Slide 1: Q4 2021 Earnings Conference Call
Q4 2021 EARNINGS CONFERENCE CALL Listen-Only dial-in numbers: Conference Call Replay: FEBRUARY 24, 2022 (844) 220-4970 (domestic) (855) 859-2056 (domestic) (262) 558-6349 (international) (404) 537-3406 (international) Conference ID: 1619366 Conference ID: 1619366 Q4 2021 Earnings Presentation
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: Solid Finish to 2021 Ensures Curtiss-Wright Is Well Positioned for 2022
SOLID FINISH TO 2021 ENSURES CURTISS-WRIGHT IS WELL POSITIONED FOR 2022 Fourth Quarter 2021 Highlights FY2021 Highlights ▪ Sales increased 2% overall ▪ Sales up 7%; Double-digit growth in Operating Income, – Strength of combined portfolio minimized supply chain impacts Diluted EPS and New Orders – A
Slide 4: Fourth Quarter 2021 Financial Review
FOURTH QUARTER 2021 FINANCIAL REVIEW Q4’21 Q4’20 Chg vs. ($ in millions) Adjusted Adjusted Q4’20 Key Drivers Aerospace & Industrial $208 $192 8% ▪ Solid growth in comm’l aero (narrowbody OEM), industrial (vehicles) and defense (fighter jets) ▪ Strong contribution from PacStar acquisition and higher
Slide 5: 2022 End Market Sales Growth Guidance
2022 END MARKET SALES GROWTH GUIDANCE (As of February 23, 2022) 2022E Growth 2022E vs 2021 % Sales Expecting Solid Organic Growth in All A&D and Commercial Markets Aerospace Defense 0% - 2% 18% ▪ Favorable growth on C5/ISR programs; Partially offset by Lower F-35 Ground Defense 2% - 4% 9% ▪ Higher t
Slide 6: 2022 Financial Guidance
2022 FINANCIAL GUIDANCE (As of February 23, 2022) % Change ($ in millions) 2022E Adjusted vs 2021 Aerospace & Industrial $805 - 825 4% - 6% ▪ Strong growth in Comm’l Aero and General Industrial markets; part. offset by lower F-35 ▪ A&D sales growth weighted to H2; Caution remains on supply chain Def
Slide 7: 2022 Financial Guidance
2022 FINANCIAL GUIDANCE (As of February 23, 2022) % Change ($ in millions, except EPS) 2022E Adjusted vs 2021 Total Sales $2,530 - 2,580 3% - 5% Total Operating Income $432 - 446 3% - 6% Other Income $17 - 18 ▪ Higher Discount Rates Interest Expense ($39 - 40) Benefit of Record $350M in ‘21 Share Re
Slide 8: Revitalizing Curtiss-Wright's Long-Term Opportunity to Support AP1000 Program
REVITALIZING CURTISS-WRIGHT’S LONG-TERM OPPORTUNITY TO SUPPORT AP1000 PROGRAM • Secured Westinghouse’s commitment to Curtiss-Wright RCP technology in future AP1000 power plants for their next multi-unit project in Eastern Europe – Potentially opens vast opportunity to new AP1000 plants, including in
Slide 9: Delivering Value Through M&A...While Moving Past Legacy Matters
DELIVERING VALUE THROUGH M&A…WHILE MOVING PAST LEGACY MATTERS Phönix Group Integration Going Very Well Successfully Divested German Valves business ▪ Enhancing COTS value proposition with increased breadth of embedded computing ▪ Acquired in 2013 portfolio; Addition of proprietary software ▪ Unable
Slide 10: Acquisition of Safran's Arresting Systems Business Expands Global Defense Portfolio
ACQUISITION OF SAFRAN’S ARRESTING SYSTEMS BUSINESS EXPANDS GLOBAL DEFENSE PORTFOLIO ▪ Jan’22: Announced Acquisition of Safran Aerosystems Arresting Company Purchase Price $240M (cash) – A leading supplier of mission-critical, fixed-wing military aircraft arresting systems – Strong global installed b
Slide 11: Curtiss-Wright Is Well Positioned to Deliver Profitable Growth in 2022
CURTISS-WRIGHT IS WELL POSITIONED TO DELIVER PROFITABLE GROWTH IN 2022 ▪ Sales growth of 3% - 5%, driven by increases in all A&D and Commercial markets – Remain cautious on supply chain and impact of Continuing Resolution in Defense ▪ Continued Operating Margin expansion, Expect 10 - 30 bps increase
Slide 12: Appendix
Appendix Q4 2021 Earnings Presentation 12
Slide 13: Non-GAAP Financial Results
NON-GAAP FINANCIAL RESULTS The Corporation supplements its financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. Curtiss-Wright believes that these Adjusted (non-GAAP) measures provide investors with improved transpar
Slide 14: Fourth Quarter 2021: End Market Sales Growth
FOURTH QUARTER 2021: END MARKET SALES GROWTH Q4’21 Q4’20 Chg vs. ($ in Millions) Key Drivers Adjusted Adjusted Q4’20 Lower defense electronics sales on various programs, as certain revenues Aerospace Defense $125 $131 (5%) shifted into 2022; Partially offset by higher F-35 sales Ground Defense $62 $
Slide 15: 2021 End Market Sales Waterfall
FY’21 Adjusted: 2021 END MARKET SALES WATERFALL Overall UP 7% A&D Markets UP 8% Total 2021 CW End Markets Comm’l Markets UP 6% $2.469B Aerospace & Defense Markets Commercial Markets 67% $1.64B 33% $0.82B Naval Commercial Aerospace Power & Process General Industrial 29% 11% 18% 15% Pumps / Valves / S
Slide 16: 2022E End Market Sales Waterfall
FY’22 Adjusted Guidance: 2022E END MARKET SALES WATERFALL (as of February 23, 2022) Overall UP 3 - 5% A&D Markets UP 2 - 4% Total 2022 CW End Markets Comm’l Markets UP 4 - 6% $2.53B - 2.58B Aerospace & Defense Markets Commercial Markets 66% $1.69B 34% $0.86B Naval Commercial Aerospace Power & Proces
Slide 17: Non-GAAP Reconciliation – 2022 vs 2021 (Adjusted)
NON-GAAP RECONCILIATION – 2022 VS 2021 (ADJUSTED) Q4 2021 Earnings Presentation 17