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CLEAR PATHTO GROWTH
V3.0415
PAGE
Information in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act
of 1995 that involve risks and uncertainties, including, but not limited to, statements regarding future sales, earnings, liquidity, relative
profitability, and the impact of economic conditions and downturns on Woodward. Readers are cautioned that these forward-looking
statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Factors that could
cause actual results and the timing of certain events to differ materially from the forward-looking statements include, but are not
limited to, a decline in business with, or financial distress of, our significant customers; the global economic uncertainty and instability
in the financial markets; Woodward’s ability to obtain financing, on acceptable terms or at all, to implement its business plans,
complete acquisitions, or otherwise take advantage of business opportunities or respond to business pressures; Woodward’s long
sales cycle, customer evaluation process, and implementation period of some of its products and services; Woodward’s ability to
implement and realize the intended effects of restructuring and alignment efforts; Woodward’s ability to successfully manage
competitive factors, including prices, promotional incentives, industry consolidation, and commodity and other input cost increases;
Woodward’s ability to manage expenses and product mix while responding to sales increases or decreases; the ability of
Woodward’s subcontractors and suppliers to meet their obligations; Woodward’s ability to monitor its technological expertise and the
success of, and/or costs associated with, its product development activities; Woodward’s ability to integrate acquisitions and manage
costs related thereto; Woodward’s debt obligations, debt service requirements and ability to operate its business, pursue its business
strategies and incur additional debt in light of restrictive covenants in its outstanding debt agreements; risks related to U.S.
Government contracting activities, including liabilities resulting from legal and regulatory proceedings, inquiries, or investigations
related to such activities; reductions in defense sales due to a decrease in the amount of U.S. Federal defense spending; changes in
government spending patterns and/or priorities; future impairment charges resulting from changes in the estimates of fair value of
reporting units or of long-lived assets; future subsidiary results; environmental liabilities; Woodward’s continued access to a stable
workforce and favorable labor relations; physical and other risks related to Woodward’s operations and suppliers, including natural
disasters, which could disrupt production; Woodward’s ability to successfully manage regulatory, tax and legal matters; risks from
operating internationally including the impact on reported earnings from fluctuations in foreign currency exchange rates, and
compliance with and changes in the legal and regulatory environments of the United States and the countries in which Woodward
operates; fair value of defined benefit plan assets and assumptions used in determining Woodward’s retirement pension and other
postretirement benefit obligations and related expenses; information systems interruptions or intrusions; and other risk factors
described in Woodward's Annual Report on Form 10-K for the year ended September 30, 2014.
2
CAUTIONARY STATEMENT
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PAGE
Global infrastructure• Transportation of goods, people
• Power generation, control
• Energy extraction and distribution
Emission reductions
High performance• Energy/Fuel efficiency
• Harsh conditions
• Consistent, safe operation
Aerospace and Energy
3
CLEAR PATH TO GROWTH
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PAGE 4
WOODWARD ON A PAGE
What we do…• Control system solutions and components
for the aerospace and energy markets
Our Technology…• Innovative flow, combustion, electrical,
and motion control systems help our
customers offer cleaner, more reliable, and
more efficient equipment
Our Customers…• Leading original equipment manufacturers
and end users of their products
We are Global…• Woodward is a global company with over
30 offices in 14 countries
ALWAYS INNOVATING FOR A BETTER FUTURE
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PAGE 5
AEROSPACE AND ENERGY
Aerospace• Emerging economies -
passenger miles
• Higher fuel prices - more fuel
efficient aircraft
• Low cost financing
• New programs near launch
Energy• Disruption - fuel supply
diversity and availability
• Emerging economies -
demand growth
• Emission requirements
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SALES BY SEGMENT – FY2014
Total Sales = $2.0 Billion
Aerospace
$1.1 billion
Energy
$917 million
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PAGE 7
BUSINESS MODEL
• Strategic Partners
• Solutions
• Collaboration
• Risk Sharing
• Operational Excellence
Customer Focus
Technology
Growth
• Long Cycle Investment
• Optimized Solutions
• Technology Alignment
• Always Innovating
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PAGE 8
R&D INVESTMENTS DRIVING GROWTH
Woodward R&D investment
clearly outpaced peer group
Generally 3-5 points of earnings
impact each year
Generating market share gains
and clear path to growth
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
2013 R&D as % of Sales
Peer Companies
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Growth Capacity
• Narrowbody program launches
• Golden Age of Gas
Major projects
• Rockford, IL – Aircraft Turbine
• Fort Collins, CO – Energy
• Niles, IL – Airframe
Driving significant productivity
and improved margins
9
WE ARE WINNING…..
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Facility expansions
• $500 million incremental investment
over ~4 years
• New equipment
Taking advantage of low capital
cost
Still anticipate return to
“maintenance” level in ~2017
Goal is to 100% self-fund
through cash from operations
10
INVESTMENTS TO INCREASE CAPACITY
$0
$50
$100
$150
$200
$250
$300
2012 2013 2014 2015 2016 2017
Capital Expenditures
Maintenance Facility Expansion
$ in millions
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PAGE 11
CASH FLOW FUNDING GROWTH
Strong cash from operations
Self-funding facility
expansion
Working capital utilization• Inventory management
• Sales timing
Note: See appendix for calculation of free cash flow.
$0
$50
$100
$150
$200
$250
$300
2011 2012 2013 2014
Cash from ops Free cash flow
$ in millions
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Lean implementation
Supply chain integration
Value-differentiated
technology
Process Innovation
12
IMPROVING PROFITABILITY
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PAGE 13
CLEAR PATH TO GROWTH
Clear strategy – Energy control and
optimization
Compelling market drivers & industry
dynamics
• Energy efficiency and emissions reduction
• Aerospace & Energy
Strategically positioned with industry
leaders
Market share gains through
• Collaboration
• Technological leadership
Enhanced shareholder value
Aerospace Awards Gas and Oil
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WOODWARDENERGY
PAGE 15
ENERGY MARKET DRIVERS
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Disruption - fuel supply
diversity and availability
Emerging economies -
demand growth
Emission requirements
PAGE 16
ENERGY MARKET DRIVERS
$/kW - $/kW hr
Power Output
Maintainability
Availability
Reliability
Fast Start Load Following Fuel Flexibility
Emissions Compliance
Efficiency System Cost
Advanced Controls• Control complexity• Diagn/Prognostics• Distributed Control
Metering/Actuation• Integration• Distributed Control• High temp/pressure
Ignition/Combustion• Reliability• Combustion feedback• Simplification
Ener
gy M
arke
tsM
arke
t D
rive
rsSy
stem
R
equ
irem
ents
Tech
no
logy
En
able
rs
System Optimization
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ENERGY OUTLOOK - SUPPLY
Natural gas and renewables
fastest growing energy sources• Account for 50% of the growth in
energy supply
• Other sources are growing
• $8 Trillion of investment thru 2035
17
Reference: BP Energy Outlook 2030,2013 Edition
TOE = Tonne of oil equivalent
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Industrial Gas Turbines
Small
Aero
Large
Recip Engines
Lg Diesel / Gas
Sm Diesel / Gas
Steam Turbines
Compressors
KEY ENERGY MARKET LEADERS
18 - Proprietary Information -
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ENERGY APPLICATIONS
Power Generation
Mined Resources
Extraction
Processing
Distribution
Marine Transportation
Compression
Wind Renewable
Utilization-CNG/LNGCompression
Power Generation
Processing
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ENERGY VALUE STREAM
PAGE
SOLUTIONS FOR GAS TURBINES
MicroNet Plus
Atlas II
SERVICES
G
Electronic
Control
21 - Proprietary Information -
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SYSTEMS APPROACH TO TOTAL ENGINE CONTROL
22
PAGE
$0
$5
$10
$15
$20
$25
$30
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Gas Turbine Market Forecast by Value ($B)
Market Drivers• Distributed power
• Peaking power
• Quick start/stop
• Part load operation
• Fuel flexibility
• Natural gas production
• Increased trade of gas
– Pipeline and LNG
• Efficiency
• Power to weight ratio (offshore)
23
GAS TURBINE MARKET UPDATE
Drive Increased
Maintenance
Good market growth. Industry dominated by 4 OEMs
Source: Forecast International
Turbomachinery International, October 2014
other6% Solar
8%
MHI13%
Siemens21%
GE52%
GAS TURBINE OEM SHARE BY VALUE
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Market consolidation has positioned the ‘Big Three’ across the
TurboMachinery markets
GAS TURBINE UPDATE
Leverage capabilities within and across customer base
Heavy Frame
Gas TurbineAero-Derivative
Gas Turbine
Steam
TurbineCompressor
24 - Proprietary Information -
NATURAL GASUTILIZATION
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NATURAL GAS UTILIZATION IN ROAD TRANSPORT
Environmental concerns, fuel flexibility, and energy costs driving demand
for Woodward solutions
Source: IEA, Medium-Term Gas Market Report 2014
PAGE
NATURAL GAS UTILIZATION – ENGINE PRODUCERS
Weichai
Cummins
Hyundai
DDE
Doosan
SDEC
Wuxi
Yuchai
Furuise
Hauling
SANY
27
Providing solutions to global market leaders
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Working on dual-fuel development projects with major
locomotive OEMs
More U.S. railways interested
in demonstration programs
Timing of full production
dependent on operational,
regulatory, and other
infrastructure developments
28
NATURAL GAS UTILIZATION – LOCOMOTIVES
Woodward meeting the complex challenges of fuel flexibility
PROCESSINDUSTRIES
PAGE
Medium-term outlook varies
by product and region • US, Middle East, China forecast
solid growth
• Ethylene forecasts - largest growth
30
SPOTLIGHT ON PROCESS INDUSTRIES
Source: IHS Chemical, Technip
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PAGE 31
PROCESS INDUSTRY MARKET LEADERS
Shaanxi Blower
• China Only
• Compressors
• 3rd party Steam Turbine (HTC)
• Compressors
• Steam Turbine
• Compressors
• Steam Turbine
• Compressors
• Steam Turbine
• Compressors
• China Only
• Compressors
• 3rd party Steam Turbine (HTC)
• Compressors
• Steam Turbine
Strong Woodward position in steam and growing in compression
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WHY WE WIN
PAGE
Enabling customer
success through
improvements in:• Efficiency
• Emissions
• Reliability
• Availability
• Maintainability
• Safety
33
TECHNOLOGY AND SYSTEM SOLUTIONS
Advanced
Combustion
Technologies
Advanced Air/Fuel
Metering
Technologies
Advanced
Control
Technologies
Syste
m I
nte
gra
tion
Syste
m O
ptim
izatio
n
WoodwardInnovation
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R&D VALIDATION CAPABILITIES
Engine System Test Rig
High Flow Test System
Engine System Test Center
Combustion Test Center
MARGINEXPANSION
PAGE - Proprietary Information -36
LEAN DEPLOYMENT
Lean mixed-model flow• Low volume / high mix
• Productivity and velocity
Process innovation• Semi-automation
• Quality control
• Error proofing
Leader/member training
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Capacity for growth
Enabling Lean - designed from the inside out
37
FACILITY INVESTMENTS
Lincoln Campus – Fort Collins, CO Technology Center – Windsor, CO
PAGE - Proprietary Information -
Early supplier involvement
Strategic alignment
Value engineering
38
SUPPLY CHAIN INTEGRATION
Value StreamOptimization
Supply Chain
DesignEarly Supplier Involvement
(ESI)
Design for Producability
(DFP)
Supply Chain Integration
Project Management
Collaborate To Cost™
Growth
Innovation
Partnership
Performance
CREATING VALUE
DELIVERING VALUE
PASSION FOR EXCELLENCE
PAGE
Margin expansion• Margin target = 16+%
• Sales leverage
• Aftermarket expansion
• Productivity – Lean/facilities
39
FINANCIAL PERFORMANCE
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WOODWARDAEROSPACE
PAGE - Proprietary Information -41
STRATEGIC GROWTH - VALUE MODEL
New Product IntroR&D
Original Equipment Sales
Investment
Cycle
Return
Cycle
Aftermarket (Initial provisioning & MRO)
5-10 years 4-6 years ~30 years
Long Cycle Strong Returns
PAGE - Proprietary Information -42
LIFE OF PROGRAM VALUE MODEL
Investment
Cycle
Return
Cycle
A320
737MAX/A350
Passport 20 &
Silvercrest/E2/
C Series
787/747-8
R&D$
Expensed
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AEROSPACE SEGMENT – FY2014 SALES
43
Sales - $1.1 billion
Civil66%
Military34%
OEM62%
38%
Aftermarket
Control48%
Motion Control
52%
Propulsion
PAGE
FY2014 SALES BY MARKET
44
Commercial Transport
49%
Mil Fixed Wing16%
Mil Rotor Wing10%
Precision Guidance
7%
Bizjet/GA12%
Civil Rotor Wing6%
Civil OEM40%
Military OEM22%
Military A/M12%
Civil A/M26%
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MARKETS - STATUS
Commercial large transport• High delivery demand
• New platforms introduced
• Legacy platform replacement
• Traffic growth continues
Military• Global instability
• Increasing international demand
Civil private• New platforms introduced
• Recovery from trough
All three markets poised for growth
Civil
Private
18%
Military
33%
Commercial
Transport
49%
45 - Proprietary Information -
PAGE
Unprecedented up cycle
Regional jets join single
and twin aisles
New model introductions
46
LARGE TRANSPORT MARKET OUTLOOK
Fleets growing
Post-9/11 deliveries come into
heavy maintenance
Favorable Woodward fleet
dynamics
Growth
Replacement
© 2014 Boeing
+36,770
21,270
58%
15,500
42%
2013 2033
OEM AFTERMARKET
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COMMERCIAL TRANSPORT DELIVERIES
20101100 Aircraft
Delivered
20201930 Aircraft
Forecast
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COMMERCIAL TRANSPORT DELIVERIES
20101100 Aircraft
Delivered
System strategy execution, key acquisitions drive share gains
52%
58%
100%
//// Aircraft with significant Woodward content
20201930 Aircraft
Forecast
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PAGE 49
NEW PLATFORMS – CLEAR PATH TO GROWTH
TWIN AISLE
SINGLE AISLE
400
200
600
800
1000
1200
1400
1600
A320neo
CSeries
737 MAX
EJet E2
2010 2015 2020
747-8
787
777X
A350XWBA330neo
Deliveries grow, applications grow, sales per platform grow
1800
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Evolved from
components
provider to total
systems supplier
Products line
grew from internal
development and
acquisitions
50
WOODWARD INTEGRATED PROPULSION SYSTEMS
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WOODWARD MOTION CONTROL SYSTEMS
51 - Proprietary Information -
PAGE
KEY PLATFORMS/CONTENT – TWIN AISLE
52
A330
777
747-8
A380
A350
777X
767 ~$210,000
~$40,000
A330neo $TBD
~$55,000
~$275,000
Production
4Q 2015
4Q 2017
2020
CURRENT DEVELOPMENT
~$795,000
~$25,000
~$370,000
$TBD
1GEnx engine option2GP7200 engine option
Content may vary based on options selected
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2
1787
PAGE
KEY PLATFORMS/CONTENT – SINGLE AISLE
53
737NG
A320
737 MAX
EJets E2
A320neo
CSeries
EJet
CRJ
~$125,000 ~$290,000
~$80,000 ~$225,000
~$110,000 ~$225,000
~$250,000 ~$185,000
2H 2017
4Q 2015
4Q 2015
1H 2018
CURRENT DEVELOPMENT
Content may vary based on options selected
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MILITARY MARKET OUTLOOK
Source: Forecast International (Global ex China)
Military Aftermarket graphic
$ B
illi
on
s
New Normal
Worldwide Military MRO Forecast
Source: ICF International
F-35 ,KC-46 tanker offset legacy
program declines
Strong WWD content on new
production programs
Smart weapons uptick ’15-’17
Global instability drives utilization
‘Asia pivot’ still in play
Growing fielded base/broad
representation
OEM AFTERMARKET
54 - Proprietary Information -
PAGE
F/A-18
KEY PLATFORMS/CONTENT – DEFENSE
55
F-16
Black Hawk
F-35
KC-46 Tanker
V-22 Apache
~$125,000
~$300,000
~$335,000 ~$55,000
~$145,000~$645,000
2017
Production
~$545,000
CURRENT DEVELOPMENT
Content may vary based on options selected
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PAGE
Gradual growth follows trough
New models driving growth
Large cabins/long range remain
strong
56
CIVIL PRIVATE MARKET OUTLOOK
Source: HoneywellBusiness Jets - Units
Civil Private
Aftermarket graphic
Civil Private MRO
Source: ICF International
Bizjet Engine MRO CAGR 2.5%
Civil Rotorcraft MRO CAGR 4.3%
Primary market remains North
America
Global fleets increase
Utilization returning
OEM AFTERMARKET
CAGR=0.7%
CAGR=3.6%
CAGR=6.0%
CAGR=9.4%
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KEY PLATFORMS/CONTENT – BUSINESS JETS
57
G550
Global Express
Falcon 7X
Global 7000/8000
G650
Falcon 5X
G500/G600
~$385,000
2017
2017
2017
~$230,000
~$185,000
~$205,000
~$150,000
~$180,000
~$60,000
CURRENT DEVELOPMENT
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Content may vary based on options selected
PAVING THEPATH TO GROWTH
PAGE
Integrated propulsion
systems
Flight deck controls
Electromechanical and
hydraulic actuation
PRODUCT PORTFOLIO
59 - Proprietary Information -
PAGE
Single aisle NPI
nears completion
• High certification test load
ramps down early 2015
• Flight test support
• Production readiness
60
R&D – PROGRAM EXECUTION
System Cold Test Fire Test
System Endurance Test
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PAGE 61
IR&D – AIRCRAFT TECHNOLOGY DEMANDS
Align technologies to customers’ 2030 needs
Aerodynamic efficiency• Long, thin wings
• Air flow management
Turbine fuel efficiency• Higher pressures
• Higher temperatures
• Lower weight
• Air flow management
Lower emissions• Innovative atomization
• Increased combustion control
Source: NASA
Source: NASA
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Gulfstream G500 and G600
• PurePower PW800F engine content
• Airframe content
Boeing 777X TRAS
• TRAS
More to come…
62
STILL WINNING…..
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EXPANSIONMARGIN
PAGE
Growth opportunities
(esp. motion control products)
Commercial large transport
(esp. TRAS products)
Develop/deliver modifications
and upgrades
64
AFTERMARKET – PATHS TO GROW SHARE
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New facilities• Floor space
• Semi-automation
Productivity• New platforms/
technologies improve
margins
• Supply chain and
labor productivity
• Fixed cost leverage
and reductions
65
CAPACITY AND PRODUCTIVITY
Machine
Compensate?
Adjust
Increased Automation
Manufacture to Zero Defects
Measure
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LEAN TRANSFORMATION
66
Lean “designed in”
to new facilities – parts
flow and automation
Member inputs plus
over 60 benchmarked
facilities
Lean value stream layouts
and floor space consolidation
Product Test Semi-Automation
Assembly Error Proofing
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PAGE - Proprietary Information -
Initial occupancy early 2015
67
ROCK CUT CAMPUS
PAGE - Proprietary Information -
Initial occupancy
November 2014
Consolidate four-building
campus into one site
68
NILES FACILITY
PAGE
Margins• Margin target = 20%
• Sales leverage
• Aftermarket expansion
• Amortization reduction
• R&D as % of sales declining
• Productivity – Lean/facilities
69
FINANCIAL PERFORMANCE
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WOODWARDFINANCIALS
PAGE
1,457
1,712 1,866 1,936 2,001
0
500
1,000
1,500
2,000
2,500
2010 2011 2012 2013 2014
Total Sales
$ in millions
WOODWARD SALES
71
7% CAGR
Solid long-term sales growth
Recent impacts from• Economic environment
• Defense
• China CNG volatility
Strength going forward• Aerospace awards
• Natural gas / oil
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Natural gas and oil growth• Processing plants
• Gas turbine aftermarket
Global economy slowly
improving
Renewables volatile
China regulatory
environment uncertain
72
ENERGY SALES
688
869
970
874917
0
200
400
600
800
1,000
1,200
2010 2011 2012 2013 2014
$ in millions
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Commercial transport strong• OEM and aftermarket
Biz-jet/helicopter• Large cabin improving
• Oil and gas
Defense contraction• Upgrade programs
• Contract timing
• Moderate WWD impact
73
AEROSPACE SALES
769843
896
1,061 1,084
0
200
400
600
800
1,000
1,200
2010 2011 2012 2013 2014
$ in millions
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PAGE
Earnings highlights• Company-wide Lean initiatives
• Improved renewables
• Cost control
• Solid aftermarket
• Lower defense
Anticipate 100 bps
improvement for 2015
Long-term (5 year cycle)
• Aerospace 20%
• Energy 16+%
74
SEGMENT EARNINGS
11.3%
15.7%
14.6% 14.7%
8%
10%
12%
14%
16%
Energy Aerospace
Segment Margins
2013 2014
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PAGE
Market share gains and new
program certifications• Narrowbody awards
• Energy customer and market
penetration
• Common rail diesel
Anticipate % of sales
decrease as new programs
launch
75
R&D INVESTMENTS
83
116
143
130138
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
0
40
80
120
160
2010 2011 2012 2013 2014
R&D Expense as % of Sales
$ in millions
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PAGE
Consistently strong cash
from operations funding• Facilities expansions to
accommodate sales growth
• R&D investment
Working capital utilization• Inventory management
• Sales timing
76
CASH FLOW
Note: See appendix for calculation of free cash flow.
115
144
223
268
66 79 81
61
$0
$50
$100
$150
$200
$250
$300
2011 2012 2013 2014
Cash from ops Free cash flow
$ in millions
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PAGE
Strong balance sheet and
track record of debt pay-down
Cash flow funding growth
Share buybacks in 2013/2014
Solid EBITDA growth
77
DEBT AND EBITDA
Note: See appendix for calculation of EBITDA.
0
100
200
300
400
500
600
700
800
2010 2011 2012 2013 2014
EBITDA Debt
$ in millions
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PAGE
Conservative leverage
Maintain capacity• Growth
• Acquisitions
• Share buybacks
78
DEBT TO EBITDA LEVERAGE
Note: See appendix for calculation of leverage ratio.
1.8
1.51.3
1.8
2.2
0.0
0.5
1.0
1.5
2.0
2.5
2010 2011 2012 2013 2014
Leverage Ratio
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Improving leverage• Sales growth
• Cost control
• Realignment
• Facility rationalization
• Lean initiatives
79
OPERATING EXPENSE LEVERAGE
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
0
30
60
90
120
150
180
2010 2011 2012 2013 2014
Selling, General & Admin Expenses
SG&A as % of sales
$ in millions
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PAGE
Acquisition impacts
Path to future growth• Enhanced margins
• Increasing free cash flow
80
RETURN ON INVESTED CAPITAL
*ROIC= net earnings before interest expense / invested capital at September 30 of each year
10.0%
10.9%11.1%
9.5% 9.5%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
2010 2011 2012 2013 2014
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CUMULATIVE TOTAL RETURN ON COMMON STOCK
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14
COMPARISON OF 10 YEAR CUMULATIVE TOTAL RETURN*Among Woodward, Inc., the S&P Midcap 400 Index
and the S&P Industrial Machinery Index
Woodward, Inc. S&P Midcap 400 S&P Industrial Machinery
*$100 invested on 9/30/04 in stock or index, including reinvestment of dividends.
Fiscal year ending September 30.
81
PAGE
Revenue
• Between $2.05 and $2.15 billion
Earnings per diluted share
• Between $2.70 and $2.90 per share
Assumptions
• Commercial aerospace remains
strong
• Global economy continues slow
improvement
• Defense stabilizes
• Retroactive R&E credit
82
FY2015 OUTLOOK
$1.89 $2.01
$2.10
$2.45
$2.70 –$2.90
$-
$1.00
$2.00
$3.00
2011 2012 2013 2014 2015E
Earnings Per Share
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PAGE 83
APPENDIX
PAGE
EBITDA, FREE CASH FLOW, LEVERAGE RATIO
85
* Non-US GAAP Measures: EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization), free cash flow and Debt-to-EBITDA Leverage
Ratio (“Leverage Ratio”) are non-US GAAP financial measures. The use of
these measures is not intended to be considered in isolation of, or as a
substitute for, the financial information prepared and presented in accordance
with accounting principles generally accepted in the United States of America.
Securities analysts, investors, and others frequently use EBITDA, free cash
flow and Leverage Ratio in their evaluation of companies, particularly those
with significant property, plant, and equipment, and intangible assets that are
subject to amortization. Management uses EBITDA and the Leverage Ratio in
reviewing compliance with our debt covenants and in evaluating capital
structure impacts of various strategic scenarios. Free cash flow is a non-US
GAAP financial measure which Woodward and others define as cash from
operations less capital expenditures.
Year Ending September 30,
2014 2013 2012 2011 2010
Net cash provided by operating activi ties 268,083$ 222,592$ 144,113$ 114,623$ 184,572$
Capita l expenditures (207,106) (141,600) (64,900) (48,255) (28,104)
Free cash flow 60,977$ 80,992$ 79,213$ 66,368$ 156,468$
Year Ending September 30,
2014 2013 2012 2011 2010
Woodward Reported Tra i l ing 12 Month EBITDA 327,130$ 300,234$ 291,885$ 287,825$ 259,367$
Interest Income 271 273 542 534 509
EBITDA, adjusted for use in leverage computation 327,401$ 300,507$ 292,427$ 288,359$ 259,876$
Total Debt Per Woodward Balance Sheet 710,000$ 550,000$ 392,204$ 425,249$ 465,842$
Leverage Ratio 2.2 1.8 1.3 1.5 1.8
Year Ending September 30,
2014 2013 2012 2011 2010
Net earnings 165,844$ 145,942$ 141,589$ 132,235$ 111,162$
Income taxes 61,400 53,629 56,218 55,332 43,713
Interest expense 22,804 26,703 26,003 25,399 29,385
Interest income (271) (273) (542) (534) (509)
EBIT 249,777 226,001 223,268 212,432 183,751
Amortization of intangible assets 33,580 36,979 32,809 34,993 35,114
Depreciation expense 43,773 37,254 35,808 40,400 40,502
EBITDA 327,130$ 300,234$ 291,885$ 287,825$ 259,367$
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