Slide 1: Investor Day 2021
INVESTOR DAY 2021 MAY 26, 2021 Investor Day 2021
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 website from one to twelve months following the initial presentation, but content will not be updated to reflect n
Slide 3: Agenda
AGENDA 8:30 am Welcome and Opening Remarks 10:00 am Break Jim Ryan Sr. Director, Investor Relations 10:05 am Defense Electronics Chris Wiltsey Company Overview and Strategy SVP & GM Defense Electronics Segment Lynn Bamford President & Chief Executive Officer Financial Strategy Operational Transforma
Slide 4: Curtiss-Wright Today
CURTISS-WRIGHT TODAY Investor Day 2021 4
Slide 5: Company Overview and Strategy
Company Overview and Strategy Lynn Bamford President & Chief Executive Officer Investor Day 2021 5
Slide 6: Key Messages | Company Overview and Strategy
KEY MESSAGES | COMPANY OVERVIEW AND STRATEGY 1 Pivot to growth, both organic and inorganic; reinvesting back into the business to fuel the innovation engine; disciplined and strategic approach to M&A while maintaining top quartile performance 2 Deepen and expand customer relationships through world-
Slide 7: Curtiss-Wright Snapshot
CURTISS-WRIGHT SNAPSHOT $2.5B $5.2B 90 40 8.2K 1.8K 2021E Market Countries Major Sites Employees Engineers Sales Cap1 Served (>50 employees) 2021E Sales by 2021E Sales by End Market Geography Commercial Asia Aerospace 10% 10% Europe HQ: Davidson, NC Power & 13% 19% Process 56% 15% 77% Defense North
Slide 8: Building on a Strong Foundation
BUILDING ON A STRONG FOUNDATION KEY OBSERVATIONS AS NEW CEO WHAT IS CHANGING? • Well-established culture of top quartile financial performance • Pivot to growth • Portfolio of industry-leading technologies; #1 or #2 • Greater leadership oversight of R&D, innovation and revenue share across the major
Slide 9: Reintroducing Our New Segment Structure
REINTRODUCING OUR NEW SEGMENT STRUCTURE AEROSPACE & INDUSTRIAL DEFENSE ELECTRONICS NAVAL & POWER 2021E Sales 7% 21% 18% 45% 44% ~$753M 51% ~$754M ~$970M 56% 28% 30% ■ Aerospace Defense ■ General Industrial ■ Commercial Aerospace ■Ground Defense ■ Naval Defense ■ Power & Process DRIVING SIMPLICITY, T
Slide 10: Today's Presenters | Experienced Leadership Team Focused on Execution
TODAY’S PRESENTERS | EXPERIENCED LEADERSHIP TEAM FOCUSED ON EXECUTION Lynn M. Bamford Kevin Rayment K. Christopher Farkas Greg Hempfling Chris Wiltsey President & CEO Chief Operating Officer Chief Financial Officer SVP / GM SVP / GM 2004 2004 2009 Naval & Power Defense Electronics 2004 2004 New to t
Slide 11: Our Environmental, Social and Governance (ESG) Journey
OUR ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) JOURNEY Establish long-term milestones / goals Launched company-wide EHS Management System; compiling energy / waste data across global operations Created cross-functional Launched Sustainability ESG council website Best-in-class Board / executive safet
Slide 12: Experienced and Diversified Board of Directors
EXPERIENCED AND DIVERSIFIED BOARD OF DIRECTORS Board Expertise Matrix Senior Leadership Experience 100% Industry Experience 80% Operations 80% David Adams Lynn Bamford Dean Flatt S. Marce Fuller Bruce Hoechner Public Company Board Experience 70% Executive Chairman President and CEO Former President
Slide 13: Core Capabilities and Sustainable Competitive Advantages
CORE CAPABILITIES AND SUSTAINABLE COMPETITIVE ADVANTAGES Strong technical expertise; Decades of knowledge transfer Global engineering, sales, managing and designing to meet since inception in most of our support and manufacturing customer needs and reduce risk major markets footprint Long-standing,
Slide 14: Proactively Targeting Highest Growth Vectors in Our End Markets
PROACTIVELY TARGETING HIGHEST GROWTH VECTORS IN OUR END MARKETS Emerging threats from U.S. adversaries support need for strong global shipbuilding base; “Return to Major Power Competition” is real Future of high-tech warfare driving increased demand for more sophisticated technologies Drive to carbo
Slide 15: Why Curtiss-Wright Remains Well-Positioned in Defense
WHY CURTISS-WRIGHT REMAINS WELL-POSITIONED IN DEFENSE • Demonstrated successful track record; grown at or above base DoD Budget over past 20 Years / last 3 Presidential terms (Republican or Democrat) • Solid stable positions with long-term visibility across key platforms such as Ford-class aircraft
Slide 16: Clear Strategy for Long-Term Profitable Growth
CLEAR STRATEGY FOR LONG-TERM PROFITABLE GROWTH Drive Growth Maintain Accelerate Through Disciplined Organic Operational Capital Growth Excellence Allocation Through Innovation Maintain Top Utilize M&A as a and Collaboration Quartile Strategic Performance Accelerator Investor Day 2021 16
Slide 17: Accelerate Organic Growth Through Innovation and Collaboration
ACCELERATE ORGANIC GROWTH THROUGH INNOVATION AND COLLABORATION ✓ Building on Established Positions in Critical Technologies ✓ Driving Visibility of Ideas Across the Organization through Our Innovation Operating System ✓ Maximizing Use of R&D and IP Collaboration; Continuing to Ensure Technology Lead
Slide 18: New Operational Growth Platform (OGP) Accelerates Pivot to Growth
NEW OPERATIONAL GROWTH PLATFORM (OGP) ACCELERATES PIVOT TO GROWTH Continuous Assessment Innovation Talent Attraction, Development and Retention LEAN Strategy • Strong Succession Planning Processes Customer Satisfaction • Deep Knowledge Transfer Collaboration • Continued Emphasis on Diversity & Inclu
Slide 19: Prioritizing Capital Towards M&A as a Strategic Accelerator
PRIORITIZING CAPITAL TOWARDS M&A AS A STRATEGIC ACCELERATOR STRATEGIC FILTERS M&A PRIORITIES Unique, High-Value IP Embedded Computing Capabilities and Adjacent Market, Customer, Product Alignment Technologies (Hardware and Software) Operations and Supply Chain Alignment Clear Synergies, Leverages CW
Slide 20: Strong Track Record of Successful M&A
STRONG TRACK RECORD OF SUCCESSFUL M&A DRG Business (SAS and Fleet) Acquisition Close January 2017 April 2018 March 2019 December 2019 March 2020 November 2020 Annual Sales Added1 $65M $95M $15M $48M $25M $120M Unique, High-Value IP ✓ ✓ ✓ ✓ ✓ ✓ Market, Customer, Product ✓ ✓ ✓ ● ✓ ✓ STRATEGIC FILTERS
Slide 21: Continuing to Progress on Our 2021 Goals
CONTINUING TO PROGRESS ON OUR 2021 GOALS STRONG Q1 RESULTS… …DROVE CONFIDENCE TO INCREASE FY’21 GUIDANCE • Adjusted Net Sales increased 2% YOY • Raised full-year guidance for Sales, Operating Income, • Aerospace & Defense markets up 8% Operating Margin and EPS • Adjusted Operating Income rose 15%; A
Slide 22: Introducing New 3-Year Financial Targets (2021-2023)
INTRODUCING NEW 3-YEAR FINANCIAL TARGETS (2021-2023) Operating 5-10% > 110% Income Top Quartile ≥ 10% Total Revenue Free Cash Growth > Margin Adj. EPS CAGR Flow Revenue Performance1 CAGR (3-5% Organic) Conversion Growth 1. Any reference to top quartile performance is relative to Curtiss-Wright’s pee
Slide 23: Operational Transformation
Operational Transformation Kevin Rayment Chief Operating Officer Investor Day 2021 23
Slide 24: Key Messages | Operational Transformation
KEY MESSAGES | OPERATIONAL TRANSFORMATION 1 Introducing new Operational Growth Platform; built upon strong track record of operational excellence 2 Fueling the growth engine through a concerted focus on innovation, strategy and M&A 3 Fostering a more focused, market-facing organization through comme
Slide 25: Progress on Our Operational Transformation
PROGRESS ON OUR OPERATIONAL TRANSFORMATION 2013-2018 2019-2020 2021-Future • Clarity of purpose – operating margin • Recession playbook • New Operational Growth Platform • Accountability • Strategic capital investments • Codify innovation operating system • Operational excellence • Introduced framew
Slide 26: Introducing Our Operational Growth Platform (OGP)
INTRODUCING OUR OPERATIONAL GROWTH PLATFORM (OGP) Continuous Assessment Innovation Strategy • Core to our culture • Structured strategic Innovation • Innovation council planning LEAN Strategy • Software-based tool • Executive oversight Customer Satisfaction • Staff incentivized • Fueled by R&D fundi
Slide 27: Innovation Operating System
INNOVATION OPERATING SYSTEM ✓ Innovation Council Ideation • Enterprise-wide multi-disciplined teams • Recognition, engagement, training, communication and process Stage Gate 1 Concept ✓ Software Based Tool Research Acceptance • Available to 8,200 staff Stage Gate 2 • Campaigns and individual ideas V
Slide 28: Strategy Development and Implementation
STRATEGY DEVELOPMENT AND IMPLEMENTATION ✓ Structured Strategic Planning • Annual activity – continuous assessment • Well-established process and deliverables • Company-wide views on future growth opportunities ✓ Executive Oversight • Execution and deployment of strategic initiatives • Tracking FY21
Slide 29: Approach to M&A / Due Diligence / Integration
APPROACH TO M&A / DUE DILIGENCE / INTEGRATION What We Do Well Why We Will Continue To Be Successful Cultivate relationships with sellers The team has deep relationships from decades in our end markets Open to acquiring adjacent businesses – e.g., two recent software Find adjacent businesses companie
Slide 30: Commercial Excellence
COMMERCIAL EXCELLENCE ✓ Presenting One CW to Our Customers • Easier “to do business with” website Cost-Plus Pricing • Ensures customers understand the breadth of CW offering • System capabilities – multiple divisions Premium • Business development alignment Pricing Contribution Margin ✓ Customer Sat
Slide 31: Continuous Assessment Mindset with Clear Targets in Place
CONTINUOUS ASSESSMENT MINDSET WITH CLEAR TARGETS IN PLACE Continuous Assessment Continuous Assessment Linked to Each Aspect of Our OGP • Managed by Operational Excellence team – cross functional/business Innovation • Assessment accounts for diversity of markets and technologies LEAN Strategy • Indep
Slide 32: New Growth KPIs
NEW GROWTH KPIs INNOVATION PIPELINE (FY’21) DESIGN WINS TARGETED DESIGN WINS (FY’21) LTV LIFETIME VALUE (LTV) 400 New Ideas 446 Program Wins $2.5B Value of Wins Case Study: Leveraging Innovation across One CW Innovation Design Wins Lifetime Value >$350M Advanced Nuclear Pumping Technology – Taking I
Slide 33: Key Takeaways
KEY TAKEAWAYS 1 Introducing new Operational Growth Platform (OGP); built upon strong track record of operational excellence 2 Fueling the growth engine through a concerted focus on innovation, strategy and M&A 3 Fostering a more focused, market facing organization through commercial excellence 4 Dri
Slide 34: Naval & Power – Segment Overview
Naval & Power – Segment Overview Greg Hempfling Senior Vice President & General Manager, Naval & Power Segment Investor Day 2021 34
Slide 35: Key Messages | Naval & Power
KEY MESSAGES | NAVAL & POWER 1 Leading provider of highly-engineered, critical solutions for the most challenging customer needs across Nuclear Defense and Commercial Nuclear Power since their inception 2 Leveraging core technologies and capabilities into Power and Process Markets 3 U.S. adversaries
Slide 36: Naval & Power Snapshot
NAVAL & POWER SNAPSHOT 2021E Sales Product Portfolio Power & Process Aircraft / Undersea Critical Nuclear Power & Propulsion Pumps & Valves Sensor Handling Reactor Equipment 44% ~$970M Naval 56% Defense • Shipboard Generators • Main Coolant Pumps • Helicopter Securing & • Reactor Coolant Pumps Key M
Slide 37: Core Capabilities and Sustainable Competitive Advantages
CORE CAPABILITIES AND SUSTAINABLE COMPETITIVE ADVANTAGES Single-Source / Integrated Design, Robust Integrated into the Unique Provider to Analysis, Manufacture Quality Systems Industry Regulatory and the U.S. Navy & Test Capabilities Recognized by Industry Oversight Bodies Broad & Diversified Unique
Slide 38: Well-Positioned to Capture Compelling Industry Trends
WELL-POSITIONED TO CAPTURE COMPELLING INDUSTRY TRENDS • Continuing build-out and overhaul of U.S. aircraft carrier fleet • Our Nation’s top-priority in naval defense – Columbia-class submarine • Positioned for growth on other U.S. and allied navy programs • Increasing global focus to reduce carbon e
Slide 39: Clear Strategy for Long-Term Profitable Growth
CLEAR STRATEGY FOR LONG-TERM PROFITABLE GROWTH Drive Growth Accelerate Through Deliver Value Organic Operational Through M&A Growth Excellence Driving Confidence Through Innovation Maintain Top in Pivot to Growth and Collaboration Quartile Strategy Performance Investor Day 2021 39
Slide 40: Strong and Expanding Nuclear Naval Presence
STRONG AND EXPANDING NUCLEAR NAVAL PRESENCE Ford-class Aircraft Carrier Columbia-class Submarine Virginia-class Submarine Current Shipset Content $400M $115M $75M Increased Shipset 33% 28% 25% Content since 2016 Run-Rate Production CVN 80 & 81 Block Buy 1 per year FY26-FY35 2+ per year Revenue Recog
Slide 41: Accelerate Organic Growth Through Innovation and Collaboration
ACCELERATE ORGANIC GROWTH THROUGH INNOVATION AND COLLABORATION New Product Development Value to Customer Content per Plant Product and Technology Synergies Highlighting Collaboration and Cross-Market Application Small Modular Reactors (SMRs) • Provide existing and First of a ~$20-80M and Advanced Re
Slide 42: Driving Growth Through Operational Excellence | Key Examples
DRIVING GROWTH THROUGH OPERATIONAL EXCELLENCE | KEY EXAMPLES Continuous Assessment Enhancing Operational Excellence State-of-the-Art Facilities and • Product and customer synergies across Footprint Rationalization for the both Power and Process Markets Future Innovation • Share wealth of knowledge &
Slide 43: Delivering Value Through M&A
DELIVERING VALUE THROUGH M&A DRG Business (SAS and Fleet) Added Capabilities Added Capabilities • Increased turbo-machinery content on most important platforms – Carriers & Subs • Critical, severe service valves - right in our strike zone • Provided Naval aftermarket field service capability not pre
Slide 44: SAS Facility: Naval Defense Propulsion
SAS FACILITY: NAVAL DEFENSE PROPULSION Investor Day 2021 44
Slide 45: Key Takeaways
KEY TAKEAWAYS 1 Leading provider of highly-engineered, critical solutions for the most challenging customer needs across Nuclear Defense and Commercial Nuclear Power since their inception 2 Leveraging core technologies and capabilities into Power and Process Markets 3 U.S. adversaries are a pacing t
Slide 46: Aerospace & Industrial – Segment Overview
Aerospace & Industrial – Segment Overview Kevin Rayment Chief Operating Officer Investor Day 2021 46
Slide 47: Key Messages | Aerospace & Industrial
KEY MESSAGES | AEROSPACE & INDUSTRIAL 1 Supplying critical industrial and commercial aerospace technologies that span into defense markets 2 Leading in electronification (HMI1) and electrification (high power electronics) across air, land and sea platforms 3 Providing market-specific, highly enginee
Slide 48: Aerospace & Industrial Snapshot
AEROSPACE & INDUSTRIAL SNAPSHOT 2021E Sales Product Portfolio Aerospace General High Performance Defense 21% Industrial Electro-mechanical On Highway – Vehicle Off Highway – Vehicle Peening, Engineered Actuation, Position Power Electronics and Electronic Control Coatings and Sensors and Solenoids Co
Slide 49: Core Capabilities and Sustainable Competitive Advantages
CORE CAPABILITIES AND SUSTAINABLE COMPETITIVE ADVANTAGES World-Class Range of High-Power Reliable High-Temperature Historic Relationships and Power Electronics; Multiple and Precision Precision Sensors and Longevity of Supply for both Vehicle Types Across Electro-Mechanical Solenoids Aerospace and I
Slide 50: Well-Positioned to Capture Compelling Industry Trends
WELL-POSITIONED TO CAPTURE COMPELLING INDUSTRY TRENDS • Products and technology to take advantage of electronification of vehicle platforms • Qualified products to take advantage of emerging powertrain electrification in medium and heavy-duty vehicles • Electrification of aircraft in terms of power,
Slide 51: Clear Strategy for Long-Term Profitable Growth
CLEAR STRATEGY FOR LONG-TERM PROFITABLE GROWTH Drive Growth Accelerate Through Deliver Value Organic Operational Through M&A Growth Excellence Driving Confidence Through Innovation Maintain Top in Pivot to Growth and Collaboration Quartile Strategy Performance Investor Day 2021 51
Slide 52: Accelerate Organic Growth Through Innovation and Collaboration
ACCELERATE ORGANIC GROWTH THROUGH INNOVATION AND COLLABORATION Product and Technology Synergies Highlighting New Product Development Value to Customer Lifetime Value (LTV) Collaboration and Cross-Market Application HMI Electronification • Improved performance $300M+ safety and efficiency High Temp P
Slide 53: Driving Growth Through Operational Excellence | Key Examples
DRIVING GROWTH THROUGH OPERATIONAL EXCELLENCE | KEY EXAMPLES Commercial Excellence – LEAN – Investing in Capital Equipment Continuous Assessment Strategic Pricing for Factory Modernization • Turn-time based pricing tiers • Robotics/test automation - reduced cost, Innovation increased flexibility, in
Slide 54: Christchurch UK Facility Modernization
CHRISTCHURCH UK FACILITY MODERNIZATION Investor Day 2021 54
Slide 55: Delivering Value Through M&A
DELIVERING VALUE THROUGH M&A Historical Acquisitions • Penny & Giles – HMI (Joysticks, Controllers and Sensors) • Williams Controls – HMI (Electronic Throttle Controls) • PG Drives – HMI (Advanced Motor Controllers) • Arens Controls – (Traction Inverters, Shifters & Power Electronics) Created Corner
Slide 56: Key Takeaways
KEY TAKEAWAYS 1 Supplying critical industrial and commercial aerospace technologies that span into defense markets 2 Leading in electronification (HMI) and electrification (high power electronics) across air, land and sea platforms 3 Providing market-specific, highly engineered solutions and service
Slide 57: Break
Break Investor Day 2021 57
Slide 58: Defense Electronics – Segment Overview
Defense Electronics – Segment Overview Chris Wiltsey Senior Vice President & General Manager, Defense Electronics Segment Investor Day 2021 58
Slide 59: Key Messages | Defense Electronics
KEY MESSAGES | DEFENSE ELECTRONICS 1 Long history of creating/leading industry standards; deep understanding of future DoD technology needs and poised to benefit from growth in Modular Open Systems Approaches (MOSA) 2 Well-established systems solution provider across multiple markets 3 Continued str
Slide 60: Defense Electronics Snapshot
DEFENSE ELECTRONICS SNAPSHOT Product Portfolio 2021E Sales Commercial Turnkey and Aerospace COTS Embedded Application Ready Tactical Battlefield Instrumentation and Computing Solutions and Software Communications Control Naval 6% Aerospace Defense Defense 18% 46% ~$754M Ground Defense 30% Key Market
Slide 61: Core Capabilities and Sustainable Competitive Advantages
CORE CAPABILITIES AND SUSTAINABLE COMPETITIVE ADVANTAGES Broad Customer Base Wide and Deep Range of Critical IP and Deep High Performance and Systems Architecture Products; 500+ New Engineering Expertise Electronics for Harshest Knowledge; 2,200+ Customers Product Releases Over the (600+ Hardware, S
Slide 62: Well-Positioned to Capture Compelling Industry Trends
WELL-POSITIONED TO CAPTURE COMPELLING INDUSTRY TRENDS • Aligning investments with top DoD growth priorities − Leading industry standards and solutions for Modular Open Systems Approaches (MOSA), Cyber, Security − Hypersonics, Unmanned / Autonomous / Intelligent Systems − Emerging threats, e.g., Oper
Slide 63: Clear Strategy for Long-Term Profitable Growth
CLEAR STRATEGY FOR LONG-TERM PROFITABLE GROWTH Drive Growth Accelerate Through Deliver Value Organic Operational Through M&A Growth Excellence Driving Confidence Through Innovation Maintain Top in Pivot to Growth and Collaboration Quartile Strategy Performance Investor Day 2021 63
Slide 64: Accelerate Organic Growth Through Innovation and Collaboration
ACCELERATE ORGANIC GROWTH THROUGH INNOVATION AND COLLABORATION Product and Technology Synergies Highlighting New Product Development Value to Customer Lifetime Value (LTV) Collaboration and Cross-Market Application MOSA Focused • Provides Open System $1B+ Solutions solutions for platform development
Slide 65: Driving Growth Through Operational Excellence | Key Examples
DRIVING GROWTH THROUGH OPERATIONAL EXCELLENCE | KEY EXAMPLES Continuous Assessment Commercial Excellence Sales and BD Collaboration • Commerciality of products driving more Enhancing Operational Excellence Innovation robust pricing across Business Units LEAN Strategy • Tailored pricing and contracti
Slide 66: Delivering Value Through M&A
DELIVERING VALUE THROUGH M&A Added Capabilities Added Capabilities • Increased breadth of embedded computing portfolio; proprietary software • Increased breadth of naval product portfolio (ruggedized shipboard enclosure • Ability to cross-sell: CW (intra-platform) + PacStar (inter-platform) solution
Slide 67: PacStar Battlefield Communications
PACSTAR BATTLEFIELD COMMUNICATIONS Investor Day 2021 67
Slide 68: Key Takeaways
KEY TAKEAWAYS 1 Long history of creating/leading industry standards; deep understanding of future DoD technology needs and poised to benefit from growth in Modular Open Systems Approaches (MOSA) 2 Well-established systems solution provider across multiple markets 3 Continued strong R&D investment al
Slide 69: Financial Overview
Financial Overview Chris Farkas Chief Financial Officer Investor Day 2021 69
Slide 70: Key Messages | Financial Overview
KEY MESSAGES | FINANCIAL OVERVIEW 1 Leverage strong foundation and seize opportunities to further enhance operational and financial excellence 2 Reinvest into the business to drive innovation and deliver accelerated top-line growth with continued Top Quartile performance; maintaining stringent finan
Slide 71: Building on a Strong Foundation
BUILDING ON A STRONG FOUNDATION KEY OBSERVATIONS AS NEW CFO WHAT IS CHANGING? • Three well-positioned segments, each with clear peer comps • Strength in the combined portfolio • Higher focus on company-wide investment priorities; − Ability to capture or insulate against key industry trends maintaini
Slide 72: Strong Track Record of Operational Execution
STRONG TRACK RECORD OF OPERATIONAL EXECUTION HIGHLIGHTS ADJ. NET SALES ($M) ADJ. OPERATING MARGIN • 220 Basis Points of Margin Expansion and $2,490 16.5% 16.3% $2,412 $2,393 Strong Free Cash Flow driven by 15.8% $2,271 Operational Excellence 14.7% $2,109 14.1% • Recession Playbook, Organizational Ag
Slide 73: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Use of Cash $1.1B $0.8B $0.5B Acquisitions Returns to Shareholders Operational Investments Since 2016 • 6 Deals • 5 A&D • 1 Commercial • $620M+ buybacks • $130M+ dividends • CapEx • Pension funding • Debt repayment Operational Investments 22% Future Priorities Acquisitio
Slide 74: Continue to Maintain Strong, Flexible Balance Sheet with Ample Liquidity
CONTINUE TO MAINTAIN STRONG, FLEXIBLE BALANCE SHEET WITH AMPLE LIQUIDITY CASH AND DEBT LEVELS1 LEVERAGE RATIOS1 • Cash Balance: $147M • Adjusted Debt / EBITDA: 2.5x (targeted range 2.0x - 3.0x) • Adjusted Net Debt / EBITDA: 2.1x • Total Debt: $1.05B − $1.05B private placement • Interest Coverage: 11
Slide 75: Strategic and Focused Approach to M&A
STRATEGIC AND FOCUSED APPROACH TO M&A STRATEGIC FILTERS FINANCIAL FILTERS Unique, High-Value IP Long-term Sustainable Organic Growth Market, Customer, Product Alignment Operations and Supply Chain Alignment Operating Income Growth > Revenue Growth Clear Synergies, Leverages CW’s Operational Excellen
Slide 76: New Operational Growth Platform Accelerates Pivot to Growth
NEW OPERATIONAL GROWTH PLATFORM ACCELERATES PIVOT TO GROWTH Continuous Assessment Organizational Optimization Strategy • Building upon Shared Services: • Enterprise Performance Innovation Accounting, ITSS, HR, Management System LEAN Strategy Procurement, Compliance Implementation Customer Satisfacti
Slide 77: 2021 Financial Outlook
2021 FINANCIAL OUTLOOK Revenue Growth Adj. Operating Margin Adj. Diluted EPS Robust FCF Generation 7-9% 16.6-16.7% $7.10-7.30 $330-360M KEY HIGHLIGHTS • Organic growth 2-4% • Solid growth in Operating • Reflects 8-11% growth • Remain above long-term FCF • A&D Markets up 7-9%, Income, up 9-11% • Mini
Slide 78: Introducing New 3-Year Revenue Assumptions (2021-2023)
INTRODUCING NEW 3-YEAR REVENUE ASSUMPTIONS (2021-2023) REVENUE GROWTH ACCELERATED BY POTENTIAL ACQUISITIONS ORGANIC ASSUMPTIONS: End Markets 3-5% ORGANIC REVENUE CAGR >$3.0B Naval Defense LSD (Beyond 2021) Aerospace Defense LSD Ground Defense LSD + PacStar (HSD) Commercial Aerospace MSD (Expect full
Slide 79: Introducing New 3-Year Financial Targets (2021-2023)
INTRODUCING NEW 3-YEAR FINANCIAL TARGETS (2021-2023) Operating 5-10% > 110% Income Top Quartile ≥ 10% Total Revenue Free Cash Growth > Margin Adj. EPS CAGR Flow Revenue Performance1 CAGR (3-5% Organic) Conversion Growth 1. Any reference to top quartile performance is relative to Curtiss-Wright’s pee
Slide 80: Key Takeaways | Financial Overview
KEY TAKEAWAYS | FINANCIAL OVERVIEW 1 Leverage strong foundation and seize opportunities to further enhance operational and financial excellence 2 Reinvest into the business to drive innovation and deliver accelerated top-line growth with continued top quartile performance; maintaining stringent fina
Slide 81: Closing Remarks
Closing Remarks Lynn Bamford President & Chief Executive Officer Investor Day 2021 81
Slide 82: Closing Remarks
CLOSING REMARKS 1 Pivot to growth, both organic and inorganic; reinvesting back into the business to fuel the innovation engine; disciplined and strategic approach to M&A while maintaining top quartile performance 2 Deepen and expand customer relationships through world-class execution by supplying
Slide 83: Q&A
Q&A Investor Day 2021 83
Slide 84: Appendix
Appendix Investor Day 2021 84
Slide 85: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS The Corporation reports its financial performance in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This presentation refers to "Adjusted" amounts, which are non-GAAP financial measures described below. We utilize a numbe
Slide 86: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ADJUSTED SALES ADJUSTED OPERATING MARGIN ADJUSTED DILUTED EARNINGS PER SHARE ADJUSTED FREE CASH FLOW Investor Day 2021 86
Slide 87: Non-GAAP Reconciliation – 2020 vs 2021 (Adjusted)
NON-GAAP RECONCILIATION – 2020 vs 2021 (ADJUSTED) CURTISS-WRIGHT CORPORATION 2021 Guidance (New Segment Structure) As of May 5, 2021 (#039;s in millions, except per share data) 2020 2021 2021 2021 (1,3) (2) Adjusted Reported Guidance Exiting Non- Adjustments Adjusted Guidance (2) (Non-GAAP) (GAAP) Core
Slide 88: Non-GAAP Reconciliations – Q1 2021 Results
NON-GAAP RECONCILIATIONS – Q1 2021 RESULTS (In millions, except EPS) Q1-2021 Q1-2020 Change Net sales $ 597.1 $ 601.2 (1%) Adjustments (1) (7.1) (25.6) Adjusted net sales $ 590.0 $ 575.7 2% Reported operating income (GAAP) $ 85.1 $ 72.4 17% Adjustments (1) 3.7 4.5 Adjusted operating income (Non-GAAP
Slide 89: Acronyms and Definitions
ACRONYMS AND DEFINITIONS • A-PNT – Assured-Positioning, Navigation and Timing • ISO – International Organization for Standardization • AR – Advanced Reactors • ITSS – Information Technology Shared Services • ARDP – Advanced Reactor Design Program • KPIs – Key Performance Indicators • ASU – Air Separ
Slide 90: Speaker Biographies
Speaker Biographies Investor Day 2021 90
Slide 91: Lynn M. Bamford
Lynn M. Bamford Lynn M. Bamford assumed the role of President and Chief Executive Officer of Curtiss-Wright Corporation on January 1, 2021 and was named a member of the Board. Previously, she served as President of the Defense and Power Segments since January 2020, where she maintained overall respo
Slide 92: Kevin Rayment
Kevin Rayment Kevin M. Rayment was named Vice President and Chief Operating Officer of Curtiss-Wright Corporation in 2021. Prior to assuming his current responsibilities, he was named President of the Commercial / Industrial Segment in January 2020. Mr. Rayment has more than 30 years of experience a
Slide 93: K. Christopher Farkas
K. Christopher Farkas K. Christopher (Chris) Farkas was named Vice President and Chief Financial Officer of Curtiss-Wright Corporation in 2020. Prior to assuming his current responsibilities, he was named Vice President of Finance of Curtiss-Wright Corporation in December 2017, and previously held t
Slide 94: Greg Hempfling
Greg Hempfling Gregory (Greg) J. Hempfling is Senior Vice President and General Manager of the Electro-Mechanical Systems (EMS) Division, which is a global leader in delivering high-performance pumps, turbines, motors, generators, aircraft and underwater sensor handling systems to the U.S. Navy, Int
Slide 95: Chris Wiltsey
Chris Wiltsey Chris Wiltsey is Senior Vice President and General Manager of the Defense Solutions division, which is recognized globally as one of the most innovative designers and manufacturers of rugged and secure mission-critical solutions for the defense and aerospace industries, including comme