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Goodrich Corporation
Second Quarter 2007 Results

July 2007
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 July 26, 2007 Second 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
Second Quarter 2007 Highlights

    Signed long-term landing gear supply agreement with Boeing

    Rollout of Boeing 787 with significant Goodrich positions

    Second quarter 2007 results, compared to second quarter 2006
       Sales grew 9% - continued significant growth in commercial
       aftermarket sales
       Segment OI margin increased from 14.0% to 16.0%
       Net income per diluted share of $0.98 – a 53% increase compared to
       second quarter 2006

    Full Year 2007 Outlook
        Sales outlook increased to $6.5 - $6.6 billion ($6.3 - $6.5 billion
        previously)
        Net income per diluted share outlook increased to $3.50 - $3.60 ($3.20 –
        $3.35 per diluted share previously)
        Net cash provided by operating activities, minus capital expenditures,
        of 60% – 75% of net income (unchanged)
4
Goodrich Positions
                                                                                                                  Boeing 787 Dreamliner

                                                                                                                                        Flight Deck Lighting System
                                                                       Cabin Attendant Seating
                                                                                                 Fuel Quantity Indicating Systems
                                                                                                  - Fuel Quantity Data Concentrators
                                                                                                  - Refuel Panel


        Proximity Sensing Systems
                                                         Emergency Power Assist System

                                                                                                                                                      Flight Deck Video
                                                                                                                                                      Surveillance Systems




Exterior Lighting Systems                                                                                                                                 Air Data Sensors
                                                Cargo Systems
             Engine Data Concentrators
                                                                                                                                 Heated Floor Panels &
                                                                                                                                 Integrated Controllers



                                         Nacelles & Thrust Reversers

    Icing Conditions Detectors                                                                    • Wheels & Electric Braking Systems
                                                                        • Trent 1000 Engine
                                                                                                  • Braking System Controllers
                                                                        Sensor Suite
                                                                        • Trent 1000 Engine
                                                                        Engine Controls




    5
Delivering Sustained Sales Growth
                                                                        and Margin Expansion
                            Sales
$M                                                                  Segment Operating Income Margins
                    (Trailing Four Qtrs.)
                                                                          (Trailing Four Qtrs.)
7,000
                                                          16.0%
                          2007 Outlook Range
                                                                                                              ~
                                                                            Approximate 2007 Outlook
6,500
                                                          14.0%


6,000                                                     12.0%


5,500                                                     10.0%


                                                          8.0%
5,000


                                                          6.0%
4,500


                                                          4.0%
4,000

                                                          2.0%
3,500

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




 6
Year-over-Year Financial Results




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


                                                    2nd Qtr   2nd Qtr
            (Dollars in Millions, excluding EPS)     2007      2006     Change

    Sales                                           $1,622    $1,483     9%


    Segment operating income                         $259      $208      24%


      - % of Sales                                  16.0%     14.0%     +2.0%

    Income
       - Continuing Operations and Net Income        $125      $81       54%


    Diluted EPS
       - Continuing Operations and Net Income        $0.98     $0.64     53%



8
First Six Months 2007 – Financial Summary
                                                        Year-over-Year Performance


                                                                 1st Six         1st Six
            (Dollars in Millions, excluding EPS)                 Months          Months        Change
                                                                  2007            2006
    Sales                                                         $3,211         $2,907          10%


    Segment operating income                                       $490           $379           29%

       - % of Sales                                               15.3%           13.0%         +2.3%
    Income
       - Continuing Operations                                     $225           $281*         (20%)
       - Net Income                                                $225           $283*         (20%)

    Diluted EPS
       - Continuing Operations                                     $1.76          $2.23*        (21%)
       - Net Income                                                $1.76          $2.24*        (21%)


    * First Half 2006 results include tax settlements totaling $132 million, or $1.05 per diluted share
9
Second Quarter 2007
                                        Year-over-Year Financial Change Analysis
                                                            (Dollars in Millions)

                                                                         After-tax   Diluted
                                Item                        Sales
                                                                         Income       EPS

 Second Quarter 2006 – Income from Continuing Operations    $1,483         $81       $0.64

     Increased overall volume, efficiency, mix, other       $127           $41       $0.32
     2006 pension curtailment and long-term debt exchange
                                                                           $10       $0.08
     costs
     Foreign exchange translation costs                      $12           ($7)      ($0.05)

     Stock-based compensation                                              ($6)      ($0.05)
     Lower effective tax rate                                               $4       $0.03
     Other income (expense)                                                 $2       $0.01



 Second Quarter 2007 – Income from Continuing Operations    $1,622         $125      $0.98




10
Second Quarter 2007
                                                   Year-over-Year Segment Results
                                        2nd Quarter     2nd Quarter         Change
                                           2007            2006
              Dollars in Millions                                      $              %
     Sales
        Actuation and Landing Systems      $635            $562       $73            13%
        Nacelles and Interior Systems      $534            $515       $19             4%
        Electronic Systems                 $453            $406       $47            12%
     Total Sales                          $1,622          $1,483      $139            9%



     Segment OI
        Actuation and Landing Systems      $61             $39        $22            55%
        Nacelles and Interior Systems      $135            $115       $20            18%
        Electronic Systems                 $63             $54        $9             16%
     Total Segment OI                      $259            $208       $51            24%



     Segment Margin
       Actuation and Landing Systems      9.6%            7.0%        N/A            2.6%
       Nacelles and Interior Systems      25.4%           22.3%       N/A            3.1%
       Electronic Systems                 13.8%           13.3%       N/A            0.5%
     Overall Segment Margin               16.0%           14.0%       N/A            2.0%


11
Second Quarter 2007
                                         Sequential Period Segment Results
                                        2nd Quarter   1st Quarter         Change
                                           2007          2007
                Dollars in Millions                                  $              %
     Sales
        Actuation and Landing Systems      $635          $609        $26            4%
        Nacelles and Interior Systems      $534          $547       ($13)          (2%)
        Electronic Systems                 $453          $433        $20            5%
     Total Sales                          $1,622        $1,589       $33            2%



     Segment OI
        Actuation and Landing Systems      $61           $50        $11            22%
        Nacelles and Interior Systems      $135          $126       $9              7%
        Electronic Systems                 $63           $55        $8             15%
     Total Segment OI                      $259          $231       $28            12%



     Segment Margin
       Actuation and Landing Systems      9.6%          8.2%        N/A        +1.4%
       Nacelles and Interior Systems      25.4%         23.1%       N/A        +2.3%
       Electronic Systems                 13.8%         12.7%       N/A        +1.1%
     Overall Segment Margin               16.0%         14.5%       N/A        +1.5%


12
Summary Cash Flow Information


                                  Item                           2nd Quarter   2nd Quarter
                          (Dollars in Millions)                     2007          2006

 Net Income                                                         $125          $81

     Depreciation and Amortization                                  $63           $61

     Working Capital – (increase)/decrease – defined
                                                                   ($113)        ($106)
       as the sum of A/R, Inventory and A/P

     Changes in Receivables Sold                                     --           ($97)


     Deferred income taxes and taxes payable                        $15           $34

     Accrued expenses, other (including pension contributions)      ($15)         $16

 Cash Flow from Operations                                          $75           ($11)



 Pension Contributions - worldwide                                  ($86)         ($6)

 Capital Expenditures                                               ($59)         ($52)
13
Sales by Market Channel




14
First Half 2007 Sales by Market Channel
                                                             Total Sales $3,211M
                                                                     Total Commercial OE
                                         Other
     Total Defense and
                                          5%
                                                                             32%
           Space
                                                      Boeing
            24%                                    Commercial OE
                                                       10%


                                                                         Airbus
          Defense &
                                                                      Commercial OE
         Space, OE &
                                                                          14%
         Aftermarket
                                    OE
             24%


                                AM
                                                                               Regional,
                                                                            Business & Gen.
                                                                                Av. OE
                                                                                  8%
             Heavy A/C
                                         Large Commercial Aircraft
               Maint.
                                               Aftermarket
                3%
                                                   29%
        Regional, Business &
     General Aviation Aftermarket
                 7%                                                  Total Commercial
                                                                        Aftermarket
                                                                            39%

                                    Balanced business mix
15
Sales by Market Channel
                                         Second Quarter 2007 Change Analysis

                                                Actual Goodrich Change Comparisons
                                              2Q 2007   2Q 2007
                                                                    First Half 2007 vs.
                                                vs.       vs.
                                                                      First Half 2006
                                              2Q 2006   1Q 2007
Boeing and Airbus –
                        Aircraft Deliveries    (1%)       (6%)             2%
OE Production
Regional, Business &
                        Aircraft Deliveries    26%        16%              16%
General Aviation - OE

Aftermarket – Large
                        ASMs, Age, Cycles,
Commercial, Regional,                          14%         1%              18%
                           Fleet size
Business and GA

Defense and Space –      US, UK Defense
                                                8%         7%              8%
OE and Aftermarket          Budgets
Heavy Airframe            Aircraft aging,
                                               12%         9%              13%
Maintenance                Parked Fleet
Other                       IGT, Other         16%         5%              15%
Goodrich Total Sales                            9%         2%              10%


16
2007 Outlook




17
2007 Outlook

     2007 Outlook
        Sales – outlook increased to a range of $6.5 - $6.6 billion
         – 11 - 12 percent increase over 2006
         – Expected sales growth in all segments
         – Expected sales growth in all major market channels
        Net income per diluted share – outlook increased to $3.50 - $3.60,
        including:
         – Margin improvement in all three segments
         – Effective tax rate of 31 – 33 percent (consistent with prior guidance)
         – Increased foreign exchange translation costs of about $26 million
           compared to 2006, $19 million recorded in first half of 2007 (consistent with
           prior guidance)




18
2007 Outlook

     2007 Outlook
        Cash flow – net cash flow provided by operating activities, minus
        capital expenditures:
         – Continue to expect 60 – 75% percent of net income
         – Capital expenditures of $270 - $290 million
              Approximately 40% expected to be associated with:
                    Investments in low cost country manufacturing,
                    Previously announced MRO facility expansions and new facilities
                    to support aftermarket sales growth
                    Capital expenditures related to the company-wide implementation
                    of a new ERP system
         – Worldwide pension plan contributions of approximately $100 million
              $75 million contributed on April 2, 2007




19
2007 Sales Expectations
                                                                          By Market Channel

 Full Year                         2007       2007
   2006                           Market    Goodrich
                     Market                                     Market expectations - 2008 and beyond
                                  Growth     Growth
 Sales Mix
     9%      Boeing OE Del.        12%                    Growth continues for 737, 777, A320;
     17%     Airbus OE Del.         3%                    A380, 787 and A350 introductions support
                                                          deliveries past normal peak
     26%      Total (GR Weight)     7%        ~10%

     7%      Regional/Bus/GA       ~5%        >15%        CF34-10 Engine Nacelles and tail cone on
             OE (Weighted)                                EMBRAER 190 support continued growth through
                                                          the cycle
     33%     Aftermarket          4 - 5%   13% - 15%      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     ~5%        ~10%        OE - Positions on funded platforms worldwide, new
             OE and Aftermarket                           products provide stable growth
                                                          Aftermarket - Platform utilization, upgrade
                                                          opportunities support long-term growth
     3%      Heavy                         Approx. Flat   Sales fluctuate based on A/C age, timing and type
             Maintenance                                  of overhaul
     6%      Other                         Up slightly
     100%    Total                5 – 6%    11 - 12%


20
2007 Outlook Summary


     Continued robust sales growth in commercial aerospace original
     equipment, aftermarket and defense and space market channels
     Expect segment OI margins of about 15% in 2007
         Operational excellence and aftermarket growth
     Expect strong EPS growth in 2007, compared to 2006 - excluding
     the impact of 2006 tax settlements
     2007 Outlook does not include
         Impact of acquisitions or divestitures
         Resolution of A380 claim vs. Northrop Grumman




     Continue to show solid sales growth, margin expansion and EPS growth

21
Goodrich – 2007 and Beyond




22
Financial Goals and Strategic Initiatives
                                Drivers of Long-Term Growth and Performance

 Financial Goals – Perpetuate and grow the enterprise over the long-
   term
     Revenue growth greater than the underlying market metric
     Margin expansion
        Achieve 15 percent segment operating income margin in 2007
     Cash flow conversion at, or greater than, 100 percent over the cycle

 Strategic Initiatives – to achieve financial and business goals:
     Balanced Growth
         Use portfolio mass and breadth to grow all market channels
         Pursue opportunities in defense and space markets
          –   Continue to enhance Intelligence, Surveillance and Reconnaissance positions
     Leverage the enterprise
         Drive cost efficiency and leverage technologies/capabilities
         Balanced application of resources and capital allocation
     Operational excellence
         Continuous improvement
         Supply chain management, including low cost country sourcing and
         manufacturing

23
Aerospace and Defense Themes

     Commercial Aircraft Original Equipment Production
        New orders for commercial aircraft, including regional aircraft, remain very
        strong
        Manufacturers continue to raise production rates
        Deliveries expected to increase an average of 9 percent per year from 2008
        through 2010
        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


24
The Value Proposition for Goodrich
                                               2007 – 2011 Expectations
     Great market positions
     Good top line growth – sustainable, above market metric growth
        Continued strong commercial airplane original equipment growth
        Continued 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 about 15% margin in 2007
     Sustainable margin expansion and income growth beyond the OE
     cycle
     Driving cash flow conversion levels toward 100%


         Entire organization focused on margin expansion and cash flow
                                     growth
25

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goodrich 2Q07Presentation

  • 1. Goodrich Corporation Second Quarter 2007 Results July 2007
  • 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 July 26, 2007 Second 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. Second Quarter 2007 Highlights Signed long-term landing gear supply agreement with Boeing Rollout of Boeing 787 with significant Goodrich positions Second quarter 2007 results, compared to second quarter 2006 Sales grew 9% - continued significant growth in commercial aftermarket sales Segment OI margin increased from 14.0% to 16.0% Net income per diluted share of $0.98 – a 53% increase compared to second quarter 2006 Full Year 2007 Outlook Sales outlook increased to $6.5 - $6.6 billion ($6.3 - $6.5 billion previously) Net income per diluted share outlook increased to $3.50 - $3.60 ($3.20 – $3.35 per diluted share previously) Net cash provided by operating activities, minus capital expenditures, of 60% – 75% of net income (unchanged) 4
  • 5. Goodrich Positions Boeing 787 Dreamliner Flight Deck Lighting System Cabin Attendant Seating Fuel Quantity Indicating Systems - Fuel Quantity Data Concentrators - Refuel Panel Proximity Sensing Systems Emergency Power Assist System Flight Deck Video Surveillance Systems Exterior Lighting Systems Air Data Sensors Cargo Systems Engine Data Concentrators Heated Floor Panels & Integrated Controllers Nacelles & Thrust Reversers Icing Conditions Detectors • Wheels & Electric Braking Systems • Trent 1000 Engine • Braking System Controllers Sensor Suite • Trent 1000 Engine Engine Controls 5
  • 6. Delivering Sustained Sales Growth and Margin Expansion Sales $M Segment Operating Income Margins (Trailing Four Qtrs.) (Trailing Four Qtrs.) 7,000 16.0% 2007 Outlook Range ~ Approximate 2007 Outlook 6,500 14.0% 6,000 12.0% 5,500 10.0% 8.0% 5,000 6.0% 4,500 4.0% 4,000 2.0% 3,500 0.0% 3,000 Q4 Q2 Q4 Q2 Q4 Q2 Q4 2004 Q2 2005 Q4 2005 Q2 2006 Q4 2006 Q2 2007 2004 2005 2005 2006 2006 2007 6
  • 8. Second Quarter 2007 – Financial Summary Year-over-Year Performance 2nd Qtr 2nd Qtr (Dollars in Millions, excluding EPS) 2007 2006 Change Sales $1,622 $1,483 9% Segment operating income $259 $208 24% - % of Sales 16.0% 14.0% +2.0% Income - Continuing Operations and Net Income $125 $81 54% Diluted EPS - Continuing Operations and Net Income $0.98 $0.64 53% 8
  • 9. First Six Months 2007 – Financial Summary Year-over-Year Performance 1st Six 1st Six (Dollars in Millions, excluding EPS) Months Months Change 2007 2006 Sales $3,211 $2,907 10% Segment operating income $490 $379 29% - % of Sales 15.3% 13.0% +2.3% Income - Continuing Operations $225 $281* (20%) - Net Income $225 $283* (20%) Diluted EPS - Continuing Operations $1.76 $2.23* (21%) - Net Income $1.76 $2.24* (21%) * First Half 2006 results include tax settlements totaling $132 million, or $1.05 per diluted share 9
  • 10. Second Quarter 2007 Year-over-Year Financial Change Analysis (Dollars in Millions) After-tax Diluted Item Sales Income EPS Second Quarter 2006 – Income from Continuing Operations $1,483 $81 $0.64 Increased overall volume, efficiency, mix, other $127 $41 $0.32 2006 pension curtailment and long-term debt exchange $10 $0.08 costs Foreign exchange translation costs $12 ($7) ($0.05) Stock-based compensation ($6) ($0.05) Lower effective tax rate $4 $0.03 Other income (expense) $2 $0.01 Second Quarter 2007 – Income from Continuing Operations $1,622 $125 $0.98 10
  • 11. Second Quarter 2007 Year-over-Year Segment Results 2nd Quarter 2nd Quarter Change 2007 2006 Dollars in Millions $ % Sales Actuation and Landing Systems $635 $562 $73 13% Nacelles and Interior Systems $534 $515 $19 4% Electronic Systems $453 $406 $47 12% Total Sales $1,622 $1,483 $139 9% Segment OI Actuation and Landing Systems $61 $39 $22 55% Nacelles and Interior Systems $135 $115 $20 18% Electronic Systems $63 $54 $9 16% Total Segment OI $259 $208 $51 24% Segment Margin Actuation and Landing Systems 9.6% 7.0% N/A 2.6% Nacelles and Interior Systems 25.4% 22.3% N/A 3.1% Electronic Systems 13.8% 13.3% N/A 0.5% Overall Segment Margin 16.0% 14.0% N/A 2.0% 11
  • 12. Second Quarter 2007 Sequential Period Segment Results 2nd Quarter 1st Quarter Change 2007 2007 Dollars in Millions $ % Sales Actuation and Landing Systems $635 $609 $26 4% Nacelles and Interior Systems $534 $547 ($13) (2%) Electronic Systems $453 $433 $20 5% Total Sales $1,622 $1,589 $33 2% Segment OI Actuation and Landing Systems $61 $50 $11 22% Nacelles and Interior Systems $135 $126 $9 7% Electronic Systems $63 $55 $8 15% Total Segment OI $259 $231 $28 12% Segment Margin Actuation and Landing Systems 9.6% 8.2% N/A +1.4% Nacelles and Interior Systems 25.4% 23.1% N/A +2.3% Electronic Systems 13.8% 12.7% N/A +1.1% Overall Segment Margin 16.0% 14.5% N/A +1.5% 12
  • 13. Summary Cash Flow Information Item 2nd Quarter 2nd Quarter (Dollars in Millions) 2007 2006 Net Income $125 $81 Depreciation and Amortization $63 $61 Working Capital – (increase)/decrease – defined ($113) ($106) as the sum of A/R, Inventory and A/P Changes in Receivables Sold -- ($97) Deferred income taxes and taxes payable $15 $34 Accrued expenses, other (including pension contributions) ($15) $16 Cash Flow from Operations $75 ($11) Pension Contributions - worldwide ($86) ($6) Capital Expenditures ($59) ($52) 13
  • 14. Sales by Market Channel 14
  • 15. First Half 2007 Sales by Market Channel Total Sales $3,211M Total Commercial OE Other Total Defense and 5% 32% Space Boeing 24% Commercial OE 10% Airbus Defense & Commercial OE Space, OE & 14% Aftermarket OE 24% AM Regional, Business & Gen. Av. OE 8% Heavy A/C Large Commercial Aircraft Maint. Aftermarket 3% 29% Regional, Business & General Aviation Aftermarket 7% Total Commercial Aftermarket 39% Balanced business mix 15
  • 16. Sales by Market Channel Second Quarter 2007 Change Analysis Actual Goodrich Change Comparisons 2Q 2007 2Q 2007 First Half 2007 vs. vs. vs. First Half 2006 2Q 2006 1Q 2007 Boeing and Airbus – Aircraft Deliveries (1%) (6%) 2% OE Production Regional, Business & Aircraft Deliveries 26% 16% 16% General Aviation - OE Aftermarket – Large ASMs, Age, Cycles, Commercial, Regional, 14% 1% 18% Fleet size Business and GA Defense and Space – US, UK Defense 8% 7% 8% OE and Aftermarket Budgets Heavy Airframe Aircraft aging, 12% 9% 13% Maintenance Parked Fleet Other IGT, Other 16% 5% 15% Goodrich Total Sales 9% 2% 10% 16
  • 18. 2007 Outlook 2007 Outlook Sales – outlook increased to a range of $6.5 - $6.6 billion – 11 - 12 percent increase over 2006 – Expected sales growth in all segments – Expected sales growth in all major market channels Net income per diluted share – outlook increased to $3.50 - $3.60, including: – Margin improvement in all three segments – Effective tax rate of 31 – 33 percent (consistent with prior guidance) – Increased foreign exchange translation costs of about $26 million compared to 2006, $19 million recorded in first half of 2007 (consistent with prior guidance) 18
  • 19. 2007 Outlook 2007 Outlook Cash flow – net cash flow provided by operating activities, minus capital expenditures: – Continue to expect 60 – 75% percent of net income – Capital expenditures of $270 - $290 million Approximately 40% expected to be associated with: Investments in low cost country manufacturing, Previously announced MRO facility expansions and new facilities to support aftermarket sales growth Capital expenditures related to the company-wide implementation of a new ERP system – Worldwide pension plan contributions of approximately $100 million $75 million contributed on April 2, 2007 19
  • 20. 2007 Sales Expectations By Market Channel Full Year 2007 2007 2006 Market Goodrich Market Market expectations - 2008 and beyond Growth Growth Sales Mix 9% Boeing OE Del. 12% Growth continues for 737, 777, A320; 17% Airbus OE Del. 3% A380, 787 and A350 introductions support deliveries past normal peak 26% Total (GR Weight) 7% ~10% 7% Regional/Bus/GA ~5% >15% CF34-10 Engine Nacelles and tail cone on OE (Weighted) EMBRAER 190 support continued growth through the cycle 33% Aftermarket 4 - 5% 13% - 15% 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 ~5% ~10% OE - Positions on funded platforms worldwide, new OE and Aftermarket products provide stable growth Aftermarket - Platform utilization, upgrade opportunities support long-term growth 3% Heavy Approx. Flat Sales fluctuate based on A/C age, timing and type Maintenance of overhaul 6% Other Up slightly 100% Total 5 – 6% 11 - 12% 20
  • 21. 2007 Outlook Summary Continued robust sales growth in commercial aerospace original equipment, aftermarket and defense and space market channels Expect segment OI margins of about 15% in 2007 Operational excellence and aftermarket growth Expect strong EPS growth in 2007, compared to 2006 - excluding the impact of 2006 tax settlements 2007 Outlook does not include Impact of acquisitions or divestitures Resolution of A380 claim vs. Northrop Grumman Continue to show solid sales growth, margin expansion and EPS growth 21
  • 22. Goodrich – 2007 and Beyond 22
  • 23. Financial Goals and Strategic Initiatives Drivers of Long-Term Growth and Performance Financial Goals – Perpetuate and grow the enterprise over the long- term Revenue growth greater than the underlying market metric Margin expansion Achieve 15 percent segment operating income margin in 2007 Cash flow conversion at, or greater than, 100 percent over the cycle Strategic Initiatives – to achieve financial and business goals: Balanced Growth Use portfolio mass and breadth to grow all market channels Pursue opportunities in defense and space markets – Continue to enhance Intelligence, Surveillance and Reconnaissance positions Leverage the enterprise Drive cost efficiency and leverage technologies/capabilities Balanced application of resources and capital allocation Operational excellence Continuous improvement Supply chain management, including low cost country sourcing and manufacturing 23
  • 24. Aerospace and Defense Themes Commercial Aircraft Original Equipment Production New orders for commercial aircraft, including regional aircraft, remain very strong Manufacturers continue to raise production rates Deliveries expected to increase an average of 9 percent per year from 2008 through 2010 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 24
  • 25. The Value Proposition for Goodrich 2007 – 2011 Expectations Great market positions Good top line growth – sustainable, above market metric growth Continued strong commercial airplane original equipment growth Continued 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 about 15% margin in 2007 Sustainable margin expansion and income growth beyond the OE cycle Driving cash flow conversion levels toward 100% Entire organization focused on margin expansion and cash flow growth 25