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Jefferies 2013 Industrial Conference Investor Presentation

August 13, 2013

Forward-Looking Statements Disclaimer


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 constitute forward-looking statements and accordingly, involve estimates, assumptions, judgments and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking statements. Such factors are detailed in the Forward Looking Statements and Risk Factors sections of the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2012 and its second quarter 2013 quarterly report on Form 10Q with the Securities and Exchange Commission. We do not undertake an obligation to update our forward-looking statements to reflect future events.

2013 Hexcel

Hexcel Overview
Leading advanced composites company 65 years in the industry Focused on aerospace and wind FY 2012 sales of ~$1.6 Billion Sales by region: ~46% US, ~43% Europe and ~11% Other About 5,000 Employees primarily split between Americas and Europe

Investment Highlights
Leading position in all of our key markets High barriers to entry Sustainable competitive advantage Technology leader, broad range of products/qualifications Excellent customer relationships Growing share of long term growth markets Cyclical and secular growth combined Demonstrated operational excellence Strong balance sheet (net debt/EBITDA < 1x)

2013 Hexcel

Hexcel Leader in Advanced Composites


Carbon Fiber
A350 fuselage F-35 wings

Glass Prepregs
Wind blades Wing-to-body fairings in aero

Key properties Fatigue and corrosion resistant Light Weight (density) High Strength (tensile) Stiffness (modulus)

Reinforcements
Aircraft radomes Lamborghini roof

Honeycomb
Helicopter blades Aircraft flooring Nacelle structures Acousti-Cap

Carbon Prepregs
A380 Fuselage beam GE90 Fan blade Eurofighter Tail

Engineered Products
Structural Assemblies HexMC parts Machined Core HexTool Tooling System

Broad Range of Composite Materials and Applications


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2013 Hexcel

Technology Requirements and Focus


Weight (density) 30% Lighter than aluminum
Application: Long Range Aircraft - Fuel Burn
Lighter

Strength Carbon prepreg = 5x aluminum


Application: Helicopter & Fan Blade Reliability

Stiffness Carbon prepreg = 2x Glass


Application: Composite wing, wind blade deflection

Toughness Damage tolerance


Application: Primary structure, Fan blades, Automotive

Stronger

Durability Up time / keep them flying


Application: Aerospace

Technology is a Key Driver for Future Growth


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2013 Hexcel

Sales by Market
Helicopters Military Aircraft Launch Vehicles Satellites Industrial
2004 2005 2006

Space & Defense

LTM Q2 2013 Sales $1,618 Million

Wind Energy Recreation Transportation Other

Space & Industrial Defense

23%

14%

YoY Growth Rates


15% 14% 10% 12% 13% -16% 6% 19% 13% 7%

62%
Commercial Aerospace Airbus Boeing Engines/Nacelles Regional/Business

2007 2008 2009 2010 2011 2012 LTM Q2 2013

Commercial Aerospace

Growing Share of Long Term Growth Markets


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2013 Hexcel

14%

Industrial Market
Wind Energy Tooling Recreation

Industrial Revenues
Glass Prepreg
$267 $280 $227 $294 $313 $253 $218 $249 $277 $234

Transportation

Glass and Carbon Prepreg

2004 2005 2006 2007 2008 2009 2010 2011 2012 LTM Q2 $ millions 2013

Broad Range of Performance Applications Wind Energy Drives Industrial Market Segment
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2013 Hexcel

23%

Space & Defense Market


Diverse Range of Applications
Carbon Fiber Prepreg the standard since B-2 Over 100 Active Programs for Hexcel, includes: Transport Aircraft Fighters Helicopters Launch Vehicles Over a third of sales outside the U.S. Top 10 Programs: Represent a little more than 50% of Segment V22 is largest program but <15% of Segment

Space & Defense Revenues


$ millions $357 $319 $302 $299 $311 $201 $220 $222 $256 $377

2004

2005

2006

2007

2008

2009

2010

2011

2012

LTM Q2 2013

F-35 Joint Strike Fighter (JSF)

Hexcel Positioning
Hexcel Intermediate Modulus (IM) fiber the industry standard Rotorcraft ~60% of sales and growing New composite blade designs providing retrofit opportunities More Hexcel value-added content JSF, A400M growth ahead

Space & Defense Revenues Well Diversified


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2013 Hexcel

Space and Defense Outlook Overall

Fixed Wing Phasing Out (C17, F18, F22)

New Fixed Wing (JSF, A400M)

All Other

Last Five Years Rotorcraft Growth Offsets Declines In other Programs

Next Five Years New Fixed Wing Programs lead Growth Helos cover V22 cuts

Rotorcraft

Today

Continued Single Digit Growth Expected


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2013 Hexcel

62%

Commercial Aerospace Market


Strong Global Demand Commercial Aerospace Revenues
$ millions
$710 $556 $823 $645 $944 $1,007 $622

9,800+ planes in Airbus & Boeing backlog or over 7 years based on est. 2013 deliveries 2012 was, and 2013 is expected to be, another record year for deliveries Introduction of new composite-intensive aircraft provides Hexcel secular sales growth New programs (B787, B747-8, A350 & A380) make up over 30% of Commercial Aerospace sales

$547 $409 $470

2004 2005 2006 2007 2008 2009 2010 2011 2012 LTM Q2 2013

Airbus and Boeing

Business and Regional Jet

Commercial Aerospace Revenue by Sub Segment


Regional & Business 15%

Boeing 45%

Airbus 40% LTM Q2 2013

Growth led by Increasing Buildrates and New Aircraft Programs


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2013 Hexcel

Airbus & Boeing Orders, Deliveries, & Retirements


10,000 9,000 8,000 7,000 Backlog
793 orders in 1H 2013, 2,036 Orders in 2012, 2,224 Orders in 2011 4 Year Order Avg: 855/yr 4 Year Order Avg: 940/yr 4 Year Order Avg: 2,021/yr

10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000

Deliveries

6,000 5,000 4,000 3,000 2,000 Total Airbus & Boeing Deliveries 1,000 0

2012 Record Deliveries & 2013 expected to be higher

1,189 1,000 0

Source: Airbus & Boeing websites

Orders Doubled vs. Previous Cycles, but this Time OEMs Didnt Overbuild
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2013 Hexcel

Backlog

Commercial Aerospace Composites Penetration


Composite Content by Weight
Now over $4M per A/C, Will be Hexcels largest program overall
High
787 A350

50+ %

Hexcels best overall Boeing Program

A380

23%
Over $3M per A/C

A340 -500/600 A320 B777 A340

10-15%

Low
A310
1980

B767
1985

4-6%
1990 1995 2000 2005 2010 2015 HS Carbon Fiber Prepregs IM Carbon Fiber Prepregs

Glass Fiber Prepregs

Step Change with IM Carbon Fiber Prepreg as the new Workhorse Hexcels Specialty
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2013 Hexcel

Commercial Aerospace Composites Penetration


Growing Penetration of Composites
Hexcel content on New Programs up to 5X the composites of older aircraft they replace Each bubble represents Hexcels current $ per shipset x number of planes in Airbus and Boeing backlog

$7
Relative Hexcel Content per Plane $M

$6 $5 $4 $3 $2 $1 $0 -$1 -$2
Narrow Body ( A320, A320neo, 737 & 737 MAX)
Legacy Wide Body A380 Super Jumbo

+
New A350 Wide Body

Wtd Avg of Backlog New Programs $/Aircraft

New 787 & 747-8 Wide Body

Wtd Avg of Backlog Legacy $/Aircraft

New aircraft now represent about 30% of Hexcel Commercial Aerospace sales

1st Half 13 New Program Sales are more than twice 2010 run rate, and the Ramp-up is Just Beginning
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2013 Hexcel

Hexcel Proven Performance


$ millions; LTM 13 = LTM Q2 2013

Sales
$1,618 $1,800 $1,578 $1,600 $1,392 $1,325 $1,400 $1,174 $1,171 $1,200 $1,108 $1,050 $958 $1,000 $837 $800 $730 $600 $400 $200 $0

Adjusted Operating Income


$300 $250 $200 $150 $100 $50 $0 $45 $65 $135$145 $133 $115 $111 $102 $249 $239 $189 $170 $150 $130 $110 $90 $70 $50 $30 $10 ($10)

Adjusted Net Income


$159 $125 $80 $62 $169

$70 $46 $49 ($9) $10

$78

Return on Capital
18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 11.7% 12.5% 11.2% 11.7% 10.9% 9.9% 9.4% 6.3% 14.7% 14.1% 14.0% 6.0x 5.0x 4.0x 3.0x 2.0x 1.0x .0x

Net Debt / Adjusted EBITDA


5.3x 3.9x 3.x 2.7x 1.8x 1.7x 1.7x 1.1x .8x .7x .8x $1,100 $900 $700 $500 $300 $100 ($100)

Stockholders Equity
$1,041 $994 $802 $659 $576 $509 $428 $302 $211 ($24) ($93)

Record Results and Well Positioned for Growth


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2013 Hexcel

Summary Outlook

Build rates and new programs should result in double digit growth for years to come for Commercial Aerospace market Cost control, increased in-house carbon fiber and productivity initiatives should deliver 23% incremental Operating Income leverage Over the mid-term, we expect to generate significant Free Cash Flow with capital expenditure spending average less than $200 million per year Our Priorities for Cash Usage:
1. Organic Growth Investing in R&T and Capacity to support expected Demand 2. M&A opportunities Technology, adjacencies or bolt-on that fit Focus 3. Return to shareholders ($50 million share repurchase completed in 1H 2013 and an additional $150 million recently authorized)
We are a technology driven company focused on Advanced Composites, targeting markets with long term growth potential where we can establish a sustainable, competitive advantage

Balance Sheet and Outlook to Deliver Growth (Organic + M&A) and Return to Shareholders
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2013 Hexcel

Investor Presentation: Exhibits

Exhibit A Q2 2013 Results


First Quarter and LTM Results
$ millions except EPS

YoY % Q2 2012 Q2 2013 Change $399 26.4% $64.4 16.1% $0.42 $423 27.6% $71.9 17.0% $0.48 14% 12% 6%

LTM Q2 LTM Q2 YoY % Change 2012 2013 $1,506 25.5% $223.0 14.8% $1.57 $1,618 26.2% $249.1 15.4% $1.65 5% 12% 7%

Net Sales Gross Margin% Adj. Operating Income Adj. OI% Adj. Diluted EPS

Q2 comments: Record sales, gross margin ($ and %), adj OI ($ and %) and adj Net Income Commercial Aero sales remain strong -- increased 15.1% in constant currency S&D sales also remain strong -- increased 9.3% in constant currency Industrial sales (including wind) weak across the board, down nearly 29%. But up 8.5% over Q1 2013

Growth with Improved Productivity


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2013 Hexcel

Exhibit D Adjusted Operating Income


Reconciliation of GAAP and Non-GAAP Measures
$ millions GAAP Operating Income Litigation Settlements/Legal Fees Gain on Sale of Lane (1) Other Operating Expense (2) Environmental Expense (3) Business Consol & Restructuring Exp. Non-GAAP Operating Income Non-GAAP Operating Income % of sales GAAP Operating Income % of sales 2008 $ 130.9 2.7 7.6 3.8 $ 145.0 10.9% 9.9% 2009 $ 103.7 7.5 (1.7) 1.7 $ 111.2 10.0% 9.4% 2010 $ 129.8 3.5 $ 133.3 11.4% 11.1% 2011 $ 192.0 (5.7) 2.7 $ 189.0 13.6% 13.8% 2012 $ 248.8 (4.9) (9.6) 5.0 $ 239.3 15.2% 15.8% YTD June 30, 2012 2013 $ 134.5 (9.5) $ 125.0 15.6% 16.8% $ 134.9 $ 134.9 16.1% 16.1%

1) 2012 includes gain of $4.9M from sales of land. 2) Other operating expenses include $9.6M from business interruption insurance settlement, $5.7M benefit from curtailment of a pension plan in Q1 2011, $1.7M adjustment to prior year gain on sale of operations in 2009, $2.7M of US pension settlement in 2008, and $9.4M of expense related to partial settlement of US Pension and $3.2M associated with the impairment of purchased technology and fixed assets in 2007 3) Environmental charge of $5.0M, $2.7M, $3.5M, $1.7M and $7.6 million in 2012, 2011, 2010, 2009 and 2008 respectively, reflect charges related to environmental remediation liabilities for sold facilities

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2013 Hexcel

Exhibit E Adjusted Net Income


Reconciliation of GAAP and Non-GAAP Measures
$ m illions

GAAP Net Income Litigation Settlements/Legal Fees Gain on sale of assets (net of tax)(1) Other Operating Expense (net of tax) (2) Environmental Expense (net of tax) (2) Acceleration of Deferred Financing Costs Loss on early retirement of debt (net of tax) Tax Adjustments (3) Non-GAAP Net Income

2008 $ 111.2 (11.7) 1.7 4.7 (26.2) $ 79.7

2009 $ 56.3 5.6 (1.1) 1.1 $ 61.9

2010 $ 77.4 2.2 4.3 (6.4) $ 77.5

2011 $ 135.5 (4.1) 1.8 3.0 (11.3) $ 124.9

2012 $ 164.3 (3.1) (6.0) 3.2 0.7 $ 159.0

YTD June 30, 2012 2013 $ 87.6 $ 92.1 (6.0) 0.7 0.6 $ 82.3 $ 92.7

1) 2012 includes the after tax gain from sales of land. 2008 includes a $11.7 million after tax gain from the sale of our share in BHA Aero Composites Parts Co. Ltd. 2006 includes $9.6 million after tax gain from the sale of our 50% share in Clark-Schwebel Tech-Fiber Company 2) Represents the after tax impact of the adjustments described on the preceding page 3) Represents tax benefits resulting from the reversal of valuation allowances or tax credits recorded that relate to activities from a prior year

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2013 Hexcel

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