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Goodrich Corporation
Fourth Quarter 2007 Results

January 31, 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 January 31, 2007 Fourth Quarter 2007
    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
Financial and Operational
           Highlights




3
Fourth Quarter 2007 Highlights


    Completed sale of Aviation Technical Services to a subsidiary of
    Macquarie Group Limited

    Continued investments in growing aftermarket business
       Announced expansion of MRO campus in Monroe, N.C.
       Unveiled new MRO facility in Dubai at Dubai Air Show

    Enhanced Goodrich presence in high-growth helicopter market with
    acquisition of Skyline Industries

    Fourth quarter 2007 results, compared with fourth quarter 2006
       Sales grew 12% - continued above market growth rates in commercial
       aftermarket sales
       Segment OI margin increased from 13.0% to 15.9%
       Net income per diluted share of $1.04 – a 33% increase over fourth
       quarter 2006
        – Includes $0.09 per diluted share related to Northrop Grumman
           settlement
4
2008 Outlook



    Full Year 2008 Outlook

       No changes to previous outlook provided on October 25, 2007
        – Sales outlook of $7.1 - $7.2 billion – approximately 11 - 13% growth
          over 2007 results
        – Outlook for net income per diluted share of $4.15 - $4.30 -
          approximately 10 - 14% growth over 2007 results
             Includes expected increase in effective tax rate from ~31% in 2007
             to 33 – 35% in 2008 – anticipated unfavorable impact of
             approximately $0.15 per share in 2008
        – Net cash provided by operating activities, minus capital
          expenditures, expected to be greater than 75% of net income




5
Delivering Sustained Sales Growth
                                                                             and Margin Expansion
                          Sales
$M                                                                       Segment Operating Income Margins
                  (Trailing Four Qtrs.)
                                                                               (Trailing Four Qtrs.)
7,000
                                                               18.0%

6,500                                                          16.0%


                                                               14.0%
6,000

                                                               12.0%
5,500
                                                               10.0%
5,000
                                                               8.0%

4,500
                                                               6.0%


4,000                                                          4.0%


                                                               2.0%
3,500

                                                               0.0%
3,000                                                                   Q4     Q2     Q4     Q2     Q4     Q2     Q4
     Q4 2004 Q2 2005 Q4 2005 Q2 2006 Q4 2006 Q2 2007 Q4 2007           2004   2005   2005   2006   2006   2007   2007




 6
Year-over-Year Financial Results




7
Fourth Quarter 2007 – Financial Summary
                                                   Year-over-Year Performance


                                                    4th Qtr   4th Qtr
            (Dollars in Millions, excluding EPS)     2007      2006     Change

    Sales                                           $1,668    $1,495     12%


    Segment operating income                         $266      $194      37%


      - % of Sales                                   15.9%    13.0%     +2.9%

    Income
       - Continuing Operations                       $134      $ 98      36%
       - Net Income                                  $132      $ 99      34%

    Diluted EPS
       - Continuing Operations                       $1.05    $0.77      36%
       - Net Income                                  $1.04    $0.78      33%


8
Full Year 2007 – Financial Summary
                                                           Year-over-Year Performance


                                                                Full Year      Full Year
            (Dollars in Millions, excluding EPS)                  2007           2006         Change

    Sales                                                        $6,392          $5,719         12%


    Segment operating income                                     $1,028           $772          33%

      - % of Sales                                                16.1%          13.5%         +2.6%
    Income
       - Continuing Operations                                    $497           $478*          4%
       - Net Income                                               $484           $482*           --

    Diluted EPS
       - Continuing Operations                                    $3.89          $3.78*          3%
       - Net Income                                               $3.79          $3.81*         (1%)


* Full year 2006 results include tax settlements totaling $145 million, or $1.15 per diluted share
9
Fourth Quarter 2007
                                        Year-over-Year Financial Change Analysis


                                                        (Dollars in Millions)
                                                                                 Net Income
                                                                 After-tax Net
                             Item                       Sales                    per Diluted
                                                                    Income
                                                                                   Share

 Fourth Quarter 2006 – Net Income                       $1,495        $99          $0.78

     Increased overall volume, efficiency, mix, other   $147          $41          $0.35
     Northrop Grumman settlement                                      $12          $0.09

     Foreign exchange translation costs                  $26          ($4)         ($0.03)
     Higher effective tax rate                                        ($21)        ($0.17)
     Other income (expense)                                            $7          $0.05
     Discontinued Operations                                          ($2)         ($0.01)

 Fourth Quarter 2007 – Net Income                       $1,668        $132         $1.04




10
Fourth Quarter 2007
                                                   Year-over-Year Segment Results
                                        4th Quarter     4th Quarter         Change
                                           2007            2006
              Dollars in Millions                                      $               %
     Sales
        Actuation and Landing Systems      $637            $546       $91            17%
        Nacelles and Interior Systems      543             $511       $32             6%
        Electronic Systems                 $488            $438       $50            11%
     Total Sales                          $1,668          $1,495      $173           12%



     Segment OI
        Actuation and Landing Systems      $68             $34        $34            99%
        Nacelles and Interior Systems      $126            $95        $31            34%
        Electronic Systems                 $72             $65        $7             10%
     Total Segment OI                      $266            $194       $72            37%



     Segment Margin
       Actuation and Landing Systems      10.6%           6.2%        N/A            +4.4%
       Nacelles and Interior Systems      23.3%           18.5%       N/A            +4.8%
       Electronic Systems                 14.8%           14.9%       N/A            (0.1%)
     Overall Segment Margin               15.9%           13.0%       N/A            +2.9%


11
Fourth Quarter 2007
                                         Sequential Period Segment Results
                                        4th Quarter   3rd Quarter          Change
                                           2007          2007
                Dollars in Millions                                  $               %
     Sales
        Actuation and Landing Systems      $637          $608       $29              5%
        Nacelles and Interior Systems      543           $545       ($2)              --
        Electronic Systems                 $488          $449       $39              9%
     Total Sales                          $1,668        $1,602      $66              4%



     Segment OI
        Actuation and Landing Systems      $68           $73         ($5)            (7%)
        Nacelles and Interior Systems      $126          $144       ($18)           (13%)
        Electronic Systems                 $72           $59         $13             22%
     Total Segment OI                      $266          $276       ($10)            (4%)



     Segment Margin
       Actuation and Landing Systems      10.6%         12.1%       N/A         (1.5%)
       Nacelles and Interior Systems      23.3%         26.3%       N/A         (3.0%)
       Electronic Systems                 14.8%         13.1%       N/A         +1.7%
     Overall Segment Margin               15.9%         17.2%       N/A         (1.3%)



12
Summary Cash Flow Information


                                  Item                           4th Quarter   4th Quarter
                          (Dollars in Millions)                      2007         2006

 Income from Continuing Operations                                  $134          $98

     Depreciation and Amortization                                  $62           $62

     Working Capital – (increase)/decrease – defined
                                                                    ($9)          $27
       as the sum of A/R, Inventory and A/P

     Deferred income taxes and taxes payable                        ($8)          $26

     Accrued expenses, other (including pension contributions)       $9           $33

 Cash Flow from Operations                                          $188          $246



 Pension Contributions - worldwide                                  ($22)         ($15)

 Capital Expenditures                                              ($122)        ($102)



13
Sales by Market Channel




14
Full Year 2007 Sales by Market Channel
                                                           Total Sales $6.4 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
15
Sales by Market Channel
                                         Fourth Quarter 2007 Change Analysis

                                                Actual Goodrich Change Comparisons
                                              4Q 2007   4Q 2007
                                                                    Full Year 2007 vs.
                                                vs.       vs.
                                                                     Full Year 2006
                                              4Q 2006   3Q 2007
Boeing and Airbus –
                        Aircraft Deliveries    12%         8%              8%
OE Production
Regional, Business &
                        Aircraft Deliveries    29%         7%             20%
General Aviation - OE

Aftermarket – Large
                        ASMs, Age, Cycles,
Commercial, Regional,                          11%        (2%)            16%
                           Fleet size
Business and GA

Defense and Space –      US, UK Defense
                                                6%         5%              7%
OE and Aftermarket          Budgets
Other                       IGT, Other         17%        11%             14%
Goodrich Total Sales                           12%         4%             12%




16
2008 Outlook




17
2008 Sales Expectations
                                                                         By Market Channel

 Full Year                          2007       2008
   2007                           Goodrich   Goodrich
                     Market                                    Market expectations - 2009 and beyond
                                   Actual    Expected
 Sales Mix
                                   Growth     Growth
     10%     Boeing OE Del.                              Growth continues for 737, 777, A320;
     15%     Airbus OE Del.                              A380, 787 and A350 introductions support
                                                         deliveries past normal peak
     25%      Total (GR Weight)     8%        ~20%


     8%      Regional/Bus/GA        20%       ~13%       CF34-10 Engine Nacelles and tail cone on
             OE (Weighted)                               EMBRAER 190 support continued growth through
                                                         the cycle

     36%     Aftermarket            16%      ~8 - 10%    Airbus AM growing faster due to fleet aging,
             (Commercial/                                excellent product positions plus outsourcing trend
             Regional/Bus/GA)                            support higher than market growth rate


     25%     Defense and Space      7%        ~5 - 8%    OE - Positions on funded platforms worldwide, new
             OE and Aftermarket                          products provide stable growth
                                                         Aftermarket - Platform utilization, upgrade
                                                         opportunities support long-term growth

     6%      Other                  14%       ~10%

     100%    Total                  12%      ~11 - 13%


18
Aerospace and Defense Themes
     Commercial Aircraft Original Equipment Production
         Record levels of new orders for commercial airplanes in 2007
         Expect more orders than deliveries in 2008 – book-to-bill greater than 1
         Manufacturers continue to raise production rates
         Strong orders for new models entering production, especially Boeing’s 787 Dreamliner
         and Airbus A350 XWB
         Deliveries expected to increase through 2011 with slight drop in 2012
         Continued strong demand for larger regional jets

     Commercial Aircraft Aftermarket Products and Services
         Worldwide growth in available seat miles supports demand for replacement parts and
         repair and overhaul services
          – Expect 4 – 5 percent base volume growth over the long-term
          – Consistent and predictable over the cycle
         Aging aircraft fleet drives additional growth for many popular models of aircraft

     Defense and Space Products and Services
         Strong demand for products supporting platforms
          – Original equipment and aftermarket
          – Good positions on newly funded platforms (e.g. Black Hawk helicopters, F-35)
         New opportunities for mission equipment and intelligence, surveillance and
         reconnaissance (ISR) products


19
Goodrich Content on
                                                                    Forecast In-Service Fleet
     25,000                                                                          Total Growth
                         A/C with lower GR aftermarket                              Rate 2008 – 2015
                         A/C with higher GR aftermarket                                    4%

     20,000



     15,000


                                                                                      Growth Rate
     10,000                                                                           2008 – 2015
                                                                                          8%



      5,000



         0
              2000       2002           2004   2006   2008   2010    2012   2014

     Goodrich has higher aftermarket content on airplanes least likely to be retired,
       expected to help continue above market growth rate for aftermarket sales
20            Source: Airline Monitor
2008 Outlook
                                                          P&L Summary ($M)

                                         Actual      Estimate
                                          2007         2008          B/(W)
     Sales                               $6.4B       $7.1-$7.2B     ~11 - 13%

     EPS (Diluted)

       - Continuing Operations           $3.89      $4.15-$4.30      +7-11%

       - Reported                        $3.79      $4.15-$4.30     +10-14%

     Net cash provided by operating
     activities, minus capital
     expenditures, as a percent of net    64%          >75%           N/A
     income


     Capital Expenditures                $283       $250 - $270     $13 - $33
     Effective Tax Rate                   31%        33 – 35%        +2 - 4%

          Strong Sales and EPS growth, improved cash flow and lower capital
                                   expenditures
21

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goodrich 4Q07Slides

  • 1. Goodrich Corporation Fourth Quarter 2007 Results January 31, 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 January 31, 2007 Fourth Quarter 2007 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. Fourth Quarter 2007 Highlights Completed sale of Aviation Technical Services to a subsidiary of Macquarie Group Limited Continued investments in growing aftermarket business Announced expansion of MRO campus in Monroe, N.C. Unveiled new MRO facility in Dubai at Dubai Air Show Enhanced Goodrich presence in high-growth helicopter market with acquisition of Skyline Industries Fourth quarter 2007 results, compared with fourth quarter 2006 Sales grew 12% - continued above market growth rates in commercial aftermarket sales Segment OI margin increased from 13.0% to 15.9% Net income per diluted share of $1.04 – a 33% increase over fourth quarter 2006 – Includes $0.09 per diluted share related to Northrop Grumman settlement 4
  • 5. 2008 Outlook Full Year 2008 Outlook No changes to previous outlook provided on October 25, 2007 – Sales outlook of $7.1 - $7.2 billion – approximately 11 - 13% growth over 2007 results – Outlook for net income per diluted share of $4.15 - $4.30 - approximately 10 - 14% growth over 2007 results Includes expected increase in effective tax rate from ~31% in 2007 to 33 – 35% in 2008 – anticipated unfavorable impact of approximately $0.15 per share in 2008 – Net cash provided by operating activities, minus capital expenditures, expected to be greater than 75% of net income 5
  • 6. Delivering Sustained Sales Growth and Margin Expansion Sales $M Segment Operating Income Margins (Trailing Four Qtrs.) (Trailing Four Qtrs.) 7,000 18.0% 6,500 16.0% 14.0% 6,000 12.0% 5,500 10.0% 5,000 8.0% 4,500 6.0% 4,000 4.0% 2.0% 3,500 0.0% 3,000 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q4 2004 Q2 2005 Q4 2005 Q2 2006 Q4 2006 Q2 2007 Q4 2007 2004 2005 2005 2006 2006 2007 2007 6
  • 8. Fourth Quarter 2007 – Financial Summary Year-over-Year Performance 4th Qtr 4th Qtr (Dollars in Millions, excluding EPS) 2007 2006 Change Sales $1,668 $1,495 12% Segment operating income $266 $194 37% - % of Sales 15.9% 13.0% +2.9% Income - Continuing Operations $134 $ 98 36% - Net Income $132 $ 99 34% Diluted EPS - Continuing Operations $1.05 $0.77 36% - Net Income $1.04 $0.78 33% 8
  • 9. Full Year 2007 – Financial Summary Year-over-Year Performance Full Year Full Year (Dollars in Millions, excluding EPS) 2007 2006 Change Sales $6,392 $5,719 12% Segment operating income $1,028 $772 33% - % of Sales 16.1% 13.5% +2.6% Income - Continuing Operations $497 $478* 4% - Net Income $484 $482* -- Diluted EPS - Continuing Operations $3.89 $3.78* 3% - Net Income $3.79 $3.81* (1%) * Full year 2006 results include tax settlements totaling $145 million, or $1.15 per diluted share 9
  • 10. Fourth Quarter 2007 Year-over-Year Financial Change Analysis (Dollars in Millions) Net Income After-tax Net Item Sales per Diluted Income Share Fourth Quarter 2006 – Net Income $1,495 $99 $0.78 Increased overall volume, efficiency, mix, other $147 $41 $0.35 Northrop Grumman settlement $12 $0.09 Foreign exchange translation costs $26 ($4) ($0.03) Higher effective tax rate ($21) ($0.17) Other income (expense) $7 $0.05 Discontinued Operations ($2) ($0.01) Fourth Quarter 2007 – Net Income $1,668 $132 $1.04 10
  • 11. Fourth Quarter 2007 Year-over-Year Segment Results 4th Quarter 4th Quarter Change 2007 2006 Dollars in Millions $ % Sales Actuation and Landing Systems $637 $546 $91 17% Nacelles and Interior Systems 543 $511 $32 6% Electronic Systems $488 $438 $50 11% Total Sales $1,668 $1,495 $173 12% Segment OI Actuation and Landing Systems $68 $34 $34 99% Nacelles and Interior Systems $126 $95 $31 34% Electronic Systems $72 $65 $7 10% Total Segment OI $266 $194 $72 37% Segment Margin Actuation and Landing Systems 10.6% 6.2% N/A +4.4% Nacelles and Interior Systems 23.3% 18.5% N/A +4.8% Electronic Systems 14.8% 14.9% N/A (0.1%) Overall Segment Margin 15.9% 13.0% N/A +2.9% 11
  • 12. Fourth Quarter 2007 Sequential Period Segment Results 4th Quarter 3rd Quarter Change 2007 2007 Dollars in Millions $ % Sales Actuation and Landing Systems $637 $608 $29 5% Nacelles and Interior Systems 543 $545 ($2) -- Electronic Systems $488 $449 $39 9% Total Sales $1,668 $1,602 $66 4% Segment OI Actuation and Landing Systems $68 $73 ($5) (7%) Nacelles and Interior Systems $126 $144 ($18) (13%) Electronic Systems $72 $59 $13 22% Total Segment OI $266 $276 ($10) (4%) Segment Margin Actuation and Landing Systems 10.6% 12.1% N/A (1.5%) Nacelles and Interior Systems 23.3% 26.3% N/A (3.0%) Electronic Systems 14.8% 13.1% N/A +1.7% Overall Segment Margin 15.9% 17.2% N/A (1.3%) 12
  • 13. Summary Cash Flow Information Item 4th Quarter 4th Quarter (Dollars in Millions) 2007 2006 Income from Continuing Operations $134 $98 Depreciation and Amortization $62 $62 Working Capital – (increase)/decrease – defined ($9) $27 as the sum of A/R, Inventory and A/P Deferred income taxes and taxes payable ($8) $26 Accrued expenses, other (including pension contributions) $9 $33 Cash Flow from Operations $188 $246 Pension Contributions - worldwide ($22) ($15) Capital Expenditures ($122) ($102) 13
  • 14. Sales by Market Channel 14
  • 15. Full Year 2007 Sales by Market Channel Total Sales $6.4 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 15
  • 16. Sales by Market Channel Fourth Quarter 2007 Change Analysis Actual Goodrich Change Comparisons 4Q 2007 4Q 2007 Full Year 2007 vs. vs. vs. Full Year 2006 4Q 2006 3Q 2007 Boeing and Airbus – Aircraft Deliveries 12% 8% 8% OE Production Regional, Business & Aircraft Deliveries 29% 7% 20% General Aviation - OE Aftermarket – Large ASMs, Age, Cycles, Commercial, Regional, 11% (2%) 16% Fleet size Business and GA Defense and Space – US, UK Defense 6% 5% 7% OE and Aftermarket Budgets Other IGT, Other 17% 11% 14% Goodrich Total Sales 12% 4% 12% 16
  • 18. 2008 Sales Expectations By Market Channel Full Year 2007 2008 2007 Goodrich Goodrich Market Market expectations - 2009 and beyond Actual Expected Sales Mix Growth Growth 10% Boeing OE Del. Growth continues for 737, 777, A320; 15% Airbus OE Del. A380, 787 and A350 introductions support deliveries past normal peak 25% Total (GR Weight) 8% ~20% 8% Regional/Bus/GA 20% ~13% CF34-10 Engine Nacelles and tail cone on OE (Weighted) EMBRAER 190 support continued growth through the cycle 36% Aftermarket 16% ~8 - 10% Airbus AM growing faster due to fleet aging, (Commercial/ excellent product positions plus outsourcing trend Regional/Bus/GA) support higher than market growth rate 25% Defense and Space 7% ~5 - 8% OE - Positions on funded platforms worldwide, new OE and Aftermarket products provide stable growth Aftermarket - Platform utilization, upgrade opportunities support long-term growth 6% Other 14% ~10% 100% Total 12% ~11 - 13% 18
  • 19. Aerospace and Defense Themes Commercial Aircraft Original Equipment Production Record levels of new orders for commercial airplanes in 2007 Expect more orders than deliveries in 2008 – book-to-bill greater than 1 Manufacturers continue to raise production rates Strong orders for new models entering production, especially Boeing’s 787 Dreamliner and Airbus A350 XWB Deliveries expected to increase through 2011 with slight drop in 2012 Continued strong demand for larger regional jets Commercial Aircraft Aftermarket Products and Services Worldwide growth in available seat miles supports demand for replacement parts and repair and overhaul services – Expect 4 – 5 percent base volume growth over the long-term – Consistent and predictable over the cycle Aging aircraft fleet drives additional growth for many popular models of aircraft Defense and Space Products and Services Strong demand for products supporting platforms – Original equipment and aftermarket – Good positions on newly funded platforms (e.g. Black Hawk helicopters, F-35) New opportunities for mission equipment and intelligence, surveillance and reconnaissance (ISR) products 19
  • 20. Goodrich Content on Forecast In-Service Fleet 25,000 Total Growth A/C with lower GR aftermarket Rate 2008 – 2015 A/C with higher GR aftermarket 4% 20,000 15,000 Growth Rate 10,000 2008 – 2015 8% 5,000 0 2000 2002 2004 2006 2008 2010 2012 2014 Goodrich has higher aftermarket content on airplanes least likely to be retired, expected to help continue above market growth rate for aftermarket sales 20 Source: Airline Monitor
  • 21. 2008 Outlook P&L Summary ($M) Actual Estimate 2007 2008 B/(W) Sales $6.4B $7.1-$7.2B ~11 - 13% EPS (Diluted) - Continuing Operations $3.89 $4.15-$4.30 +7-11% - Reported $3.79 $4.15-$4.30 +10-14% Net cash provided by operating activities, minus capital expenditures, as a percent of net 64% >75% N/A income Capital Expenditures $283 $250 - $270 $13 - $33 Effective Tax Rate 31% 33 – 35% +2 - 4% Strong Sales and EPS growth, improved cash flow and lower capital expenditures 21