Slide 1: Q2 2021 Earnings Conference Call
Q2 2021 EARNINGS CONFERENCE CALL Listen-Only dial-in numbers: AUGUST 4, 2021 (844) 220-4970 (domestic) (262) 558-6349 (international) Conference ID: 6349664 Q2 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: Second Quarter Performance and Full-Year Guidance Highlights
SECOND QUARTER PERFORMANCE AND FULL-YEAR GUIDANCE HIGHLIGHTS Second Quarter 2021 Results FY 2021 Adjusted Guidance ▪ Adjusted Net Sales increased 14% overall ▪ Raised full-year guidance for Sales, Operating Income, – A&D markets up 11%; Commercial markets up 21% Operating Margin and EPS – Reflects i
Slide 4: Second Quarter 2021 Financial Review
SECOND QUARTER 2021 FINANCIAL REVIEW Q2’21 Q2’20 Chg vs. ($ in millions) Adjusted Adjusted Q2’20 Key Drivers Aerospace & Industrial $194 $166 17% ▪ Strong growth in industrial vehicle sales (>40%) ▪ Strong contribution from PacStar acquisition Defense Electronics $163 $140 17% ▪ Reduced YOY organic
Slide 5: 2021E End Market Sales Growth
2021E END MARKET SALES GROWTH (Guidance as of August 3, 2021) Updated (in blue) 2021E Growth 2021E Growth vs 2020 vs 2020 2021E (Prior) (Current) % Sales 2021 Key Drivers Aerospace Defense 2% - 4% 2% - 4% 19% ▪ Favorable growth on C5ISR (F-35) and helicopter programs Ground Defense 100% - 105% 100%
Slide 6: 2021E Financial Outlook
2021E FINANCIAL OUTLOOK (Guidance as of August 3, 2021) Updated (in blue) 2021E Adjusted (1) 2021E Adjusted (1) 2021E Change vs ($ in millions) (Prior) (Current) 2020 Adjusted (1,2) ▪ Strong rebound in general industrial markets Aerospace & Industrial $745 - 760 $760 - 775 3% - 5% ▪ Commercial aeros
Slide 7: 2021E Financial Outlook
2021E FINANCIAL OUTLOOK (Guidance as of August 3, 2021) Updated (in blue) 2021E Adjusted (1) 2021E Adjusted (1) ($ in millions, except EPS) (Prior) (Current) Total Operating Income(2) $408 - 418 $411 - 421 Solid growth, up 9% - 12% Other Income/(Expense) $15 - 17 $16 - 17 Interest Expense ($41 - 42)
Slide 8: Observations Since May 2021 Investor Day
OBSERVATIONS SINCE MAY 2021 INVESTOR DAY ▪ Release of initial FY22 Defense Budget provides optimism and continued support for platforms most critical to CW ▪ Reiterate 2023 Targets: Long-term guidance reflects both Top-line and Bottom-line acceleration – New Operational Growth Platform (OGP) provide
Slide 9: Positioned to Deliver Strong 2021 Results
POSITIONED TO DELIVER STRONG 2021 RESULTS Revenue Growth Adj. Operating Margin Adj. Diluted EPS Robust FCF Generation 7% - 9% 16.7% - 16.8% $7.15 - 7.35 $330 - 360M KEY TAKEAWAYS • Organic growth 2% - 4% • Solid growth in Operating Income, • Reflects 9% - 12% growth • FCF conversion ~116%; • A&D Mar
Slide 10: Appendix
Appendix Q2 2021 Earnings Presentation 10
Slide 11: Non-GAAP Financial Results
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 number o
Slide 12: Second Quarter 2021 End Market Sales Growth
SECOND QUARTER 2021 END MARKET SALES GROWTH Q2’21 % of Total Key Drivers Change Sales Aerospace & Defense Markets: Aerospace Defense (9%) 16% ▪ Aerospace Defense: Lower defense electronics revenues on C5ISR and fighter jet programs (timing) Ground Defense 146% 8% ▪ Ground Defense: Higher tactical ba
Slide 13: 2021E End Market Sales Waterfall
FY’21 Guidance: 2021E END MARKET SALES WATERFALL (as of August 3, 2021) Overall UP 7 - 9% A&D Markets UP 7 - 9% Total 2021 CW End Markets Comm’l Markets UP 6 - 8% $2.465B - 2.515B Aerospace & Defense Markets Commercial Markets 66% $1.65B 34% $0.8B Naval Commercial Aerospace Power & Process General I
Slide 14: Non-GAAP Reconciliations – Q2 2021 Results
NON-GAAP RECONCILIATIONS – Q2 2021 RESULTS (In millions, except EPS) Q2-2021 Q2-2020 Change Net sales $ 621.5 $ 550.0 13% Adjustments (1) (12.1) (17.3) Adjusted net sales $ 609.4 $ 532.7 14% Reported operating income (GAAP) $ 94.6 $ 55.3 71% Adjustments (1) 0.5 21.2 Adjusted operating income (Non-GA
Slide 15: Non-GAAP Reconciliation – Organic Results
NON-GAAP RECONCILIATION – ORGANIC RESULTS Three Months Ended June 30, 2021 vs. 2020 Aerospace & Industrial Defense Electronics Naval & Power Total Curtiss-Wright Operating Operating Operating Operating Sales income Sales income Sales income Sales income Organic 10% 174% (6%) 12% 10% 24% 6% 46% Acqui
Slide 16: Non-GAAP Reconciliation – 2020 vs 2021 (Adjusted)
NON-GAAP RECONCILIATION – 2020 VS 2021 (ADJUSTED) Q2 2021 Earnings Presentation 16