Slide 1: 1Q 2015 Earnings Conference Call
1Q 2015 Earnings Conference Call April 30, 2015 NYSE: CW 1 | April 30, 2015 | © 2015 Curtiss-Wright
Slide 2: Safe Harbor Statement
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 web site from one to twelve months following the initial presentation, but content will not be updated to reflect
Slide 3: Overview of First Quarter 2015 Results
Overview of First Quarter 2015 Results Net Sales increased 1% (Up 3% organic) Operating Income increased 19% (Up 16% organic) Operating Margin up 210 bps to 13.3% (12.7% organic) – Solid organic growth in Commercial/Industrial and Power segments – Benefits of ongoing margin improvement initiat
Slide 4: 1Q 2015 End Market Sales
1Q 2015 End Market Sales 1Q’15 Results: General Commercial Defense Markets +4%; organic +6% Aero Industrial Commercial Markets (1%); organic +1% 27% 19% Key Drivers: Higher AP1000 program revenues (Progress Energy termination) Strong int’l ground defense sales Power Higher Virginia-class s
Slide 5: 1Q 2015 Operating Income / Margin Drivers
1Q 2015 Operating Income / Margin Drivers Reported Organic ($ in millions) 1Q’15 1Q’14 Change Change Reported Reported vs. 1Q’14 vs. 1Q’14 Commercial/Industrial $43.3 $38.5 12% 12% Margin 14.5% 12.8% +170 bps +140 bps Defense 18.0 15.8 14% 0% Margin 15.9% 14.0% +190 bps (50 bps) Power 19.5 14.3 37%
Slide 6: 2015E End Market Sales Outlook (Guidance as of April 29, 2015)
2015E End Market Sales Outlook (Guidance as of April 29, 2015) % of Total FY2015E Sales Aero Defense (2) - 2% 12% Ground Defense 26 - 30% 4% Naval Defense (2) - 2% 17% Total Defense 2 - 4% 33% Including Other Defense Commercial Aero (2) - 2% 19% Power Generation (2) - 2% 18% General Industrial 5 - 9
Slide 7: 2015E Financial Outlook (Guidance as of April 29, 2015)
2015E Financial Outlook (Guidance as of April 29, 2015) ($ in millions) FY2014 Pro Forma FY2015E Growth % Total Sales $2,243 $2,280 - 2,330 2 - 4% Commercial / Industrial $1,228 $1,265 - 1,285 3 - 5% Defense $490 $500 - 515 2 - 5% Power $525 $515 - 530 (2) - 1% Total Operating Income $282 $303 - 312
Slide 8: 2015E Financial Outlook (Guidance as of April 29, 2015)
2015E Financial Outlook (Guidance as of April 29, 2015) FY2014A FY2015E Free Cash Flow (1) $265M $100 - 120M Adjusted Free Cash Flow (2) $254M $245 - 265M Free Cash Flow Conversion(3) 156% 55 - 64% Adjusted Free Cash Flow Conversion(4) 149% 135 - 142% (1) Free Cash Flow is defined as cash flow from
Slide 9: Strategic Margin Drivers
Strategic Margin Drivers Operational and productivity improvement initiatives – Operational Excellence (Lean, Supply Chain Management) – Low Cost Economies – Segment Focus – Shared Services – Consolidation Programs Aided by steady organic sales growth 75th Percentile: 14.2% Operating Margin Ad
Slide 10: Balanced Capital Allocation
Balanced Capital Allocation Committed to steady returns to shareholders – ~$50M in 1Q’15 share repurchases Shareholder Returns – $200 million in share repurchases expected in 2015 Utilize free cash flow for bolt-on Operational acquisitions Acquisitions Requirements Internal investment driving
Slide 11: Outlook for 2015 and Closing Comments
Outlook for 2015 and Closing Comments Expect solid sales and operating income with strong, double-digit growth in diluted EPS – Growth anticipated in both commercial and defense markets On track for significant operating margin expansion – Driven by operational improvement and cost reduction ini
Slide 12: Appendix
Appendix 12 | April 30, 2015 | © 2015 Curtiss-Wright
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended March 31, 2015 vs 2014 Commercial/Industrial Defense Power Total Curtiss-Wright Operating Operating Operating Operating Sales Sales Sales Sales income income income income Organic 2% 12% 4% (0%) 4% 38% 3% 16% Acquisitions 0% (0%) 0% 0% 0% (1%) 0% (0%) Forei