Curtiss-wright Corporation · NYSE:CW

Curtiss-wright — KeyBanc Industrial, Automotive and Transportation Conference 2014

21 slides from Curtiss-wright's conference presentation, May 2014

  1. Slide 1: KeyBanc Industrial, Automotive and Transportation Conference

    KeyBanc Industrial, Automotive and Transportation Conference Dave Adams, President and CEO 1 | May 2014 | © 2014 Curtiss-Wright

  2. 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

  3. Slide 3: An Inflection Point…

    An Inflection Point… 3 | May 2014 | © 2014 Curtiss-Wright

  4. Slide 4: Curtiss-Wright Corporation

    Curtiss-Wright Corporation  Diversified, international provider of highly engineered products and services – Critical function solutions on high performance platforms – Dedicated to enhancing safety, reliability and performance  Leadership in strategically aligned markets – Longstanding customer r

  5. Slide 5: One Curtiss-Wright Dedicated to Improving Shareholder Value

    One Curtiss-Wright Processes Markets Leaders Functions Comms. Strategies INTEGRATED MARKET-FACING GLOBAL & DIVERSIFIED  Driven by a new integrated, market-facing structure  Making Today’s CW – Simpler and more transparent – More agile and quicker to react – More efficient and better positioned to

  6. Slide 6: Key Focus Areas New Alignment Will Accelerate Value Creation

    Key Focus Areas Organic Growth Market Strategies Margin Improvement Operational Initiatives Working Capital / Cash Flow Efficient Execution Capital Deployment Financial Discipline New Alignment Will Accelerate Value Creation 6 | May 2014 | © 2014 Curtiss-Wright

  7. Slide 7: Growth Driven by Market-Facing Segments

    Growth Driven by Market-Facing Segments Industrial Naval Defense Nuclear Power Commercial / Industrial Defense Energy Commercial Aerospace Aerospace and Ground Defense Oil & Gas 7 | May 2014 | © 2014 Curtiss-Wright

  8. Slide 8: Commercial / Industrial Segment

    Commercial / Industrial Segment Industrial  Critical sensors and operator controls  Leveraging trends in emissions and efficiency COMMERCIAL / INDUSTRIAL Commercial Aerospace  Mechanical and electronic components and subsystems  Flight control solutions  Advanced surface treatment technologies

  9. Slide 9: Defense Segment

    Defense Segment Naval Defense  Critical supplier to the Nuclear Navy  Market leader in COTS electronic solutions  High-value IP in Electronics DEFENSE  Enabling network-centric Aerospace and Ground Defense warfare  Technology aligned to market growth 2014E Sales1: $890 - 910M 1 Guidance as of A

  10. Slide 10: Energy Segment

    Energy Segment Nuclear Power  Enhancing plant safety and reliability  Qualified supplier of life extension solutions  Obsolescence management ENERGY Oil & Gas  Key upstream technologies  Valves, pumps, motors  Emissions control 2014E Sales1: $720 - 730M 1 Guidance as of April 30, 2014 10 | May

  11. Slide 11: Strategic Operating Margin Drivers Achieving 14% Over the Planning Period

    Strategic Operating Margin Drivers 14.0% Volume Strategic Initiatives Segment Focus / Improvements Portfolio Review Shared Services 9.3% Competitiveness Programs 2013 2018 Achieving 14% Over the Planning Period 11 | May 2014 | © 2014 Curtiss-Wright

  12. Slide 12: Clear Long-Term Financial Objectives

    Clear Long-Term Financial Objectives  Total Focus of Leadership Team  Enabled by One Curtiss-Wright Vision ~100% >12% Top Quartile Double >12.5% 5-6% Digit Organic Sales EPS Operating ROIC Free Cash Flow Growth Growth Margins Conversion Note: These objectives highlight the Company’s long-term guid

  13. Slide 13: Financial Update

    Financial Update Glenn Tynan, VP Finance and CFO 13 | May 2014 | © 2014 Curtiss-Wright

  14. Slide 14: Overview of First Quarter 2014 Results

    Overview of First Quarter 2014 Results  Sales increased 8%, led by a double-digit gain in the Commercial / Industrial segment – Commercial markets up 11%; Defense markets up 3%  Operating income increased 55%, mostly organic  Operating margin up 280 bps to 9.2% – Benefits of organizational realig

  15. Slide 15: 2014E Financial Outlook (Guidance as of April 30, 2014)

    2014E Financial Outlook (Guidance as of April 30, 2014) FY2014E FY2014E FY2013A (Prior) (Current) Total Sales $2,511M $2,650 - 2,700M No change Total Operating Income $234M $267 - 278M $274 - 285M CW Margin 9.3% 10.1% - 10.3% 10.3% - 10.5% Commercial / Industrial $111M $138 - 142M - Margin 11.5% 13.

  16. Slide 16: Improving Shareholder Value

    Improving Shareholder Value Balanced Capital Allocation Improving Operating Cash Flow Maximization Shareholder Margin Expansion Returns Financial Transparency 16 | May 2014 | © 2014 Curtiss-Wright

  17. Slide 17: Goal: Top Quartile Operating Margin Performance (and Beyond)

    Goal: Top Quartile Operating Margin Performance (and Beyond) 16.0% 14.0% 14.0% OBJECTIVE 12.5% 12.0% 10.3% - 10.5% 10.0% 9.3% 9.2% 8.0% 6.0% 4.0% 2.0% 0.0% CW 2013 Peer 50th Percentile CW 2014E* Peer 75th Percentile Target *Guidance as of April 30, 2014 17 | May 2014 | © 2014 Curtiss-Wright

  18. Slide 18: Improving Return on Invested Capital

    Improving Return on Invested Capital 14.0% ROIC(1) 12.0% OBJECTIVE 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Curtiss-Wright Peer 50th Percentile Peer 75th Percentile  Currently below median versus  Target: 12% ROIC peer group  Goal: Top Quartile (1) ROIC = NOPAT / (Avg. Net Debt + Equity) 18 | May 2014 | ©

  19. Slide 19: Improving Cash Flow Metrics – Working Capital

    Improving Cash Flow Metrics – Working Capital 35% Working Capital(1) as a % of Sales 30% 25% 20% OBJECTIVE 15% 10% 5% 0% Curtiss-Wright Peer 50th Percentile Peer 75th Percentile  Currently below median versus  Cash flow key element of S/T peer group compensation plan  Goal: Top Quartile  Focus:

  20. Slide 20: Balanced Capital Allocation Strategy

    Balanced Capital Allocation Strategy Capital Expenditures Acquisitions Dividends Share Repurchase  The same metric (ROIC) and criteria are applied to all investment opportunities  Leverage Metrics: – Debt / Cap 35% – 50% – Debt / EBITDA 2x – 4x 20 | May 2014 | © 2014 Curtiss-Wright

  21. Slide 21: The Future of Curtiss-Wright

    The Future of Curtiss-Wright  Solid organic sales growth  Significant operating margin expansion  Improved working capital management driving higher free cash flow  Committed to balanced capital allocation strategy Delivering Superior Performance Increasing Shareholder Value 21 | May 2014 | © 20

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