1 ©2019 Hexcel. All rights reserved.
January 2019
2 ©2019 Hexcel. All rights reserved.
Certain statements contained in this presentation constitute “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact constitute
“forward-looking statements” and accordingly, involve estimates, assumptions, judgments and uncertainties.
There are a number of factors that could cause actual results or outcomes to differ materially from those
addressed in the forward-looking statements. Such factors are detailed in the Forward Looking Statements and
Risk Factors sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31,
2017 and its third quarter 2018 quarterly report on Form 10-Q filed with the Securities and Exchange
Commission. We do not undertake an obligation to update our forward-looking statements to reflect future events.
Risks,
Uncertainties
and Other
Factors with
Respect to
Forward-Looking
Statements
Disclaimer
3 ©2019 Hexcel. All rights reserved.
HEXCEL IS A GLOBAL LEADER
IN ADVANCED COMPOSITES
TECHNOLOGY
Technology leader with a broad range of
materials/products/qualifications
Leading, sole source positions in key
markets with high barriers to entry
Excellent customer relationships
Growing share of long-term growth markets
Long history of creating shareholder value
Sustainable competitive advantage
2018 Sales | $2.2 billion
Commercial Aerospace | 70%
Space & Defense | 17%
Industrial | 13%
4 ©2019 Hexcel. All rights reserved.
REASONS TO INVEST IN HEXCELInvesting in Innovation | Achieving Operational Excellence | Growing Shareholder Return
Unrivaled product portfolio
Investments in markets
with long-term growth
potential
Technology and
innovation for
sustained growth
Leadership
in Attractive
Markets
Culture of
Innovation
Operational
Excellence
Increasing
Shareholder
Value
Driving productivity
through optimized
performance
ROIC well above cost of capital
50% increase in quarterly
dividends since 2015
>50% of net income returned
to shareholders
Proven execution, strong earnings growth, exceptional cash generation
5 ©2019 Hexcel. All rights reserved.
INDUSTRY-LEADING
MARKET POSITIONS
Our technology enables sole source
positions with high barriers to entry
We offer innovative, high-value
materials and products
Composite content is growing in
technology-intensive markets
Ramp-up in build rates for composite-
intensive programs creates growth COMMERCIAL AEROSPACE
Airbus and Boeing
Engines/Nacelles
Regional/Business
SPACE & DEFENSE
Rotorcraft
Military Aircraft
Launch Vehicles
Satellites
INDUSTRIAL
Wind Energy
Automotive
Recreation
Other
70%
17% 13%
Growth fueled by composite penetration and technology innovation
2018 Sales
6 ©2019 Hexcel. All rights reserved.
WE HAVE AN UNRIVALED RANGE OF PRODUCTSEverything from carbon fibers and reinforcement fabrics to prepregs, honeycomb core, tooling materials and more . . . from raw
materials to fly-away parts . . . vertical integration is a strength and a differentiator.
CARBON FIBERA320neo sharklets
LEAP fan blades/case
F-35 wings
REINFORCEMENTSAerospace primary and
secondary structures
Aircraft radomes
787 stringers
CARBON
PREPREGSAerospace primary and
secondary structures
A350 fuselage and wings
GE90 fan blade
GLASS
PREPREGSWind turbine blades
Aerospace wing-to-body
fairings
Aerospace secondary
structures
ENGINEERED
PRODUCTSStructural assemblies
Additive manufacturing
Machine/shaped core
Tooling system
Compression molded parts
Pultruded profiles
Strong | stiff | lightweight | fatigue resistant | corrosion resistant
PANPolyacrylonitrile
precursor
HONEYCOMBRotorcraft blades
Aircraft flooring
Nacelle structures
Acousti-Cap®
7 ©2019 Hexcel. All rights reserved.
WE DELIVER WHAT OURCUSTOMERS WANTAdvanced composite solutions that are stronger, lighter and
tougher providing optimized long term value.
Carbon fiber is 5x stronger than
aluminum
Carbon fiber is 30% lighter than
aluminum
Our products are tougher, stiffer
and more durable
8 ©2019 Hexcel. All rights reserved.
WE INVEST IN TECHNOLOGY TO GROW OUR CAPABILITIESWe expand our horizons with strategic acquisitions and investments
JANUARY 2016: AcquisitionNon-crimp fabric technology,
lightweight carbon fiber multi-axials, highly engineered
carbon and glass fiber fabrics, dry reinforcements
DECEMBER 2017: AcquisitionAdditive manufacturing to produce 3D printed parts for
Commercial Aerospace and Space and Defense
MAY 2016: InvestmentCarbon fiber recycling to produce aerospace and
industrial parts to create a full lifecycle solution
OCTOBER 2017: AcquisitionStrengthens development capability and technologies
for next-generation aerospace and industrial
applications
MARCH 2018: CollaborationThermoplastic composite aerospace solutions
combining Hexcel carbon fiber expertise with Arkema
PEKK expertise
JANUARY 2019: AcquisitionCustom RF / EMI and microwave absorbing composite
materials for military, aerospace and industrial
applications
9 ©2019 Hexcel. All rights reserved.
COMMERCIAL AEROSPACE COMPOSITES PENETRATIONComposite content percentage by weight
Continued secular
penetration with
next-generation:
• Primary structure
• Secondary structure
• Engines and nacelles
$1.5M
10 ©2019 Hexcel. All rights reserved.
COMMERCIAL AEROSPACECommercial Aviation | Engines/Nacelles | Other Commercial Aerospace
Growing composites secular penetration
Strong global demand – eight-year backlog (Airbus &
Boeing)
Growing build rates for narrow body programs;
increased shipset content for A320neo and B737 MAX
over legacy programs
$1,085
$1,215$1,286
$1,429 $1,410$ millions
Airbus and Boeing Other Commercial Aerospace
70%
2013 2014 2015 2016 2017 2018
$1,525
11 ©2019 Hexcel. All rights reserved.
Single Aisle Legacy Single Aisle New Widebody Legacy Widebody New Jumbo
0
2000
4000
6000
8000
10000
12000
14000
16000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
AIRBUS AND BOEING BACKLOGBacklog is worth approximately $10 billion to Hexcel
A220/320 single aisle 6,536
A330 twin aisle 295
A350 twin aisle 659
A380 jumbo 87
737 single aisle 4,763
747 jumbo 24
757, 767 twin aisle 111
777, 777x twin aisle 431
787 twin aisle 622
12 ©2019 Hexcel. All rights reserved.
SPACE & DEFENSERotorcraft | Fighters | Launch Vehicles | Transport
Well-positioned, diverse applications
Hexcel carbon fiber is the industry standard
Rotorcraft are ~50% of sales
Hexcel content is significant on key programs such as
JSF F-35, A400M, V22, CH-53K, and Black Hawk
$376 $376
$337$322
$344
17%
$ millions
2013 2014 2015 2016 2017
$370
2018
13 ©2019 Hexcel. All rights reserved.
INDUSTRIALWind Energy | Automotive | Recreation | Infrastructure | Marine
Broad range of performance applications
Wind energy comprises ~50% of the total
• Experiencing continued strong growth in 2019
• Multi-year contract with Vestas
Automotive accelerating composite adoption
$218
$264$238
$253
$220
$ millions
13%
2013 2014 2015 2016 2017
$294
2018
14 ©2019 Hexcel. All rights reserved.
PROVEN
PERFORMANCE
Record results and
well positioned for
growth
$ millions, except EPS
ADJUSTED
OPERATING INCOME
SALES
$2,1
89
ADJUSTED
DILUTED EPS
TOTAL DEBT /
ADJUSTED EBITDAFREE CASH FLOW RETURN ON CAPITAL
15 ©2019 Hexcel. All rights reserved.
CUSTOMER SALES
ADJUSTED DILUTED EPS
LOW
$2,375HIGH
$2,475
LOW
$3.38HIGH
$3.52
2019 GUIDANCE$ millions, except EPS
Growing Sales and Strong Free Cash Flow Generation
CAPITAL EXPENDITURES
LOW
$170HIGH
$190
FREE CASH FLOW
>$250
High-single digit growth
Double-digit growth
Double-digit growth
COMMERCIAL AEROSPACE
SPACE & DEFENSE
INDUSTRIAL
RETURN TO SHAREHOLDERS >50% OF NET EARNINGS
16 ©2019 Hexcel. All rights reserved.
2019 GUIDANCE ADDITIONAL DETAILS
Incremental $20 million depreciation on capex to support
growth
24% tax rate – cash taxes up $30 million from 2018
Q1 cash usage expected as usual
Working capital is “seasonal”
SG&A higher in Q1 2019 (versus Q2-Q4) by ~$8 million
Timing of stock incentive compensation expense
R&T spend up double digits - investing in innovation and
qualifications
FX exposure to 2019 operating income is about 75% hedged
Strong dollar vs. Euro/GBP is an advantage
5% movement is ~$3 million operating income impact in 2019, net of hedges
2019 hedge rate is higher than the 2018 level
17 ©2019 Hexcel. All rights reserved.
THE JOURNEY FROM CASH INVESTMENT TO CASH GENERATIONInvest in leading-edge technology built assets to deliver future revenue growth generate strong ROIC and growing free cash flow
On track to deliver $1 billion of free cash flow from 2016-2020
CAPEX FREE CASH FLOW
18 ©2019 Hexcel. All rights reserved.
SUMMARY
Long-term growth with strong financial performance drives investor return
Expect 2019 to be a record year for sales, operating income, EPS and cash generation
Hexcel remains a proven leader and a great investment in an attractive secular-
growth industry with few competitors and high barriers to entry
We have a growing leadership position in attractive markets
Our innovation, technology and vertical integration are differentiators
We are committed to Shareholder Return
Record-setting cash generation expected to continue for years to come
Return to shareholders of >50% of net earnings
Growing dividends – increased three times since initiated in 2015