Hexcel's Quality Systems: World-Class Quality Composite Materials for the Global Aerospace Industry

2. Hexcel’s Quality Systems = World Class Quality Composite Materials for the Global Aerospace Industry A presentation by Stephen Davies Hexcel Composites Global Quality Director

3. Space Commercial Military Helicopters Aerospace Applications Hexcel is a world leader in the manufacture of advanced composites that meet the demands of the aerospace market

4. 2005 $1.2B Total Sales, 64% to Aerospace

5. Aerospace Qualifications Agusta Airbus Aircelle Alcatel Alenia Astrium Dassault Aviation BAe Systems Bell Helicopter Textron Boeing Commercial Airplane Boeing Military Aircraft Bombardier EADS Embraer Eurocopter Eurofighter JST . . . . . and many more Fairchild Dornier GEAE GKN Goodrich Gulfstream IPTN Lockheed Martin Northrop Grumman Pratt + Whitney Raytheon Rolls-Royce SAAB Sikorsky Stork N.V. Vought

6. Hexcel’s Global Manufacturing Footprint Pacific Rim Europe United States Composites Duxford, United Kingdom Dagneux, France Neumarkt, Austria Nantes, France Parla, Spain Stade, Germany Welkenraedt, Belgium Reinforcements Decines, France Les Avenieres, France Structures Kent, Washington Reinforcements Anderson, South Carolina Seguin, Texas Statesville, North Carolina Washington, Georgia Headquarters Stamford, Connecticut Composites Burlington, Washington Casa Grande, Arizona Decatur, Alabama Livermore, California Pottsville, Pennsylvania Salt Lake City, Utah Joint Ventures Alor Setar, Malaysia Tianjin, China 21 global composite manufacturing plants

7. 5% 18% 31% 46% Hexcel’s Market Segments • Space & Defense • Military Aircraft • Launch Vehicles • Satellites • Missiles • Electronic Materials • Switches & Routers • Mainframes • Cellular Infrastructure • Microwave/HF equipment • Commercial Aerospace • Boeing • Airbus • Engines/Nacelles • Regional/Business • Industrial • Ballistics • Wind Energy • Recreation • Transportation • Architectural Sales by Market 2005 Sales $1,161 million

8. Hexcel Duxford (UK), SLC (USA), Dagneux (France), Livermore (US), Parla (Spain) Hexcel Les Avenieres (France) Hexcel Salt Lake City (USA) Hexcel Decatur (USA) Chemical Industry Quality Certification in Hexcel’s Internal Supply Chain Customer Carbon Prepreg AS9100 Certified Carbon Woven Fabric AS9100 Certified Carbon Fibre AS9100 Certified PAN Precursor ISO9001 Certified ISO9001 Certified AN AS9100 certified, vertically integrated company

9. AS9100 Certification • Hexcel has been successful in achieving AS9100 certifications • 11 wholly owned plants globally with AS9100 certification • Where possible Hexcel is flowing down AS9100 requirements to internal suppliers • Hexcel is concerned regarding the continued very high level of customer non standard “self audit” questionnaires • Customer audits are continuing at a very high rate, but are more process / product focussed • Hexcel’s AS9100 certificates are available at: • http://www.hexcel.com/About/Locations/Certifications Continuing to satisfy Aerospace requirements

11. Quality Improvement Planning • 5 Phase Structured Format • 5 Whys Problem Solving Customer Focus Quality Planning • PFMEA • Error proofing • Metrics • Focus on problem resolution

12. Quality Planning • Hexcel has been very active “Designing-in Quality” to its manufacturing process • Process FMEA approach has most value during new process equipment design phase • Cross functional team brainstorms potential failure modes • Risks are quantified in terms of Severity, Occurrence and Detection of each potential failure mode • Highest risks are designed out • Cheaper to rectify potential issues during design phase! Zero Defects Processes by Design

13. Zero Defects Composite Materials • Hexcel’s has aggressively applied best practices in Quality Management to improve customer satisfaction • Definition of globally common quality metrics • Customer focussed • Customer Reject PPM and Number of Customer Complaints • Common calculation guidelines defined • Improvement objectives set • Quality Improvement Plans regularly reviewed • Results on Control Charts tracked monthly by Senior Management • Result is a dramatic improvement in customer satisfaction • Up to 97% improvement over 4 years Customer Focussed Quality Improvement Planning → World Class Quality

14. World Class Quality Improvement

16. Resins Carbon Fibers Metallic honeycomb Adhesives Prepreg Non-metallic core Main Aerospace Products These are Raw Materials for the Aerospace industry. AS9102 is not applicable and AS9103 is not required.

17. Added Value Core Panels Products Main Aerospace Products Metallic honeycomb • This is the honeycomb core raw material with some additional value adding operation • FAI is performed and although AS9102 has not been requested to date, Hexcel can meet these requirements • AS9103 is not required by customers

18. Composites parts Products Main Aerospace Products Metallic honeycomb • These are finished composite parts • Hexcel Structures is compliant with AS9102 and AS9103 • AS9102 has been flowed down to sub suppliers with positive results in commonizing processes

19. AS91XX Series Status in Hexcel Prepregs Core Structures Carbon Fibre Carbon Reinforcements AS9100 AS9102 AS9103 Applicability and implementation is product specific