smiths aerospace 1 farnborough 2006 meetings with investors, farnborough airshow july 17-19, 2006...

Download Smiths Aerospace 1 Farnborough 2006 Meetings with investors, Farnborough Airshow July 17-19, 2006 Senior management at the show: Keith Butler-Wheelhouse,

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PowerPoint PresentationJuly 17-19, 2006
Keith Butler-Wheelhouse, Chief Executive, Smiths Group
John Ferrie, President, Smiths Aerospace
Alan Thomson, Financial Director, Smiths Group
John Langston, Finance Director Designate, Smiths Group
Oliver Towers, VP Strategy, Smiths Aerospace
Russell Plumley, Director, Investor Relations, Smiths Group

Making a significant contribution to the performance of Smiths Group
* Analysts’ consensus,
Investment in technology
R&D figures are provisional estimates for FY06
(Equivalent figures for FY05 were 6% company funded and 13% customer funded)
Global defence activity remains high
US defence procurement levelling off later than expected
Commercial aerospace growth continues
Tier 1 leaders are benefiting from supply
chain rationalisation
Global “hot spots” and tensions still driving military spending, though type of spending is changing and moving away from large equipment procurement programmes to upgrades, service life extensions and support.
Civil passenger traffic (RPKs) recovered to pre 9/11 trend and remaining robust despite sustained high oil prices
(June 2006 IATA comment – since 2001 airline efficiency improvements have moved the break-even fuel price from US$14 per barrel to US$50).
Supply chain rationalisation is an objective of most prime contractors.
Smiths Aerospace
to specialised components
in last five years
KC-767 Global Tanker AH-64D
Major assembly underway
First flight: Summer 2007
Orders: 159 plus options
Landing Gear systems, High Lift actuation,
Engine components, Aerostructures
Cockpit video, Engine components, Aerostructures
Smiths Aerospace
Long Lead funding for 5 C-TOL aircraft for USAF:
First flight: Q4, 2006 (C-TOL)
EIS: 2012/13
and Japan:
Boeing KC-767 Global Tanker:
Mission Control system, Refuelling system including wing pod, boom control and power
LM F-35 (JSF): Electrical Power Management system, Remote Input/Output units, Thrust Vectoring and Lift Actuators, Engine components
Smiths Aerospace
Focus on added value services that improve
operator performance and reduce
Logistics (PBL) services
Globally providing aircraft operators with high performance support.
Partnership with Aviall for civil spares
% sales
VALUE @ 2005 $bn
1100 a/c per annum
Strong sales of both narrow and wide bodies driving growth to 2008.
Wide body demand remains robust when narrow body sales forecast to decline.
Strong narrow body demand forecast to come back in later years fuelled by retirements in North America – potentially supported by new aircraft.
Smiths Aerospace
Steady growth continues
VALUE @ 2005 $bn
Forecast for new equipment – upgrades and support will increase in importance
Export markets ( e.g. Saudi & India) and indigenous programmes (e.g. in India and South Korea) expected to supplement stable US spend profile.
Smiths Aerospace
In production: B737, B777, A320, A330/A340, F-15,
F-16, F-18 E/F, F-22, C-17, C-27, C-130J, T-50, Hawk, Typhoon, BA609, V-22, EH-101, AH-64D, Chinook, Regional aircraft, Business jets, Aftermarket support of wide range of civil and military platforms
In development: JSF, A380, B787,
C-130AMP, KC-767 Global Tanker,
VH-71, P-8A, Future Lynx
New military programmes/Upgrades
Future growth secured
Secure momentum base business
on future narrow-bodies
CCS on B787
Gaining market share from investment in advanced manufacturing
for engine components
Why is Smiths Aerospace so confident?
Strong platform positions – $16bn of new business won over last 5 years
Integrated Systems solutions well suited to future market needs
Engine Components business delivering planned growth
Sustained drive on all aspects of cost
US defence procurement levelling off later than expected
Commercial aerospace growth continues
July 17-19, 2006