Market Overview - Major indices opened lower with the Shanghai Composite Index down 0.95%, Shenzhen Component down 1.68%, and ChiNext down 2.08% [1] - Nearly 4,800 stocks declined across the Shanghai, Shenzhen, and Beijing markets, with significant drops in computing hardware, semiconductor chips, and precious metals [1] Index Performance - Shanghai Composite Index: 3922.58, down 0.95% with 172 gainers and 1992 losers [2] - Shenzhen Component: 12953.84, down 1.68% with 136 gainers and 2633 losers [2] - ChiNext Index: 3068.95, down 2.08% with 50 gainers and 1310 losers [2] - Northbound trading saw a decline in the Northbound 50 index, down 1.61% [2] External Market Impact - U.S. stock market faced adjustments with the S&P 500 down 1.17%, Nasdaq down 2.04%, and Dow Jones down 0.53% [3] - Chinese concept stocks were affected, with the Nasdaq Golden Dragon China Index down 2.05% [3] - Notable declines in major Chinese companies: Alibaba down 2.02%, JD.com down 2.93%, and NIO down 3.5% [3] Industry Insights - CITIC Securities predicts an expanding supply-demand gap for copper, with prices potentially exceeding $10,000 per ton by 2026 due to declining production and stable demand [4] - CITIC Jiantou reports a record high in institutional holdings in the communication sector, with a strong recommendation for the AI computing sector [5] - Huatai Securities anticipates continued high demand for fiberglass, carbon fiber, and electronic new materials through 2026, suggesting investment in undervalued companies and those benefiting from domestic demand recovery [6]

Company Overview - Hexcel is a leader in advanced composites for aerospace and other markets, offering a broad portfolio of solutions [5, 6, 7, 8, 11, 12] - The company's products are used in commercial aerospace (63% of 2024 sales) and defense, space & other industries (37% of 2024 sales) [6, 7] - Hexcel's total sales in 2024 were $1.9 billion [7] Market Trends and Growth Drivers - Composites penetration is increasing with each new aircraft platform, with next-generation narrowbody aircraft expected to have over 60% composites [10, 53] - Airbus and Boeing have a combined backlog of over 15,000 commercial aircraft, representing $10 billion in future sales for Hexcel [31] - Rotorcraft accounts for approximately 40% of Defense & Space sales [36] Financial Performance and Guidance - Hexcel provides 2025 financial guidance with sales of approximately $1.88 billion [44] - Commercial Aerospace sales are expected to be down mid-to-upper single digits in 2025, while Defense, Space & Other sales are expected to be up mid-to-upper single digits [44] - Adjusted diluted EPS is projected to be $1.70 – $1.80 per share in 2025 [45] - Free cash flow is estimated to be approximately $190 million in 2025, with capital expenditures less than $90 million [45] Strategic Advantages - Hexcel has an unrivaled product portfolio and a culture of innovation, driving productivity and sustained growth [47, 48] - The company benefits from high barriers to entry and strong customer relationships [8, 9, 48] - Hexcel's products enable lightweighting, which saves fuel and reduces transportation emissions [47]

Investor Briefing July 2025 Risks, Uncertainties and Other Factors with Respect to Forward-Looking Statements Disclaimer 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 resul ...

Materials Science & Sustainability - Waste wood scraps, after molecular-level modification, can be transformed into high-performance building materials [1] - Modified wood scraps have the potential to replace plastics, aluminum, and carbon fiber in vehicles and gadgets [1]

Group 1 - The 20th China Western International Expo concluded in Chengdu, where Yaan signed 47 projects with a total investment of 25.8 billion yuan, focusing on advanced materials industry projects [5] - Yaan's industrial strategy emphasizes the development of advanced specialty non-ferrous metal material industry chains, with 223 industrial enterprises involved in advanced materials expected to achieve a total output value of 51.21 billion yuan by the end of 2024 [5][6] - The introduction of leading enterprises in advanced materials is aimed at enhancing industrial green transformation and improving economic resilience [8][9] Group 2 - Yaan's advanced materials industry is characterized by a strong focus on clean energy, geographical advantages, and supportive policies, as highlighted by the chairman of Sichuan Wuyi Carbon Fiber Technology Development Co., Ltd. [7] - The Yaan Carbon Fiber Industrial Park, a key project, has a total investment of 6.5 billion yuan, with the first phase covering 85 acres and investing 1 billion yuan [8] - The industrial cluster in Yaan is designed to minimize competition while enhancing customer loyalty, with a focus on various non-ferrous metal products [10][11] Group 3 - Yaan's advanced materials industry is rapidly developing, with zinc ingot and copper material production capacity ranking first in the province [11] - The lithium battery sector is also experiencing similar cluster effects, with companies like Yaan Xatu Tungsten New Energy Materials Co., Ltd. recognized for their innovative products [11] - Future plans for Yaan include strengthening the advanced materials industry map, improving project construction, enhancing services, and solidifying park carrying capacity [11]