Slide 1: 3Q 2016 Earnings Conference Call
3Q 2016 Earnings Conference Call October 27, 2016 NYSE: CW 1 | October 27, 2016 | © 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: Reflection on 2016 Investor Day
Reflection on 2016 Investor Day Shipment of the AP1000 RCPs 3 | October 27, 2016 | © 2016 Curtiss-Wright
Slide 4: 2016 Third Quarter Performance and Business Outlook
2016 Third Quarter Performance and Business Outlook 3Q Highlights Diluted EPS of $1.02, ahead of expectations, reflecting: – Solid profitability in the Defense and Power segments – Benefits of ongoing operational improvement and cost control initiatives Operating Income up 20%; Operating Margin
Slide 5: Third Quarter 2016 End Market Sales
Third Quarter 2016 End Market Sales 3Q’16 Results: 3Q’16 % of Total Defense Markets +2%; Commercial Markets (7%) Change Sales vs. PY Key Drivers: Aero Defense (5%) 15% Aerospace Defense: Lower embedded computing Ground Defense 6% 4% sales on fighter jets and ISR programs Naval Defense 4% 20% G
Slide 6: Third Quarter 2016 Operating Income / Margin Drivers
Third Quarter 2016 Operating Income / Margin Drivers ($ in millions) Change 3Q’16 3Q’15 vs. 2015 Commercial / Industrial $39.1 $40.3 (3%) Margin 14.2% 13.8% 40 bps Defense 28.8 25.5 13% Margin 25.3% 21.7% 360 bps Power 14.1 13.5 4% Margin 12.0% 11.7% 30 bps Total Segments $82.0 $79.3 3% Operating In
Slide 7: 2016E End Market Sales Outlook (Guidance as of October 26, 2016)
2016E End Market Sales Outlook*(Guidance as of October 26, 2016) Updated (in blue) FY2016E FY2016E % of Total (Prior) (Current) Sales Aero Defense Flat No change 14% Ground Defense (2 - 4%) No change 4% Naval Defense 0 - 2% 6 - 8% 20% Total Defense Flat 1 - 3% 38% Including Other Defense Commercial
Slide 8: 2016E Financial Outlook (Guidance as of October 26, 2016)
2016E Financial Outlook* (Guidance as of October 26, 2016) Updated (in blue) FY2016E FY2016E ($ in millions, except EPS) Growth % vs 2015 (Prior) (Current) Commercial / Industrial $1,130 - 1,155 $1,120 - 1,145 (3 - 5%) Defense $475 - 485 No change 0 - 2% Power $515 - 530 No change (2) - 1% Total Sal
Slide 9: 2016E Financial Outlook (Guidance as of October 26, 2016)
2016E Financial Outlook (Guidance as of October 26, 2016) Updated (in blue) ($ in millions) FY2016E FY2016E Growth % (Prior) (Current) vs 2015 Free Cash Flow (1) $300 - 320 No change 10 - 18% Free Cash Flow Conversion(2) 166 - 170% No change Capital Expenditures $45 - 55 No change Depreciation & Amo
Slide 10: Positioned to Deliver Strong 2016 Results
Positioned to Deliver Strong 2016 Results Strong operating margin expansion, up 100 - 120 bps to 14.3 - 14.5%* – Mitigating impact of reduced sales – Benefit of margin improvement and cost control initiatives – Expect to be in top quartile of our peer group Solid growth in diluted EPS, up 7 - 11
Slide 11: Appendix
Appendix 11 | October 27, 2016 | © 2016 Curtiss-Wright
Slide 12: 2016 End Market Sales Waterfall (Guidance as of October 26, 2016)
2016 End Market Sales Waterfall (Guidance as of October 26, 2016) Updated ($ 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
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended September 30, 2016 vs 2015 Commercial/Industrial Defense Power Total Curtiss-Wright Operating Operating Operating Operating Sales Sales Sales Sales income income income income Organic (5%) (6%) (2%) 10% 2% 4% (3%) 17% Acquisitions 0% 0% 0% 0% 0% 0% 0% 0% Fo