Curtiss-wright Corporation · NYSE:CW

Curtiss-wright — Q3 2019 Earnings Presentation

15 slides from Curtiss-wright's earnings presentation, Oct 31, 2019

1. Slide 1: 3Q 2019 Earnings Conference Call

   3Q 2019 Earnings Conference Call October 31, 2019 NYSE: CW 1 | October 31, 2019 | © 2019 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 website from one to twelve months following the initial presentation, but content will not be updated to reflect n

3. Slide 3: Third Quarter Performance and Full-Year 2019 Guidance

   Third Quarter Performance and Full-Year 2019 Guidance Third Quarter 2019 Highlights  Net Sales of $615 million, up 3% – Strong growth in defense markets, up 17% (16% organic), partially offset by lower power generation and general industrial revenues  Adjusted Operating Income up 9%; Adjusted Oper

4. Slide 4: Third Quarter 2019 End Market Sales Growth

   Third Quarter 2019 End Market Sales Growth Key Drivers 3Q’19 % of Total Defense Markets: Up 17% overall, 16% organic Change Sales  Aerospace Defense: Higher COTS embedded Aero Defense 18% 18% computing revenues on F-35 and helicopter programs  Ground Defense: Lower revenues on various Ground Defen

5. Slide 5: Third Quarter 2019 Adjusted Operating Income / Margin Drivers

   Third Quarter 2019 Adjusted Operating Income / Margin Drivers Change 3Q’19 3Q’18 vs. 2018 ($ in millions) Adjusted(1) Adjusted(1) Adjusted(1) Key Drivers Commercial / Industrial $48.1 $44.8 7%  Higher revenues and favorable absorption in defense Margin 15.8% 15.2% 60 bps  Partially offset by highe

6. Slide 6: 2019E End Market Sales Growth (Guidance as of October 30, 2019)

   2019E End Market Sales Growth (Guidance as of October 30, 2019) Updated (in blue) 2019E 2019E 2019E (Prior) (Current) % of Total Sales Aero Defense 9 - 11% No change 16% Ground Defense 1 - 2% No change 4% Naval Defense 8 - 10% 14 - 16% 23% Total Defense 8 - 10% 10 - 12% 43% Commercial Aero 4 - 6% No

7. Slide 7: 2019E Financial Outlook (Guidance as of October 30, 2019)

   2019E Financial Outlook (Guidance as of October 30, 2019) Updated (in blue) 2019E Adjusted (1) Operational 2019E Adjusted (1) 2019E Change vs ($ in millions) (Prior) Changes (Current) 2018 Adjusted (1) Commercial / Industrial $1,255 - 1,275 ($10 - 15) $1,245 - 1,260 3 - 4% Defense $575 - 585 $575 -

8. Slide 8: 2019E Financial Outlook (Guidance as of October 30, 2019)

   2019E Financial Outlook (Guidance as of October 30, 2019) Updated (in blue) 2019E Adjusted Operational 2019E Adjusted (1) 2019E Change vs ($ in millions, except EPS) (Prior) Changes (Current) 2018 Adjusted (1) Total Operating Income $406 - 415 $406 - 415 6 - 9% Other Income/(Expense) $19 $2 $21 Inte

9. Slide 9: 2019E Financial Outlook (Guidance as of October 30, 2019)

   2019E Financial Outlook (Guidance as of October 30, 2019) Updated (in blue) 2019E 2019E 2019E Reported Reported Adjusted (2) (2) ($ in millions) (Prior) (Current) Adjustments (Current) (1) Free Cash Flow $310 - 320 $320 - 330 $20 $340 - 350 Free Cash Flow (1) ~102% ~105% ~111% Conversion Capital Exp

10. Slide 10: Remain on Track to Deliver Profitable Growth in 2019

    Remain on Track to Deliver Profitable Growth in 2019  Strong defense revenues driving overall sales growth of 4 - 5%  Continued operating margin expansion, up 50 - 60 bps – Adjusted operating margin of 16.3% - 16.4% – Driven by solid defense revenues and benefit of ongoing margin improvement initi

11. Slide 11: Appendix: Non-GAAP Financial Results

    Appendix 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

12. Slide 12: FY2019E End Market Sales Waterfall (Guidance as of October 30, 2019)

    FY2019E End Market Sales Waterfall (Guidance as of October 30, 2019) ($ Millions) Total CW End Markets Guidance: $2,500 - 2,535 UP 4 - 5% Defense Markets up 10-12% Comm’l Markets down 0-2% Defense Markets Commercial Markets 43% 57% Naval Commercial Aerospace Power Generation General Industrial 23% 1

13. Slide 13: Non-GAAP Reconciliation – Organic Results

    Non-GAAP Reconciliation – Organic Results Three Months Ended September 30, 2019 vs. 2018 Commercial/Industrial Defense Power Total Curtiss-Wright Operating Operating Operating Operating Sales income Sales income Sales income Sales income Organic 4% 7% 6% 12% (1)% (7)% 3% 8% Acquisitions 0% 0% 3% 1%

14. Slide 14: Non-GAAP Reconciliations – 3Q 2019 Results

    Non-GAAP Reconciliations – 3Q 2019 Results (In millions, except EPS) 3Q-2019 3Q-2018 Change Sales $ 614.9 $ 595.4 3% Reported operating income (GAAP) $ 105.6 $ 97.0 9% Adjustments (1) 1.6 1.3 - Adjusted operating income (Non-GAAP) $ 107.2 $ 98.3 9% Adjusted operating margin (Non-GAAP) 17.4% 16.5% 90

15. Slide 15: Non-GAAP Reconciliation – 2019 vs. 2018 Adjusted

    Non-GAAP Reconciliation – 2019 vs. 2018 Adjusted CURTISS-WRIGHT CORPORATION 2019 Guidance As of October 30, 2019 (#039;s in millions, except per share data) 2018 2018 2018 2019 2019 2019 (1) (2)(3)(4) (1) (2)(3)(4) Reported Adjustments Adjusted Reported Guidance Adjustments Adjusted Guidance (GAAP) (No

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