Slide 1: 2Q 2015 Earnings Conference Call
CURTISS - WRIGHT 2Q 2015 Earnings eonreente Call July 30, 2045 1 | July20, 2015 | ©2015 Curtiss-Mright NYSE: CW
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 Second Quarter 2015 Results
Overview of Second Quarter 2015 Results = Diluted EPS of $0.83, ahead of expectations = Net Sales decreased 4% (Down 2% organic) = Operating Income decreased 9% = 2Q Operating Margin down 70 bps to 12.0% — Impacts of AP1000 program costs in Power segment — Offset by: Solid organic growth in Defense
Slide 4: 2Q 2015 End Market Sales
2Q 2015 End Market Sales General Industrial 28% Commercial Aero 18% Naval Defense Power 19% Generation 17% Aero & Ground Defense 18% Notes: Percentages in chartrelat o Second Quarter 2015 sakes. ‘Al gues presented on a continuing operations bass 4 | July 30, 2015 | ©2015 Curtiss-Wright 2Q'15 Results
Slide 5: 2Q / YTD 2015 Operating Income / Margin Drivers
2Q/ YTD 2015 Operating Income / Margin Drivers Change Change vs. 2014 YTD'14 vs. 2014 Pile $45.3 $45.8 (1%) $88.5 $84.2 ; ia 14.9% 18.6% +30 bps 14.7% 13.7% aie Defense 24.4 18.0 35% 424 33.8 26% Margin 20.4% 15.2% 4520bps | 18.2% 18.6% +360 bps Power 14 149 (20%) 21.0 29.41 (28%) Margin 1.2% 109% (
Slide 6: 2015E End Market Sales Outlook (Guidance as of July 29, 2015)
2015E End Market Sales Outlook (cuidance as of July 29, 2015) FY2015E FY2015E % of Total (Prior) (Current) Sales Aero Defense (2)- 2% 2-6% 13% Ground Defense 26 - 30% 13-17% 4% Naval Defense (2) - 2% No change 17% NEI) ice 2-4% No change 34% Commercial Aero (2) -2% No change 19% Power Generation (2)
Slide 7: 2015E End Market Sales Waterfall (Guidance as of July 29, 2015)
2015E End Market Sales Waterfall (euidance as of July 29, 2015) Total CW End Markets {$Mitlions) $2,260 - 2,300 Commercial Markets Defense Markets Power Gen Gen. Industrial Aftermarket Industrial Valves Aerospace New Build Industrial Vehicles Non-Nuclear ‘Surface Tech services Sensors and Controls
Slide 8: 2015E Financial Outlook (Guidance as of July 29, 2015)
2015E Financial Outlook (Guidance as of July 29, 2015) Conc FY2015E FY2015E Growth % (Prior) (Current) vs 2014 Total Sales $2,280 - 2,330 $2,250 - 2,300 1-3% Commercial / Industrial $1,265 - 1,285 $1,235 - 1,255 1-2% Defense $500 - 515 No change 2-5% Power $515 - 530 No change (2)- 1% Total Operatin
Slide 9: 2015E Financial Outlook (Guidance as of July 29, 2015)
2015E Financial Outlook (Guidance as of July 29, 2015) FY2015E FY2015E (Prior) (Current) Interest Expense $37 - 38M $36 - 37M Effective Tax Rate ~32% 31.5% - 31.75% Diluted EPS $3.80 - 3.90 No change Free Cash Flow $100 - 120M No change Adjusted Free Cash Flow @ $245 - 265M No change Free Cash Flow
Slide 10: 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 = 75 Percentile: 14.2% Operating Margin Adva
Slide 11: Balanced Capital Allocation
Balanced Capital Allocation = Committed to steady return of capital to shareholders — ~$100M in 1H’15 share repurchases Return of — Greater than $200 million in total Capital share repurchases expected in 2015 = Utilize free cash flow for bolt-on acquisitions Operational oa A ae pSnvenets Acquisitio
Slide 12: Outlook for 2015 and Closing Comments
Outlook for 2015 and Closing Comments = Expect improved 2H’15 sales and operating income to drive strong, double-digit growth in diluted EPS — Aided by steady share repurchases = Ontrack for solid operating margin expansion — Driven by operational improvement and cost reduction initiatives — Long-te