Slide 1: Investor Overview Fourth Quarter 2016
Investor Overview Fourth Quarter 2016 NYSE: CW 1 | © 2016 Curtiss-Wright
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: Curtiss-Wright Corporation
Curtiss-Wright Corporation ~$2.14 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
Slide 4: Broad End Market Diversification
Broad End Market Diversification Defense: General Commercial – Aerospace: Embedded computing Industrial Aerospace business supporting C4ISR and EW (25%) (18%) – Ground: International Armored Vehicles – Naval: Nuclear submarine and aircraft carrier programs Commercial Aerospace: Leverage ramp up
Slide 5: 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 5 | © 2016 Curtiss-Wright
Slide 6: Strategic Focus on Margin Improvement
Strategic Focus on Margin Improvement Leveraging the benefits of ONE Curtiss-Wright Ongoing operational and productivity improvement initiatives Reclassifying & simplifying categories: Operational Excellence Global Footprint Corporate Efficiency Supply Chain Consolidations Shared Services Lean
Slide 7: 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
Slide 8: 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 Investment
Slide 9: 2016E Financial Outlook
2016E Financial Outlook (Guidance as of October 26, 2016) FY2015 FY2016E Change vs. 2015 Pro Forma (Current) Sales $2,186M $2,110 - 2,160M (1 - 3%) Operating Income $291M $301 - 313M 4 - 8% CW Margin 13.3% 14.3% - 14.5% +100 - 120 bps Diluted EPS $3.74 $4.00 - 4.15 7 - 11% Free Cash Flow $272M $300
Slide 10: ONE Curtiss-Wright Earnings and Cash
ONE Curtiss-Wright Organic Sales Growth Operating Margin Expansion Earnings and Cash Flow Working Capital Management Growth Balanced Capital Allocation Delivering Long-Term Shareholder Value 10 | © 2016 Curtiss-Wright
Slide 11: Appendix
Appendix 11 | © 2016 Curtiss-Wright
Slide 12: 2016E End Market Sales Outlook
2016E End Market Sales Outlook*(Guidance as of October 26, 2016) Updated (in blue) FY2016E FY2016E % of Total (Prior) (Current) Sales Aero Defense Flat No change 14% Ground Defense (2 - 4%) No change 4% Naval Defense 0 - 2% 6 - 8% 20% Total Defense Flat 1 - 3% 38% Including Other Defense Commercial
Slide 13: 2016 End Market Sales Waterfall
2016 End Market Sales Waterfall (Guidance as of October 26, 2016) Updated ($ Millions) Total CW End Markets $2,110 - 2,160 Defense Markets Commercial Markets 38% 62% Naval Commercial Aerospace Power Generation General Industrial 20% 19% 19% 24% Aerospace Aircraft Equipment Aftermarket Nuclear Indust