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1 Merrill Lynch 7 th Annual Global Industries Conference May 11, 2005 London Marshall Larsen Chairman, President and CEO

goodrich Merrill5_11_05

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Merrill Lynch7th Annual Global Industries Conference

May 11, 2005London

Marshall LarsenChairman, President and CEO

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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 and A380, the Boeing 787 Dreamliner, the Embraer 190, and the Lockheed Martin F-35 Joint Strike Fighter and F-22 Raptor; the health of the commercial aerospace industry, including the impact of bankruptcies 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 April 28, 2005 First Quarter 2005 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.

Forward Looking Statements

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Agenda

Company and market overview

Organic growth

Key programs

Emerging opportunities in the Defense and Space markets

2005 focus – operational excellence

2004 Financial results and 2005 outlook

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Company Overview - Goodrich

One of the largest worldwide aerospace suppliers

Broadest portfolio of products in industry

Proprietary, flight critical products

Operating history of over 130 years

More than 21,800 employees in facilities throughout the world

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Goodrich – Key MarketLeadership Positions

$4.7B$9.7B$8.9B$14.7B2004 Aerospace Sales

Sensors

Cargo Systems

APUs

Wheel/BrakesEvacuation Systems

Lighting

Space Systems

Landing GearEnvironmental ControlsFlight Ctrl/ActuationElectronic ControlsAvionics

Power GenerationEnginesNacelles

GoodrichHONSNECMAUTC

Aerospace Focus Aerospace Focus -- Leadership Positions Leadership Positions -- Global Presence Global Presence -- Broad Systems Capability Broad Systems Capability -- Highly Engineered ProductsHighly Engineered Products

Goodrich has the broadest portfolio of system leadership positions;with approximately 85% of sales in markets with #1 or #2 positions world-wide

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First Quarter 2005 Sales by Market ChannelTotal Sales $1,282M

Large Commercial AircraftAftermarket

25%Regional, Business & General Aviation

Aftermarket7%

Boeing Commercial OE

8%

Airbus Commercial OE

16%Military &

Space, OE & Aftermarket

27%

Other 6%

Heavy A/CMaint.

4%

OE

AM

Balanced business mix – three major market channels, each with 1Q05 growth

Regional, Business & Gen.

Av. OE7%

Total Commercial Aftermarket36%

Total Commercial OE31%

Total Military and Space27%

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Expectations for Goodrich 2005 Sales

Approx. 10%14%6%Other

>10%26%6%Regional, Business & General Aviation - OE

8% - 10%

>10%

Approx. 6%

>15%

5% - 6%

2005 Expected Change from

2004

10%

54%

11%

6%

5%

1st Quarter2005 vs. 1st

Quarter 2004

Average Growth

3%Heavy Airframe Maintenance

30%Military and Space –OE and Aftermarket

$4.7BGoodrich Total Sales

32%Aftermarket – Large Commercial and Regional, Business and GA

23%Boeing and Airbus –OE Production

2004 Sales MixSales by Market Channel

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Current vs. Prior CycleMarket Differences

MarketGrowth rate for OE production smoother

Better balance between Boeing and Airbus

Significantly larger fleet to fuel aftermarket strength

Airbus and regional jet fleet is older, more mature – increased aftermarket support

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Large Aircraft Deliveries Prior Cycle vs. Current Expectations

0

100

200

300

400

500

600

700

800

900

1,000

1996 1997 1998 1999

Air

craf

t D

eliv

ered

Boeing Airbus

0

100

200

300

400

500

600

700

800

900

1,000

2003 2004 2005Est.*

2006Est.*

Air

craf

t D

eliv

ered

Boeing Airbus

32% CAGR

10% CAGR

Based on current estimates, this upcycle will have more measured OE growth

*Forecasts based on public information from manufacturers

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Current vs. Prior CycleCompany Specific Differences

Goodrich SpecificSignificantly larger sales base

• 1996 sales at $1.25B• 2005 estimated sales at $5.1 to $5.2B – more than a four-fold increase

Significantly more diverse products• 1996 – focused on wheels and brakes, landing gear, sensors and

evacuation systems• 2005 – all of the above plus aerostructures, engine controls, actuation

and moreTop line growth potential from new programs is much greaterCurrently at 27% military and space, versus 18% in 1996 (without Rohr) and 9% in 1997 (including Rohr)Much better positioned from a cost structure standpointHigher proportion of “power-by-the-hour” contracts

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Agenda

Company and market overview

Organic growth

Key programs

Emerging opportunities in the Defense and Space markets

2005 focus – operational excellence

2004 Financial results and 2005 outlook

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Airbus A380 & Boeing 787 Awards

Engine Fan Case/Other Specialty Aerostructures Products

Cargo Systems

PendingSpecialty Seating

Flight Control Actuation

Fuel & Proximity Systems

Engine Controls

Sensors

A380Passenger Version

787Passenger Version

Evacuation Systems

Power Generation/Distribution

Wheels and Brakes

Nacelles

Lighting

Landing Gear

Note: Shaded areas indicate Goodrich positions

Significant market penetration on new programs

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Key New Programs Will Add Balanced Future Growth

C-5 Re-Engine

Small Engine Controls

A380 Program Joint Strike Fighter

*Total estimated sales over life of program *** Total estimated sales through 2028** Year in which significant sales are expected to begin **** Total estimated sales over 20 years

$6 Billion+*2005**

$0.8 Billion+*2004**

$5 Billion+*2006**

$1.1 Billion+*2005**

CommercialCommercial MilitaryMilitary

CF34-10 Nacelle System

$1.4 Billion+*2005**

$7 Billion+***2008**

787 Dreamliner

$6 Billion****2010**

A350 Program

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$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Expected Future Sales from Key New Programs

New program sales are expected to provide significant incremental sales growth

(Dollars in Millions)(Dollars in Millions)

Annual Expected Future Sales for:Annual Expected Future Sales for:•• A380 ProgramA380 Program•• 787 Program787 Program•• A350 ProgramA350 Program•• CF34CF34--10 Nacelle System10 Nacelle System•• JSF ProgramJSF Program•• CC--5 Re5 Re--engine Programengine Program•• Small Engine ControlsSmall Engine Controls

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Agenda

Company and market overview

Organic growth

Key programs

Emerging opportunities in the Defense and Space markets

2005 focus – operational excellence

2004 Financial results and 2005 outlook

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Emerging Growth OpportunitiesHUMS: Health & Usage Management Systems

“Listens” for Subtle, Abnormal “Sounds”(Vibrations)Early Detection of “Unhealthy” ConditionsDirects Maintenance in Plain, Simple Language

No “Experts” RequiredSaves – TIME, Saves – MONEY, Saves –LIVESSafer Aircraft, Less Maintenance TimeRevenue Potential > $300M

Patented Software that can detect and identify subtle, abnormal vibrations and predict wear in rotating machinery

Pursue Civil Fleet and Military Upgrades

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“Turnkey” Reconnaissance System For Border Patrol And Homeland SecurityGoodrich Provides:

Airborne pods • DB-110 EO/IR camera• Data Link• Recorder

Ground stationsTrainingIntegrated logistics support

Current contracts with UK and PolandProven capability in a high risk environment

DB-110 used extensively in Operation Iraqi Freedom

Emerging Growth Opportunities Airborne Reconnaissance – DB110

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Emerging Growth Opportunities Chemical/Biological Detection Systems

Market Needs:Develop a robust chemical and biological detection system for Defense and Homeland Security applications.

Approach:Apply Goodrich’s Millimeter Wave technology to address detection of chemical and biological agents.Utilize expertise in the areas of threat warning, signal extraction, and systems design to solve difficult problems.Secure Funding for development and production from government agencies

Revenue Potential: $29MRevenue Potential: $29M

$4M pendingDTRA (Defense Threat Reduction Agency)

$3M appropriatedARO (Army Research Organization)

$3M awardedRapid Automated Biological Identification System (RABIS)

$8M awardedAuto Rapid Facility Chemical Agent Monitor (ARFCAM)

HSARPA:

Contract ValueAgency and Program

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TERRORISMTERRORISM Homeland SecurityHomeland SecurityGlobal CooperationGlobal Cooperation

Protect High ValueProtect High ValueAssets and Assets and

InfrastructureInfrastructure

What needs Protection:Power GenerationMilitary BasesOil RefineriesDamsAirportsGov’t OfficesEmbassiesBordersShips / Ports

Emerging Growth Opportunities Laser Perimeter Awareness System

5 Year LPAS Revenue

Potential>$150M

*Morgan Keegan & Co.

Perimeter SecurityExplosive DetectionContainer Sensing

Market $1.5B

Nuclear Power and Weapons

PetrochemicalMilitary Bases

LPAS fills market need for autonomous perimeter security

Positioned to fill gap between guard/fence/camera solutions and more expensive radar/infra-red schemes

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Agenda

Company and market overview

Organic growth

Key programs

Emerging opportunities in the Defense and Space markets

2005 focus – operational excellence

2004 Financial results and 2005 outlook

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Conclusion

Top Quartile Aerospace Returns

Operational Excellence

Leverage the EnterpriseBalanced Growth

Push aggressive Supply Chain Management and Continuous ImprovementDrive breakthrough change in product and development costs using LPD and DFSSImprove Enterprise manufacturing and engineering efficiencies

Use portfolio mass and breadth to capture market shareWin new program positionsPursue Military Markets and Government funding opportunitiesAftermarket products and services expansion

Manage investments at the portfolio levelProvide Enterprise Shared ServicesLeverage SBU capabilities into integrated, higher level systemsSimplify customer interfaces –act as “One Company”

Goodrich – Strategic Imperatives

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• Part travel reduced by 78% from 1,677m to 372m• Operator travel reduced by 85% from 2,442m to 372m• Lead time for Titanium Valve Block reduced by 86% from 72 days to 10 days• Work in progress reduced by 64% from 39 blocks to 14 blocks

Pre-Event – Monday Morning Post Event – Friday Morning

A380 Prismatic Titanium Machining CellLinkage and Flow EventEntire area moved during the week

3 Months Action in 1 Week

Operational ExcellenceLean Manufacturing - Actuation Systems

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Operational ExcellenceLean Product Development

Implement… Improve… Standardize

Continue to Evolve787 and A350 Nacelle Program Execution

Newest Training Ground for Lean PDRaises Performance Bar for Lean PD

Rigorous and Relentless Application of Lean PD onAll New Business Acquisition ProjectsAll New Product Development Programs

New Program Execution – Lean Product Development:

7-11

VOC ImpactMatrix

LWW Prog. Plan

CustomerDeliverables

Assy. Flow II

PartFamily

CellLayout

ValidateSW3P Pull

SystemsAssy. Flow I

MACROLearning

Std.Work

Macro Learning

make sparesbuild tools make parts

talk to customer

count costlook for work

Customer audit

plan work get materiel

• Pksx xnk dcm;s• knk sdcn• [nq sndc hdhdn • nq s msjkc mzm• jsjk qw nq• ncx nokk qwddm

• Pksx xnk dcm;s• knk sdcn• [nq sndc hdhdn • nq smsjkc mzm• jsjk qw nq• ncx nokk qwddm

• Pksx xnk dcm;s• knk sdcn• [nq sndc hdhdn • nq smsjkc mzm• jsjk qw nq• ncx nokk qwddm

• Pksx xnk dcm;s• knk sdcn• [nq sndc hdhdn • nq s msjkc mzm• jsjk qw nq• ncx nokk qwddm

• Pksx xnk dcm;s• knk sdcn• [nq sndc hdhdn • nq s msjkc mzm• jsjk qw nq

• Pksx xnk dcm;s• knk sdcn• [nq sndc hdhdn • nq smsjkc mzm• jsjk qw nq

• Pksx xnk dcm;s• knk sdcn• [nq sndc hd hdn • nq smsjkc mzm• jsjk qw nq

• Pksx xnk dcm;s• knk sdcn• [nq sndc hdhdn • nq smsjkc mzm

• Pksx xnk dcm;s• knk sdcn• [nq sndc hd hdn • nq smsjkc mzm 13

Standard Work SheetPROCESS NAME:SCOPE OF

OPERATIONSFROM:TO:

PREPARED BY:DATE:

QUALITY CHECK SAFETY CAUTION STANDARD WORK INPROCESS CYCLE TIMETAKT TI ME OPERATOR(S):

IncomingFinished Forming Center

J. Smith3/16/00

Incoming Rack

12

3

4 56

5 =

FinishedRack

6

1

Spray & Dry

2

Form

ing

Mac

hine

3

Finish

ing

Tabl e

4

Test Bench5

9

TimesMach WalkMan

Operation Operation Times

Date:______________Observer(s):____________________

Process /Cell:__________________Part:_________________

Dept.:_________Operator:___________

Takt Time:_____________Machine No:___________________

StepNo.

TotalWaiting:

Plan.Op.

12/6/98Marty & Jim

Face & Burr 059Group 1 Fred M.

590 secondsN/A

(seconds)

1Pick part formtote, indexto APLT and scribe.

2RemoveAPLT andfaceedges to scribeline.

3 Deburr holes.

4 Index part to APLT,clamp and final scribe.

6 Final deburr holes.

Place part and APLT in tote.7

100 200 300 400 500 600 700 800

77" 10"

163" 10"

84" 10"

102" 5"

50" 10"

53"

10"

TotalsMANAUTOWALKWAITING

529" 55"

584"

Remove APLT andfinal face edges.5

Standard Work Combination Sheet

ExecutionExecution Stable ProductionStable Production

LPD Model$$

TimeRecurring Unit Cost

Least Waste WayCumNon-

Recurring

PlanningPlanning

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Goodrich One SourceTechnology

Global Sourcing OffsetTarget Cost

Pre-Lean Traditional Cost Model

LWW Cost Model

The Challenge: Significant Cost Reduction

Global Sourcing Offset

Make / Buy / OffsetCore Competency Model

Buy

Make

Gap Closure

Operational ExcellenceSignificant Cost Reduction

Deploy per Site Strategy

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Goodrich Sourcing Efforts Growing in Low Cost Countries

Mexico SealsElectronic CompsMRO Transportation Service

Russia Titanium Forgingsand sheets

China Forgings/Machined PartsComp. Fan Cowls

Singapore Machined Parts/Engine Mounts

Indonesia Machined Parts JV

Taiwan Machined Panels

Korea Castings

India Engineering IT Services Components

Eastern Europe Misc. LG support

Malaysia Composite Panels

Operational ExcellenceSupply Chain Management

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A380 Actuation SystemCurrent Status

Most complex and largest commercial flight control system

Joint development and production by multiple Goodrich business units (Actuation Systems, Engine Control Systems, Fuel and Utility Systems, and Power Systems)

Combines conventional and electro-hydraulic actuation

Lighter weight, improved reliability, and lower total cost

Redesign/retrofit program on schedule

Redesigned motor drive electronics currently in test phase

Expect approved product mid-year

Expect retrofit effort to be substantially completed in 2005

Evaluating potential claim against Northrop Grumman

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Agenda

Company and market overview

Organic growth

Key programs

Emerging opportunities in the Defense and Space markets

2005 focus – operational excellence

First Quarter 2005 Financial results and Full year 2005 outlook

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81%21%

88%23%

+1.6%

28%

10%

Change

$0.26$0.39

$0.47$0.47

Diluted EPS- Continuing Operations- Net Income

$31$47

$58$58

Income- Continuing Operations- Net Income

$118$152Segment operating income

10.2%11.8%- % of Sales

$1,162$1,282Sales

1st Qtr 2004

1st Qtr2005

(Dollars in Millions, excluding EPS)

First Quarter 2005 – Financial Summary

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2005 OutlookP&L Summary ($M)

+28 - 39%$220-239$172- Reported+32 - 44%$206-225$156- Continuing Operations

Net Income

~ 2%~ 122.5M120.3MShares Outstanding

+26 - 36%$1.80-1.95$1.43- Reported+30 - 42%$1.69-1.84$1.30- Continuing Operations

EPS (Diluted)

+1.1 - 1.4%11.5-11.8%10.4%Margin %+19 - 25%$585-615$493Segment Income+8 - 10%$5.1-5.2B$4.725BSales

B/(W)Estimate

2005Actual2004

Note: The current earnings and cash flow from operations outlook for 2005 does not include resolution of the previously disclosed Rohr and Coltec tax litigation or divestitures other than the JcAIR Test Systems business.

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Summary

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Goodrich – Culture

Highest levels of integrity

Entrepreneurial, fast moving and empowered

Key functions recently aligned at enterprise level to leverage size, capabilities

Experienced, stable management team

Accountability

Customer focus

Technology leadership

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What Investors ShouldExpect from Goodrich in 2005

Key focus in 2005 – operational excellence and margin improvement

Complete redesign effort, and substantially complete the retrofit, for A380 actuatorsFocused on the business• “Blocking and Tackling”

- Cash flow- Margin improvement- Working capital management- Cost reduction

• New product development- Continue investing in new products and systems

Continue to reduce leverageTarget up to $200 million debt retirement

Transparency of financial results and disclosure