Curtiss-Wright Overview
Strategically focused, multinational provider of highly engineered
products and services
Strong positions in diversified, profitable niche markets built upon:
Engineering and technological leadership
Strong customer relationships
Strong base comprised of 3 business segments
Flow Control
41%
Motion Control
41%
Metal Treatment
18%
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Highly Engineered Products
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Market Leader
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1999
2000
2001
2002
2003
2004
2005
Est
1999
2000
2001
2002
2003
2004
2005
Est
$293
$330
$343
$513
$746
$955
Growing Sales and Profits
SALES
OPERATING INCOME
One of America’s top 200 Small Companies – Forbes Magazine (1999-2002)
Top 100 Hot Growth Companies – Business Week (2002)
Top 30 Aerospace Businesses Ranked by Operating Margin – Flight International (2002)
+27% 5-Year CAGR
($ in millions)
($ in millions)
$43
$48
$47
$61
$89
$111
+21% 5-Year CAGR
$1,050-
1,100
$130-138
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1999
2000
2001
2002
2003
2004
2005 Est
$1.67
$1.86
$1.99
$2.00
$2.50
$3.02
Earnings Per Share*
(Split Adjusted)
+13% 5-Year CAGR
* 2000-2002 Normalized to exclude the effects of environmental insurance
settlements, post-retirement costs, consolidation costs, gains related to
post- retirement medical benefits, recapitalization costs and gains on asset
sales.
$3.24 –
$3.45
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Diversification
Increased presence in
defense markets
Increased presence in
embedded computing
market
Leading position in
commercial aerospace
Global reach limits
exposure to domestic
markets
Defense
47%
Automobile
8%
Commercial
11%
Oil & Gas
10%
General
7%
Commercial
17%
Industrial
Power
Aerospace
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Business Segments
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1999
2000
2001
2002
2003
2004
1999
2000
2001
2002
2003
2004
$6,082
$10,276
$10,703
$20,693
$39,991
$64,965
$97,486
$98,257
$172,455
$388,139
Flow Control Segment
SALES
Business Units……
Employees…………
Sales / EE…………..
OPERATING INCOME
MARKETS SERVED
Operating Income ($000)
11.5%
9.4%
10.5%
10.9%
12.0%
11.7%
Operating Margin
+43% 5-year CAGR
2004
$341,271
$44,651
Commercial
Power
61%
Defense-
Navy
39%
1998
Defense-
Navy
49%
Oil &
Gas
21%
Commercial
Power
26%
Automotive
2%
Product Portfolio: Marine Propulsion Pumps &
Valves, Electronic Systems, Commercial Power,
Commercial Oil & Gas
General
Industrial
2%
266
2,070
2
14
1998
2004
$ 143,000
$ 216,000
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Flow Control - Products
Engineered control & relief valves
FCCU, coker, butterfly valves
Engineered pumps & drives
Nuclear/non-nuclear instrumentation & control
systems
Aircraft carrier flight critical components
Electromagnetic drive & propulsion system
Process Safety Management software
Nova - Nuclear power components
Trentec - Power equipment fabrication and
qualification
Groquip - Oil processing valves
GMBU - Naval propulsion pumps
1998
2003
2004
Engineered control and relief valves
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Expanded new markets
with related products
Expanded technical
content into electronic
controls
Expanded into the
process industry
Strategy
Flow Control
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$12,446
$15,463
$19,219
$29,579
$30,350
11.4%
12.7%
14.0%
12.2%
10.0%
11.6%
$124,155
$126,771
$137,103
$233,437
$265,905
Motion Control Segment
SALES
OPERATING INCOME
MARKETS SERVED
+26% 5-Year CAGR
Operating Income ($000)
Operating Margin
2004
$388,575
$44,903
Commercial
Aerospace
84%
1998
Commercial
Aerospace
28%
Defense-
Land
29%
Defense-
Aerospace
33%
General
Industrial
10%
Defense-
Aerospace
14%
General
Industrial
2%
Product Portfolio: Embedded Computing,
Integrated Sensing and Engineered Systems
1999
2000
2001
2002
2003
2004
1999
2000
2001
2002
2003
2004
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1998
2004
Business Units……
3
15
Employees…………
662
1,942
Sales / EE…………..
$
158,000
$
194,000
Motion Control - Products
Secondary flight control actuation systems
Component overhaul and logistics support
Secondary flight control actuation systems and
component overhaul & logistics support
Electro-mechanical aiming and stabilization
systems
Military fire control systems
Position sensors & control electronics
Power conversion products & embedded
computing
Dy 4 - Embedded Computing
Primagraphics – Embedded Computing
Synergy – Embedded Computing
1998
2003
2004
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Motion Control
Expand control technology
from mechanical to electro-
mechanical to electronics
Evolve from dependence on
commercial aerospace
market to service defense
and industrial markets
Strategy
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2004
$23,551
$23,502
$19,513
$14,403
$19,055
15.9%
22.6%
22.3%
18.1%
13.4%
13.7%
$104,143
$105,318
$107,807
$107,386
$138,895
Metal Treatment Segment
SALES
OPERATING INCOME
MARKETS SERVED
+11% 5-Year CAGR
Operating Income ($000)
Operating Margin
$178,324
$28,279
1998
General
Industrial
17%
Automotive
29%
Aerospace
45%
Power
3%
Process
6%
Product Portfolio: Shot Peening, Peen Forming,
Laser Peening, Specialty Coatings, Heat Treating
General
Industrial
19%
Automotive
31%
Aerospace
10%
Commercial
Aerospace
35%
Oil & Gas
3%
Power
2%
1999
2000
2001
2002
2003
2004
1999
2000
2001
2002
2003
2004
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1998
2004
Business Units……
36
56
Employees…………
1,075
1,603
Sales / EE…………..
$
98,000
$
112,000
Metal Treatment - Services
Shot peening
Peen forming
Heat treating
Special valves
Shot peening
Peen forming
Heat treating
Special valves
Laser peening
Coating applications
Anodizing / chemical milling
Evesham – Coatings
Everlube – Coatings
1998
2003
2004
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Strategy
Metal Treatment
Increase market share by
adding appropriate plant
sites
Add new coatings
services to business
portfolio
Introduce new laser
technology to shot
peening services
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Major Markets
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2005 Estimated Sales: $525M
Navy
Pumps, valves &
electronic systems
Submarine & aircraft
carrier
Jet fuel pumping
system retrofit
Advanced Naval
Propulsion technology
Army
Electromagnetic (EM)
Gun
Flow Control
DEFENSE SECTORS
Defense Market
Aerospace
32%
Ground
Vehicles
25%
Navy
43%
Aerospace
Embedded systems,
position sensors,
actuation and electronic
controls
F/A-22 Raptor, V-22
Osprey, Joint Strike
Fighter & Global Hawk
Ground Vehicles
Electronic controls,
aiming & stabilization
systems, embedded
systems and position
sensors
Abrams & Bradley tanks
Future Combat Systems
Motion Control
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Space Based
Rocket
Helicoptor
Aircraft
Bombers
UAV
Light Armoured
Armoured
Surface Ships
Submarines
Torpedoes & Decoys
Amphibious
M-5 Rocket
Hera
BA-2
Space Station
Shuttle
JEM
Seawolf
Collins
Los Angeles
NSSN
Mk-30
43X2
TP2000
LCAC
AAAV
Commanche
Sky Guardian 2000
Cobra
Apache
Sea King
ATIC
Global Hawk
Tier II+
Predator
LOROPS
UCAV
FCS
LAV-Recce
Warrior
HMMWV-ITAS
M1A2
Bradley-IBAS
FOX
Grizzly
Wolverine
B-2
B-52
JSF
F-22
F-16
F-15
F/A-18
Hawk
Tornado
U2R
AV-8B
EA-6B
C-130
P3C
Harrier
F-117
CTT
GBR
JORN
SMART-T
APX-100
UPZ-27
SeaVue
SLQ-32
Type 23 Frigate
MK45 Gun System
Typhoon
EOS-400
LPD-17
Communication
& Radar
Embedded Systems Markets
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24%
15%
18%
9%
34%
Military
Medical
Industrial Control
Communications
Other
Embedded Computing Overview
Core market is the $1.5B Defense segment
Established leadership position with
outsourcing prime
Continued outsourcing by the primes
(US & Europe)
Leverage technology into high-end medical
and industrial control markets
C-W targets Military, Medical & Industrial segments
Worldwide Embedded Systems Market $4.5bn
Curtiss-Wright is Transforming the
Embedded Computing Landscape
Subsystems
Global Hawk UAV
mission computers and
sensor management
Bradley Tank gunner
control electronics
Stryker weapon autoloader
controls & turret electronics
Modular Solutions
F-22 - SBCs
F-15 - digital interrogation
system cards
Sentinel Radar
- DSP & SBCs
Six acquisitions since 2003
Revenue run rate $200M
90% military, 10% commercial markets
Accelerated strategic integration
Global presence leverages CW branding
Fully rebranded, single sales channel, R&D aligned
Diverse customer base ad platforms
5 largest programs generate <25% annual revenues
Fully Integrated, Interoperable Products
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SALES SEGMENTATION
Commercial Aerospace Markets
Airbus:
A300, A318, A319, A320,
A321, A330, A340, A380
Boeing:
B727, B737, B747, B757,
B767, B777, B787
2005 Estimated Sales: 185M
Flight control and
utility actuation
components &
integrated systems
Position sensors,
flight recorders,
power supplies and
fire detection
systems
Component repair
& overhaul services
to the global airline
industry
Metal Treatment
Shot Peening –
structural
components, turbine
engines and fan
blades
Shot Peen Forming –
wing skins
Specialty Coatings –
structural components
Laser Peening –
turbine engines and
fan blades
Motion Control
OEM
46%
Metal
Treatment
37%
Repair &
Overhaul
17%
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Laser Peening
Uniquely positioned as the world-leader in laser peening
technology and commercial production
New market opportunities for laser peening services, such as
aerospace wing parts, highly stressed gears, medical implants,
and applications in oil & gas
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Metal Treatment
Automotive,
commercial power,
oil and gas, heavy
Industrial, medical
Motion Control
Stabilization
systems for high-
speed trains
Electronic sensors
for industrial
applications
Industrial Markets
SALES SEGMENTATION
Motion
Control
12%
Metal
Treatment
29%
Flow Control
59%
General
Industrial
19%
Oil & Gas
27%
Auto
22%
Commercial
Power
32%
Commercial power
pumps, valves and
electronic control
systems
Flow Control
2005 Estimated Sales: $370M
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SALES ($ millions)
2001
2002
2003
2004
2005E
$35
$47
$74
$122
Industrial Power Generation
2005 Estimated Sales: $122M
Plant life extensions: U.S.
New plant construction: Asia
Domestic plant restarts: Browns Ferry
Worldwide increase demand for power
Expanded product lines: valves, pumps, services
$105
37% 4-Year CAGR
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Industrial Oil & Gas
2005 Estimated Sales: $114M
New Products:
Coke drum deheading valve
Process Safety Management (PSM) software solutions
Pilot-operated valves
Expanded butterfly valve products
Plant upgrades
2001
2002
2003
2004
2005E
$34
$91
$114
35% 4-Year CAGR
SALES ($ millions)
$56
$81
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DeltaGuard® Coker Valve
Revolutionary valve technology for oil refining industry
Totally automated and sealed system dramatically improves
safety
Significantly reduces maintenance costs and increases
throughput
Enables processing of cheaper grades of crude oil
Intellectual property patent
Traditional Valves
Curtiss-Wright DeltaGuard® Coker Valve
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76 Years NYSE: CW, CW.B
Established Leader in Niche Markets
Technology
Market Position
Competitive Cost Structure
Diversified Business Plan
Proven Ability to Grow Profitably
Successful Integration of Acquisitions
Future Outlook
In Sum: A Solid Investment
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Safe Harbor Statement
Forward-looking statements in this document are made pursuant to the Safe
Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date hereof.
Such risks and uncertainties include, but are not limited to: unanticipated
environmental remediation expenses or claims; a reduction in anticipated
orders; an economic downturn; changes in the need for additional machinery
and equipment and/or in the cost for the expansion of the Corporation’s
operations; changes in the competitive marketplace and/or customer
requirements; an inability to perform customer contracts at anticipated cost
levels; and other factors that generally affect the business of aerospace,
marine, and industrial companies. Please refer to the Company’s SEC filings
under the Securities and Exchange Act of 1934, as amended, for further
information.
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Thank you
For more information,
visit: www.curtisswright.com
