Investor Overview NYSE: CW

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Transcription:

Investor Overview NYSE: CW 1 2017 Curtiss Wright

Safe Harbor Statement Please note that the information provided in this presentation is accurate as of the date of the original presentation. The presentation will remain posted on this website from one to twelve months following the initial presentation, but content will not be updated to reflect new information that may become available after the original presentation posting. The presentation contains forward looking statements including, among other things, management's estimates of future performance, revenue and earnings, our management's growth objectives and our management's ability to produce consistent operating improvements. These forward looking statements are based on expectations as of the time the statements were made only, and are subject to a number of risks and uncertainties which could cause us to fail to achieve our then current financial projections and other expectations. This presentation also includes certain non GAAP financial measures with reconciliations being made available in the earnings release that is posted to our website and furnished with the SEC. We undertake no duty to update this information. More information about potential factors that could affect our business and financial results is included in our filings with the Securities and Exchange Commission, including our Annual Reports on Form 10 K and Quarterly Reports on Form 10 Q, including, among other sections, under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial ConditionandResultsofOperations,"whichisonfile with the SEC and available at the SEC's website at www.sec.gov. 2 2017 Curtiss Wright

Curtiss Wright Corporation Defense General Industrial Comm. Aerospace Power Generation ~$2.2 billion in 2017E sales Leadership positions in growing markets Severe service applications Enhancing safety, reliability and performance One Curtiss Wright Global Diversified Industrial Company 3 2017 Curtiss Wright

Broad End Market Diversification Defense: Defense (39%) General Industrial (24%) Commercial Aerospace (18%) Power Generation (19%) Naval (18%): Nuclear submarine and aircraft carrier programs Aerospace (17%): Fighter jet, helicopter and UAV programs Ground (4%): Domestic and international armored vehicles Commercial Aerospace: Critical content on all major OEM platforms Power Generation: Current and future generation (AP1000) nuclear operating reactors General Industrial: On and offroad commercial vehicles; Industrial valves Note: Percentages in chart relate to 2017E sales as of October 25, 2017. 4 2017 Curtiss-Wright

Why Invest in Curtiss Wright? Top Quartile Financial Metrics Strong FCF Generation Balanced Capital Allocation Enterprise Wide Focus on Growth 5 2017 Curtiss Wright

Journey to Top Quartile Performance Target Metric 2013 Reported Original 5 Year Target* Current OP. MARGIN 9.3% > 12.5% EXCEEDED EPS $2.88 Double Digit Growth ACHIEVED ROIC 7.4% > 12% ACHIEVED W. CAPITAL 32% 20% of Sales ON TRACK CAPEX 4% 2% of Sales ACHIEVED FCF CONV. < 100% 100% EXCEEDED *Issued December 11, 2013 6 2017 Curtiss-Wright

Strong Free Cash Flow Generation Free cash flow ($ in millions) $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 FCF $166 119% $265 $272 156% 153% $376 2013 2014 2015 Pro Forma 2016 Notes: Free cash flow is defined as cash flow from operations less capital expenditures. 2015 adjusted to remove the $145 million contribution to the Company s corporate defined benefit pension plan. FCF conversion is defined as free cash flow divided by net earnings from continuing operations. Free cash flow conversion (%) 199% 240% 220% 200% 180% 160% 140% 120% 100% 80% Key Drivers: More efficient execution and cash flow management Focus on highest return CapEx investments Targets (est. in 2016): Minimum free cash flow of $250 Million Average free cash flow conversion of at least 125% 7 2017 Curtiss Wright

Rigorous Working Capital Management 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Working Capital* as a % of Sales 25.4% 21.0% 2015 2016 *Working Capital = Accounts receivable plus inventory minus accounts payable, deferred income and deferred development costs. Top Quartile 2016 (20.2%) Key Drivers: Company wide (BU level) drive to reduce working capital Reduced past due receivables Extending vendor payment terms / Deployed supply chain financing Aligning inventory management with lean initiatives Target: 20% of sales by 2018 Note: Peer group per CW 2016 proxy. Peer group includes 2016 actuals and estimates per FactSet projections 8 2017 Curtiss Wright

Balanced Capital Allocation Committed to steady return of capital to shareholders At least $50M expected share repurchases in 2017 $100M repurchased in 2016 Nearly $500M repurchased since 2013 Steady and dependable dividends Return of Capital Growth through strategic acquisitions Internal investment funds organic expansion Operational Investments Acquisitions 9 2017 Curtiss Wright

2017E Financial Outlook (Guidance as of October 25, 2017) ($ in millions, except EPS) FY2016A FY2017E (1) Change vs 2016 (1) Sales $2,109 $2,210 2,250 5 7% Operating Income CW Margin $308 14.6% $328 336 14.8% 14.9% 6 9% +20 30 bps Diluted EPS $4.20 $4.65 4.75 11 13% Free Cash Flow (2) $376 $270 290 Free Cash Flow Conversion (3) 199% 130 136% (1)Full year 2017 guidance includes the acquisition of TTC, which adds $65 million in sales to the Defense segment and is expected to be slightly accretive to operating income and earnings per share, including purchase accounting costs. (2)Free cash flow is defined as cash flow from operations less capital expenditures. (3)Free Cash Flow Conversion is calculated as free cash flow divided by net earnings from continuing operations. 10 2017 Curtiss Wright

ONE Curtiss Wright Leveraging the Scale and Efficiency of an Integrated Global Company Organic Sales Growth Operating Margin Expansion Working Capital Management Balanced Capital Allocation Delivering Long Term Shareholder Value 11 2017 Curtiss Wright

Appendix 12 2017 Curtiss Wright

2017E Financial Outlook (1) (Guidance as of Oct. 25, 2017) Updated (in blue) ($ in millions, except EPS) 13 2017 Curtiss Wright FY2017E (Prior) FY2017E (Current) Change vs 2016 Commercial / Industrial $1,120-1,140 $1,130-1,150 1-3% Defense $540-550 $540-550 16-18% Power $525-535 $540-550 3-5% Total Sales $2,185-2,225 $2,210-2,250 5-7% Commercial / Industrial Margin Defense Margin Power Margin $161-166 14.3% - 14.5% $106-109 19.6% - 19.7% $77-79 14.6% - 14.7% $162-167 14.3% - 14.5% $106-109 19.6% - 19.7% $82-84 15.2% - 15.3% Corporate and Other ($22-24) ($22-24) - Total Oper. Income CW Margin $321-329 14.7% - 14.8% $328-336 14.8% - 14.9% 4-7% +30-50 bps 8-10% (140-150 bps) 8-10% +60-70 bps 6-9% +20-30 bps (1) Full-year 2017 guidance includes the acquisition of TTC, which is expected to contribute $65 million in sales to the Defense segment and to be slightly accretive to operating income, including purchase accounting costs.

2017E End Market Sales Growth Outlook (1) (Guidance as of Oct. 25, 2017) Updated (in blue) FY2017E (Prior) FY2017E (Current) % of Total Sales Aero Defense 23-25% 23-25% 16% Ground Defense Flat 4-6% 4% Naval Defense (1-3%) (0-2%) 18% Total Defense Including Other Defense 7-9% 8-10% 39% Commercial Aero Flat 0-2% 18% Power Generation 3-5% 3-5% 19% General Industrial 2-4% 5-7% 24% Total Commercial 1-3% 3-5% 61% Total Curtiss-Wright 4-6% 5-7% 100% (1) Full-year 2017 guidance includes the acquisition of TTC, which is expected to contribute $65 million in sales, primarily to the aerospace defense market and to a lesser extent to the commercial aerospace market. 14 2017 Curtiss Wright

2017 End Market Sales Waterfall (Guidance as of Oct. 25, 2017) ($ Millions) Total CW End Markets $2,210-2,250 Guidance: Defense Markets up 8-10% Comm l Markets up 3-5% Defense Markets 39% Commercial Markets 61% Naval 18% Commercial Aerospace 18% Power Generation 19% General Industrial 24% Aerospace 17% Aircraft Equipment 72% Aftermarket Nuclear 57% Industrial Vehicles 41% Ground 4% Surface Tech Services 28% New Build / AP1000 30% Industrial Valves 21% Non-Nuclear 13% Surface Tech Services 21% Non-Nuclear: Surface Technologies services (peening, coatings); Fossil power gen equipment Sensors and Controls 17% Note: Percentages in chart relate to Full-Year 2017 sales Industrial Vehicles: Own the Cab strategy 40% On-highway, 35% Off-Highway, 25% Medical Industrial Valves: 65% O&G, 35% Chem/Petro; 75% MRO, 25% projects Sensors and Controls: Sensors, controls, electric actuation and industrial automation equipment 15 2017 Curtiss Wright