Slide 1: Investor Overview Third Quarter 2016
Investor Overview Third 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 ~$2.15 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
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 Power Generation: Current and future generation nuclear operating rea
Slide 5: AP1000 Program Highlights
AP1000 Program Highlights Background Curtiss-Wright providing reactor coolant pump (RCP) technology on Westinghouse AP1000 nuclear power plants Began shipping RCPs to China in 4Q’15 (2007 contract) Began shipping U.S. RCPs in 1Q’16 (2008 contract) Recent Highlights China: 8 RCPs shipped and
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 | © 2016 Curtiss-Wright
Slide 7: 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 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
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
Slide 10: 2016E Financial Outlook
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 $300 - 320M
Slide 11: ONE Curtiss-Wright
ONE Curtiss-Wright Organic Sales Growth Operating Margin Expansion Earnings and Cash Flow Working Capital Management Growth Balanced Capital Allocation Delivering Long-Term Shareholder Value 11 | © 2016 Curtiss-Wright
Slide 12: Appendix
Appendix 12 | © 2016 Curtiss-Wright
Slide 13: 2016E End Market Sales Outlook
2016E End Market Sales Outlook*(Guidance as of July 27, 2016) Updated (in blue) FY2016E FY2016E % of Total (Prior) (Current) Sales Aero Defense 1 - 3% Flat 14% Ground Defense 4 - 6% (2 - 4%) 4% Naval Defense 0 - 2% No change 19% Total Defense Up 2% to 4% Flat 37% Including Other Defense Commercial A
Slide 14: 2016 End Market Sales Waterfall
2016 End Market Sales Waterfall (Guidance as of July 27, 2016) Updated ($ 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