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Goodrich Corporation
Third Quarter 2008 Results

October 23, 2008
Forward Looking Statements

    Certain statements made in this presentation 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: demand
    for and market acceptance of new and existing products, such as the Airbus A350 XWB and A380,
    the Boeing 787 Dreamliner, the Embraer 190, the Dassault Falcon 7X, and the Lockheed Martin F-
    35 Lightning II and F-22 Raptor; the health of the commercial aerospace industry, including the
    impact of bankruptcies and/or mergers in the airline industry; global demand for aircraft spare
    parts and aftermarket services; and other factors discussed in the Company's filings with the
    Securities and Exchange Commission and in the Company's October 23, 2008 Third Quarter 2008
    Results press release.

    The Company cautions you not to place undue reliance on the forward-looking statements
    contained in this presentation, 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.


2
Commercial Aerospace Environment




3
Fuel Price and GDP Growth
                                                                                         Historical and Forecast
                          Oil Price                                                Economic Growth Forecasts
                   (2003 to Oct. 15, 2008)                                              (2006 to 2011)
    $/bbl                                                               Real GDP


                                                                                                                Emerg. Asia



                                                                                                                Mideast
                                                                                                                GLOBAL
                                                                                                                South Am.
                                                                                                                Dev. Asia
                                                                                                                North Am.
                                                                                                                Europe



      2003      2004      2005     2006      2007     2008

     Oil prices increased up to four-fold since                            The global economy is slowing
     2003 but have since retreated                                         Emerging markets continue to grow faster
     This spike contributed to airline operating                           than the developed economies
     costs rising by ~25%1                                                 Thus economic conditions are expected
     A weaker dollar has provided temporary                                to affect the industry differently by region
     relief to non-US carriers
             Note: 1Based on reported Q2 2008 results
4
             Source: Seabury Aerospace, Bloomberg (oil prices); IMF WEO October 2008 (GDP),
Global Passenger Capacity
                                                                                           Year-over-Year Growth

    Year-over-Year Change in Available-Seat-Miles (ASMs)1

               Economic                        Economic                                           Economic
               recovery                        recovery                                           recovery




                                                                                                             Gulf War II
                                                                                                             and SARS
                                                                                                              outbreak



                                                        Gulf War I and                   9/11 and 2002
             1981 recession
                                                        1991 recession                     recession
              and oil spike

      Airline capacity is highly correlated with economic growth
      Global capacity has grown an average 4-5% over the past 30 years
      During that period, global capacity has only contracted three times – a slight decline
      during the 1981 & 1991 recessions and a larger decline after 9/11
      Periods of contraction have been quickly followed by above-trend growth
           Note: 1US market used as proxy for world 1980-1990; global data used for 1991-2008
5
           Source: Seabury Aerospace, Airline Monitor
Global Passenger Capacity
                                                                                 2007-2009 Growth
    Year-over-year change in Available-Seat-Miles (ASMs)


           8%

           6%
                                                            Full Year
           4%                                                 2008



           2%                                                                                  Q4
                                                                                              2009
                                                                         Q1     Q2     Q3            Full Year
                                                                        2009   2009   2009             2009
           0%                               Q3
                          Q1       Q2
                                           2008
                         2008     2008                Q4
                                                     2008
          ‐2%
                                      2008FΒ vs.Β 2007                             2009FΒ vs.Β 2008F
          ‐4%
      For most of 2008, capacity was increasing near historical average
      Rising fuel prices drove airlines to cut capacity in the backend of 2008
      Impact of capacity cuts are expected to be fully felt in 2009 as carriers maintain implemented cuts due
      to operational constraints and concerns about slowing demand
           Note: Scheduled passenger capacity only
6
           Source: Seabury Aerospace
Expected Aircraft Retirements
                                                                                                          2008-2009

    Aircraft1
                         943

                                                                                             773




                                                                                                        170




            As a result, airlines continue to ground aircraft
            Almost all announced and implemented capacity cuts have been old-gen aircraft
            MD80/90, DC9, and 737-300 aircraft continue to be attractive to replace at lower oil prices
            Despite the decline in oil prices, airlines have reaffirmed many of their retirement plans

          1Expected retirements from Nov. 2008 to end of Nov. 2009
          Note: Scheduled passenger aircraft only; excludes potential for later return-to-service
7
          Source: Seabury Aerospace, Announced capacity cuts
Capacity By Region
                                                                                             2007-2009 Growth
      Year-over-Year change in Available-Seat-Miles (ASMs)

        10%
                                                                                                 2008FΒ vs.Β 2007
                                                                                                 2009F vs. 2008F

         6%


         2%


                  North          Europe        Dev.Β Asia        Emerg.     MideastΒ &    South            World
        ‐2%
                 America                                         Asia       Africa     America

        ‐6%

    % of total
                    31%             25%            15%             15%        10%         4%               100%
    capacity1

     Capacity cuts have been most dramatic and urgent in North America
     Europe and Developed Asia have started to reverse previous growth
     Emerging Asia and Middle East continue to grow, albeit much more slowly

           Note: Scheduled passenger capacity only; 1Based on 2009 split
8
           Source: Seabury Aerospace
Large Commercial Aircraft
                                                    Estimated Capacity Growth from 2008 to 2009
                 In-Production                      Slowing or Recently                            Long Out-of-Production
                                                     Out-of-Production
    Year-over-Year change in
    Available-Seat-Miles (ASMs)




                                                                                                                               (After '08/'09 retirements)
                           60%                                         27%                                              13%

% of total
              20%     16%      15%      9%             9%        7%        6%         5%           6%         3%         1%         1%            2%
capacity1

          In-production aircraft are not targeted for grounding to achieve desired capacity cuts
          In-production aircraft utilization rates have not dropped and are unlikely to fall
          2009 production rates have only been slightly adjusted by OEMs2
          Therefore, in-production ASMs are expected to continue to grow and gain share of global capacity
         Note: Scheduled passenger capacity excluding regional jets; 1Based on 2009 daily average excluding A380 and 787 which remain small share;
         2Excludes impact of continued Boeing strike
9
         Source: Seabury Aerospace
Large Commercial Aircraft
                                                                           Fleet Demographics vs.
                                                                        Goodrich Aftermarket Sales


     In Service Fleet Demographics                                    Goodrich Aftermarket Sales
                 (1/1/08)                                               Distribution (Est. 2008)


                                                                                             In
               In                                                                        Production
           Production                                                                       80%
                         Long Out-of-    Long O
              60%                               ut-of-P
                          Production                   ro
                                        707
                                               727 7 duction
                                                       4
                                        A310
                                              DC8 D 7C 737C
                             31%
                                                      C9 DC
                                        MD80                           Long Out-of-
                                              L1011         10
                                                                      Production 8%

                                                                                 4%
                                             Long Out-of-Production
                                               (Less Vulnerable)
                               2%                MD11 MD90
                  Recently
                                                                         Recently Out-
                   Out-of-
                                                                         of-Production
                 Production                                                   8%
                    7%



        Goodrich currently expects commercial aftermarket sales to grow 4 – 7 percent in 2009,
                                        compared to 2008
10
A320 Deliveries and Installed Base
Delivered Units                                                                                               Installed Base
     450                                                                                                               6000
                                           Actual                                                 Estimated
     400
                                                 Installed
                                                                                                                       5000
                                              base/deliveries
     350                                     subject to major
                                             overhaul in 2008

     300                                                                                                               4000

     250
                Installed                                                                                              3000
             base/deliveries
     200    subject to major
            overhaul in 2001

     150                                                                                                               2000

     100
                                                                                                                       1000
      50

       0                                                                                                               0
           1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

                                           A320 Family Deliveries    A320 Family Installed Base


                        2002 – 2003 aftermarket sales based on installed base as of 1995,
                  2008 and on sales based on deliveries and installed base in 2001 and beyond
11
      Source: Airline Monitor, July 2008
Large Commercial Airplane Delivery Forecast
             1,200
                                                 Potential Impact
                                                 of Boeing Strike
             1,000


              800
     Units




              600


              400


              200


                0
                     2002   2003   2004   2005   2006   2007        2008   2009   2010   2011   2012   2013

                                                 Actuals    Goodrich outlook
         OEMs have only slightly adjusted production growth rates, and are maintaining discipline
         in managing the downturn
         Record backlogs also afford flexibility, with some airlines seeking earlier delivery slots
         while others look to defer
         Demand remains high in Middle East and China (and strongest European and American
12
         carriers)
Financial and Operational
            Highlights




13
Third Quarter 2008 Highlights

     Increased quarterly dividend to $0.25 per share, an 11 percent increase
     over the previous quarterly dividend of $0.225 per share of common stock

     Received a contract from the U.S. Army to provide up to 1,000 Vehicle
     Health Management Systems for UH-60A/L Black Hawk helicopters
        The five-year Indefinite Delivery, Indefinite Quantity contract is valued at up to
        $300 million and covers deliveries through 2013

     Selected by Airbus to supply the air data system and ice detection system
     for the new A350 XWB commercial aircraft
        The awards are expected to generate more than $600 million in original
        equipment and aftermarket revenue over 20 years

     Goodrich and Rolls-Royce signed a Letter of Intent proposing the
     formation of a joint venture company which would develop and supply
     engine controls for Rolls-Royce aero engines
        Goodrich would retain the aftermarket products and services business
        associated with the joint venture's products
        Expect to complete the JV around year-end 2008
14
Third Quarter 2008 Results and
                                                               Full Year 2008 Outlook
     Third Quarter 2008 Results
         Third quarter 2008 sales of $1,772 million increased 11 percent over third
         quarter 2007 sales of $1,602 million
         Third quarter 2008 income per diluted share of $1.33 increased 34 percent over
         third quarter 2007 income per diluted share of $0.99
         Total segment operating income margin increased to 18.2 percent, from 17.2
         percent in the third quarter 2007.

     Full Year 2008 Outlook
         Outlook for net income per diluted share increased to $4.90 - $5.00, from prior outlook of
         $4.80 - $4.95
          – Approximately 30 - 32% growth over 2007 results
          – Includes expected effective tax rate of approximately 32 - 33%, which includes the R&D
              tax credit retroactive to 1/1/08
         Reduced outlook for sales to approximately $7.1 billion, from prior outlook of $7.3 billion
          – Current outlook assumes Boeing strike ends in late October or early November 2008
          – Represents growth of about 11% over 2007 results
         Net cash provided by operating activities, minus capital expenditures, expected to be about
         65% of net income
          – Includes anticipated inventory build-up resulting from the Boeing strike
          – Capital expenditure outlook unchanged at $275 - $325 million


15
Full Year 2009 Outlook

     Full Year 2009 Outlook
        Sales outlook of $7.7 - $7.8 billion – approximately 8 - 10% growth over
        expected 2008 results
         – Large commercial OE sales expected to increase about 20%
               Assuming the Boeing strike is over in late October or early November
         – Large commercial, regional business and general aviation aftermarket sales
           expected to increase 4 – 7%
        Outlook for net income and income per diluted share from continuing
        operations of $5.05 - $5.25 - approximately 2 - 8% growth over
        expected 2008 results, including:
         –   Higher pension expense of up to $0.27 per share
         –   Full year 2009 tax rate of about 33%
         –   Unfavorable foreign exchange translation costs of $0.06
         –   Closing of the Rolls-Royce joint venture around year-end 2008
        Net cash provided by operating activities, minus capital expenditures,
        expected to be greater than 75% of net income




16
Delivering Sustained Sales Growth
                                                                              and Margin Expansion
                              Sales
 $M                                                                       Segment Operating Income Margins
                      (Trailing Four Qtrs.)
                                                                                (Trailing Four Qtrs.)
7,500
                                                                18.0%

7,000
                                                                16.0%

6,500
                                                                14.0%

6,000
                                                                12.0%

5,500                                                           10.0%

5,000                                                           8.0%

4,500                                                           6.0%

4,000                                                           4.0%


3,500                                                           2.0%


                                                                0.0%
3,000
         Q4     Q2     Q4     Q2     Q4     Q2     Q4     Q2             Q4     Q2     Q4     Q2     Q4     Q2     Q4     2Q
        2004   2005   2005   2006   2006   2007   2007   2008           2004   2005   2005   2006   2006   2007   2007   2008




 17
Year-over-Year Financial Results




18
Third Quarter 2008 – Financial Summary
                                                     Year-over-Year Performance


                                                      3rd Qtr   3rd Qtr
             (Dollars in Millions, excluding EPS)      2008      2007     Change

     Sales                                            $1,772    $1,602     11%


     Segment operating income                          $322      $276      17%


       - % of Sales                                   18.2%     17.2%     +1.0%

     Income
        - Continuing Operations                        $168      $140      20%
        - Net Income                                   $168      $127      32%

     Diluted EPS
        - Continuing Operations                        $1.33    $1.10      21%
        - Net Income                                   $1.33    $0.99      34%


19
First Nine Months 2008 – Financial Summary
                                                     Year-over-Year Performance


                                                     1st Nine   1st Nine
             (Dollars in Millions, excluding EPS)    Months     Months     Change
                                                       2008       2007
     Sales                                           $5,367     $4,724      14%


     Segment operating income                         $940       $762       23%


       - % of Sales                                   17.5%      16.1%     +1.4%

     Income
        - Continuing Operations                       $505       $363       39%
        - Net Income                                  $513       $351       46%

     Diluted EPS
        - Continuing Operations                       $3.97      $2.84      40%
        - Net Income                                  $4.03      $2.75      47%


20
Third Quarter 2008
                                                 Year-over-Year Financial Change Analysis

                                                                 (Dollars in Millions)

                                                                          After-tax Net   Per Diluted
                                  Item                           Sales
                                                                             Income         Share


 Third Quarter 2007 – Continuing Operations                     $1,602         $140         $1.10

     Increased overall volume, efficiency, mix, other            $178          $35          $0.26
     Long-term contracts – changes in estimates                                $12          $0.10
     Share-based compensation                                                   $8          $0.06
     Corp G&A/ERP/Other Income (Expense)
                                                                                $7          $0.06
     (Excluding share based compensation considered above)

     Customer Settlements in 2007                                              ($14)        ($0.10)
     Higher tax rate in 3Q 2008 vs. 3Q 2007                                    ($16)        ($0.12)
     Foreign exchange translation costs                          ($8)          ($4)         ($0.03)



 Third Quarter 2008 – Continuing Operations                     $1,772         $168         $1.33


21
Third Quarter 2008
                                                   Year-over-Year Segment Results
                                        3rd Quarter     3rd Quarter          Change
                                           2008            2007
              Dollars in Millions                                       $               %
     Sales
        Actuation and Landing Systems    $ 664.2         $ 607.8      $ 56.4           9%
        Nacelles and Interior Systems    $ 596.5         $ 545.2      $ 51.3           9%
        Electronic Systems               $ 511.6         $ 448.7      $ 62.9          14%
     Total Sales                         $1,772.3        $1,601.7     $170.6          11%



     Segment OI
        Actuation and Landing Systems     $ 80.0          $ 73.6      $ 6.4            9%
        Nacelles and Interior Systems     $162.4          $143.6      $18.8           13%
        Electronic Systems                $ 79.3          $ 58.7      $20.6           35%
     Total Segment OI                     $321.7          $275.9      $45.8           17%



     Segment Margin
       Actuation and Landing Systems      12.0%           12.1%        N/A            (0.1%)
       Nacelles and Interior Systems      27.2%           26.3%        N/A             +0.9%
       Electronic Systems                 15.5%           13.1%        N/A            +2.4%
     Overall Segment Margin               18.2%           17.2%        N/A            +1.0%


22
First Nine Months 2008
                                                     Year-over-Year Segment Results
                                        1st Nine Months   1st Nine Months          Change
                                              2008              2007
              Dollars in Millions                                             $              %
     Sales
        Actuation and Landing Systems      $2,035.9          $1,764.1       $271.8          15%
        Nacelles and Interior Systems      $1,882.1          $1,625.8       $256.3          16%
        Electronic Systems                 $1,448.6          $1,334.5       $114.1           9%
     Total Sales                           $5,366.6          $4,724.4       $642.2          14%



     Segment OI
        Actuation and Landing Systems       $238.6            $182.0        $ 56.6          31%
        Nacelles and Interior Systems       $501.9            $404.7        $ 97.2          24%
        Electronic Systems                  $199.8            $175.7        $ 24.1          14%
     Total Segment OI                       $940.3            $762.4        $177.9          23%



     Segment Margin
       Actuation and Landing Systems        11.7%             10.3%          N/A            +1.4%
       Nacelles and Interior Systems        26.7%             24.9%          N/A            +1.8%
       Electronic Systems                   13.8%             13.2%          N/A            +0.6%
     Overall Segment Margin                 17.5%             16.1%          N/A            +1.4%


23
Summary Cash Flow Information


                                  Item                           3rd Quarter   3rd Quarter
                          (Dollars in Millions)                      2008         2007

 Net Income                                                         $168          $127

     Depreciation and Amortization                                  $65           $67

     Working Capital – (increase)/decrease – defined
                                                                    ($72)         ($67)
       as the sum of A/R, Inventory and A/P

     Deferred income taxes and taxes payable                        $31            --

     Accrued expenses, other (including pension contributions)      ($51)         $87

 Cash Flow from Operations                                          $141          $214



 Pension Contributions - worldwide                                  ($81)         ($13)

 Capital Expenditures                                               ($73)         ($66)



24
Sales by Market Channel




25
First Nine Months 2008 Sales by Market Channel
                                                 Total Sales $5.367 Billion
                                                                     Total Commercial OE
                                         Other
     Total Defense and
                                          6%
                                                                             33%
           Space
                                                      Boeing
            25%                                    Commercial OE
                                                       10%

          Defense &
                                                                          Airbus
         Space, OE &
                                                                       Commercial OE
         Aftermarket
                                                                           15%
             25%
                                    OE



                              AM                                                Regional,
                                                                             Business & Gen.
                                                                                 Av. OE
                                                                                   8%
                                    Large Commercial Aircraft
                                          Aftermarket
                                              29%
        Regional, Business &
     General Aviation Aftermarket
                 7%
                                                                   Total Commercial
                                                                      Aftermarket
                                                                          36%
       Balanced business mix; aftermarket represents 45% of total sales
26
Sales by Market Channel
                                     First Nine Months 2008 Change Analysis

                                                    Actual Goodrich Change Comparisons

                                                   3Q 2008 vs.   3Q 2008 vs.   YTD 2008 vs.
                                                    3Q 2007       2Q 2008       YTD 2007

     Boeing and Airbus –
                             Aircraft Deliveries       1%          (18%)           14%
     OE Production

     Regional, Business &
                             Aircraft Deliveries      29%           (5%)           26%
     General Aviation - OE

     Aftermarket – Large
                             ASMs, Age, Cycles,
     Commercial, Regional,                            13%            1%            11%
                                Fleet size
     Business and GA

     Defense and Space –      US, UK Defense
                                                      12%            5%            12%
     OE and Aftermarket          Budgets
     Other                       IGT, Other            9%           (7%)           18%

     Goodrich Total Sales                             11%           (4%)           14%



27
2009 Outlook




28
2008 Sales Expectations
                                                                        By Market Channel

     Full Year 2007                                2007 Goodrich   2008 Goodrich   2009 Goodrich
                                                   Actual Growth     Expected        Expected
       Sales Mix                 Market
                                                                      Growth          Growth

         10%          Boeing OE Del.
         15%          Airbus OE Del.                    8%           ~5 - 10%*        ~20%*
         25%           Total (GR Weight)


          8%          Regional/Bus/GA OE               20%             ~20%           7 – 8%
                      (Weighted)


         36%          Aftermarket (Commercial/         16%           ~9 - 11%         4 – 7%
                      Regional/Bus/GA)



         25%          Defense and Space OE and          7%             ~11%           5 – 7%
                      Aftermarket




          6%          Other                            14%             ~14%           2 – 5%

         100%         Total                            12%             ~11%           8 – 10%


          * Dependent on length of Boeing Strike
29
2009 Outlook
                                                               P&L Summary ($M)

                                          Estimate        Estimate
                                            2008            2009           B/(W)
     Sales                                 ~$7.1B        $7.7 - $7.8B    +8 - 10%

     EPS (Diluted)

       - Continuing Operations           $4.84 - $4.94   $5.05 - $5.25    +2 - 8%

       - Reported                        $4.90 - $5.00   $5.05 - $5.25    +1 - 7%

     Net cash provided by operating
     activities, minus capital
     expenditures, as a percent of net      ~65%            >75%            N/A
     income


     Capital Expenditures                $275 - $325     $275 - $300     $25 - ($25)
     Effective Tax Rate                  ~32% – 33%         ~33%            N/A


                      Expect Continued Sales and EPS growth in 2009
30

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Goodrich Q3 2008 Results and Impact of Economic Slowdown

  • 1. Goodrich Corporation Third Quarter 2008 Results October 23, 2008
  • 2. Forward Looking Statements Certain statements made in this presentation 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: demand for and market acceptance of new and existing products, such as the Airbus A350 XWB and A380, the Boeing 787 Dreamliner, the Embraer 190, the Dassault Falcon 7X, and the Lockheed Martin F- 35 Lightning II and F-22 Raptor; the health of the commercial aerospace industry, including the impact of bankruptcies and/or mergers in the airline industry; global demand for aircraft spare parts and aftermarket services; and other factors discussed in the Company's filings with the Securities and Exchange Commission and in the Company's October 23, 2008 Third Quarter 2008 Results press release. The Company cautions you not to place undue reliance on the forward-looking statements contained in this presentation, 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. 2
  • 4. Fuel Price and GDP Growth Historical and Forecast Oil Price Economic Growth Forecasts (2003 to Oct. 15, 2008) (2006 to 2011) $/bbl Real GDP Emerg. Asia Mideast GLOBAL South Am. Dev. Asia North Am. Europe 2003 2004 2005 2006 2007 2008 Oil prices increased up to four-fold since The global economy is slowing 2003 but have since retreated Emerging markets continue to grow faster This spike contributed to airline operating than the developed economies costs rising by ~25%1 Thus economic conditions are expected A weaker dollar has provided temporary to affect the industry differently by region relief to non-US carriers Note: 1Based on reported Q2 2008 results 4 Source: Seabury Aerospace, Bloomberg (oil prices); IMF WEO October 2008 (GDP),
  • 5. Global Passenger Capacity Year-over-Year Growth Year-over-Year Change in Available-Seat-Miles (ASMs)1 Economic Economic Economic recovery recovery recovery Gulf War II and SARS outbreak Gulf War I and 9/11 and 2002 1981 recession 1991 recession recession and oil spike Airline capacity is highly correlated with economic growth Global capacity has grown an average 4-5% over the past 30 years During that period, global capacity has only contracted three times – a slight decline during the 1981 & 1991 recessions and a larger decline after 9/11 Periods of contraction have been quickly followed by above-trend growth Note: 1US market used as proxy for world 1980-1990; global data used for 1991-2008 5 Source: Seabury Aerospace, Airline Monitor
  • 6. Global Passenger Capacity 2007-2009 Growth Year-over-year change in Available-Seat-Miles (ASMs) 8% 6% Full Year 4% 2008 2% Q4 2009 Q1 Q2 Q3 Full Year 2009 2009 2009 2009 0% Q3 Q1 Q2 2008 2008 2008 Q4 2008 ‐2% 2008FΒ vs.Β 2007 2009FΒ vs.Β 2008F ‐4% For most of 2008, capacity was increasing near historical average Rising fuel prices drove airlines to cut capacity in the backend of 2008 Impact of capacity cuts are expected to be fully felt in 2009 as carriers maintain implemented cuts due to operational constraints and concerns about slowing demand Note: Scheduled passenger capacity only 6 Source: Seabury Aerospace
  • 7. Expected Aircraft Retirements 2008-2009 Aircraft1 943 773 170 As a result, airlines continue to ground aircraft Almost all announced and implemented capacity cuts have been old-gen aircraft MD80/90, DC9, and 737-300 aircraft continue to be attractive to replace at lower oil prices Despite the decline in oil prices, airlines have reaffirmed many of their retirement plans 1Expected retirements from Nov. 2008 to end of Nov. 2009 Note: Scheduled passenger aircraft only; excludes potential for later return-to-service 7 Source: Seabury Aerospace, Announced capacity cuts
  • 8. Capacity By Region 2007-2009 Growth Year-over-Year change in Available-Seat-Miles (ASMs) 10% 2008FΒ vs.Β 2007 2009F vs. 2008F 6% 2% North Europe Dev.Β Asia Emerg. MideastΒ & South World ‐2% America Asia Africa America ‐6% % of total 31% 25% 15% 15% 10% 4% 100% capacity1 Capacity cuts have been most dramatic and urgent in North America Europe and Developed Asia have started to reverse previous growth Emerging Asia and Middle East continue to grow, albeit much more slowly Note: Scheduled passenger capacity only; 1Based on 2009 split 8 Source: Seabury Aerospace
  • 9. Large Commercial Aircraft Estimated Capacity Growth from 2008 to 2009 In-Production Slowing or Recently Long Out-of-Production Out-of-Production Year-over-Year change in Available-Seat-Miles (ASMs) (After '08/'09 retirements) 60% 27% 13% % of total 20% 16% 15% 9% 9% 7% 6% 5% 6% 3% 1% 1% 2% capacity1 In-production aircraft are not targeted for grounding to achieve desired capacity cuts In-production aircraft utilization rates have not dropped and are unlikely to fall 2009 production rates have only been slightly adjusted by OEMs2 Therefore, in-production ASMs are expected to continue to grow and gain share of global capacity Note: Scheduled passenger capacity excluding regional jets; 1Based on 2009 daily average excluding A380 and 787 which remain small share; 2Excludes impact of continued Boeing strike 9 Source: Seabury Aerospace
  • 10. Large Commercial Aircraft Fleet Demographics vs. Goodrich Aftermarket Sales In Service Fleet Demographics Goodrich Aftermarket Sales (1/1/08) Distribution (Est. 2008) In In Production Production 80% Long Out-of- Long O 60% ut-of-P Production ro 707 727 7 duction 4 A310 DC8 D 7C 737C 31% C9 DC MD80 Long Out-of- L1011 10 Production 8% 4% Long Out-of-Production (Less Vulnerable) 2% MD11 MD90 Recently Recently Out- Out-of- of-Production Production 8% 7% Goodrich currently expects commercial aftermarket sales to grow 4 – 7 percent in 2009, compared to 2008 10
  • 11. A320 Deliveries and Installed Base Delivered Units Installed Base 450 6000 Actual Estimated 400 Installed 5000 base/deliveries 350 subject to major overhaul in 2008 300 4000 250 Installed 3000 base/deliveries 200 subject to major overhaul in 2001 150 2000 100 1000 50 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 A320 Family Deliveries A320 Family Installed Base 2002 – 2003 aftermarket sales based on installed base as of 1995, 2008 and on sales based on deliveries and installed base in 2001 and beyond 11 Source: Airline Monitor, July 2008
  • 12. Large Commercial Airplane Delivery Forecast 1,200 Potential Impact of Boeing Strike 1,000 800 Units 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Actuals Goodrich outlook OEMs have only slightly adjusted production growth rates, and are maintaining discipline in managing the downturn Record backlogs also afford flexibility, with some airlines seeking earlier delivery slots while others look to defer Demand remains high in Middle East and China (and strongest European and American 12 carriers)
  • 13. Financial and Operational Highlights 13
  • 14. Third Quarter 2008 Highlights Increased quarterly dividend to $0.25 per share, an 11 percent increase over the previous quarterly dividend of $0.225 per share of common stock Received a contract from the U.S. Army to provide up to 1,000 Vehicle Health Management Systems for UH-60A/L Black Hawk helicopters The five-year Indefinite Delivery, Indefinite Quantity contract is valued at up to $300 million and covers deliveries through 2013 Selected by Airbus to supply the air data system and ice detection system for the new A350 XWB commercial aircraft The awards are expected to generate more than $600 million in original equipment and aftermarket revenue over 20 years Goodrich and Rolls-Royce signed a Letter of Intent proposing the formation of a joint venture company which would develop and supply engine controls for Rolls-Royce aero engines Goodrich would retain the aftermarket products and services business associated with the joint venture's products Expect to complete the JV around year-end 2008 14
  • 15. Third Quarter 2008 Results and Full Year 2008 Outlook Third Quarter 2008 Results Third quarter 2008 sales of $1,772 million increased 11 percent over third quarter 2007 sales of $1,602 million Third quarter 2008 income per diluted share of $1.33 increased 34 percent over third quarter 2007 income per diluted share of $0.99 Total segment operating income margin increased to 18.2 percent, from 17.2 percent in the third quarter 2007. Full Year 2008 Outlook Outlook for net income per diluted share increased to $4.90 - $5.00, from prior outlook of $4.80 - $4.95 – Approximately 30 - 32% growth over 2007 results – Includes expected effective tax rate of approximately 32 - 33%, which includes the R&D tax credit retroactive to 1/1/08 Reduced outlook for sales to approximately $7.1 billion, from prior outlook of $7.3 billion – Current outlook assumes Boeing strike ends in late October or early November 2008 – Represents growth of about 11% over 2007 results Net cash provided by operating activities, minus capital expenditures, expected to be about 65% of net income – Includes anticipated inventory build-up resulting from the Boeing strike – Capital expenditure outlook unchanged at $275 - $325 million 15
  • 16. Full Year 2009 Outlook Full Year 2009 Outlook Sales outlook of $7.7 - $7.8 billion – approximately 8 - 10% growth over expected 2008 results – Large commercial OE sales expected to increase about 20% Assuming the Boeing strike is over in late October or early November – Large commercial, regional business and general aviation aftermarket sales expected to increase 4 – 7% Outlook for net income and income per diluted share from continuing operations of $5.05 - $5.25 - approximately 2 - 8% growth over expected 2008 results, including: – Higher pension expense of up to $0.27 per share – Full year 2009 tax rate of about 33% – Unfavorable foreign exchange translation costs of $0.06 – Closing of the Rolls-Royce joint venture around year-end 2008 Net cash provided by operating activities, minus capital expenditures, expected to be greater than 75% of net income 16
  • 17. Delivering Sustained Sales Growth and Margin Expansion Sales $M Segment Operating Income Margins (Trailing Four Qtrs.) (Trailing Four Qtrs.) 7,500 18.0% 7,000 16.0% 6,500 14.0% 6,000 12.0% 5,500 10.0% 5,000 8.0% 4,500 6.0% 4,000 4.0% 3,500 2.0% 0.0% 3,000 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 2Q 2004 2005 2005 2006 2006 2007 2007 2008 2004 2005 2005 2006 2006 2007 2007 2008 17
  • 19. Third Quarter 2008 – Financial Summary Year-over-Year Performance 3rd Qtr 3rd Qtr (Dollars in Millions, excluding EPS) 2008 2007 Change Sales $1,772 $1,602 11% Segment operating income $322 $276 17% - % of Sales 18.2% 17.2% +1.0% Income - Continuing Operations $168 $140 20% - Net Income $168 $127 32% Diluted EPS - Continuing Operations $1.33 $1.10 21% - Net Income $1.33 $0.99 34% 19
  • 20. First Nine Months 2008 – Financial Summary Year-over-Year Performance 1st Nine 1st Nine (Dollars in Millions, excluding EPS) Months Months Change 2008 2007 Sales $5,367 $4,724 14% Segment operating income $940 $762 23% - % of Sales 17.5% 16.1% +1.4% Income - Continuing Operations $505 $363 39% - Net Income $513 $351 46% Diluted EPS - Continuing Operations $3.97 $2.84 40% - Net Income $4.03 $2.75 47% 20
  • 21. Third Quarter 2008 Year-over-Year Financial Change Analysis (Dollars in Millions) After-tax Net Per Diluted Item Sales Income Share Third Quarter 2007 – Continuing Operations $1,602 $140 $1.10 Increased overall volume, efficiency, mix, other $178 $35 $0.26 Long-term contracts – changes in estimates $12 $0.10 Share-based compensation $8 $0.06 Corp G&A/ERP/Other Income (Expense) $7 $0.06 (Excluding share based compensation considered above) Customer Settlements in 2007 ($14) ($0.10) Higher tax rate in 3Q 2008 vs. 3Q 2007 ($16) ($0.12) Foreign exchange translation costs ($8) ($4) ($0.03) Third Quarter 2008 – Continuing Operations $1,772 $168 $1.33 21
  • 22. Third Quarter 2008 Year-over-Year Segment Results 3rd Quarter 3rd Quarter Change 2008 2007 Dollars in Millions $ % Sales Actuation and Landing Systems $ 664.2 $ 607.8 $ 56.4 9% Nacelles and Interior Systems $ 596.5 $ 545.2 $ 51.3 9% Electronic Systems $ 511.6 $ 448.7 $ 62.9 14% Total Sales $1,772.3 $1,601.7 $170.6 11% Segment OI Actuation and Landing Systems $ 80.0 $ 73.6 $ 6.4 9% Nacelles and Interior Systems $162.4 $143.6 $18.8 13% Electronic Systems $ 79.3 $ 58.7 $20.6 35% Total Segment OI $321.7 $275.9 $45.8 17% Segment Margin Actuation and Landing Systems 12.0% 12.1% N/A (0.1%) Nacelles and Interior Systems 27.2% 26.3% N/A +0.9% Electronic Systems 15.5% 13.1% N/A +2.4% Overall Segment Margin 18.2% 17.2% N/A +1.0% 22
  • 23. First Nine Months 2008 Year-over-Year Segment Results 1st Nine Months 1st Nine Months Change 2008 2007 Dollars in Millions $ % Sales Actuation and Landing Systems $2,035.9 $1,764.1 $271.8 15% Nacelles and Interior Systems $1,882.1 $1,625.8 $256.3 16% Electronic Systems $1,448.6 $1,334.5 $114.1 9% Total Sales $5,366.6 $4,724.4 $642.2 14% Segment OI Actuation and Landing Systems $238.6 $182.0 $ 56.6 31% Nacelles and Interior Systems $501.9 $404.7 $ 97.2 24% Electronic Systems $199.8 $175.7 $ 24.1 14% Total Segment OI $940.3 $762.4 $177.9 23% Segment Margin Actuation and Landing Systems 11.7% 10.3% N/A +1.4% Nacelles and Interior Systems 26.7% 24.9% N/A +1.8% Electronic Systems 13.8% 13.2% N/A +0.6% Overall Segment Margin 17.5% 16.1% N/A +1.4% 23
  • 24. Summary Cash Flow Information Item 3rd Quarter 3rd Quarter (Dollars in Millions) 2008 2007 Net Income $168 $127 Depreciation and Amortization $65 $67 Working Capital – (increase)/decrease – defined ($72) ($67) as the sum of A/R, Inventory and A/P Deferred income taxes and taxes payable $31 -- Accrued expenses, other (including pension contributions) ($51) $87 Cash Flow from Operations $141 $214 Pension Contributions - worldwide ($81) ($13) Capital Expenditures ($73) ($66) 24
  • 25. Sales by Market Channel 25
  • 26. First Nine Months 2008 Sales by Market Channel Total Sales $5.367 Billion Total Commercial OE Other Total Defense and 6% 33% Space Boeing 25% Commercial OE 10% Defense & Airbus Space, OE & Commercial OE Aftermarket 15% 25% OE AM Regional, Business & Gen. Av. OE 8% Large Commercial Aircraft Aftermarket 29% Regional, Business & General Aviation Aftermarket 7% Total Commercial Aftermarket 36% Balanced business mix; aftermarket represents 45% of total sales 26
  • 27. Sales by Market Channel First Nine Months 2008 Change Analysis Actual Goodrich Change Comparisons 3Q 2008 vs. 3Q 2008 vs. YTD 2008 vs. 3Q 2007 2Q 2008 YTD 2007 Boeing and Airbus – Aircraft Deliveries 1% (18%) 14% OE Production Regional, Business & Aircraft Deliveries 29% (5%) 26% General Aviation - OE Aftermarket – Large ASMs, Age, Cycles, Commercial, Regional, 13% 1% 11% Fleet size Business and GA Defense and Space – US, UK Defense 12% 5% 12% OE and Aftermarket Budgets Other IGT, Other 9% (7%) 18% Goodrich Total Sales 11% (4%) 14% 27
  • 29. 2008 Sales Expectations By Market Channel Full Year 2007 2007 Goodrich 2008 Goodrich 2009 Goodrich Actual Growth Expected Expected Sales Mix Market Growth Growth 10% Boeing OE Del. 15% Airbus OE Del. 8% ~5 - 10%* ~20%* 25% Total (GR Weight) 8% Regional/Bus/GA OE 20% ~20% 7 – 8% (Weighted) 36% Aftermarket (Commercial/ 16% ~9 - 11% 4 – 7% Regional/Bus/GA) 25% Defense and Space OE and 7% ~11% 5 – 7% Aftermarket 6% Other 14% ~14% 2 – 5% 100% Total 12% ~11% 8 – 10% * Dependent on length of Boeing Strike 29
  • 30. 2009 Outlook P&L Summary ($M) Estimate Estimate 2008 2009 B/(W) Sales ~$7.1B $7.7 - $7.8B +8 - 10% EPS (Diluted) - Continuing Operations $4.84 - $4.94 $5.05 - $5.25 +2 - 8% - Reported $4.90 - $5.00 $5.05 - $5.25 +1 - 7% Net cash provided by operating activities, minus capital expenditures, as a percent of net ~65% >75% N/A income Capital Expenditures $275 - $325 $275 - $300 $25 - ($25) Effective Tax Rate ~32% – 33% ~33% N/A Expect Continued Sales and EPS growth in 2009 30