1. Marshall Larsen
Goodrich Corporation
Chairman, President and CEO
Citigroup 20th Annual
Global Industrial Manufacturing Conference
March 6, 2007
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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 February 1, 2007 Fourth Quarter 2006
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
3. Company Overview - Goodrich
Results
GR Portfolio Attributes
Proprietary products More predictable revenue
and income growth
Non-discretionary repair/
replacement cycles Significant margin potential
Large installed base drives Sustainable leadership
aftermarket sales positions
Participation on every large Diverse product portfolio and
commercial and regional jet platform balanced customer base
Significant defense & space presence
3
4. Goodrich – Strategic Imperatives
Top Quartile
Aerospace
Returns
Leverage the Operational
Balanced Growth
Enterprise Excellence
• Use portfolio mass and • Manage investments at • Push aggressive Supply
breadth to capture the portfolio level Chain Management and
market share Continuous
• Provide Enterprise
Improvement
• Pursue Military Markets Shared Services
and Government funding • Drive breakthrough
• Leverage SBU
opportunities change in product and
capabilities into
development costs using
• Win new program integrated, higher level
LPD and DFSS
positions systems
• Improve Enterprise
• Aftermarket products • Simplify customer
manufacturing and
and services expansion interfaces – act as “One
engineering efficiencies
Company”
4
5. Balanced Growth
Full Year 2006 Sales by Market Channel
Total Commercial OE
Other
Total Defense and
6%
33%
Space
Boeing
25% Commercial OE
9%
Airbus
Defense &
Commercial OE
Space, OE &
17%
Aftermarket
OE
25%
AM Regional,
Business & Gen.
Av. OE
7%
Large Commercial Aircraft
Aftermarket
27%
Heavy A/C
Maint.
3%
Regional, Business & Total Commercial Aftermarket
General Aviation Aftermarket
36%
6%
5
Balanced business mix
6. Balanced Growth
Commercial Delivery Forecasts - Airbus and Boeing
1,400
Airline Monitor Forecast
1,200
Airbus & Boeing Aircraft
1,000
Annual Deliveries
800
600
400
200
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
Increased production expected through 2010.
2011-2014 rates approximate 2006 rate
6
7. Large Commercial A/C
Single and Twin Aisle Fleet Growth
Y/E 2006
20,000 5%
R=
AG
737NG A320 Family
5C
18,000 747-400 767 01
–2
777 A300-600
06
16,000 20
A330 A340
Out of Production A/C A380
14,000 787 A350
12,000
10,000
8,000
6,000
4,000
2,000
0
80
82
84
86
88
90
92
94
96
98
00
02
04
06
08
10
12
14
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
Total fleet size increasing
7
Source: Jet Information Services, Inc, YE 2005
8. Balanced Growth
Goodrich Defense and Space Content
Platform Content Mission Equipment Content
~ 70% GR military sales ~ 30% GR military sales
The Aircraft, Ship or Ground Vehicle The systems which allow the
platform to perform a mission
• Nacelles
• Landing gear • Reconnaissance cameras
• Aircraft and ship structures • Precision optics
• Wheels and Brakes • Sensors
• Fuel systems • Missile actuators
• Air Data Sensors • Precision weapon actuators
• Actuators
• Laser warning systems
• Ejection Seats
• Perimeter warning systems
• Lighting products
• Infrared imaging devices
• High speed shafts and
• Classified Programs
couplings
Expect mission equipment to drive growth 8
9. Goodrich – Strategic Imperatives
Top Quartile
Aerospace
Returns
Leverage the Operational
Balanced Growth
Enterprise Excellence
• Use portfolio mass and • Manage investments at • Push aggressive Supply
breadth to capture the portfolio level Chain Management and
market share Continuous
• Provide Enterprise
Improvement
• Pursue Military Markets Shared Services
and Government funding • Drive breakthrough
• Leverage SBU
opportunities change in product and
capabilities into
development costs using
• Win new program integrated, higher level
LPD and DFSS
positions systems
• Improve Enterprise
• Aftermarket products • Simplify customer
manufacturing and
and services expansion interfaces – act as “One
engineering efficiencies
Company”
9
10. Leverage the Enterprise
Organizational Realignment
• New organization
effective January 1,
2007
• Decreased number
of business units
from 16 to 11
• Improves ability to
leverage the
enterprise
• Improves customer
focus
10
11. Goodrich – Strategic Imperatives
Top Quartile
Aerospace
Returns
Leverage the Operational
Balanced Growth
Enterprise Excellence
• Use portfolio mass and • Manage investments at • Push aggressive Supply
breadth to capture the portfolio level Chain Management and
market share Continuous
• Provide Enterprise
Improvement
• Pursue Military Markets Shared Services
and Government funding • Drive breakthrough
• Leverage SBU
opportunities change in product and
capabilities into
development costs using
• Win new program integrated, higher level
LPD and DFSS
positions systems
• Improve Enterprise
• Aftermarket products • Simplify customer
manufacturing and
and services expansion interfaces – act as “One
engineering efficiencies
Company”
11
12. Operational Excellence
Supply Chain Management
Eastern Europe China
Russia
Misc. LG support Forgings/Machined Parts
Titanium Forgings
Comp. Fan Cowls
and sheets
Korea
Castings
Taiwan
Machined Panels
Singapore
Machined Parts/
Engine Mounts
Indonesia
Mexico Machined Parts JV
Seals
Electronic Comps
Malaysia
MRO
Composite Panels
India
Transportation Service
Engineering
IT Services
Components
Goodrich sourcing efforts growing in low cost countries
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13. Operational Excellence
LEAN Journey
1994 2006
LEAN in the Factory Site consolidation
Focus between sites Supply Chain
Focus at the cell level
Flow Down of PD Matrix Linked and Aligned
Policy Deployment Simple Metrics
to Business Obj.
LEAN in the Office All areas accountable for LEAN deployment
Lean Enterprise - Organization 2001
Customers
All Other - Operations - Riv, CV Mfg., Foley -
Auxiliary Power Unit (APU) - J. Anderson
MRO - Fairhope, Prestwick, Singapore -
Commercial Aerostructures - J. Hooper
J.J. Perez, R. Gordon, V. Halfacre
Nacelles & Pylons - K. Reilly/P. Rose
H. BurkholderC. Johnston, K. Tan
Technical Services - R. McInnes
Military & Space - J. Goulding
CFM56 Program - D. Martin
Technical Support - W. Potts
KC-135 Program - J.J. Perez
Spares Business - P. Farsetta
Chief Engineer - D. Sanders
GRID-LOCK - C. Probett
BFG Europe - J. Luminet
Rolls-Royce - P. Marvin
Re-engining - R. Manion
C5 Pylon - D. Perryman
CF6-80E1 - B. Cecchini
CF34-10 - J. Rogers
PW4000 - S. Carter
CF6-80C2 - S. Hall
PPSD - T. Donnelly
737 NG - L. Strand
V2500 - T. Martin
R&D - N. Barker
HTA - D. Falletti
757 - V. Halfacre
717-200 - S. Kay
J. Burton C. Reusser B. Wetzler C. Cramp D. Castagnola K. Wood B. Gustafson
Business Product & Process After Market
In Production Business
Acquisition Definition Services
Shared Procurement Services - B. McDowell
Enterprise Support Services (ESS) - K. Wood
PDM/ERP and Resource Team - G. Peters
People - B. Broderick
May 22, 2001 Quality Assurance and Technical Compliance - A. Binks
Group President --Bud Wetzler
LEAN Product Product Development LPD a game changer
Our evolving an anchor
Development LPD Model
LEAN culture Traditional Model
Dollars
Dollars
“Recurring”
“Recurring”
Non- Recurring Non-Recurring
Non-
Non Recurring Recurring Cost
Recurring Cost
- Recurring
Production Time
Production Start
Time
Start
LEAN now being adopted across Goodrich
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14. Operational Excellence
Planning Execution Stable Production
Macro Learning
Standard Work Combination Sheet
Standard Work Sheet
FROM: Incoming PREPARED BY: J. Smith
PROCE SS NAME:
SCOPE OF
Forming Center DAT E: 3/16/00
talk to customer OPE RATIONS TO: Finished 590 seconds
Date:______________ Face & Burr 059
12/6/98 Process /Cell:__________________ Dept.:_________ Takt Time:_____________
look for work
7-
Marty & Jim N/A
Group 1
Observer(s):____________________ Part:_________________ Machine No:___________________
Fred M.
Operator:___________
count cost Spray & Dry Times
Operation Times (seconds)
Plan.
Step Operation Op.
2 No. Ma n Mach Walk
100 200 300 400 500 600 700 800
Pick part form tote, index
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13 9
MACRO Impact Customer LWW Part Assy. Assy. Cell Std. Pull Validate
3P
VOC
Learning Matrix Deliverables Prog. Plan Family Flow I Flow II Layout Work Systems SW
New Program Execution – Lean Product Development:
• Continue to Evolve LPD Model
• 787 Nacelle Program Execution $
$
– Newest Training Ground for Lean PD
– Raises Performance Bar for Lean PD Least Waste Way
Cum
• Rigorous and Relentless Application of Lean Non-
PD on Recurring Recurring Unit Cost
– All New Business Acquisition Projects Time
– All New Product Development Programs
Implement… Improve… Standardize
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15. Summary
The Value Proposition for Goodrich
• Great market positions
• Good top line growth – sustainable, above market metric growth
– Continued strong commercial airplane original equipment growth
– Expect commercial aftermarket growth greater than market growth (ASM’s)
– Continued growth in defense and space driven by ISR technology, upgrades and
retrofits of existing products and new aircraft programs
• Delivering on substantial margin improvement opportunity
– Improved segment operating income margin from 11.5% in 2005 to 13.0% for the
full year 2006
– Expect to achieve at least 15% segment operating income margin by 2009
• Driving cash flow conversion levels toward 100%
• Entire organization focused on margin expansion and cash flow
growth
Goodrich strengths in all of its market channels should enable sustained
growth of sales, income and margins beyond 2009
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