Smiths Aerospace

1
Smiths Aerospace

• Presentation to Investors
• by
• Dr John Ferrie
• Group Managing Director
• Cheltenham Thursday 26th May 2005

2
US defence spending flattening The civil
aerospace industry is recovering Airline
customers are still making huge losses
So why is Aerospace attractive?
3
Capabilities on military transports(Applications
C-130AMP, C-130J, C-17, C-27, P-8A MMA, B767
Tanker)
Cargo Door Drive/Actuator
Flight Control Actuators
Engine Components (Tailpipe/Shrouds)
Aerial Refuelling Pods Aerial Refuelling
System and Components
Primary flight controls
Gust lock
Engine Components
Primary flight controls
Primary Flight Controls
APU door door/slides actuators
Fuel and hydraulic tubes/hoses
High lift actuation system
Wing structures
Engine Instrument Displays Integrated
Avionics Panels and Light Control Data
Management Self-contained Navigation System
Remote input/output
Nacelles fairings
Propellers
Integrated Landing Gear Actuation and Control
System Hydraulic Control Valves
Landing Gear Actuation and Control Nose Wheel
Steering System Hydraulic Control Valves
Hydraulic Fuses
Cable Harnesses and Connectors
Airdrop System Components Auxiliary Power
Environmental Control Power Distribution and
Control Generators/Power Conversion
4
Capabilities on fighters(Applications JSF,
F-22, F-18, Eurofighter, Hawk, F-16)
Battery Charging System Power Supplies Prognostics
and Health Monitoring System
Variable Speed Constant Frequency Power
Generation Regulated/Transformer Rectifier Unit
Fuel Dump
Primary Flight Control Actuators Empennage
Components
Airbrake Actuator
Remote Input/Output
Variable Exit Nozzle/Thrust Vectoring Actuation
System Engine Distress And Monitoring System
Secondary Flight Control
Fin Control Actuator Auto Target Recognition
Gun Pod
Tailcone
Cable Harnesses and Connecters
Primary Flight Control Actuators
Canopy/Windscreen System/Canopy Actuators
Refueling Probe
Mission Planning And Debrief Systems (Ground
Based)
Stores/Weapon Deployment Actuation System
Wing Structures
Pylons Pylon Interface Unit Missile Lock
Seat Actuator
Doors Air Intake Control
Landing Gear Actuation and Uplock Mechanism Nose
Wheel Steering Hydraulic Valves Holdback Bar
Landing Gear Actuation Door Lock
Fuel Tank Active Fuel Probes
Hydraulic Fuses Reservoir Valves Accumulator
Integrated Modular Avionics Mission
Computer Utilities Computer Stores Management
Systems Interface Blanker Unit Supplementary
Power and Cooling System Environmental Control
System
Fuel and Hydraulic Tubes/Hoses
Engine Components
Integrated Cockpit Suite Data Recording/Displays P
itch Feel
5
Capabilities on UAVs(Applications X-47, X-45)
Fuel and Hydraulic Tubes/Hoses
Variable Speed Constant Frequency Generator Power
Distribution System Regulated/Transformer
Rectifier Unit
Cable Harnesses And Connectors
Composite Structures
Utilities Computer
Remote Input/Output
Flight Control Actuation System
Active Fuel Probes
Utility/Accessory Actuators
Battery Charging System Remote Interface Unit
Engine Components Engine Distress and Monitoring
System
Refueling Probe
Landing Gear Control
Landing Gear
Chemical and Biological Detection
Stores Management System Weapon Door Control
Data Recording Mission Computer Vehicle
Management System Prognostics And Health
Monitoring Supplementary Power and Cooling
System Environmental Control System
6
Capabilities on large commercial
aircraft(Applications B737, A320, B777,
A330/340, B787)
Fuel Systems
High-lift Systems
Fuel and Hydraulic Tubes/Hoses
Primary Flight Control Actuators
Airframe Components
Primary Flight Control Actuators
Remote Input/Output
Power Generation
Cable Harnesses and Connecters
Power Generation
Environmental Control
Doors and Door Actuators
Flying Control Surfaces
Integrated Avionics Flight Management Data
Management Displays
Primary Flight Control Actuators
Wing Structures
Landing Gear Actuation and Control
Fuel Systems
Structures
Power Distribution
Thrust Reverser and Cowl Opening Actuation System
Doors and Door Actuators
Utilities Management
Engine Components Engine Actuation
Wing Structures
Landing Gear Actuation And Control
7
Boeing 787 Dreamliner
Major Systems won by Smiths
Programme Status

• Common Core
• High Lift
• Landing Gear

• Firm Orders 64
• Options 24
• Entry into Service 2008

Trend to systems integration, but each customer
is different
8
Airbus A380
Programme Status
Major Systems won by Smiths

• Firm Orders 139
• Options 70
• Entry into Service 2006

• High Lift
• Landing Gear

9
What are we?

• Aerospace Systems
• Delivering Integrated Solutions

Engine Components Growth fueled by Competitiveness

• Northrop Grumman selects Smiths for J-UCAS
  Landing Gear System 8th February 2005

• Smiths expands Aircraft Engine Facility in China
  1st November 2004

10
Smiths Aerospace Business Dimensions
Electronic systems
FY04 Sales 1,006m
Mechanical systems

• Military / Civil split 60 / 40

Engine components
Sales Split
Recent Additions
RD/Sales

• DGT acquired for 57m in mid 04
• Integrated Aerospace acquired for 57m at end 05

• Company Funded (expense to profit)
• Customer Funded (largely govt / military)

8
12
11
Where are we?
RoW
China
Poland
Australia
Singapore
Total employees circa 11,000
12
Smiths Aerospace on Major Platforms Typical
programme revenues
Boeing 787 2.6b common core system, landing
gear and high lift actuation systems, flight
recorder
Airbus A380 1b landing gear extension
retractionsystem, actuators, high lift
actuation, wing components
Airbus 320 650m avionics, hydraulics, engine
components
JSF 3b avionics, utilities, hydraulics,
engine components
Eurofighter 600m avionics, utilities,
hydraulics, engine components
Boeing 777 800m electrical power, utilities,
hydraulics, engine components
F-18 E/F 650m weapons systems, utilities,
hydraulics, engine components
13
Competitors
14
Aeroengine Component supplier
Engine side wall
Fabricated Mixers
Machined Shafts
Machined Combustors
Flash Welded Rings
15
Business Dimensions - Aftermarket
TotalIntegratedSupport

• Service Based

2005 Sales
PBL / Logistics Support

• Performance Based

Aftermarket
Original Equipment
Rate per hour

• Usage based

Fixed Price

• Cost Based

Time Material

• Cost driven
• Reactive

16
How are we performing?
Smiths Aerospace performance in H1 2005
Aerospace
at constant currency 17 24
H1 2005 514 39 8
m Sales Operating Profit Margin
Contribution to Smiths Group operating profit
US 101
Eurofighter
Boeing 787

• Delivered first system for Airbus A380, F-35 JSF,
  C-130 AMP
• Development work on Boeing 787 Dreamliner on
  schedule
• Selected for complete landing gear on X-47B
• Teamed with Lockheed on US 101 Presidential helo
  fleet
• Capacity in China doubled by 2006
• Engine component plant in Poland being expanded

17
Smiths Aerospace Sales Trends
18
The Future Our view of the Global Military market
Smiths increasing market share while market
flattens
19
The Future Our view of the Global civil market
Smiths increasing market share Opportunities in
later years for new narrow bodies
20
Growing as anticipated
US defence spending flattening The civil
aerospace industry is recovering Airline
customers are still making huge losses
So why is Smiths so confident?