Curtiss-wright Corporation · NYSE:CW

Curtiss-wright — Q2 2019 Earnings Presentation

15 slides from Curtiss-wright's earnings presentation, Aug 1, 2019

1. Slide 1: 2Q 2019 Earnings Conference Call

   2Q 2019 Earnings Conference Call August 1, 2019 NYSE: CW 1 | August 1, 2019 | © 2019 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 website from one to twelve months following the initial presentation, but content will not be updated to reflect n

3. Slide 3: 2019 Second Quarter Performance and Full-Year Business Outlook

   2019 Second Quarter Performance and Full-Year Business Outlook Second Quarter 2019 Highlights  Net Sales up 3% overall (3% organic) – Strong growth in defense markets, up 11%, including contribution from TCG; 10% organic growth  Adjusted Operating Margin of 16.8% driven by improved profitability i

4. Slide 4: Second Quarter 2019 End Market Sales Growth

   Second Quarter 2019 End Market Sales Growth Key Drivers 2Q’19 % of Total Defense Markets: Up 11% overall, 10% organic Change Sales  Aerospace Defense: Higher F-35 sales and benefit of TCG, partially offset by lower defense electronics Aero Defense 5% 16% revenues on various programs Ground Defense

5. Slide 5: Second Quarter 2019 Adjusted Operating Income / Margin Drivers

   Second Quarter 2019 Adjusted Operating Income / Margin Drivers Change 2Q’19 2Q’18 vs. 2018 ($ in millions) Adjusted(1) Adjusted(1) Adjusted(1) Key Drivers Commercial / Industrial $56.2 $51.7 9%  Includes gain on sale of building  Benefit of Op margin improvement initiatives Margin 17.7% 16.6% 110

6. Slide 6: 2019E End Market Sales Growth (Guidance as of July 31, 2019)

   2019E End Market Sales Growth (Guidance as of July 31, 2019) Updated 2019E 2019E 2019E (Prior) (Current) % of Total Sales Aero Defense 8 - 10% 9 - 11% 16% Ground Defense 5 - 7% 1 - 2% 4% Naval Defense 8 - 10% No change 21% Total Defense 8 - 10% No change 41% Commercial Aero 4 - 6% No change 17% Powe

7. Slide 7: 2019E Financial Outlook (Guidance as of July 31, 2019)

   2019E Financial Outlook (Guidance as of July 31, 2019) Re-Affirm Full-Year (1) (1) ($ in millions) 2019E Adjusted 2019E Change vs 2018 Adjusted Commercial / Industrial $1,255 - 1,275 4 - 5% Defense $575 - 585 4 - 5% Power $680 - 690 5 - 7% Total Sales $2,510 - 2,550 4 - 6% Commercial / Industrial $1

8. Slide 8: 2019E Financial Outlook (Guidance as of July 31, 2019)

   2019E Financial Outlook (Guidance as of July 31, 2019) Re-Affirm Full-Year 2019E 2019E (2) (2) ($ in millions) Reported Adjustments Adjusted (1) Free Cash Flow $310 - 320 $20 $330 - 340 (1) Free Cash Flow Conversion ~105% ~110% Capital Expenditures $75 - 85 $75 - 85 Depreciation & Amortization $100

9. Slide 9: Assessing Impact of Various External Factors

   Assessing Impact of Various External Factors Level of Topic Impact to CW concern Boeing LTA  Recently signed agreement for actuation equipment None Extension Tariffs  Pertaining to 2015 CAP1000 order, tariffs not an None (AP1000) issue; licensing granted to ship all RCPs to China  Guided for ($4M

10. Slide 10: Remain on Track to Deliver Strong 2019 Results

    Remain on Track to Deliver Strong 2019 Results  Higher sales in all end markets driving overall growth of 4 - 6%  Continued operating margin expansion, up 40 - 50 bps – Adjusted operating margin of 16.2% - 16.3% – Driven by improved sales outlook and benefit of ongoing margin improvement initiativ

11. Slide 11: Appendix

    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 a

12. Slide 12: FY2019E End Market Sales Waterfall (Guidance as of July 31, 2019)

    FY2019E End Market Sales Waterfall (Guidance as of July 31, 2019) ($ Millions) Total CW End Markets Guidance: $2,510 - 2,550 UP 4 - 6% Defense Markets up 8-10% Comm’l Markets up 1-3% Defense Markets Commercial Markets 41% 59% Naval Commercial Aerospace Power Generation General Industrial 21% 17% 17%

13. Slide 13: Non-GAAP Reconciliation – Organic Results

    Non-GAAP Reconciliation – Organic Results Three Months Ended June 30, 2019 vs. 2018 Commercial/Industrial Defense Power Total Curtiss-Wright Operating Operating Operating Operating Sales income Sales income Sales income Sales income Organic 3% 8% (3%) (25%) 9% 57% 3% 3% Acquisitions 0% 0% 3% 0% 0% 0

14. Slide 14: Non-GAAP Reconciliations – 2Q 2019 Results

    Non-GAAP Reconciliations – 2Q 2019 Results (In millions, except EPS) 2Q-2019 2Q-2018 Change Sales $ 639.0 $ 620.3 3% Reported operating income (GAAP) $ 105.7 $ 102.1 4% Adjustments (1) 2.0 7.0 - Adjusted operating income (Non-GAAP) $ 107.7 $ 109.1 (1%) Adjusted operating margin (Non-GAAP) 16.8% 17.6

15. Slide 15: Non-GAAP Reconciliation – 2019 vs. 2018 Adjusted

    Non-GAAP Reconciliation – 2019 vs. 2018 Adjusted CURTISS-WRIGHT CORPORATION 2019 Guidance As of July 31, 2019 (#039;s in millions, except per share data) 2018 2018 2018 2019 2019 2019 (1) (2)(3)(4) (1) (2)(3)(4) Reported Adjustments Adjusted Reported Guidance Adjustments Adjusted Guidance (GAAP) (Non-G

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