Embed Size (px)
Citation preview
© 2005 Eaton Corporation. All rights reserved.
Introduction To Eaton’sAerospace Operations
Craig ArnoldMay 4, 2006
1
Forward Looking Statements
The information provided at our conference today will include forward-looking statements relating the breakdown of our product offerings, revenues from new business awards and our projected growth. Those statements should be used with caution. They are subject to various risks and uncertainties, many of which are outside the Company’s control. Factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in our 2005 Form 10K, which was filed with the Commission on March 10, 2006. We do not assume any obligation to update theseforward-looking statements.
2
Objectives and Agenda1. Overview the Fluid Power Group
2. Aerospace Industry trends/market drivers
3. Differentiators for the Aerospace business • A well-balanced portfolio• With Component Excellence • That delivers Integrated Systems• On the right platforms with more content
4. Overview on components and systems• Hydraulic Systems• Airframe Fuel Systems• Air Management and Propulsion
5. Questions
Craig Arnold – President Fluid Power Group
Brad Morton – President Aerospace
Rick Busch - VP/GM Aerospace Fluid Power
David Squires – Division GM Fuel Systems
Andy Weeks – VP/GM Fluid Conveyance
3
Fluid Power Group Overview…Organizational Chart
Fluid Power GroupCraig Arnold
President
HydraulicsAerospaceBrad Morton
PresidentFluid Connectors Filtration
Fluid ConveyanceAndy Weeks
Division GM
Fluid PowerRick BuschDivision GM
Fuel Power David Squires
Division GM
Sensing And Control
Actuation Systems
4
Fluid Power Overview
On/Off highway and stationary#1 steering and motors#1 Distribution Network in NA
Hydraulics 50%
Aerospace 35%Commercial and defense#1 fluid conveyance#1 hydraulic pumps
Fluid Connectors 12%Global A/C and PS connectors#1 air-conditioning worldwideGlobal mfg footprint
Filtration 3%Industrial filtration systems#1 bag filtrationNew growth platform
5
Fluid Power Overview…Markets
Military
Agriculture
Performance
MilitaryMilitary
AgricultureAgriculture
PerformancePerformance
Commercial
Construction
Automotive
CommercialCommercial
ConstructionConstruction
AutomotiveAutomotive
RegionalRegional
Machine ToolsMachine Tools
Marine
Primary Metals
Industrial Process
MarineMarine
Primary MetalsPrimary Metals
Industrial ProcessIndustrial ProcessCivilCivil
6
Fluid Power Overview…System Solutions and Component Leadership
Supporting many different end markets
• Cylinders• Motors
• Hoses• Tubes
• Pumps
• Valves• Steering
• Filters• Sensors
Systems
7
Fluid Power Overview…Strategic Imperatives
GlobalizationGlobalization
Cost LeadershipCost Leadership
System Solutions/Component leadership
System Solutions/Component leadership
Customer / Channel Leverage
Customer / Channel Leverage
Technology OptimizationTechnology Optimization Product Expansion
8
Fluid Power Overview….Key Messages From The Aerospace Team
Aerospace Is A Growing Long Cycle Industry
Eaton Aerospace’s business is…….A well-balanced portfolio
Market and product balance minimizes cyclical impacts
A provider of components excellenceComponents drives core value and aftermarket growth
A capable and valued systems integrationOptimizing systems with critical components
A leader on the right platformsWith more content than ever
© 2005 Eaton Corporation. All rights reserved.
Aerospace Markets, Industry Trends And Portfolio Balance
Brad MortonVice President and President Aerospace Operations
10
Eaton Aerospace…Where Do We Play Today
Commercial OEM 36%
Commercial Aftermarket
22%
Military OEM 24%
Military Aftermarket
18%North
America 69%
Europe 25%
Rest Of World 1%
Asia 5%
Hydraulics 36%
Actuation & Controls
14%
ElectricalPower 12%
Propulsion 9%
Air Management
13%Fuel 11%
Other 4%
Market Segments Global Mix
Platform Segments System Segments
2006 Revenue$1.3 B
Large Transport
38%
Regional Transport
8%Business Jet 7%
General Aviation
4%
Military Transport
6%
Military Fighter
15%
Rotorcraft 12%
Ground Defense
4%
Other 6%
Source: Eaton Aerospace
11
Aerospace – Industry Trends…Commercial Aircraft Markets
Aircraft deliveries show long term growth with 10 yr.cycleSteady airline passenger growth at 5% CAGR
Key Shifts UnderwayContinuing Strong Demand in Asia-Pacific Restructuring of the AirlinesFuel Price Increases Driving Record OEM Order Rates
Deters Use Of Older A/C
Large Commercial Aircraft Deliveries
0100200300400500600700
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
Uni
ts
Revenue Seat Miles (RPM)*
0
200
400
600
800
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004R
PM -B
illion
s of
Sea
t Mile
s
* North American Operators’ System (Domestic and International)
Aircraft deliveries show long term growth with 10 yr.cycleSteady airline passenger growth at 5% CAGR
Key Shifts UnderwayContinuing Strong Demand in Asia-Pacific Restructuring of the AirlinesFuel Price Increases Driving Record OEM Order Rates
Deters Use Of Older A/C
Steady Demand Growth Source: Eaton Analysis, ATA
12
Aerospace – Industry Trends…Commercial Aftermarket Products and Services
Source: ATA, ACAS, Eaton Analysis
Fleet Continues to GrowNew Builds Outpace Retirements
Fleet Refresh With Newer More Efficient AircraftProfitability Pressures Drive Load Factors to Record LevelsAirlines Outsourcing Total Aircraft Maintenance
Fleet Continues to GrowNew Builds Outpace Retirements
Fleet Refresh With Newer More Efficient AircraftProfitability Pressures Drive Load Factors to Record LevelsAirlines Outsourcing Total Aircraft Maintenance
Worldwide Passenger Fleet
0
5000
10000
15000
20000
1999 2000 2001 2002 2003 2004 2005 2006
Airc
raft
0
5
10
15
20
Ave
rage
Age
Active
Parked
Capacity, Demand and Utilization
30
40
50
60
70
80
1999
2000
2001
2002
2003
2004
2005
2006
Mile
s (B
illio
ns)
64%66%68%70%72%74%76%78%80%
Load
Fac
tor
Capacity - ASM
Demand - RPM
Efficiency - LF
Age
12 Month Rolling Average
Fleet Expansion Will Accelerate As Efficiency Ceiling Is Approached
13
Aerospace – Industry Trends…Military Aircraft Markets
Source: Forecast International; Teal,DoD Budget, Eaton Analysis.
Fewer New Platforms Introduced But At A Higher Per A/C CostFighter Fleet - F-35 and Eurofighter Replacing Aging FightersTransport Fleet - A400M & C17 Add Capacity and FlexibilityGrowth of UAV & Rotorcraft Markets
Fewer New Platforms Introduced But At A Higher Per A/C CostFighter Fleet - F-35 and Eurofighter Replacing Aging FightersTransport Fleet - A400M & C17 Add Capacity and FlexibilityGrowth of UAV & Rotorcraft Markets
0250500750
1,0001,2501,5001,7502,0002,2502,5002,7503,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mar
ket $
M
LIGHT UAVs
HEAVY UAVs
UAV Total Market
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mar
ket $
M
Military Total Market
Military Fighters
F-35EurofighterF-22
A400MRotorcraft
Mil. Transports
Significant Opportunity Within Sub-Segments
14
Aerospace – Industry Trends…Military Aftermarket Products and Services
Aging Fleet Requires an Increasing Percentage of Defense Budget for MaintenanceIncreased Mission Tempo Drives Required MRO ServicesUpgrade Campaigns UnderwayIncreased Emphasis on Performance Based Logistics for Spares/Fleet Availability/Mission Readiness
Aging Fleet Requires an Increasing Percentage of Defense Budget for MaintenanceIncreased Mission Tempo Drives Required MRO ServicesUpgrade Campaigns UnderwayIncreased Emphasis on Performance Based Logistics for Spares/Fleet Availability/Mission Readiness
$0$100$200$300$400$500$600$700$800$900
$1,000$1,100$1,200
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
US, Asia & Europe Defense Budgets
Fisc
al Y
ear B
udge
t ($B
)
Average Growth Rate = 2.4%
US Europe Asia
Aging Fleet with Modifications, Upgrade and Maintenance
Opportunities
Source: Teal,DoD Budget, Eaton Analysis.
15
A Balanced Portfolio…The OEM Supply Chain
Aircraft Manufacturer
Build To Print Supply Base
Tier One System
Suppliers
Distributors
Proprietary ComponentSuppliers
Tier Two Sub-System
Suppliers
Eaton DeliversSystems, Sub-Systems
and Components
16
A Balanced Portfolio…The OEM Supply Chain
Aircraft Manufacturer
Build To Print Supply Base
Tier One System
Suppliers
Distributors
ProprietaryComponentSuppliers
Tier Two Sub-System
Suppliers
Proprietary Components
Tier Two
Tier One
Aircraft ManufacturersDistributors
Tier 2
Tier 1
Aircraft ManufacturersDistributors
Tier 2
Tier 1
12%
20%
9%59%
17
A Balanced Portfolio…The Aftermarket Supply Chain
Airlines, Owner Operator
Build To Print Supply Base
Total Aircraft Maintenance
Companies (MRO)
Distributors
Proprietary ComponentSuppliers
Component Repair Facilities
Eaton Delivers Component Repairs
& Spare Parts To Airlines, Maintenance Companies
And Distributors
18
A Balanced Portfolio …The Aftermarket Supply Chain
Airline, Owner Operators
Build To Print Supply Base
Distributors
ProprietaryComponentSuppliers
Tier Two Sub-System
Suppliers
Spare Components
Repairs/Overhauls
Total Aircraft Maintenance
Companies (MRO)
MROAirlines
Distribution
MRO
Airlines
Distribution
19
Balance Across the Markets…Counter-Cyclical Business Trends Smooth Cycle
Source: Eaton Analysis
Balance in Our Market Segments Softens Cyclical Impact
Commercial Aftermarket
0100200300400500600700800
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
RPM
- B
illio
ns o
f Sea
t Mile
s
Miltary Aftermarket
0
50
100
150
200
250
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
2005
USD
(Bill
ions
)
Fixed Wing Deliveries
0100200300400500600700
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Uni
ts
Aerospace Industry On A 10 Year CycleCommercial and Military Deliveries Are Generally Counter-CyclicalAftermarket Trends Are Less VariableCommercial Aftermarket Driven by UtilizationMilitary Aftermarket a Function of Operations & Maintenance Budget
Aerospace Industry On A 10 Year CycleCommercial and Military Deliveries Are Generally Counter-CyclicalAftermarket Trends Are Less VariableCommercial Aftermarket Driven by UtilizationMilitary Aftermarket a Function of Operations & Maintenance Budget
Commercial
Military
Operations and Maintenance Budget
20
Aircraft Concept & Technology Assessment
Aircraft Design Freeze and Suppliers
Selection
Detailed Design& Development
Product Build & Qualification
Aircraft Flight Testing
Production Ramp up
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 & 7
ProgramLaunch
Sub System Award
First Flight
A/C Certification
Proposal Development & System Architecture Trade Studies &
Component Design Detailed Design,Product
Build & Test Qualification Reports &Flight Test Support
OEM Production Sales Initial Airline Provisioning
Balance Across The Markets…Aerospace New Platform Development Cycle
Limited Platforms And Long Development Cycle
21
Balance Across The Markets…Facilitates Investment Through The Cycle
Customer Need7 Year Aircraft Development Process Requires Investments Through The Cycle
Balance Facilitates A Long Term MindsetMilitary Counter Cyclical To CommercialAftermarket Counter Cyclical To OEMBalance Across Segments Softens The Cycle
Commercial OEM 36%
Commercial Aftermarket
22%
Military OEM 24%
Military Aftermarket
18%
Market Segments
Platform Segments
Large Transport
38%
Regional Transport
8%Business Jet 7%
General Aviation
4%
Military Transport
6%
Military Fighter
15%
Rotocraft 12%
Ground Defense
4%
Other 6%
Generating Solid Financials Through The CycleSource: Eaton Aerospace
22
Customer NeedsOEM’s Shifting Focus To Assembly and Test
Reduction Of Supply BaseFull Service Suppliers Within SubsystemsDesign Team Membership, Flexible and Responsive Through Development
Balance Provides AccessFull Portfolio of Products and Design ServicesEngaged in Architecture and Specification DevelopmentBuilding a Power Systems Specialist Reputation
Portfolio Broadens Customer Access During Critical Development Stages
Of The Program
Balance Across The Aircraft Power Systems…Expanded Customer Value And Access
Controls 78%
Hydraulics 5%
Electrical Power 17% 1998
2006
Hydraulics 36%
Actuation & Controls
14%
Electrical Power
12%
Propulsion 9%
Air Mgmt. 13%
Fuel, 11%
Other4%
System Segments
23
A Balanced Portfolio…..Broadening the Business While Enhancing Value
Customer balance provides multiple access points to secure major program contentMarket Segment balance facilitates new program investments through the cycleProduct Portfolio across broad Aircraft Power Systems provides customer access during critical stages of the development cycle
A Significant Force For Aerospace On-Board Power Systems
© 2005 Eaton Corporation. All rights reserved.
Components Excellence The Foundation Of Profitable Growth
Andy WeeksVice President and General Manager
Aerospace Fluid Conveyance Division
25
The Aerospace Value Proposition…Component Excellence At The Foundation
Manufacture Components
Aircraft Design &
Development Activities
System Reqmts. Spec
System Engineering
Activities
Component Reqmts. Spec
Sub-System Engineering
Activities
Sub-System Reqmts. Spec
Design Components
Detail Drawings & Plans
Flight Trials Integrated with
Airplane Systems
Integrate & Test Sub Systems
Test Components
Integrate & Test System
Airframe
Airframe/Subsystem
Subsystem
Responsibility
System Modelling
PerformanceStress, FEA, CFD
Accept Validated System
Architecture &
Functional Partition
SystemIntegration
Component
Component Excellence
Aircraft Integration
7 Year Platform Development Period
26
Customer Needs
Reduced System WeightHigher Power DensityIncreased Maintainability and Reliability
Customer Needs
Reduced System WeightHigher Power DensityIncreased Maintainability and Reliability
Component Excellence…Serving Our Customer Through Technical Innovation
Results
2000 lbs. Reduction on A380Power Density Increased 25%Reliability Increased by 3XOptimized Conveyance LayoutThe only 5000 psi certified hose
Results
2000 lbs. Reduction on A380Power Density Increased 25%Reliability Increased by 3XOptimized Conveyance LayoutThe only 5000 psi certified hose
5000 PSI Hydraulic Power
Setting a New Standard for Hydraulic Systems
27
Component Excellence…Serving Our Customers Through Technical Innovation
Integrated Cockpit PanelsCustomer Needs
Installation Complexity Reduction
Reduction in Multiple Panel Installation TimeAcquisition Cost Reduction
Customer Needs
Installation Complexity Reduction
Reduction in Multiple Panel Installation TimeAcquisition Cost Reduction
Results
Increases Installation Quality
Reduces Installation Time (30%)Reduces Total Unit Cost
Results
Increases Installation Quality
Reduces Installation Time (30%)Reduces Total Unit Cost
28
Component Excellence…Serving Our Customers Through Technical Innovation
Ultra-Mate CouplingsCustomer Needs
Ease in Coupling MatingAvoid Intermediate ConnectionsMechanism for Determining Engagement In Blind Environment
Customer Needs
Ease in Coupling MatingAvoid Intermediate ConnectionsMechanism for Determining Engagement In Blind Environment
Results
No Tools Required for CouplingIntermediate Connections Avoided CompletelyMechanism Added For “Feel” Connection Confirmation
Results
No Tools Required for CouplingIntermediate Connections Avoided CompletelyMechanism Added For “Feel” Connection Confirmation
•Connect Simplicity•Positive And Secure Connection
•Facilitates “Blind” Installation
29
Customer Needs
Complex High Performance Wing Shape Will Not Accommodate Traditional Mechanical DesignWeight ReductionIncreased ReliabilityLower Life-Cycle CostReduced Maintenance
Customer Needs
Complex High Performance Wing Shape Will Not Accommodate Traditional Mechanical DesignWeight ReductionIncreased ReliabilityLower Life-Cycle CostReduced Maintenance
Results
Component Excellence…Serving Our Customers Through Technical Innovation
Facilitates Complex Wing Through Small Package SizeSaves Weight by 20% - 30%Increases Reliability Through Reduced Part Count and Increased Health MonitoringDecreases Life-Cycle Cost Through Reliability IncreaseReduces Maintenance – Plug and Play
Results
Facilitates Complex Wing Through Small Package SizeSaves Weight by 20% - 30%Increases Reliability Through Reduced Part Count and Increased Health MonitoringDecreases Life-Cycle Cost Through Reliability IncreaseReduces Maintenance – Plug and Play
Fly-By-Wire Flap
Providing Weight Savings and Simplicity
30
Component Excellence…Targeting Airline Problems With Component Solutions
737-3
5
707L1011
787A380
MD11
MD90
FD32
8
737 NG
BAE Avr
o
DC9
747 1-300
727
DC10
DC8
737-1-200
A310A300
MD80
F100757
A320/21
A318/19
747 -400
A340
CRJ 700/900777
EMB RJ 170/190
717
A330
767
Platform LifecycleIncreasing Fleet to Maximum Fielded Decreasing Fleet to Field Exit
Size of the Fleet
Upgrade Target ZoneYears 10-20
A 20 year old design
30 – 40 YearsEntry IntoService
Years in Service
Leveraging Our Component Excellence for the Aftermarket
Source: Aerostrategy, Acas
31
Component Excellence…Targeting Eaton Legacy With Component Upgrades
MD-80/DC-9 Product Upgrade
SituationActive Fleet of 1,482 MD 80, MD 90 and DC 9 Aircraft Mid 70’s Pump Design (5K Hrs. Life)High Removal Rate
SolutionUpgrade Pump With Latest Technologies
ResultsImproved Reliability by a Factor of Four Offering over 20,000 Hrs LifeMarket Opportunity $30M
1975 Vintage Eaton Pump 2005 Vintage Eaton Pump
Renewing Revenue And Profit Stream Mid Life
Source: Aerostrategy, Acas
32
Component Excellence…Airlines Driven By Component Life Cycle Costs
Mean Time Between Failures (hrs)0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000
B737 ACMP
B737-CL EDP
B737-NG EDP
B757/767 EDP
B757/767 ACMP
B777 EDP
Legacy Of High Product Reliability5 Year Airline Win Rate Of 75%Strong Brands Known for High Reliability
Airline Fleet Retrofit
SituationCompetitor Equipped 386 Aircraft FleetHigh Removals and Operational Costs
SolutionRetrofit Fleet With Eaton1500 pumps for 737, 757, 767 And 777Long Term Service Contracts
ResultsProduct Placement on Future AircraftContract Value $20M+ Over 15 Year Win-Win For Airline and Eaton
Airline Reliability Comparison
Life Cycle Cost Advantage Winning At
The Airlines
Competitor
Eaton
33
Component Excellence…Aging Military Hardware Deployed Worldwide
US Fleet Aging Rapidly1990 2005
Ground Combat Vehicles
~ 6 yrs ~14 yrs
Marine Combat Vehicles
~ 5 yrs ~ 15 yrs
AF Fighters ~ 10 yrs ~ 18 yrs
Navy Aircraft ~ 11 yrs ~ 14 yrs
AF Tankers ~ 27 yrs ~ 42 yrs
AF Bombers ~ 21 yrs ~ 30 yrs
Combat Ships ~ 16 yrs ~ 16 yrs
Marine Helos ~ 17 yrs ~ 24 yrs
Ave
rage
Age
Significant Allied Forces Fleet
285130620979213250129
UH-60CH-47M-113
F-18C/DF-15
UH-1HIDF
83129
18150198
0326
-
AsiaPlatformEurope285130620979213250129
UH-60CH-47M-113
F-18C/DF-15
UH-1HIDF
83129
18150198
0326
-
AsiaPlatformEurope
Source: Forecast Int’l.
$100+ M Opportunity For Component Upgrades
34
Component Excellence…Global Support And Opportunity Mining
Air France Industries
Bedhampton
Titchfield
SR Technics
Lufthansa Technik
GAMECO
EmiratesJorAMCo
GAMECO
TOKIMEC
SIA Engineering
Batam
HAECO
Qantas
Los Angeles
Jackson
Beltsville
Grand Rapids Warwick
Toccoa
Eaton Repair
MRO Partner
Coignieres
Field Support
Field Support
Field Support
Field Support
Field Support
Field SupportField Support
Field Support
35
Components Excellence…..A Foundation For Profitable Growth
Serving our customers through technical innovationsEnhancing Airline profitability with component upgrades
Large Eaton legacy base for “easy” upgradesUsing Reliability advantage to capture share
Military component upgrades to refresh technology on aging platformsGlobal support team mining for opportunities
Component Excellence Assures Sustainability Of Margins As We
Expand Scope and Systems Capability
© 2005 Eaton Corporation. All rights reserved.
A Valued Integrator Optimizing Systems With Critical Components
Rick BuschVice President and General Manager
Aerospace Fluid Power Division
37
The Aerospace Value Proposition…Component Excellence At The Foundation
Manufacture Components
Aircraft Design &
Development Activities
System Reqmts. Spec
System Engineering
Activities
Component Reqmts. Spec
Sub-System Engineering
Activities
Sub-System Reqmts. Spec
Design Components
Detail Drawings & Plans
Flight Trials Integrated with
Airplane Systems
Integrate & Test Sub Systems
Test Components
Integrate & Test System
Airframe
Airframe/Subsystem
Subsystem
Responsibility
System Modelling
PerformanceStress, FEA, CFD
Accept Validated System
Architecture &
Functional Partition
7 Year Platform Development Period
SystemIntegration
Component
Component Excellence
Aircraft Integration
38
A Valued Integrator…Major Systems: Hydraulics
Hydraulics
Actuation & Controls EPS
Propulsion
Air Mgmt.
Fuel
Other
DistributionManifolds, Protection Valves, Control Valves, Filter Module, Pressure Sensing, Reservoir, Accumulators
DistributionManifolds, Protection Valves, Control Valves, Filter Module, Pressure Sensing, Reservoir, Accumulators
Fluid ConveyanceHoses, Tube Fitting Systems, Coupling, Swivels, Clamps
Fluid ConveyanceHoses, Tube Fitting Systems, Coupling, Swivels, Clamps
Power GenerationEngine Driven Pump, Electrical Pump, Power Transfer Unit, Hydraulic Driven Generator, Hydraulic Power Package
Power GenerationEngine Driven Pump, Electrical Pump, Power Transfer Unit, Hydraulic Driven Generator, Hydraulic Power Package
System Discriminators5000 PSI Technology5000 psi Certified Commercial HoseLargest Portfolio of Hydraulic Generation and DistributionHydraulic System Architecture Expertise
System Enterprise Built on Component Excellence
39
A Valued Integrator…Major Systems: Electrical Power System
Electrical ControlCockpit SwitchesOverhead Cockpit Panels
Electrical ControlCockpit SwitchesOverhead Cockpit Panels
Hydraulics
Actuation & Controls
EPS
Propulsion
Air Mgmt.
Fuel
Other
Electrical DistributionContactorsCircuit BreakersPower RelaysElectrical Distribution Panels
Electrical DistributionContactorsCircuit BreakersPower RelaysElectrical Distribution Panels
Electrical GenerationDC GeneratorHydraulic Driven GeneratorGenerator Control Unit
Electrical GenerationDC GeneratorHydraulic Driven GeneratorGenerator Control Unit
System DiscriminatorsLeading Supplier for Emergency Power GenerationIntegrated Overhead Control Panel Power Integrated Power Distribution Panel
System Enterprise Built on Component Excellence
40
Pilot ControlsLanding Gear LeverThrottleFlap Lever
Pilot ControlsLanding Gear LeverThrottleFlap Lever
A Valued Integrator…Major Systems: Actuation & Controls
Hydraulics
Actuation & Controls
EPS
Propulsion
Air Mgmt.
Fuel
Other
Landing Gear SystemsNose Wheel Steering, Braking, Parking Brake
Landing Gear SystemsNose Wheel Steering, Braking, Parking Brake
Utility ActuationCargo Door, Passenger Door, Weapons Bay Door
Utility ActuationCargo Door, Passenger Door, Weapons Bay Door
Flight ControlsStabilizer Trim, Flap/Slat Systems, Spoilers, Speed Brake, Hydraulic Motors
Flight ControlsStabilizer Trim, Flap/Slat Systems, Spoilers, Speed Brake, Hydraulic Motors
System DiscriminatorsHighest Power DCBrushless ActuatorPrecision Nose Gear Steering SystemsDeveloping Integrated Fly By Wire Flap System
System Enterprise Built on Component Excellence
41
A Valued Integrator…Major Systems: Propulsion
Engine ComponentsDynamic SealsStatic Seals
Engine ComponentsDynamic SealsStatic Seals
Hydraulics
Actuation & Controls
EPSPropulsion
Air Mgmt.
Fuel
Other External SystemsDebris MonitoringLube SystemsEngine Fluid AccessoriesHigh Pressure Fuel Pumps
External SystemsDebris MonitoringLube SystemsEngine Fluid AccessoriesHigh Pressure Fuel Pumps
Engine Build UpHigh Pressure DuctingTubingBellows
Engine Build UpHigh Pressure DuctingTubingBellows
System DiscriminatorsMarket Leader For Metallic Dynamic SealsFluid Debris Sensing and Chip SeparationIntegrated Lubrication SystemsFluid Conveyance EBU Integration
System Enterprise Built on Component Excellence
42
A Valued Integrator…Major Systems: Fuel
Hydraulics
Actuation & Controls
EPS
Propulsion
Air Mgmt.
Fuel
Other
Fuel Inerting SystemVenting
Fuel Inerting SystemVenting
System DiscriminatorsBroadest Fuel Pump PortfolioComplete Fuel Conveyance SolutionsComponent Leader ForInerting Vents Engine Fuel PumpsEngine Fuel Pumps
Fuel ConveyanceTube Fitting CouplingsFlangesDucts
Fuel ConveyanceTube Fitting CouplingsFlangesDucts
Airframe Fuel SystemsTransfer PumpBoost PumpJettison pumpFuel manifoldsValvesLevel sensing
Airframe Fuel SystemsTransfer PumpBoost PumpJettison pumpFuel manifoldsValvesLevel sensing
System Enterprise Built on Component Excellence
43
A Valued Integrator…Major Systems: Air Management
Hydraulics
Actuation & Controls
EPS
Propulsion
Air Mgmt.
Fuel
Other
Air ConveyanceECS tubes and ductsHigh Pressure DuctsHigh TemperatureComposite / Plastic DuctingNon Return ValveCouplings and ConnectorsFlanges and SealsBellows
Air ConveyanceECS tubes and ductsHigh Pressure DuctsHigh TemperatureComposite / Plastic DuctingNon Return ValveCouplings and ConnectorsFlanges and SealsBellows
System DiscriminatorsFull Range of Air Ducting Sealing and Clamping ProductsUnique Position To Integrate Air Distribution System Across Aircraft
System Enterprise Built on Component Excellence
44
Multi-role, multi-service, multi-nationalLethal and Affordable Service
Conventional Takeoff & Conventional Takeoff & Landing (CTOL Landing (CTOL ---- USAF)USAF)
Short Takeoff/Vertical Landing Short Takeoff/Vertical Landing (STOVL (STOVL ---- USMC and UK)USMC and UK)
Carrier Variant Carrier Variant (CV (CV ---- USN)USN)
FF--35A35A FF--35B35B FF--35C35C
A Valued Integrator…..The JSF / F35 Hydraulic Systems Story
45
JSF / F-35 - High Production Rates, FMS Potential
50
100
150
200
250
300
350
400
450
1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025
Numb
er of
Airc
raft
JSFJSFFF--2222
FF--1616FF--1515
AA--1010
AA--77
AA--66
FF--1414 F/AF/A--18E/F18E/F
F/AF/A--1818
AVAV--8B8B
50
100
150
200
250
300
350
400
450
1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025
Numb
er of
Airc
raft
JSFJSFFF--2222
FF--1616FF--1515
AA--1010
AA--77
AA--66
FF--1414 F/AF/A--18E/F18E/F
F/AF/A--1818
AVAV--8B8B
46
A New Level Of Customer IntimacyEaton Responsibilities
Design and Development Of ComponentsHydraulic Pressure GenerationValves and ControlsPressure Storage Utility ActuationComplete Fluid Distribution Through Center Fuselage and WingVertical Takeoff Lift Fan Lubrication SystemNose Gear Steering SystemEngine Lubrication System
Systems Responsibilities Configuration Control Of Hydraulic and Fluid DistributionWeight And Reliability Management Participation On Lockheed Integrated Design Team
47
The Eaton Responsibility…Hydraulic Power And Fluid Distribution Systems
Conventional Take-Off & Landing Aircraft
48
The Eaton Responsibility…Hydraulic Power And Fluid Distribution Systems
Conventional Take-Off & Landing Aircraft
49
The Eaton Responsibility…Hydraulic Power And Fluid Distribution Systems
Conventional Take-Off & Landing Aircraft
50
Filter Modules
Engine Driven Pumps
Reservoirs
GroundMaintenance
Pumps
Accumulators
Eaton ContentApproximately $ 350M
Annual Revenue At Full Production
The Eaton Responsibility…Hydraulic Power And Fluid Distribution Systems
51
Value Proposition…….. Systems Optimization
Customer Need….Optimized SystemMinimum Weight For Aircraft Performance Optimized Space UtilizationDesigned For High Volume AssemblyDesigned For Reliability and ServiceMaximize CommonalityMinimize Total System Cost
Every Change Addresses Customer NeedSystem Approach Provides Customer Justified And Sponsored Trade StudiesScope Managed And Value Of Each Option Linked To Performance and Weight, Validated By The Customer
Basic WingDistribution System
Optimized Wing Distribution System
Optimized FluidDelivery System
52
Wing FDS Program Evolution
0
10
20
30
40
50
Aug
ust '
02 In
itial
Aw
ard
Aug
ust '
03La
yout
Com
plet
e
Nov
embe
r '04
Con
trac
tR
eneg
otia
tion
June
'05
New
SDD
RFQ 20
09
Valu
e of
Con
trac
t
0
400
800
1200
1600
2000
Part
Cou
nt
Program Value ($M)Bill of Material (Count)
Wing FDS Program Evolution
0
10
20
30
40
50
Aug
ust '
02 In
itial
Aw
ard
Aug
ust '
03La
yout
Com
plet
e
Nov
embe
r '04
Con
trac
tR
eneg
otia
tion
June
'05
New
SDD
RFQ 20
09
Valu
e of
Con
trac
t
0
400
800
1200
1600
2000
Part
Cou
nt
Program Value ($M)Bill of Material (Count)
Value Proposition…….. Systems Optimization
When Weight Threatened The Program… Eaton Was There…Structural Changes Drove Significant Scope ChangeEaton Solutions Focused On Systems Weight OptimizationEaton Captured Share From Competition
53
Value Proposition……..Success Of The Customer Network
Weight To Thrust Ratio….A Critical Aspect For All Armed ServicesEaton directly responsible for a 84 lb. aircraft weight reductionPlayed a key role for an addition reduction of 800 + lbs.
Ease Of Maintenance…..Key To Life Cycle Cost EstimatesProduct support personnel engaged in equipment layout and access
Actively Engaging Congressional Representatives For SupportInternational Partnerships Key To Foreign Military Aircraft Sales
Partnership Is Multi-faceted….Win Win At Every Step
54
Value Creation For JSFBenefits To Lockheed
Over 60 Eaton Engineers Working Inside Lockheed Significant Systems Level Weight Savings And Performance ImprovementsKitting Concepts Aligned With Volume ProductionSignificant Content Established In Partnering Nations
• Eaton Benefit Since Initial Proposal To Lockheed• Customer Intimacy And Joint Reliance• Parts Count Up 400 %• Development Engineering Customer Funding Up 300%• Annual Revenue at Full Production Rates Up From $146M to $358M• Operating Margin Up Nearly 30 % From Original Award
Eaton and The Customer Winning Together
55
56
A Valued Integrator…… Optimizing Systems Via Component Expertise
Portfolio Facilitates Systems Strategy For On Board Power Systems
Component Expertise Allows True Systems Optimization
Customer Intimacy Elevated With Each Systems AwardCo-Location with Fully Linked Component Engineering Teams
Optimized System Solutions Builds Airframe Level Partnership
Adding Value Through The Complete Product Life Cycle
Systems Integration Role Expands Content And Customer Value
Building Customer Value And Intimacy
© 2005 Eaton Corporation. All rights reserved.
A Leader On Growth ProgramsMore Content Than Ever
Brad MortonVice President and President Aerospace Operations
58
Leading Position On Growth Platforms…Airbus A380
Fuel
Flex Union JointsFuel Flex UnionsFuel Systems PumpsFire Shut Off Valve
Hydraulic
Reservoir 8.5L – 120 PSIAccumulator 8.2L – 5000 PSIHPMFA 9L – 5000 PSIHPMFA 6L – 5000 PSIEngine Driven PumpAC Motor PumpGround Service PanelHosesRynglok FittingsCheck ValvesShroud Drain HoseSelf Sealing AdapterHPMFA 2.15 L - 5000 PSIReservoir 20LFlex JointsHeat ExchangerNose LDG DressingLanding Gear Dressing
Actuation and Controls
Accumulator 5000 PSI Slats MotorsComposite Shafts (Flap Slat)
Electrical
MCPUMSUA380 Program Highlights
• 159 firm orders • 16 customers• First Flight: April 05• First Delivery: Nov 06
Air Management
Air Distribution Equipment
Propulsion
Trent 900 EBUHTTP DuctingChip Detector
Other
Water SystemsWater Systems NRV OptionComposite Structural Rods
Represents $ 90 M Revenues Per Year at Full Production
59
Leading Position On Growth Platforms….Embraer Phenom 100 (VLJ)
Actuation & Controls
Landing Gear LeverLanding Gear Control ValveThrottle
Flap System
Electro-mechanical Actuators Flap Selector Lever Position Sensors
Hydraulic
Hydraulic Power Pack ReservoirPositive Displacement Gear Pump28 VDC Electric MotorHydraulic AccumulatorPressure GaugeCharging ValveManifold
Outlet check valvePressure TransducerPressure SwitchAccumulator Dump ValveOutlet and Return FiltersFilter Bypass valveReservoir Bleed and Relief ValveGround Service Quick DisconnectsDifferential Pressure Indicators
Electrical
Light platesRotary/toggle switchesPush button switches Potentiometers
Power Distribution Boxes
Circuit breakersRelaysContactorsFusesConnectors
Phenom 100 Program Highlights
• 1,300 aircraft program (increasing)• First Flight: 1 Q 07• First Delivery: 2 Q 08
Represents $ 11 M Revenues Per Year at Full Production
60
Leading Position On Growth Platforms….Lockheed F-35
Actuation and Controls
Actuator Door Gun PortIn flight refueling receptacleElectromechanical ActuatorActuation Door 3-Bearing NozzleActuator Door Upper Lift Fan Emergency Control Upper Lift Fan DoorVent Reservoir ActuatorActuator Mission Systems DoorActuator Door – Infrared Counter MeasureActuator - SpoilerCounter Measure Door ActuatorElectromechanical ControllerLanding Gear ActuatorDoor Nose Landing Gear ControllerDoor-Main Landing Gear Actuator
Hydraulic
Hydraulic Check ValveDirectional Control ValveHydraulic ReservoirHydraulic AccumulatorAileron ValveArresting Gear ACTUATOR, Shutoff Firewall ValveReturn In-Line TransducerFilter ModuleBrake System ValveEngine Driven ValveElectric Motor Pump Electric Motor Pump Assembly ValveHeat ExchangerHydraulic Hoses and FittingHydraulic Conveyance TubesF-35 Program Highlights
• 2593 US/UK aircraft program• First Flight: Fall 06• First Delivery: 5 Aircraft in 07
Fuel
Refuel ProbeRefuel ReceptacleFuel Conveyance
Represents $ 358 M Revenue Per Year at Full Production
61
Leading Position On Growth Platforms…Sikorsky UH-60 M
UH-60M Program Highlights
• 1500 + aircraft program• First Flight: 2005• Full Rate Production: 2007
Hydraulic
Manifold AssemblyHydraulic AccumulatorValve AssemblyTransfer ModuleValves Hoses, Frangible Valves, QD, Hoses, QD, CouplingsHydraulic Winch MotorHydraulic StarterSys 3 Hydraulic PumpSys 1 & 2 Hyd Pump ModuleAC Ground Checkout PumpHeat ExchangerBrake Transfer ValveMaster Brake CylinderAPU Start Valve
Actuation and Controls
Tail Wheel Lock ActuatorTail Rotor Index ActuatorPedal Adjust ActuatorRescue Hoist ControlCockpit DisplaysFire Control SwitchPressure Switches
Fuel
CouplingsFuel vent assembly Tube Configurations Flanges & Flexible Couplings Seals
Propulsion
Chip Detectors and CollectorsChip Zappers Sight Plugs and GaugesFluid Reservoir Components
Electrical
Electrical Switches Remote Control Circuit BreakersElectrical Relays
Represents $ 18.5 M Revenue Per Year at Full Production
62
Leading Position On Growth Platforms…Boeing 787
B 787 Program Highlights• 1750+ aircraft program• First Flight: Mid 07• First Delivery: Mid 08
Fuel
Actuated Ball ValvesDrain ValvesCheck ValvesFlame Arrestors & Vent ScoopEngine Feed PumpsOverride PumpAPU PumpJet PumpsActuated Ball ValvesJettison ValveBaffle Rip Check ValveRefuel Adaptors
Actuation & Control
Passenger Door SystemsEmergency Passenger Door ActuatorFlight Lock Actuator
Propulsion
Flex Tube AssembliesDucts / Gimbal AssembliesFlex Tube AssembliesBreather DuctPressure Sense LinesCoupling AssembliesOil Debris Particle Separator Filter ModuleQDM SensorSignal Conditioning ModuleSensorsElectronic ModuleEngine Lube System
Hydraulic
Hydraulic MotorRam Air Turbine Hydraulic PumpHydraulic FittingHydraulic CouplingLanding Gear Swivel and Bleed Valves
Air Management
ECS Ducting Metal and Plastic
Represents $75 M Revenues Per Year at Full Production
63
Leading Position On Growth Platforms…Lockheed F-22A
F-22A Program Highlights
• 183 aircraft program• Currently in Service
Hydraulic
Hydraulic PumpsHydraulic Pressure SwitchHydraulic Pressure TransducersDrain ValveReservoir Pickup TubeCheck ValveFloat SwitchHydraulic Maintenance Switching ValveHydraulic Isolation ValveHydraulic Pressure Regulator
Actuation and Controls
Weapons Bay Door Drive MotorWeapons Bay Door ControlGun Drive MotorLanding Gear ValvesNose Wheel Steering Control ActuatorsDynamic Load DamperRudder Shuttle ValveLanding Gear Emergency ValveADAS Actuator
Fuel
Fuel Transfer Motor
Propulsion
Chip CollectorChip DetectorOil Debris SeparatorValvesSwitch GagesBreathersIndicator Oil LevelFlange Venturi AdaptorInsulation Blanket Clamp
Electrical
Emergency Power GenerationHermetic Relays
Represents $ 15.2M Revenue Per Year at Full Production
64
Leading Position On Growth Platforms…Boeing/Bell V-22
V-22 Program Highlights
• Production Increased from 215 to 410 aircraft
• Currently in Service
Hydraulic
Engine driven pumpsDrive motorsCargo door DC motor pumpWinch and hoist control moduleHydraulic brake master cylinderPressure reducer and relief valveWing stow system isolation valveUtility system isolation valvePark, lock/transfer moduleRamp control valveRotor brake valveRemote switching valveLocal switching isolation valveHydraulic hoses and swivelsRynglok® fittings
Propulsion
Gear box sight gaugeGenerator sight gaugeMid wing PrismaliteOil Debris SeparatorsGear box inlet screensChip detectors and collectorsGear box optic sensorGear box breather/dryerGear box cartridgeCompressor breatherGenerator check valvesGenerator float switchesAPLI float switchGear box drain valveFull flow chip collector
Actuation & Controls
Illuminated switchesFire pull handleRotor positioning motorsWing stowage/rotation motor
Fuel
Refuel/de-fuel valveOver pressure manifoldFuel hoses
Air Management
Inlet particle separators
Represents $16 M Revenue Per Year Full Production
65
Leading Position On Growth Platforms…Eurofighter
Hydraulic
Self Sealing CouplingsSlide and Swivel JointsRadar Cooling PumpRelief Valve
Fuel
Shut Off ValvesCross Feed ValveDefuel Isolate ValveFuel/Air CouplingsFuel System Non-Return ValvesGravity Filler Caps and AdaptorsIFR Probe NozzleIFRP Fuel Drain ValveIFRP Lock Slide & Swivel JointMSOGS Drain ValveRefuel / Defuel ValveTank Interconnect ValveCompartment Relief ValveFuel and Air ConnectionFuel Flow ProportionerTransfer Pumps and ValvesThermal Relief ValveAir No Fuel ValveVent Valve AssembliesFlexible Ducts
Air Management
50 mm Bellows Sealed Gimbal Joint63 mm Gimbal & Pressure Joint75 mm Gimbal & Pressure JointAnti-mist / Demist non return valveCabin Ground Test ConnectionECS Shutoff ValveEmergency Ram Air ValveFlexible CouplingsInlet Non Return ValveLight Weight GimbalPressure Balance JointActuated Three Way ValveAir Non Return ValvesAvionic & Fan Shutoff ValveHigh Pressure GimbalClamps & Flanges
Actuation & Controls
Lead Edge Slat MotorsCockpit Display Switches
Propulsion
Chip Detectors and Collectors
Eurofighter Program Highlights• Tranche I and II –385 aircraft• Tranche III -236 aircraft• Export - 200 plus• Entry into Service 2003 (UK), 2004
Germany
Represents $ 10 M Revenue Per Year at Full Production
66
Leading Position On Growth Platforms…Hawker Horizon
Hawker Horizon Program Highlights
• 241 aircraft program• First Flight 2005• Entry into Service 2006
Represents $ 8.9M Revenue Per Year at Full Production
Hydraulic
Teflon Hose AssembliesGSE CouplingComplex Tube AssembliesAircraft Band ClampsHydraulic ReservoirHydraulic Filter ModulePressure Maintaining ValvePriority ValveEmergency Rudder SystemElectric Motor-Driven PumpEmergency Generator MotorEngine Driven Pump
Electrical
Low Power Transfer ContractorHigh Power DC ContactorHigh Power DC Transfer ContactorPower Interconnect ContactorThree Phase 30KVA Generator ContractorPower Transfer Unit
Air Management
ECS Ducting SystemRotomolded DuctingV-BandsFlanges
Fuel
Fire sleeved Fuel Assemblies
67
Leading Position On Growth Platforms…X-47 UAV
X-47 UAV Program Highlights
• Total Production To Be Determined • Estimated Entry into Service 2012
Potentially $ 6.0 M Revenue Per Year at Full Production
Hydraulic
Hydraulic PumpReservoirReservoir Mounting AssemblyAxial Swage ElbowAxial Swage Seal ElbowAxial Swage TeeAxial Swage UnionAxial Swage Seal Adapter
Actuation and Controls
Pressure Regulator Relief ValveEngine Throttle ActuatorAPU Door Actuator
Fuel
Fuel Duct
Propulsion
Liquid Cooling Pressure Sensor
Electrical
Transducers
68
Leading Position On Growth Platforms…Choosing Our Target And Filling The Pipeline
Aircraft Concept & Technology Assessment
Aircraft Design Freeze and Suppliers
Selection
Detailed Design& Development
Product Build & Qualification
Aircraft Flight Testing
Production Ramp up
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 & 7
ProgramLaunch
Sub System Award
First Flight
A/C Certification
B737 RS A350
X 47 B
P 100 A380B787
F 35
ARJ 21 Horizon
V22Eurofighter
C 17
F-22ARJ 21
Pipeline Assures Significant Growth For The Long Term
69
Leading Position On Growth Platforms…With Steadily Increasing Content
Eaton Ship Set Content
$-$100$200$300$400$500$600$700$800$900
A32
0 Fa
mili
es
A33
0-20
0
A38
0
B73
7 N
G
B76
7
B78
7
F16
F18
Eur
ofig
hter
F22
F35
EH10
1
S92
UH
60
M
V22
C13
0
A40
0 M
Cita
tion
Haw
ker H
oriz
on
P10
0
Glo
bal H
awk
X 47
Pro
to
Thou
sand
s
Military Fighters Military Transports
UAVLarge Transports Rotorcraft BusinessJet
Per A
/C P
latfo
rm C
onte
nt $
Systems Approach Paying Dividends Of Content Growth
70
Leading Position On Growth Platforms…Growth Over End Market Assured
1
1
1
2
2
2
2
2
2
1 2 3 4 5 6
Aerospace Projected Revenue Growth
Bill
ion
$
2.0
1.8
1.6
1.4
1.22009 20102006 2007 2008 2011
Market Outgrowth From New Platforms
Growth At 5.5%Market Rate
CAGR 9.6 %
Strong Position on All New Platforms Entering Service in Next Ten YearsProduct Placement Ensures Commercial-Military BalanceSuccessful Positioning to Outgrow Our End MarketFuture Growth Assured
Investments by Eaton in Strategic Platforms Have Secured a Strong Revenue Position
For the Long Term
71
A leader on growth platforms…with more content than ever!
0
1
2
3
4
HydraulicSystems
ElectricSystems
FuelSystems
AirSystems
MarketEaton
2.1B
3.0B
1.5B2.0B
But, significant growth opportunities remain within our served markets
72
Fluid Power Overview….Key Messages From The Aerospace Team
Aerospace Is A Growing Long Cycle Industry
Eaton Aerospace’s business is…….A well-balanced portfolio
Market and product balance minimizes cyclical impacts
A provider of components excellenceComponents drives core value and aftermarket growth
A capable and valued systems integrationOptimizing systems with critical components
A leader on the right platformsWith more content than ever
73
Eaton Aerospace…… Systems Capability Breakouts
Breakout #1 Group A - Hydraulic SystemsGroup B – Airframe Fuel SystemsGroup C – Air Management and Propulsion
Breakout #2 Group B - Hydraulic SystemsGroup C – Airframe Fuel SystemsGroup A – Air Management and Propulsion
Breakout #3Group C - Hydraulic SystemsGroup A – Airframe Fuel SystemsGroup B – Air Management and Propulsion
