Slide 1: Investor Briefing First Quarter 2023
INVESTOR BRIEFING Investor Relations contact: First Quarter 2023 Jim Ryan, VP Investor Relations T: 704-869-4621 jim.ryan@curtisswright.com Investor Presentation 2023
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: The Curtiss-Wright Investment Story
THE CURTISS-WRIGHT INVESTMENT STORY Leveraging the Power of One Curtiss-Wright to Enhance Shareholder Value 1 2 3 4 5 Strong & Defensible Aligned with UNIFIED PORTFOLIO Track Record as Executing MARKET POSITIONS GROWTH VECTORS Positioned to EXCEPTIONAL PIVOT TO GROWTH & SECULAR TRENDS Accelerate Gro
Slide 4: Curtiss-Wright at a Glance
CURTISS-WRIGHT AT A GLANCE ~$2.7B+ $6.8B Leading Provider of Highly Engineered & Mission Critical Technologies 2023E Sales Market Cap1 in Aerospace & Defense, Commercial Power, Process & Industrial Markets BROAD & INTEGRATED PORTFOLIO GLOBAL FOOTPRINT 2023E Sales by End Market 2023E Sales by Geograp
Slide 5: Our Ambition
OUR AMBITION To better the world by enabling strong national defenses, energy independence, and sustainable commercial applications through our highly engineered, mission critical solutions. Investor Presentation 2023 5
Slide 6: Core Capabilities Drive Sustainable Competitive Advantages
CORE CAPABILITIES DRIVE SUSTAINABLE COMPETITIVE ADVANTAGES STRONG TECHNICAL EXPERTISE DECADES OF GLOBAL FOOTPRINT managing and designing to meet customer KNOWLEDGE TRANSFER engineering, sales, support needs and reduce risk since inception in most of our major markets and manufacturing LONG-STANDING
Slide 7: Proactively Targeting Highest Growth Vectors in Attractive End Markets
PROACTIVELY TARGETING HIGHEST GROWTH VECTORS IN ATTRACTIVE END MARKETS Secular Trends Playing to our Strengths: ~$2.7B+ Elevated threat environment from U.S. adversaries driving urgency for global defense spending and strong global Naval Defense 27% shipbuilding base; “Return to Major Power Competit
Slide 8: Proven Ability to Leverage Growth in Global Defense Spending
DEFENSE MARKETS PROVEN ABILITY TO LEVERAGE GROWTH IN GLOBAL DEFENSE SPENDING STRONG & DEFENSIBLE ALIGNED WITH Ground MARKET POSITION LEADING GROWTH DRIVERS Defense LT Visibility Across Key Platforms Ford-class Aircraft Carrier, • DoD Priorities 56% Columbia-class & Virginia-class Naval Shipbuilding
Slide 9: Opportunities for Growth Beyond Strong OEM Foundation
C O M M E R C I A L A E R O S PA C E M A R K E T OPPORTUNITIES FOR GROWTH BEYOND STRONG OEM FOUNDATION Commercial Aerospace BROAD & RELEVANT ALIGNED WITH PRODUCT PORTFOLIO LEADING GROWTH DRIVERS 11% 18% 9% ➢ Acceleration in Narrowbody Strong Presence on Majority of Production through 2025 11% 15% 18
Slide 10: Renewing the Core & Aligning to Next-Gen Technologies
POWER & PROCESS MARKET RENEWING THE CORE & ALIGNING TO NEXT-GEN TECHNOLOGIES Power STRONG & RELEVANT ALIGNED WITH & Process PRODUCT PORTFOLIO LEADING GROWTH DRIVERS Enhancing Power Plant • Renewed Interest in Commercial Efficiency And Reliability Nuclear Power 18% Long-standing Aftermarket Presence
Slide 11: Technologies That Advance Customer Efficiency, Safety and Reduced Emissions
GENERAL INDUSTRIAL MARKET TECHNOLOGIES THAT ADVANCE CUSTOMER EFFICIENCY, SAFETY AND REDUCED EMISSIONS WELL-ESTABLISHED ALIGNED WITH MARKET POSITIONS LEADING GROWTH DRIVERS Broad Portfolio Of Highly- • Advancing Green Technologies 16% General Industrial engineered Products & Services Push for Zero /
Slide 12: The Power of One Curtiss-Wright
THE POWER OF ONE CURTISS-WRIGHT: Positioned to Leverage Cross-Over Technologies to Accelerate Growth Across the Portfolio CROSS-OVER TECHNOLOGY EXAMPLES Defense technologies have long been leveraged for commercial solutions DEFENSE COMMERCIAL Flight Data & Cockpit SOLUTIONS Industrial Electrificatio
Slide 13: Strong Foundation of Financial & Operational Excellence
STRONG FOUNDATION OF FINANCIAL & OPERATIONAL EXCELLENCE ADJ. NET SALES ($M) ADJ. OPERATING MARGIN 2023 GUIDANCE HIGHLIGHTS $2,655 - $2,710 $2,468 $2,557 17.0% 17.3% 17.4 - 17.6% ▪ 4% - 6% Sales growth $2,379 16.4% 16.3% $2,318 $2,300 15.9% – Driven by increases in nearly all end markets ▪ Continued
Slide 14: Committed to Advancing Our ESG Efforts
COMMITTED TO ADVANCING OUR ESG EFFORTS to drive value for our team members, customers, shareholders and communities we serve OUR PROGRESS: • Long track record of strong governance and safety metrics • MSCI ESG rating of “A” • Board / executive oversight • Created cross-functional ESG council • Launc
Slide 15: Pivot to Growth Strategy for Long-Term Profitable Growth
PIVOT TO GROWTH STRATEGY FOR LONG-TERM PROFITABLE GROWTH 1 2 3 Maintain Drive Growth Accelerate Disciplined Through Organic Capital Continued Growth Allocation Through Innovation Operational Utilize M&A as a and Collaboration Excellence Strategic Accelerator Maximizing Revenue And Operating Income G
Slide 16: On Track to Achieve 3-Year Financial Targets (2021-2023)
ON TRACK TO ACHIEVE 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
Slide 17: Accelerating Organic Growth Through Innovation and Collaboration
S T R AT E G Y # 1 : ACCELERATING ORGANIC GROWTH THROUGH INNOVATION AND COLLABORATION Multiple Growth Levers ✓ LEVERAGING INNOVATION OPERATING SYSTEM to drive visibility of ideas & new solutions across CW Well-positioned for ✓ MAXIMIZING R&D AND IP COLLABORATION to expand our capabilities LONG-TERM
Slide 18: Operational Growth Platform Accelerates Pivot to Growth
S T R AT E G Y # 2 OPERATIONAL GROWTH PLATFORM ACCELERATES PIVOT TO GROWTH BENEFITS • Reinvigorated innovation and collaboration • New opportunities in commercial excellence and strategic pricing • Improved business development, sales and engineering collaboration • Greater customer satisfaction and
Slide 19: Disciplined Capital Allocation Strategy
S T R AT E G Y # 3 DISCIPLINED CAPITAL ALLOCATION STRATEGY Use of Cash $1.4B $1.2B $0.7B Acquisitions Returns to Shareholders Operational Investments 2016 – 2022 • 8 Deals • 6 A&D • 2 Commercial • $1.0B Buybacks • $195M Dividends • CapEx • Pension funding • Avg: $140M+/yr Avg: $28M/yr Debt repayment
Slide 20: Applying Our Strategic and Focused Approach to M&A
STRATEGY #3 APPLYING OUR 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
Slide 21: Building on Successful M&A Track Record
S T R AT E G Y # 3 BUILDING ON SUCCESSFUL M&A TRACK RECORD DRG Business (SAS and Fleet) Arresting Systems Business Acquisition Close January 2017 April 2018 December 2019 March 2020 November 2020 June 2022 Annual Sales Added1 $65M $95M $48M $25M $120M $70M* Unique, High-Value IP ✓ ✓ ✓ ✓ ✓ ✓ Market,
Slide 22: Continued Line of Sight to 3-Year Financial Targets (2021-2023)
CONTINUED LINE OF SIGHT TO 3-YEAR FINANCIAL TARGETS (2021-2023) TARGETS CHANGING DYNAMICS SINCE 2021 INVESTOR DAY INTRODUCED MAY 2021 Tailwinds: • Strong bipartisan support for U.S. Defense budget + FMS • Positive government legislation (Infrastructure, IRA) • Rising pro-nuclear sentiment and need f
Slide 23: The Curtiss-Wright Investment Story
THE CURTISS-WRIGHT INVESTMENT STORY Leveraging the Power of One Curtiss-Wright to Enhance Shareholder Value 1 2 3 4 5 Strong & Defensible Aligned with UNIFIED PORTFOLIO Track Record as Executing MARKET POSITIONS GROWTH VECTORS Positioned to EXCEPTIONAL PIVOT TO GROWTH & SECULAR TRENDS Accelerate Gro
Slide 24: Appendix
Appendix Investor Presentation 2023 24
Slide 25: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION The Corporation supplements its financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. Curtiss-Wright believes that these Adjusted (non-GAAP) measures provide investors with improved tran
Slide 26: 2022 End Market Sales Waterfall
FY’22 Adjusted: 2022 END MARKET SALES WATERFALL Overall UP 4% A&D Markets UP 2% Total 2022 CW End Markets Comm’l Markets UP 8% $2.557B Aerospace & Defense Markets Commercial Markets 66% $1.67B 34% $0.89B Naval Commercial Aerospace Power & Process General Industrial 27% 11% 18% 16% Pumps / Valves / S
Slide 27: 2023E End Market Sales Waterfall
FY’23 Adjusted Guidance: 2023E END MARKET SALES WATERFALL (as of February 21, 2023) Overall UP 4 - 6% A&D Markets UP 6 - 8% Total 2023 CW End Markets Comm’l Markets UP 0 - 2% $2.655B - 2.710B Aerospace & Defense Markets Commercial Markets 67% $1.78B 33% $0.90B Naval Commercial Aerospace Power & Proc
Slide 28: 2023 End Market Sales Growth Guidance
2023 END MARKET SALES GROWTH GUIDANCE (As of February 21, 2023) 2023E Growth 2023E vs 2022 % Sales ▪ Solid organic growth in defense electronics revenues on various C5/ISR programs; Aerospace Defense 9% - 11% 20% Contribution from arresting systems acquisition Ground Defense 4% - 6% 9% ▪ Higher tact
Slide 29: 2023 Financial Guidance
2023 FINANCIAL GUIDANCE (As of February 21, 2023) % Change ($ in millions) 2023E Adjusted vs 2022 Aerospace & Industrial $845 - 860 1% - 3% ▪ Solid growth in Commercial Aerospace mainly offset by reduced Defense (timing of programs) and FX (1%) ▪ Strong Defense market growth driven by record backlog
Slide 30: 2023 Financial Guidance
2023 FINANCIAL GUIDANCE (As of February 21, 2023) 2022 2023E % Change ($ in millions, except EPS) Adjusted Adjusted vs 2022 Total Sales $2,557 $2,655 - 2,710 4% - 6% Growth in Operating Income exceeds Sales (aligns w/ Investor Day) Total Operating Income $443 $463 - 477 5% - 8% Other Income $17 $27
Slide 31: Long-Term Revenue Growth Assumptions (As of May 2021 Investor Day)
LONG-TERM REVENUE GROWTH ASSUMPTIONS (As of May 2021 Investor Day) End Markets ORGANIC REVENUE CAGR (2021-2023) Aerospace Defense LSD Ground Defense Org (LSD) + PacStar (HSD) Naval Defense LSD (up 22% in ’20) Comm’l Aerospace MSD (Expect narrowbody recovery end of 2023; Widebody by end 2025) Nuclear