Slide 1: Investor Overview
Investor Overview NYSE: CW 1 | © 2020 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 website from one to twelve months following the initial presentation, but content will not be updated to reflect n
Slide 3: Curtiss-Wright Corporation
Curtiss-Wright Corporation ~$2.6 billion in 2020E sales Leadership positions in growing markets Defense Comm. Aerospace Severe-service applications Enhancing safety, reliability and performance One Curtiss-Wright General Industrial Power Generation Global Diversified Industrial Company 3 |
Slide 4: Broad End Market Diversification
Broad End Market Diversification Defense: Defense Commercial – Naval (25%): Nuclear submarine and aircraft carrier (45%) Aerospace programs (17%) – Aerospace (16%): Fighter jet, helicopter and UAV programs – Ground (4%): Domestic and international armored vehicles Commercial Aerospace: Critical
Slide 5: 2020E End Market Sales Growth
2020E End Market Sales Growth (Guidance as of February 26, 2020) 2020E 2019 2020E % Total Sales Key Drivers Aero Defense 11% 4% - 6% 16% Favorable growth on key platforms (esp. F-35) Ground Defense (4%) 5% - 7% 4% Modernization of U.S. ground platforms Strong DoD support for submarines and air
Slide 6: 2020E Financial Outlook (Guidance as of February 26, 2020)
2020E Financial Outlook (Guidance as of February 26, 2020) (1) 2019 Adjusted 2020E Change vs (2) (1)(2) ($ in millions) (New Structure) 2020E Adjusted 2019 Adjusted 2020 Key Drivers Commercial / Industrial $1,138 $1,140 - 1,160 0% - 2% Modest growth in commercial & industrial markets Solid growt
Slide 7: 2020E Financial Outlook (Guidance as of February 26, 2020)
2020E Financial Outlook (Guidance as of February 26, 2020) 2020E Change vs (2) (3) (2)(3) ($ in millions, except EPS) 2019 Adjusted 2020E Adjusted 2019 Adjusted 2020 Key Drivers Total Operating Income $411 $428 - 437 4% - 6% Higher profitability on strong defense revenues Other Income/(Expense) $2
Slide 8: One Curtiss-Wright Vision Driving Strong Returns (1)
One Curtiss-Wright Vision Driving Strong Returns (1) OPERATING MARGIN Ongoing benefits of Operating Margin 18.0% improvement initiatives: 16.5-16.6% 17.0% 16.5% – Consolidations (segment structure and overhead; 15.8% facilities) 16.0% 14.6% 14.7% – Portfolio rationalization (including divesting ma
Slide 9: One Curtiss-Wright Vision Driving Strong Returns (2)
One Curtiss-Wright Vision Driving Strong Returns (2) Free cash flow ($M) FREE CASH FLOW Free cash flow $450 conversion (%) Generated more than $1.6B in FCF $400 $376 $371 $370-390 over the past 5 years, driven by: 199% $336 121% >115% $350 $333 – Strong operational performance 156% 121% $300 $272
Slide 10: Capital Allocation Strategy
Capital Allocation Strategy Major accomplishments since 2013: Capital Allocation since 2013 Returned >$925 million to shareholders – ~$765M via share repurchase (>9M shares) Return of Operational Capital Investments – ~$160M via dividends 42% 31% Spent approximately $700 million in acquisitions
Slide 11: Three Year Targets (2019 - 2021)
Three Year Targets (2019 - 2021) 5 - 7% Total Sales CAGR 17% Adjusted Operating Margin(1) – Maintain top-quartile status vs. peer group – Continue to invest in CW’s future growth 10% Adjusted diluted EPS CAGR(1) – Expect to deliver $8.50 in diluted EPS $1B Cumulative Free Cash Flow Generatio
Slide 12: Appendix: Non-GAAP Financial Results
Appendix Non-GAAP Financial Results The company reports its financial performance in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release refers to "Adjusted" amounts, which are Non- GAAP financial measures described below. We utilize
Slide 13: FY2020E Guidance: Sales Waterfall
FY2020E Guidance: Sales Waterfall (as of February 26, 2020) Guidance: ($ Millions) Total CW End Markets Overall UP 4 - 6% $2,590 - 2,630 Defense Markets UP 8 - 10% Comm’l Markets UP 0 - 2% Defense Markets Commercial Markets 45% 55% Naval Commercial Aerospace Power Generation General Industrial 25% 1
Slide 14: Non-GAAP Reconciliation – 2020 Segment Reorganization
Non-GAAP Reconciliation – 2020 Segment Reorganization 14 | February 27, 2020 | © 2020 Curtiss-Wright
Slide 15: Non-GAAP Reconciliation – 2020 vs. 2019 (Adjusted)
Non-GAAP Reconciliation – 2020 vs. 2019 (Adjusted) 15 | February 27, 2020 | © 2020 Curtiss-Wright