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1 ©2019 Hexcel. All rights reserved.

January 2019


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


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%


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


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


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®


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


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


COMMERCIAL AEROSPACE COMPOSITES PENETRATIONComposite content percentage by weight

Continued secular

penetration with

next-generation:

• Primary structure

• Secondary structure

• Engines and nacelles

$1.5M


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


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


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


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


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


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


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


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


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

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