A380 development costs peak
(Comm & Regnl)
in 2003; 7E7 offset??
Continued pricing pressure
30% Military & Space ~ 10%
(Total) (Similar to
Pension costs flat vs. 2003
2003)
9% IGT/Other Flat
Expect Margin Expansion
Expect Low Single Digit
Beyond Sales Growth
Growth for GR
28. 2004 Summary
Low single digit revenue growth
Margin expansion
$20-25 Million headwind in selected areas
Capital expenditures increase over 2003
(new programs, productivity, cost reduction)
Cash flow from operations less capital
expenditures should exceed net income
Several unknowns cloud outlook
Expect to Issue Formal Guidance
With Year End Earnings Release
29. Near Term Risks & Opportunities
GR Positioning
Risks
Capacity downsizing near completion
Slower Commercial Market Recovery Long term cost reduction focus
Event risk Enterprise initiatives
Portfolio balance
Large cash balances
Liquidity/Capital Markets New revolver
No current debt maturities
Positive net cash flow last 10 Qtrs
Organizational transition complete
AS Execution/Integration Major headcount reductions complete
Most SBU’s profitable
Strong purchase contract
A380 peaks in 2003/limited technical risk
New Program Investments 7E7 investment/timing uncertain
Manageable Risks
30. Near Term Risks & Opportunities
GR Positioning
Opportunities
Capacity in place
Faster Commercial Recovery
Substantial upside leverage
Airline/OE outsourcing
Working capital reductions
Higher Cash Generation
Further portfolio pruning
Accelerate debt retirement
Supply chain management
Enterprise Initiative Savings
($2B annual spend)
Shared services
31. Summary - Goodrich Attributes and Actions
Top tier aerospace supplier
Diversified, balanced business mix
Proprietary, flight critical products
Strong cash flow
Taking aggressive actions to align cost structure with current
demand
Experience managing operations in challenging markets
Focused on Aeronautical Systems integration and turnaround
Committed to maintaining a conservative financial profile and
investment grade ratings
All future reporting and outlook to be only on a GAAP basis
Focused on what we can control
32. What Investors Should Expect from Goodrich
Continued commitment to integrity
Transparency of financial results and disclosure
No significant acquisitions
Reduce leverage to target levels
Focused on the business
• “Blocking and Tackling”
- Cash flow
- Margin improvement
- Aeronautical Systems integration
- Working capital management
• New product development
- Continue investing in new products and systems
Accountable to all stakeholders
33. Questions and Answers
Jefferies Quarterdeck
Aerospace Defense
and IT Services Conference
December 3, 2003
