2013 Corporate Overview · Geographic Diversification Balanced Market Offering . Pre-4Q...
Transcript of 2013 Corporate Overview · Geographic Diversification Balanced Market Offering . Pre-4Q...
2013 Corporate Overview
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months following the initial presentation, but content will not be updated to reflect new information
that may become available after the original presentation posting. The presentation contains
forward-looking statements including, among other things, management's estimates of future
performance, revenue and earnings, our management's growth objectives and our management's
ability to produce consistent operating improvements. These forward-looking statements are
based on expectations as of the time the statements were made only, and are subject to a number
of risks and uncertainties which could cause us to fail to achieve our then-current financial
projections and other expectations. We undertake no duty to update this information. More
information about potential factors that could affect our business and financial results is included in
our filings with the Securities and Exchange Commission, including our Annual Reports on Form
10-K and Quarterly Reports on Form 10-Q, including, among other sections, under the captions,
"Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of
Operations," which is on file with the SEC and available at the SEC's website at www.sec.gov.
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Why Invest in Curtiss-Wright?
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• Positioned for solid growth organically and through strategic acquisitions
• 5-Year strategic growth objective: 15% CAGR in sales and earnings
• Innovative leader supplying critical technologies that matter
• Long standing customer relationships
• Reputation as a trusted supplier of advanced technology
• Solid financial and operational outlook
High Low Low
High High High
Low
Low
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Curtiss-Wright Strategy – Acquisition
Volume Curtiss-Wright successful at integrating acquisitions
Provides acquisitions with enhanced distribution and more efficient cost structure
High Low Low
High High High
Low
Low
Position Sensors (at Acquisition)
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High Low Low
High High High
Low
Low
Position Sensors (Today)
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#1 in Position Sensor market ● Lowest cost structure in the industry
Annual sensor & controls revenues of approximately $400M
Global Sensors Business
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= Sales / Support office and / or Employee = Rep / Agent / Distributor
= Manufacturing / Engineering
P & G Industrial
$300M
$905M $3B
Current CW Controls Industrial
+ PG Drives
+ Williams Controls
Oil & Gas
$1.26B
$2B
Current Flow Control
Oil & Gas +
Cimarron
O & G, Power Gen, Petrochem
$140M
$240M Current Surface
Technologies +
Gartner
Controls Industrial Flow Oil & Gas
Surface Technologies Select Coatings
Growing our Addressable Market
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Evolving Market Exposure
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Geographic Diversification ● Balanced Market Offering
Pre-4Q Acquisitions
12%
13%
17%
21%
37%
2012 Baseline Forecast
Defense
Oil & Gas
Industrial
Comm Aero
Power Gen
$2,077 M(1)
(1) Excludes approximately $21 million in 2012 sales related to recent acquisitions
Evolving Market Exposure (2013E Guidance as of February 20, 2013)
18%
18%
16%
18%
30%
2013E with Acquisitions
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Geographic Diversification ● Balanced Market Offering
Defense
Oil & Gas
Industrial
Comm Aero
Power Gen
$2,480 - 2,520 M
Why Our Technologies Matter
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• Curtiss-Wright supplies vital technology to a variety of industries
• Leading provider of unique, one-of-a-kind, sole source products
• Reputation for enhancing safety, reliability and performance in harsh operating environments Provider of complex “must-not-fail” applications
• Technologies aimed at #1 or #2 share within their respective markets
Advanced Technology
Defense Electronics Embedded
Computing Modules Embedded
Electronic Systems Defense Platforms
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Curtiss-Wright is industry leader in embedded computing Focused on Commercial Off-the-Shelf (COTS) technology
Advanced Technology
AP1000 Reactor Coolant Pumps
Advanced Reactor Design • AP1000 is only NRC-certified Gen III+ reactor design • New construction continues in China and the U.S. • New China order expected in 2013
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Sanmen Nuclear Power Station, China
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Shot peening
Advanced Technology
Surface Treatment
Laser peening Engineered Coatings
Industry leading expertise in enhancing performance, extending life and preventing premature failure of critical components
Generating Shareholder Value Strong Financial Track Record
Sales ($ Millions)
$1,862 $2,018
$2,095
$2,480 - 2,520
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2010 2011 2012 2013E*
Flow Control Controls Surface Technologies
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* CW Guidance as of February 20, 2013
Note: All figures presented on a continuing operations basis reflecting the removal of our heat treating business from 2012 and prior periods.
2013E sales
include ~$400M due to recent acquisitions
2013E Financial Outlook (as of February 20, 2013)
(in 000’s, excluding EPS)
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Management Guidance FY2013E
Total Sales $2,480 - 2,520M 18% - 20%
Flow Control $1,300 - 1,320M
Controls $865 - 875M
Surface Technologies $315 - 325M
Operating Income $229 - 237M 42% - 47%
Diluted EPS $2.70 - 2.80 39% - 44%
Diluted Shares Outstanding 47.6M
Effective Tax Rate 32.0%
Full year amounts may not add due to rounding.
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Pro Forma EPS Growth – 2012A vs. 2013E (as of February 20, 2013)
$1.95
$2.70 - $2.80
$0.58 $0.23 - $0.27
$0.20 - $0.26
($0.15 ) ($0.11)
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
2012A Reported One-time items in 2012
One-time items in 2013
Pension Increase Acquisition Improvement
Organic Improvement
2013E Pro Forma Guidance
Balanced Capital Structure As of December 31, 2012
$125 $150 $100
$700
$0
$100
$200
$300
$400
$500
$600
$700
2013 2017 2021 Beyond 2021
5.74% Sr. Notes 5.51% Sr. Notes 3.84% Sr. Notes Future *
ST Debt 5%
LT Debt 33%
Cash 5%
Equity 57%
($ Millions)
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• Financial and operational discipline • Manage to internal 45% net debt to
cap limitation • Conservative balance sheet • Focus on strategic acquisitions • Net book debt to cap typically ~30%
• Includes $200 Million of 4.24% senior notes expiring in 2026, $225 Million of 3.70% senior notes expiring in 2023, $100 Million of 3.85% senior notes expiring in 2025, $75 Million of 4.05% senior notes expiring in 2028 and $100 Million of 4.11% senior notes expiring in 2028
As of February 28, 2013
Sales ($ Billions)
$2.1 B
$-
$5.0
2012A 2013F 2014F 2015F 2016F 2017F
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Positioned for Growth
Why You Should Invest in Curtiss-Wright!
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• Successfully executing our long-term growth strategy
• Innovative leader in supplying unique technologies that matter
• Long standing customer relationships and reputation as a trusted supplier of advanced technology
• Solid financial and operational outlook