Curtiss-wright Corporation · NYSE:CW

Curtiss-wright — Gabelli 22nd Annual Aircraft & Connectivity Conference (September 2016)

14 slides from Curtiss-wright's conference presentation, Sep 8, 2016

  1. Slide 1: Gabelli 22nd Annual Aircraft & Connectivity Conference

    Gabelli 22nd Annual Aircraft & Connectivity Conference Jim Ryan, Sr. Director, Investor Relations NYSE: CW 1 | September 8, 2016 | © 2016 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: Curtiss-Wright Corporation

    Curtiss-Wright Corporation  ~$2.15 billion in 2016E sales Global, diversified industrial company  Leadership positions in providing highly growing markets engineered products  Enhancing safety, reliability and services to and performance Aerospace, Defense and Industrial Markets  8,400 employees

  4. Slide 4: Broad End Market Diversification

    Broad End Market Diversification  Industrial: On- and off-road commercial vehicles; Industrial valves General Commercial Industrial Aerospace  Commercial Aerospace: Leverage (25%) (18%) ramp up in OEM aircraft production rates  Defense: – Naval: Nuclear submarine and aircraft carrier programs – A

  5. Slide 5: AP1000 Program Highlights

    AP1000 Program Highlights Background  Curtiss-Wright providing reactor coolant pump (RCP) technology on Westinghouse AP1000 nuclear power plants  Awarded >$500M in contracts for plants in China (16 RCPs in 2007) and U.S. (16 RCPs in 2008) Recent Highlights  China: 10 RCPs shipped and 8 RCPs insta

  6. Slide 6: Long-Term Financial Goals

    Long-Term Financial Goals 3-5% Organic Sales Growth >14% Operating Margin 12% Return on Invested Capital >125% Free Cash Flow Conversion Top Quartile Performance in our Peer Group 6 | September 8, 2016 | © 2016 Curtiss-Wright

  7. Slide 7: Strategic Focus on Margin Improvement

    Strategic Focus on Margin Improvement  Leveraging the benefits of 14.2% - 14.4% ONE Curtiss-Wright 13.3% 12.6%  Ongoing operational and productivity improvement initiatives  Reclassifying & simplifying 9.3% categories: – Operational Excellence – Global Footprint – Corporate Efficiency 2013 Report

  8. Slide 8: Strong Free Cash Flow Generation

    Strong Free Cash Flow Generation $ in millions  Universal focus on FCF $300 - 320 $265 $272  More efficient execution and cash flow management $166  Goal to reduce working capital as a % of sales – tied to compensation  Focus on highest return 2013 2014 2015 2016E CapEx investments Notes: Free c

  9. Slide 9: Balanced Capital Allocation Strategy

    Balanced Capital Allocation Strategy  Committed to steady return of capital to shareholders – At least $100M in expected share repurchases in 2016 Return of Capital – $300M in 2015 share repurchases – Steady dividend payout  Growth through strategic Operational acquisitions Acquisitions Requiremen

  10. Slide 10: 2016E Financial Outlook (Guidance as of July 27, 2016)

    2016E Financial Outlook (Guidance as of July 27, 2016) FY2015 FY2016E Change vs. 2015 Pro Forma (Current) Sales $2,186M $2,170 - 2,220 (1 - 3%) Operating Income $291 $301 - 313 4 - 8% CW Margin 13.3% 14.2% - 14.4% +90 - 110 bps Diluted EPS $3.74 $4.00 - 4.15 7 - 11% Free Cash Flow $272M $300 - 320M

  11. Slide 11: Delivering Long-Term Shareholder Value

    Delivering Long-Term Shareholder Value Leading Market Positions Operating Margin Expansion Earnings and Cash Flow Working Capital Management Growth Balanced Capital Allocation One Curtiss-Wright 11 | September 8, 2016 | © 2016 Curtiss-Wright

  12. Slide 12: Appendix

    Appendix 12 | September 8, 2016 | © 2016 Curtiss-Wright

  13. Slide 13: 2016E End Market Sales Outlook (Guidance as of July 27, 2016)

    2016E End Market Sales Outlook*(Guidance as of July 27, 2016) Updated (in blue) FY2016E FY2016E % of Total (Prior) (Current) Sales Aero Defense 1 - 3% Flat 14% Ground Defense 4 - 6% (2 - 4%) 4% Naval Defense 0 - 2% No change 19% Total Defense Up 2% to 4% Flat 37% Including Other Defense Commercial A

  14. Slide 14: 2016 End Market Sales Waterfall (Guidance as of July 27, 2016)

    2016 End Market Sales Waterfall (Guidance as of July 27, 2016) Updated ($ Millions) Total CW End Markets $2,120 - $2,170 Defense Markets Commercial Markets 37% 63% Naval Commercial Aerospace Power Generation General Industrial 19% 18% 20% 25% Aerospace Aircraft Equipment Aftermarket Nuclear Industri

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