HxlJefferies Investor Presentation 8-13-13

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Jefferies 2013

Industrial ConferenceInvestor Presentation

August 13, 2013



©2013 Hexcel1

Risks, Uncertainties and Other Factors with Respect to “Forward-Looking Statements”

Certain statements contained in this presentation constitute “forward-lookingstatements” 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. Thereare a number of factors that could cause actual results or outcomes to differ materiallyfrom those addressed in the forward-looking statements. Such factors are detailed inthe Forward Looking Statements and Risk Factors sections of the Company’s AnnualReport on Form 10-K for the fiscal year ended December 31, 2012 and its secondquarter 2013 quarterly report on Form 10Q with the Securities and ExchangeCommission. We do not undertake an obligation to update our forward-lookingstatements to reflect future events.

Forward-Looking Statements Disclaimer



©2013 Hexcel2

Leading advanced composites company – 65 years in the industry

Focused on aerospace and wind – FY 2012 sales of ~$1.6 Billion

Sales by region: ~46% US, ~43% Europe and ~11% Other

About 5,000 Employees – primarily split between Americas and Europe

Leading position in all of our key markets

High barriers to entry Sustainable competitive advantage

Technology leader, broad range of products/qualifications

Excellent customer relationships

Growing share of long term growth markets

Cyclical and secular growth combined

Demonstrated operational excellence

Strong balance sheet (net debt/EBITDA < 1x)

Investment Highlights

Hexcel – Overview



©2013 Hexcel3

Hexcel – Leader in Advanced Composites

Carbon Fiber A350 fuselage F-35 wings

Reinforcements Aircraft radomes Lamborghini roof

Carbon Prepregs

A380 Fuselage beam GE90 Fan blade Eurofighter Tail

Glass Prepregs Wind blades Wing-to-body

fairings in aero

Honeycomb Helicopter blades Aircraft flooring Nacelle structures Acousti-Cap®

Engineered Products

Structural Assemblies HexMC® parts Machined Core HexTool® Tooling System

Key properties

Fatigue and corrosion resistantLight Weight (density)High Strength (tensile)

Stiffness (modulus)

Broad Range of Composite Materials and Applications



©2013 Hexcel4

Technology Requirements and Focus

Stronger

Lighter

Weight (density)… 30% Lighter than aluminum

Application: Long Range Aircraft - Fuel Burn

Strength … Carbon prepreg = 5x aluminum Application: Helicopter & Fan Blade Reliability

Stiffness … Carbon prepreg = 2x Glass

Application: Composite wing, wind blade deflection

Toughness … Damage tolerance

Application: Primary structure, Fan blades, Automotive

Durability … Up time / keep them fly ing

Application: Aerospace

Technology is a Key Driver for Future Growth



©2013 Hexcel5

Sales by Market

I n d u s t r i a l

CommercialAerospace

Space &Defense

S p a c e

&

D e f e n s e

C o m m e r c i a l

A e r o s p a c e

Industrial

Airbus

Boeing

Engines/Nacelles

Regional/Business

Helicopters

Military Aircraft

Launch Vehicles

Satellites

Wind Energy

Recreation

Transportation

Other

LTM Q2 2013 Sales $1,618 Million

62%

23%14%

YoY Growth Rates

2004 15%

2005 14%

2006 10%2007 12%

2008 13%

2009 -16%

2010 6%

2011 19%

2012 13%

LTM Q2 2013 7%

Growing Share of Long Term Growth Markets



©2013 Hexcel6

$227$267 $280

$294$313

$253$218

$249 $277$234

2004 2005 2006 2007 2008 2009 2010 2011 2012 LTMQ2

2013

Industrial Market

Recreation

Industrial Revenues

Transportation

Glass Prepreg

Glass and CarbonPrepreg $ millions

Broad Range of Performance Applications …Wind Energy Drives Industrial Market Segment

Wind Energy Tooling

14%



©2013 Hexcel7

Space & Defense Market

Diverse Range of Applications

Carbon Fiber Prepreg the standard since B-2

Over 100 Active Programs for Hexcel, includes:

Transport Aircraft Fighters

Helicopters Launch Vehicles Over a third of sales outside the U.S.

Top 10 Programs:

Represent a little more than 50% of Segment V22 is largest program but <15% of Segment

Hexcel Intermediate Modulus (IM) fiber the

industry standard

Rotorcraft ~60% of sales and growing

New composite blade designs providing retrofit

opportunities

More Hexcel value-added content

JSF, A400M growth ahead

Space & Defense Revenues

$201$220 $222

$256

$302 $299 $311 $319$357

$377

2004 2005 2006 2007 2008 2009 2010 2011 2012 LTMQ2

2013

$ millions

23%

Hexcel Positioning

Space & Defense Revenues Well Diversified

F-35 Joint Strike Fighter (JSF)



©2013 Hexcel8

Space and Defense Outlook − Overall

Rotorcraft

New Fixed Wing(JSF, A400M)Fixed Wing PhasingOut (C17, F18, F22)

Continued Single Digit Growth Expected

Last Five YearsRotorcraft Growth Offsets Declines

In other Programs

Next Five YearsNew Fixed Wing Programs lead Growth

Helos cover V22 cuts

Today

All Other



©2013 Hexcel9

Commercial Aerospace Market

9,800+ planes in Airbus & Boeing backlog orover 7 years based on est. 2013 deliveries

2012 was, and 2013 is expected to be,another record year for deliveries

Introduction of new composite-intensiveaircraft provides Hexcel secular salesgrowth

New programs (B787, B747-8, A350 & A380)make up over 30% of Commercial Aerospacesales

Strong Global Demand

45%

40%

15%

Regional &Business

Airbus

Boeing

Commercial Aerospace Revenueby Sub Segment

Commercial Aerospace Revenues

LTM Q2 2013

62%

$409 $470

$547$622

$710

$556$645

$823

$944 $1,007

2004 2005 2006 2007 2008 2009 2010 2011 2012 LTMQ2

2013

Airbus and Boeing Business and Regional Jet

$ millions

Growth led by Increasing Buildrates and New Aircraft Programs







©2013 Hexcel12

-$2

-$1

$0

$1

$2

$3

$4

$5

$6

$7

R e l a t i v e H e x c e l C o n t e

n t p e r P l a n e $ M

Wtd Avg of BacklogLegacy $/Aircraft

Hexcel content on New Programs up to 5X the composites of older aircraft they replace

Each bubble represents Hexcel’s current $ per shipset x number of planes in Airbus and Boeing backlog

Growing Penetration of Composites

Commercial Aerospace – Composites Penetration

Wtd Avg of Backlog

New Programs $/Aircraft

1st Half ‘13 New Program Sales are more than twice 2010 run rate,and the Ramp-up is Just Beginning

NarrowBody

( A320, A320neo,737 & 737 MAX)

LegacyWideBody

A380Super Jumbo

New A350Wide Body

New 787 &747-8

Wide Body

New aircraft now represent about 30% ofHexcel Commercial Aerospace sales

+





©2013 Hexcel14

Summary Outlook

Build rates and new programs should result in “double digit growth” foryears to come for Commercial Aerospace market

Cost control, increased in-house carbon fiber and productivity initiativesshould deliver 23% incremental Operating Income leverage

Over the mid-term, we expect to generate significant Free Cash Flow withcapital expenditure spending average less than $200 million per year

Our Priorities for Cash Usage:

1. Organic Growth – Investing in R&T and Capacity to support expected Demand2. M&A opportunities – Technology, adjacencies or bolt-on that fit Focus

3. Return to shareholders ($50 million share repurchase completed in 1H 2013and an additional $150 million recently authorized)

Balance Sheet and Outlook to Deliver Growth (Organic + M&A)and Return to Shareholders

We are a technology driven company focused on Advanced Composi tes , targeting markets with long termgrowth potential where we can establish a sustainable, competitive advantage



Investor Presentation:

Exhibits



©2013 Hexcel16

Exhibit A – Q2 2013 Results

First Quarter and LTM Results

$ millions except EPS Q2 2012 Q2 2013

YoY %

Change

LTM Q2

2012

LTM Q2

2013

YoY %

Change

Net Sales $399 $423 6% $1,506 $1,618 7%

Gross Margin% 26.4% 27.6% 25.5% 26.2%

Adj. Operating Income $64.4 $71.9 12% $223.0 $249.1 12%

Adj. OI% 16.1% 17.0% 14.8% 15.4%

Adj. Diluted EPS $0.42 $0.48 14% $1.57 $1.65 5%

Growth with Improved Productivity

Q2 comments:

Record sales, gross margin ($ and %), adj OI ($ and %) and adj Net Income

Commercial Aero sales remain strong -- increased 15.1% in constant currency

S&D sales also remain strong -- increased 9.3% in constant currency

Industrial sales (including wind) weak across the board, down nearly 29%. But up 8.5% overQ1 2013



©2013 Hexcel17

$ millions 2008 2009 2010 2011 2012 2012 2013

GAAP Operating Income 130.9$ 103.7$ 129.8$ 192.0$ 248.8$ 134.5$ 134.9$

Litigation Settlements/Legal Fees - 7.5 - - - - -

Gain on Sale of Lane (1) - - - - (4.9) - -

Other Operating Expense (2) 2.7 (1.7) - (5.7) (9.6) (9.5) -

Environmental Expense (3) 7.6 1.7 3.5 2.7 5.0 - -

Business Consol & Restructuring Exp. 3.8 - - - - - -

Non-GAAP Operating Income 145.0$ 111.2$ 133.3$ 189.0$ 239.3$ 125.0$ 134.9$

Non-GAAP Operating Income % of sales 10.9% 10.0% 11.4% 13.6% 15.2% 15.6% 16.1%

GAAP Operating Income % of sales 9.9% 9.4% 11.1% 13.8% 15.8% 16.8% 16.1%

YTD June 30,

Exhibit D – Adjusted Operating Income

Reconciliation of GAAP and Non-GAAP Measures

1) 2012 includes gain of $4.9M from sales of land.

2) Other operating expenses include $9.6M from business interruption insurance settlement, $5.7M benefit from curtailment of a pensionplan in Q1 2011, $1.7M adjustment to prior year gain on sale of operations in 2009, $2.7M of US pension settlement in 2008, and $9.4Mof expense related to partial settlement of US Pension and $3.2M associated with the impairment of purchased technology and fixedassets in 2007

3) Environmental charge of $5.0M, $2.7M, $3.5M, $1.7M and $7.6 million in 2012, 2011, 2010, 2009 and 2008 respectively, reflect chargesrelated to environmental remediation liabilities for sold facilities



©2013 Hexcel18

Exhibit E – Adjusted Net Income

Reconciliation of GAAP and Non-GAAP Measures

1) 2012 includes the after tax gain from sales of land. 2008 includes a $11.7 million after tax gain from the sale of our share in BHA AeroComposites Parts Co. Ltd. 2006 includes $9.6 million after tax gain from the sale of our 50% share in Clark-Schwebel Tech-FiberCompany

2) Represents the after tax impact of the adjustments described on the preceding page

3) Represents tax benefits resulting from the reversal of valuation allowances or tax credits recorded that relate to activities from a prioryear

$ millions 2008 2009 2010 2011 2012 2012 2013

GAAP Net Income 111.2$ 56.3$ 77.4$ 135.5$ 164.3$ 87.6$ 92.1$

Litigation Settlements/Legal Fees - 5.6 - - - - - Gain on sale of assets (net of tax)(1) (11.7) - - - (3.1) - -

Other Operating Expense (net of tax) (2) 1.7 (1.1) - (4.1) (6.0) (6.0) -

Environmental Expense (net of tax) (2) 4.7 1.1 2.2 1.8 3.2 - -

Acceleration of Deferred Financing Costs - - 4.3 3.0 0.7 0.7 0.6

Loss on early retirement of debt (net of tax) - - - - - - -

Tax Adjustments (3) (26.2) - (6.4) (11.3) - - -

Non-GAAP Net Income 79.7$ 61.9$ 77.5$ 124.9$ 159.0$ 82.3$ 92.7$

YTD June 30,

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HxlJefferies Investor Presentation 8-13-13