Curtiss-wright Corporation · NYSE:CW

Curtiss-wright — Q1 2016 Earnings Presentation

18 slides from Curtiss-wright's earnings presentation, 2016

1. Slide 1: Investor Overview First Quarter 2016

   Investor Overview First Quarter 2016 NYSE: CW 1 | © 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 web site from one to twelve months following the initial presentation, but content will not be updated to reflect

3. Slide 3: Curtiss-Wright Corporation

   Curtiss-Wright Corporation  ~$2.2 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: Leadership Position in Growing Markets

   Leadership Position in Growing Markets General  Industrial: On- and off-road commercial Industrial Defense vehicles; Industrial valves (25%) (37%)  Commercial Aerospace: Leverage ramp up in OEM aircraft production rates  Power Generation: Current and future generation nuclear operating reactors 

5. Slide 5: AP1000 Program Highlights and Outlook

   AP1000 Program Highlights and Outlook  Curtiss-Wright providing reactor coolant pump (RCP) technology on Westinghouse AP1000 power plant  Successfully concluded final design modifications and reached full qualification of RCP design in 2015  Began shipping RCPs to China in 4Q’15 (2007 contract) 

6. Slide 6: Long-Term Financial Goals

   Long-Term Financial Goals 3-5% Organic Sales Growth >14% Operating Margin 12% Return on Invested Capital >100% Free Cash Flow Conversion Top Quartile Performance in our Peer Group 6 | © 2016 Curtiss-Wright

7. Slide 7: Solid Margin Expansion

   Solid Margin Expansion 14.0% - 14.2%  Leveraging the benefits of 13.3% ONE Curtiss-Wright 12.6% – Lean/Supply Chain – Shared Services – Consolidations 9.3% – Shift to Low Cost Economies – Segment Focus  Operational and productivity improvement initiatives  Steady organic sales growth 2013 Reporte

8. Slide 8: Strong Free Cash Flow Generation

   Strong Free Cash Flow Generation $ in millions $280 - 300  Universal focus on FCF $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

   Balanced Capital Allocation  Committed to steady return of capital to shareholders – $300M in share repurchases in 2015 Return of Capital – At least $100M in total share repurchases expected in FY’16  Utilize free cash flow for bolt-on acquisitions Operational Acquisitions Requirements  Internal

10. Slide 10: 2016E Financial Outlook (Guidance as of February 24, 2016)

    2016E Financial Outlook (Guidance as of February 24, 2016) FY2015 FY2016E Change vs. 2015 Pro Forma (Current) Sales $2,186M $2,170 - 2,220 Down 1% to Up 1% Operating Income $291 $304 - 315 5 - 8% CW Margin 13.3% 14.0% - 14.2% +70 - 90 bps Diluted EPS $3.74 $4.00 - 4.15 7 - 11% Free Cash Flow $272M $

11. Slide 11: ONE Curtiss-Wright

    ONE Curtiss-Wright Organic Sales Growth Operating Margin Expansion Earnings and Cash Flow Working Capital Management Growth Balanced Capital Allocation Delivering Long-Term Shareholder Value 11 | © 2016 Curtiss-Wright

12. Slide 12: Appendix

    Appendix 12 | © 2016 Curtiss-Wright

13. Slide 13: 2015 Sales by Segment vs. End Market (1)

    2015 Sales by Segment vs. End Market (1) Commercial / Industrial Segment Power Segment General Commercial Power Naval Industrial Aerospace Generation Defense 48% 30% 67% 33% Aerospace Defense 9% Naval Defense Segment Power Defense Aerospace Generation 7% Naval Defense 6% Defense 44% 27% Ground Defen

14. Slide 14: 2015 Sales by Segment vs. End Market (2)

    2015 Sales by Segment vs. End Market (2) General Industrial (48%): Commercial / Industrial Segment  Industrial vehicles (on-highway, off-highway, medical mobility) General Commercial  Industrial valves (O&G, chemical, petrochemical) Industrial Aero 48%  Surface Tech services (peening, coatings, 3

15. Slide 15: 2015 Sales by Segment vs. End Market (3)

    2015 Sales by Segment vs. End Market (3) Defense Segment Aerospace Defense (44%):  Commercial Off-the-Shelf (COTS) embedded computing products Aerospace Defense Naval  Avionics and electronics; flight test equipment 44% Defense 27%  Aircraft data management solutions Naval Defense (27%):  COTS e

16. Slide 16: 2015 Sales by Segment vs. End Market (4)

    2015 Sales by Segment vs. End Market (4) Power Segment Power Generation (67%):  Commercial nuclear aftermarket products and services Power Naval  AP1000 reactor coolant pumps (RCPs) and Generation Defense 67% 33% other new build equipment  Small modular reactors (SMRs)  Fossil power generation e

17. Slide 17: 2016E End Market Sales Outlook (Guidance as of February 24, 2016)

    2016E End Market Sales Outlook* (Guidance as of February 24, 2016) % of Total FY2016E Sales Aero Defense 1 - 3% 14% Ground Defense 4 - 6% 4% Naval Defense 0 - 2% 18% Total Defense Up 2% to 4% 37% Including Other Defense Commercial Aero (2 - 4%) 18% Power Generation 4 - 6% 20% Total Oil & Gas General

18. Slide 18: 2016 End Market Sales Waterfall (Guidance as of February 24, 2016)

    2016 End Market Sales Waterfall (Guidance as of February 24, 2016) ($ Millions) Total CW End Markets $2,170 - 2,220 Defense Markets Commercial Markets 37% 63% Naval Commercial Aerospace Power Generation General Industrial 18% 18% 20% 25% Aerospace Aircraft Equipment Aftermarket Nuclear Industrial Ve

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