Perspectives on the Rotary Wing Market. Bob Kenneally Director, Army Programs Goodrich Corporation (703)

Transcription

1 Perspectives on the Rotary Wing Market Bob Kenneally Director, Army Programs Goodrich Corporation (703)

2 Agenda Goodrich Corporate Overview World rotorcraft market demand International market assessment Research and Development Future state of military helicopter industry Questions 2

3 One of the largest worldwide aerospace and defense suppliers Broad portfolio of systems and products Develop flight critical systems and products Significant and rapidly growing defense and space presence Operating history of over 140 years 2009 Sales - $6.7 Billion Over 24,000 employees at more than 80 locations worldwide A Global Leader in Aerospace and Defense 3 Extensive Design and Manufacturing Capability

4 A Global Leader in Aerospace and Defense 4 Goodrich Well Established in Aerospace/Defense by 2002 Acquired Rosemount Aerospace, Cleveland Pneumatic Acquired Simmonds Precision Acquired 1989 Tramco Acquired Rohr, Inc., Gulton Data Systems Sold BF Goodrich Tire Division Acquisition of TRW Aeronautical Systems Acquired Raytheon Space & Optical Acquired Coltec Industries Spin-off of Geon (PVC) Acquisition of Sensors Unlimited Founded in 1870 by Dr. Benjamin Franklin Goodrich Acquisition of TEAC, Skyline, ROI and AIS Sold Performance Materials Spin-Off of Engineered Industrial Products

5 Organization Marshall Larsen Chairman, President and Chief Executive Officer Actuation and Landing Systems Jack Carmola Segment President Nacelles and Interior Systems Cindy Egnotovich Segment President Electronic Systems Curtis Reusser Segment President Landing Gear Mike Brand Aerostructures Marc Duvall Sensors and Integrated Systems Brian Gora Aircraft Wheels and Brakes Brian Brandewie Actuation Systems Mike Gardiner Interiors Tom Mepham Customer Services Paul Snyder Engine Control and Electrical Power Systems Bob Yancey ISR Systems Tom Bergeron Engine Components Daphne Falletti 5

6 6 Goodrich Culture

7 Over 80 Locations Around the World Global Presence Americas Brazil (1) Canada (2) Mexico (2) United States (47) Europe England (9) France (6) Germany (4) Northern Ireland (1) Poland (1) Scotland (1) Worldwide presence with customer support, manufacturing, design and sales located across the globe Mid. East, Asia and Australia Australia (1) China (4) Dubai (1) India (1) Indonesia (1) Japan (1) Singapore (1) 7

8 2009 Sales by Market Channel Total Sales $6.7 Billion TOTAL DEFENSE & SPACE: 30% Other: 5% Boeing Commercial OE: 10% TOTAL COMMERCIAL OE: 33% Defense & Space, OE & Aftermarket: 30% OE Airbus Commercial OE: 17% AM Regional, Business & General Aviation OE: 6% Regional, Business & General Aviation Aftermarket: 6% Large Commercial Aircraft Aftermarket: 26% TOTAL COMMERCIAL AFTERMARKET: 32% 8 Balanced business mix, aftermarket represents ~45% of total sales

9 Military Helicopter Core Competencies Goodrich has strong positions on existing helicopters and are developing capabilities for new models Broad product portfolio: 9 Integrated vehicle health system Drive systems Rotor actuators Rescue hoists Seating (Pilot, Crew, Troops) Electric power generation & distribution Lighting systems (Interior, Exterior, Cockpit) Engine controls Engine components Sensor systems (Icing, De-Icing, Air Data) SWIR Sensors and Gimbals Laser warning systems TERPROM navigation solutions Rate Gyros Flight control actuators / Fly by wire Landing gear

10 10 A Broad Product Portfolio Helicopters

11 World Rotorcraft Market Demand World Helicopter Production Forecast for Military and Civil is 22,986 worth $169.1B Military production is 6,209 helicopters worth $110.4B Civil production is 16,777 helicopters worth $58.7B Economic downturn has reduced helicopter order backlog Production projections remain robust DoD Major Programs of Record Total Procurement Numbers World Helicopter Production 1,594 1,711 1,825 1,955 1,994 1,562 1,429 1,387 1,451 1, Military Civil Platform QTY Prime Program UH-60M 1227 Sikorsky New MH-60R/S 523 Sikorsky New HH-60G 112 Sikorsky Rebuild CH-53K 200 Sikorsky New CH-47F 513 Boeing Rebuild AH-64 Block III 690 Boeing Rebuild/56 New UH-72A 345 EADS New OH-58D 352 Bell Rebuild V Bell/Boeing New $20,000,000,000 $18,000,000,000 $16,000,000,000 $14,000,000,000 $12,000,000,000 $10,000,000,000 $8,000,000,000 $6,000,000,000 $4,000,000,000 $2,000,000,000 $0 World Helicopter Production Value US Military Modernization Driving the Market 11 Military Source: Forecast International April 2010 Rotorcraft Forecast Civil

12 Military Medium/Heavy Helicopter production remains robust through 2014 Military market projected to trend downward after 2014 as major programs reach maturity Demand for light helicopters projected to increase over the next five years driven by new products and working off order backlog World Rotorcraft Market Demand World Military Helicopter Production Opportunities for industry are in expanding markets, new product development, remanufacturing and modification of rotorcraft Demand addressed by industry managing existing order backlogs and aggressively working to expand market share After 2014 the military market forecast shows declining production as current procurements are delivered and new start military acquisitions are limited AAS, SAR, Presidential Helicopter 12 Bell Boeing Sikorsky AgustaWestland Eurocopter NHI Other World Military Helicopter Production Value 30,000,000,000 25,000,000,000 20,000,000,000 15,000,000,000 10,000,000,000 5,000,000, Bell Boeing Sikorsky AgustaWestland Eurocopter NHI Other Source: Forecast International April 2010 Rotorcraft Forecast

13 International Market Assessment International interest in helicopters is increasing Involvement in supporting international conflicts Disaster relief driving procurement for military and civil markets Governments supporting development of national helicopter industries Opportunities for international sales increasing in China, India, South Korea, Turkey and other countries International manufactures are developing new product offerings Different business strategies are being pursued by industry to address competition across the spectrum of light, medium, heavy, civil and military markets 13 Reference: Forecast International April 2010 Rotorcraft Forecast

14 Research and Development Technology to address size, weight, power, increase in speed, improved fuel efficiency will drive research and development Funding to support product innovation has been limited in the U.S with a focus on fixed wing development DoD has started the Vertical Lift Consortium to leverage existing government funding and industry investment in R&D Industry will continue to develop new technology to add to existing platforms New programs expected to focus R&D investment are the Joint Multi- Role, Joint Theater Lift, Joint Heavy lift, European Heavy Lift Helicopter 14 Reference: Forecast International April 2010 Rotorcraft Forecast

15 Research and Development Vertical Lift Consortium (VLC) Office of the Secretary of Defense (OSD) established the VLC in Oct 2009 DOD Partner with vertical lift industry and academia Improve the long-term state of military vertical lift aircraft Improve the U.S. vertical lift sector Establish a formal long term mechanism to facilitate teaming, networking, planning and technology development Establish a contract vehicle with a single consortium using Title 10 Other Transaction Authority to focus Science and Technology (S&T) funding on vertical lift technology prototype development Development programs will transition to Federal Acquisition Regulation (FAR) for competition Leverage limited S&T funding to develop future Vertical Lift Capabilities 15 Reference: Forecast International April 2010 Rotorcraft Forecast

16 Future State of Military Helicopter Industry Military market projected to remain robust with the U.S. leading procurement and upgrades in the near term Civil market slump showing signs of growth Market forces for OEMs and suppliers not projected to exceed capacity Competition for expanding into U.S. and international markets will remain strong Technology to address size, weight, power, increase in speed, improved fuel efficiency will drive research and development Opportunities on existing platforms driven by increasing reliability, lowering costs and providing unique mission capabilities Joint ventures and some consolidation expected to follow a normal course as markets adjust to demand over time 16 Reference: Forecast International April 2010 Rotorcraft Forecast

17 Summary Projections show there is no one formula for success in the rotorcraft industry Industry working to expand market share while managing existing backlog Military Medium/Heavy Helicopter production remains robust through 2014 Military market projected to trend downward after 2014 as major programs reach maturity Demand for light helicopters projected to increase over the next five years driven by new products and working off order backlog Opportunities for industry are in expanding markets, new product development, remanufacturing and modification of rotorcraft World Military Helicopter Production Bell Boeing Sikorsky AgustaWestland Eurocopter NHI Other World Military Helicopter Production Value 30,000,000,000 25,000,000,000 20,000,000,000 15,000,000,000 10,000,000,000 5,000,000,000 Rotorcraft Industry Will Remain Competitive Bell Boeing Sikorsky AgustaWestland Eurocopter NHI Other Source: Forecast International April 2010 Rotorcraft Forecast